SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the Quarter Ended September 30, 2004 Commission File No. 0-16701


UNIPROP MANUFACTURED HOUSING COMMUNITIES INCOME FUND II,
a Michigan Limited Partnership

(Exact name of registrant as specified in its charter)

MICHIGAN
38-2702802
(State or other jurisdiction of (I.R.S. employer
incorporation or organization)identification number)

280 Daines Street, Birmingham, Michigan 48009
(Address of principal executive offices) (Zip Code)

(248) 645-9261
(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(g) of the Act: units of limited partnership interest


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 preceding 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.

Yes [X]     No [ ]


UNIPROP MANUFACTURED HOUSING COMMUNITIES INCOME FUND II,
A MICHIGAN LIMITED PARTNERSHIP

INDEX

Page
ITEM 1. FINANCIAL STATEMENTS
Balance Sheets
September 30, 2004(Unaudited) and
December 31, 2003 3
Statements of Income
Nine months ended September 30, 2004 and 2003
Three months ended September 30, 2004
and 2003(Unaudited) 4
Statement of Partners' Equity
Nine months ended September 30, 2004(Unaudited) 4
Statements of Cash Flows
Nine months ended September 30, 2004(Unaudited)
Notes to Financial Statements
September 30, 2004(Unaudited) 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS 7
ITEM 3. QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK 10
ITEM 4.CONTROLS AND PROCEDURES 10

PART II      OTHER INFORMATION                                        
ITEM 6. EXHIBITS            11

UNIPROP MANUFACTURED HOUSING COMMUNITIES INCOME FUND II,
A MICHIGAN LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

September 30, 2004(Unaudited)

1. Basis of Presentation:

The accompanying unaudited 2004 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, 2003 has been derived from the audited financial statements at that date. Operating results for the nine months ended September 30, 2004 are not necessarily indicative of the results that may be expected for the year ending December 31, 2004, or for any other interim period. For further information, refer to the consolidated financial statements and footnotes thereto included in the Partnership's Form 10-K for the year ended December 31, 2003.

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

Capital Resources

The Partnership's capital resources consist primarily of its nine manufactured home communities. On August 20, 1998, the Partnership refinanced seven of its nine properties with GMAC Commercial Mortgage Corporation (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 amount 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. Upon acquisition, the Partnership anticipated owning the properties for seven to ten years. All of the properties have been owned by the Partnership for more than ten years. 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.

The General Partner has decided to distribute $759,779, or $.23 per unit, to the unit holders during the quarter ending September 30, 2004. The General Partner will continue to monitor cash flow generated by the Partnership's nine properties during the coming quarters. If cash flow generated is greater or lesser 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.

As of September 30, 2004, the Partnership's cash reserves amounted to $2,455,429.

Results of Operations

Overall, as illustrated in the following table, the Partnership's nine properties reported combined occupancy of 70% at the end of September 2004, versus 82% for September 2003. The average monthly homesite rent as of September 30, 2004 was approximately $401, versus $382 for the quarter ending September 2003.

Total
Capacity
Occupied
Sites
Occupancy
Rate
Average
Rent*
Ardmor Village 339 279 82% 409
Camelot Manor 335 226 67% 367
Country Roads 311 196 63% 278
Dutch Hills 278 226 81% 384
El Adobe 367 242 66% 437
Paradise Village 614 327 53% 340
Stonegate Manor 308 213 69% 383
Sunshine Village 356 317 89% 512
West Valley 421 317 75% 499
Total on 6/30/04:3,3292,34370% $401
Total on 9/30/03:3,3292,73582% $382
*Not a weighted average

For the three and nine months ending September 30,2004 and September 30,2003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Revenue

 

     Net Income

 

Gross Revenue

 

         Net Income

 

9/30/2004

9/30/2003

 

9/30/2004

9/30/2003

 

9/30/2004

 

9/30/2003

 

9/30/2004

 

9/30/2003

 

three months ended

 

three months ended

 

   nine months ended

 

    nine months ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ardmor

$473,380

$489,779

 

$208,208

$206,728

 

$1,253,917

 

$1,623,130

 

$626,110

 

$593,028

Camelot Manor

254,250

329,917

 

117,616

112,297

 

865,388

 

991,940

 

412,979

 

429,140

Country Roads

179,297

214,006

 

71,496

85,130

 

586,229

 

658,030

 

185,887

 

247,901

Dutch Hills

259,514

318,059

 

130,969

148,999

 

834,414

 

900,896

 

400,309

 

456,397

El Adobe

352,915

401,153

 

148,324

193,537

 

1,083,370

 

1,127,293

 

564,462

 

577,751

Paradise

487,858

439,015

 

123,158

81,409

 

1,265,349

 

1,284,633

 

344,791

 

285,113

Stonegate

287,595

300,631

 

    149,814

103,608

 

880,871

 

868,382

 

     362,522

 

     353,289

Sunshine

508,717

605,727

 

267326

272,019

 

1,480,181

 

1,513,924

 

804,100

 

821,440

West Valley

487,820

573,533

 

270,416

327,846

 

1,485,869

 

1,701,114

 

857,384

 

1,000,584

 

3,291,346

3,671,820

 

 1,487,327

1,531,573

 

9,735,588

 

10,669,342

 

4,558,544

 

4,764,643

Partnership Management

1,973

3,034

 

(69,820)

(70,652)

 

4,950

 

12,299

 

(301,125)

 

(244,378)

Other Expense

            -----

         -------

 

(152,964)

(102,728)

 

       -------

 

      ------

 

(328,362)

 

(220,289)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

           -----

         -------

 

(447,933)

(455,549)

 

        -------

 

       -------

 

(1,341,418)

 

(1,358,840)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization

        -----

       -------

 

(457,455)

(445,964)

 

       -------

 

         -------

 

(1,366,935)

 

(1,330,375)

 

$3,293,319

$3,674,854

 

 $359,155

$456,680

 

$9,740,538

 

$10,681,641

 

$1,220,704

 

$1,610,761

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comparison of Nine Months and Quarter Ended September 30, 2004 to Nine Months and Quarter Ended September 30, 2003

Gross revenues for the first nine months of 2004 decreased to $9,740,538 as compared to $10,681,641 for the same nine months of 2003. Gross revenues for the quarter ended September 30, 2004 decreased to $3,293,319, as compared to $3,674,854 the same three months of 2003. The decrease was the result of the decrease in occupancy and lower home sale income.

As described in the Statements of Income, Total Operating Expenses for the first nine months of 2004 decreased to $8,519,834 compared to $9,070,880 for the same nine months of 2003. Total Operating Expenses for the three months ended September 30, 2004 decreased $284,010, to $2,934,164 compared to $3,218,174 in 2003, due to a decrease in home purchases.

As a result of the aforementioned factors, Net Income for the nine month period of 2004 decreased to $1,220,704, compared to $1,610,761 for the same nine months in 2003. Net Income for the three months ended September 30, 2004 decreased to $359,155 compared to $456,680 for the same three months of 2003.

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, 2004 the Partnership had a note payable outstanding in the amount of $27,465,360. 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 4. Controls and Procedures

       As of the end of the period covered by this report, the Partnership carried out an evaluation, under the supervision and with the participation of the Principal Executive Officer and the Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Exchange Act Rule 13a-15. Based upon, and as of the date of, this evaluation, the Principal Executive Officer and the Principal Financial Officer concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed in the quarterly report is recorded, processed, summarized and reported as and when required.

       There was no change in the Partnership's internal controls over financial reporting that occurred during the most recently completed quarter that has materially affected, or is reasonably likely to materially affect the Partnership's internal control over financial reporting.

ITEM 6. Exhibits

Exhibit 31.1 Principal Executive Officer Certification pursuant to Rule 13a-14(a)/15d-14(a) of The Securities and Exchange Act of 1934, as amended

Exhibit 31.2 Principal Financial Officer Certification pursuant to Rule 13a-14(a)/15d-14(a) of The Securities and Exchange Act of 1934, as amended

Exhibit 32.1 Certifications pursuant to 18 U.S C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes -Oxley Act of 2002.

SIGNATURES

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

Uniprop Manufactured Housing Communities Income Fund II, A Michigan Limited Partnership BY: Genesis Associates Limited Partnership, General Partner BY: Uniprop, Inc., its Managing General Partner BY: /s/ Paul M. Zlotoff
Paul M. Zlotoff, General Partner BY: /s/ Joel Schwartz Joel Schwartz, Principal Financial Officer

Dated: November 11, 2004

Exhibit 31.1
CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Paul M Zlotoff, certify that: 1. I have reviewed this quarterly report on Form 10-Q of Uniprop Manufactured Housing Income Fund II; 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by the quarterly report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of the end of the period covered by this report (the "Evaluation Date"); and c) presented in this quarterly report our conclusions about the effectiveness of the of the disclosure controls and procedures based on our evaluation as the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; 6. The Registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: November 11, 2004 Signature: /s/ Paul M. Zlotoff Paul M. Zlotoff, Principal Executive Officer President & Director of GP Genesis Corp.

Exhibit 31.2
CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Joel Schwartz, certify that: 1. I have reviewed this quarterly report on Form 10-Q of Uniprop Manufactured Housing Income Fund II. 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by the quarterly report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have; a. designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; b. evaluated the effectiveness of the registrant's disclosure controls and procedures as of the end of the period covered by this report (the "Evaluation Date"); and c. presented in this quarterly report our conclusions about the effectiveness of the of the disclosure controls and procedures based on our evaluation as the Evaluation Date. 5. The registrant's other certifying officers and I have evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): a. all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors and material weaknesses in internal controls; and b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The Registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: November 11,2004 Signature: /s/ /s/ Joel Schwartz, Joel Schwartz, Principal Financial Officer GP Genesis Corp.

Exhibit 32.1
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF
THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Uniprop Manufactured Housing Communities Income Fund II (the "Company") on Form 10-Q for the period ending September 30, 2004 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I Paul M Zlotoff, Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that: 1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Act of 1934; and 2. The information contained in the Report fairly presents, in all material respect, the financial condition and results of operations of the Company. /s/ Paul M Zlotoff, General Partner /s/ Joel Schwartz, Principal Financial Officer