Item 1. Business
	(a)	General Development of Business -- Urban Improvement Fund Limited -- 1973-II, a California limited partnership (the "Registrant"), was formed in 1973 for the purpose of investing, through Local Limited Partnerships (LLP's), in federally and state-assisted low and moderate income housing projects. The Partnership will terminate on December 31, 2014. The termination can be earlier or later with an approval of a majority of the partners. Units of Limited Partnership Interest were sold in a public offering to investors who required tax shelter for income from other sources. The Registrant acquired equity interests as a limited partner in eleven (11) such Local Limited Partnerships. One of these projects was sold in 1978 through a trustee's sale (foreclosure). Two of these properties, Mott Haven Apartment VII and Mott Haven Apartments VIII were assigned to HUD in 1997 and sold through a trustee's sale (foreclosure) in 1999. One of the Partnerships, 808 Memorial Drive, sold its interest in real estate during July 1997 in a tax-free exchange. The Partnership also changed its name to 808 Investments Limited Partnership and reinvested the proceeds in three properties that are conventional, multi-family residential projects during December 1997. 808 Investments Limited Partnership and the remaining seven (7) partnerships are described in Item 2
Item 2. Partnerships
The registrant owns equity interest as a limited partner in the following partnerships as of December 31, 2000:
COMMUNITY CIRCLE - The Partnership owns a 160-unit project located in Cleveland, Ohio, consisting of seven frame and brick two-story buildings and one masonry and pre-cast concrete ten-story building. The project was new construction financed
under Section 236 of the National Housing Act. The mortgage is insured by HUD under Section 236 of the National Housing Act. The mortgage also has interest subsidies which reduces the interest rate to approximately one percent. The partnership also entered into a regulatory agreement which sets rental rates, limits distributions, and requires monthly deposits to reserves for replacements.
CROWNINSHIELD APARTMENTS - The Partnership owns a 284 unit project rehabilitated under the auspices of the Massachusetts Housing Finance Agency with subsidy under Section 236 of the National Housing Act. The project is located in Peabody, Massachusetts.
The property was financed by a mortgage issued by the Massachusetts Housing Finance Agency. The mortgage included regulatory agreements which set rental rates, limits distributions and requires monthly deposits to reserve for replacements. The mortgage also has interest subsidy from HUD which reduces the interest rate to approximately two and one-half percent.
HOLLY STREET - The Partnership owns a 71 unit project located in the cities of Methuen and Lawrence, Massachusetts, consisting of eleven two-, three- and four-story buildings of frame and brick construction. The project was rehabilitated pursuant to authority granted by the Massachusetts Housing Finance Agency, with subsidy under Section 236 of the National Housing Act.
The property was financed by a mortgage issued by the Massachusetts Housing Finance Agency. The mortgage included regulatory agreements which set rental rates, limits distributions and requires monthly deposits to reserve for replacements. The mortgage also has interest subsidy from HUD which reduces the interest rate to approximately one percent.
KING DRIVE APARTMENTS - The Partnership owns a 315 unit project located in Chicago, Illinois. It is a 22-story building of concrete construction. The building contains space for two commercial shops. The project was constructed under Section 236 of the National Housing Act. The mortgage also has interest subsidies which reduces the interest rate to approximately one percent. The partnership also entered into a regulatory agreement which sets rental rates, limits distributions, and requires monthly deposits to reserves for replacements.
MET-PACA I - The Partnership owns a 37 unit project with four buildings rehabilitated under Section 236 of the National Housing Act. This project is located in New York City, New York. The mortgage is insured by HUD under Section 236 of the National Housing Act. The mortgage also has interest subsidies which reduces the interest rate to approximately one percent. The partnership also entered into a regulatory agreement which sets rental rates, limits distributions, and requires monthly deposits to reserves for replacements.
MORRISANIA II ASSOCIATES - The Partnership owns a 161 unit project located at 1104-1148 Clay Avenue, Bronx, New York, consisting of twelve five-story buildings of brick construction. The development was rehabilitated under Section 236 of the National Housing Act. The mortgage is insured by HUD under Section 236 of the National Housing Act. The mortgage also has interest subsidies which reduces the interest rate to approximately one percent. The partnership also entered into a regulatory agreement which sets rental rates, limits distributions, and requires monthly deposits to reserves for replacements.
SOUTHERN BOULEVARD REHAB PHASE I - The Partnership owns a 73 unit project located in the Bronx, New York, consisting of two six-story, wood joist and brick exterior buildings. The project was rehabilitated under Section 236 of the National Housing Act. The mortgage is insured by HUD under Section 236 of the National Housing Act.
The mortgage also has interest subsidies which reduces the interest rate to approximately one percent. The partnership also entered into a regulatory agreement which sets rental rates, limits distributions, and requires monthly deposits to reserves for replacements.
808 INVESTMENTS LIMITED PARTNERSHIP The Partnership owned a 301 unit project located in Cambridge, Massachusetts, consisting of two buildings of steel and brick construction and a five-level parking structure. The buildings are eleven and twenty stories and they are centrally air-conditioned. The project has two small landscaped plazas. The project was constructed under the auspices of the Massachusetts Housing Finance Agency.
During July 1997, the Partnership sold its real estate project located in Cambridge, Massachusetts in a tax free exchange. During December 1997, the Partnership purchased a 124 unit project located in Greensboro, North Carolina, a 399 unit project in Dallas, Texas and a 128 unit project in Escondido, California. These projects were financed with conventional mortgages which are not insured by HUD or any state agency.
The seven local limited partnerships which have regulatory agreements with HUD or MHFA own apartment complexes which are not materially impacted by changes in the competitive conditions in the areas where the properties are located. Although the apartment complexes must compete with other apartment complexes for tenants, the government subsidized interest and rent payments make it possible for tenants to rent the apartment units at below market rates.
The operations of the apartments are subject to the administrative directives, rules and regulations of federal, state and local agencies. Such directives, rules and regulations are subject to change by an act of Congress or administrative change
mandated by HUD or MFHA. Such changes may occur with little notice or inadequate funding to pay for the related cost to comply with the change. In addition, HUD or MFHA set the rental rates that the apartments may charge tenants. There is no guarantee that rental rates will keep up with increases in expenses from year to year.
The remaining local limited partnership, 808 Investments Limited Partnership, owns three conventional apartment complexes, each of which must compete with other apartment complexes in their local areas. A brief description follows of the competitive conditions in the areas where these properties are located:
Sedgefield Square
Sedgefield Square is located in the desirable Sedgefield area of Greensboro, North Carolina. The area is stable. Multi-family properties have mid-ninety percent occupancy levels. The market has recently absorbed 270 new non-subsidized apartment units. Once the new construction units were absorbed, Sedgefield Square has been able to sustain a higher than average occupancy.
The Summit Apartments
The Summit Apartments is located within Escondido, California, approximately 45 minutes from downtown San Diego. Housing demand remains strong and is evidenced by above average occupancy within the sub-market. The rental rates at The Summit have increased over five percent since January 2001. There are currently no multi-family housing developments under construction within the area.
Windsor Station
Windsor Station Apartments are located in the east Dallas metropolitan area. The sub-market is blue collar, primarily minority households. There has not been any new multi-family housing construction during the last five years and none is anticipated in the near future. Windsor Station's rents are 5 cents per square foot higher than the surrounding market at this time. With a static market, there are no rental increases planned in 2001.
There are no proposed plans for major renovations, improvements or developments at December 31, 2000 for any of the Local Limited Partnerships.
Incentive Management Fees
In three of the Local Limited Partnerships, the registrant has entered into an agreement with the local General Partner to provide an incentive management fee to the local General Partner. The payment is deducted from the registrant's cash distribution and recorded as an expense on the registrant's financial statements. The expense recorded was $11,867 in 1999, $8,724 in 1998 and $22,349 in 1997. No expense was recorded in 1996 and 2000.
Details of the agreements are as follows:
Crowninshield Apartments - The local General Partner receives, as an incentive management fee, the following percentage of Urban '73-II cash distributions:
		 Amount 					Percentage
			Up to $10,000					 Zero
			$10,001-$15,000					 15%
			$15,001-$25,000					 25%
			Over $25,000					 35%
King Drive - The local General Partner receives, as an incentive management fee, the following percentage of Urban '73-II cash distributions:
		 Amount 					Percentage
			Up to $15,444					 Zero
			Over $15,444					 50%
Southern Boulevard I - The local General Partner receives, as an incentive management fee, the following percentage of Urban '73-II cash distributions:
		 Amount 					Percentage
			Up to $20,111					 37%
			Over $20,111					 50%
Occupancy Rates
Partnership 	2000	1999	1998	1997	1996
Community Circle	98%	98%	98%	98%	99%
Crowninshield Apartments	99%	99%	99%	99%	99%
Holly Street	100%	100%	98%	98%	93%
King Drive		94%	94%	96%	96%	99%
Met Paca Section 1	99%	98%	100%	100%	98%
Morrisania II	99%	100%	96%	96%	94%
Southern Boulevard	99%	99%	100%	100%	100%
808 Investment LP:
	Sedgefield Square	95%	93%	88%	N/A	N/A
	The Summit'	90%	93%	96%	N/A	N/A
	Windsor Station	95%	94%	93%	N/A	N/A
Average Annual Rental Per Unit
Partnership 	 2000 	 1999 	 1998 	 1997 	 1996
Community Circle	$ 6,821	$ 6,495	$ 6,884	$ 6,470	$ 6,424
Crowninshield Apartments	$ 7,178	$ 6,737	$ 6,827	$ 6,737	$ 6,588
Holly Street	$ 6,026	$ 6,226	$ 5,935	$ 5,995	$ 5,440
King Drive		$ 5,074	$ 4,867	$ 4,702	$ 4,259	$ 5,044
Met Paca Section 1	$10,629	$10,450	$10,349	$ 10,799	$ 8,943
Average Annual Rental Per Unit - Continued
Partnership 	 2000 	 1999 	 1998 	 1997 	 1996
Morrisania II	$ 7,983	$ 7,554	$ 7,344	$ 7,471	$ 7,364
Southern Boulevard	$ 9,762	$ 9,751	$ 9,836	$10,136	$ 9,718
808 Investment LP:
	Sedgefield Square	$ 6,627	$ 6,336	$ 6,006	 N/A	 N/A
	The Summit	$ 5,827	$ 5,615	$ 5,489	 N/A	 N/A
	Windsor Station	$ 8,843	$ 6,700	$ 6,445	 N/A	 N/A
Realty Tax Information
Partnership 		Assessed Value	Property Tax
Community Circle		 $ 751,000	 $146,000
Crowninshield Apartments		 $ 7,000,000	 $219,000
Holly Street				 $ 37,000
King Drive			 Unknown	 $159,000
Met Paca Section 1		 Unknown	 $ 31,000
Morrisania II		 Unknown	 $159,000
Southern Boulevard		 $ 841,000	 $ 75,000
808 Investment LP:
	Sedgefield Square		 $ 4,290,000	 $ 52,000
	The Summit		 $ 8,533,000	 $134,000
	Windsor Station		 $10,500,000	 $294,000
Federal Tax Basis Information
					Federal	Original Building	Bldg. Improvements	Personal Property
Partnership 	 Tax Basis	 Method 	 Life 	 Method 	 Life 	Method	 Life
Community Circle	$4,123,000	DDB	15-20	SL	20-40	SL	5-12
Crowninshield Apartments	$7,118,000	SL	20	SL	19-27.5	DDB	5-7
Holly Street		$2,335,000	SL	22-40	SL	19-27.5	SL	5-8
King Drive			$6,119,000	SL	27.5	SL	15-27.5	DDB	5-7
Met Paca Section 1	$1,080,000	SL	 5	SL	19-27.5	DDB	5-7
Morrisania II		$2,009,000	DDB	24	SL	27.5	DDB	5-7
Southern Boulevard	$2,550,000	SL	5	SL	19-27.5	DDB	5-7
808 Investment LP:
	Sedgefield Square	$1,822,000	SL	27.5	SL	27.5	DDB	5-7
	The Summit		$3,570,000	SL	27.5	SL	27.5	DDB	5-7
	Windsor Station	$4,750,000	SL	27.5	SL	27.5	DDB	5-7
Item 3.
Item 3. Legal Proceedings
	There are no material pending legal proceedings at this time, other than ordinary routine litigation incidental to the Partnership's business, including the Local Limited Partnerships in which the Partnership is a Limited Partner.
Item 4.
Item 4. Submission of Matters to a Vote of Security Holders.
	No matters were submitted during the fourth quarter of the fiscal year covered by this report to a vote of security holders through the solicitation of proxies or otherwise.
PART II
Item 5.
Item 5. Market for the Registrant's Securities and Related Security Holder Matters.
	(a) There is not a ready market for the transfer of limited partnership interests. Limited partnership interests may be transferred between individuals with the consent of the General Partner.
During the year ended December 31, 2000, Equity Resources made a tender offer to the partners of the registrant. Equity Resources purchased 751.5 units at a cost of $100 per unit. Equity Resources is not affiliated with the General Partner.
The General Partner and an affiliate of the General Partner purchased 279 units during the year ended December 31, 2000. The purchase price was $100 per unit for 42 units and $60 per unit for 237 units.
In addition, six partners transferred 101 units to other individuals or entities during the year ended December 31, 2000. The registrant does not have any details regarding the purpose or consideration involved in these transfers. These types of transfers are usually a result of the following actions:
	A.	Due to the divorce of the partner, the interest is fully or partially transferred to a spouse.
	B.	Due to tax planning, the interest is transferred to a trust.
	C.	Due to the death of the partner, the interest is transferred to a trust or the beneficiaries of the estate.
	D.	The interest is gifted to a charitable organization.
	(b) Holders --
Title of	Name & Address of	Amount and Nature of	% of
Class	Beneficial Owner	Beneficial Ownership	Class
General Partner	Interfinancial Real	100 Units	100%
Interest	Estate Management Co.	($95,000)
	1201 Third Avenue, Suite 5400
	Seattle, Washington 98101­3076
Limited Partner	519 Limited Partners	11,405 Units	100%
Interest		($11,430,000)
	Interfinancial Real Estate Management Company owned 400 units of Limited Partnership interest at December 31, 2000. An affiliate of Interfinancial Real Estate Management Company owned 249 units of Limited Partnership interest at December 31, 2000.
	The Registrant has no officers or directors. Interfinancial Real Estate Management Company, the General Partner of the Registrant, is a corporation.
	(c) There have been no cash distributions to partners during the five year period ending December 31, 2000. During 2000, two of the Local Limited Partnerships made state income tax withholding payments on behalf of the Partnership totaling $76,502. The individual partners of the Partnership receive credit for the tax payments made to the states. Therefore, these payments are treated as distributions to the partners of the Partnership.
Item 6.
Item 6. Selected Financial Data
	These statements do not include all disclosures required under generally accepted accounting principles; however, when read in conjunction with the related financial statements and notes thereto included under Item 8, the statements include all generally accepted accounting principles disclosures for the latest three years.
			 Year Ended December 31,
			 2000 	 1999 	 1998 	 1997 	 1996
Operating Income:
	Interest income	$ 821 	$ 1,151 	$ 861	$ 214 	$ 796
	Other income	 0 	 0 	 0	 0 	 6,250
			821 	1,151 	861	214 	7,046
Expenses:
	Professional fees	19,500 	18,450 	19,448	18,492 	16,623
	Management fee	70,000 	70,000 	70,000	70,000 	70,000
	Incentive management fee	0 	11,867 	8,724	22,349 	0
	Amortization expense	16,863 	16,863 	16,863	16,863 	0
	Other expenses	 14,870 	 1,930 	 836	 6,813 	 250
			 121,233 	 119,110 	 115,871	 134,517 	 86,873
Loss before equity in
	income (loss) of Local
	Limited Partnerships	(120,412)	(117,959)	(115,010)	(134,303)	(79,827)
Equity in income
(loss) of Local
Limited Partnerships	 96,388 	 207,980 	 (121,454)	 4,009,902 	 (2,500)
Net income (loss)	$ (24,024)	$ 90,021 	$ (236,464)	$3,875,599 	$(82,327)
Allocation of net income (loss):
Net loss allocated
to General Partner	$ (1,201)	4,501 	(11,823)	193,780 	(4,116)
Net loss allocated
to Limited Partners	 (22,823)	 85,520 	 (224,641)	 3,681,819 	 (78,211)
			$ (24,024)	$ 90,021 	$(236,464)	$3,875,599 	$(82,327)
Net financial reporting income
	(loss) per unit:
	 General Partnership units
	 (100 units outstanding
	 allocated to General
	 Partner)	$ (12)	$ 45 	$ (118)	$ 1,938 	$ (41)
	 Limited Partnership units
	 (11,410 units outstanding
	 allocated to Limited
	 Partners)	$ (2)	$ 8 	$ (20)	$ 325 	$ (7)
Total assets	$4,050,643 	$4,080,419 	$4,239,930 	$4,624,029 	$ 4,876
Long term obligations	$ 0 	$ 0 	$ 0 	$ 0 	$ 0
Cash dividends	$ 0 	$ 0 	$ 0 	$ 0 	$ 0
Item 7.
Item 7. Management's Discussion and Analysis of Financial Condition and
			 Results of Operations
			The Partnership has followed the practice of investing available funds, not used in the purchase of properties or in operations, in short-term investments. Interest income resulted from such short-term investments. The Partnership is dependent upon interest earned and the distributions and repayment of advances from Local Limited Partnerships for cash flow. As shown in the table below, the Partnership has received distributions in recent years. This trend is expected to continue. The Partnership has advanced funds to and received repayments of such advances from selected Local Limited Partnerships. The General Partner believes these net advances will not significantly affect the operations of the Partnership.
				 2000 	 1999 	 1998 	 1997 	 1996
Urban's share of
distribution		$ 76,502 	$315,142	$248,975	$ 79,570	$ -0-
Advances (made to)
repaid by
Local Limited
Partnerships		$(36,692) 	$ 59,842 	$ 32,107 	$ 883,027 	$ (2,500)
	Under the terms of the Limited Partnership Agreement, the Partnership is required to pay the General Partner an annual management fee equal to one-quarter of one percent of invested assets or $130,376 at December 31, 2000. (The fee will not be more than fifty percent of the Partnership's annual net cash flow, as defined, subject to an annual minimum of $70,000.) The Partnership recorded management fee expense of $70,000 per year from 1996 through 2000. The Partnership paid fees of $15,000 in 1996 and $35,000 in 1997. The unpaid balance of the fees has been accrued. The balance of accrued management fees at December 31, 2000 was $1,278,167. The Partnership will also pay the General Partner a liquidation fee for the sale of projects. The liquidation fee is the lesser of (i) ten percent of the net proceeds to the Partnership from the sale of a project(s) or (ii)
one percent of the sales price plus three percent of the net proceeds after deducting an amount sufficient to pay long-term capital gains taxes. No part of such fee shall accrue or be paid unless: (i) the Limited Partners' share of the proceeds has been distributed to them, (ii) the Limited Partners shall have first received an amount equal to their invested capital attributable to the project(s) sold, and (iii) the Limited Partners have received an amount sufficient to pay long-term capital gains taxes from the sale of the project(s), if any, calculated at the maximum rate then in effect.
	During 2000, other expenses increased significantly from previous years. The increase resulted from one-time expense of a $10,000 contribution to the Institute for Responsible Housing which promotes low-income housing and $3,000 for an appraisal for one of the local limited partnerships for the evaluation of refinancing.
	The Partnership has entered into incentive management agreements with the General Partner in three of the Local Limited Partnerships to pay a fee based on a percentage of surplus cash paid. During the period 1997 to 1999, the Partnership paid incentive management fees of $42,940 to the General Partners of these Local Limited Partnerships. These fees were paid from distributions received from these Local Limited Partnerships. During 2000 and 1996, these partnerships did not generate surplus cash.
	 At December 31, 2000, the Partnership had investments in eight active real estate limited partnerships as a Limited Partner. The Partnership carries such investments on the equity method of accounting. The Partnership discontinues recording losses for financial reporting purposes when its investment in a particular Local Limited Partnership is reduced to zero, unless the Partnership intends to commit additional funds to the Local Limited Partnership. At year-end, all of the investments were reduced to zero except for 808 Investment Limited Partnership. The equity in income in Local Limited Partnerships
resulted from either Local Limited Partnerships, whose investments have not been reduced to zero, reporting income from operations and Local Limited Partnerships, whose investments have been reduced to zero, who paid distributions or repaid an advance. Additional advances to Local Limited Partnerships, after an investment is reduced to zero, are recorded as losses.
	The components of the Partnership's equity in net income (loss) of the Local Limited Partnerships for 2000, 1999, 1998, 1997 and 1996 is summarized as follows:
			 2000 	 1999 	 1998 	 1997 	 1996
Income (loss) from
Partnerships with
non-zero investments:
808 Investments Limited
Partnership		$ 65,424	$ 88,146	$ (194,200)	$3,930,332	$ 0
Repayment of advances from
(advances to) Partnerships
with zero investments:
808 Investments		 0	 0	 0	 0	 (2,500)
Community Circle		 (36,692)	 59,842	 32,107	 0	 0
Distributions received from
Partnerships with zero
investments:
Crowninshield		 0	 0	 40,639	 79,570	 0
Southern Blvd.		 0	 23,735	 0	 0	 0
	Community Circle		 67,656	 36,257	 0	 0	 0
			$ 96,388	$ 207,980 	$ (121,454)	$4,009,902	$ (2,500)
808 Investment Limited Partnership sold its property in 1997 in an all cash transaction and used the proceeds to reinvest in three rental properties. The sales transaction for tax purposes was a tax free exchange with the gain being deferred. For financial reporting purposes, a gain of $3,930,332 was recorded on Urban 73-II. At the time of the sale, the investment in 808 had been reduced to zero. The gain recorded was to increase the investment equal to Urban 73-II's capital account after the sale.
	The actual combined losses of Local Limited Partnerships will generally decrease as depreciation and interest decreases and the projects achieve mature operations. The distributions to the Partnership from Local Limited Partnerships are the result of positive cash flow from the operations of these projects.
Mott Haven VII and Mott Haven VIII experienced cash flow deficits from operations resulting in default of mortgage notes to HUD. HUD, the owners, and the General Partner believed that it was in the best interest of the development and its tenants that the projects be renovated and reconfigured, and that such result can best be accomplished through replacement of the existing management and ownership structure with community-based owners and managers. The General Partner transferred the property to HUD during 1997. For financial reporting purposes, the Partnership recorded the disposition of its investment in Mott Haven VII and Mott Haven VIII during November 1996. During 1999, HUD foreclosed on the property. For income tax purposes, the gain on foreclosure was recorded in 1999.
The Partnership's investment objectives are to preserve and protect Partnership capital and provide capital appreciation through increase value of the Partnership's investment.
Liquidity
	The Partnership's only source of cash flow is from distributions from its investments Local Limited Partnerships or the sale or refinancing of the Local Limited Partnerships. There are no current discussions with potential buyers or properties being actively marketed.
Seven of the Local Limited Partnerships have regulatory agreements which restrict distributions to the computation of surplus cash. The computation of surplus cash is calculated by subtracting accounts payable and accrued expenses from cash on hand at
the end of the year. 808 Investment Limited Partnership has no restriction on distributions and the General Partner is an affiliate of the General Partner of the registrant. The majority of cash distributions have been from 808 Investment Limited Partnership during the past few years.
During the period 1996 to 2000, cash distributions from Local Limited Partnerships totaled $640,686. The distributions reported in 2000 of $76,502 was state income taxes paid on the registrant's behalf by the Local Limited Partnership's. These funds were utilized to fund operations and repay General Partner Advances. The General Partner anticipates it will receive adequate distributions from the Local Limited Partnerships to maintain operations.
At December 31, 2000, the Partnership had advances from the General Partner of $177,006 and management fees payable to the General Partner of $1,278,167. The Partnership has used excess cash to repay these obligations in the past and the General Partner expects to continue making payments as cash is available.
There is no guarantee that the Local Limited Partnerships will generate sufficient cash flow to distribute to the Partnership amounts sufficient to repay all advances and accrued management fees. If not repaid by cash flow from operating, they will most likely be repaid with proceeds from the sale or refinancing proceeds from the Local Limited Partnerships.
Capital Resources
	The General Partner believes that additional situations may arise where it would be advantageous to the Partners to exchange properties in a tax-free transaction. The Partnership's basis in its properties has been reduced through depreciation deductions
and other losses to levels substantially below the amount of debt secured by the properties. Additionally, the rental properties owned and operated by the Local Limited Partnerships have typically computed depreciation for financial reporting purposes using the straight-line method over the estimated economic useful life of the property. For income tax reporting purposes, depreciation generally has been computed over the same or shorter periods using accelerated methods. As a result, the carrying values of the Partnership's investments in Local Limited Partnerships are substantially greater for financial reporting purposes than for income tax reporting purposes. Upon sale or other disposition of a property by the Local Limited Partnership, the gain recognized by the Partnership for income tax reporting purposes may be substantially greater than the gain recorded for financial reporting purposes. Accordingly, if the properties are sold, the Partnership, in all likelihood, would recognize taxable gain in excess of the cash available for distribution. If sale proceeds are reinvested in a manner which permits the original sale to be treated as a like-kind exchange, the Partnership can defer this gain until the new property is sold. Additionally, the Partnership will receive the benefit of any cash flow or appreciation in value of the new property. If reinvestments were made, it is likely that the acquired properties would be conventional, multi-family residential projects.
	The Partnership has made no material commitments for capital expenditures.
Item 8.
Item 8. Financial Statements and Supplementary Data
	The response to this item is submitted in a separate section of this report.
Item 9.
Item 9. Change in and Disagreements With Accountants on Accounting
and Financial Disclosure
	There have been no disagreements on any matters of accounting principles or practices or financial statement disclosure.
PART III
Item 10.
Item 10. Directors and Executive Officers of the Registrant
	(a)	The General Partner of the Registrant is Interfinancial Real Estate Management Company. The Registrant does not have directors as such. The following is a listing of the Directors of the General Partner of the Registrant. These Directors are elected to serve one-year terms and until their successors are duly elected and qualified as directors.
			 Name 	Age	 Office
			Paul H. Pfleger	65	Director/President
			John M. Orehek	46	Director/Senior Vice President
	(b)	The General Partner of the Registrant is Interfinancial Real Estate Management Company. The Registrant does not have executive officers as such. The following is a listing of the executive officers of the General Partner of the Registrant. These executive officers are elected to serve one-year terms and will continue to serve until their successors are duly elected and qualified as executive officers.
			 Name 	Age	 Office
			Paul H. Pfleger 	65	Director/President
			John M. Orehek	46	Director/Senior Vice President
			Michael Fulbright	46	Secretary
	(c)	The Registrant has no employees.
	(d)	There are no family relationships between any directors or executive officers.
	(e)	The principal occupation and employment of each of the executive officers and directors of the General Partner are as follows:
Paul H. Pfleger, Director/President. Mr. Pfleger organized and was Chairman of the Board of Security Properties Inc. (formerly Security Pacific, Inc.) from 1969 to the present, except for a period between 1984 and 1986. Farmers Savings acquired Security Properties Inc. as a wholly-owned subsidiary during 1984 and sold the company back to the original owners during 1987. The major line of business of Security Properties Inc. is the administration of previously syndicated, subsidized multifamily residential real estate. Mr. Pfleger was first elected an officer and director of the General Partner, Interfinancial Real Estate Management Company, in July 1981 and has maintained his dual status since that time.
Mr. Pfleger is the General Partner in over 280 properties with approximately 38,000 housing units throughout the United States.
John M. Orehek, Director/Senior Vice President. Mr. Orehek is the Chief Executive Officer and President of Security Properties Investment Inc. From 1982 to 1987, he was employed by Security Properties Inc. (SPI) as President of First Columbia Corporation, its affiliated broker/dealer, and Senior Vice President of SPI. From 1987 to 1991, when he rejoined SPI, he was President of Hallmark Capital Partners, Ltd., a Seattle real estate development corporation. From 1979 to 1982 he was a member of the tax department in the Cleveland, Ohio and Seattle, Washington offices of Arthur Andersen & Co., Certified Public Accountants. He received a B.S. degree in Economics from Allegheny College, Meadville, Pennsylvania and a law degree from Case Western Reserve University School of Law. Mr. Orehek was first elected a director of the General Partner, Interfinancial Real Estate Management Company, during 1992.
Michael Fulbright, Secretary. Mr. Fulbright is General Counsel for Security Properties Inc. (SPI). He joined the Company in 1989 as Special Counsel responsible for new development activities and sales and financing transactions in the syndication portfolio. Prior to joining SPI, he was a partner at Tousley Brain, a Seattle law firm that specializes in commercial real estate matters. His practice there included representation of lenders, institutional investors and commercial developers. He received a Masters of Business Administration degree from Texas A&M and a law degree from the University of Washington. He is a member of the Washington State Bar Association. Mr. Fulbright was first elected an officer of the General Partner, Interfinancial Real Estate Management Company, during 1994.
	(f)	Section 20 of the Amended Certificate and Agreement of Limited Partnership of the Registrant provides for the indemnification of the General Partner and its designees and nominees against liability resulting from errors in judgment or any acts or omissions, whether or not disclosed, unless caused by a breach of fiduciary duty of such parties to the Registrant or its Limited Partners. None of the officers or directors of the General Partner of the Registrant have filed a petition under the federal bankruptcy laws or any state insolvency act, nor have they been engaged in any acts over the past five years that would impair their ability or integrity as directors or executive officers of the General Partner of the Registrant.
Item 11.
Item 11. Executive Compensation
	(a)	The Registrant will not pay directly any salary or other remuneration to the officers of the General Partner of the Registrant.
	(b)	The Registrant has no plan or arrangement to pay directly any salary or other remuneration to the officers in the future.
	(c)	There are no such options, warrants, rights or any other remuneration available to the General Partner of the Registrant.
	(d)	The Registrant will not pay directly any salary or other remuneration to the directors of the General Partner of the Registrant.
	(e)	There are no such retirement benefit plans or other remuneration that would result from the resignation, retirement, termination or any other change in control of any officer or director of the General Partner of the Registrant.
Item 12.
Item 12. Security Ownership of Certain Beneficial Owners and Management
	(a)	Security Ownership of Certain Beneficial Owners
Title of	 Name & Address of	Amount and Nature of	% of
Class 	 Beneficial Owner 	Beneficial Ownership	 Class
General Partner	Interfinancial Real	 100 Units	100%
Interest	Estate Management Co.	 ($95,000)
	1201 Third Avenue, Suite 5400
	Seattle, Washington 98101­3076
The General Partner owns 400 units of Limited Partner interest, and an affiliate of the General Partner owns 249 units of Limited Partner interest.
(b) No officers or directors of the General Partner of the Registrant own a
Partnership interest.
(c) No change in control of the Registrant is anticipated.
Item 13.
Item 13. Certain Relationships and Related Transactions
The Partnership accrued management fees of $70,000 per year to the general partner. The Partnership paid $15,000 in 1996 and $35,000 in 1997. No fees were paid in 1998, 1999 and 2000. The balance of accrued and unpaid management fees was $1,278,167 at December 31, 2000.
The general partner advanced $708,680 to the Partnership in connection with the purchase of real property by 808 Investment Limited Partnership in 1997. The funds were used to make contributions to 808 Investment Limited Partnership which purchased three conventional properties. The balance at December 31, 1997 was $732,923. The Partnership repaid advances of $216,835 in 1998, $321,582 in 1999 and $17,500 in 2000 mainly from distributions received from 808 Investment Limited Partnership. The balance at December 31, 2000 was $177,006.
There were no other transactions which officers or directors of the general partner had an interest.
PART IV
Item 14.
Item 14.	Exhibits, Financial Statements, Schedules, Exhibits and Reports on Form 8-K.
	(a) 1. Financial Statements:
			Report of independent certified public accountants.
			Balance Sheets at December 31, 2000 and 1999.
			Statements of Income (Loss) for the years ended December 31, 2000, 1999 and 1998.
			Statements of Changes in Partners' Capital for the years ended December 31, 2000, 1999 and 1998.
			Statements of Cash Flows for the years ended December 31, 2000, 1999 and 1998.
		 	Notes to Financial Statements.
	(a) 2. Financial Statement Schedules:
		 	Indebtedness of and to Related Parties
		 	Real Estate and Accumulated Depreciation and Amortization of Local Limited Partnerships.
		 	Mortgage Loans on Real Estate
All other schedules are omitted because they are not applicable or the required information is included in the Financial Statements or the notes thereto.
FINANCIAL STATEMENTS OF UNCONSOLIDATED SUBSIDIARIES
FIFTY PERCENT OWNED PERSONS OR OTHER UNCONSOLIDATED PERSONS
ACCOUNTED FOR ON THE EQUITY METHOD
Separate financial statements of the eight limited partnerships accounted for on the equity method have been omitted because combined financial statements are included in Note 4 to the financial statements.
	(a) 3. Exhibits:
		1.A.	Form of proposed Selling Brokers' Agreement, incorporated by reference from Registration Statement on Form S-11 filed August, 1973.
		3.A.	Amended Certificate and Agreement of Limited Partnership, incorporated by reference from Registration Statement on Form S-11 filed August, 1973.
		3.B.	Amendment to Certificate of Limited Partnership, incorporated by reference from Registration Statement on Form S-11 filed August, 1973.
		3.C.	Amendment to certificate of Limited Partnership. Incorporated by reference from proxy statement filed September 18, 1991.
		4.A.	Subscription agreement incorporated by reference from Registration Statement on Form S-11 filed August, 1973.
		5.A.	Opinion and Consent of Counsel, incorporated by reference from Pre-Effective Amendment No. 1 to Registration Statement on Form S-11 filed October, 1973.
		8.A.	Opinion and Consent of Tax Counsel, incorporated by reference from Pre-Effective Amendment No. 1 to Registration Statement on Form S-11 filed October, 1973.
		8.B.	Tax Ruling request, incorporated by reference from Pre-Effective Amendment No. 1 to Registration Statement on Form S-11 filed October, 1973.
		10.A.	Copy of Agreement between Registrant, the General Partner and Income-Equities Corporation with respect to certain commitments made on behalf of the Registrant, incorporated by reference from Pre-Effective Amendment No. 1 to Registration Statement on Form S-11 filed October, 1973.
		10.B.	Copy of the Management Agreement between the Registrant and Income-Equities Corporation, incorporated by reference from Registration Statement on Form S-11 filed August, 1973.
		10.C.	Correspondence between the Management Company on behalf of the General Partner, with various developers, constituting agreements to invest in Local Limited Partnerships, incorporated by reference from Pre-Effective Amendment No. 1 to Registration Statement on Form S-11 filed October, 1973.
		10.D.	Copy of form of Limited Partnership Agreement between the Registrant and Local Limited Partnerships in which it becomes a limited partner, incorporated by reference from Registration Statement on Form S-11 filed August, 1973.
		28.A.	Letters dated August 2, 1974 and August 15, 1974 to investors from the General Partner and Management Company regarding tax information matters, incorporated by reference from Form 8-K filed August, 1974.
	(b) Reports on Form 8-K
		There were no reports on Form 8-K filed during the last quarter of 2000.
	(c) Exhibits:
		Form 12b-25
	(d) Financial Statement Schedules:
		Indebtedness of and to Related Parties
				Real Estate and Accumulated Depreciation and Amortization of Local Limited Partnerships.
		Mortgage loans on Real Estate
All other schedules are omitted because they are not applicable or the required information is included in the financial statements or the notes thereto.
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.
			(REGISTRANT) URBAN IMPROVEMENT FUND LIMITED -- 1973-II
			 BY: INTERFINANCIAL REAL ESTATE MANAGEMENT COMPANY
By: 	Date:
Paul H. Pfleger
Director/President
Interfinancial Real Estate Management Company
By: 	Date:
John M. Orehek
Senior Vice President
Interfinancial Real Estate Management Company
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By:
Paul H. Pfleger, Director/President Date
Interfinancial Real Estate Management Company
By:
John M. Orehek, Director/Senior Vice President Date
Interfinancial Real Estate Management Company.
URBAN IMPROVEMENT FUND LIMITED -- 1973-II
SEATTLE, WASHINGTON
ANNUAL REPORT ON FORM 10-K
ITEM 8, ITEM 14(a)(1) AND (2) AND ITEM 14(d)
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
LIST OF FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULES
YEAR ENDED December 31, 2000
Form 10-K -- Items 14(a)(1) and (2)
Form 10-K -- Item 14(d)
Urban Improvement Fund Limited 1973-II
(A Limited Partnership)
LIST OF FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULES
The following financial statements of Urban Improvement Fund Limited 1973-II are included in Item 8 and Item 14(a)(1)
	Independent Auditors' Report
	Balance sheets at December 31, 2000 and 1999
	Statements of income (loss) for the years ended
		December 31, 2000, 1999 and 1998
	Statements of changes in partners' capital (deficit)
		for the years ended December 31, 2000, 1999 and 1998
	Statements of cash flows for the years ended
		December 31, 2000, 1999 and 1998
	Notes to financial statements
The following financial statement schedules of Urban Improvement Fund
Limited 1973-II are included in Item 14(a)(2) and 14(d):
	Indebtedness of and to Related Parties
	Real Estate and Accumulated Depreciation
	of Local Limited Partnerships
	Mortgage Loans on Real Estate
All other schedules are omitted because they are not applicable. Required information is shown in the financial statements or notes thereto.
FINANCIAL STATEMENTS OF UNCONSOLIDATED SUBSIDIARIES
FIFTY PERCENT OWNED PERSONS OR OTHER UNCONSOLIDATED PERSONS
ACCOUNTED FOR ON THE EQUITY METHOD
Separate financial statements of the eight limited partnerships accounted for on the equity method have been omitted because combined financial statements are included in Note 4 to the financial statements.
INDEPENDENT AUDITORS' REPORT
To the Partners
Urban Improvement Fund Limited -- 1973-II
We have audited the accompanying balance sheets of Urban Improvement Fund Limited -- 1973-II (a Limited Partnership) as of December 31, 2000 and 1999, and the related statements of income (loss), changes in partners' capital (deficit) and cash flows for the years ended December 31, 2000, 1999 and 1998, and the related schedules listed in Item 14(a)(2) of the annual report on Form 10-K of Urban Improvement Fund Limited -- 1973-II for the years ended December 31, 2000, 1999 and 1998. These financial statements and financial statement schedules are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements and financial statement schedules based on our audits. We did not audit five in 2000, 1999 and 1998 of the financial statements of Urban Improvement Fund Limited -- 1973-II's Local Limited Partnership investments whose combined financial statements are shown in Note 4. These statements were audited by other auditors whose reports have been furnished to us, and our opinion, to the extent it relates to the amounts included for these Local Limited Partnership investments, is based solely on the reports of the other auditors. Urban Investment Fund Limited -- 1973-II's investment in these partnerships has been reduced to zero.
We conducted our audits in accordance with generally accepted auditing standards. 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 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, based on our audits and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the financial position of Urban Improvement Fund Limited -- 1973-II as of December 31, 2000 and 1999, and the results of its operations and its cash flows for the years ended December 31, 2000, 1999 and 1998, in conformity with generally accepted accounting principles. In addition, in our opinion, based upon our audits and the reports of other auditors, the financial statement schedules referred to above, when considered in relation to the basic financial statements taken as a whole, present fairly, in all material respects, the information required therein.
/s/Smith & Radigan, Certified Public Accountants, LLC
Atlanta, Georgia
April 20, 2001
INDEPENDENT AUDITORS' REPORT
TO THE PARTNERS HOLLY STREET ASSOCIATES
We have audited the accompanying balance sheet of HOLLY STREET ASSOCIATES (a Limited Partnership) as of December 31, 2000, and the related statements of operations, changes in partners' deficiency and cash flows for the year then ended. 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 audit.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of 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 management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of HOLLY STREET ASSOCIATES as of December 31, 2000, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated January 18, 2001 on our consideration of HOLLY STREET ASSOCIATES' internal controls and reports dated January 18, 2001 on its compliance with laws and regulations. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with those reports in considering the results of our audit.
/s/Freedman Alpren & Green LLP
Freedman Alpren & Green LLP
New York, New York
January 18, 2001
INDEPENDENT AUDITOR'S REPORT
TO The Partners HUD Field Office Director
KING DRIVE APARTMENTS Chicago, Illinois
Chicago, Illinois
We have audited the accompanying balance sheet of KING DRIVE APARTMENTS, Project No. 071-44141, as of December 31, 2000, and the related statements of profit and loss, changes in partners' equity and statement of cash flows for the year then ended. 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 audit.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of 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 management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of KING DRIVE APARTMENTS as of December 31, 2000, and its profit or loss, changes in partners' equity and its cash flows for the year then ended in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated January 26, 2001 on our consideration of KING DRIVE APARTMENTS' internal control structure and reports dated January 26, 2001 on its compliance with specific requirements applicable to Major HUD Programs and specific requirements applicable to Affirmative Fair Housing.
The accompanying supplementary information (shown on pages 13 to 17) is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.
/s/Haran & Associates Ltd.
HARAN & ASSOCIATES LTD.
Wilmette, Illinois
January 26, 2001
INDEPENDENT AUDITOR'S REPORT
Partners
Morrisania II Associates
We have audited the accompanying balance sheet of Morrisania II Associates (a Limited Partnership) as of December 31, 2000, and the related statements of profit and loss, changes in partners' deficit and cash flows for the year then ended. 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 audit.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of 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 management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Morrisania II Associates (a limited partnership) as of December 31, 2000, and the results of its operations changes in partners' deficit and cash flows for the year then ended in conformity with generally accepted accounting principles.
/s/Siegel, Sacks, Press & Lacher, P.C.
Siegel, Sacks, Press & Lacher, P.C.
New York, New York
March 15, 2001
INDEPENDENT AUDITOR'S REPORT
To the Partners
Southern Boulevard Partners I
We have audited the accompanying balance sheet of Southern Boulevard Partners I FHA Project No. 012-44128, as of December 31, 2000, and the related statements of profit and loss, partners' accumulated deficit and cash flows for the year then ended. These financial statements are the responsibility of the Project's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of 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 management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Southern Boulevard Partners I as of December 31, 2000, and the results of its operations, changes in partners' accumulated deficit and cash flows for year then ended with accounting principles generally accepted in United States of America.
In accordance with Government Auditing Standards and the Consolidated Audit Guide for Audits of HUD Programs issued by the U.S. Department of Housing and Urban Development, we have also issued our reported dated February 28, 2001, on our consideration of Southern Boulevard Partners I internal controls and reports dated February 28, 2001 on its compliance with specific requirements applicable to major HUD programs and specific requirements applicable to affirmative fair housing and non-discrimination. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplemental information on pages 15 to 17 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.
/s/D'Arcangelo & Co., LLP
D'Arcangelo & Co., LLP
Purchase, New York
February 28, 2001
INDEPENDENT AUDITOR'S REPORT
To the Partners
Met Paca I Associates
We have audited the accompanying balance sheet of Met Paca I Associates, FHA Project No. 012-44154, as of December 31, 2000, and the related statements of profit and loss, partners' accumulated deficit and cash flows for the year then ended. These financial statements are the responsibility of the Project's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of 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 management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Met Paca I Associates as of December 31, 2000, and the results of its operations, changes in partners' accumulated deficit and cash flows for the year in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards and the Consolidated Audit Guide for Audits of HUD Programs issued by the U.S. Department of Housing and Urban Development, we have also issued our reported dated February 28, 2001, on our consideration of Southern Boulevard Partners I internal controls and reports dated February 28, 2001 on its compliance with specific requirements applicable to major HUD programs and specific requirements applicable to affirmative fair housing and non-discrimination. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplemental information on pages 15 to 17 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.
/s/D'Arcangelo & Co., LLP
D'Arcangelo & Co., LLP
Purchase, New York
February 28, 2001
URBAN IMPROVEMENT FUND LIMITED 1973-II
(A Limited Partnership)
BALANCE SHEETS
ASSETS
												 December 31,
											 2000 	 1999
Cash and cash equivalents	$ 1,914 	$ 30,204
Accounts receivable			0 	930
Distributions receivable	0 	40,271
Investments in and advances to Local
	Limited Partnerships accounted for on
	the equity method -- Note 4	 4,048,729 	 4,009,014
											$ 4,050,643 	$ 4,080,419
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Management fee payable -- Note 3	$1,278,167 	$1,208,167
Accounts payable				19,500 	1,250
Advance from general partner	 177,006 	 194,506
											1,474,673 	1,403,923
Partners' capital (deficit) -- Note 2
	General Partner -- 100 Partnership units
		authorized, issued and outstanding	(347,700)	(342,674)
	Limited partners -- 11,410 Partnership
		units authorized, issued and outstanding	 2,923,670 	 3,019,170
											 2,575,970 	 2,676,496
											$4,050,643 	$4,080,419
The Notes to Financial Statements are an integral part of these Statements.
URBAN IMPROVEMENT FUND LIMITED 1973-II
(A Limited Partnership)
STATEMENTS OF INCOME (LOSS)
											 Year Ended December 31,
									 2000 	 1999 	 1998
Interest income	$ 821 	$ 1,151 	$ 861
Expenses:
	Professional Fees	19,500 	18,450 	19,448
	Management fees -- Note 3	70,000 	70,000 	70,000
	Incentive management fee	0 	11,867 	8,724
	Amortization expense	16,863 	16,863 	16,863
	Other expenses	 14,870 	 1,930 	 836
									 121,233 	 119,110 	 115,871
	Loss before equity in income (loss)
	 of Local Limited Partnerships	(120,412)	(117,959)	(115,010)
	Equity in income (loss) of Local
	 Limited Partnerships -- Note 4	 96,388 	 207,980 	 (121,454)
	Net income (loss)	$ (24,024)	$ 90,021 	$ (236,464)
Allocation of net income (loss):
	Net income (loss) allocated to
	 General Partner	$ (1,201)	$ 4,501 	$ (11,823)
	Net income (loss) allocated to
	 Limited Partners	 (22,823)	 85,520 	 (224,641)
									$ (24,024)	$ 90,021 	$ (236,464)
Net financial reporting income (loss)
per unit:
General partnership units
	 (100 units outstanding allocated
	 to General Partner)	$ (12)	$ 45 	$ (118)
Limited partnership units
	 (11,410 units outstanding
	 allocated to Limited Partners)	$ (2)	$ 8 	$ (20)
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
					 			General 	Limited
					 			 Partner 	 Partners 	 Total
Partners' capital (deficit) at
January 1, 1998	$ (335,352)	$3,158,291 	$2,822,939
Net income (loss) -- 1998	 (11,823)	 (224,641)	 (236,464)
Partners' capital (deficit) at
December 31, 1998	(347,175)	2,933,650 	2,586,475
Net income -- 1999	 4,501 	 85,520 	 90,021
Partners' capital (deficit) at
December 31, 1999	(342,674)	3,019,170 	2,676,496
Net income (loss) -- 2000	(1,201)	(22,823)	(24,024)
Distributions 2000	 (3,825)	 (72,677)	 (76,502)
Partners' capital (deficit) at
December 31, 2000	$ (347,700)	$2,923,670 	$2,575,970
The Notes to Financial Statements are an integral part of these Statements.
URBAN IMPROVEMENT FUND LIMITED 1973-II
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
										 Year Ended December 31,
								 2000 	 1999 	 1998
CASH FLOWS FROM OPERATING ACTIVITIES:
	Net income (loss)	$ (24,024)	$ 90,021 	$ (236,464)
	Adjustments to reconcile net loss to net
cash used by operating activities:
Amortization of costs of acquisition	16,863 	16,863 	16,863
Equity in net loss (income) of Local
Limited Partnerships	(96,388)	(207,980)	121,454
			Increase in accounts receivable	930 	(930)	0
			Increase (decrease) in accounts
				payable	18,250 	(6,950)	8,200
			Increase in accrued management fees	 70,000 	 70,000 	 70,000
Total adjustments	 9,655 	 (128,997)	 216,517
Net cash used by operating
activities	(14,369)	(38,976)	(19,947)
CASH FLOWS FROM INVESTING ACTIVITIES:
	Current year distributions	40,271 	274,871 	248,974
	Net advances to Local Limited Partnerships	 (36,692)	 59,842 	 32,107
Net cash provided (used) by
investing activities	 3,579 	 334,713 	 281,081
CASH FLOWS FROM FINANCING ACTIVITIES:
	Advances from (repayments to)
		General Partner	 (17,500)	 (312,582)	 (225,835)
NET INCREASE (DECREASE) IN CASH AND
	CASH EQUIVALENTS	(28,290)	(16,845)	35,299
CASH AND CASH EQUIVALENTS AT
	BEGINNING OF YEAR	 30,204 	 47,049 	 11,750
CASH AND CASH EQUIVALENTS AT
	END OF YEAR		$ 1,914 	$ 30,204 	$ 47,049
NONCASH:
	A distribution receivable in the amount of $40,271 was recorded in 1999.
	During 2000, two local limited partnerships made state withholding payments totaling $75,502 for the benefit of Urban '73-II. These payments were recorded as distributions to Urban '73-II and distributions to the partners of Urban '73-II.
The Notes to Financial Statements are an integral part of these Statements.
URBAN IMPROVEMENT FUND LIMITED 1973-II
(A Limited Partnership)
Notes to Financial Statements
Note 1 -- Organization and Accounting Policies
	Organization
Urban Improvement Fund Limited -- 1973-II (the Partnership) was formed under the California Uniform Limited Partnership Act on July 1, 1973, for the principal purpose of investing in other limited partnerships (Local Limited Partnerships), which own federal and state-assisted housing projects. The Partnership issued 11,410 units of limited partnership interests pursuant to a public offering of such units which terminated on December 31, 1973. The Partnership also issued 100 units of general partnership interests to Interfinancial Real Estate Management Company (the General Partner).
The Urban Improvement Fund Limited -- 1973-II prospectus, dated October 24, 1973, specified that the General Partner has a five percent interest in profits, losses and special allocations, and the limited partners will share the remaining 95 percent interest in profits, losses and special allocations in proportion to their respective units of limited partnership interests.
	Investment in Local Limited Partnerships
As of December 31, 2000, the Partnership has investments in eight active real estate limited partnerships (Local Limited Partnerships), Since the Partnership, as a limited partner, does not exercise control over the activities of the Local Limited Partnerships in accordance with the Partnership agreements, these investments are accounted for using the equity method. The investment account represents the sum of the capital investment and unamortized cost of acquisition less the Partnership's share in losses since the date of acquisition. The Partnership discontinues recognizing losses and amortizing cost of acquisition under the equity method when losses have been incurred which equal the cost of the investment and the unamortized cost of acquisition in a particular Local Limited Partnership, thus reducing the investment to zero. Repayment of advances and cash distributions by the Local Limited Partnerships, after the Partnership investment has been reduced to zero, are recognized as income by the Partnership in the year received. Additional advances to a Local Limited Partnership, after an investment is reduced to zero, are recognized as losses.
Initial rent-up fees paid by the Partnership to the General Partners of the Local Limited Partnerships, deducted when paid for income tax reporting purposes (Note 2), are capitalized as costs of acquisition of the Local Limited Partnerships and is included in the investment in local limited partnership balance for financial reporting purposes. These costs and other costs of acquisition are amortized using the straight-line method over the lives (fifteen to forty years) of the Local Limited Partnerships' properties. Amortization is discontinued when the investment is reduced to zero.
Amortization expense was $16,863 for the years ended December 31, 2000, 1999 and 1998.
URBAN IMPROVEMENT FUND LIMITED 1973-II
(A Limited Partnership)
Notes to Financial Statements
Note 1 -- Organization and Accounting Policies -- Continued
The Partnerships' equity in net income (loss) of the Local Limited Partnerships is summarized as follows:
				 2000 	 1999 	 1998
Income from Partnership with non-zero
	investments:
	 808 Investments Limited Partnership	$ 65,424	$ 88,146	$ (194,200)
Repayment of advances from (advances to)
Partnerships with zero investments:
Community Circle	 (36,692)	 59,842	 32,107
Distributions received from Partnerships
with zero investments:
Crowninshield	 0	 0	 40,639
Southern Blvd.	 0	 23,735	 0
Community Circle	 67,656	 36,257	 0
				$ 96,388	$ 207,980 	$ (121,454)
Significant accounting policies followed by the Local Limited Partnerships are summarized in Note 4.
	Taxes on Income
No provision for taxes on income has been recorded in the financial statements, since all taxable income or loss of the Partnership is allocated to the partners for inclusion in their respective tax returns.
	Fair Value of Financial Instruments and Use of Estimates
The Partnership estimates that the aggregate fair value of all financial instruments at December 31, 2000 does not differ materially from the aggregate carrying values of its financial instruments recorded in the balance sheet. These estimates are not necessarily indicative of the amounts that the Partnership could realize in a current market exchange. The preparation of financial statements requires the use of estimates and assumptions. Actual results could differ from those estimates.
	Cash Equivalents
Marketable securities that are highly liquid and have maturities of three months or less at the date of purchase are classified as cash equivalents.
	Advances from General Partner
The general partner made advances to the Partnership of $732,923 in 1997. The funds were used to make contributions to 808 Investment Limited Partnership. The Partnership repaid $216,835 in 1998, $321,582 in 1999 and $17,500 in 2000. The advances are non-interest bearing and due on demand. The balance at December 31, 2000 and 1999 was $177,006 and $194,506, respectively.
	Distributions Receivable
At December 31, 1999, distributions of $28,403 from Community Circle and $11,868 from Southern Boulevard I had not been received. The distributions were received during 2000.
URBAN IMPROVEMENT FUND LIMITED 1973-II
(A Limited Partnership)
Notes to Financial Statements -- Continued
Note 2 -- Reconciliation Between Net Loss and Partners' Capital (Deficit)
of the Partnership For Financial Reporting Purposes and Income
Tax Reporting Purposes
A reconciliation of the Partnership's loss for financial reporting purposes and the Partnership's loss for income tax reporting purposes follows:
											For the Year Ended
											 December 31,
									 2000 	 1999 	 1998
Net income (loss) for financial reporting
purposes			$ (24,024)	$ 90,021 	$ (236,464)
Amortization of initial or rent-up fees and
other costs of acquisition capitalized
for financial reporting purposes and
previously deducted for income tax
reporting purposes.	16,863 	16,863 	16,863
Equity in income (losses) reported by Local
	Limited Partnerships for income tax
	reporting purposes in excess of income
	(losses) for financial reporting purposes	728,246 	6,500,805 	228,191
Accrual and other adjustments for
	financial reporting purposes	 58,118 	 129,359 	 146,829
Net income as reported on the federal
	income tax return	$ 779,203 	$6,737,048 	$ 155,419
A reconciliation of partners' capital (deficit) for financial reporting purposes and partners' capital (deficit) for income tax reporting purposes follows:
											For the Year Ended 											 December 31,
									 2000 	 1999 	 1998
Partners' capital (deficit) for financial
	reporting purposes	$2,575,970 	$2,676,446 	$2,586,475
Unamortized portion of initial and rent-up
	fees and other costs of acquisition
	capitalized for financial reporting
	purposes and previously deducted for
	income tax reporting purposes	(802,197)	(819,060)	(835,923)
Commissions and offering expenses capital-
	ized for income tax reporting purposes
	and charged to capital for financial
	reporting purposes	1,237,673 	1,237,673 	1,237,673
URBAN IMPROVEMENT FUND LIMITED 1973-II
(A Limited Partnership)
Notes to Financial Statements -- Continued
Note 2 -- Reconciliation Between Net Income (Loss) and Partners' Capital
(Deficit) of the Partnership for Financial Reporting Purposes and
	 Income Tax Reporting Purposes -- Continued
											For the Year Ended
											 December 31,
									 2000 	 1999 	 1998
Equity in cumulative losses of Local
	Limited Partnerships for income tax
	reporting purposes in excess of losses
	for financial reporting purposes	$(22,247,853)	$(22,868,701)	$(29,618,224)
Accrual and other adjustments for
	financial reporting purposes	 1,278,167 	 1,090,690 	 1,220,049
Partners' capital (deficit) as reported
	on the federal income tax return	$(17,958,240)	$(18,682,902)	$(25,409,950)
The Partnership has received a ruling from the Internal Revenue Service that the basis of the limited partners' interests in the Partnership will include the Partnership's allocable share of basis resulting from mortgage debt of the Local Limited Partnerships under Section 752 of the Internal Revenue Code.
Note 3 -- Management of Urban Improvement Fund Limited -- 1973-II
Under the terms of the Limited Partnership Agreement, the Partnership is required to pay the General Partner an annual management fee equal to one-quarter of one percent of invested assets or $130,376 at December 31, 2000. (The fee will not be more than fifty percent of the Partnership's annual net cash flow, as defined, subject to an annual minimum of $70,000.) Management fees payable to the General Partner have been accrued if cash flow was not sufficient to pay the fee in the year incurred. For the years ended December 31, 2000, 1999 and 1998, the minimum fee of $70,000 has been accrued. At December 31, 2000, management fees of $1,278,167 have been recorded as a liability to the General Partner.
Upon liquidation, unpaid management fees will have first priority to the proceeds. The Partnership will also pay the General Partner a liquidation fee for the sale of projects. The liquidation fee is the lesser of (i) ten percent of the net proceeds to the Partnership from the sale of a project(s) or (ii) one percent of the sales price plus three percent of the net proceeds after deducting an amount sufficient to pay long-term capital gains taxes. No part of such fee shall accrue or be paid unless: (i) the Limited Partners' share of the proceeds has been distributed to them, (ii) the Limited Partners shall have first received an amount equal to their invested capital attributable to the project(s) sold, and (iii) the Limited Partners have received an amount sufficient to pay long-term capital gains taxes from the sale of the project(s), if any, calculated at the maximum rate then in effect.
URBAN IMPROVEMENT FUND LIMITED 1973-II
(A Limited Partnership)
Notes to Financial Statements -- Continued
Note 3 -- Management of Urban Improvement Fund Limited -- 1973-II -- Continued
The General Partner of the Partnership is a corporation owned one-hundred percent by Paul H. Pfleger. Partnership Services, Inc. (PSI), another corporation in which Paul H. Pfleger owns one-hundred percent, has contracted with the General Partner and the Partnership to provide certain management and other services to any projects in which the Partnership has an interest. No fees were paid to PSI during 2000, 1999 or 1998. In addition, PSI has become the General Partner in two of the Local Limited Partnerships in which the Partnership has investments: Community Circle, Limited and 808 Investments Limited Partnerships. During 1997, PSI was removed as General Partner of 808 Investments Limited Partnership and converted to a Limited Partner. The new General Partner is a corporation in which Paul H. Pfleger owns a majority interest.
Note 4 -- Investments in Local Limited Partnerships Accounted for on the Equity
					 Method
The Partnership has ninety-five percent to ninety-nine percent interests in profits and losses of the Local Limited Partnerships. Investments in these Local Limited Partnerships were made in installments based typically on the stage of completion and/or occupancy.
Investment in and advances to the Local Limited Partnerships accounted for on the equity method are as follows:
		 Equity In		 Losses Not		 Costs of
	 Capital	 Income		 Recorded		Acquisition
	Contributions	 (Losses) 	 Subtotal 	 (Note 1) 	Advances	 (Note 1) 	 Total
December 31, 2000:
Community Cir.,Ltd	$ 282,713	$ (433,337)	$ (150,624)	$ 28,850	$ 36,692	$ 85,082	$ 0
Crowninshield Apts	 682,687	 (3,376,841)	 (2,694,154)	 2,537,722	 0	 156,432	 0
Holly Street	 261,000	 (1,215,572)	 (954,572)	 913,902	 0	 40,670	 0
King Drive Apts	 300,640	 (3,303,358)	 (3,002,718)	 2,834,924	 0	 167,794	 0
808 Investments L.P. 2,540,114	 1,323,127	 3,863,241	 0	 0	 185,488	 4,048,729
Met Paca I Assoc	 159,341	 (377,157)	 (217,816)	 194,521	 0	 23,295	 0
Morrisania II	 882,740	 (3,618,535)	 (2,735,795)	 2,637,208	 0	 98,587	 0
Southern Blvd. I	 180,235	 (677,498)	 (497,263)	 452,414	 0	 44,849	 0
	$5,289,470	$(11,679,171)	$ (6,389,701)	$9,599,541	$ 36,692	$ 802,197	$4,048,729
URBAN IMPROVEMENT FUND LIMITED 1973-II
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
Note 4 -- Investments in Local Limited Partnerships Accounted for on the Equity
Method -- Continued
		 Equity In		 Losses Not		 Costs of
	 Capital	 Income		 Recorded		Acquisition
	Contributions	 (Losses) 	 Subtotal 	 (Note 1) 	Advances	 (Note 1) 	 Total
December 31, 1999:
Community Cir.,Ltd	$ 350,369	$ (469,283)	$ (118,914)	$ 33,832	$ -0-	$ 85,082	$ -0-
Crowninshield Apts	 682,687	 (3,564,144)	 (2,881,457)	 2,725,025	 -0-	 156,432	 -0-
Holly Street	 261,000	 (1,277,057)	 (1,016,057)	 975,387	 -0-	 40,670	 -0-
King Drive Apts	 300,640	 (3,143,088)	 (2,842,448)	 2,674,654	 -0-	 167,794	 -0-
808 Investments L.P. 2,548,960	 1,257,703	 3,806,663	 -0-	 -0-	 202,351	 4,009,014
Met Paca I Assoc	 159,341	 (480,271)	 (320,930)	 297,635	 -0- 	 23,295	 -0-
Morrisania II	 882,740	 (3,684,231)	 (2,801,491)	 2,702,904	 -0-	 98,587	 -0-
Southern Blvd. I	 180,235	 (645,163)	 (464,928)	 420,079	 -0-	 44,849	 -0-
	$5,365,972	$(12,005,534)	$ (6,639,562)	$ 9,829,516	$ -0-	$ 819,060	$4,009,014
A reconciliation to combined statement of partners' deficits follows:
	 2000 	 1999
Urban Improvement Fund Limited -- 1973-II
capital contributions less equity in
losses	$(6,389,701)	$(6,639,562)
Flexible subsidy contributed by HUD
during 1981 and 1982 allocated to
partners' capital	 123,135	 123,135
Urban Improvement Fund Limited -- 1973-II's
share of combined equity of Local Limited
Partnerships per the accompanying statement	$(6,266,566)	$(6,516,427)
The combined balance sheets of the Local Limited Partnerships, accounted for on the equity method at December 31, 2000 and 1999, and the related combined statements of operations, changes in partners' capital (deficit), cash flows and selected footnote disclosures from the audited financial statements of the Local Limited Partnerships for the years ended December 31, 2000, 1999 and 1998 are summarized as follows:
URBAN IMPROVEMENT FUND LIMITED 1973-II
(A Limited Partnership)
Notes to Financial Statements -- Continued
Note 4 -- Investments in Local Limited Partnerships Accounted For on the Equity
Method -- Continued
COMBINED BALANCE SHEETS OF LOCAL LIMITED PARTNERSHIPS
Assets
													 December 31,
												 2000 	 1999
Cash												$ 959,121 	$ 603,344
Cash in escrow and other restricted funds	3,093,496 	2,824,889
Accounts receivable					159,756 	376,088
Prepaid expenses							349,403 	347,870
Notes receivable							36,289 	0
Other assets, net of accumulated amortization	 418,705 	 464,326
												5,016,770 	4,616,517
Property on the basis of cost:
	Land									4,771,773 	4,771,773
	Buildings, improvements and equipment	 50,553.435 	 49,881,141
												55,325,208 	54,652,914
	Less accumulated depreciation	 (28,904,637)	 (27,501,291)
												 26,420,571 	 27,151,623
												$ 31,437,341 	$ 31,768,140
Liabilities and Partners' Capital (Deficit)
													 December 31,
												 2000 	 1999
Mortgage notes payable				$ 35,087,048 	$ 35,852,593
Accounts payable and accrued expenses	1,901,289 	1,790,888
Notes payable								41,933 	52,511
Advances from Urban Improvement Fund Ltd. --
1973-II										36,692 	0
Advances from and payables to affiliates	387,707 	387,707
Payable to current and former general partners	76,288 	56,688
Tenants' security and other deposits	 428,249 	 413,185
												37,959,206 	38,553,572
Partners' capital (deficit) per accompanying
statements									 (6,521,865)	 (6,785,432)
												$ 31,437,341 	$ 31,768,140
URBAN IMPROVEMENT FUND LIMITED 1973-II
(A Limited Partnership)
Notes to Financial Statements -- Continued
Note 4 -- Investments in Local Limited Partnerships Accounted For on the Equity
Method -- Continued
COMBINED STATEMENTS OF INCOME (LOSS) OF LOCAL LIMITED PARTNERSHIPS
									For the Year Ended
									 December 31,
							 2000 	 1999 	 1998
Revenue:
Net rental income	$11,816,047 	$11,340,189 	$11,183,697
Financial		62,730 	309,968 	395,314
Other					 218,568 	 220,864 	 250,109
							12,097,345 	11,871,021 	11,829,120
Expenses:
Administrative	2,082,457 	2,174,183 	2,081,847
Utilities		2,103,045 	1,593,863 	1,672,837
Operating		2,692,313 	2,592,631 	2,623,630
Taxes and insurance	1,871,455 	1,656,238 	1,689,778
Financial expenses	1,558,229 	1,865,185 	2,092,645
Depreciation and amortization	1,445,701 	1,520,780 	1,524,600
Other expenses	 0 	 765 	 45,188
							 11,753,200 	 11,403,645 	 11,730,525
Net income (loss)	$ 344,145 	$ 467,376 	$ 98,595
Amortization of capitalized interest amounted to $6,279 in 2000, 1999 and 1998.
URBAN IMPROVEMENT FUND LIMITED 1973-II
(A Limited Partnership)
Notes to Financial Statements -- Continued
Note 4 -- Investments in Local Limited Partnerships Accounted For on the Equity
Method -- Continued
COMBINED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
OF LOCAL LIMITED PARTNERSHIPS
		 Urban
		Improvement	 Other
		Fund Limited	Limited	General
		 1973-II 	Partners 	Partners 	 Total
Partners' capital (deficit)
at January 1, 1998	$ (6,496,150)	$ 21,434 	$(280,283)	$ (6,754,999)
Net income (loss) -- 1998	 96,968	 2,384	 (757)	 98,595
Distributions	 (248,975)	 -0- 	 (14,264)	 (263,239)
Partners' capital (deficit)
at December 31, 1998	 (6,648,157)	 23,818 	 (295,304)	 (6,919,643)
Net income (loss) -- 1999	 446,872	 (4,662)	 25,166	 467,376
Distributions	 (315,142)	 (397)	 (17,626)	 (333,165)
Partners' capital (deficit)
at December 31, 1999	 (6,516,427)	 18,759 	 (287,764)	 (6,785,432)
Net income (loss) -- 2000	 326,363	 358	 17,424	 344,145
Distributions	 (76,502)	 (712)	 (3,364)	 (80,578)
Partners' capital (deficit)
at December 31, 2000	$ (6,266,566)	$ 18,405 	$ 273,704	$ (6,521,865)
URBAN IMPROVEMENT FUND LIMITED 1973-II
(A Limited Partnership)
Notes to Financial Statements -- Continued
COMBINED STATEMENTS OF CASH FLOWS OF LOCAL LIMITED PARTNERSHIPS
Note 4 -- Investments in Local Limited Partnerships Accounted for on the Equity
Method -- Continued
															 		 December 31,
															 2000 	 1999 	 1998
CASH FLOWS FROM OPERATING ACTIVITIES:
	Net income								$ 344,145 	$ 467,376 	$ 98,595
	Adjustments to reconcile net loss to net
	 cash provided (used) by operating
	 activities:
			Depreciation and amortization	1,448,967 	1,478,422 	1,524,600
			Increase (decrease) in receivables,
				escrows, restricted deposits, prepaid
				expenses and other assets	(50,542)	(395,354)	(212,407)
			Increase (decrease) in accounts payable,
				accrued expenses and tenant security
				deposit liability	 125,465 	 229,675 	 400,376
					Total adjustments	 1,523,890 	 1,312,743 	 1,712,569
						Net cash provided (used) by
							operating activities	1,868,035 	1,780,119 	1,811,164
CASH FLOWS FROM INVESTING ACTIVITIES:
	Capital expenditures	 (672,294)	 (594,786)	 (808,263)
						Net cash used by investing activities	(672,294)	(594,786)	(808,263)
CASH FLOWS FROM FINANCING ACTIVITIES:
	Increase in notes receivable 	(36,289)	0 	0
	Proceeds from (repayments on) note payable	(10,578)	729 	16,993
	Mortgage principal payments	(765,545)	(792,031)	(631,412)
	Distributions paid			(80,578)	(333,165)	(263,239)
	Net advances from (to) affiliates	 56,292 	 (62,055)	 (29,894)
						Net cash provided (used) by
							financing activities	 (836,698)	 (1,186,522)	 (907,552)
INCREASE (DECREASE) IN CASH	355,777 	(1,189)	95,349
CASH BALANCE AT BEGINNING OF YEAR	 603,344 	 604,533 	 509,184
CASH BALANCE AT END OF YEAR	$ 959,121 	$ 603,344 	$ 604,533
SUPPLEMENTAL INFORMATION REGARDING
INTEREST PAYMENTS IS AS FOLLOWS:
Interest paid				$ 1,753,637 	$ 1,915,902 	$ 1,899,953
URBAN IMPROVEMENT FUND LIMITED 1973-II
(A Limited Partnership)
Notes to Financial Statements -- Continued
Note 4 -- Investments in Local Limited Partnerships Accounted for on the Equity
Method -- Continued
A reconciliation between combined net loss for financial reporting purposes and the combined net income for income tax reporting purposes follows:
																							 December 31,
													 2000 	 1999 	 1998
Combined net income (loss) for financial
	reporting purposes			$ 344,145 	$ 467,376 	$ 98,595
Excess depreciation for financial
	reporting purposes over depreciation
	for income tax reporting purposes	534,463 	838,690 	116,804
Accrual adjustments for financial
	reporting purposes			 (26,392)	 0 	 77,445
Combined net income as reported on the
	federal income tax returns	$ 852,216 	$1,306,066 	$ 292,844
A reconciliation of combined partners' capital (deficit) for financial reporting purposes and combined partners' capital (deficit) for income tax reporting purposes follows:
															 2000 	 1999 	 1998
Combined partners' capital (deficit)
	for financial reporting purposes	$(6,521,865)	$ (6,785,432)	$ (6,919,643)
Carrying costs during construction
	capitalized for financial report-
	ing purposes, excess of deprecia-
	tion for income tax reporting pur-
	poses and accrual adjustments for
	financial reporting purposes	 (13,269,665)	 (13,335,922)	 (14,133,482)
Combined partners' capital (deficit)
	as reported on the federal income
	tax returns							$(19,791,530)	$(20,121,354)	$(21,053,125)
URBAN IMPROVEMENT FUND LIMITED 1973-II
(A Limited Partnership)
Notes to Financial Statements -- Continued
Note 4 -- Investments in Local Limited Partnerships Accounted for on the Equity
Method -- Continued
	Cost of Buildings
For financial statement purposes, the Local Limited Partnerships generally capitalize all project costs, including payments to the general partners, interest, taxes, carrying costs and operating expenses offset by incidental rental income, up to the cutoff date for cost certification purposes. For income tax reporting purposes, certain of these amounts were deducted when paid.
	Depreciation and Amortization
For financial statement purposes, depreciation is computed using the straight-line and various accelerated methods over useful lives of fifteen to forty years from the date of completion of the building or rehabilitation, and three to twelve years for equipment and land improvements. For income tax reporting purposes, provisions for depreciation are generally computed over the same or shorter periods using accelerated methods and certain rehabilitation costs are amortized using the straight-line method over sixty months under the provisions of Section 167(k) of the Internal Revenue Code.
Certain expenses related to obtaining permanent financing for the projects have been deferred and are being amortized for financial reporting purposes using the straight-line method over periods of five to forty years.
	Mortgage Notes Payable
Seven of the Local Limited Partnerships have mortgages which are payable to or are insured by the Department of Housing and Urban Development (HUD) and the Massachusetts Housing Financing Agency (MHFA). The mortgage notes payable by 808 Investment Limited Partnership are not insured. The mortgage notes payable are secured by deeds of trust on rental property and bear interest at the rate of approximately 7 percent to 9.2 percent per annum. The mortgages will be repaid in monthly installments of principal and interest aggregating approximately $294,000 over periods of forty years. HUD will make monthly interest assistance payments of approximately $97,000 to seven Local Limited Partnerships whose mortgages are insured under Section 236 in amounts which will reduce the mortgage payments of six of the Local Limited Partners to those required for mortgages carrying a one percent interest rate and one to a two and one-half percent interest rate.
Details of the loans are as follows:
											Mortgage Balance	Mortgage Balance
											December 31, 2000	December 31, 1999
HUD insured						$10,939,707	$11,339,593
MFHA insured					5,473,630	5,632,887
Not insured						 18,673,711	 18,880,113
											$35,087,048	$35,852,593
URBAN IMPROVEMENT FUND LIMITED 1973-II
(A Limited Partnership)
Notes to Financial Statements -- Continued
Note 4 -- Investments in Local Limited Partnerships Accounted for on the Equity
Method -- Continued
	Mortgage Notes Payable -- Continued
The scheduled principal reductions for the next five years are as follows:
					 Year Ended
					December 31,		 Amount
					 2001					$ 846,621
					 2002					911,362
					 2003					979,642
					 2004					1,053,836
					 2005					1,139,642
					 Beyond				 30,155,945
															$35,087,048
	National Approved Housing Act Subsidies and Restrictions
Under terms of the regulatory agreements with HUD and MHFA, seven of the Local Limited Partnerships cannot make cash distributions to partners of the Local Limited Partnerships in excess of six percent per annum of stated equity in the respective partnerships. Such distributions are cumulative but can only be paid from "surplus cash," as defined in the agreements. The Local Limited Partnerships must deposit all cash in excess of the distributable amounts into residual receipts funds which are under the control of the mortgagees, and from which disbursements must be approved by the respective agencies. As of December 31, 2000, approximately $1,470,000 could be paid to partners of the Local Limited Partnerships as surplus cash becomes available.
Under terms of the regulatory agreements, seven of the Local Limited Partnerships are required to make monthly deposits into replacement funds which are under the control of the mortgagees. Such deposits commence with the initial principal payments on the mortgage loans. Expenditures from the replacement funds must be approved by the respective agencies.
Five of the Local Limited Partnerships have entered into rent supplement and/or Section 8 contracts with HUD or state agencies to provide financial assistance to qualified tenants of the apartment units. Under terms of these contracts, HUD will pay a portion of the rent on behalf of qualified tenants. The maximum dollar amount of these payments is limited by HUD. A substantial portion of rental income is collected through these contracts. During 2000, 1999 and 1998, the Local Limited Partnerships received approximately $2,653,000, $2,667,000 and $2,257,000, respectively, in Section 8 and rent supplement funds.
URBAN IMPROVEMENT FUND LIMITED 1973-II
(A Limited Partnership)
Notes to Financial Statements -- Continued
Note 4 -- Investments in Local Limited Partnerships Accounted for on the Equity
Method -- Continued
	Management
The Local Limited Partnerships have entered into property management contracts with various agents under which the agents are paid property management fees. Some of the management agents are affiliated with or are the general partners of the Local Limited Partnerships. Details of the management contracts are as follows:
													Affiliate
											Percent of		of General
			Partnership				 Revenues 	2000 Expense	 Partner
Community Circle				7.12%	$ 77,224	No
Crowninshield Apartments	6.00%	$122,875	Yes
Holly Street					6.00%	$ 26,197	Yes
King Drive						11.75%	$189,531	Yes
808 Investment LP				4.00%	$172,548	No
Met-Paca Section 1				4.67%	$ 19,536	Yes
Morrisiana II					7.06%	$ 85,008	Yes
Southern Boulevard				5.80%	$ 38,544	Yes
Note 5 -- Investment in Mott Haven VII and Mott Haven VIII
Mott Haven VII and Mott Haven VIII experienced cash flow deficits from operations resulting in default of the mortgage notes to HUD. HUD, the owners and the General Partner believed that it was in the best interests of the development and its tenants that the projects be renovated and reconfigured, and that such result can best be accomplished through replacement of the existing management and ownership structure with community-based owners and managers. The General Partner transferred the property to HUD during 1997. For financial reporting purposes, the Partnership has recorded the disposition of its investment in Mott Haven VII and Mott Haven VIII during November 1996. During 1999, HUD foreclosed on the property. For income tax purposes, the gain on foreclosure was recorded in 1999.
Note 6 -- Investment in 808 Investments Limited Partnership
808 Memorial Drive Associates sold its real estate project located in Cambridge, Massachusetts during July 1997 in a tax free exchange. The Partnership changed its name to 808 Investments Limited Partnership and reinvested the proceeds in three properties that are conventional, multi-family residential projects during December 1997.
URBAN IMPROVEMENT FUND LIMITED 1973-II
(A Limited Partnership)
Notes to Financial Statements -- Continued
Note 7 - Selected Quarterly Financial Data
The following is a summary of unaudited financial data regarding the Company's quarterly results of operations:
	 First	 Second	 Third	 Fourth
2000 	 Quarter 	 Quarter 	 Quarter 	 Quarter	 Total
Loss before equity
in income of local
limited partnerships	$ (26,231)	$ (41,250)	$ (26,739)	$ (26,192)	$(120,412)
Equity in loss or local
limited partnerships	 (14,192)	 22,500 	 22,500 	 65,580 	 96,388
Net loss	$ (40,423)	$ (18,750)	$ (4,239)	$ 39,388 	$ (24,024)
Loss per LP unit	$ (3)	$ (2)	$ 0 	$ 3 	$ (2)
	 First	 Second	 Third	 Fourth
1999 	 Quarter 	 Quarter 	 Quarter 	 Quarter	 Total
Loss before equity
in income of (loss)
of local limited
partnerships	$ (26,670)	$ (28,193)	$ (26,273)	$ (36,823)	$(117,959)
Equity in income (loss)
of local limited
partnerships	 (48,550)	 (48,550)	 19,146 	 285,934 	 207,980
Net income (loss)	$ (75,220)	$ (76,743)	$ (7,127)	$ 249,111 	$ 90,021
Income (loss) per
LP unit	$ (6)	$ (6)	$ (1)	$ 21 	$ 8
URBAN IMPROVEMENT FUND LIMITED 1973-II
(A Limited Partnership)
INDEBTEDNESS OF RELATED PARTIES
							 December 31,
								 2000		 1999
							 2000	 Change	 1999 	 Change	 1998
Advances to local limited
partnerships: (A)
Community Circle, Ltd.	$ 36,692	$ 36,692	$ 0	$(59,842)	$ 59,842
(A)	All advances are included in the balance sheet caption "Investments in and advances to Local Limited Partnerships accounted for on the equity method." See Note 4 to the financial statements. The advances have been reduced to zero on the books of the Partnership because the investment in these partnerships have been reduced to zero under the equity method of accounting.
			 December 31,
				 2000		 1999
			 2000	Change	 1999 	 Change	 1998
Indebtedness to General
Partner:
Management fee payable
to General Partner	$1,278,167	$ 70,000	$1,208,167	$ 70,000	$1,138,167
Advance from General
Partner	$ 177,006	$ (17,500)	$ 194,506	$(312,582)	$ 507,088
URBAN IMPROVEMENT FUND LIMITED 1973-II
(A Limited Partnership)
REAL ESTATE AND ACCUMULATED DEPRECIATION OF LOCAL LIMITED PARTNERSHIPS -- COMBINED WORKPAPERS
December 31, 2000
	Life in Which
Depreciation
			 				 in Latest
			 Buildings 			 Date of 		 Income
Description 		 and 		Accumulated	Completion of	 Date	 Statement
Partnership/Location 	No. of Units	 Land 	Improvement	 Total 	Depreciation	Construction 	Acquired	 is Computed
Community Circle, Ltd.
Cleveland, OH	160 apartments	$ 240,000	$ 4,456,364	$ 4,696,364	$ (3,048,485)	 1974	 1973	 3-40 years
Crowninshield Apartments
Associates, Peabody, MA	284 apartments	 128,109	 7,011,816	 7,139,925	 (6,311,722)	 1975	 1973	10-20 years
Holly Street Associates
Methuen and Lawrence, MA	 71 apartments	 28,353	 2,306,830	 2,335,183	 (1,827,269)	 1975	 1973	22-40 years
King Drive Apartments
Assoc., Chicago, IL	315 apartments	 340,494	 6,879,734	 7,220,228	 (6,418,952)	 1974	 1973	12-20 years
Met-Paca I Associates
New York, New York	 37 apartments	 83,642	 1,165,516	 1,249,158	 (1,021,625)	 1974	 1973	 5-20 years
Morrisania II Associates
New York, New York	161 apartments	 91,956	 5,475,112	 5,567,068	 (5,381,267)	 1975	 1973 	10­25 years
Southern Boulevard
Partners, Bronx, NY	 73 apartments	 19,219	 2,902,787	 2,922,006	 (2,439,578)	 1974	 1973	20-25 years
808 Investments Limited
Partnership:
Sedgefield	124 apartments	 550,000	 3,805,354	 4,355,354	 (465,684)	 1988	 1997	 7-27.5 years
Summit	128 apartments	 1,790,000	 6,762,856	 8,552,856	 (797,132)	 1987	 1997	 7-27.5 years
Windsor	399 apartments	 1,500,000	 9,787,066	 11,287,066	 (1,192,923)	 1986	 1997	 7-27.5 years
	 		$4,771,773	$50,553,435	$55,325,208	$(28,904,637)
		Balance at January 1, 1999 	$4,771,773	$49,286,355	$54,058,128	$26,022,869
		 Additions during year	 0	 594,786	 594,786	 0
		 Disposals during year	 0	 0	 0	 0
		 Depreciation expense 	 0 	 0 	 0 	 1,478,422
		Balance at December 31, 1999 	 4,771,773	 49,881,141	 54,652,914	 27,501,291
		 Additions during year	 0	 672,294	 672,294	 0
		 Disposals during year	 0 0	 0	 0
		 Depreciation expense 	 0	 0	 0 	 1,403,346
		Balance at December 31, 2000 	$4,771,773	$50,553,435	$55,325,208	$28,904,637
URBAN IMPROVEMENT FUND LIMITED 1973-II
(A Limited Partnership)
MORTGAGE LOANS ON REAL ESTATE
December 31, 2000
		Outstanding	 Gross	 Net
Description 	 Mortgage	Interest	 Interest 	 Gross	 Interest	 Net	Maturity	Balloon at	Insured
Partnership/Location 	No. of Units	 Balance 	 Rate 	 Rate 	 Payment 	 Subsidy 	 Payment 	 Date 	 Maturity 	 By
Community Circle, Ltd.	160 apartments	$ 2,057,052	 7.00%	 1.00%	$ 18,852	$ (11,654)	 $ 7,198	Jun 2025	$ 0	 HUD
Crowninshield Apartments	284 apartments	 4,339,295	 7.46%	 2.5%	 36,650	 (20,519)	 16,131	Dec 2018	 0	 MFHA
Holly Street Associates	 71 apartments	 1,134,335	 9.21%	 1.00%	 12,071	 (8,090)	 3,981	Apr 2016	 0	 MFHA
King Drive Apartments	315 apartments	 4,022,290	 7.00%	 1.00%	 37,681	 (24,031)	 13,650	Oct 2014	 0	 HUD
Met-Paca Section I	 37 apartments	 629,579	 7.00%	 1.00%	 9,536	 (3,711)	 5,825	Mar 2015	 0	 HUD
Morrisania II Associates	161 apartments	 3,062,356	 8.50%	 1.00%	 29,599	 (22,913)	 6,686	Jul 2016	 0	 HUD
Southern Boulevard	 72 apartments	 1,168,430	 7.00%	 1.00%	 16,806	 (6,532)	 10,274	Jul 2016	 0	 HUD
808 Investments Limited
Partnership:
Sedgefield	124 apartments	 3,495,639	 7.19%	 7.19%	 24,693	 0	 24,493	Jan 2008	 $3,082,000	 N/A
Summit	128 apartments	 5,753,855	 7.28%	 7.28%	 40,991	 0	 40,991	Jan 2008	 5,080,000	 N/A
Windsor	399 apartments	 9,424,217	 7.29%	 7.29%	 67,204	 0	 67,204	Jan 2008	 8,321,000	 N/A
	 		$35,087,048			$ 294,083	$ (97,450)	$ 196,633