SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10Q

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2000 Commission File No. 016701

UNIPROP MANUFACTURED HOUSING COMMUNITIES INCOME FUND II,

a Michigan Limited Partnership

(Exact name of registrant as specified in its charter)

MICHIGAN

(State or other jurisdiction of

incorporation or organization)

38-2702802

(I.R.S. employer

identification number)

280 Daines Street, Birmingham, Michigan 48009

(Address of principal executive offices) (Zip Code)

(248) 6459261

(Registrant's telephone number, including area code)

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

units of beneficial assignments of limited partnership interest

Yes [ X ] No [ ]

UNIPROP MANUFACTURED HOUSING COMMUNITIES INCOME FUND II,

A MICHIGAN LIMITED PARTNERSHIP

INDEX

PART I FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES

ABOUT MARKET RISK 10

PART II OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K 10

-2-
UNIPROP MANUFACTURED HOUSING COMMUNITIES INCOME FUND II,          
A MICHIGAN LIMITED PARTNERSHIP          
         
BALANCE SHEETS          
         
         
ASSETS September 30,2000   December 31, 1999        
  (Unaudited)      
Properties:              
Land $11,662,525   $11,644,103        
Buildings And Improvements 50,120,951   49,776,786        
Furniture And Fixtures 506,322   453,437        
Manufactured Homes 1,617,466   1,875,567        
  63,907,264   63,749,893        
       
Less Accumulated Depreciation 21,951,278   20,587,823        
41,955,986   43,162,070        
       
Cash And Cash Equivalents 3,386,036   2,821,681        
Unamortized Finance Costs 580,699   597,528        
Other Assets 1,190,431   944,378        
       
Total Assets $47,113,152   $47,525,657        
     
     
       
 
LIABILITIES and PARTNERS' EQUITY September 30, 2000   December 31, 1999
  (Unaudited)    
       
Accounts Payable $145,942   $235,098        
Other Liabilities 1,133,577   769,853        
Notes Payable 29,304,639   29,572,116        
         
Total Liabilities $30,584,158   $30,577,067        
         
Partners' Equity:        
General Partner   258,420        
Unit Holders 16,255,941   16,690,170
         
Total Partners' Equity 16,528,994   16,948,590        
       
Total Liabilities And      
Partners' Equity $47,113,152   $47,525,657        
         
         
See Notes to Financial Statements          
3          

UNIPROP MANUFACTURED HOUSING COMMUNITIES INCOME FUND II,                                  
A MICHIGAN LIMITED PARTNERSHIP                                  
                                   
                           
                         
                         
STATEMENTS OF INCOME   NINE MONTHS ENDED     THREE MONTHS ENDED                        
    Sept. 30, 2000 Sept. 30, 1999   Sept. 30,2000 Sept. 30, 1999                      
    (unaudited) (unaudited)   (unaudited) (unaudited                      
                                   
Income:                                  
Rental Income   $9,205,143 $8,938,928   3,100,711 2,993,519                     --
Other   605,403 552,777   214,782 193,220                      
                           
Total Income   $9,810,546 $9,491,705   3,315,493/U> 3,186,739                      
                           
Operating Expenses:                          
Administrative Expenses                          
(Including $484,796, $472,050,$163,473, and $158,626 in Property Management                          
Fees Paid to an Affiliate for the Nine and Three Month Period Ending                                  
September 30, 2000 and 1999 Respectively)   2,429,726 2,544,445   795,995 982,422                      
Property Taxes   753,429 717,357   251,607 238,875                      
Utilities   719,748 706,738   242,730 267,011                      
Property Operations   1,629,465 1,495,180   660,523 388,666                      
Depreciation And Amortization   1,382,421 1,387,500   440,807 462,500                      
Interest   1,432,423 1,438,107   477,977 479,977                      
                               
Total Operating Expenses   $8,347,212 $8,289,327   $2,869,639 $2,819,451                      
                           
Net Income   $1,463,334 $1,202,378   $445,854 $367,288                      
                           
Income Per Unit:   0.44 0.36   0.13 0.11                      
                         
Distribution Per Unit:   0.57 0.54   0.19 0.18                      
                         
Weighted Average Number Of Units                                  
Of Beneficial Assignment Of Limited Partnership                          
Interest Outstanding During The Period Ending                          
September 30, 2000 and 1999   3,303,387 3,303,387   3,303,387 3,303,387                      
                               
                             
See Notes to Financial Statements                              
4                                
Statement of partners Equity(Unaudited)
 
 
    Genral Partner Unit Holders Total
 
Beginning Balnce Dec.31, 1999   258,420 16,690,170 16,948,590  
Net Income   14,633 1,448,701 1,463,334  
Distributions   0 (1,882,930) (1,882,930)  
 
Balnce, September 30, 2000   273,053 16,255,941 16,528,994  

UNIPROP MANUFACTURED HOUSING COMMUNITIES INCOME FUND II,                            
A MICHIGAN LIMITED PARTNERSHIP                            
                           
                           
                           
STATEMENTS OF CASH FLOWS                            
                           
  NINE MONTHS ENDED                              
  September 30,2000 September 30,1999                            
  (unaudited) (unaudited                            
Cash Flows From Operating Activities:                            
Net Income $1,463,334 $1,202,378                            
                           
Adjustments To Reconcile Net Income                            
To Net Cash Provided By                            
Operating Activities:                            
Depreciation 1,363,456 1,365,000                            
Amortization 18,965 22,500                            
(Increase) Decrease In Other Assets (248,189) (449,352)                            
Increase (Decrease) In Accounts Payables (89,156) 65,523                            
Increase (Decrease) Other Liabilities 363,724 325,639                            
                           
Total Adjustments 1,408,800 1,329,310                            
                           
Net Cash Provided By (Used In)                              
Operating Activities 2,872,134 2,531,688                            
                           
Cash Flows From Investing Activities:                            
Capital Expenditures (157,372) (398,707)                            
                             
Net Cash Provided By (Used In)                            
Investing Activities (187,372) (398,707)                            
                           
Cash Flows From Financing Activities:                            
Payment On Mortgage (267,477) (261,792)                            
Distributions To Partners (1,882,930) (1,783,835)                            
                           
Net Cash Provided By (Used In)                            
Financing Activities (2,150,407) (2,045,627)                            
                           
Increase (Decrease) In Cash and Equivalents 564,355 87,354                            
Cash and Equivalents, Beginning 2,821,681 2,482,314                            
                           
Cash and Equivalents, Ending $3,386,036 $2,569,668                            
                           
                           
See Notes to Financial Statements                            
5                            
                           

UNIPROP MANUFACTURED HOUSING COMMUNITIES INCOME FUND II,

A MICHIGAN LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

September 30, 2000 (Unaudited)

1. Basis of Presentation:

The accompanying unaudited 2000 financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The balance sheet at December 31, 1999 has been derived from the audited financial statements at that date. Operating results for the nine months ended September 30, 2000 are not necessarily indicative of the results that may be expected for the year ending December 31, 2000, or for any other interim period. For further information, refer to the financial statements and footnotes thereto included in the Partnership’s Form 10-K for the year ended December 31, 1999.

ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Capital Resources

The capital resources of Uniprop Manufactured Housing Communities Income Fund II (the “Partnership”) consist primarily of its nine manufactured home communities. On August 20, 1998 the Partnership refinanced seven of its nine properties with GMAC Commercial Mortgage (the “Refinancing”).

Liquidity

As a result of the Refinancing, seven of the Partnership’s nine properties are mortgaged. At the time of the Refinancing, the aggregate principal amounts due under the seven mortgage notes was $30,000,000 and the aggregate fair market value of the Partnership’s mortgaged properties was $66,000,000. The Partnership expects to meet its short-term liquidity needs generally through its working capital provided by operating activities.

Partnership liquidity is based, in part, upon its investment strategy. The properties owned by the Partnership were expected to be sold or financed within seven to ten years after their acquisition. All of the properties have been owned by the Partnership at least ten years and they were refinanced approximately 10 years after their acquisition. Genesis Associates Limited Partnership (the “General Partner”), may elect to have the Partnership own the properties for as long as, in the opinion of the General Partner, it is in the best interest of the Partnership to do so.

Distributable Cash from Operations totaled $886,661 for the quarter ended September 30, 2000. Distributable Cash from Operations is defined to mean net income computed in accordance with generally accepted accounting principles (“GAAP”), plus real estate related depreciation and amortization. Distributable Cash from Operations does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of cash available to fund cash needs. Distributable Cash from Operations should not be considered as an alternative to net income as the primary indicator of the Partnership’s operating performance or as an alternative to cash flow as a measure of liquidity. From Distributable Cash from Operations for the third quarter of 2000, the General Partner has decided to distribute $627,644 to the Unit Holders. The General Partner will continue to monitor on-going Distributable Cash from Operations generated by the Partnership during the coming quarters. If Distributable Cash from Operations generated is lower or higher than the amount needed to maintain the current distribution level, the General Partner may elect to reduce or increase the level of future distributions paid to Unit Holders.

While the Partnership is not required to maintain a working capital reserve, the Partnership has not distributed all the Distributable Cash from Operations in order to build cash reserves. As of September 30, 2000, the Partnership cash reserves amounted to $3,386,036. The level of cash reserves maintained is at the discretion of the General Partner.

Results of Operations

Overall, as illustrated in the following table, the Partnership's nine properties reported a combined occupancy of 93%, (3,051/3,330 sites), versus 94% (3,102/3,330) for September 1999. The average monthly homesite rent as of September 30, 2000 was approximately $361, versus $356, an increase of 1.4% from September 1999.

Ardmor Village 339 334 99% $342

Camelot Manor 335 320 96 339

Country Roads 312 276 89 241

Dutch Hills 278 275 99 338

El Adobe 369 332 90 419

Paradise Village 614 493 80 303

Stonegate Manor 308 294 96 346

Sunshine Village 356 323 91 446

West Valley 421 404 96 479

Total on 9/30/00 3,330 3,051 93% $361*

Total on 9/30/99: 3,330 3,102 94% $356*

*Average rent is not weighted average.

For three months ending September 30, 2000

Ardmor Village $ 344,646 $ 345,088 $ 190,138 $ 171,234

Country Roads 201,832 208,169 (73,128) 18,312

Dutch Hills 263,718 245,018 147,124 110,655

El Adobe 426,755 440,484 259,984 281,595

Paradise Village 427,745 361,163 63,163 32,845

Stonegate Manor 292,004 280,787 145,932 123,278

Sunshine Village   403,261 426,171 233,586 292,181

West Valley 600,729 5575,544 390,735 349,791
$3,274,449 $3,173,396 $ 1,547,083 $1,497,939

Partnership Management: 41,044 13,343 (12,564) (28,770)

Other Non Recurring expenses: ----- ---- (169,881) (159,404)

Interest Expense: (477,977) (479,977)

Depreciation and Amortization _______ ________ (440,807) (462,500)

Total $3,315,493 $3,186,739 $445,845 $367,288

Comparison of the Nine months Ended September 30, 2000 to the Nine months ended September 30, 1999.

Gross revenues increased $318,841, or 3.4%, to $9,810,546 in 2000, as compared to $9,491,705 in 1999.

As reported in the Statements of Income, total operating expenses increased $57,885, to $8,347,212 in 2000 compared to $8,289,327 in 1999. Total operating expenses increased as the result of cost related to upgrading the properties. Net income increased to $1,463,334 for the nine months ended September 30, 2000 from $1,202,378 for the nine months ended September 30, 1999 due to the increase in revenue.

Comparison of Quarter Ended September 30, 2000 to Quarter Ended September 30, 1999.

Gross revenues increased $128,754, or 4.0%, to $3,315,493 in 2000, as compared to $3,186,739 in 1999.

As reflected in the Statements of Income, total operating expenses increased $50,188, or 1.8%, to $2,869,639 in 2000 as compared to $2,819,451 in 1999. The increase in total operating expenses was primarily the result of cost related to upgrading the properties. Net income increased to $445,854 for the quarter ended September 30, 2000 from $367,288 for the quarter ended September 30, 1999 primarily due to the increase in revenue.

ITEM 3.

QUANTITATIVE AND QUALITATIVE

DISCLOSURES ABOUT MARKET RISK

The Partnership is exposed to interest rate rise primarily through its borrowing activities.

There is inherent roll over risk for borrowings as they mature and are renewed at

current market rates. The extent of this risk is not quantifiable or predictable because of the variability of future interest rates and the Partnership's future financing requirements.

Note Payable: At September 30, 2000 the Partnership had a note payable outstanding in the amount of $29,304,639. Interest on this note is at a fixed annual rate of 6.37% through March 2009.

The Partnership does not enter into financial instruments transactions for trading or other speculative purposes or to manage its interest rate exposure

ITEM 6. Exhibits and Reports on Form 8-K

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

Dated: November 15, 2000

EXHIBIT INDEX

Exhibit

No. Description Page

27 Financial Data Schedule