FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

(Mark One)

(X)   QUARTERLY REPORT PERSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934.

      For the quarterly period ended September 30, 2000

                                              or

( )   TRANSITION REPORT PERSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934

      For the transition period from _______ to _______
Commission file number        0-17696

AMERICAN AFFORDABLE HOUSING II LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)

One Boston Place, Suite 2100, Boston, Massachusetts  02108
(Address of principal executive offices)           (Zip Code)

Registrants telephone number, including area code (617)624-8900

(Former name, former address and former fiscal year, if changed since last report)

      Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceeding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED September 30, 2000

TABLE OF CONTENTS

American Affordable Housing II Limited Partnership

BALANCE SHEETS

ASSETS

The accompanying notes are an integral part of this statement

American Affordable Housing II Limited Partnership

STATEMENTS OF OPERATIONS

Three Months Ended September 30,

(Unaudited)

The accompanying notes are an integral part of this statement

American Affordable Housing II Limited Partnership

STATEMENTS OF OPERATIONS

Six Months Ended September 30,
(Unaudited)

The accompanying notes are an integral part of this statement

American Affordable Housing II Limited Partnership

STATEMENTS OF CHANGES IN PARTNERS CAPITAL

Six Months Ended September 30,
(Unaudited)

The accompanying notes are an integral part of this statement

American Affordable Housing II Limited Partnership

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

American Affordable Housing II Limited Partnership

NOTES TO FINANCIAL STATEMENTS
September 30, 2000
(Unaudited)

NOTE A - ORGANIZATION

American Affordable Housing II Limited Partnership
("Partnership") was formed under the laws of The Commonwealth of
Massachusetts on May 13, 1987, for the purpose of acquiring, holding, and
disposing of limited partnership interests in operating partnerships
which were to acquire, develop, rehabilitate, operate and own newly
constructed, existing or rehabilitated low-income apartment complexes.
The general partners of the Partnership are Boston Capital Associates
Limited Partnership and C&M Associates d/b/a Boston Capital Associates.

Pursuant to the Securities Act of 1933, the Partnership filed a
Form S-11 Registration Statement with the Securities and Exchange
Commission, effective September 21, 1987, which covered the offering (the
"Public Offering") of the Partnership's units of limited partner
interest, as well as the units of limited partner interest offered by
American Affordable Housing I, III, IV, and V Limited Partnerships
(together with the Partnership, the "Partnerships"). The Partnerships
registered 50,000 units of limited partner interest at $1,000 each unit
for sale to the public. The Partnership sold 26,501 units of limited partner
interest, representing $26,501,000 of capital contributions.

NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES

The condensed financial statements included herein as of September 30, 2000 and for the three and six months then ended have been prepared by the
Registrant, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. The Registrant's accounting and financial
reporting policies are in conformity with generally accepted accounting
principles and include adjustments in interim periods considered necessary for
a fair presentation of the results of operations. All such adjustments are of
a normal recurring nature. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations. It is suggested that these condensed
financial statements be read in conjunction with the financial statements and
the notes thereto included in the Registrant's Annual Report Statement on Form
10-K.

The accompanying financial statements reflect the Partnership's
results of operations for an interim period and are not necessarily
indicative of the results of operations for the fiscal year ending
March 31, 2001.

American Affordable Housing II Limited Partnership
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
September 30, 2000
(Unaudited)

NOTE C - RELATED PARTY TRANSACTIONS

An annual asset management fee based on 0.5 percent of the aggregate
cost of all apartment complexes owned by the Operating Partnerships, has been
accrued as payable to Boston Capital Asset Management Limited Partnership.
The annual asset management fee accrued for the quarters ended September 30,
2000 and 1999 was $110,465 for both years.

Affiliates of the General Partner have advanced $233,469 to the
Partnership to pay certain operating expenses of the Partnership, and make
advances and/or loans to Operating Partnerships. These and any additional
advances will be repaid, without interest, from available cash flow or the
proceeds of sales or refinancing of the Partnership's interests in Operating
Partnerships.

The Partnership has also accrued certain affiliate administrative
expenses, including but not limited to travel, printing, salaries, postage,
and overhead allocations, totaling $16,595.

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS

At September 30, 2000 and 1999, the Partnership had limited partnership
equity interests in forty nine and fifty Operating Partnerships, respectively,
each of which owned an apartment complex.

Under the terms of the Partnership's investment in each Operating
Partnership, the Partnership was required to make capital contributions to
such Operating Partnerships. These contributions were payable in installments
upon each Operating Partnership achieving specified levels of construction
and/or operations. At September 30, 2000 and 1999, all such capital
contributions had been paid to the Operating Partnerships.

The Partnership's fiscal year ends March 31st of each year, while all
the Operating Partnerships' fiscal years are the calendar year. Pursuant to
the provisions of each Operating Partnership Agreement, financial results for
each of the Operating Partnerships are provided to the Partnership within 45
days after the close of each Operating Partnership's quarterly period.
Accordingly, the current financial results available for the Operating
Partnerships are for the six months ended June 30, 2000.

NOTES TO FINANCIAL STATEMENTS
September 30, 2000
(Unaudited)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

The unaudited combined statements of operations of the Operating
Partnerships for the six months ended June 30, 2000 and 1999 are as follows:

The Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the partnership adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.

American Affordable Housing II Limited Partnership
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
September 30, 2000
(Unaudited)

The Partnership's taxable loss for the year ended March 31,
2001 is expected to differ from its loss for financial reporting
purposes. This is primarily due to accounting differences in depreciation incurred by the Operating Partnerships and also differences between the equity method of accounting and IRS accounting methods. No provision or benefit for income taxes has been included in these financial statements since taxable income or loss passes through to, and is reportable by, the partners individually.

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

The Partnership's primary source of funds was the proceeds of its
Public Offering. Other sources of liquidity have included (i) interest
earned on working capital reserves, and (ii) cash distributions from
operations of the Operating Partnerships in which the Partnership has
invested. Both of these sources of liquidity are available to meet the
obligations of the Partnership.

The Partnership is currently accruing the annual asset management fee.
Asset management fees accrued during the quarter ended September 30, 2000 were
$110,464 and total asset management fees accrued as of September 30, 2000 were
$4,927,683. Pursuant to the Partnership Agreement, such liabilities will be
deferred until the Partnership receives sales or refinancing proceeds from
Operating Partnerships, which will be used to satisfy such liabilities.

The Partnership has recognized other income as of September 30, 2000 in the
amount of $4,079. The total represents distributions from Operating
Partnerships which the Partnership normally would record as a decrease in the
Investment in Operating Partnerships. Due to the equity method of accounting,
the Partnership has recorded these distributions as other income.

The Partnership has recorded $5,177,748 as payable to affiliates. This
represents advances to pay certain third party operating expenses of the
Partnership, advances and/or loans to Operating Partnerships, accrued
partnership management fees, and accrued overhead allocations. These and any
future advances or accruals will be paid, without interest, from available
cash flow, reporting fees, or the proceeds of sales or refinancing of the
Partnership's interest in Operating Partnerships.

Cash flow and reporting fees will be added to the Partnership's working
capital and will be available to meet future third party obligations of the
Partnership. The Partnership is currently pursuing, and will continue to
aggressively pursue, available cash flow and reporting fees and anticipates
that the amount collected will be sufficient to cover future third party
operating expenses.

The Partnership received $26,501,000 in subscriptions for Units (at
$1,000 per Unit) during the period February 2, 1988 to September 21, 1988
pursuant to the Public Offering, resulting in net proceeds available for
investment in Operating Partnerships (after payment of acquisition fees
and expenses and funding of a reserve) of $18,550,700. The Partnership had
committed to investments requiring cash payments of $18,613,764, all of which
had been paid at September 30, 2000. At September 30, 2000 the Partnership
held working capital of $3,019.

As of September 30, 2000 and 1999 the Partnership held limited partnership
interests in 49 and 50 Operating Partnerships, respectively. In each instance
the Apartment Complex owned by the applicable Operating Partnership is
eligible for the Federal Housing Tax Credit. Occupancy of a unit in each
Apartment Complex which initially complied with the Minimum Set-Aside Test
(i.e., occupancy by tenants with incomes equal to no more than a certain
percentage of area median income) and the Rent Restriction Test (i.e., gross
rent charged tenants does not exceed 30% of the applicable income standards)
is referred to hereinafter as "Qualified Occupancy." Each of the Operating
Partnerships and each of the respective Apartment Complexes are described more
fully in the Prospectus or applicable report on Form 8-K. The General Partner
believes that there is adequate casualty insurance on the properties.

As of September 30, 2000 and 1999 the Qualified Occupancy of the Operating
Partnership's was 99.8% and 99.8%, respectively. The Partnership had a total
of 49 properties at September 30, 2000 of which 46 were at 100% Qualified
Occupancy.

The Partnership had invested in a total of 49 and 50 Operating Partnerships as
of September 30, 2000 and 1999, respectively. During the quarters ended
September 30, 2000 and 1999, the Partnership received $5,389 and $1,636,
respectively, in distributions of cash flow and $10,818 and $2,000,
respectively, of reporting fees from the Operating Partnerships. Of the total
cash flow received in the quarters ended September 30, 2000 and 1999, $4,079
and $1,636, respectively, was recorded as miscellaneous income instead of as a
decrease in Investments in Operating Limited Partnerships, due to the equity
method of accounting. No other significant sources of income are anticipated.

The Partnership incurred an annual asset management fee to Boston
Capital Asset Management Limited Partnership in an amount equal to 0.5% of the
aggregate cost of the apartment complexes owned by the Operating Partnerships,
less the amount of certain partnership management and reporting fees paid by
the Operating Partnerships. The annual asset management fee incurred, net of
reporting fees received, during the quarters ended September 30, 2000 and 1999
was $110,465.

Occupancy at Lovington Housing Associates, L.P. (Southview Place Apartments) experienced a downturn during the past four quarters. The local economy and tenant population were adversely impacted by the decline of local oil production. The management company indicated that occupancy improvements are contingent on the recovery of the local economy. Western States Housing was unsuccessful in obtaining financing for deferred maintenance, particularly interior and exterior painting, however funds for these items are being funded through the replacement reserve account and operating cash as it becomes available. This year, three of four buildings exteriors have been painted, with the fourth schedule for late fall 2000. Although the replacement reserve account is under funded, the property remains in compliance with a workout plan to cure the deficit.

East Ridge Associates Limited Partnership (East Ridge Estate) received a copy of a Notice of Acceleration and Demand for Payment, filed by the United States Department of Agriculture (USDA), in May 1999. The General Partner of the Operating Partnership filed an appeal with the National Appeals in November 1999 and the decision to accelerate the mortgage was upheld by the USDA National Appeals Division on January 31, 2000. No actions on the acceleration will be made until a decision has been reached on a motion made by Maine Rural Development to overturn the decision to change the management company from R & K Oxford to Stanford Mgt, LLC, an affiliated company. The Operating General Partner intends to file a workout plan with Maine Rural Development pending a decision on the management company.

A decision on the management agent was not reached by the end of the third quarter. The partnership continues to suffer from ongoing operating deficits, a delinquent mortgage, under funded reserves, and low occupancy, Additionally, the physical condition of the property has suffered due to deferred maintenance at the property. The exterior of the building is in poor condition and requires capital improvements, the unit interiors are in excellent condition, the common areas are in fair condition, and the landscaping needs attention. Maine Rural Development has allowed the property to admit non-elderly tenants that are income qualified due to a change in the demographics of the marketplace of the Southwest Harbor. The third quarter occupancy was 99% as a result of Maine Rural Development issuing waivers at East Ridge on a case-by-case basis.

The Operating Partnership's average physical occupancy for 1999 was 78% and for the first nine months of 2000 was 90%. The historically low occupancy at the project resulted from the expiration of a rental assistance contract with Maine State Housing Authority. The Investment General Partner will continue to monitor the negotiations between the Operating General Partner and Maine Rural Development.

PART II - OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K

(a) Exhibits

(2) None

(4)(a) Form of Amended and Restated Certificate and Agreement
of Limited Partnership and form of Subscription
Agreement for the Partnership

(4)(b)(i) Certificate and Agreement of Limited Partnership of
the Partnership

(4)(b)(ii) Amended Certificate and Agreement of Limited
Partnership of the Partnership

(4)(c) Form of Certificate of Limited Partnership Interest in
the Partnership

(11) None

(15) None

(18) None

(19) None

(20) None

(23) None

(24) None

(25) None

(28) None

(b) Reports on Form 8-K

There were no reports on Form 8-K filed during the period
covered by this report.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.

American Affordable Housing II
Limited Partnership

By: Boston Capital Associates Limited
Partnership

By: C&M Associates, d/b/a
Boston Capital Associates,

Date: November 20, 2000 By: /s/John P. Manning
---------------------------

John P. Manning, Partner