Exhibit (a)

                         Century Properties Fund XVII

                                                              August 28, 1997


Dear Limited Partner:

                  Enclosed is the Schedule 14D-9 which was filed by Century
Properties Fund XVII (the "Partnership") with the Securities and Exchange
Commission in connection with an offer (the "Offer") by IPLP Acquisition I
LLC, a Delaware limited liability company (the "Purchaser"), Insignia
Properties, L.P., a Delaware limited partnership ("IPLP"), Insignia Properties
Trust, a Maryland real estate investment trust ("IPT") and Insignia Financial
Group, Inc., a Delaware corporation ("Insignia," and together with IPLP, IPT
and the Purchaser, the "Bidders"), to purchase limited partnership units
("Units") of the Partnership.

                  The Partnership's sole general partner (the "General
Partner") is Fox Partners II, a California general partnership and an
affiliate of the Bidders. Due to the affiliation between the General Partner
of the Partnership and the Bidders, the General Partner is subject to certain
conflicts of interest in connection with the response to the Offer.

                  AS A RESULT OF THE EXISTING AND POTENTIAL CONFLICTS OF
INTEREST, NEITHER THE PARTNERSHIP NOR THE GENERAL PARTNER EXPRESSES ANY
OPINION AS TO THE OFFER AND EACH IS REMAINING NEUTRAL AND MAKING NO
RECOMMENDATION AS TO WHETHER UNIT HOLDERS SHOULD TENDER THEIR UNITS IN
RESPONSE TO THE OFFER.

                  Limited partners are advised to carefully read the enclosed
Schedule 14D-9.


                                                  Century Properties Fund XVII