SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-K

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

                   For the fiscal year ended December 31, 2002

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

                    For the transition period from _________to _________

                         Commission file number 0-10831

                  CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES
                (Name of registrant as specified in its charter)

         California                                             94-2744492
(State or other jurisdiction of                              (I.R.S. Employer
 incorporation or organization)                             Identification No.)

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

                  Registrant's telephone number (864) 239-1000

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

                                      None

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

                     Units of Limited Partnership Interests
                                (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  the  registrant's   knowledge,  in  definitive  proxy  or  information
statements  incorporated  by  reference  in Part  III of this  Form  10-K or any
amendment to this Form 10-K. Yes _X__ No _

Indicate  by check mark  whether  the  registrant  is an  accelerated  filer (as
defined in Exchange Act Rule 12b-2). Yes ___ No _X__

State the aggregate  market value of the voting  partnership  interests  held by
non-affiliates  computed  by  reference  to the price at which  the  partnership
interests  were sold,  or the average bid and asked  prices of such  partnership
interests as of December 31, 2002. No market exists for the limited  partnership
interests of the Registrant,  and,  therefore,  no aggregate market value can be
determined.

                       DOCUMENTS INCORPORATED BY REFERENCE
                                      None


The matters discussed in this report contain certain forward-looking statements,
including, without limitation, statements regarding future financial performance
and the effect of government  regulations.  The discussions of the  Registrant's
business  and  results  of  operations,   including  forward-looking  statements
pertaining to such matters,  do not take into account the effects of any changes
to the  Registrant's  business  and results of  operations.  Actual  results may
differ  materially  from those described in the  forward-looking  statements and
will  be  affected  by  a  variety  of  risks  and  factors  including,  without
limitation:  national and local economic  conditions;  the terms of governmental
regulations that affect the Registrant and interpretations of those regulations;
the competitive  environment in which the Registrant operates;  financing risks,
including the risk that cash flows from  operations may be  insufficient to meet
required  payments of  principal  and  interest;  real estate  risks,  including
variations  of real  estate  values and the  general  economic  climate in local
markets and competition for tenants in such markets; and possible  environmental
liabilities.   Readers  should  carefully  review  the  Registrant's   financial
statements and the notes thereto,  as well as the risk factors  described in the
documents  the  Registrant  files  from  time to time  with the  Securities  and
Exchange Commission.

                                     PART I

Item 1.  Description of Business

General

Consolidated   Capital   Institutional    Properties   (the   "Partnership"   or
"Registrant")  was organized on April 28, 1981, as a Limited  Partnership  under
the  California  Uniform  Limited   Partnership  Act.  On  July  23,  1981,  the
Partnership  registered  with the Securities and Exchange  Commission  under the
Securities  Act of 1933 (File No.  2-72384) and commenced a public  offering for
the sale of $200,000,000 of limited partnership units (the "Units"). The sale of
Units  terminated on July 21, 1983,  with 200,342 Units sold for $1,000 each, or
gross  proceeds of  $200,342,000  to the  Partnership.  In  accordance  with its
Partnership  Agreement (the original  partnership  agreement of the  Partnership
together with all amendments  thereto shall be referred to as the  "Agreement"),
the Partnership has repurchased and retired a total of 1,296.8 Units for a total
purchase price of $1,000,000.  The  Partnership may repurchase any Units, at its
absolute  discretion,  but is under no  obligation  to do so.  Since its initial
offering,  the Registrant has not received, nor are limited partners required to
make, additional capital contributions.  The Partnership Agreement provides that
the Partnership is to terminate on December 31, 2011 unless  terminated prior to
such date.

Upon  the  Partnership's   formation  in  1981,  Consolidated  Capital  Equities
Corporation  ("CCEC") was the  Corporate  General  Partner.  In 1988,  through a
series of transactions, Southmark Corporation ("Southmark") acquired controlling
interest in CCEC. In December 1988, CCEC filed for reorganization  under Chapter
11  of  the  United  States   Bankruptcy  Code.  In  1990,  as  part  of  CCEC's
reorganization  plan,  ConCap  Equities,  Inc.  ("CEI")  acquired CCEC's general
partner  interests in the Partnership and in 15 other affiliated  public limited
partnerships (the "Affiliated Partnerships"),  and CEI replaced CCEC as managing
general  partner  in all  16  partnerships.  The  selection  of CEI as the  sole
managing  general partner was approved by a majority of the limited  partners in
the  Partnership  and in  each  of the  Affiliated  Partnerships  pursuant  to a
solicitation  of the Limited  Partners  dated August 10,  1990.  As part of this
solicitation,  the Limited  Partners also approved an amendment to the Agreement
to limit changes of control of the Partnership.  All of CEI's  outstanding stock
was owned by Insignia Properties Trust ("IPT"). Effective February 26, 1999, IPT
was merged into Apartment  Investment and Management Company  ("AIMCO").  Hence,
CEI is now a  wholly-owned  subsidiary  of AIMCO,  a publicly  held real  estate
investment trust.

The  Partnership's  primary  business and only  industry  segment is real estate
related operations. The Partnership was originally formed for the benefit of its
Limited  Partners  (herein so called and together with the General Partner shall
be called the "Partners"), to lend funds to Consolidated Capital Equity Partners
("EP"), a California  general  partnership in which certain of the partners were
former  shareholders and former management of CCEC, the former Corporate General
Partner of the Partnership. See "Status of the Master Loan" for a description of
the loan and settlement of EP's bankruptcy.

Through December 31, 2002, the Partnership had advanced a total of approximately
$180,500,000  to EP and its  successor  under the  Master  Loan (as  defined  in
"Status of the Master Loan"). As of December 31, 2002, the balance of the Master
Loan, net of the allowance for possible losses,  was approximately  $14,144,000.
EP used the proceeds from these loans to acquire 18 apartment complexes and four
office complexes, which served as collateral for the Master Loan. EP's successor
in bankruptcy (as more fully described in "Status of the Master Loan") currently
owns 4 apartment complexes. The Partnership acquired The Loft Apartments through
foreclosure in 1990. Prior to that time, The Loft Apartments had been collateral
on the Master  Loan.  The  Partnership  acquired a  multiple-use  building,  The
Sterling  Apartment  Homes  and  Commerce  Center  ("The  Sterling"),  through a
deed-in-lieu  of  foreclosure   transaction  in  1995.  The  Sterling  was  also
collateral on the Master Loan. In 2002, the General Partner decided to foreclose
on the remaining  properties  that  collateralize  the Master Loan.  The General
Partner  began  the  process  of  foreclosure  or  executing  deeds  in  lieu of
foreclosure  during  the third  quarter of 2002 on all the  properties  in CCEP.
During the year ended  December 31, 2002 the  Partnership  acquired  four of the
properties held by CCEP through deeds in lieu of foreclosure.  In addition,  one
property held by CCEP was sold in December 2002.  All these  properties had been
collateral on the Master Loan.  The  foreclosure  process on the remaining  four
properties  held by CCEP is ongoing.  For a brief  description of the properties
owned by the Partnership, refer to "Item 2 - Description of Properties".

The Registrant  has no employees.  Management  and  administrative  services are
provided by the General Partner and by agents  retained by the General  Partner.
Property management services are performed at the Partnership's properties by an
affiliate of the General Partner.

Risk Factors

The  real  estate  business  in which  the  Partnership  is  engaged  is  highly
competitive.  There are other  residential and commercial  properties within the
market  area  of  the  Registrant's  properties.   The  number  and  quality  of
competitive  properties,  including those  residential  properties  which may be
managed by an affiliate of the General Partner in such market area, could have a
material effect on the rental market for the apartments and the commercial space
at the  Registrant's  properties  and the  rents  that may be  charged  for such
apartments  and space.  While the General  Partner and its affiliates own and/or
control a significant number of apartment units in the United States, such units
represent an  insignificant  percentage of total  apartment  units in the United
States and competition for the apartments is local.

Laws benefiting  disabled persons may result in the Partnership's  incurrence of
unanticipated  expenses.  Under the Americans with  Disabilities Act of 1990, or
ADA,  all places  intended to be used by the public are required to meet certain
Federal  requirements  related to access and use by disabled persons.  Likewise,
the Fair Housing Amendments Act of 1988, or FHAA, requires apartment  properties
first occupied after March 13, 1990 to be accessible to the  handicapped.  These
and other  Federal,  state  and  local  laws may  require  modifications  to the
Partnership's   properties,   or  restrict   renovations   of  the   properties.
Noncompliance  with  these laws could  result in the  imposition  of fines or an
award of  damages  to private  litigants  and also  could  result in an order to
correct any  non-complying  feature,  which could result in substantial  capital
expenditures.  Although  the General  Partner  believes  that the  Partnership's
properties  are  substantially  in  compliance  with present  requirements,  the
Partnership  may incur  unanticipated  expenses  to comply  with the ADA and the
FHAA.

Both  the  income  and  expenses  of  operating  the  properties  owned  by  the
Partnership are subject to factors outside of the Partnership's control, such as
an oversupply of similar properties  resulting from  overbuilding,  increases in
unemployment or population  shifts,  reduced  availability of permanent mortgage
financing,  changes in zoning laws or changes in patterns or needs of users.  In
addition,  there are risks  inherent  in owning and  operating  residential  and
commercial  properties  because such properties are susceptible to the impact of
economic and other conditions outside of the control of the Partnership.

There have been, and it is possible there may be other, Federal, state and local
legislation  and  regulations   enacted   relating  to  the  protection  of  the
environment.  The Partnership is unable to predict the extent,  if any, to which
such new  legislation  or  regulations  might occur and the degree to which such
existing or new legislation or regulations might adversely affect the properties
owned by the Partnership.

The Partnership  monitors its properties for evidence of pollutants,  toxins and
other dangerous substances, including the presence of asbestos. In certain cases
environmental  testing has been performed which resulted in no material  adverse
conditions or liabilities.  In no case has the Partnership  received notice that
it is a potentially  responsible party with respect to an environmental clean up
site.

Insurance  coverage is becoming  more  expensive  and  difficult to obtain.  The
current  insurance market is  characterized by rising premium rates,  increasing
deductibles,  and more restrictive  coverage language.  Recent developments have
resulted in  significant  increases in insurance  premiums and have made it more
difficult to obtain  certain types of insurance.  As an example,  many insurance
carriers are excluding  mold-related  risks from their policy coverages,  or are
adding  significant  restrictions to such coverage.  Continued  deterioration in
insurance   market  place   conditions  may  have  a  negative   effect  on  the
Partnership's operating results.

A further description of the Partnership's  business is included in Management's
Discussion  and  Analysis  of  Financial  Condition  and  Results of  Operations
included in "Item 7" of this Form 10-K.

Segments

Segment data for the years ended December 31, 2002, 2001 and 2000 is included in
"Item 8.  Financial  Statements  - Note K" and is an  integral  part of the Form
10-K.

Status of the Master Loan

Prior to 1989,  the  Partnership  had loaned funds totaling  $170,400,000  to EP
subject to a nonrecourse note with a participation interest (the "Master Loan"),
pursuant  to the  Master  Loan  Agreement  dated  July  22,  1981,  between  the
Partnership and EP. The Partnership  secured the Master Loan with deeds of trust
or mortgages on real property  purchased with the funds advanced,  as well as by
the assignment and pledge of promissory notes from the partners of EP.

During 1989, EP defaulted on certain  interest  payments that were due under the
Master  Loan.  Before the  Partnership  could  exercise  its  remedies  for such
defaults,  EP filed for  bankruptcy  protection  in a Chapter 11  reorganization
proceeding.  On October 18, 1990, the bankruptcy  court approved EP's consensual
plan of  reorganization  (the "Plan").  In November 1990, EP and the Partnership
consummated a closing under the Plan pursuant to which,  among other things, the
Partnership  and EP executed an amended and restated  loan  agreement  (the "New
Master Loan Agreement"),  EP was converted from a California General Partnership
to a California Limited Partnership, Consolidated Capital Equity Partners, L.P.,
("CCEP"),  and CCEP renewed the deeds of trust on all the  collateral  to secure
the New Master Loan Agreement.

ConCap Holdings,  Inc. ("CHI"), a Texas corporation and wholly-owned  subsidiary
of CEI, is the sole General Partner of CCEP and an affiliate of the Partnership.
The  General  Partners  of EP  became  Limited  Partners  in CCEP.  CHI has full
discretion with respect to conducting CCEP's business, including managing CCEP's
properties  and  initiating  and  approving   capital   expenditures  and  asset
dispositions and refinancings.

Under the terms of the New Master Loan Agreement (as adopted in November  1990),
interest accrues at a fluctuating rate per annum adjusted annually on July 15 by
the percentage change in the U.S. Department of Commerce Implicit Price Deflator
for the Gross  National  Product  subject to an interest  rate ceiling of 12.5%.
Interest  payments are currently payable quarterly in an amount equal to "Excess
Cash Flow".  If such Excess Cash Flow payments are less than the current accrued
interest during the quarterly period, the unpaid interest is added to principal,
compounded annually,  and is payable at the loan's maturity. If such Excess Cash
Flow payments are greater than the current accrued  interest,  the excess amount
is applied to the principal  balance of the loan. Any net proceeds from the sale
or refinancing of any of CCEP's properties are paid to the Partnership under the
terms of the New Master Loan Agreement. The New Master Loan Agreement matured in
November 2000. The General Partner had been  negotiating  with CCEP with respect
to its options which included  foreclosing on the properties which collateralize
the Master Loan or extending the terms of the loan. The General  Partner decided
to foreclose on the properties that  collateralize  the Master Loan. The General
Partner  began  the  process  of  foreclosure  or  executing  deeds  in  lieu of
foreclosure  during  the third  quarter of 2002 on all the  properties  in CCEP.
During the year ended December 31, 2002, the General  Partner  executed deeds in
lieu of foreclosure on four of the active  properties of CCEP. In addition,  one
property held by CCEP was sold in December 2002. The foreclosure  process on the
remaining four  properties  held by CCEP is ongoing.  As the deeds are executed,
title in the  properties  previously  owned by CCEP will be  transferred  to the
Partnership,  subject to the existing  liens on such  properties,  including the
first mortgage loans. As a result,  the Partnership  will assume  responsibility
for the operations of such properties.

For  1992,  Excess  Cash  Flow was  generally  defined  in the New  Master  Loan
Agreement  as net cash flow from  operations  after  third-party  debt  service.
Effective  January 1, 1993, the Partnership and CCEP amended the New Master Loan
Agreement  to  stipulate  that Excess Cash Flow would be computed net of capital
improvements. Such expenditures were formerly funded from advances on the Master
Loan from the  Partnership to CCEP.  This amendment and change in the definition
of Excess Cash Flow has had the effect of reducing  income on the  investment in
the Master Loan by the amount of CCEP's capital  expenditures since such amounts
were previously excluded from Excess Cash Flow.

Item 2.  Description of Properties

The following table sets forth the Partnership's investment in real estate as of
December 31, 2002:




                                  Date of
Property                        Acquisition      Type of Ownership           Use

                                  
The Loft Apartments               11/19/90   Fee ownership, subject to  Apartment
  Raleigh, NC                                a first mortgage           184 units

The Sterling Apartment Homes      12/01/95   Fee ownership subject to   Apartment
  and Commerce Center                        a first mortgage (1)       536 units
  Philadelphia, PA                                                      Commercial
                                                                        110,368 sq ft

Silverado Apartments              8/09/02    Fee ownership, subject to  Apartment
 El Paso, TX                                 a first mortgage           248 units

The Knolls Apartments             8/09/02    Fee ownership, subject to  Apartment
 Colorado Springs, CO                        a first mortgage           262 units

Indian Creek Village
 Apartments                       8/09/02    Fee ownership, subject to  Apartment
 Overland Park, KS                           a first mortgage           274 units

Tates Creek Village
 Apartments                       8/13/02    Fee ownership, subject to  Apartment
 Lexington, KY                               a first mortgage           204 units


(1)   Property  is  held  by a  Limited  Partnership  in  which  the  Registrant
      ultimately owns a 100% interest.

Schedule of Properties:

Set forth below for each of the  Partnership's  properties is the gross carrying
value,  accumulated  depreciation,  depreciable life, method of depreciation and
Federal tax basis at December 31, 2002.




                           Gross
                          Carrying   Accumulated                         Federal
Property                   Value    Depreciation     Rate    Method     Tax Basis
                              (in thousands)                         (in thousands)


                                                             
The Loft Apartments       $ 7,579      $ 4,258     5-30 yrs    S/L       $ 4,665
The Sterling Apartment
  Homes and Commerce
  Center                   35,966       14,578     5-30 yrs    S/L        24,975
Silverado                   4,792           39     5-30 yrs    S/L         4,727
The Knolls                 15,173          111     5-30 yrs    S/L        14,996
Indian Creek Village       12,228          110     5-30 yrs    S/L        12,034
Tates Creek Village         6,339           62     5-30 yrs    S/L         6,225
                          $82,077      $19,158                           $67,612


See  "Note A" of the  consolidated  financial  statements  included  in "Item 8.
Financial   Statements  and  Supplementary   Data"  for  a  description  of  the
Partnership's capitalization and depreciation policies.

Schedule of Property Indebtedness:

The  following  table sets forth certain  information  relating to the mortgages
encumbering the Partnership's properties at December 31, 2002.




                        Principal                                           Principal
                        Balance At
                       December 31,
                                                                             Balance
                                        Interest       Period   Maturity     Due At
      Property             2002           Rate       Amortized    Date    Maturity (1)
                      (in thousands)                                           (in
                                                                           thousands)
The Loft Apartments
                                                           
  1st mortgage           $ 4,139          6.95%      360 months 12/01/05     $ 3,903
The          Sterling
Apartment
  Homes and Commerce
  Center
  1st mortgage             21,972         6.77%      120 months 10/01/08      19,975
Silverado Apartments
 1st mortgage              3,360          7.87%      240 months 11/01/10       2,434
The Knolls
  1st mortgage             9,433          7.78%      240 months 03/01/10       7,105
Indian Creek Village
  1st mortgage             8,340          7.83%      240 months 01/01/10       6,351
Tates Creek Village
  1st mortgage             4,017          7.78%      240 months 04/01/10        3,017
                         $51,261
Unamortized mortgage
 premiums                  1,388
                         $52,649                                            $ 42,785


(1)   See "Item 8.  Financial  Statements and  Supplementary  Data - Note E" for
      information  with  respect to the  Registrant's  ability  to prepay  these
      mortgages and other specific details about the mortgages.

Rental Rates and Occupancy:

Average annual rental rates and occupancy for 2002 and 2001 for each property:




                                               Average Annual            Average
                                                Rental Rates            Occupancy
 Property                                    2002          2001       2002    2001

                                                                  
 The Loft Apartments                     $ 8,605/unit  $ 8,985/unit   90%     92%
 The Sterling Apartment Homes
   (residential)                          16,974/unit   16,476/unit   91%     95%
 The Sterling Commerce Center
   (commercial)                            18.17/s.f.    16.73/s.f.   56%     86%
 Silverado Apartments
   (residential)                          6,661/unit    5,988/unit    96%     91%
 The Knolls Apartments
   (residential)                         10,106/unit    8,242/unit    88%     96%
 Indian Creek Village Apartments
   (residential)                          9,824/unit    8,574/unit    92%     94%
 Tates Creek Village Apartments
   (residential)                          8,615/unit    7,652/unit    90%     94%


The General  Partner  attributes  the  decrease  in  occupancy  at The  Sterling
Commerce  Center  to the  loss of a major  tenant  in late  December  2001.  The
Partnership is actively seeking a tenant to lease the space formerly occupied by
this  major  tenant.  See  "Item 7.  Management's  Discussion  and  Analysis  of
Financial Condition and Results of Operations" for further details regarding the
loss of this tenant.

The General  Partner  attributes  the  decrease  in  occupancy  at the  Sterling
Apartment  Homes,  Tates  Creek  Village,  and  The  Knolls  Apartments  to  the
competitive market of the apartment industry in the properties'  locations.  The
increase in  occupancy  at Silverado  Apartments  is due to increased  marketing
efforts.

As noted under "Item 1.  Description of Business",  the real estate  industry is
highly competitive.  All of the properties are subject to competition from other
residential  apartment  complexes and  commercial  properties  in the area.  The
General Partner believes that all of the properties are adequately insured. Each
apartment  complex  leases  properties  for  terms  of  one  year  or  less.  No
residential  tenant leases 10% or more of the available rental space. All of the
properties are in good physical  condition,  subject to normal  depreciation and
deterioration as is typical for assets of this type and age.

The following is a schedule of the lease expirations of the commercial space for
The Sterling Commerce Center for the years beginning 2003 through the maturities
of the current leases.

                  Number of                                          % of Gross
                 Expirations      Square Feet       Annual Rent     Annual Rent

  2003              12              21,914            336,517         38.38%
  2004               4               9,611            150,409         17.16%
  2005               4               5,608            116,106         13.24%
  2006               1               3,838             70,440          8.04%
  2007               3               7,347            203,249         23.18%

No commercial tenant leases 10% or more of the available rental space.

Real Estate Taxes and Rates:

Real estate taxes and rates in 2002 for each property were:

                                         Billing         Rate
                                 (in thousands)
The Loft Apartments                        $ 88           0.99%
The Sterling Apartment Homes and
  Commerce Center                           740           8.82%
Silverado Apartments                        186           3.00%
The Knolls Apartments                        64           5.69%
Indian Creek Village Apartments             118           9.56%
Tates Creek Village Apartments               58           0.96%

Capital Improvements:

The Loft

During the year ended December 31, 2002, the Partnership completed approximately
$153,000  of  capital  improvements,  consisting  primarily  of  floor  covering
replacements, a water submetering project, and swimming pool improvements. These
improvements  were  funded  from  operations  and  replacement   reserves.   The
Partnership  is  currently  evaluating  the  capital  improvement  needs  of the
property  for the  upcoming  year and expects to budget  approximately  $55,000.
Additional  improvements  may be  considered  in 2003  and  will  depend  on the
physical  condition  of  the  property  as  well  as  replacement  reserves  and
anticipated cash flow generated by the property.

The Sterling

During the year ended December 31, 2002, the Partnership completed approximately
$171,000 of capital  improvements  at The Sterling  Apartment Homes and Commerce
Center,  consisting  primarily  of  parking  area  resurfacing,  floor  covering
replacements,  electrical  and  heating  upgrades  and office  computers.  These
improvements were funded from operating cash flow and replacement reserves.  The
Partnership  is  currently  evaluating  the  capital  improvements  needs of the
property for the upcoming year and expects to budget approximately  $161,000 for
the apartments and  approximately  $13,000 for the Commerce  Center.  Additional
improvements may be considered in 2003 and will depend on the physical condition
of the  property  as well as  replacement  reserves  and  anticipated  cash flow
generated by the property.

Silverado Apartments

The  Partnership  completed  approximately  $18,000 of capital  improvements  at
Silverado  Apartments  as of December  31, 2002,  consisting  primarily of floor
covering  and  appliance  replacements.  These  improvements  were  funded  from
operating  cash flow.  The  Partnership  is  currently  evaluating  the  capital
improvement  needs of the property  for the upcoming  year and expects to budget
approximately  $639,000.  Additional  improvements may be considered in 2003 and
will depend on the physical  condition  of the  property as well as  replacement
reserves and anticipated cash flow generated by the property.

The Knolls Apartments

The Partnership completed  approximately $173,000 of capital improvements at The
Knolls  Apartments as of December 31, 2002,  consisting  primarily of structural
improvements,   and  floor  covering,   appliance  and  air  conditioning   unit
replacements.  These  improvements  were funded from  operating  cash flow.  The
Partnership  is  currently  evaluating  the  capital  improvement  needs  of the
property  for the  upcoming  year and expects to budget  approximately  $79,000.
Additional  improvements  may be  considered  in 2003  and  will  depend  on the
physical condition of the property as well as anticipated cash flow generated by
the property.

Indian Creek Village Apartments

The  Partnership  completed  approximately  $28,000 of capital  improvements  at
Indian Creek Village Apartments as of December 31, 2002, consisting primarily of
floor covering replacements.  These improvements were funded from operating cash
flow. The Partnership is currently  evaluating the capital  improvement needs of
the property for the upcoming year and expects to budget approximately  $76,000.
Additional  improvements  may be  considered  in 2003  and  will  depend  on the
physical  condition  of  the  property  as  well  as  replacement  reserves  and
anticipated cash flow generated by the property.

Tates Creek Village Apartments

The Partnership completed approximately $39,000 of capital improvements at Tates
Creek Village Apartments as of December 31, 2002,  consisting primarily of floor
covering and air conditioning unit replacements.  These improvements were funded
from operating cash flow.  The  Partnership is currently  evaluating the capital
improvement  needs of the property  for the upcoming  year and expects to budget
approximately  $169,000.  Additional  improvements may be considered in 2003 and
will depend on the physical  condition  of the  property as well as  replacement
reserve and anticipated cash flow generated by the property.

The additional capital improvements at the Partnership's properties will be made
only to the extent of cash available from operations and  Partnership  reserves.
To the  extent  that such  budgeted  capital  improvements  are  completed,  the
Partnership's  distributable  cash flow,  if any, may be  adversely  affected at
least in the short term.

Item 3.  Legal Proceedings

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial Group, Inc., et al. (the "Nuanes action") in the Superior Court of the
State of  California  for the  County  of San  Mateo.  The  plaintiffs  named as
defendants,  among others,  the Partnership,  its General Partner and several of
their  affiliated  partnerships and corporate  entities.  The action purports to
assert  claims on behalf of a class of  limited  partners  and  derivatively  on
behalf of a number of limited partnerships (including the Partnership) which are
named as nominal defendants, challenging, among other things, the acquisition of
interests in certain General Partner entities by Insignia  Financial Group, Inc.
("Insignia") and entities which were, at one time, affiliates of Insignia;  past
tender offers by the Insignia  affiliates to acquire limited  partnership units;
management of the  partnerships  by the Insignia  affiliates;  and the series of
transactions  which  closed on October 1, 1998 and  February  26,  1999  whereby
Insignia and Insignia  Properties Trust,  respectively,  were merged into AIMCO.
The plaintiffs seek monetary damages and equitable  relief,  including  judicial
dissolution of the  Partnership.  On June 25, 1998, the General  Partner filed a
motion seeking dismissal of the action. In lieu of responding to the motion, the
plaintiffs  filed an amended  complaint.  The General Partner filed demurrers to
the amended complaint which were heard February 1999.

Pending the ruling on such  demurrers,  settlement  negotiations  commenced.  On
November 2, 1999,  the parties  executed and filed a Stipulation  of Settlement,
settling claims, subject to court approval, on behalf of the Partnership and all
limited partners who owned units as of November 3, 1999. Preliminary approval of
the  settlement  was obtained on November 3, 1999 from the Court,  at which time
the Court set a final  approval  hearing for  December  10,  1999.  Prior to the
December  10,  1999  hearing,  the  Court  received  various  objections  to the
settlement, including a challenge to the Court's preliminary approval based upon
the alleged lack of authority of prior lead counsel to enter the settlement.  On
December  14,  1999,  the General  Partner  and its  affiliates  terminated  the
proposed settlement.  In February 2000, counsel for some of the named plaintiffs
filed a motion to disqualify plaintiff's lead and liaison counsel who negotiated
the settlement.  On June 27, 2000, the Court entered an order disqualifying them
from the case and an appeal was taken  from the order on  October  5,  2000.  On
December 4, 2000, the Court  appointed the law firm of Lieff Cabraser  Heimann &
Bernstein  LLP as new  lead  counsel  for  plaintiffs  and the  putative  class.
Plaintiffs  filed a third  amended  complaint on January 19,  2001.  On March 2,
2001,  the  General  Partner  and its  affiliates  filed a demurrer to the third
amended  complaint.  On May 14, 2001,  the Court heard the demurrer to the third
amended  complaint.  On July 10,  2001,  the Court  issued  an order  sustaining
defendants'  demurrer on certain grounds.  On July 20, 2001,  Plaintiffs filed a
motion for  reconsideration  of the Court's July 10, 2001 order granting in part
and denying in part defendants' demurrer. On September 7, 2001, Plaintiffs filed
a fourth amended class and derivative action  complaint.  On September 12, 2001,
the Court denied Plaintiffs' motion for reconsideration. On October 5, 2001, the
General Partner and affiliated defendants filed a demurrer to the fourth amended
complaint,  which was heard on December 11, 2001. On February 2, 2002, the Court
served its order granting in part the demurrer.  The Court has dismissed without
leave  to amend  certain  of the  plaintiffs'  claims.  On  February  11,  2002,
plaintiffs  filed a motion seeking to certify a putative class  comprised of all
non-affiliated  persons  who own or have owned  units in the  partnerships.  The
General Partner and affiliated  defendants oppose the motion. On April 29, 2002,
the Court held a hearing on plaintiffs' motion for class  certification and took
the matter under submission after further briefing, as ordered by the court, was
submitted by the parties.  On July 10, 2002, the Court entered an order vacating
the  current  trial  date of  January  13,  2003 (as well as the  pre-trial  and
discovery cut-off dates) and stayed the case in its entirety through November 7,
2002 so that the parties could have an  opportunity  to discuss  settlement.  On
October  30,  2002,  the court  entered  an order  extending  the stay in effect
through January 10, 2003.

On January 8, 2003,  the parties filed a  Stipulation  of Settlement in proposed
settlement of the Nuanes action and the Heller action described below. The Court
has  scheduled  the hearing on  preliminary  approval  for April 4, 2003 and the
hearing on final approval for June 2, 2003.

In general  terms,  the  proposed  settlement  provides  for  certification  for
settlement  purposes of a settlement class consisting of all limited partners in
this  Partnership and others (the  "Partnerships")  as of December 20, 2002, the
dismissal  with  prejudice  and  release  of claims  in the  Nuanes  and  Heller
litigation,  payment by AIMCO of $9.9  million  (which shall be  distributed  to
settlement  class  members  after  deduction of attorney fees and costs of class
counsel and certain costs of  settlement)  and up to $ 1 million toward the cost
of independent  appraisals of the Partnerships'  properties by a Court appointed
appraiser.  An affiliate of the General Partner has also agreed to make a tender
offer to purchase all of the partnership  interests in the  Partnerships  within
one year of final approval,  if it is granted,  and to provide partners with the
independent  appraisals at the time of these  tenders.  The proposed  settlement
also  provides  for the  limitation  of the  allowable  costs  which the General
Partner or its affiliates  will charge the  Partnerships in connection with this
litigation  and  imposes  limits  on the  class  counsel  fees and costs in this
litigation.  If the Court grants preliminary approval of the proposed settlement
in April, a notice will be distributed to partners providing detail on the terms
of the proposed settlement.

During the third  quarter of 2001, a complaint  (the "Heller  action") was filed
against  the same  defendants  that are named in the  Nuanes  action,  captioned
Heller v. Insignia Financial Group. On or about August 6, 2001, plaintiffs filed
a first amended  complaint.  The first amended complaint in the Heller action is
brought as a purported  derivative  action,  and asserts  claims for among other
things  breach  of  fiduciary  duty;  unfair  competition;   conversion,  unjust
enrichment;  and judicial  dissolution.  Plaintiffs in the Nuanes action filed a
motion to  consolidate  the Heller action with the Nuanes action and stated that
the Heller action was filed in order to preserve the derivative claims that were
dismissed  without  leave to amend in the Nuanes action by the Court order dated
July 10, 2001. On October 5, 2001, the General Partner and affiliated defendants
moved to strike the first  amended  complaint in its entirety for  violating the
Court's  July 10, 2001 order  granting  in part and denying in part  defendants'
demurrer in the Nuanes action, or  alternatively,  to strike certain portions of
the  complaint  based on the statute of  limitations.  Other  defendants  in the
action demurred to the fourth amended complaint,  and,  alternatively,  moved to
strike the  complaint.  On December  11, 2001,  the court heard  argument on the
motions and took the matters under  submission.  On February 4, 2002,  the Court
served  notice of its order  granting  defendants'  motion to strike  the Heller
complaint  as a violation  of its July 10, 2001 order in the Nuanes  action.  On
March 27, 2002, the plaintiffs  filed a notice  appealing the order striking the
complaint.  Before completing briefing on the appeal, the parties stayed further
proceedings  in the  appeal  pending  the  Court's  review  of the  terms of the
proposed settlement described above.

The  General  Partner  does not  anticipate  that any costs to the  Partnership,
whether legal or settlement costs,  associated with these cases will be material
to the Partnership's overall operations.

The  Partnership is unaware of any other pending or outstanding  litigation that
is not of a routine nature arising in the ordinary course of business.

Item 4.  Submission of Matters to a Vote of Security Holders

During the quarter ended December 31, 2002, no matter was submitted to a vote of
unitholders through the solicitation of proxies or otherwise.

                                     PART II

Item 5.     Market for Partnership Equity and Related Partner Matters

The Partnership,  a publicly-held limited partnership,  offered and sold 200,342
limited   partnership  units  (the  "Units")   aggregating   $200,342,000.   The
Partnership  currently  has 11,512  holders  of record  owning an  aggregate  of
199,043.2  Units.  Affiliates of the General  Partner owned  129,682.6  units or
65.15% at December 31, 2002.  No public  trading  market has  developed  for the
Units, and it is not anticipated that such a market will develop in the future.

The following table sets forth the distributions made by the Partnership for the
years ended December 31, 2000, 2001 and 2002:

                                                Distributions
                                                           Per Limited
                                        Aggregate        Partnership Unit
                                 (in thousands)

       01/01/00 - 12/31/00           $ 47,880 (1)            $240.55

       01/01/01 - 12/31/01             15,757 (2)              78.83

       01/01/02 - 12/31/02              3,572 (3)              17.79

        01/01/03 - 1/31/03              1,993 (4)               9.99

(1)   Distributions were made from surplus funds,  approximately  $28,770,000 of
      which was from the receipt of net financing and refinancing  proceeds from
      CCEP.

(2)   Consists  of   approximately   $6,646,000  of  cash  from  operations  and
      approximately   $9,111,000   of  cash  from   surplus   funds,   of  which
      approximately  $1,425,000 was from the receipt of previously undistributed
      net  financing  and  refinancing  proceeds  from  CCEP  and  approximately
      $6,019,000 was from the receipt of net sales proceeds from CCEP.

(3)   Consists  of   approximately   $3,098,000  of  cash  from  operations  and
      approximately $474,000 of cash from surplus funds.

(4)   Consists  of   approximately   $362,000  of  cash  from   operations   and
      approximately  $1,631,000  of cash from surplus funds which was from sales
      proceeds from CCEP.

Future   distributions  will  depend  on  the  levels  of  cash  generated  from
operations, the availability of cash reserves and the timing of debt maturities,
refinancings  and/or  property  sales.  The  Partnership's  cash  available  for
distribution is reviewed on a monthly basis.  There can be no assurance that the
Partnership  will  generate  sufficient  funds from  operations,  after  planned
capital expenditures, to permit further distributions to its partners in 2003 or
subsequent   periods.   See  "Item  2.   Description  of  Properties  -  Capital
Improvements"  for information  relating to planned capital  expenditures at the
properties.

In addition to its indirect  ownership of the general  partner  interests in the
Partnership,  AIMCO and its affiliates owned 129,682.6 limited partnership units
in the Partnership  representing 65.15% of the outstanding Units at December 31,
2002. A number of these Units were  acquired  pursuant to tender  offers made by
AIMCO or its  affiliates.  It is  possible  that  AIMCO or its  affiliates  will
acquire additional units of limited  partnership  interest in the Partnership in
exchange  for  cash  or a  combination  of  cash  and  units  in  the  operating
partnership of AIMCO either through  private  purchases or tender offers.  Under
the  Partnership  Agreement,  unitholders  holding a  majority  of the Units are
entitled to take action with respect to a variety of matters which would include
voting on certain  amendments to the Partnership  Agreement and voting to remove
the General  Partner.  As a result of its ownership of 65.15% of the outstanding
Units,  AIMCO is in a position to control all voting  decisions  with respect to
the  Registrant.  Although  the General  Partner  owes  fiduciary  duties to the
limited  partners of the  Partnership,  the General  Partner also owes fiduciary
duties to AIMCO as its sole stockholder.  As a result, the duties of the General
Partner,  as  managing  general  partner,  to the  Partnership  and its  limited
partners may come into conflict with the duties of the General Partner to AIMCO,
as its sole stockholder.

Item 6.     Selected Financial Data

The  following  table sets forth a summary of  selected  financial  data for the
Partnership.  This summary should be read in conjunction with the  Partnership's
financial   statements  and  notes  thereto  appearing  in  "Item  8.  Financial
Statements and Supplementary Data".




                                           FOR THE YEARS ENDED DECEMBER 31,
                               2002         2001         2000         1999         1998
STATEMENTS OF OPERATIONS
                                         (in thousands, except per unit data)

                                                                
Total revenues             $   14,646   $   15,484   $   14,193   $   13,545   $   14,394
Total expenses                (13,159)     (11,582)     (10,823)      (9,773)      (9,087)
Reduction in provision
 for impairment loss               --        3,176       14,241           --       23,269
Net income from
 continuing operations          1,487        7,078       17,611        3,772       28,576
Gain on foreclosure of
 real estate                    1,831           --           --           --           --
Net income                 $    3,318   $    7,078   $   17,611   $    3,772   $   28,576
Net income per Limited
  Partnership Unit         $    16.50   $    35.20   $    87.59   $    18.76   $   142.12

Distributions per Limited
  Partnership Unit         $    17.79   $    78.83   $   240.55   $   113.65   $   143.58
Limited Partnership Units
  outstanding               199,043.2    199,045.2    199,045.2    199,045.2    199,045.2





                                                 AS OF DECEMBER 31,
BALANCE SHEETS                2002          2001         2000         1999         1998

                                                  (in thousands)

                                                                 
Total assets              $ 83,331      $ 56,089     $ 65,383     $ 95,668      $115,182

Mortgage note payable     $ 52,649      $ 26,457     $ 26,762     $ 27,074      $ 27,360


The  comparability of the information above has been affected by the foreclosure
on the four CCEP  properties.  See "Item 1. Description of Business" for further
information.

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

This item should be read in conjunction  with "Item 8. Financial  Statements and
Supplementary Data" and other items contained elsewhere in this report.

Results of Operations

2002 Compared to 2001

The  Partnership's  net  income  for  the  year  ended  December  31,  2002  was
approximately  $3,318,000 compared to net income of approximately $7,078,000 for
the corresponding  period in 2001. The decrease in net income for the year ended
December  31, 2002 as compared to the year ended  December 31, 2001 is primarily
due to the  $3,176,000  reduction of the  provision for  impairment  loss on the
investment  in the Master Loan  recognized  during the year ended  December  31,
2001, a decrease of approximately  $2,894,000 in interest  payments received and
therefore  recognized  on the Master  Loan,  and an increase  in total  expenses
partially offset by the revenues of the four foreclosed properties and by a gain
on foreclosure of real estate of approximately $1,831,000.  The reduction of the
provision for  impairment  loss on the Master Loan was recognized in 2001 due to
an increase in the net  realizable  value of the  collateral  properties and the
payment of  principal  on the Master  Loan from the sales  proceeds  of Magnolia
Trace  Apartments  during the year ended December 31, 2001. The General  Partner
evaluates the net realizable value on a semi-annual basis or when  circumstances
dictate that it should be analyzed. Interest income on investment in Master Loan
is only  recognized  to the extent that actual cash is received.  The receipt of
cash is dependent on the corresponding  cash flow of the properties which secure
the  Master  Loan.  The  gain  on  foreclosure  of  real  estate  was due to the
foreclosure of four properties (Silverado, The Knolls, Indian Creek Village, and
Tates Creek Village Apartments) during 2002. The Master Loan matured in November
2000.  The General  Partner had been  negotiating  with CCEP with respect to its
options which included  foreclosing on the properties  which  collateralize  the
Master Loan or extending the terms of the loan. The General  Partner  decided to
foreclose on the  properties  that  collateralize  the Master Loan.  The General
Partner  began  the  process  of  foreclosure  or  executing  deeds  in  lieu of
foreclosure  during  the third  quarter of 2002 on all the  properties  in CCEP.
During August 2002, the General Partner executed deeds in lieu of foreclosure on
four of the active  properties of CCEP.  In addition,  one property held by CCEP
was sold  during  December  2002 (see "CCEP  Property  Operations"  for  further
discussion).  The  foreclosure  process on the remaining four properties held by
CCEP is ongoing. As the deeds are executed,  title in the properties  previously
owned by CCEP are transferred to the Partnership,  subject to the existing liens
on such  properties,  including  the first  mortgage  loans.  As a  result,  the
Partnership assumed responsibility for the operations of such properties.

Excluding the items related to the Master Loan,  and the gain on  foreclosure of
real estate,  the  Partnership's net income for the year ended December 31, 2002
and 2001 was approximately $1,101,000 and $622,000,  respectively. This increase
in net income for the year ended  December  31,  2002 is due to an  increase  in
total revenues partially offset by an increase in total expenses.

The increase in total  revenues  for the year ended  December 31, 2002 is due to
increases in rental  income and other  income.  The increase in rental income is
due to the addition of the four foreclosed properties and increased rental rates
at Sterling Apartment Homes and Sterling Commercial Center,  partially offset by
a decrease  in  occupancy  at The  Sterling  Commerce  Center  and The  Sterling
Apartment  Homes and a decrease in average rental rates at The Loft  Apartments.
The increase in other income for the year ended  December 31, 2002 is due to the
foreclosure of the four properties and an increase in utility  reimbursements at
The Sterling,  partially  offset by reduced interest income due to lower average
cash balances in interest bearing accounts.

Total  expenses  increased  for the  year  ended  December  31,  2002 due to the
foreclosure  of  the  four  properties.  Exclusive  of  the  operations  of  the
foreclosed properties, expenses decreased due to decreases in operating expenses
and  depreciation  expense  partially  offset  by an  increase  in  general  and
administrative expenses. Operating expense decreased primarily due to a decrease
in property, amortization and maintenance expenses and management fees. Property
expenses  decreased  due to a decrease in  salaries  and  related  benefits  and
utility expenses at Sterling Apartment Homes and utility charges at The Sterling
and The Loft Apartments.  Amortization expense decreased due to the write-off in
2001 of unamortized  lease  commissions  relating to a tenant which moved out in
December 2001 (see further  discussion  in 2001 compared to 2000").  Maintenance
expenses  decreased due to an increase in the  capitalization  of certain direct
and indirect project costs,  primarily  payroll related costs, at the properties
(see "Item 8. Financial Statements and Supplementary Data, Note A - Organization
and Significant  Accounting  Policies." Management fees decreased due to reduced
rental  revenue at The  Sterling  Apartment  Homes and The  Sterling  Commercial
Center.   Depreciation   expense  decreased  due  to  capital  improvements  and
replacements becoming fully depreciated during the past year at The Sterling.

General and  administrative  expense  increased for the year ended  December 31,
2002 due to an  increase in the costs of  services  included  in the  management
reimbursements  to the General Partner  allowed under the Partnership  Agreement
and legal expenses related to the foreclosures of the four properties  offset by
a decrease due to the timing of an increase in the business  privilege  tax paid
to the city of Philadelphia.

2001 Compared to 2000

The  Partnership's  net  income  for  the  year  ended  December  31,  2001  was
approximately $7,078,000 compared to net income of approximately $17,611,000 for
the year ended  December 31, 2000. The decrease in net income for the year ended
December 31, 2001 as compared to the year ended  December 31, 2000 was primarily
due to the decrease in the reduction of the provision for impairment loss on the
investment  in the  Master  Loan  recognized  in 2001,  partially  offset  by an
increase  in interest  payments  received  and  therefore  recognized  as income
related  to the  Master  Loan.  Each of these  factors  was  caused by  improved
operations at the collateral  properties  due to major capital  projects and the
concerted effort to complete  deferred  maintenance items that have been ongoing
over the past few years.  This work was funded by cash flow from the  collateral
properties  themselves  as no amounts  have been  borrowed on the Master Loan or
from other sources in order to fund such improvements.

Excluding the items related to the Master Loan, the Partnership's net income for
the  year  ended  December  31,  2001 was  approximately  $622,000  compared  to
approximately  $1,370,000  for the year ended December 31, 2000. The decrease in
net income for the year ended  December  31, 2001 is due to an increase in total
expenses offset by a slight increase in total revenues.

The increase in total  expenses for the year ended  December 31, 2001 was due to
an increase in operating and property tax expenses. Operating expenses increased
due to an increase in utility  expense,  primarily  natural gas, at The Sterling
and to  increases in salary and other  related  benefits at The Sterling and The
Loft  Apartments.  Also, the Partnership  experienced a significant  increase in
amortization  expense due to the  write-off  of  unamortized  lease  commissions
relating to a tenant  which moved out in December  2001 from The  Sterling  (See
further discussion below).  Property tax expense increased due to an increase in
the assessed value of The Sterling.

The increase in total revenues for the year ended December 31, 2001 is due to an
increase in rental and other income offset by a decrease in interest  income and
property  tax refunds.  The increase in rental  income was due to an increase in
average rental rates at The Sterling and The Loft  Apartments and an increase in
occupancy at The Sterling Apartment Homes,  offset by a decrease in occupancy at
The  Sterling  Commerce  Center and a slight  decrease in  occupancy at The Loft
Apartments. Other income increased due to an increase in lease cancellation fees
and cable  television  income at The  Sterling  and The Loft  Apartments  and to
utility  reimbursements and tenant deposit  forfeitures at The Sterling Commerce
Center and Apartment  Homes.  The decrease in property tax refunds is due to The
Sterling  receiving a refund of prior year tax bills which had been under appeal
during the year ending December 31, 2000.  Interest income  decreased due to the
release of the  working  capital  reserve  requirement  (see "Item 8.  Financial
Statements  and  Supplementary  Data - Note G") which  resulted in lower average
cash balances in interest bearing accounts.

In December 2001, the  Partnership's  most significant  commercial tenant at The
Sterling  Commerce  Center  vacated  its space which  represented  30.58% of the
leaseable  commercial space. The Partnership filed a lawsuit against such tenant
seeking monetary  damages for unpaid rent,  including rent which had been abated
in favor of the tenant  completing  significant  improvements to its space.  The
Partnership  accepted a  settlement  whereby  the tenant  will pay  $180,000  in
satisfaction  of all unpaid  rent  amounts due and the  Partnership  will accept
possession of the improvements completed by the tenant which have been valued at
approximately  $498,000.  The  settlement  was paid in 2002.  Beginning in 2002,
these  improvements  will be depreciated  over their remaining  estimated useful
lives.  As a result of the tenant vacating the space,  the Partnership  expensed
approximately $191,000 in unamortized lease commissions during 2001.

Included in general and administrative expenses for the years ended December 31,
2002 and 2001 are costs of the  services  provided  by the  General  Partner  as
allowed under the  Partnership  Agreement  associated with its management of the
Partnership.  Also included are costs  associated  with the quarterly and annual
communications  with  investors  and  regulatory  agencies  and the annual audit
required by the Partnership Agreement.

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

Capital Resources and Liquidity

At  December  31,  2002,  the  Partnership  had  cash and  cash  equivalents  of
approximately  $3,175,000  compared to  approximately  $922,000 at December  31,
2001.  Cash  and  cash  equivalents  increased  approximately  $2,253,000  since
December 31, 2001 due to approximately  $5,427,000 and $956,000 of cash provided
by  operating  and  investing  activities,  respectively,  partially  offset  by
approximately $4,130,000 of cash used in financing activities.  Cash provided by
investing activities consisted of principal payments received on the Master Loan
and  distributions  received from investments in affiliates  partially offset by
property  improvements  and  replacements  and net  deposits to escrow  accounts
maintained by the mortgage lenders.  Cash used in financing activities consisted
of  distributions  to partners  and  principal  payments  made on the  mortgages
encumbering the Partnership's  properties.  The Partnership  invests its working
capital reserves in interest bearing accounts.

During  the years  ended  December  31,  2002,  2001 and 2000,  the  Partnership
received  approximately  $1,719,000,  $7,801,000 and  $33,634,000,  as principal
payments on the Master  Loan from CCEP.  Approximately  $88,000 was  received on
certain  investments  by CCEP,  which were  required  to be  transferred  to the
Partnership   per  the  Master  Loan   Agreement.   In  addition,   during  2002
approximately  $1,631,000 was received  representing  net sale proceeds from the
sale of Society Park Apartments.  For 2001,  approximately $357,000 was received
on certain  investments  by CCEP,  which were required to be  transferred to the
Partnership per the Master Loan Agreement. Approximately $6,019,000 was received
representing  net  proceeds  from the sale of Magnolia  Trace and  approximately
$1,425,000  was  received  representing  additional  proceeds  received  for the
refinancing of the mortgages  encumbering  nine of the investment  properties in
2000. For 2000,  approximately  $238,000 was received on certain  investments by
CCEP,  which were required to be transferred to the  Partnership  per the Master
Loan Agreement.  Approximately $4,526,000 was received representing net proceeds
from  the  sale  of  Shirewood  and   approximately   $28,870,000  was  received
representing  net  proceeds  received  for  the  refinancing  of  the  mortgages
encumbering nine of the investment properties.

The sufficiency of existing  liquid assets to meet future  liquidity and capital
expenditure   requirements   is  directly   related  to  the  level  of  capital
expenditures  required at the various  properties  to  adequately  maintain  the
physical  assets and other  operating needs of the Registrant and to comply with
Federal,  state,  and local legal and regulatory  requirements.  Such assets are
currently  thought to be sufficient for any near-term needs of the  Partnership.
See "CCEP  Property  Operations"  for  discussion  on CCEP's  ability to provide
future  cash flow as Master Loan debt  service.  The  General  Partner  monitors
developments in the area of legal and regulatory  compliance and is studying new
federal laws,  including the  Sarbanes-Oxley Act of 2002. The Sarbanes-Oxley Act
of 2002  mandates  or suggests  additional  compliance  measures  with regard to
governance,  disclosure,  audit and other areas. In light of these changes,  the
Partnership  expects that it will incur higher  expenses  related to compliance,
including   increased  legal  and  audit  fees.  The  Partnership  is  currently
evaluating the capital improvements needs of all the properties for the upcoming
year and  expects  to  budget  approximately  $1,179,000  for all the  apartment
complexes and approximately $13,000 for the Sterling Commerce Center. Additional
improvements may be considered in 2003 and will depend on the physical condition
of the  properties as well as  replacement  reserves and  anticipated  cash flow
generated by the properties.

The  Partnership's  assets are thought to be sufficient for any near-term  needs
(exclusive  of  capital   improvements)   of  the   Partnership.   The  mortgage
indebtedness of approximately $52,649,000 requires monthly payments of principal
and interest, and balloon payments of approximately $3,903,000,  $19,975,000 and
$18,907,000 during 2005, 2008 and 2010,  respectively.  The General Partner will
attempt to refinance such indebtedness  and/or sell the properties prior to such
maturity dates. If the properties  cannot be refinanced or sold for a sufficient
amount, the Partnership may risk losing such properties through foreclosure.

The Partnership distributed the following amounts during the year ended December
31, 2002 and 2001 (in thousands, except per unit data):

                                                Distributions
                                                           Per Limited
                                        Aggregate        Partnership Unit

       01/01/00 - 12/31/00           $ 47,880 (1)            $240.55
       01/01/01 - 12/31/01             15,757 (2)              78.83
       01/01/02 - 12/31/02              3,572 (3)              17.79
       01/01/03 - 1/31/03               1,993 (4)               9.99

(1)   Distributions were made from surplus funds,  approximately  $28,770,000 of
      which was from the receipt of net financing and refinancing  proceeds from
      CCEP.

(2)   Consists  of   approximately   $6,646,000  of  cash  from  operations  and
      approximately   $9,111,000   of  cash  from   surplus   funds,   of  which
      approximately  $1,425,000 was from the receipt of previously undistributed
      net  financing  and  refinancing  proceeds  from  CCEP  and  approximately
      $6,019,000 was from the receipt of net sales proceeds from CCEP.

(3)   Consists  of   approximately   $3,098,000  of  cash  from  operations  and
      approximately $474,000 of cash from surplus funds.

(4)   Consists  of   approximately   $362,000  of  cash  from   operations   and
      approximately  $1,631,000  of cash from surplus funds which was from sales
      proceeds from CCEP.

Future cash  distributions  will depend on the levels of net cash generated from
operations,   the  availability  of  cash  reserves,  and  the  timing  of  debt
maturities,   refinancings,   and/or  property  sales.  The  Partnership's  cash
available  for  distribution  is  reviewed on a monthly  basis.  There can be no
assurance that the Partnership  will generate  sufficient funds from operations,
after planned capital improvement expenditures,  to permit further distributions
to its partners during 2003 or subsequent periods.

On September 16, 2000, the  Partnership  sought the vote of limited  partners to
amend the Partnership Agreement to eliminate the requirement for the Partnership
to  maintain  reserves  equal to at least 5% of the  limited  partners'  capital
contributions  less  distributions  to limited  partners and instead  permit the
General Partner to determine reasonable reserve requirements of the Partnership.
The vote was sought pursuant to a Consent  Solicitation  that expired on October
16, 2000 at which time the amendment  was approved by the  requisite  percent of
limited  partnership  interests.  Upon expiration of the consent period, a total
number of  140,565.90  units had  voted of which  136,767.20  units had voted in
favor of the  amendment,  2,805.70  voted against the amendment and 993.00 units
abstained.

Other

In addition to its indirect  ownership of the general  partner  interests in the
Partnership,  AIMCO and its affiliates owned 129,682.6 limited partnership units
(the "Units") in the Partnership representing 65.15% of the outstanding Units at
December  31,  2002.  A number of these Units were  acquired  pursuant to tender
offers  made by  AIMCO  or its  affiliates.  It is  possible  that  AIMCO or its
affiliates will acquire additional units of limited partnership  interest in the
Partnership  in  exchange  for cash or a  combination  of cash and  units in the
operating  partnership  of AIMCO  either  through  private  purchases  or tender
offers. Under the Partnership  Agreement,  unitholders holding a majority of the
Units are  entitled to take action  with  respect to a variety of matters  which
would  include  voting on certain  amendments to the  Partnership  Agreement and
voting to remove the General Partner.  As a result of its ownership of 65.15% of
the outstanding  Units,  AIMCO is in a position to control all voting  decisions
with  respect to the  Registrant.  Although the General  Partner owes  fiduciary
duties to the limited partners of the Partnership, the General Partner also owes
fiduciary duties to AIMCO as its sole  stockholder.  As a result,  the duties of
the General Partner,  as managing  general  partner,  to the Partnership and its
limited  partners may come into conflict with the duties of the General  Partner
to AIMCO, as its sole stockholder.

CCEP Property Operations

During  the  year  ended  December  31,  2002,  CCIP  foreclosed  on four of the
properties that collaterized the Master Loan (see "Item 8. Financial  Statements
and  Supplementary  Data - Note C" for  further  discussion).  During  the third
quarter of 2002,  CCIP began the process of  foreclosure  or executing  deeds in
lieu of foreclosure.  During August 2002, the General Partner  executed deeds in
lieu of foreclosure on four of the active  properties of CCEP. In addition,  one
property held by CCEP was sold in December 2002. The foreclosure  process on the
remaining four  properties  held by CCEP is ongoing.  As the deeds are executed,
title in the properties  previously owned by CCEP are vested in CCIP, subject to
the existing liens on the properties  including the first mortgage  loans.  When
CCEP no longer has title to any properties, it will be dissolved.

As a result of the decision to  liquidate,  CCEP changed its basis of accounting
for its  financial  statements at March 31, 2002,  to the  liquidation  basis of
accounting.  Consequently,  assets have been valued at estimated net  realizable
value and liabilities are presented at their estimated  settlement amounts.  The
valuation of assets and  liabilities  necessarily  requires  many  estimates and
assumptions  and  there  are  substantial  uncertainties  in  carrying  out  the
liquidation.  The actual  realization  of assets and  settlement of  liabilities
could be higher or lower than amounts  indicated and is based upon  estimates of
the  General  Partner  of CCEP  as of the  date  of the  consolidated  financial
statements.

During the period from March 31, 2002 to December  31,  2002,  the net change in
liabilities  remained constant,  but was affected by a decrease in cash and cash
equivalents,   restricted  escrows,   investment  in  affiliated   partnerships,
investment  properties,  mortgage  notes  payable and Master  Loan and  interest
payable due to the foreclosure of four of the investment properties held by CCEP
as discussed in "Results of Operations"  and the sale of Society Park Apartments
as discussed below.

On December 31, 2002,  the  Partnership  sold  Society  Park,  located in Tampa,
Florida,  to an unaffiliated third party for net sales proceeds of approximately
$1,631,000,  after payment of closing  costs.  The  Partnership  used all of the
proceeds from the sale of the property to pay down the Master Loan  principal as
required by the Master Loan  Agreement.  The sale  resulted in a gain on sale of
investment property of approximately  $727,000.  In conjunction with the sale, a
fee of  approximately  $218,000 was earned by the General  Partner in accordance
with the  Partnership  Agreement.  The fee was paid  subsequent  to December 31,
2002.

During the year ended December 31, 2002, 2001, and 2000 CCEP paid  approximately
$1,719,000,  $7,801,000,  and  $33,634,000  in principal  payments on the Master
Loan.  Approximately  $88,000,  $357,000, and $238,000 was paid during the years
ended  December  31,  2002,  2001,  and 2000,  respectively,  representing  cash
received from distributions from three affiliated partnerships.  These funds are
required  to be  transferred  to the  Partnership  under the terms of the Master
Loan.  In  addition,  during  the year ended  December  31,  2002  approximately
$1,631,000 was paid representing proceeds received from the sale of Society Park
Apartments.  For  2001,  approximately  $6,019,000  was  paid  representing  net
proceeds from the sale of Magnolia Trace and  approximately  $1,425,000 was paid
representing  additional  proceeds received for the refinancing of the mortgages
encumbering nine of the investment  properties in 2000. For 2000,  approximately
$4,526,000  was paid  representing  net proceeds  from the sale of Shirewood and
approximately  $28,870,000 was paid  representing net proceeds  received for the
refinancing of the mortgages encumbering nine of the investment properties.

Critical Accounting Policies and Estimates

A summary of the Partnership's  significant  accounting  policies is included in
"Note A - Organization and Significant Accounting Policies" which is included in
the  consolidated  financial  statements in "Item 8.  Financial  Statements  and
Supplementary   Data".   The  General  Partner   believes  that  the  consistent
application of these policies  enables the Partnership to provide readers of the
financial   statements   with  useful  and   reliable   information   about  the
Partnership's  operating  results and financial  condition.  The  preparation of
consolidated  financial  statements in  conformity  with  accounting  principles
generally  accepted  in the  United  States  requires  the  Partnership  to make
estimates and assumptions.  These estimates and assumptions  affect the reported
amounts of assets and  liabilities  at the date of the  financial  statements as
well as reported  amounts of revenues and expenses during the reporting  period.
Actual results could differ from these  estimates.  Judgments and assessments of
uncertainties are required in applying the Partnership's  accounting policies in
many  areas.  The  Partnership  believes  that  of  its  significant  accounting
policies, the following may involve a higher degree of judgment and complexity.

Impairment of Long-Lived Assets

Investment properties are recorded at cost less accumulated depreciation, unless
considered impaired,  and the investment properties foreclosed upon in the third
quarter  of  2002  were  recorded  at  fair  market  value  at the  time  of the
foreclosures.  If events or circumstances indicate that the carrying amount of a
property  may be  impaired,  the  Partnership  will  make an  assessment  of its
recoverability  by  estimating  the  undiscounted  future cash flows,  excluding
interest charges, of the property.  If the carrying amount exceeds the aggregate
future cash flows,  the  Partnership  would  recognize an impairment loss to the
extent the carrying amount exceeds the fair value of the property.

Real  property  investments  are  subject  to varying  degrees of risk.  Several
factors  may  adversely  affect  the  economic  performance  and  value  of  the
Partnership's  investment  properties.  These  factors  include  changes  in the
national,  regional and local economic  climate;  local  conditions,  such as an
oversupply  of  multifamily   properties;   competition   from  other  available
multifamily  property  owners and changes in market  rental  rates.  Any adverse
changes in these factors could cause an impairment in the Partnership's assets.

Revenue Recognition

The Partnership generally leases apartment units for twelve-month terms or less.
Rental income  attributable to leases is recognized  monthly as it is earned and
the Partnership  fully reserves all balances  outstanding  over thirty days. The
Partnership will offer rental concessions during  particularly slow months or in
response  to  heavy  competition  from  other  similar  complexes  in the  area.
Concessions are charged to income as incurred.

The Partnership  leases certain  commercial space to tenants under various lease
terms.  The leases are accounted for as operating leases in accordance with SFAS
No. 13,  "Accounting  for  Leases".  Some of the leases  contain  stated  rental
increases during their term. For leases with fixed rental  increases,  rents are
recognized on a straight-line  basis over the terms of the leases. For all other
leases, minimum rents are recognized over the terms of the leases.

Investment in Master Loan to Affiliates and Interest Income Recognition

The  investment  in the Master Loan is evaluated for  impairment  based upon the
fair value of the  collateral  properties as the collateral is the sole basis of
repayment of the loan. The fair value of the remaining collateral  properties is
based on the fair  market  value of  those  properties.  If the fair  value of a
collateral property increases or decreases for other than temporary  conditions,
then the allowance on the Master Loan is adjusted appropriately.

The  investment in the Master Loan is  considered to be impaired  under SFAS No.
114, "Accounting by Creditors for Impairment of a Loan". Due to this impairment,
interest income is recognized on the cash basis of accounting.

Item 7a.    Market Risk Factors

The  Partnership is exposed to market risks  associated  with its Master Loan to
Affiliate  ("Loan").  Receipts  (interest income) on the Loan are based upon the
operations  and  cash  flow  of  the  underlying   investment   properties  that
collateralize the Loan. Both the income and expenses of operating the investment
properties are subject to factors outside of the Partnership's  control, such as
an oversupply of similar properties  resulting from  overbuilding,  increases in
unemployment,  population  shifts,  reduced  availability of permanent  mortgage
financing,  changes in zoning laws or changes in the patterns or needs of users.
The  investment  properties  are also  susceptible to the impact of economic and
other  conditions  outside of the  control of the  Partnership  as well as being
affected  by current  trends in the market  area  which  they  operate.  In this
regard, the General Partner of the Partnership  closely monitors the performance
of the properties  collateralizing  the loans. Based upon the fact that the loan
is considered impaired under Statement of Financial Accounting Standard No. 114,
"Accounting by Creditors for Impairment of a Loan",  interest rate  fluctuations
do not impact the  recognition  of income,  as income is only  recognized to the
extent  of  cash  flow.  Therefore,  market  risk  factors  do  not  impact  the
Partnership's  results of  operations  as it relates to the Loan.  See "Item 8 -
Financial Statements and Supplementary Data - Note C" for further information.

The  Partnership  is exposed to market  risks from  adverse  changes in interest
rates. In this regard, changes in U.S. interest rates affect the interest earned
on the  Partnership's  cash and cash equivalents as well as interest paid on its
indebtedness.  As a policy,  the  Partnership  does not engage in speculative or
leveraged transactions,  nor does it hold or issue financial instruments for its
borrowing activities used to maintain liquidity and fund business operations. To
mitigate the impact of  fluctuations  in U.S.  interest  rates,  the Partnership
maintains  its debt as fixed rate in nature by borrowing  on a long-term  basis.
Based on interest  rates at December  31,  2002,  a 100 basis point  increase or
decrease in market interest rates would impact Partnership income  approximately
$513,000.

The following table  summarizes the  Partnership's  debt obligations at December
31, 2002.  The interest rates  represent the  weighted-average  rates.  The fair
value of the debt  obligations  approximates its carrying amount at December 31,
2001.

                       Principal Amount by Expected Maturity

                                              Fixed Rate Debt
                           Long-term Average Interest
                              Debt               Rate 7.10%
                                               (in thousands)
                              2003                $ 1,043
                              2004                  1,119
                              2005                  5,106
                              2006                  1,211
                              2007                  1,305
                           Thereafter              41,477
                              Total               $51,261


Item 8.     Financial Statements and Supplementary Data


CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES

LIST OF FINANCIAL STATEMENTS


      Report of Ernst & Young LLP, Independent Auditors

      Consolidated Balance Sheets as of December 31, 2002 and 2001

      Consolidated  Statements of Operations for the Years ended December 31,
         2002, 2001 and 2000

      Consolidated  Statements of Changes in Partners' (Deficit) Capital for the
      Years ended December 31, 2002, 2001 and 2000

      Consolidated  Statements  of Cash Flows for the Years ended  December  31,
      2002, 2001 and 2000

      Notes to Consolidated Financial Statements

                     Report of Ernst & Young LLP, Independent Auditors



The Partners
Consolidated Capital Institutional Properties

We have audited the  accompanying  consolidated  balance sheets of  Consolidated
Capital  Institutional  Properties  as of December  31,  2002 and 2001,  and the
related  consolidated  statements of operations,  changes in partners' (deficit)
capital, and cash flows for each of the three years in the period ended December
31, 2002. These financial statements are the responsibility of the Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable  assurance about whether the 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 the  Partnership's  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 financial  statements  referred to above present fairly, in
all material  respects,  the  consolidated  financial  position of  Consolidated
Capital  Institutional  Properties  at  December  31,  2002  and  2001,  and the
consolidated  results of its operations and its 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.


                                                           /s/ ERNST & YOUNG LLP



Greenville, South Carolina
March 31, 2003

                  CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES

                           CONSOLIDATED BALANCE SHEETS
                        (in thousands, except unit data)





                                                                  December 31,
                                                                2002          2001
Assets
                                                                       
   Cash and cash equivalents                                  $ 3,175        $ 922
   Receivables and deposits                                        493           488
   Restricted escrows                                            1,114           392
   Other assets                                                    592           604
   Investment in affiliated partnerships (Note I)                  894            --

   Investment in Master Loan to affiliate (Note C)              14,144        26,430
   Investment properties (Notes D and G):
      Land                                                      14,272         3,564
      Buildings and related personal property                   67,805        39,658
                                                                82,077        43,222
      Less accumulated depreciation                            (19,158)      (15,969)
                                                                62,919        27,253
                                                              $ 83,331      $ 56,089
Liabilities and Partners' Capital
Liabilities
   Accounts payable                                            $ 176         $ 126
   Tenant security deposit liabilities                             689           566
   Accrued property taxes                                          326            --
   Other liabilities                                             1,408           603
   Mortgage notes payable (Note D)                              52,649        26,457
                                                                55,248        27,752
Partners' Capital
   General partner                                                 125           123
   Limited partners (199,043.2 units issued and
      outstanding)                                              27,958        28,214
                                                                28,083        28,337


                                                              $ 83,331      $ 56,089

          See Accompanying Notes to Consolidated Financial Statements



                  CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES

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




                                                          Years Ended December 31,
                                                      2002         2001          2000
Revenues:
                                                                    
   Rental income                                   $ 13,232    $ 11,305      $ 10,826
   Interest income on investment in Master
    Loan to affiliate (Note C)                          386       3,280         2,000
   Reduction of provision for impairment
      loss (Note C)                                      --       3,176        14,241
   Interest income                                       12          78           397
   Other income                                       1,016         821           760
   Property tax refund                                   --          --           210
      Total revenues                                 14,646      18,660        28,434

Expenses:
   Operating                                          5,649       5,168         4,570
   General and administrative                           836         720           711
   Depreciation                                       3,189       2,980         3,036
   Interest                                           2,482       1,889         1,909
   Property taxes                                     1,003         825           597

      Total expenses                                 13,159      11,582        10,823

Income from continuing operations                     1,487       7,078        17,611
Gain on foreclosure of real estate (Note C)           1,831          --            --

Net income (Note B)                                $  3,318    $  7,078      $ 17,611

Net income allocated to general partner (1%)       $     33    $     71      $    176

Net income allocated to limited partners (99%)        3,285       7,007        17,435

                                                   $  3,318    $  7,078      $ 17,611

Per limited partnership unit:
Income from continuing operations                  $   7.39    $  35.20      $  87.59
Gain on foreclosure of real estate                     9.11          --            --

Net income per limited partnership unit            $  16.50    $  35.20      $  87.59

Distributions per limited partnership unit         $  17.79    $  78.83      $ 240.55

          See Accompanying Notes to Consolidated Financial Statements




                  CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES

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





                                     Limited
                                       Partnership    General     Limited
                                          Units       Partner    Partners     Total

                                                                
Original capital contributions         200,342.0     $     1    $200,342    $200,343

Partners' (deficit) capital at
   December 31, 1999                   199,045.2     $   (58)   $ 67,343    $ 67,285

Distributions to partners                     --          --     (47,880)    (47,880)

Net income for the year
   ended December 31, 2000                    --         176      17,435      17,611

Partners' capital
   at December 31, 2000                199,045.2         118      36,898      37,016

Distributions to partners                     --         (66)    (15,691)    (15,757)

Net income for the year ended
   December 31, 2001                          --          71       7,007       7,078

Partners' capital at
   December 31, 2001                   199,045.2         123      28,214      28,337

Abandonment of limited partnership
 units (Note J)                             (2.0)         --          --          --

Distributions to partners                     --         (31)     (3,541)     (3,572)

Net income for the year ended
   December 31, 2002                          --          33       3,285       3,318

Partners' capital at
   December 31, 2002                   199,043.2     $   125    $ 27,958    $ 28,083

          See Accompanying Notes to Consolidated Financial Statements




                  CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (in thousands)




                                                             Years Ended December 31,
                                                            2002       2001       2000
Cash flows from operating activities:
                                                                      
Net income                                                $  3,318   $  7,078  $ 17,611
Adjustments to reconcile net income
 to net cash provided by operating activities:
    Gain on foreclosure of real estate                      (1,831)        --        --
    Depreciation                                             3,189      2,980     3,036
    Amortization of loan costs, lease commissions and
     mortgage premiums                                          43        316       133
    Reduction of provision for impairment loss                  --     (3,176)  (14,241)
    Change in accounts:
         Receivables and deposits                                6        518       192
         Other assets                                          (24)        78       (22)
         Accounts payable                                       50        (63)       81
         Tenant security deposit liabilities                    (5)      (109)      101
         Accrued property taxes                                 88         --        --
         Other liabilities                                     593       (138)      114
Net cash provided by operating activities                    5,427      7,484     7,005

Cash flows from investing activities:
    Property improvements and replacements                    (582)      (398)   (1,647)
    Lease commissions paid                                      --         --       (74)
    Net (deposits to) receipts from restricted escrows        (205)        61       147
    Principal receipts on Master Loan                        1,719      7,801    33,634
    Distributions from affiliated partnerships                  24         --        --
Net cash provided by investing activities                      956      7,464    32,060

Cash flows from financing activities:
    Loan costs paid                                             --         --       (12)
    Distributions to partners                               (3,572)   (15,757)  (47,880)
    Payments on mortgage notes payable                        (558)      (305)     (312)
Net cash used in financing activities                       (4,130)   (16,062)  (48,204)

Net increase (decrease) in cash and cash
    equivalents                                              2,253     (1,114)   (9,139)
Cash and cash equivalents at beginning of year                 922      2,036    11,175

Cash and cash equivalents at end of year                  $  3,175   $    922  $  2,036

Supplemental disclosure of cash flow information:
     Cash paid for interest                               $  2,467   $  1,702  $  1,992
Supplemental disclosure of non-cash transactions:
     Property improvements and replacements
      capitalized as part of a settlement with a
      tenant that vacated its space                       $     --   $    498  $     --

          See Accompanying Notes to Consolidated Financial Statements



                  CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES
                      STATEMENTS OF CASH FLOWS (continued)
                                 (in thousands)


SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES

Foreclosure

During the year ended  December 31, 2002,  Silverado,  The Knolls,  Indian Creek
Village,  and  Tates  Creek  Village  Apartments  were  foreclosed  upon  by the
Partnership.  In  connection  with  the  foreclosure  on these  properties,  the
following accounts were adjusted by the non-cash amounts noted below:


                                                            2002

                  Receivables and deposits               $    (66)
                  Investment in Master Loan
                    to affiliates                          10,567
                  Restricted escrows                         (517)
                  Other assets                                 11
                  Investment properties                   (38,273)
                  Investments in affiliated
                    partnerships                             (918)
                  Tenant security deposit
                     liabilities                              128
                  Accrued property taxes                      238
                  Other liabilities                           212
                  Mortgage notes payable                   26,787
                  Gain on foreclosure of
                    real estate                          $ (1,831)

          See Accompanying Notes to Consolidated Financial Statements


                  CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                December 31, 2002


Note A - Organization and Significant Accounting Policies

Organization:  Consolidated Capital Institutional  Properties (the "Partnership"
or  "Registrant"),  a California  Limited  Partnership,  was formed on April 28,
1981, to lend funds through nonrecourse notes with participation  interests (the
"Master Loan").  The loans were made to, and the real properties that secure the
Master Loan were purchased and owned by,  Consolidated  Capital Equity Partners,
("EP"), a California  general  partnership in which certain of the partners were
former  shareholders  and former  management of  Consolidated  Capital  Equities
Corporation ("CCEC"), the former Corporate General Partner. Through December 31,
2002, the Partnership had advanced a total of  approximately  $180,500,000 to EP
and its successor under the Master Loan. The Partnership Agreement provides that
the Partnership is to terminate on December 31, 2011 unless  terminated prior to
such date.

Upon the Partnership's formation in 1981, CCEC, a Colorado corporation,  was the
Corporate General Partner. In December 1988, CCEC filed for reorganization under
Chapter 11 of the United  States  Bankruptcy  Code.  In 1990,  as part of CCEC's
reorganization plan, ConCap Equities, Inc., a Delaware corporation (the "General
Partner" or "CEI"), acquired CCEC's General Partner interests in the Partnership
and  in  15  other  affiliated  public  Limited  Partnerships  (the  "Affiliated
Partnerships")  and  replaced  CCEC  as  Managing  General  Partner  in  all  16
partnerships.

During 1989, EP defaulted on certain  interest  payments that were due under the
Master  Loan.  Before the  Partnership  could  exercise  its  remedies  for such
defaults,  EP filed for  bankruptcy  protection  in a Chapter 11  reorganization
proceeding.  On October 18, 1990, the Bankruptcy  Court approved EP's consensual
plan of  reorganization  (the "Plan").  In November 1990, EP and the Partnership
consummated a closing under the Plan pursuant to which,  among other things, the
Partnership  and EP executed an amended and restated  loan  agreement  (the "New
Master Loan Agreement").  EP was converted from a California General Partnership
to a California Limited Partnership,  Consolidated Capital Equity Partners, L.P.
("CCEP"),  and CCEP renewed the deeds of trust on all the  collateral  to secure
the New Master Loan Agreement.

ConCap Holdings,  Inc. ("CHI"), a Texas corporation and wholly-owned  subsidiary
of CEI, is the sole general partner of CCEP and an affiliate of the Partnership.
The  General  Partners  of EP  became  Limited  Partners  in CCEP.  CHI has full
discretion with respect to conducting CCEP's business, including managing CCEP's
properties  and  initiating  and  approving   capital   expenditures  and  asset
dispositions  and  refinancings.  All of CEI's  outstanding  stock  was owned by
Insignia  Properties Trust ("IPT").  Effective February 26, 1999, IPT was merged
into Apartment Investment and Management Company ("AIMCO").  Hence, CEI is now a
wholly-owned subsidiary of AIMCO, a publicly held real estate investment trust.

The General  Partner began the process of foreclosure or executing deeds in lieu
of  foreclosure  during the third quarter of 2002 on all the properties in CCEP.
During August 2002, the General Partner executed deeds in lieu of foreclosure on
four of the active  properties of CCEP. In addition,  one of the properties held
by CCEP was sold in December 2002. The foreclosure process on the remaining four
properties  held by CCEP is ongoing.  As the deeds were  executed,  title in the
properties previously owned by CCEP were transferred to the Partnership, subject
to the existing liens on such properties, including the first mortgage loans. As
a result,  the  Partnership  assumed  responsibility  for the operations of such
properties.

The  Partnership  now owns and operates five  apartment  properties  one each in
North  Carolina,  Texas,  Colorado,  Kansas and  Kentucky  and one  multiple-use
complex in Pennsylvania.  Also, the Partnership is the holder of the Master Loan
which is collateralized by the four remaining apartment properties of CCEP which
are located in Florida.

Principles of Consolidation: The Partnership's consolidated financial statements
include the accounts of CCIP Sterling, L.P., a Pennsylvania Limited Partnership,
Kennedy Boulevard  Associates II, L.P., Kennedy Boulevard  Associates III, L.P.,
Kennedy Boulevard Associates IV, L.P., and Kennedy Boulevard GP I ("KBGP-I"),  a
Pennsylvania  Partnership.   Each  of  the  entities  above  except  KBGP-I  are
Pennsylvania  limited  partnerships,  and the general  partners of each of these
affiliated limited and general  partnerships are limited liability  corporations
of which the Partnership is the sole member. Therefore, the Partnership controls
these  affiliated  limited  and  general  partnerships,   and  consolidation  is
required.  CCIP Sterling,  L.P.  holds title to The Sterling  Apartment Home and
Commerce Center ("the Sterling").  All  interpartnership  transactions have been
eliminated.

Use of Estimates:  The  preparation of financial  statements in conformity  with
accounting   principles   generally  accepted  in  the  United  States  requires
management to make estimates and assumptions that affect the amounts reported in
the financial  statements and  accompanying  notes.  Actual results could differ
from those estimates.

Reclassifications: Certain reclassifications have been made to the 2000 and 2001
information to conform to the 2002 presentation.

Allocation of Profits,  Gains, and Losses: The Agreement provides for net income
and net losses for both financial and tax reporting purposes to be allocated 99%
to the Limited Partners and 1% to the General Partner.

Net Income Per Limited Partnership Unit: Net income per Limited Partnership Unit
("Unit") is computed by dividing net income allocated to the Limited Partners by
the  number  of  Units  outstanding  at the  beginning  of the  year.  Per  Unit
information  has been computed based on 199,045.2  Units for 2002, 2001 and 2000
(see "Note J" for further information).

Cash and Cash Equivalents:  Cash and cash equivalents  includes cash on hand and
in banks.  At certain  times,  the amount of cash deposited at a bank may exceed
the limit on insured deposits.  Cash balances include  approximately  $3,220,000
and $840,000 at December 31, 2002 and 2001, respectively, that are maintained by
an  affiliated  management  company  on behalf of  affiliated  entities  in cash
concentration accounts.

Restricted   Escrows:  At  the  time  of  the  1995  refinancing  of  The  Loft,
approximately  $60,000 of the proceeds were designated for a Replacement Reserve
Fund for certain  capital  replacements at the property.  Additionally,  monthly
deposits are required pursuant to the mortgage  agreement.  At December 31, 2002
and 2001, the balance in this reserve was  approximately  $211,000 and $121,000,
respectively.

In  conjunction  with the  financing  of the  Sterling in  September  1998,  the
Partnership is required to make monthly deposits of  approximately  $17,000 with
the  mortgage  company to  establish  and  maintain a  Replacement  Reserve Fund
designated for repairs and replacements at the property. As of December 31, 2002
and 2001, the balance was approximately $384,000 and $271,000, respectively.

At the time of  refinancing  of The  Knolls  in  September  2000,  approximately
$505,000 of the proceeds  were  designated  for a  replacement  reserve fund for
certain  capital  replacements.  At  December  31,  2002,  the  balance  in  the
replacement reserve fund was approximately $519,000.

Depreciation:  Depreciation  is  provided by the  straight-line  method over the
estimated lives of the apartment and commercial  properties and related personal
property.  For Federal income tax purposes, the accelerated cost recovery method
is used for real property  over 18 years for additions  after March 15, 1984 and
before May 9, 1985,  and 19 years for  additions  after May 8, 1985,  and before
January 1, 1987. As a result of the Tax Reform Act of 1986, for additions  after
December 31, 1986,  the modified  accelerated  cost recovery  method is used for
depreciation  of (1) real property  additions over 27 1/2 years and (2) personal
property additions over 5 years.

Loan  Costs:  As of  December  31,  2002 and 2001,  loan costs of  approximately
$569,000 for both years less accumulated  amortization of approximately $275,000
and  $219,000  respectively,  are  included  in other  assets.  These  costs are
amortized  on a  straight-line  method over the life of the loans.  Amortization
expense was  approximately  $45,000 and $47,000 for the years ended December 31,
2002 and 2001, respectively,  and is included in interest expense.  Amortization
expense is expected to be $57,000  for each of the years 2003  through  2005 and
$45,000 for each of the years 2006 and 2007.

Tenant  Security  Deposits:  The  Partnership  requires  security  deposits from
lessees  for the  duration  of the  lease  and such  deposits  are  included  in
receivables  and  deposits.  Deposits  are  refunded  when the  tenant  vacates,
provided the tenant has not damaged its space and is current on rental payments.

Investment Properties: Investment properties consist of five apartment complexes
and one multiple-use building consisting of apartment units and commercial space
and are  stated  at cost.  Acquisition  fees are  capitalized  as a cost of real
estate. Expenditures in excess of $250 that maintain an existing asset which has
a useful  life of more  than one year are  capitalized  as  capital  replacement
expenditures  and  depreciated  over the  estimated  useful  life of the  asset.
Expenditures for ordinary repairs,  maintenance and apartment turnover costs are
expensed as incurred.  In  accordance  with  Statement  of Financial  Accounting
Standards  ("SFAS")  No.  144,  "Accounting  for the  Impairment  or Disposal of
Long-Lived  Assets",  the Partnership  records  impairment  losses on long-lived
assets used in operations when events and circumstances indicate that the assets
might be impaired and the  undiscounted  cash flows estimated to be generated by
those  assets  are less than the  carrying  amounts  of those  assets.  Costs of
properties  that have  been  permanently  impaired  have  been  written  down to
appraised  value.  No  adjustments  for impairment of value were recorded in the
years ended December 31, 2002, 2001 or 2000.

During 2001, AIMCO, an affiliate of the General Partner,  commissioned a project
to study process  improvement ideas to reduce operating costs. The result of the
study led to a re-engineering of business processes and eventual redeployment of
personnel and related capital spending. The implementation of these plans during
2002, accounted for as a change in accounting estimate, resulted in a refinement
of the  Partnership's  process  for  capitalizing  certain  direct and  indirect
project costs (principally  payroll related costs) and increased  capitalization
of such costs by approximately $109,000 in 2002 compared to 2001.

Fair Value of Financial Instruments: SFAS No. 107, "Disclosures about Fair Value
of  Financial  Instruments",  as amended  by SFAS No.  119,  "Disclosures  about
Derivative  Financial  Instruments  and Fair  Value of  Financial  Instruments",
requires  disclosure  of fair value  information  about  financial  instruments,
whether or not recognized in the balance  sheet,  for which it is practicable to
estimate  fair  value.  Fair value is defined in the SFAS as the amount at which
the  instruments  could be exchanged in a current  transaction  between  willing
parties,  other than in a forced or liquidation  sale. The Partnership  believes
that the carrying  amounts of its  financial  instruments  (except for long term
debt)  approximate  their fair  values due to the short term  maturity  of these
instruments.  The Partnership believes that the carrying amount of its long-term
debt  approximates  its fair market value due to the fact that the  mortgages on
the foreclosed  properties  were recorded at their fair market value at the date
of  foreclosure.  The carrying  amount of the  Partnership's  investment  in the
Master  Loan  approximates  fair  value due to the fact that it has been  valued
based on the fair value of the underlying collateral.

Investment  in Master Loan:  In  accordance  with SFAS No. 114,  "Accounting  by
Creditors for Impairment of a Loan",  the allowance for credit losses related to
loans that are  identified  for  evaluation in  accordance  with SFAS No. 114 is
based on discounted cash flows using the loan's initial effective  interest rate
or the fair value of the collateral for certain collateral dependent loans.

Leases: The Partnership leases certain commercial space to tenants under various
lease terms. The leases are accounted for as operating leases in accordance with
SFAS No. 13,  "Accounting for Leases".  Some of the leases contain stated rental
increases during their term. For leases with fixed rental  increases,  rents are
recognized on a straight-line  basis over the terms of the leases. For all other
leases,  minimum  rents  are  recognized  over the terms of the  leases  and the
Partnership fully reserves all balances outstanding over thirty days.

The Partnership generally leases apartment units for twelve-month terms or less.
The Partnership recognizes income as earned on its leases and fully reserves all
balances outstanding over thirty days. In addition, the General Partner's policy
is to offer rental concessions during particularly slow months or in response to
heavy  competition  from other similar  complexes in the area.  Concessions  are
charged against rental income as incurred.

Lease  Commissions:  Lease  commissions  are  capitalized  and included in other
assets and are being amortized using the  straight-line  method over the life of
the  applicable  lease.  At both December 31, 2002 and 2001,  capitalized  lease
commissions  totaled  approximately  $231,000 with  accumulated  amortization of
approximately  $175,000  and  $151,000,  respectively.  During  the  year  ended
December 31, 2001, lease  commissions of approximately  $313,000 and accumulated
amortization of approximately $122,000 was written off as a result of the tenant
to which these lease commissions related vacating its space.

Segment Reporting: SFAS No. 131, "Disclosure about Segments of an Enterprise and
Related  Information"  established  standards  for the way that public  business
enterprises  report  information  about operating  segments in annual  financial
statements and requires that those enterprises report selected information about
operating segments in interim financial reports.  It also established  standards
for related disclosures about products and services, geographic areas, and major
customers. See "Note K" for detailed disclosure of the Partnership's segments.

Advertising:  The  Partnership  expenses the costs of  advertising  as incurred.
Advertising costs of approximately  $113,000,  $67,000 and $71,000 for the years
ended December 31, 2002, 2001 and 2000, respectively,  were charged to operating
expense.

Recent  Accounting  Pronouncements:  In August 2001,  the  Financial  Accounting
Standards Board issued SFAS No. 144,  "Accounting for the Impairment or Disposal
of Long-Lived  Assets".  SFAS No. 144 provides accounting guidance for financial
accounting  and reporting for the  impairment or disposal of long-lived  assets.
SFAS No.  144  supersedes  SFAS  No.  121,  "Accounting  for the  Impairment  of
Long-Lived  Assets and for Long-Lived Assets to be Disposed Of." SFAS No. 144 is
effective for fiscal years  beginning  after December 15, 2001. The  Partnership
adopted  SFAS No. 144  effective  January 1, 2002.  Its  adoption did not have a
material  effect on the  financial  position  or  results of  operations  of the
Partnership.

In April 2002,  the Financial  Accounting  Standards  Board issued SFAS No. 145,
"Recission of FASB Statements No. 4, 44 and 64." SFAS No. 4 "Reporting Gains and
Losses from  Extinguishment  of Debt,"  required  that all gains and losses from
extinguishment  of  debt  be  aggregated  and,  if  material,  classified  as an
extraordinary item. SFAS No. 145 rescinds SFAS No. 4, and accordingly, gains and
losses from extinguishment of debt should only be classified as extraordinary if
they are  unusual in nature and occur  infrequently.  Neither of these  criteria
applies to this  Partnership.  SFAS 145 is effective for fiscal years  beginning
after May 15, 2002. The  Partnership  adopted SFAS 145 effective  April 1, 2002.
Its adoption did not have a material effect on the financial position or results
of operations of the Partnership.

Note B - Income Taxes

The Partnership has received a ruling from the Internal  Revenue Service that it
will  be  classified  as  a  partnership   for  Federal   income  tax  purposes.
Accordingly, no provision for income taxes is made in the consolidated financial
statements of the  Partnership.  Taxable  income or loss of the  Partnership  is
reported in the income tax returns of its partners.

The  following is a  reconciliation  of reported net income and Federal  taxable
income (in thousands, except per unit data):




                                                    2002          2001        2000

                                                                    
Net income as reported                          $ 3,318         $ 7,078      $17,611
Add (deduct):
   Deferred revenue and other liabilities         1,150            (157)         195
   Depreciation differences                         460             398          499
   Accrued expenses                                  (9)              7           21
   Interest income                                3,207          (3,280)      (2,000)
   Differences in valuation allowances               --          (3,176)     (14,241)
   Gain on foreclosure                           (3,243)             --           --
   Other                                          1,371              90           14

Federal taxable income                          $ 6,254         $   960      $ 2,099
Federal taxable income per
     limited partnership unit                   $ 31.10         $  4.78      $ 10.44


The following is reconciliation  between the Partnership's  reported amounts and
Federal tax basis of net assets and liabilities (in thousands):

                                                December 31,
                                           2002              2001

Net assets as reported                  $ 28,083          $28,337
Land and buildings                           930              433
Accumulated depreciation                   3,763            3,303
Interest receivable                           --               44
Syndication fees                          22,500           22,500
Other                                      2,255              233
Net assets - Federal tax basis          $ 57,531          $54,850

Note C - Net Investment in Master Loan

The Partnership was initially  formed for the benefit of its limited partners to
lend funds to  Consolidated  Capital  Equity  Partners  ("CCEP"),  a  California
general partnership.  The general partner of CCEP is an affiliate of the General
Partner. The Partnership loaned funds to CCEP subject to a nonrecourse note with
a participation interest (the "Master Loan"). At December 31, 2002, the recorded
investment  in the Master  Loan was  considered  to be  impaired  under SFAS 114
"Accounting by Creditors for Impairment of a Loan". The Partnership measures the
impairment of the loan based upon the fair value of the collateral, as repayment
of the loan is expected to be provided solely by the  collateral.  For the years
ended December 31, 2002, 2001 and 2000, the Partnership  recorded  approximately
$386,000, $3,280,000, and $2,000,000 respectively, of interest income based upon
"Excess  Cash Flow" (as defined in the terms of the New Master  Loan  Agreement)
generated by CCEP and paid to the Partnership.

The fair value of all of the  collateral  properties  which on a combined  basis
secure the Master Loan,  was  determined  using the net operating  income of the
collateral  properties  capitalized at a rate deemed  reasonable for the type of
property adjusted for market conditions,  the physical condition of the property
and other factors,  or by obtaining an appraisal by an independent  third party.
This methodology has not changed from that used in prior calculations  performed
by the  General  Partner  in  determining  the  fair  value  of  the  collateral
properties.  The  approximate  reduction of $3,176,000  and  $14,241,000  in the
provision for  impairment  loss  recognized  during the years ended December 31,
2001 and 2000, respectively,  is attributed to an increase in the net realizable
value of the collateral properties and to the payment of principal on the Master
Loan  from  the  sales  proceeds  of  Magnolia  Trace  in  January  2001 and the
refinancing  and financing  proceeds of the collateral  properties  during 2000.
There was no change in the provision for  impairment  loss during the year ended
December 31, 2002. The General Partner  evaluates the net realizable  value on a
semi-annual basis or as circumstances dictate that it should be analyzed.

The  Master  Loan  matured  in  November  2000.  The  General  Partner  had been
negotiating with CCEP with respect to its options which included  foreclosing on
the properties which collateralize the Master Loan or extending the terms of the
loan.  The General  Partner  has decided to  foreclose  on the  properties  that
collateralize  the  Master  Loan.  The  General  Partner  began the  process  of
foreclosure or executing  deeds in lieu of foreclosure  during the third quarter
of 2002 on all the properties in CCEP.  During August 2002, the General  Partner
executed deeds in lieu of foreclosure on four of the active  properties of CCEP.
In addition,  one of the properties  held by CCEP was sold in December 2002. The
foreclosure process on the remaining four properties held by CCEP is ongoing. As
the deeds were executed,  title in the properties  previously owned by CCEP were
transferred  to  the  Partnership,   subject  to  the  existing  liens  on  such
properties,  including the first mortgage  loans.  As a result,  the Partnership
assumed  responsibility  for the operations of such  properties.  The results of
operations  of the  foreclosed  properties  are  reflected  in the  Statement of
Operations for the period September 1, 2002 through December 31, 2002.

The following table sets forth the Partnership's  non-cash activities during the
year ended December 31, 2002 with respect to the  foreclosure of Silverado,  The
Knolls, Indian Creek Village and Tates Creek Village Apartments:

             Investment properties (a)                    $  38,273
             Investments in affiliated partnerships (b)         918
             Mortgage notes payable (c)                     (26,787)
             Master loan, net of allowance (d)              (10,567)
             Other assets received, net of
               other liabilities assumed                         (6)

             Gain on foreclosure of real estate           $   1,831

(a)   Amount  represents  the estimated fair value of the  properties.  The fair
      value was  determined  by  appraisals  obtained in September  2000 from an
      independent  third party which have been updated by  management  using the
      net  operating  income  of  all of the  applicable  collateral  properties
      capitalized  at a rate  deemed  reasonable  for the type of  property  and
      adjusted by management for current market  conditions,  physical condition
      of each respective property, and other factors.

(b)   See "Note J".

(c)   Amount  represents  the present  value on the  mortgages  encumbering  the
      investment  properties acquired through foreclosure,  discounted at a rate
      currently available to the Partnership.

(d)   Amount  represents the amount of the Master Loan  associated with the four
      properties acquired through foreclosure.

Proforma  results of  operations  assuming the  foreclosure  of  Silverado,  The
Knolls,  Indian Creek Village,  and Tates Creek Village  Apartments  occurred at
January 1, 2001 are as follows (in thousands, except per unit data):

                            Years Ended December 31,
                                  2002            2001

Revenues                        $19,074          $26,309
Net income                        3,213            8,174

Net income per limited
  partnership unit              $ 15.98          $ 40.66

The  principal  balance  of the  Master  Loan  due to  the  Partnership  totaled
approximately  $14,144,000  and  $26,430,000  at  December  31,  2002 and  2001,
respectively.  This amount  represents  the fair market  value of the  remaining
properties  held by  CCEP,  less  the net  liabilities  owed by the  properties.
Interest,  calculated on the accrual basis,  due to the Partnership  pursuant to
the  terms of the  Master  Loan  Agreement,  but not  recognized  in the  income
statements due to the impairment of the loan,  totaled  approximately  $462,000,
$38,763,000  and  $39,287,000  for the years ended  December 31, 2002,  2001 and
2000, respectively.  Interest income is recognized on the cash basis as required
by SFAS 114.  At  December  31,  2002 and  2001,  such  cumulative  unrecognized
interest  totaling  approximately  $462,000 and $345,024,000 was not included in
the  balance of the  investment  in Master  Loan.  The  cumulative  unrecognized
interest owed on the Master Loan of  approximately  $376,239,000 was forgiven by
the  Partnership  during the third  quarter of 2002.  The  remaining  collateral
properties are encumbered by first mortgages totaling approximately  $23,290,000
as of December  31,  2002,  which are senior to the Master  Loan.  This has been
taken into consideration in determining the fair value of the Master Loan.

During the years ended December 31, 2002, 2001 and 2000, the Partnership made no
advances to CCEP on Master Loan.

During  the years  ended  December  31,  2002,  2001 and 2000,  the  Partnership
received  approximately  $1,719,000,  $7,801,000 and  $33,634,000,  as principal
payments  on the Master  Loan from CCEP.  Approximately  $88,000,  $357,000  and
$238,000 was received during the years ended December 31, 2002,  2001, and 2000,
respectively,   representing  cash  received  from   distributions   from  three
affiliated  partnerships which are required to be transferred to the Partnership
per the Master Loan Agreement.  In addition,  during the year ended December 31,
2002,  approximately  $1,631,000 was received representing net proceeds from the
sale of Society Park in December 2002.  During the year ended December 31, 2001,
approximately $6,019,000 was received representing net proceeds from the sale of
Magnolia Trace and approximately $1,425,000 was received representing additional
proceeds  received for the refinancing of the mortgages  encumbering nine of the
investment properties in 2000. For 2000,  approximately  $4,526,000 was received
representing  net  proceeds  from  the  sale  of  Shirewood  and   approximately
$28,870,000 was received  representing net proceeds received for the refinancing
of the mortgages encumbering nine of the investment properties.

The investment in the Master Loan consists of the following:

                                                        As of December 31,
                                                         2002          2001
                                                          (in thousands)

         Master Loan funds advanced
             at beginning of year                   $ 26,430       $ 34,231
         Foreclosure write off                       (10,567)            --
         Principal receipts on Master Loan            (1,719)        (7,801)

         Master Loan funds advanced
             at end of year                         $ 14,144       $ 26,430

The allowance for impairment loss on Master Loan consists of the following:

                                                     As of December 31,
                                                       2002        2001
                                                       (in thousands)

Allowance for impairment loss on Master
  Loan, beginning of year                          $     --     $  3,176
Reduction of impairment loss                             --       (3,176)

Allowance for impairment loss on Master
  Loan, end of year                                $     --     $     --

Note D - Mortgage Notes Payable

The principal terms of mortgage notes payable are as follows:




                          Principal        Monthly                       Principal
                         Balance At
                        December 31,
                                           Payment                        Balance
                                         (including   Interest Maturity    Due At
      Property          2002     2001     interest)     Rate     Date     Maturity
                       (in thousands)        (in                            (in
                                         thousands) thousands)
The Loft Apartments
                                                     
  1st mortgage        $ 4,139  $ 4,210      $ 30        6.95%  12/01/05   $ 3,903
The          Sterling
Apartment
  Homes and Commerce
  Center
  1st mortgage          21,972   22,247      149        6.77%  10/01/08    19,975
Silverado
  1st mortgage           3,360       --       29        7.87%  11/01/10     2,434
The Knolls
  1st mortgage           9,433       --       81        7.78%  03/01/10     7,105
Indian Creek Village
  1st mortgage           8,340       --       72        7.83%  01/01/10     6,351
Tates Creek Village
  1st mortgage           4,017       --       35        7.78%  04/01/10     3,017
                      $ 51,261 $ 26,457     $396                         $ 42,785
Unamortized mortgage
 loan premium           1,388
                      $52,649


The mortgage  notes  payable are  non-recourse  and are secured by pledge of the
respective properties and by pledge of revenues from the respective  properties.
The notes require prepayment penalties if repaid prior to maturity. Further, the
properties may not be sold subject to existing indebtedness.

The carrying amount of the  Partnership's  long term debt  approximates its fair
value due to the fact  that the  mortgages  on the  foreclosed  properties  were
recorded  at their fair value.  The fair value of the  mortgages  as  determined
based upon the  incremental  borrowing rate available to the  Partnership at the
time of foreclosure.  The mortgage premium of approximately $1,388,000 is net of
accumulated  amortization of approximately  $37,000.  The mortgage  premiums are
being amortized over the remaining lives of the loans.  Amortization  expense is
included in interest expense on the consolidated statements of operations.

Scheduled  principal  payments  of the  mortgage  notes  payable  subsequent  to
December 31, 2002, are as follows (in thousands):

                                  Mortgage Note

                      2003                   $ 1,043
                      2004                     1,119
                      2005                     5,106
                      2006                     1,211
                      2007                     1,305
                   Thereafter                 41,477
                     Total                   $51,261

Note E - Related Party Transactions

The Partnership has no employees and is dependent on the General Partner and its
affiliates for the management and administration of all Partnership  activities.
The Partnership  Agreement  provides for (i) certain  payments to affiliates for
services and (ii)  reimbursement of certain  expenses  incurred by affiliates on
behalf of the Partnership.

Affiliates of the General  Partner are entitled to receive 5% of gross  receipts
from all of the  Partnership's  properties  for  providing  property  management
services.  The  Partnership  paid to  such  affiliates  approximately  $695,000,
$640,000  and $580,000  for the years ended  December  31, 2002,  2001 and 2000,
respectively, which is included in operating expense.

An  affiliate  of the General  Partner  received  reimbursement  of  accountable
administrative  expenses  amounting  to  approximately  $454,000,  $332,000  and
$510,000  for the years ended  December 31,  2002,  2001 and 2000,  respectively
which is included in general and administrative expenses.

Beginning in 2001, the  Partnership  began insuring its properties up to certain
limits through coverage provided by AIMCO which is generally  self-insured for a
portion of losses and  liabilities  related  to workers  compensation,  property
casualty and vehicle liability. The Partnership insures its properties above the
AIMCO  limits  through  insurance  policies  obtained  by  AIMCO  from  insurers
unaffiliated with the General Partner.  During the years ended December 31, 2002
and 2001, the Partnership paid AIMCO and its affiliates  approximately  $256,000
and  $60,000 for  insurance  coverage  and fees  associated  with policy  claims
administration.

In addition to its indirect  ownership of the general  partner  interests in the
Partnership,  AIMCO and its affiliates owned 129,682.6 limited partnership units
(the "Units") in the Partnership representing 65.15% of the outstanding Units at
December  31,  2002.  A number of these Units were  acquired  pursuant to tender
offers  made by  AIMCO  or its  affiliates.  It is  possible  that  AIMCO or its
affiliates will acquire additional units of limited partnership  interest in the
Partnership  in  exchange  for cash or a  combination  of cash and  units in the
operating  partnership  of AIMCO  either  through  private  purchases  or tender
offers. Under the Partnership  Agreement,  unitholders holding a majority of the
Units are  entitled to take action  with  respect to a variety of matters  which
would  include  voting on certain  amendments to the  Partnership  Agreement and
voting to remove the General Partner.  As a result of its ownership of 65.15% of
the outstanding  Units,  AIMCO is in a position to control all voting  decisions
with  respect to the  Registrant.  Although the General  Partner owes  fiduciary
duties to the limited partners of the Partnership, the General Partner also owes
fiduciary duties to AIMCO as its sole  stockholder.  As a result,  the duties of
the General Partner,  as managing  general  partner,  to the Partnership and its
limited  partners may come into conflict with the duties of the General  Partner
to AIMCO, as its sole stockholder.

Note F - Commitments

Until  October  17,  2000,  the  Partnership  was  required  by the  Partnership
Agreement to maintain  working capital  reserves for  contingencies  of not less
than 5% of Net Invested Capital, as defined in the Partnership Agreement. In the
event  expenditures were made from this reserve,  operating  revenues were to be
allocated  to such reserve to the extent  necessary  to maintain  the  foregoing
level.  On  September  16,  2000,  the  Partnership  sought  the vote of limited
partners to amend the Partnership Agreement to eliminate the requirement for the
Partnership to maintain  reserves equal to at least 5% of the limited  partner's
capital  contributions less distributions to limited partners and instead permit
the  General  Partner  to  determine  reasonable  reserve  requirements  of  the
Partnership. The vote was sought pursuant to a Consent Solicitation that expired
on October 16, 2000 at which time the  amendment  was approved by the  requisite
percent of limited partnership interests. Upon expiration of the consent period,
a total number of 140,565.90 units had voted of which 136,767.20 units had voted
in favor of the amendment, 2,805.70 voted against the amendment and 993.00 units
abstained.

Note G - Investment Properties and Accumulated Depreciation

Investment Properties                                Initial Cost
                                                    To Partnership
                                                    (in thousands)




                                                             Buildings           Cost
                                                            and Related      Capitalized
                                                              Personal      Subsequent to
        Description            Encumbrances       Land        Property       Acquisition
                              (in thousands)                                (in thousands)

                                                                 
The Loft Apartments             $ 4,139         $ 1,053       $ 4,147        $  2,379
The Sterling Apt Homes
 and Commerce Center             21,972           2,567        12,341          21,058
Silverado                         3,360             966         3,807              18
The Knolls                        9,433           4,318        10,682             173
Indian Creek Village              8,340           3,975         8,225              28
Tates Creek Village               4,017           1,449         4,851              39
Total                           $51,261         $14,328       $44,053        $ 23,695




                  Gross Amount At Which Carried
                      At December 31, 2002
                         (in thousands)



                           Buildings
                          And Related
                            Personal                Accumulated       Date      Depreciable
  Description     Land      Property     Total     Depreciation     Acquired    Life-Years
                                                  (in thousands)
                                                              
The Loft        $   997     $ 6,582    $  7,579       $ 4,258       11/19/90       5-30
The Sterling      2,567      33,399      35,966        14,578       12/01/95       5-30
Silverado           966       3,826       4,792            39       08/09/02       5-30
The Knolls        4,318      10,855      15,173           111       08/09/02       5-30
Indian Creek
 Village          3,975       8,253      12,228           110       08/09/02       5-30
Tates Creek
 Village          1,449       4,890       6,339            62       08/13/02       5-30
  Totals        $14,272     $67,805     $82,077       $19,158



Reconciliation of "investment properties and accumulated depreciation":

                                              Years Ended December 31,
                                                 2002          2001
                                                   (in thousands)
Real Estate
Balance, real estate at beginning of year       $43,222       $42,326
   Acquisition of properties through
    Foreclosure                                  38,273            --
    Property improvements and
      Replacements                                  582           896
Balance, real estate at end of year             $82,077       $43,222

Accumulated Depreciation
Balance at beginning of year                    $15,969       $12,989
    Additions charged to expense                  3,189         2,980
Balance at end of year                          $19,158       $15,969

The  aggregate  cost of the real  estate  for  Federal  income tax  purposes  at
December  31,  2002 and 2001,  is  approximately  $83,007,000  and  $43,655,000,
respectively.  Accumulated  depreciation  for  Federal  income tax  purposes  at
December  31,  2002  and 2001 is  approximately  $15,395,000,  and  $12,666,000,
respectively.

Note H - Commercial Leases

In December 2001, the  Partnership's  most significant  commercial tenant at The
Sterling  Commerce  Center  vacated  its space which  represented  30.58% of the
leaseable  commercial space. The Partnership filed a lawsuit against such tenant
seeking monetary  damages for unpaid rent,  including rent which had been abated
in favor of the tenant  completing  significant  improvements to its space.  The
Partnership   accepted  a  settlement   whereby  the  tenant  paid  $180,000  in
satisfaction  of all  unpaid  rent  amounts  due  and the  Partnership  accepted
possession of the
Note H - Commercial Leases (continued)

improvements  completed  by  the  tenant  which  were  valued  at  approximately
$498,000.  The  settlement  amount was paid in 2002.  Beginning  in 2002,  these
improvements are being depreciated over their remaining  estimated useful lives.
As a  result  of  the  tenant  vacating  the  space,  the  Partnership  expensed
approximately  $191,000 in unamortized lease commissions  during the year ending
December 31, 2001.

Rental  income  on  the  commercial   property   leases  is  recognized  on  the
straight-line  basis  over the life of the  applicable  leases.  Minimum  future
rental income for the commercial properties subject to noncancellable  operating
leases is as follows (in thousands):
                            Year Ending
                           December 31,
                               2003        $    646
                               2004             509
                               2005             334
                               2006             270
                               2007             138
                                            $ 1,897

There is no assurance  that this rental  income will  continue at the same level
when the current leases expire.

Note I - Investment in Affiliated Partnerships

The Partnership  assumed  investments in the following  affiliated  partnerships
during the year ended December 31, 2002.




                                                                        Investment
                                                      Ownership             At
Partnership                    Type of Ownership      Percentage    December 31, 2002

Consolidated Capital            Non-controlling
                                                                     
  Growth Fund                    General Partner        0.40%              $ 47
Consolidated Capital            Non-controlling
  Properties III                 General Partner        1.85%                 27
Consolidated Capital            Non-controlling
  Properties IV                  General Partner        1.85%                820

                                                                           $ 894

These  investments were assumed during the foreclosure of investment  properties
from  CCEP  (see  "Note  C") and  are  accounted  for on the  equity  method  of
accounting.   Subsequent  to  the  foreclosure,   the  Partnership   received  a
distribution of approximately $24,000 from one of the affiliated partnerships.

Note J - Abandonment of Limited Partnership Units

During the year ended December 31, 2002, the number of Limited Partnership Units
decreased  by 2  units  due to  limited  partners  abandoning  their  units.  In
abandoning  his  or  her  Limited   Partnership   Unit(s),   a  limited  partner
relinquishes all right, title, and interest in the partnership as of the date of
abandonment.  However,  the limited partner is allocated his or her share of net
income or loss for that year. The income or loss per Limited Partnership Unit in
the  accompanying  consolidated  statements of operations is calculated based on
the number of units outstanding at the beginning of the year. There were no such
abandonments in 2001 or 2000.

Note K - Subsequent Distribution

Subsequent  to December  31, 2002,  the  Partnership  distributed  approximately
$1,993,000  (approximately  $1,989,000 paid to the limited partners or $9.99 per
limited partnership unit).  Approximately $362,000  (approximately $359,000 paid
to the  limited  partners  or  $1.80  per  limited  partnership  unit)  was from
operations  and  approximately  $1,631,000  was  paid  to the  limited  partners
(approximately  $8.19 per  limited  partnership  unit) from the  receipt of sale
proceeds from CCEP upon the sale of Society Park Apartments.

Note L - Segment Reporting

Description  of the types of products  and  services  from which the  reportable
segment  derives its revenues:  The  Partnership  has two  reportable  segments:
residential  properties  and commercial  property.  The  Partnership's  property
segments consist of five apartment complexes one each in North Carolina,  Texas,
Colorado,  Kansas,  and Kentucky and one  multiple  use facility  consisting  of
apartment units and commercial  space in  Pennsylvania.  The  Partnership  rents
apartment units to tenants for terms that are typically less than twelve months.
The commercial property leases space to various medical offices,  career service
facilities, and retail shops at terms ranging from month to month to five years.

Measurement of segment profit and loss: The  Partnership  evaluates  performance
based on segment profit (loss) before  depreciation.  The accounting policies of
the  reportable  segments  are the same as those  described  in the  summary  of
significant accounting policies.

Factors  management used to identify the enterprise's  reportable  segment:  The
Partnership's  reportable  segments are business units  (investment  properties)
that offer  different  products and services.  The reportable  segments are each
managed  separately  because they provide distinct services with different types
of products and customers.

Segment  information  for the years ending  December 31, 2002,  2001 and 2000 is
shown  in  the  tables  below  (in  thousands).   The  "Other"  Column  includes
partnership administration related items and income and expense not allocated to
reportable segments.




2002                                     Residential  Commercial    Other      Totals

                                                                  
Rental income                              $12,123      $ 1,109      $ --     $13,232
Interest income                                  7            1          4         12
Other income                                   899          117         --      1,016
Interest expense                             2,254          228         --      2,482
Depreciation                                 3,012          177         --      3,189
General and administrative expenses             --           --        836        836
Interest income on investment
  in Master Loan                                --           --        386        386
Gain on foreclosure of real estate              --           --      1,831      1,831
Segment profit                               2,257         (324)     1,385      3,318
Total assets                                65,550          862     16,919     83,331
Capital expenditures for investment
 Properties                                    560           22         --        582





2001                                     Residential  Commercial    Other      Totals

                                                                  
Rental income                              $ 9,782      $ 1,523      $ --     $11,305
Interest income                                 58            8         12         78
Other income                                   539          282         --        821
Interest expense                             1,659          230         --      1,889
Depreciation                                 2,890           90         --      2,980
General and administrative expenses             --           --        720        720
Interest income on investment
  in Master Loan                                --           --      3,280      3,280
Reduction of provision for impairment
  loss                                          --           --      3,176      3,176
Segment profit                               1,285           49      5,744      7,078
Total assets                                27,896        1,213     26,980     56,089
Capital expenditures for investment
 properties                                    372          524         --        896





2000                                    Residential  Commercial     Other     Totals

                                                                  
Rental income                             $ 9,298      $ 1,528      $ --      $10,826
Interest income                                98           24         275        397
Other income                                  520          239           1        760
Interest expense                            1,673          236          --      1,909
Depreciation                                2,952           84          --      3,036
General and administrative expenses            --           --         711        711
Interest Income on Investment in
  Master Loan                                  --           --       2,000      2,000
Reduction of provision for
  impairment loss                              --           --      14,241     14,241
Segment profit                              1,424          381      15,806     17,611
Total assets                               32,276        1,853      31,254     65,383
Capital expenditures for investment
 properties                                 1,596           51          --      1,647


Note M - Legal Proceedings

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial Group, Inc., et al. (the "Nuanes action") in the Superior Court of the
State of  California  for the  County  of San  Mateo.  The  plaintiffs  named as
defendants,  among others,  the Partnership,  its General Partner and several of
their  affiliated  partnerships and corporate  entities.  The action purports to
assert  claims on behalf of a class of  limited  partners  and  derivatively  on
behalf of a number of limited partnerships (including the Partnership) which are
named as nominal defendants, challenging, among other things, the acquisition of
interests in certain General Partner entities by Insignia  Financial Group, Inc.
("Insignia") and entities which were, at one time, affiliates of Insignia;  past
tender offers by the Insignia  affiliates to acquire limited  partnership units;
management of the  partnerships  by the Insignia  affiliates;  and the series of
transactions  which  closed on October 1, 1998 and  February  26,  1999  whereby
Insignia and Insignia  Properties Trust,  respectively,  were merged into AIMCO.
The plaintiffs seek monetary damages and equitable  relief,  including  judicial
dissolution of the  Partnership.  On June 25, 1998, the General  Partner filed a
motion seeking dismissal of the action. In lieu of responding to the motion, the
plaintiffs  filed an amended  complaint.  The General Partner filed demurrers to
the amended complaint which were heard February 1999.

Pending the ruling on such  demurrers,  settlement  negotiations  commenced.  On
November 2, 1999,  the parties  executed and filed a Stipulation  of Settlement,
settling claims, subject to court approval, on behalf of the Partnership and all
limited partners who owned units as of November 3, 1999. Preliminary approval of
the  settlement  was obtained on November 3, 1999 from the Court,  at which time
the Court set a final  approval  hearing for  December  10,  1999.  Prior to the
December  10,  1999  hearing,  the  Court  received  various  objections  to the
settlement, including a challenge to the Court's preliminary approval based upon
the alleged lack of authority of prior lead counsel to enter the settlement.  On
December  14,  1999,  the General  Partner  and its  affiliates  terminated  the
proposed settlement.  In February 2000, counsel for some of the named plaintiffs
filed a motion to disqualify plaintiff's lead and liaison counsel who negotiated
the settlement.  On June 27, 2000, the Court entered an order disqualifying them
from the case and an appeal was taken  from the order on  October  5,  2000.  On
December 4, 2000, the Court  appointed the law firm of Lieff Cabraser  Heimann &
Bernstein  LLP as new  lead  counsel  for  plaintiffs  and the  putative  class.
Plaintiffs  filed a third  amended  complaint on January 19,  2001.  On March 2,
2001,  the  General  Partner  and its  affiliates  filed a demurrer to the third
amended  complaint.  On May 14, 2001,  the Court heard the demurrer to the third
amended  complaint.  On July 10,  2001,  the Court  issued  an order  sustaining
defendants'  demurrer on certain grounds.  On July 20, 2001,  Plaintiffs filed a
motion for  reconsideration  of the Court's July 10, 2001 order granting in part
and denying in part defendants' demurrer. On September 7, 2001, Plaintiffs filed
a fourth amended class and derivative action  complaint.  On September 12, 2001,
the Court denied Plaintiffs' motion for reconsideration. On October 5, 2001, the
General Partner and affiliated defendants filed a demurrer to the fourth amended
complaint,  which was heard on December 11, 2001. On February 2, 2002, the Court
served its order granting in part the demurrer.  The Court has dismissed without
leave  to amend  certain  of the  plaintiffs'  claims.  On  February  11,  2002,
plaintiffs  filed a motion seeking to certify a putative class  comprised of all
non-affiliated  persons  who own or have owned  units in the  partnerships.  The
General Partner and affiliated  defendants oppose the motion. On April 29, 2002,
the Court held a hearing on plaintiffs' motion for class  certification and took
the matter under submission after further briefing, as ordered by the court, was
submitted by the parties.  On July 10, 2002, the Court entered an order vacating
the  current  trial  date of  January  13,  2003 (as well as the  pre-trial  and
discovery cut-off dates) and stayed the case in its entirety through November 7,
2002 so that the parties could have an  opportunity  to discuss  settlement.  On
October  30,  2002,  the court  entered  an order  extending  the stay in effect
through January 10, 2003.

On January 8, 2003,  the parties filed a  Stipulation  of Settlement in proposed
settlement of the Nuanes action and the Heller action described below. The Court
has  scheduled  the hearing on  preliminary  approval  for April 4, 2003 and the
hearing on final approval for June 2, 2003.

In general  terms,  the  proposed  settlement  provides  for  certification  for
settlement  purposes of a settlement class consisting of all limited partners in
this  Partnership and others (the  "Partnerships")  as of December 20, 2002, the
dismissal  with  prejudice  and  release  of claims  in the  Nuanes  and  Heller
litigation,  payment by AIMCO of $9.9  million  (which shall be  distributed  to
settlement  class  members  after  deduction of attorney fees and costs of class
counsel and certain costs of  settlement)  and up to $ 1 million toward the cost
of independent  appraisals of the Partnerships'  properties by a Court appointed
appraiser.  An affiliate of the General Partner has also agreed to make a tender
offer to purchase all of the partnership  interests in the  Partnerships  within
one year of final approval,  if it is granted,  and to provide partners with the
independent  appraisals at the time of these  tenders.  The proposed  settlement
also  provides  for the  limitation  of the  allowable  costs  which the General
Partner or its affiliates  will charge the  Partnerships in connection with this
litigation  and  imposes  limits  on the  class  counsel  fees and costs in this
litigation.  If the Court grants preliminary approval of the proposed settlement
in April, a notice will be distributed to partners providing detail on the terms
of the proposed settlement.

During the third  quarter of 2001, a complaint  (the "Heller  action") was filed
against  the same  defendants  that are named in the  Nuanes  action,  captioned
Heller v. Insignia Financial Group. On or about August 6, 2001, plaintiffs filed
a first amended  complaint.  The first amended complaint in the Heller action is
brought as a purported  derivative  action,  and asserts  claims for among other
things  breach  of  fiduciary  duty;  unfair  competition;   conversion,  unjust
enrichment;  and judicial  dissolution.  Plaintiffs in the Nuanes action filed a
motion to  consolidate  the Heller action with the Nuanes action and stated that
the Heller action was filed in order to preserve the derivative claims that were
dismissed  without  leave to amend in the Nuanes action by the Court order dated
July 10, 2001. On October 5, 2001, the General Partner and affiliated defendants
moved to strike the first  amended  complaint in its entirety for  violating the
Court's  July 10, 2001 order  granting  in part and denying in part  defendants'
demurrer in the Nuanes action, or  alternatively,  to strike certain portions of
the  complaint  based on the statute of  limitations.  Other  defendants  in the
action demurred to the fourth amended complaint,  and,  alternatively,  moved to
strike the  complaint.  On December  11, 2001,  the court heard  argument on the
motions and took the matters under  submission.  On February 4, 2002,  the Court
served  notice of its order  granting  defendants'  motion to strike  the Heller
complaint  as a violation  of its July 10, 2001 order in the Nuanes  action.  On
March 27, 2002, the plaintiffs  filed a notice  appealing the order striking the
complaint.  Before completing briefing on the appeal, the parties stayed further
proceedings  in the  appeal  pending  the  Court's  review  of the  terms of the
proposed settlement described above.

The  General  Partner  does not  anticipate  that any costs to the  Partnership,
whether legal or settlement costs,  associated with these cases will be material
to the Partnership's overall operations.

The  Partnership is unaware of any other pending or outstanding  litigation that
is not of a routine nature arising in the ordinary course of business.

Note N - Selected Quarterly Financial Data (Unaudited)

The following is a summary of the unaudited  quarterly results of operations for
the Partnership (in thousands, except per unit data):




                                   1st       2nd       3rd        4th
2002                             Quarter   Quarter   Quarter    Quarter    Total
                                                           
Total revenues                   $2,929     $3,249    $3,883    $4,585    $14,646
Total expenses                    2,787      2,810     3,307     4,255     13,159
Income from continuing
operations                          142        439       576       330      1,487
Gain on foreclosure of real
 estate                              --         --     1,831        --      1,831
Net income                     $    142   $    439  $  2,407  $    330   $  3,318
Net income allocated
  to General Partner (1%)      $      1   $      4  $     24  $      4   $     33
Net income allocated
  to Limited Partners (99%)         141        435     2,383       326      3,285
                               $    142   $    439  $  2,407  $    330   $  3,318
Net income per limited
  partnership unit             $   0.71   $   2.19  $  11.97  $   1.63   $  16.50
Distributions per limited
  partnership unit             $   2.27   $   4.64  $   4.70  $   6.18   $  17.79





                                   1st        2nd       3rd       4th
2001                             Quarter    Quarter   Quarter   Quarter    Total
Revenues:
  Rental, interest and
                                                          
    other income               $  3,075    $  3,030   $ 3,044   $ 3,055  $ 12,204
  Interest income on
    investment in Master Loan     1,900         804       576        --     3,280
  Reduction of provision for
    impairment loss               3,176          --        --        --     3,176
    Total revenues                8,151       3,834     3,620     3,055    18,660
Total expenses                    2,945       3,126     2,725     2,786    11,582
Net income                     $  5,206    $    708  $    895  $    269  $  7,078
Net income allocated
  to General Partner (1%)      $     52    $      7  $      9  $      3  $     71
Net income allocated
  to Limited Partners (99%)       5,154         701       886       266     7,007
                               $  5,206    $    708  $    895  $    269  $  7,078
Net income per limited
  partnership unit             $  25.89    $   3.52  $   4.45  $   1.34  $  35.20
Distributions per limited
  partnership unit             $  39.02    $  16.53  $  18.65  $   4.63  $  78.83






                                   1st        2nd       3rd       4th
2000                             Quarter    Quarter   Quarter   Quarter    Total
Revenues:
  Rental, interest and
                                                          
    other income               $  2,846    $  2,963   $ 3,066   $ 3,108  $ 11,983
  Interest income on
    investment in Master Loan        --       1,000     1,000        --     2,000
  Reduction of provision for
    impairment loss                  --          --    14,241        --    14,241
  Property tax refund                --          --       210        --       210
    Total revenues                2,846       3,963    18,517     3,108    28,434
Total expenses                    2,621       2,736     2,816     2,650    10,823
Net income                     $    225    $  1,227  $ 15,701  $    458  $ 17,611
Net income allocated
  to General Partner (1%)      $      2    $     12  $    157  $      5  $    176
Net income allocated
  to Limited Partners (99%)         223       1,215    15,544       453    17,435
                               $    225    $  1,227  $ 15,701  $    458  $ 17,611
Net income per limited
  partnership unit             $   1.12    $   6.10  $  78.09  $   2.28  $  87.59
Distributions per limited
  partnership unit             $  27.54    $   5.97  $  31.17  $ 175.87  $ 240.55




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

            None.

                                    PART III

Item 10. Directors, Executive Officers of the General Partner of the Partnership

The names and ages of, as well as the positions and offices held by, the present
executive   officers  and  director  of  ConCap   Equities,   Inc.  ("CEI")  the
Partnership's General Partner as of December 31, 2002, their ages and the nature
of all positions with CEI presently held by them are as follows:

Name                        Age    Position

Patrick J. Foye              45    Executive Vice President and Director
Paul J. McAuliffe            46    Executive Vice President and Chief
                                     Financial Officer
Thomas C. Novosel            44    Senior Vice President and Chief Accounting
                                     Officer

Patrick J. Foye has been  Executive  Vice  President and Director of the General
Partner since October 1, 1998.  Mr. Foye has served as Executive  Vice President
of AIMCO since May 1998,  where he is responsible  for  continuous  improvement,
acquisitions of partnership securities, consolidation of minority interests, and
corporate and other acquisitions.  Prior to joining AIMCO, Mr. Foye was a Merger
and Acquisitions Partner in the law firm of Skadden, Arps, Slate, Meagher & Flom
LLP from 1989 to 1998.

Paul J. McAuliffe has been Executive Vice President and Chief Financial  Officer
of the  General  Partner  since  April 1,  2002.  Mr.  McAuliffe  has  served as
Executive  Vice  President  of AIMCO  since  February  1999 and Chief  Financial
Officer of AIMCO since  October 1999.  From May 1996 until he joined AIMCO,  Mr.
McAuliffe was Senior Managing Director of Secured Capital Corp.

Thomas C. Novosel has been Senior Vice President and Chief Accounting Officer of
the General  Partner since April 1, 2002.  Mr. Novosel has served as Senior Vice
President and Chief  Accounting  Officer of AIMCO since April 2000. From October
1993  until he joined  AIMCO,  Mr.  Novosel  was a partner at Ernst & Young LLP,
where he  served  as the  director  of real  estate  advisory  services  for the
southern Ohio Valley area offices but did not work on any assignments related to
AIMCO or the Partnership.

One or more of the above persons are also directors and/or officers of a general
partner (or general partner of a general partner) of limited  partnerships which
either have a class of  securities  registered  pursuant to Section 12(g) of the
Securities Exchange Act of 1934, or are subject to the reporting requirements of
Section  15(d) of such Act.  Further,  one or more of the above persons are also
directors and/or officers of Apartment Investment and Management Company and the
general  partner  of  AIMCO  Properties,  L.P.,  entities  that  have a class of
securities  registered  pursuant to Section 12(g) of the Securities Exchange Act
of 1934, or are subject to the reporting  requirements of Section 15 (d) of such
Act.

The  executive  officers  and  director  of  the  General  Partner  fulfill  the
obligations  of the Audit  Committee  and  oversee the  Partnership's  financial
reporting  process on behalf of the General Partner.  Management has the primary
responsibility for the financial  statements and the reporting process including
the systems of internal controls. In fulfilling its oversight  responsibilities,
the executive  officers and director of the General Partner reviewed the audited
financial  statements with management including a discussion of the quality, not
just the  acceptability,  of the accounting  principles,  the  reasonableness of
significant  judgments,  and the  clarity  of  disclosures  in the  consolidated
financial statements.

The  executive  officers and director of the General  Partner  reviewed with the
independent  auditors,  who are  responsible  for  expressing  an opinion on the
conformity of those audited  financial  statements  with  accounting  principles
generally accepted in the United States,  their judgments as to the quality, not
just the  acceptability,  of the  Partnership's  accounting  principles and such
other  matters as are required to be discussed  with the audit  committee or its
equivalent under auditing standards  generally accepted in the United States. In
addition,  the  Partnership  has  discussed  with the  independent  auditors the
auditors' independence from management and the Partnership including the matters
in the written  disclosures  required by the  Independence  Standards  Board and
considered  the   compatibility   of  non-audit   services  with  the  auditors'
independence.

The executive  officers and director of the General  Partner  discussed with the
Partnership's  independent auditors the overall scope and plans for their audit.
In  reliance on the reviews and  discussions  referred to above,  the  executive
officers and director of the General  Partner have approved the inclusion of the
audited  financial  statements in the Form 10-K for the year ended  December 31,
2002 for filing with the Securities and Exchange Commission.

The General Partner has reappointed Ernst & Young LLP as independent auditors to
audit the financial statements of the Partnership for the 2003 fiscal year. Fees
for 2002 were annual  audit  services  of  approximately  $58,000 and  non-audit
services (principally tax-related) of approximately $20,000.

Item 11. Executive Compensation

No remuneration was paid to the General Partner nor its director or officers.

Item 12. Security Ownership of Certain Beneficial Owners and Management

(a)      Security Ownership of Certain Beneficial Owners

Except as noted below,  no persons or entity is known by the General  Partner to
own beneficially more than 5% of the outstanding Units of the Partnership:

      Name and Address                   Number of Units     Percentage
      Insignia Properties, L.P.
      (an affiliate of AIMCO)                50,572.4          25.41%
      Reedy River Properties, L.L.C.
      (an affiliate of AIMCO)                28,832.5          14.48%
      Cooper River Properties, L.L.C.
      (an affiliate of AIMCO)                11,365.6           5.71%
      AIMCO Properties, L.P.
      (an affiliate of AIMCO)                38,912.1          19.55%

Reedy River Properties,  Cooper River Properties LLC and Insignia  Properties LP
are  indirectly  ultimately  owned by AIMCO.  Their  business  addresses  are 55
Beattie Place, Greenville, SC 20602.

AIMCO Properties,  LP is ultimately controlled by AIMCO. Its business address is
4582 S. Ulster St. Parkway, Suite 1100, Denver, Colorado 80237.

(b)      Beneficial Owners of Management

Except as described in Item 12(a) above,  neither CEI nor any of the  directors,
officers  or  associates  of CEI own any Units of the  Partnership  of record or
beneficially.

(c)      Changes in Control

         Beneficial Owners of CEI

As of  December  31,  2002,  the  following  entity  was  known to CEI to be the
beneficial owner of more than 5% of its common stock:

                                             NUMBER OF       PERCENT
         NAME AND ADDRESS                      UNITS        OF TOTAL

         Insignia Properties Trust
         55 Beattie Place
         P.O. Box 1089
         Greenville, SC 29602                 100,000         100%

Effective  February 26, 1999,  Insignia  Properties Trust merged into AIMCO with
AIMCO being the surviving corporation.  As a result, AIMCO ultimately acquired a
100% interest in Insignia Properties Trust.

Item 13. Certain Relationships and Related Transactions

The Partnership has no employees and is dependent on the General Partner and its
affiliates for the management and administration of all Partnership  activities.
The Partnership  Agreement  provides for (i) certain  payments to affiliates for
services and (ii)  reimbursement of certain  expenses  incurred by affiliates on
behalf of the Partnership.

Affiliates of the General  Partner are entitled to receive 5% of gross  receipts
from all of the  Partnership's  properties  for  providing  property  management
services.  The  Partnership  paid to  such  affiliates  approximately  $695,000,
$640,000  and $580,000  for the years ended  December  31, 2002,  2001 and 2000,
respectively, which is included in operating expense.

An  affiliate  of the General  Partner  received  reimbursement  of  accountable
administrative  expenses  amounting  to  approximately  $454,000,  $332,000  and
$510,000  for the years ended  December 31,  2002,  2001 and 2000,  respectively
which is included in general and administrative expenses.

Beginning in 2001, the  Partnership  began insuring its properties up to certain
limits through coverage provided by AIMCO which is generally  self-insured for a
portion of losses and  liabilities  related  to workers  compensation,  property
casualty and vehicle liability. The Partnership insures its properties above the
AIMCO  limits  through  insurance  policies  obtained  by  AIMCO  from  insurers
unaffiliated with the General Partner.  During the years ended December 31, 2002
and 2001, the Partnership paid AIMCO and its affiliates  approximately  $256,000
and  $60,000 for  insurance  coverage  and fees  associated  with policy  claims
administration.

In addition to its indirect  ownership of the general  partner  interests in the
Partnership,  AIMCO and its affiliates owned 129,682.6 limited partnership units
(the "Units") in the Partnership representing 65.15% of the outstanding Units at
December  31,  2002.  A number of these Units were  acquired  pursuant to tender
offers  made by  AIMCO  or its  affiliates.  It is  possible  that  AIMCO or its
affiliates will acquire additional units of limited partnership  interest in the
Partnership  in  exchange  for cash or a  combination  of cash and  units in the
operating  partnership  of AIMCO  either  through  private  purchases  or tender
offers. Under the Partnership  Agreement,  unitholders holding a majority of the
Units are  entitled to take action  with  respect to a variety of matters  which
would  include  voting on certain  amendments to the  Partnership  Agreement and
voting to remove the General Partner.  As a result of its ownership of 65.15% of
the outstanding  Units,  AIMCO is in a position to control all voting  decisions
with  respect to the  Registrant.  Although the General  Partner owes  fiduciary
duties to the limited partners of the Partnership, the General Partner also owes
fiduciary duties to AIMCO as its sole  stockholder.  As a result,  the duties of
the General Partner,  as managing  general  partner,  to the Partnership and its
limited  partners may come into conflict with the duties of the General  Partner
to AIMCO, as its sole stockholder.

                                     PART IV

Item 14.    Controls and Procedures

The principal  executive officer and principal  financial officer of the General
Partner, who are the equivalent of the Partnership's principal executive officer
and  principal  financial  officer,  respectively,  have,  within 90 days of the
filing  date  of  this  annual  report,   evaluated  the  effectiveness  of  the
Partnership's  disclosure  controls and  procedures  (as defined in Exchange Act
Rules 13a-14(c) and 15d-14(c)) and have determined that such disclosure controls
and  procedures  are  adequate.  There have been no  significant  changes in the
Partnership's  internal  controls or in other  factors that could  significantly
affect the  Partnership's  internal  controls since the date of evaluation.  The
Partnership does not believe any significant deficiencies or material weaknesses
exist in the Partnership's internal controls. Accordingly, no corrective actions
have been taken.

Item 15.    Exhibits, Financial Statements, Schedules and Reports on Form 8-K

      (a) The following documents are filed as part of this report:

            1. Financial Statements Consolidated Capital Equity Partners, L.P.

                  Statement of Net Liabilities in Liquidation at December 31,
                        2002

                  Statement of Changes in Net Liabilities in Liquidation for the
                  period March 31, 2002 to December 31, 2002

                  Balance Sheet as of December 31, 2001

                  Statements of Operations for the period January 1,
                  2002 to March 31,  2002 and for the Years Ended  December  31,
                  2001 and 2000

                  Statements   of  Changes  in  Partners'   Deficit(Capital)/Net
                  Liabilities in Liquidation  for the period January
                  1, 2002 to March 31, 2002 and for the Years Ended December 31,
                  2001 and 2000

                  Statements of Cash Flows for the period January 1,
                  2002 to March 31,  2002 and for the Years Ended  December  31,
                  2001 and 2000

                  Notes to Financial Statements

            2.    Schedules

                  All schedules are omitted  because they are not required,  are
                  not applicable or the financial information is included in the
                  financial statements or notes thereto.

            3.    Exhibits

                  (a) See Exhibit Index attached.

(b) Reports on Form 8-K filed during the fourth quarter of 2002:

                        None.

                                   SIGNATURES



Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  registrant  has duly  caused  this report to be signed on its
behalf by the undersigned, thereunto duly authorized.


                                  CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES
                                    By:   ConCap Equities, Inc.
                                          General Partner


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


                                    By:   /s/Thomas C. Novosel
                                          Thomas C. Novosel
                                          Senior Vice President and
                                          Chief Accounting Officer

                              Date: March 31, 2003

In  accordance  with the Exchange  Act, this report has been signed below by the
following  persons on behalf of the Registrant and in the capacities on the date
indicated.


/s/Patrick J. Foye            Executive Vice President      Date: March 31, 2003
Patrick J. Foye               and Director


/s/Thomas C. Novosel          Senior Vice President         Date: March 31, 2003
Thomas C. Novosel             and Chief Accounting Officer


                                  CERTIFICATION


I, Patrick J. Foye, certify that:


1. I have  reviewed  this  annual  report on Form 10-K of  Consolidated  Capital
Institutional Properties;


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
registrant as of, and for, the periods presented in this annual report;


4.  The  registrant's  other  certifying  officers  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 registrant and we have:


      a)  Designed  such  disclosure  controls  and  procedures  to ensure  that
      material   information   relating  to  the   registrant,   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 registrant's disclosure controls and
      procedures  as of a date  within 90 days prior to the filing  date of this
      annual report (the "Evaluation Date"); 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 registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
registrant's   board  of  directors  (or  persons   performing   the  equivalent
functions):


      a) All  significant  deficiencies  in the design or  operation of internal
      controls which could adversely affect the registrant's  ability to record,
      process,  summarize and report  financial data and have identified for the
      registrant'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  registrant's  internal
      controls; and


6. The  registrant's  other  certifying  officers  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 date of our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.


Date: March 31, 2003

                               /s/Patrick J. Foye
                                 Patrick J. Foye
                                 Executive  Vice  President  of  ConCap
                                 Equities,  Inc., equivalent  of  the  chief
                                 executive officer of the Partnership

                                  CERTIFICATION


I, Paul J. McAuliffe, certify that:


1. I have  reviewed  this  annual  report on Form 10-K of  Consolidated  Capital
Institutional Properties;


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
registrant as of, and for, the periods presented in this annual report;


4.  The  registrant's  other  certifying  officers  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 registrant and we have:


      a)  Designed  such  disclosure  controls  and  procedures  to ensure  that
      material   information   relating  to  the   registrant,   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 registrant's disclosure controls and
      procedures  as of a date  within 90 days prior to the filing  date of this
      annual report (the "Evaluation Date"); 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 registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
registrant's   board  of  directors  (or  persons   performing   the  equivalent
functions):


      a) All  significant  deficiencies  in the design or  operation of internal
      controls which could adversely affect the registrant's  ability to record,
      process,  summarize and report  financial data and have identified for the
      registrant'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  registrant's  internal
      controls; and


6. The  registrant's  other  certifying  officers  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 date of our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.


Date: March 31, 2003

                                    /s/Paul J. McAuliffe
                                    Paul J. McAuliffe
                                    Executive Vice President
                                    and Chief Financial  Officer of
                                    ConCap   Equities,   Inc.,   equivalent
                                    of  the  chief financial officer of the
                                    Partnership


                                  EXHIBIT INDEX



S-K Reference                       Document Description

3    Certificates of Limited Partnership,  as amended to date.  (Incorporated by
     reference to the Annual Report on Form 19-K for the year ended December 31,
     1991 ("1991 Annual Report")).

      10.1        Amended Loan Agreement dated November 15, 1990 (the "Effective
                  Date"), by and between the Partnership and EP (Incorporated by
                  reference to the Annual Report of Form 10-K for the year ended
                  December 31, 1990 ("1990 Annual Report")).

      10.2        Assumption  Agreement as of the Effective Date, by and between
                  EP and CCEP  (Incorporated  by  reference  to the 1990  Annual
                  Report).

      10.3        Assignment of Claims as of the Effective  Date, by and between
                  the Partnership and EP  (Incorporated by reference to the 1990
                  Annual Report).

      10.5        Bill of Sale and  Assignment  dated  October 23, 1990,  by and
                  between  CCEP and ConCap  Services  Company  (Incorporated  by
                  reference to the Quarterly Report on Form 10-Q for the quarter
                  ended September 30, 1990).

10.20Mortgage and Security  Agreement  between Kennedy  Boulevard  Associates I,
     L.P., and Lehman Brothers Holdings,  Inc., dated August 25, 1998,  securing
     The Sterling  Apartment Home and Commerce Center filed in Form 10-Q for the
     quarter ended September 30, 1998.

10.21Repair Escrow Agreement between Kennedy  Boulevard  Associates I, L.P., and
     Lehman  Brothers  Holdings,  Inc.,  dated  August 25,  1998,  securing  The
     Sterling  Apartment  Home and  Commerce  Center  filed in Form 10-Q for the
     quarter ended September 30, 1998.

10.22Replacement  Reserve  and  Security  Agreement  between  Kennedy  Boulevard
     Associates I, L.P., and Lehman Brothers  Holdings,  Inc.,  dated August 25,
     1998,  securing The Sterling  Apartment  Home and Commerce  Center filed in
     Form 10-Q for the quarter ended September 30, 1998.

      10.23       Third Amendment to the Limited Partnership  Agreement filed as
                  Exhibit 10.23 to the  Registrant's  Annual Report on Form 10-K
                  for the year ended December 31, 2001 and  incorporated  herein
                  by reference.

      10.24       Fourth Amendment to the Limited Partnership Agreement filed as
                  Exhibit 10.24 to the  Registrant's  Annual Report on Form 10-K
                  for the year ended December 31, 2001 and  incorporated  herein
                  by reference.

      11          Statement  regarding  computation  of Net Income  per  Limited
                  Partnership  Unit  (Incorporated  by  reference to "Note A" of
                  Item 8. Financial  Statements and Supplementary Data - in this
                  Form 10-K)

      28.1        Fee Owner's Limited  Partnership  Agreement dated November 14,
                  1990 (Incorporated by reference to the 1990 Annual Report).

99   Certification of the Chief Executive Officer and Chief Financial Officer.

99.1 Audited Financial Statements of Consolidated Capital Equity Partners,  L.P.
     for the years ended December 31, 2002 and 2001.

Exhibit 99


                          Certification of CEO and CFO
                       Pursuant to 18 U.S.C. Section 1350,
                             As Adopted Pursuant to
                  Section 906 of the Sarbanes-Oxley Act of 2002



In  connection  with the  Annual  Report  on Form 10-K of  Consolidated  Capital
Institutional  Properties (the  "Partnership"),  for the year ended December 31,
2002 as filed with the  Securities  and Exchange  Commission  on the date hereof
(the  "Report"),  Patrick  J. Foye,  as the  equivalent  of the chief  executive
officer of the  Partnership,  and Paul J.  McAuliffe,  as the  equivalent of the
chief financial officer of the Partnership,  each hereby certifies,  pursuant to
18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002, that, to the best of his knowledge:

(1)  The Report fully complies with the  requirements  of Section 13(a) or 15(d)
     of the Securities Exchange Act of 1934; and

      (2)   The  information  contained in the Report  fairly  presents,  in all
            material respects, the financial condition and results of operations
            of the Partnership.


                                    /s/Patrick J. Foye
                              Name: Patrick J. Foye
                              Date: March 31, 2003


                                    /s/Paul J. McAuliffe
                              Name: Paul J. McAuliffe
                              Date: March 31, 2003


This  certification  accompanies  the  Report  pursuant  to  Section  906 of the
Sarbanes-Oxley  Act of 2002 and shall not,  except to the extent required by the
Sarbanes-Oxley  Act of 2002, be deemed filed by the  Partnership for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended.


                                   EXHIBIT 99.1

                   CONSOLIDATED CAPITAL EQUITY PARTNERS, L.P.

                              FINANCIAL STATEMENTS

                 FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001
                                     EXHIBIT 99.1 (Continued)

                   CONSOLIDATED CAPITAL EQUITY PARTNERS, L.P.

                                TABLE OF CONTENTS

                                December 31, 2002


LIST OF FINANCIAL STATEMENTS


      Report of Ernst & Young LLP, Independent Auditors

      Statement of Net Liabilities in Liquidation - December 31, 2002

      Statement of Changes in Net  Liabilities  in  Liquidation - for the period
      April 1, 2002 to December 31, 2002.

      Balance Sheet as of December 31, 2001

      Statements  of Operations  for the Three Months Ended March 31, 2002,  and
      the Years Ended December 31, 2001 and 2000

      Statements of Changes in Partners' Deficit/Net  Liabilities in Liquidation
      - Three Months Ended March 31, 2002 and Years Ended  December 31, 2001 and
      2000

      Statements of Cash Flows for the Three Months Ended March 31, 2002 and the
      Years Ended December 31, 2001 and 2000

      Notes to Financial Statements

                     Report of Ernst & Young LLP, Independent Auditors



The Partners
Consolidated Capital Equity Partners, L.P.

We have audited the accompanying  statement of net liabilities in liquidation of
Consolidated  Capital  Equity  Partners,  L.P. as of December 31, 2002   and the
related  statement of changes in net  liabilities in liquidation  for the period
from April 1, 2002 to December 31, 2002. We have also audited the  statements of
operations,  changes in  partners'  deficit, and cash flows for the period  from
January 1, 2002 to March 31,  2002.  In  addition,  we have  audited the balance
sheet as of  December  31, 2001 and the  statements  of  operations,  changes in
partners' deficit, and cash flows for each of the two years in the period  ended
December 31, 2001.  These  financial  statements are the  responsibility  of the
Partnership's  management.  Our responsibility is to express an opinion on these
financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable  assurance about whether the 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 the  Partnership's  management,  as  well  as  evaluating  the  overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

As more fully described in Note A, effective March 31, 2002, the General Partner
approved a plan to liquidate the Partnership.  As a result,  the Partnership has
changed its basis of  accounting as of March 31, 2002 from a going concern basis
to a liquidation basis.

In our opinion,  the financial  statements  referred to above present fairly, in
all material  respects,  the net  liabilities  in  liquidation  of  Consolidated
Capital  Equity  Partners,  L.P.  at  December  31,  2002,  the  changes  in net
liabilities  in  liquidation  for the period from April 1, 2002 to December  31,
2002,  the  financial  position at  December  31,  2001,  and the results of its
operations  and its cash flows for the period from  January 1, 2002 to March 31,
2002,  and for each of the two years in the period ended  December 31, 2001,  in
conformity with accounting  principles  generally  accepted in the United States
applied on the basis described in the preceding paragraph.

As  discussed in Note A to the  Financial  Statements,  in 2002 the  Partnership
adopted Statement of Financial Accounting Standards No. 144, "Accounting for the
Impairment  or  Disposal  of  Long-Lived  Assets"  and  Statement  of  Financial
Accounting  Standards No. 145, "Rescission of FASB Statements No. 4, 44 and 64."
As a result, the accompanying  financial  statements for the period from January
1,  2002 to March 31,  2002 and the  years  ended  December  31,  2001 and 2000,
referred to above, have been restated to conform to the presentation  adopted in
2002 in accordance with accounting  principles  generally accepted in the United
States.

                                                           /s/ ERNST & YOUNG LLP


Greenville, South Carolina
March 31, 2003

                   CONSOLIDATED CAPITAL EQUITY PARTNERS, L.P.
                   STATEMENT OF NET LIABILITIES IN LIQUIDATION
                                   (Unaudited)
                                 (in thousands)

                                December 31, 2002








Assets
  Cash and cash equivalents                                       $ 963
  Receivables and deposits                                           264
  Other assets                                                        90
  Investment properties (Notes D and F)                           38,500
                                                                  39,817
Liabilities
  Accounts payable                                                   338
  Tenant security deposit liabilities                                272
  Due to affiliate                                                   929
  Other liabilities                                                  876
  Mortgage notes payable (Note D)                                 23,290
  Master Loan and interest payable (Note C)                       14,112
                                                                  39,817

Net liabilities in liquidation                                     $ --

                       See Accompanying Notes to Financial Statements


                            Exhibit 99.1 (continued)

                   statement of changes in net liabilities in liquidation
                                 (in thousands)

                 Period from April 1, 2002 to December 31, 2002








Net liabilities in liquidation at March 31, 2002                       $     --

Changes in net liabilities in liquidation attributed to:
   Decrease in cash and cash equivalents                                   (242)
   Increase in receivables and deposits                                      40
   Decrease in restricted escrows                                          (625)
   Decrease in other assets                                                (252)
   Decrease in investment in affiliated partnerships                     (1,371)
   Decrease in investment properties                                    (56,160)
   Increase in accounts payable                                             (24)
   Decrease in tenant security deposit liabilities                          168
   Increase in due to affiliates                                           (929)
   Decrease in accrued taxes                                                370
   Increase in other liabilities                                           (149)
   Decrease in mortgage notes payable                                    31,221
   Decrease in Master Loan and interest payable                          27,953
Net liabilities in liquidation at December 31, 2002                    $     --

                            EXHIBIT 99.1 (Continued)



                              CAPITAL EQUITY PARTNERS, L.P.
                                  BALANCE SHEET
                                 (in thousands)

                                                          December 31,
                                                              2001

Assets
   Cash and cash equivalents                               $  1,321
   Receivables and deposits                                     280
   Restricted escrows                                           615
   Other assets                                               1,514
   Investment properties (Notes D and F):
      Land                                                    6,904
      Building and related personal property                 80,399
                                                             87,303
      Less accumulated depreciation                         (68,315)
                                                             18,988
                                                          $  22,718
Liabilities and Partners' Deficit
Liabilities
   Accounts payable                                       $     527
   Tenant security deposit liabilities                          440
   Accrued property taxes                                       256
   Other liabilities                                            564
   Mortgage notes (Note D)                                   54,834
   Master loan and interest payable (Note C)                371,455
                                                            428,076
Partners' Deficit
   General partner                                           (4,054)
   Limited partners                                        (401,304)
                                                           (405,358)
                                                          $  22,718


                       See Accompanying Notes to Financial Statements



                            EXHIBIT 99.1 (Continued)

                   CONSOLIDATED CAPITAL EQUITY PARTNERS, L.P.
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)
                                 (in thousands)




                                                Period From
                                             January 1, 2002 to
                                                                  For the Years Ended
                                                  March 31,           December 31,
                                                    2002          2001           2000
                                                 (restated)    (restated)     (restated)
Revenues:
                                                                    
   Rental income                                  $  1,874    $  7,732       $  7,317
   Other income                                        275       1,303            923
      Total revenues                                 2,149       9,035          8,240
Expenses:
   Operating                                           898       3,936          3,704
   General and administrative                          228         883            746
   Depreciation                                        263       1,669          2,233
   Property taxes                                      167         697            660
   Interest                                         12,252      44,010         42,361
   Loss on early extinguishment of
      debt (Note D)                                     --          --            680
      Total expenses                                13,808      51,195         50,384

Loss from continuing operations                    (11,659)    (42,160)       (42,144)
Income from discontinued operations (Note G)           217         893          1,530
Gain on sale of discontinued
   operations (Note G)                                  --       4,377          3,121

Net loss                                          $(11,442)   $(36,890)      $(37,493)

Net loss allocated to general
    partner (1%)                                  $   (114)   $   (369)      $   (375)
Net loss allocated to limited
    partners (99%)                                 (11,328)    (36,521)       (37,118)
                                                  $(11,442)   $(36,890)      $(37,493)


                       See Accompanying Notes to Financial Statements





                            EXHIBIT 99.1 (Continued)


                   CONSOLIDATED CAPITAL EQUITY PARTNERS, L.P.
    STATEMENTS OF CHANGES IN PARTNERS' DEFICIT/NET LIABILITIES IN LIQUIDATION
                                 (in thousands)


                                      General        Limited
                                      Partners       Partners        Total

Partners' deficit at
   December 31, 1999                  $(3,310)      $(327,665)     $(330,975)

Net loss for the year ended
   December 31, 2000                     (375)        (37,118)       (37,493)

Partners' deficit at
   December 31, 2000                   (3,685)       (364,783)     (368,468)

Net loss for the year
   ended December 31, 2001               (369)        (36,521)       (36,890)

Partners deficit at
   December 31, 2001                   (4,054)       (401,304)      (405,358)

Net loss for the period from
 January 1, 2002 to
   ended March 31, 2002                  (114)        (11,328)       (11,442)

Partners' deficit at
   March 31, 2002                    $ (4,168)      $(412,632)     $(416,800)

Adjustment to liquidation basis
   (Note A)                                                          416,800

Net liabilities in liquidation
  of March 31, 2002                                               $      --

                       See Accompanying Notes to Financial Statements


                            EXHIBIT 99.1 (Continued)

                   CONSOLIDATED CAPITAL EQUITY PARTNERS, L.P.
                            STATEMENTS OF CASH FLOWS
                                 (in thousands)




                                                            Period From
                                                        January 1, 2002 to
                                                                               Years Ended
                                                              March 31,        December 31,
                                                                2002         2001        2000
Cash flows from operating activities:
                                                                             
  Net loss                                                   $(11,442)    $(36,890)   $(37,493)
  Adjustments to reconcile net loss to net
   cash provided by operating activities:
     Depreciation and amortization                                604        3,306       4,920
     Loss on early extinguishment of debt                          --           --       1,410
     Gain on sale of discontinued operation                        --       (4,377)     (3,121)
     Change in accounts:
      Receivables and deposits                                     56          648         431
      Other assets                                               (430)          45          27
      Accounts payable                                             36         (132)        (83)
      Tenant security deposit liabilities                          --          (45)         19
      Accrued property taxes                                      114           38        (217)
      Other liabilities                                           163          (22)        121
      Accrued interest on Master Loan                          11,769       38,763      39,287

       Net cash provided by operating activities                  870        1,334       5,301

Cash flows from investing activities:
  Property improvements and replacements                         (617)      (2,952)     (4,210)
  Proceeds from sale of discontinued operation                     --        6,019       4,526
  Net (deposits to) withdrawals from restricted escrows           (10)         152         (49)

       Net cash (used in) provided by investing
          activities                                             (627)       3,219         267

Cash flows from financing activities:
  Principal payments on Master Loan                                --       (7,801)    (33,634)
  Principal payments on mortgage notes payable                   (323)      (1,226)       (385)
  Proceeds from financing/refinancing                              --           --      56,200
  Repayment of mortgage notes payable                              --           --     (22,311)
  Debt extinguishment costs                                        --           --      (1,007)
  Loan costs paid                                                 (36)         (99)     (1,402)

       Net cash used in financing activities                     (359)      (9,126)     (2,539)

Net (decrease) increase in cash and cash equivalents             (116)      (4,573)      3,029

Cash and cash equivalents at beginning of period                1,321        5,894       2,865
Cash and cash equivalents at end of period                   $  1,205     $  1,321    $  5,894
Supplemental disclosure of cash flow information:
 Cash paid for interest                                      $  1,068     $  7,617    $  4,032
Supplemental disclosure of non-cash activity:
  Property improvements and replacements included in
  accounts payable                                           $     --     $    249    $     --




                            EXHIBIT 99.1 (Continued)
                   CONSOLIDATED CAPITAL EQUITY PARTNERS, L.P.

                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2002

Note A - Basis of Presentation

On March 31, 2002, Consolidated Capital Equity Partners, L.P. ("the Partnership"
or  "CCEP")  adopted  the  liquidation  basis of  accounting  as a result of the
Partnership   receiving   notification  from  Consolidated   Capital  Investment
Partners,  L.P. ("CCIP"), the holder of the nonrecourse note ("Master Loan") and
a related  party,  of its intention to exercise its remedy under the Master Loan
agreement  to  foreclose  or to  execute  deeds  in lieu of  foreclosure  on the
investment  properties  held by the  Partnership.  The  Master  Loan  matured in
November 2000. The Partnership does not have the means to satisfy its obligation
under the Master  Loan.  No other  sources  of  additional  financing  have been
identified  by the  Partnership,  nor does ConCap  Holdings,  Inc. (the "General
Partner") have any other plans to remedy the liquidity  problems the Partnership
is  experiencing.  CCIP executed deeds in lieu of  foreclosure  during the third
quarter  of 2002  on four of the  active  properties  of the  Partnership.  Upon
completion of the  foreclosure  process on the remaining four properties held by
the Partnership,  the Partnership will cease to exist as a going concern, and it
will be dissolved.

As a result of the  decision  to  liquidate  the  Partnership,  the  Partnership
changed its basis of accounting for its financial  statements at March 31, 2002,
to the liquidation basis of accounting. Consequently, assets have been valued at
estimated net realizable  value and liabilities are presented at their estimated
settlement  amounts,  including  estimated costs  associated with completing the
liquidation and estimated operations of the investment properties. The valuation
of assets and  liabilities  requires many estimates and  assumptions.  There are
substantial uncertainties in completing the liquidation.  The actual realization
of assets and  settlement of  liabilities  could be higher or lower than amounts
indicated and is based upon  estimates of the General  Partner as of the date of
the consolidated financial statements.

Adjustment to Liquidation Basis of Accounting

At March 31, 2002,  in  accordance  with the  liquidation  basis of  accounting,
assets were adjusted to their  estimated net  realizable  value and  liabilities
were adjusted to their estimated  settlement amount. The net adjustment required
to  convert  to the  liquidation  basis  of  accounting  was a  decrease  in net
liabilities of approximately  $416,800,000 which is included in the Statement of
Changes in Partners' Deficit/Net Liabilities In Liquidation. The adjustments are
summarized as follows:

                                                                  Increase in
                                                                   Net Assets
                                                                 (in thousands)
 Adjustment of book value of property and
   improvements to estimated net realizable value                   $ 75,868
 Adjustment for estimated net realizable value of
   investment in affiliated partnerships                               1,371
 Adjustment of master loan and accrued interest to
   estimated settlement amount                                       341,159
 Adjustment of other assets and liabilities, net                      (1,598)
 Decrease in net liabilities                                        $416,800

Note B - Organization and Summary of Significant Accounting Policies

Organization:  Consolidated Capital Equity Partners ("EP"), a California general
partnership,  was  formed  on June  24,  1981,  to  engage  in the  business  of
acquiring,  operating and holding equity  investments in  income-producing  real
estate  properties.  The  operations of EP were financed  substantially  through
nonrecourse  notes (the "Master Loan") from Consolidated  Capital  Institutional
Properties ("CCIP"),  a California limited partnership.  These notes are secured
by the real estate properties owned by EP. The General Partner of CCIP is ConCap
Equities,  Inc. ("CEI"), a Delaware corporation.  In November 1990, EP's general
partners executed a new partnership agreement (the "New Partnership  Agreement")
in  conjunction  with the  bankruptcy  settlement  discussed  below  whereby  EP
converted  from a  general  partnership  to a  California  limited  partnership,
Consolidated  Capital  Equity  Partners,  L.P.  ("CCEP"  or the  "Partnership").
Pursuant to the New Partnership Agreement, ConCap Holding, Inc. ("CHI"), a Texas
corporation,  a wholly-owned  subsidiary of CEI,  became the General  Partner of
CCEP, and the former General Partners of EP became Limited Partners of CCEP. CHI
has full  discretion  with  respect to  conducting  CCEP's  business,  including
managing CCEP's properties and initiating and approving capital expenditures and
asset dispositions and refinancings. All of CEI's outstanding stock was owned by
Insignia  Properties Trust ("IPT").  Effective February 26, 1999, IPT was merged
into Apartment Investment and Management Company ("AIMCO").  Hence, CEI is now a
wholly-owned  subsidiary of AIMCO, a publicly held real estate investment trust.
The  Partnership  Agreement  provides  that the  Partnership  is to terminate on
December 31, 2011, unless terminated prior to such date.

Allocation  of  Profits,  Gains,  and Losses:  Pursuant  to the New  Partnership
Agreement,  net  income  and net losses  for both  financial  and tax  reporting
purposes  are  allocated  99%  to the  Limited  Partners  and 1% to the  General
Partner.

Cash and Cash Equivalents:  Cash and cash equivalents  includes cash on hand and
in banks.  At certain  times,  the amount of cash deposited at a bank may exceed
the limit on insured deposits. Cash balances included approximately $874,000 and
$1,180,000 at December 31, 2002 and 2001,  respectively,  that are maintained by
an  affiliated  management  company  on behalf of  affiliated  entities  in cash
concentration accounts.

Use of Estimates:  The  preparation of financial  statements in conformity  with
accounting   principles   generally  accepted  in  the  United  States  requires
management to make estimates and assumptions that affect the amounts reported in
the financial  statements and  accompanying  notes.  Actual results could differ
from those estimates.

Tenant  Security  Deposits:  The  Partnership  requires  security  deposits from
lessees  for the  duration  of the  lease  and such  deposits  are  included  in
receivables  and  deposits.  Deposits  are  refunded  when the  tenant  vacates,
provided the tenant has not damaged its space and is current on rental payments.

Depreciation:  Depreciation  was provided by the  straight-line  method over the
estimated lives of the apartment  properties and related personal property.  For
Federal income tax purposes,  the  accelerated  cost recovery  method is used 18
years for  additions  after March 15, 1984 and before May 9, 1985,  and 19 years
for additions  after May 8, 1985, and before January 1, 1987. As a result of the
Tax Reform Act of 1986,  for  additions  after  December 31, 1986,  the modified
accelerated  cost recovery method is used for  depreciation of (1) real property
additions over 27 1/2 years and (2) personal property additions over 5 years. No
depreciation was recorded  subsequent to March 31, 2002 due to the conversion to
the liquidation basis of accounting.

Loan Costs: Loan costs were being amortized using the straight-line  method over
the lives of the  respective  loans.  At March 31,  2002,  these loan costs were
written off in the  adjustment  to  liquidation  basis  because the  Partnership
determined that these intangible assets no longer have value.

Advertising:  The  Partnership  expenses the costs of  advertising  as incurred.
Advertising  costs were  approximately  $289,000,  $333,000 and $385,000 for the
years ended December 31, 2002, 2001 and 2000, respectively,  and are included in
operating expense.

Investment Properties: Investment properties consist of four apartment complexes
and were stated at cost.  Acquisition  fees were  capitalized  as a cost of real
estate.  Expenditures  in excess of $250 that maintained an existing asset which
had a useful life of more than one year were capitalized as capital  replacement
expenditures  and  depreciated  over the  estimated  useful  life of the  asset.
Expenditures for ordinary repairs, maintenance and apartment turnover costs were
expensed as incurred.  In  accordance  with  Statement  of Financial  Accounting
Standards  ("SFAS")  No.  144,  "Accounting  for the  Impairment  or Disposal of
Long-Lived  Assets",  the Partnership  recorded  impairment losses on long-lived
assets used in  operations  when  events and  circumstances  indicated  that the
assets  might be  impaired  and the  undiscounted  cash  flows  estimated  to be
generated by those assets were less than the carrying  amounts of those  assets.
Costs of properties that have been  permanently  impaired have been written down
to appraised  value. No adjustments for impairment of value were recorded during
the three  months  ended March 31, 2002 or the years ended  December 31, 2001 or
2000.  As a  result  of  the  Partnership  adopting  the  liquidation  basis  of
accounting,  the  investment  properties  were  adjusted to their  estimated net
realizable  value at March 31, 2002.  The effect of adoption was to increase the
carrying value of the investment properties by approximately $75,868,000.

Leases: The Partnership  generally leases apartment units for twelve-month terms
or less.  The  Partnership  recognizes  income as earned on its leases and fully
reserves all balances  outstanding  over thirty days.  In addition,  the General
Partner's policy is to offer rental concessions during  particularly slow months
or in response to heavy  competition  from other similar  complexes in the area.
Concessions are charged against rental income as incurred.

Income Taxes: No provision has been made in the financial statements for Federal
income  taxes  because,  under  current  law, no Federal  income  taxes are paid
directly by CCEP. The Partners are  responsible for their  respective  shares of
CCEP's net income or loss. CCEP reports certain transactions differently for tax
than for  financial  statement  purposes.  The tax  basis of CCEP's  assets  and
liabilities is approximately $20,979,000 less than and $354,253,000 greater than
the assets and  liabilities as reported in the financial  statements at December
31, 2002 and 2001, respectively.

Fair Value of Financial Instruments: SFAS No. 107, "Disclosures about Fair Value
of  Financial  Instruments",  as amended  by SFAS No.  119,  "Disclosures  about
Derivative  Financial  Instruments  and Fair  Value of  Financial  Instruments",
requires  disclosure  of fair value  information  about  financial  instruments,
whether or not recognized in the balance  sheet,  for which it is practicable to
estimate  fair  value.  Fair value is defined in the SFAS as the amount at which
the  instruments  could be exchanged in a current  transaction  between  willing
parties,  other than in a forced or liquidation  sale. The Partnership  believes
that the carrying  amounts of its  financial  instruments  (except for long term
debt)  approximate  their fair  values due to the short term  maturity  of these
instruments.  The  fair  value  of  the  Partnership's  long  term  debt,  after
discounting the scheduled loan payments to maturity,  approximates  its carrying
balance.

Segment Reporting: SFAS No. 131, "Disclosure about Segments of an Enterprise and
Related  Information"  established  standards  for the way that public  business
enterprises  report  information  about operating  segments in annual  financial
statements and requires that those enterprises report selected information about
operating segments in interim financial reports.  It also established  standards
for related disclosures about products and services, geographic areas, and major
customers.  As  defined in SFAS 131,  the  Partnership  has only one  reportable
segment.

Recent  Accounting  Pronouncements:  In August 2001,  the  Financial  Accounting
Standards Board issued SFAS No. 144,  "Accounting for the Impairment or Disposal
of Long-Lived  Assets".  SFAS No. 144 provides accounting guidance for financial
accounting  and reporting for the  impairment or disposal of long-lived  assets.
SFAS No.  144  supersedes  SFAS  No.  121,  "Accounting  for the  Impairment  of
Long-Lived  Assets and for Long-Lived Assets to be Disposed Of". SFAS No. 144 is
effective for fiscal years  beginning  after December 15, 2001. The  Partnership
adopted SFAS No. 144 effective  January 1, 2002. As a result,  the  accompanying
statements of operations have been restated for the three months ended March 31,
2002,  and the years ended  December 31, 2001 and 2000 to reflect the operations
of Society Park Apartments and Magnolia Trace Apartments and Shirewood Townhomes
as income from discontinued operations.

In April 2002,  the Financial  Accounting  Standards  Board issued SFAS No. 145,
"Recission of FASB Statements No. 4, 44 and 64". SFAS No. 4 "Reporting Gains and
Losses from  Extinguishment  of Debt,"  required  that all gains and losses from
extinguishment  of  debt  be  aggregated  and,  if  material,  classified  as an
extraordinary item. SFAS No. 145 rescinds SFAS No. 4, and accordingly, gains and
losses from extinguishment of debt should only be classified as extraordinary if
they are  unusual in nature and occur  infrequently.  Neither of these  criteria
applies to the  Partnership.  SFAS 145 is effective  for fiscal years  beginning
after May 15, 2002. The Partnership adopted SFAS 145 effective April 1, 2002. As
a result, the accompanying statement of operations for 2000 has been restated to
reflect  the  loss  on  extinguishment  of  debt  from  the  refinancing  of the
Partnership's properties in operations rather than as an extraordinary item.

Note C - Master Loan and Accrued Interest Payable

The  General  Partner  had been in  negotiations  with CCIP with  respect to its
options  which  included  CCIP  foreclosing  on the  properties  in  CCEP  which
collateralize  the Master Loan or extending  the terms of the Master Loan.  CCIP
decided to foreclose on the properties  that  collaterize  the Master Loan. CCIP
began the process of  executing  deeds in lieu of  foreclosure  during the third
quarter of 2002 on all the  investment  properties  of the  Partnership.  During
August 2002 the General Partner executed deeds in lieu of foreclosure on four of
the active  properties of CCEP. In addition,  one of the properties  held by the
Partnership was sold in December 2002. The foreclosure  process on the remaining
four properties held by CCEP is ongoing. As the deeds are executed, title in the
properties  previously  owned by the Partnership are vested in CCIP,  subject to
the existing liens on the properties  including the first mortgage  loans.  As a
result, during the year ended December 31, 2002, CCIP assumed responsibility for
the operations of the foreclosed properties.  When the Partnership no longer has
title to any properties, it will be dissolved.

Until the process of  foreclosure  or executing  deeds in lieu of foreclosure on
all the properties currently held by CCEP is completed,  interest will accrue on
the Master Loan at a fluctuating rate per annum, adjusted annually on July 15 by
the percentage change in the U.S. Department of Commerce Implicit Price Deflator
for the Gross  National  Product,  subject to an interest rate ceiling of 12.5%.
Payments  are  currently  payable  quarterly  in an amount equal to "Excess Cash
Flow",  generally  defined in the Master  Loan as net cash flow from  operations
after third-party debt service and capital expenditures.  Any unpaid interest is
added to principal,  and compounded annually.  Any net proceeds from the sale or
refinancing of any of CCEP's  properties are paid to CCIP under the terms of the
Master Loan Agreement.

During  the  years  ended  December  31,  2002,   2001,  and  2000,   CCEP  paid
approximately $1,719,000,  $7,801,000,  and $33,634,000 in principal payments on
the Master Loan.  Approximately $88,000,  $357,000, and $238,000 was paid during
the years ended  December 31, 2002,  2001, and 2000  respectively,  representing
cash received on certain investments. These funds are required to be transferred
to CCIP under the terms of the Master Loan.  In addition,  during the year ended
December 31,  2002,  approximately  $1,631,000  was paid  representing  proceeds
received  from the sale of  Society  Park  Apartments.  For 2001,  approximately
$6,019,000  was paid  representing  net proceeds from the sale of Magnolia Trace
Apartments  and  approximately   $1,425,000  was  paid  representing  additional
proceeds  received for the refinancing of the mortgages  encumbering nine of the
investment  properties  in 2000.  For 2000,  approximately  $4,526,000  was paid
representing net proceeds from the sale of Shirewood Townhomes and approximately
$28,870,000 was received  representing net proceeds received for the refinancing
of the mortgages  encumbering nine of the investment  properties.  There were no
advances on the Master Loan during the years ended  December 31,  2002,  2001 or
2000. See Notes D and G for details concerning the refinancings and the sales of
Society Park  Apartments,  Magnolia Trace  Apartments,  and Shirewood  Townhomes
Apartments, respectively.


Note D - Mortgage Notes Payable

The principal terms of mortgage notes payable are as follows:

                       Principal    Monthly                         Principal
                      Balance At    Payment    Stated                Balance
                     December 31,  Including  Interest  Maturity      Due At
      Property           2002      Interest     Rate      Date       Maturity
                                                         (in
                                                     thousands)

Palm Lake
  1st Mortgage          $ 2,853      $ 25      7.86%    02/01/10     $ 2,158
Plantation Gardens
  1st Mortgage            9,245         80     7.83%    03/01/10       6,972
Regency Oaks
   1st Mortgage           7,274         63     7.80%    02/01/10       5,494
The Dunes
  1st Mortgage            3,918         34     7.81%    02/01/10       2,960
      Total            $ 23,290      $ 202                           $17,584

The mortgage  notes  payable are  non-recourse  and are secured by pledge of the
respective  apartment  properties  and by pledge of revenues from the respective
apartment  properties.  The  mortgage  notes  are  senior  to the  Master  Loan.
Prepayment  penalties  are required if repaid prior to  maturity.  Further,  the
properties may not be sold subject to existing indebtedness.

On September 29, 2000, the Partnership  refinanced the mortgage  encumbering The
Dunes  Apartments.   The  refinancing  replaced  indebtedness  of  approximately
$1,945,000  with a new  mortgage in the amount of  $4,120,000.  The new mortgage
carries a stated interest rate of 7.81%. Interest on the old mortgage was 6.95%.
Principal  and  interest  payments  are due  monthly  until the loan  matures on
February 1, 2010 at which time a balloon payment of approximately  $2,960,000 is
due. Total  capitalized loan costs were  approximately  $111,000 during the year
ended  December 31, 2000.  Approximately  $10,000 of additional  loan costs were
capitalized during the year ended December 31, 2001. The Partnership  recognized
a loss on the early extinguishment of debt of approximately  $134,000 due to the
write-off of unamortized loan costs and a prepayment penalty.

On September 29, 2000, the Partnership  refinanced the mortgage encumbering Palm
Lake  Apartments.   The  refinancing  replaced   indebtedness  of  approximately
$1,653,000  with a new  mortgage in the amount of  $3,000,000.  The new mortgage
carries a stated interest rate of 7.86%. Interest on the old mortgage was 6.95%.
Principal  and  interest  payments  are due  monthly  until the loan  matures on
February 1, 2010 at which time a balloon payment of approximately  $2,158,000 is
due. Total  capitalized  loan costs were  approximately  $93,000 during the year
ended December 31, 2000.

Approximately  $7,000 of additional loan costs were capitalized  during the year
ended  December  31,  2001.  The  Partnership  recognized  a loss  on the  early
extinguishment  of  debt  of  approximately  $118,000  due to the  write-off  of
unamortized loan costs and a prepayment penalty.

On September 29, 2000, the Partnership refinanced the mortgage encumbering Tates
Creek Village Apartments. The refinancing replaced indebtedness of approximately
$2,455,000  with a new  mortgage in the amount of  $4,225,000.  The new mortgage
carried a stated interest rate of 7.78%. Interest on the old mortgage was 6.95%.
Principal and interest payments were due monthly until the loan matured on April
1, 2010 at which time a balloon  payment of  approximately  $3,017,000  was due.
Total capitalized loan costs were  approximately  $101,000 during the year ended
December  31,  2000.   Approximately  $13,000  of  additional  loan  costs  were
capitalized during the year ended December 31, 2001. The Partnership  recognized
a loss on the early extinguishment of debt of approximately  $155,000 due to the
write-off of unamortized loan costs and a prepayment penalty.  This property was
foreclosed  by CCIP during the year ended  December 31,  2002.  See "Note C" for
further discussion.

On September 29, 2000, the Partnership  financed a mortgage  encumbering Society
Park Apartments.  The mortgage debt totaled  $5,330,000.  The mortgage carries a
stated interest rate of 7.80%.  Principal and interest payments were due monthly
until the loan  matures on February  1, 2010 at which time a balloon  payment of
approximately   $3,828,000   was  due.   Total   capitalized   loan  costs  were
approximately  $154,000  during the year ended December 31, 2000.  Approximately
$8,000 of additional loan costs were capitalized  during the year ended December
31,  2001.  This  property was sold in December  2002.  See "Note G" for further
discussion.

On September 29, 2000, the Partnership  financed a mortgage  encumbering Regency
Oaks Apartments.  The mortgage debt totaled  $7,650,000.  The mortgage carries a
stated interest rate of 7.80%.  Principal and interest  payments are due monthly
until the loan  matures on February  1, 2010 at which time a balloon  payment of
approximately $5,494,000 is due. Total capitalized loan costs were approximately
$209,000  during the year ended  December  31,  2000.  Approximately  $13,000 of
additional loan costs were capitalized during the year ended December 31, 2001.

On  October  3,  2000,  the  Partnership  refinanced  the  mortgage  encumbering
Plantation  Gardens  Apartments.   The  refinancing  replaced   indebtedness  of
approximately  $6,704,000  with a new mortgage in the amount of $9,700,000.  The
new  mortgage  carries  a stated  interest  rate of 7.83%.  Interest  on the old
mortgage was 6.95%.  Principal  and interest  payments are due monthly until the
loan matures on March 1, 2010 at which time a balloon  payment of  approximately
$6,972,000 is due.  Total  capitalized  loan costs were  approximately  $219,000
during the year ended  December 31, 2000.  Approximately  $13,000 of  additional
loan  costs  were  capitalized  during the year ended  December  31,  2001.  The
Partnership   recognized  a  loss  on  the  early   extinguishment  of  debt  of
approximately  $428,000  due to the  write-off of  unamortized  loan costs and a
prepayment penalty.

On October 3, 2000, the Partnership  refinanced the mortgage  encumbering Indian
Creek  Apartments.   The  refinancing  replaced  indebtedness  of  approximately
$4,438,000  with a new  mortgage in the amount of  $8,750,000.  The new mortgage
carries a stated interest rate of 7.83%. Interest on the old mortgage was 6.95%.
Principal  and  interest  payments  were due monthly  until the loan  matures on
January 1, 2010 at which time a balloon  payment of  $6,351,000  was due.  Total
capitalized  loan  costs  were  approximately  $190,000  during  the year  ended
December  31,  2000.   Approximately  $13,000  of  additional  loan  costs  were
capitalized during the year ended December 31, 2001. The Partnership  recognized
a loss on the early extinguishment of debt of approximately  $260,000 due to the
write-off of unamortized loan costs and a prepayment penalty.  This property was
foreclosed  by CCIP during the year ended  December 31,  2002.  See "Note C" for
further discussion.

On October 3, 2000, the Partnership  financed a mortgage  encumbering  Silverado
Apartments.  The new mortgage is in the amount of  $3,525,000.  The new mortgage
carries a stated  interest rate of 7.87%.  Principal and interest  payments were
due monthly  until the loan  matures on November 1, 2010 at which time a balloon
payment of approximately  $2,434,000 was due. Total  capitalized loan costs were
approximately  $107,000  during the year ended December 31, 2000.  Approximately
$9,000 of additional loan costs were capitalized  during the year ended December
31, 2001.  This property was  foreclosed by CCIP during the year ended  December
31, 2002. See "Note C" for further discussion.

On October 11, 2000, the  Partnership  refinanced the mortgage  encumbering  The
Knolls  Apartments.  The  refinancing  replaced  indebtedness  of  approximately
$5,116,000  with a new  mortgage in the amount of  $9,900,000.  The new mortgage
carries a stated interest rate of 7.78%. Interest on the old mortgage was 6.95%.
Principal and interest payments were due monthly until the loan matures on March
1, 2010 at which time a balloon  payment of  approximately  $7,105,000  was due.
Total capitalized loan costs were  approximately  $218,000 during the year ended
December  31,  2000.   Approximately  $13,000  of  additional  loan  costs  were
capitalized during the year ended December 31, 2001. The Partnership  recognized
a loss on the early extinguishment of debt of approximately  $315,000 due to the
write-off of unamortized loan costs and a prepayment penalty.  This property was
foreclosed  by CCIP during the year ended  December 31,  2002.  See "Note C" for
further discussion.

Included in the loan costs  capitalized  associated with the above  transactions
was a 1% fee of  approximately  $560,000 paid in 2000 to the General  Partner in
accordance with the terms of the Partnership Agreement.

Principal payments on mortgage notes payable are due as follows (in thousands):

              Years Ending December 31,
                         2003              $   624
                         2004                  675
                         2005                  729
                         2006                  788
                         2007                  852
                      Thereafter            19,622
                                           $23,290

Note E - Related Party Transactions

The Partnership has no employees and is dependent on the General Partner and its
affiliates for the management and administration of all Partnership  activities.
The New Partnership  Agreement  provides for (i) certain  payments to affiliates
for services and (ii)  reimbursement of certain expenses  incurred by affiliates
for services.

Affiliates of the General  Partner are entitled to receive 5% of gross  receipts
from all of the  Partnership's  residential  properties  for providing  property
management  services.  The  Partnership  paid to such  affiliates  approximately
$729,000,  $964,000 and $985,000 for the years ended December 31, 2002, 2001 and
2000, respectively which is included in operating expense.

The  Partnership  is  also  required  to pay an  investment  advisory  fee to an
affiliate of the General  Partner.  This  agreement  provides for an annual fee,
payable in monthly  installments,  to an  affiliate  of the General  Partner for
advising and consulting services for CCEP's properties.  The Partnership paid to
such  affiliates  approximately  $107,000,  $214,000  and $179,000 for the years
ended  December  31,  2002,  2001 and 2000,  respectively  which is  included in
general and administrative expense.

Affiliates  of  the  General  Partner  received   reimbursement  of  accountable
administrative  expenses  amounting to  approximately  $321,000,  $1,486,000 and
$548,000  for the years ended  December 31,  2002,  2001 and 2000,  respectively
which  is  included  in  general  and  administrative  expenses  and  investment
properties.   Included  in  these  amounts  are  fees  related  to  construction
management  services  provided  by  an  affiliate  of  the  General  Partner  of
approximately  $86,000,  $990,000 and $112,000 for the years ended  December 31,
2002, 2001 and 2000, respectively.  The construction management service fees are
calculated  based on a  percentage  of  current  year  additions  to  investment
properties.

In  connection  with the sale of Society  Park in  December  2002,  the  General
Partner earned a fee of $218,000 in  compensation  for its role in the sale. The
fee was paid  subsequent to December 31, 2002.  In  connection  with the sale of
Magnolia Trace in 2001 and Shirewood  Townhomes in 2000 the General  Partner was
paid a fee of $206,000 and $133,000,  respectively, in compensation for its role
in the sales.

In connection with the refinancing of each of its mortgages and the financing of
its unencumbered  investment properties during 2000, the Partnership paid to the
General Partner fees totaling $560,000 for its role in the  transactions.  These
fees were  capitalized  as loan costs.  These loan costs were written off in the
adjustment to liquidation basis. See "Note A" for further discussion.

In addition to the compensation  and  reimbursements  described above,  interest
payments are made to and loan  advances are received  from CCIP.  Such  interest
payments totaled approximately $386,000, $3,280,000 and $2,000,000 for the years
ended  December 31, 2002,  2001 and 2000,  respectively.  There were no advances
during 2002, 2001 or 2000.  Principal payments totaling  $1,719,000,  $7,801,000
and  $33,634,000  were made during the years ended  December 31, 2002,  2001 and
2000, respectively.

In  accordance  with the  Partnership  Agreement,  an  affiliate  of the General
Partner  loaned  the  Partnership  approximately  $19,000  during  2002 to cover
operating  expenses at The Dunes and Plantation Gardens  Apartments.  The entire
balance was repaid during the year ended December 31, 2002. Interest was charged
at the prime rate plus 2% and  amounted  to less than  $1,000 for the year ended
December 31, 2002.  There were no loans from the General  Partner or  associated
interest expense during the years ended December 31, 2001 and 2000.

Beginning in 2001, the  Partnership  began insuring its properties up to certain
limits through coverage provided by AIMCO which is generally  self-insured for a
portion of losses and  liabilities  related  to workers  compensation,  property
casualty and vehicle liability. The Partnership insures its properties above the
AIMCO  limits  through  insurance  policies  obtained  by  AIMCO  from  insurers
unaffiliated with the General Partner.  During the years ended December 31, 2002
and 2001, the Partnership paid AIMCO and its affiliates  approximately  $155,000
and  $259,000 for  insurance  coverage and fees  associated  with policy  claims
administration.

Note F - Investment Properties and Accumulated Depreciation

The  investment  properties  owned by the  Partnership  consist of the following
(dollar amounts in thousands):




                                     Building
   December 31, 2002                & Related
                                     Personal                Accumulated   Depreciable
      Description          Land      Property     Total     Depreciation    Life-Years

                                                             
Palm Lake                $   308     $ 3,992    $ 4,300       $    -- (1)      (1)
Plantation Gardens         7,982      11,318     19,300            -- (1)      (1)
Regency Oaks                 521       8,779      9,300            -- (1)      (1)
The Dunes                    489       5,111      5,600            -- (1)      (1)
Total                    $ 9,300     $29,200    $38,500       $    --


(1)   As a result of adopting the liquidation of accounting,  the gross carrying
      value of the properties  were adjusted to their net  realizable  value and
      will not be depreciated further.




                                     Building
    December 31, 2001                & Related
                                     Personal                Accumulated   Depreciable
       Description          Land     Property      Total    Depreciation   Life-Years

                                                               
Indian Creek Village      $ 1,041    $ 9,454     $10,495       $ 8,202        5-18
The Knolls                    647      8,700       9,347         6,832        5-18
Palm Lake                     272      5,394       5,666         4,512        5-18
Plantation Gardens          1,958     14,949      16,907        13,315        5-18
Regency Oaks                  521     12,254      12,775        10,333        5-18
Silverado                     628      5,590       6,218         4,700        5-18
Society Park                  966      9,691      10,657         8,561        5-18
The Dunes                     489      6,090       6,579         4,992        5-18
Tates Creek Village           382      8,277       8,659         6,868        5-18
Total                     $ 6,904    $80,399     $87,303       $68,315


Note G - Sale of Investment Properties

On December 31, 2002,  the  Partnership  sold  Society  Park,  located in Tampa,
Florida,  to an unaffiliated third party for net sales proceeds of approximately
$1,631,000,  after payment of closing  costs.  The  Partnership  used all of the
proceeds from the sale of the property to pay down the Master Loan  principal as
required by the Master Loan  Agreement.  The sale  resulted in a gain on sale of
investment property of approximately  $727,000.  In conjunction with the sale, a
fee of  approximately  $218,000 was earned by the General  Partner in accordance
with the  Partnership  Agreement.  The fee was paid  subsequent  to December 31,
2002.

On January 19, 2001,  the  Partnership  sold  Magnolia  Trace,  located in Baton
Rouge,  Louisiana,  to an  unaffiliated  third  party for net sales  proceeds of
approximately  $6,019,000,  after payment of closing costs. The Partnership used
all of the  proceeds  from the sale of the  property to pay down the Master Loan
principal as required by the Master Loan Agreement.  The sale resulted in a gain
on sale of investment property of approximately  $4,377,000. In conjunction with
the sale, a fee of  approximately  $206,000  was paid to the General  Partner in
accordance with the Partnership Agreement.

On  July  21,  2000  the  Partnership  sold  Shirewood  Townhomes,   located  in
Shreveport,  Louisiana, to an unaffiliated third party for net sales proceeds of
approximately  $4,526,000,  after payment of closing costs. The Partnership used
all of the  proceeds  from the sale of the  property to pay down the Master Loan
principal as required by the Master Loan Agreement.  The sale resulted in a gain
on sale of investment property of approximately  $3,121,000. In conjunction with
the sale, a fee of  approximately  $133,000  was paid to the General  Partner in
accordance with the Partnership Agreement.

Note H - Investment in Affiliated Partnerships

The Partnership had investments in the following affiliated partnerships:



                                                                        Estimated
                                                      Ownership       Net Realizable
Partnership                    Type of Ownership      Percentage          Value

Consolidated Capital            Non-controlling
                                                                     
  Growth Fund                   General Partner         0.40%              $ 47
Consolidated Capital            Non-controlling
  Properties III                General Partner         1.85%                 27
Consolidated Capital            Non-controlling
  Properties IV                 General Partner         1.85%                844

                                                                           $ 918

Prior to the adoption of the  liquidation  basis of accounting,  the Partnership
did  not  recognize  an  investment  in  these  affiliated  partnerships  in its
consolidated  financial statements as these investment balances had been reduced
to  zero as a  result  of the  receipt  of  distributions  from  the  affiliated
partnerships  in  prior  periods   exceeding  the  investment   balance  of  the
Partnership.   However,  due  to  the  adoption  of  the  liquidation  basis  of
accounting,  the  investments in these  affiliated  partnerships  were valued at
their  estimated  fair value and included in the  Consolidated  Statement of Net
Liabilities  in  Liquidation.  During the year  ended  December  31,  2002 these
investments  were  assigned  to CCIP as part of the  foreclosure  process of the
assets of CCEP (see "Note A").

Note I - Selected Annual Financial Data (unaudited)




                                       Year Ended December 31, 2001 (restated)
                                    1st         2nd       3rd        4th
                                  Quarter     Quarter   Quarter    Quarter    Total

                                                             
Revenues                        $  2,178    $  2,285   $  2,717  $  1,855   $  9,035
Expenses                          12,941      12,901     12,995    12,358     51,195
Gain sale of discontinued
  operations                       4,377          --         --        --      4,377
Income from discontinued
  operations                         158         184        255       296        893

Net loss                        $ (6,228)   $(10,432)  $(10,023) $(10,207)  $(36,890)