SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

For the Quarterly Period Ended SEPTEMBER 30, 1996

Commission File Number 33-22857

CENTURY HILLCRESTE APARTMENT INVESTORS, L.P.
(A California Limited Partnership)

I.R.S. Employer Identification No. 95-4166241

9090 WILSHIRE BLVD., SUITE 201
BEVERLY HILLS, CALIF. 90211

Registrant's Telephone Number,
Including Area Code (310) 278-2191

Indicate by check mark whether the registrant (1) has filed all documents and
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding twelve 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
---- ----
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CENTURY HILLCRESTE APARTMENT INVESTORS, L.P.
(A CALIFORNIA LIMITED PARTNERSHIP)

INDEX TO FORM 10-Q

FOR THE QUARTER ENDED SEPTEMBER 30, 1996

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements and Notes to Financial Statements

Balance Sheets, September 30, 1996 and December 31, 1995 . . . . . . . . . . . . . . 1

Statements of Operations,
Nine and Three Months Ended September 30, 1996 and 1995 . . . . . . . . . . . 2

Statement of Partners' Capital (Deficiency)
Nine Months Ended September 30, 1996 . . . . . . . . . . . . . . . . . . . . 3

Statements of Cash Flows
Nine Months Ended September 30, 1996 and 1995 . . . . . . . . . . . . . . . . 4

Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations . . . . . . . . . . . . . . . . . . . . 11

PART II. OTHER INFORMATION

Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . . . . . . . . . 13

Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

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CENTURY HILLCRESTE APARTMENTS INVESTORS, L.P.
(A CALIFORNIA LIMITED PARTNERSHIP)

BALANCE SHEETS

SEPTEMBER 30, 1996 AND DECEMBER 31, 1995

ASSETS

1996 1995
(Unaudited) (Audited)
------------- -------------

RENTAL PROPERTY (Notes 1, 2 and 3) $ 34,248,165 $ 34,772,331

CASH AND CASH EQUIVALENTS (Note 1) 3,596,995 2,738,045

RESTRICTED CASH (Notes 1 and 4) 158,700 158,700

OTHER ASSETS (Note 5) 92,512 15,102

------------- -------------

$ 38,096,372 $ 37,684,178
============= =============

LIABILITIES AND PARTNERS' CAPITAL

ACCOUNTS PAYABLE AND ACCRUED
LIABILITIES (Note 3) $ 579,132 $ 359,359

DUE TO GENERAL PARTNER (Note 3) - 150,000

PREPAID RENT 70,445 46,965

SECURITY DEPOSITS 328,526 310,099
------------- -------------

978,103 866,423

COMMITMENTS AND CONTINGENCIES (Note 4)

PARTNERS' CAPITAL (Note 1) 37,118,269 36,817,755
------------- -------------

$ 38,096,372 $ 37,684,178
============= =============

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

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CENTURY HILLCRESTE APARTMENTS INVESTORS, L.P.
(A CALIFORNIA LIMITED PARTNERSHIP)

STATEMENTS OF INCOME

NINE AND THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995

(Unaudited)

Nine months Three months Nine months Three months
ended ended ended ended
Sept. 30, 1996 Sept. 30, 1996 Sept. 30, 1995 Sept. 30, 1995
--------------- --------------- --------------- ---------------

REVENUES
Rental income $ 3,966,912 $ 1,364,743 $ 4,045,047 $ 1,353,957
Interest and other income (Notes 1 and 3) 178,793 46,967 368,163 177,432
--------------- --------------- --------------- ---------------

4,145,705 1,411,710 4,413,210 1,531,389
--------------- --------------- --------------- ---------------

EXPENSES
Operating (Note 3) 859,409 333,754 993,132 288,079
Property taxes 312,340 178,818 408,076 134,741
Management fee - related party
in 1995 (Note 3) 150,550 71,038 142,543 41,026
General and administrative (Note 3) 325,400 90,870 440,256 226,788
Depreciation 529,166 176,389 536,667 178,889
Earthquake loss - - 25,000 25,000
--------------- --------------- --------------- ---------------

2,176,865 850,869 2,545,674 894,523
--------------- --------------- --------------- ---------------

NET INCOME $ 1,968,840 $ 560,841 $ 1,867,536 $ 636,866
=============== =============== =============== ===============

NET INCOME PER LIMITED
PARTNERSHIP INTEREST $ 0.27 $ 0.08 $ 0.26 $ 0.09
=============== =============== =============== ===============

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

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CENTURY HILLCRESTE APARTMENTS INVESTORS, L.P.
(A CALIFORNIA LIMITED PARTNERSHIP)

STATEMENT OF PARTNERS' CAPITAL (DEFICIENCY)

NINE MONTHS ENDED SEPTEMBER 30, 1996

(Unaudited)

Special Limited
General Limited Partner
Partners Partners (Note 1) Total
------------- ------------- --------------- -------------

PARTNERSHIP INTERESTS,
September 30, 1996 7,258,000
=============

BALANCE, January 1, 1996 $ (287,786) $ 37,105,541 $ - $ 36,817,755

Distributions (11,250) (1,657,076) - (1,668,326)

Net income for the nine months
ended September 30, 1996 19,688 1,949,152 - 1,968,840
------------- ------------- --------------- -------------

BALANCE, September 30, 1996 $ (279,348) $ 37,397,617 $ - $ 37,118,269
============= ============= ================ =============

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

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CENTURY HILLCRESTE APARTMENTS INVESTORS, L.P.
(A CALIFORNIA LIMITED PARTNERSHIP)

STATEMENTS OF CASH FLOWS

NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995

(Unaudited)

1996 1995
------------ ------------

CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 1,968,840 $ 1,867,536
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 529,166 536,667
(Increase) decrease in other assets (77,410) 289,098
Increase (decrease) in accounts payable and
accrued liabilities 219,773 (575,688)
Decrease in due to general partner (150,000) (91,331)
Increase (decrease) in security deposits 18,427 (3,808)
Increase (decrease) in prepaid rent 23,480 (6,251)
------------ ------------

Net cash provided by operating activities 2,532,276 2,016,223
------------ ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in fixed assets (180,000) -
Payments pursuant to the minimum distribution guarantee 175,000 175,000
Distributions to partners (1,668,326) (1,628,576)
------------ ------------

NET INCREASE IN CASH AND CASH EQUIVALENTS 858,950 562,647

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 2,738,045 2,425,486
------------ ------------

CASH AND CASH EQUIVALENTS, END OF PERIOD $ 3,596,995 $ 2,988,133
============ ============

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

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CENTURY HILLCRESTE APARTMENT INVESTORS, L.P.
(A CALIFORNIA LIMITED PARTNERSHIP)

NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 1996

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

GENERAL

The information contained in the following notes to the financial
statements is condensed from that which would appear in the annual
financial statements; accordingly, the financial statements included
herein should be reviewed in conjunction with the financial statements
and related notes thereto contained in the Annual Report for the year
ended December 31, 1995 prepared by Century HillCreste Apartment
Investors, L.P. (the "Partnership"). Accounting measurements at
interim dates inherently involve greater reliance on estimates than at
year end. The results of operations for the interim periods presented
are not necessarily indicative of the results for the entire year.

In the opinion of NAPICO, the accompanying unaudited financial
statements contain all adjustments (consisting primarily of normal
recurring accruals) necessary to present fairly the financial position
as of September 30, 1996, and the results of operations for the nine
and three months then ended and changes in cash flows for the nine
months then ended.

ORGANIZATION

The Partnership, a California limited partnership, was formed on June
6, 1988, with National Partnership Investments Corp. ("NAPICO" or the
"Managing General Partner"), and HillCreste Properties Inc. (the
Non-Managing General Partner") as general partners. On October 26,
1988, the Partnership issued to investors (the "Limited Partners")
7,258,000 depositary units (each depositary unit being entitled to the
beneficial interest of a limited partnership interest) for a total
amount raised of $72,580,000, through a public offering.

Concurrent with the issuance of the depositary units, the Partnership
purchased a 315-unit luxury apartment complex in West Los Angeles,
California (the "Property") from Casden Properties (hereinafter
referred to as the "Seller"), an affiliate of the Managing General
Partner. To complete the purchase of the Property, the Seller
purchased a 10% special limited partnership interest in the
Partnership for $6,855,000. For its contribution, the Seller has
rights to receive an allocation of the Partnership's net cash from
operations after the Limited Partners receive a specified priority
return, all as more particularly set forth in the Partnership
Agreement.

Among other provisions, the Partnership Agreement provides that the
10% special limited partnership interest is subordinate to the other
Limited Partners' specified priority return in the case of
distributions of net cash flow from operations, plus the other Limited
Partners' return of capital in the case of net sales or refinancing
proceeds.

Casden Investment Corporation, an affiliate of the Seller, owns all of
the outstanding common stock of NAPICO. DA Group Holdings Inc. owns
100% of the stock of HillCreste Properties Inc.

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CENTURY HILLCRESTE APARTMENT INVESTORS, L.P.
(A CALIFORNIA LIMITED PARTNERSHIP)

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

SEPTEMBER 30, 1996

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

USE OF ESTIMATES

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

MINIMUM DISTRIBUTION GUARANTEE

The Minimum Distribution Guarantee Agreement (the "Guarantee
Agreement") required the Seller, who is also the special limited
partner of the Partnership, to make certain payments to the
Partnership, if and when necessary, in an amount sufficient to enable
the Partnership to provide the Limited Partners with distributions
sufficient to achieve a minimum annual return based upon the Limited
Partners' investment in the Partnership, through December 31, 1993, as
follows:

Years Ended December 31, Annual Return on Investment
------------------------ ---------------------------

1988 8.0%

1989 8.0%

1990 8.5%

1991 9.0%

1992 9.0%

1993 9.0%

Pursuant to a Memorandum of Understanding entered into on August 11,
1995, the Seller agreed to pay to the Partnership the sum of $350,000
in two equal installments of $175,000 each; the first such $175,000
payment was made in August 1995 and the second payment was made in May
1996. These payments represent the amount of a real estate tax refund
received in 1994 for overpayment of prior year taxes which had
previously been offset against amounts receivable from the Seller
under the Guarantee Agreement.

Through September 30, 1996, the Seller has funded a total of
$13,130,998 directly to the Partnership for distributions to the
Limited Partners pursuant to the Guarantee Agreement, which amount
includes the $350,000 referred to above. The period covered by the
Guarantee Agreement expired on December 31, 1993. Except with respect
to the payments made pursuant to the Memorandum of Understanding,
commencing in 1994, distributions, if any, to the Partners are made
from cash flow from operations. The minimum distribution guarantee
payments from the Seller have been reflected as a reduction in the
carrying amount of the Property.

In addition, in August 1995, the Seller made an additional payment of
$135,000 to the Partnership pursuant to the Memorandum of
Understanding, which amount represents interest on late payments to
the Partnership made pursuant to the Guarantee Agreement covering the
period from the second quarter of 1991 to the fourth quarter of 1993.

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CENTURY HILLCRESTE APARTMENT INVESTORS, L.P.
(A CALIFORNIA LIMITED PARTNERSHIP)

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

SEPTEMBER 30, 1996

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

DEPRECIATION

Depreciation is reported using the straight-line method over the
estimated useful lives of the buildings and equipment as follows:

Buildings 35 years
Furniture and equipment 5 years

CASH AND CASH EQUIVALENTS

Cash and cash equivalents consists of cash and bank certificates of
deposit with an original maturity of three months or less.

RESTRICTED CASH

Restricted cash consists of bank certificates of deposits assigned to
the City of Los Angeles in lieu of purchasing a subdivision
improvement bond to effectuate the privatization of streets located
within the Property's perimeter (see Note 4).

INCOME TAXES

No provision has been made for income taxes in the accompanying
financial statements as such taxes, if any, are the liability of the
individual partners.

NET INCOME PER LIMITED PARTNERSHIP UNIT

Net income per limited partner unit was computed by dividing the
limited partners' share of net income (99%) by the number of limited
partner units outstanding during the year. The number of limited
partner units was 7,258,000 for the periods presented.

RECLASSIFICATIONS

Certain reclassifications have been made in the 1995 financial
statements to conform to the 1996 presentation.

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CENTURY HILLCRESTE APARTMENT INVESTORS, L.P.
(A CALIFORNIA LIMITED PARTNERSHIP)

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

SEPTEMBER 30, 1996

NOTE 2 - RENTAL PROPERTY

At September 30, 1996 and December 31, 1995, the rental property
consists of the following:

1996 1995
------------ ------------

Land $ 16,175,000 $ 16,175,000
Building 24,694,402 24,869,402
Furniture and equipment 3,870,000 3,870,000
Exterior improvements in progress 180,000 -
------------ ------------
44,919,412 44,914,402

Less accumulated depreciation (10,671,237) 10,142,071
------------ ------------

$ 34,248,165 $ 34,772,331
============ ============

Payments made pursuant to the Guarantee Agreement have been reflected
as a reduction in the carrying value of the Property (see Note 1).

NOTE 3 - FEES PAID TO GENERAL PARTNERS AND AFFILIATES

In accordance with the Partnership Agreement certain fees and
reimbursements are paid to the general partners and their affiliates
as follows:

(a) A Partnership management fee payable to the Managing General
Partner of $50,000 annually. The fee is included in general
and administrative expenses.

(b) Through December 31, 1995, the Property was managed by an
affiliate of the Managing General Partner for a fee of 3% of
rental revenue (5% prior to February 1, 1995). The property
management was transferred to an unaffiliated agent, on
January 1, 1996, who manages the property for a management fee
of 3% of rental revenue.

(c) Partnership expense reimbursements, payable to the
Non-Managing General Partner, not to exceed $50,000 annually.
The 1990 reimbursement has been accrued and is included in
accounts payable and accrued liabilities at September 30, 1996
and December 31, 1995. The Non-Managing General partner has
requested reimbursement for expenses for 1991 through
September 30, 1996, however, the Managing General Partner is
disputing such reimbursement and none have been accrued.

(d) The Partnership is obligated to pay fees to the Managing
General Partner or its affiliates upon sale of the Property
based upon the form of such sale. The payment of such fees
are subordinated to certain preferred returns to the Limited
Partners.

(e) 1% of distributions (as defined in the Partnership Agreement)
is payable quarterly to the Managing General Partner.

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CENTURY HILLCRESTE APARTMENT INVESTORS, L.P.
(A CALIFORNIA LIMITED PARTNERSHIP)

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

SEPTEMBER 30, 1996

NOTE 3 - FEES PAID TO GENERAL PARTNERS AND AFFILIATES (CONTINUED)

(f) Due to the complexity of the storm drain work (Note 4), an
affiliate of the Operating General Partner is providing
construction supervision of the storm drain improvements at a
cost not to exceed $1,820.

(g) Pursuant to the Memorandum of Understanding entered into on
August 11, 1995, the previously affiliated management company
paid to the Partnership $8,095 in interest on May 1, 1996,
related to funds it maintained in a master disbursement
account, and the Seller made payments to the Partnership in
the amount of $485,000, as more particularly described above.
In addition, the Partnership on May 1, 1996 reimbursed the
Non-Managing General Partner $90,000 for professional fees,
which were estimated to have been paid on behalf of the
Partnership in connection with issues raised in the Memorandum
of Understanding.

NOTE 4 - COMMITMENTS AND CONTINGENCIES

a. Approvals from the City of Los Angeles were obtained to
"privatize" the streets and alleys providing access to the
Property and to construct wrought iron security fencing with
controlled entrances into the Property. The final resolution
vacating the streets and alleys was approved by the City on
December 31, 1994. Landscape and architectural drawings have
been prepared for the construction of the perimeter fencing
and related improvements, including a guardhouse at the
Ambassador Street entrance and a directory/trellis at the
Peerless Street location. These plans were approved and a
building permit was issued by the City of Los Angeles on June
20, 1995. This permit was to expire on December 20, 1995,
however, an extension to December 31, 1996 was approved.

As a condition to its approval of the proposed
"privatization", the City of Los Angeles requires the
construction of a storm drain and related improvements, for
which an improvement agreement and guarantee in the amount
$158,000 has been filed with the City of Los Angeles. The
Partnership has pledged a Certificate of Deposit in such
amount to the City to secure the improvement guarantee.
Contracts in the amount of $683,000 and $49,975 have been
awarded to construct the wrought iron security fencing and to
construct a storm drain and related improvements,
respectively, for which construction work has commenced in
September 1996. As of September 30, 1996, $180,000 has been
paid to the contractor.

b. The Managing General Partner of the Partnership is a plaintiff
in various lawsuits and has also been named as a defendant in
other lawsuits arising from transactions in the ordinary
course of business. In the opinion the Managing General
Partner, the claims will not result in any material liability
to the Partnership.

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CENTURY HILLCRESTE APARTMENT INVESTORS, L.P.
(A CALIFORNIA LIMITED PARTNERSHIP)

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

SEPTEMBER 30, 1996

NOTE 5 - FAIR VALUE OF FINANCIAL INSTRUMENTS

Statement of Financial Accounting Standards No. 107, "Disclosure about
Fair Value of Financial Instruments," requires disclosure of fair
value information about financial instruments. The carrying amount of
assets and liabilities reported on the balance sheets that require
such disclosure approximates fair value due to their short-term
maturity.

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CENTURY HILLCRESTE APARTMENT INVESTORS, L.P.
(A CALIFORNIA LIMITED PARTNERSHIP)

SEPTEMBER 30, 1996

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND RESULTS
OF OPERATIONS

CAPITAL RESOURCES AND LIQUIDITY

The Partnership raised proceeds of $72,580,000 from the sale of
limited partnership interests, pursuant to a public offering and
received additional capital contributions from the General Partners of
$1,050 and from the special limited partner of $6,855,000, all of
which funds were previously expended. Currently, the only sources of
Partnership revenue consist of income from rental operations at the
Property and interest earned on Partnership reserves.

Concurrent with the issuance of depositary units to the Limited
Partners, the Partnership received the Guarantee Agreement from the
Seller, (an affiliate of the Managing General Partner), which required
the Seller to make payments or loans as provided therein, if and when
necessary, in an amount sufficient to enable the Partnership to
provide the Limited Partners with minimum distributions through
December 1993.

Pursuant to the Memorandum of Understanding entered into on August 11,
1995, the Seller agreed to pay to the Partnership the sum of $350,000
in two equal installments of $175,000 each; the first such $175,000
payment was made in August 1995 and the second payment was made in May
1996. These payments represent the amount of a real estate tax refund
received in 1994 for overpayment of prior year taxes which had
previously been offset against amounts receivable from the Seller
under the Guarantee Agreement.

Through June 30, 1996, the Seller has funded $13,130,998 directly to
the Partnership for distributions to the Limited Partners pursuant to
the Guarantee Agreement, which includes the $350,000 referred to
above.

Concurrent with the execution of the Memorandum of Understanding on
August 11, 1995, the Partnership received the sum of $135,000 from the
Seller as compensation for late distribution payments under the
Guarantee Agreement. This amount was distributed pro rata to the
Limited Partners and represents interest on such late payments
calculated at the rate of approximately five percent (5%) per annum,
from the date that each such distribution was required to be made to
Limited Partners to the date such distribution was actually made.
This payment primarily accounts for the decrease in interest income in
1996, as compared to 1995.

Approvals from the City of Los Angeles were obtained to "privatize"
the streets and alleys providing access to the Property and to
construct wrought iron security fencing with controlled entrances into
the Property. The final resolution vacating the streets and alleys
was approved by the City on December 31, 1994. Landscape and
architectural drawings have been prepared for the construction of the
perimeter fencing and related improvements, including a guardhouse at
the Ambassador Street entrance and a directory/trellis at the Peerless
Street location. These plans were approved and a building permit was
issued by the City of Los Angeles on June 20, 1995. This permit was
to expire on December 20, 1995, however, an extension to December 31,
1996 was approved. Contract in the amount of $683,000 and $49,975
have been awarded to construct the wrought iron security fencing and
to construct storm

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CENTURY HILLCRESTE APARTMENT INVESTORS, L.P.
(A CALIFORNIA LIMITED PARTNERSHIP)

JUNE 30, 1995

ITEM 2. MANAGEMENT'S ANALYSIS AND DISCUSSION OF FINANCIAL POSITION AND RESULTS
OF OPERATIONS (CONTINUED)

drain and related improvements, respectively, for which construction
work has commenced in 1996. As of September 30, 1996, $180,000 has
been paid to the contractor. Due to the complexity of the storm drain
work, an affiliate of the Operating General Partner is providing
construction supervision of the storm drain improvements at a cost not
to exceed $1,800.

RESULTS OF OPERATIONS

Occupancy averaged 95% for the nine months ended September 30, 1996
and 1995. Operating expenses decreased primarily due to reduced
repairs and maintenance expense in 1996.

Since the investigation and recommendation of the staff of the
Securities and Exchange Commission (the "Commission") (see "Legal
Proceedings" for further discussion) concerning the Partnership's
financial statements and Commission filings, a portion of the legal
fees incurred in responding to the staff have been allocated to and
charged to the Partnership by the Managing General Partner. These
legal fees primarily account for the decrease in general and
administrative expenses in 1996. In the opinion of the Managing
General Partner, any action that might result from the Commission
staff's investigation is not likely to have a material adverse effect
on the Partnership.

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CENTURY HILLCRESTE APARTMENT INVESTORS, L.P.
(A CALIFORNIA LIMITED PARTNERSHIP)

SEPTEMBER 30, 1996

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

As of September 30, 1996, NAPICO was a plaintiff or defendant in several
lawsuits. None of these suits are related to the Partnership.

The staff of the Securities and Exchange Commission (the "Commission") informed
the Partnership and NAPICO in August 1995 that it intended to recommend that
the Commission institute a civil proceeding against the Partnership, NAPICO and
others that would be based, in part, on allegations that certain of the
Partnership's financial statements in 1991, 1992 and 1993 should have
characterized certain current assets deposited in the master disbursement
account of the Partnership's property management company as accounts receivable
from a related party rather than as cash. The Partnership and NAPICO have
strongly disagreed with the staff's contentions, which have not yet been
considered by the Commission. During the past several months there have been
discussions with the Commission staff to determine whether the staff's concerns
might be resolved by an administrative consent order. Those discussions are
still underway. In the opinion of NAPICO, any action that might result from
the staff's recommendation, including any consent order that might resolve the
staff's concerns, is not likely to have a material adverse effect on the
Partnership.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) No reports on Form 8-K were filed during the quarter ended
September 30, 1996.

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CENTURY HILLCRESTE APARTMENT INVESTORS, L.P.
(A CALIFORNIA LIMITED PARTNERSHIP)

SEPTEMBER 30, 1996

SIGNATURES

Pursuant to the requirements 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.

CENTURY HILLCRESTE APARTMENT INVESTORS, L.P.
(a California limited partnership)

By: National Partnership Investments Corp.
Managing General Partner

Date:
----------------------------------------

By:
----------------------------------------
Bruce Nelson
President

Date:
----------------------------------------

By:
----------------------------------------
Shawn Horwitz
Executive Vice President and
Chief Financial Officer