UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-K

(Mark One)

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, ~~2008~~2009

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________to _________

Commission file number 0-16877

FOX STRATEGIC HOUSING INCOME PARTNERS

(Exact name of registrant as specified in its charter)

California	94-3016373
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

55 Beattie Place, PO Box 1089

Greenville, South Carolina 29602

(Address of principal executive offices)

Registrant's telephone number, including (864) 239-1000

Securities registered under Section 12(b) of the Act:

None

Securities registered under Section 12(g) of the Act:

Limited Partnership Units

(Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [ ] No [X]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes [ ] No [X]

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 [ ]

Indicate by check mark if ~~disclosure~~whether ofthe ~~delinquent~~registrant ~~filers~~has ~~pursuant~~submitted toelectronically ~~Item~~and ~~405~~posted ofon ~~Regulation~~its ~~S-K~~corporate Web issite, ~~not contained~~if ~~herein~~any, ~~and~~every ~~will~~Interactive ~~not~~Data File required to be ~~contained,~~submitted and posted pursuant to ~~the~~Rule ~~best~~405 of ~~registrant’s knowledge,~~Regulation inS-T ~~definitive~~(232.405 ~~proxy~~of orthis ~~information~~chapter) ~~statements~~during the ~~incorporated~~preceding ~~by reference~~12 inmonths ~~Part~~(or ~~III~~for ofsuch ~~this~~shorter ~~Form~~period ~~10-K~~that orthe ~~any~~registrant ~~amendment~~was required to ~~this~~submit ~~Form~~and ~~10-K~~post such files). [X ] Yes [ ] No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [X]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer £	Accelerated filer £
Non-accelerated filer £(Do not check if a smaller reporting company)	Smaller reporting company T

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes [ ] No [X]

State the aggregate market value of the voting and non-voting partnership interests held by non-affiliates computed by reference to the price at which the partnership interests were last sold, or the average bid and asked ~~prices~~price of such partnership interests as of ~~the~~ the last business day of the registrant’s most recently completed second fiscal quarter. No market exists for the limited partnership interests of the Registrant, and, therefore, no aggregate market value can be determined.

DOCUMENTS INCORPORATED BY REFERENCE

None

FORWARD-LOOKING STATEMENTS

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements in certain circumstances. Certain information included in this Annual Report contains or may contain information that is forward-looking within the meaning of the federal securities laws, including, without limitation, statements regarding the effect of redevelopments, the Partnership’s future financial performance, including the Partnership’s ability to maintain current or meet projected occupancy and rent levels, and the effect of government regulations. Actual results may differ materially from those described in these forward-looking statements and, in addition, will be affected by a variety of risks and factors some of which are beyond the Partnership’s control including, without limitation: financing risks, including the availability and cost of financing and the risk that the Partnership’s cash flows from operations may be insufficient to meet required payments of principal and interest; natural disasters and severe weather such as hurricanes; national and local economic conditions; the general level of interest rates; energy costs; the terms of governmental regulations that affect the Partnership’s property and interpretations of those regulations; the competitive environment in which the Partnership operates; real estate risks, including fluctuations in real estate values and the general economic climate in local markets and competition for ~~tenants~~residents in such markets; insurance risk, including the cost of insurance; development risks; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; and possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by the Partnership. Readers should carefully review the Partnership’s financial statements and the notes thereto, as well as the ~~section entitled “Risk Factors” described in Item 1A of this Annual Report and the~~ other documents the Partnership files from time to time with the Securities and Exchange Commission.

PART I

Item 1. Business

Fox Strategic Housing Income Partners (the "Partnership" or "Registrant") is a publicly-held limited partnership organized in June 1984, under the Uniform Limited Partnership Act of the California Corporations Code. Fox Partners VIII, a California general partnership, is the general partner (the “General Partner”) of the Partnership. Fox Capital Management Corporation ("FCMC" or the "Managing General Partner"), a California corporation, and Fox Realty Investors ("FRI"), a California general partnership, are the general partners of Fox Partners VIII. The Managing General Partner and the managing general partner of FRI are affiliates of Apartment Investment and Management Company ("AIMCO"), a publicly traded real estate investment trust. The Partnership Agreement provides that the Partnership is to terminate on December 31, 2025 unless terminated earlier in accordance with the terms of the Partnership Agreement.

The Partnership, through its public offering of Limited Partnership Units, sold 26,111 units aggregating $26,111,000. From April 1987 through February 1989, the Partnership acquired one mobile home park and two apartment complexes. The Partnership continues to hold and operate one apartment complex (see "Item 2. Property"). Since its initial offering, the Partnership has not received, nor are limited partners required to make, additional capital contributions.

The Partnership has no employees. The Managing General Partner is vested with full authority as to the general management and supervision of the business and affairs of the Partnership. Limited partners have no right to participate in the management or conduct of such business and affairs. An affiliate of the Managing General Partner provides day-to-day property management services at the Partnership’s investment property.

A further description of the Partnership's business is included in "Item 1A7. ~~Risk~~Management's ~~Factors~~Discussion and Analysis of Financial Condition and Results of Operations" included in this Form 10-K.

The risk factors noted in this section and other factors noted throughout this Annual Report describe certain risks and uncertainties that could cause the Partnership’s actual results to differ materially from those contained in any forward-looking statement.

The Partnership’s existing and future debt financing could render it unable to operate, result in foreclosure on its property, prevent it from making distributions on its equity or otherwise adversely affect its liquidity.

The Partnership is subject to the risk that its cash flow from operations will be insufficient to make required payments of principal and interest, and the risk that existing indebtedness may not be refinanced or that the terms of any refinancing will not be as favorable as the terms of existing indebtedness. If the Partnership fails to make required payments of principal and interest on secured debt, its lender could foreclose on the property securing such debt, which would result in loss of income and asset value to the Partnership. Payments of principal and interest may leave the Partnership with insufficient cash resources to operate its property or pay distributions.

Disruptions in the financial markets could affect the Partnership’s ability to obtain financing and the cost of available financing and could adversely affect the Partnership’s liquidity.

The Partnership’s ability to obtain financing and the cost of such financing depends on the overall condition of the United States credit markets and the level of involvement of certain government sponsored entities, specifically, Federal Home Loan Mortgage Corporation, or Freddie Mac, and Federal National Mortgage Association, or Fannie Mae, in secondary credit markets. Recently the United States credit markets have experienced significant liquidity disruptions, which have caused the spreads on debt financings to widen considerably and have made obtaining financing more difficult. Further or prolonged disruptions in the credit markets could result in Freddie Mac or Fannie Mae reducing their level of involvement in secondary credit markets which would adversely affect the Partnership’s ability to obtain non-recourse property debt financing.

Failure to generate sufficient net operating income may limit the Partnership’s ability to fund necessary capital expenditures or the Partnership’s ability to repay advances from affiliates.

The Partnership’s ability to fund necessary capital expenditures on its property depends on its ability to generate net operating income in excess of required debt payments. If the Partnership is unable to fund capital expenditures on its property, the Partnership may not be able to preserve the competitiveness of its property, which could adversely affect the Partnership’s net operating income.

The Partnership’s ability to repay advances from affiliates depends on its ability to generate net operating income in excess of required debt payments and capital expenditure requirements. Net operating income and liquidity may be adversely affected by events or conditions beyond the Partnership’s control, including:

the general economic climate;

competition from other apartment communities and other housing options;

local conditions, such as loss of jobs or an increase in the supply of apartments, that might adversely affect apartment occupancy or rental rates;

changes in governmental regulations and the related cost of compliance;

increases in operating costs (including real estate taxes) due to inflation and other factors, which may not be offset by increased rents;

changes in tax laws and housing laws, including the enactment of rent control laws or other laws regulating multifamily housing; and

changes in interest rates and the availability of financing.

Redevelopment and construction risks could affect the Partnership’s profitability.

The Partnership’s property is currently under redevelopment. These activities are subject to the following risks:

the Partnership may be unable to obtain, or experience delays in obtaining, necessary zoning, occupancy, or other required governmental or third party permits and authorizations, which could result in increased costs or the delay or abandonment of opportunities;

the Partnership may incur costs that exceed its original estimates due to increased material, labor or other costs;

the Partnership may be unable to complete construction and lease up of the property on schedule, resulting in increased construction and financing costs and a decrease in expected rental revenues;

occupancy rates and rents at the property may fail to meet the Partnership’s expectations for a number of reasons, including changes in market and economic conditions beyond the Partnership’s control and the development by competitors of competing communities;

the Partnership may abandon opportunities that it has already begun to explore for a number of reasons, including changes in local market conditions or increases in construction or financing costs, and, as a result, it may fail to recover expenses already incurred in exploring those opportunities; and

the Partnership may incur liabilities to third parties during the redevelopment process, for example, in connection with resident lease terminations, or managing existing improvements on the site prior to resident lease terminations.

Competition could limit the Partnership’s ability to lease apartments or increase or maintain rents.

The Partnership’s apartment property competes for residents with other housing alternatives, including other rental apartments, condominiums and single-family homes that are available for rent, as well as new and existing condominiums and single-family homes for sale. Competitive residential housing in a particular area could adversely affect the Partnership’s ability to lease apartments and to increase or maintain rental rates. The current challenges in the credit and housing markets have increased housing inventory that competes with the Partnership’s property.

Laws benefiting disabled persons may result in the Partnership’s incurrence of unanticipated expenses.

Under the Americans with Disabilities Act of 1990, or ADA, all places intended to be used by the public are required to meet certain Federal requirements related to access and use by disabled persons. Likewise, the Fair Housing Amendments Act of 1988, or FHAA, requires apartment properties first occupied after March 13, 1990, to be accessible to the handicapped. These and other Federal, state and local laws may require modifications to the Partnership’s property, or affect renovations of the property. Noncompliance with these laws could result in the imposition of fines or an award of damages to private litigants and also could result in an order to correct any non-complying feature, which could result in substantial capital expenditures. Although the Partnership believes that its property is substantially in compliance with present requirements, the Partnership may incur unanticipated expenses to comply with the ADA and the FHAA in connection with the ongoing operation of its property.

Potential liability or other expenditures associated with potential environmental contamination may be costly.

Various Federal, state and local laws subject property owners or operators to liability for management, and the costs of removal or remediation, of certain hazardous substances present on a property, including lead-based paint. Such laws often impose liability without regard to whether the owner or operator knew of, or was responsible for, the release or presence of the hazardous substances. The presence of, or the failure to manage or remedy properly, hazardous substances may adversely affect occupancy at affected apartment communities and the ability to sell or finance affected properties. In addition to the costs associated with investigation and remediation actions brought by government agencies, and potential fines or penalties imposed by such agencies in connection therewith, the presence of hazardous substances on a property could result in claims by private plaintiffs for personal injury, disease, disability or other infirmities. Various laws also impose liability for the cost of removal, remediation or disposal of hazardous substances through a licensed disposal or treatment facility. Anyone who arranges for the disposal or treatment of hazardous substances is potentially liable under such laws. These laws often impose liability whether or not the person arranging for the disposal ever owned or operated the disposal facility. In connection with the ownership, operation and management of its property, the Partnership could potentially be liable for environmental liabilities or costs associated with its property.

Moisture infiltration and resulting mold remediation may be costly.

The Partnership is aware of lawsuits against owners and managers of multifamily properties asserting claims of personal injury and property damage caused by the presence of mold, some of which have resulted in substantial monetary judgments or settlements. The Partnership has only limited insurance coverage for property damage loss claims arising from the presence of mold and for personal injury claims related to mold exposure. Affiliates of the Managing General Partner have implemented policies, procedures, third-party audits and training and the Managing General Partner believes that these measures will prevent or eliminate mold exposure and will minimize the effects that mold may have on residents. To date, the Partnership has not incurred any material costs or liabilities relating to claims of mold exposure or to abate mold conditions. Because the law regarding mold is unsettled and subject to change the Managing General Partner can make no assurance that liabilities resulting from the presence of or exposure to mold will not have a material adverse effect on the Partnership’s financial condition or results of operations.

A further description of the Partnership's business is included in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" included in this Form 10-K.

Item 2. Property

The following table sets forth the Partnership's investment in property:

	Date of
Property	Purchase	Type of Ownership	Use

The Views at Vinings Mountain
Apartments	9/87	Fee ownership, subject	Apartment
Atlanta, Georgia		to a first mortgage	180 units

Schedule of Property

Set forth below for the Partnership's property is the gross carrying value, accumulated depreciation, depreciable life, method of depreciation and Federal tax basis.

	Gross
	Carrying	Accumulated	Depreciable	Method of	Federal
Property	Value	Depreciation	Life	Depreciation	Tax Basis
	(in thousands)				(in thousands)
The Views at Vinings
Mountain Apartments	$22,~~603~~877	$ 810,~~034~~120	5-30 yrs	S/L	$1310,~~286~~877

See "Note A – Organization and Summary of Significant Accounting Policies" to the financial statements included in "Item 8. Financial Statements and Supplementary Data" for a description of the Partnership's capitalization and depreciation policies.

Schedule of Property Indebtedness

The following table sets forth certain information relating to the loan encumbering the Partnership's property.

	Principal				Principal
	Balance At	Stated			Balance
	December 31,	Interest	Period	Maturity	Due At
Property	~~2008~~2009	Rate (1)	Amortized	Date	Maturity (32)
	(in thousands)				(in thousands)
The Views at Vinings
Mountain Apartments	$13,~~800~~771	5.77%	~~(2)~~30 years	9/11/2013	$13,045

(1) Fixed rate mortgage.

(2) ~~Interest~~See “Note B – Mortgage Note ~~only~~Payable” ~~payments~~to ~~through~~the ~~October~~financial ~~2009~~statements included in "Item 8. Financial Statements and Supplementary Data" for information with respect to the Partnership's ability to prepay this loan and other specific details about the loan.

~~(3) See~~On ~~“Note~~September B11, –2008, ~~Mortgage Note~~the ~~Payable”~~Partnership torefinanced the ~~financial~~mortgage ~~statements~~encumbering ~~included~~The inViews ~~"Item~~at 8Vinings Mountain Apartments. ~~Financial~~The ~~Statements~~refinancing replaced the existing mortgage, which at the time of ~~and~~refinancing ~~Supplementary~~had ~~Data"~~a ~~for~~principal ~~information~~balance of approximately $4,754,000, with ~~respect~~a tonew mortgage loan in the ~~Partnership's~~principal amount of $13,800,000. The new mortgage loan bears interest at 5.77% per annum and ~~ability~~requires tomonthly ~~prepay~~payments ~~this~~of interest only of approximately $66,000 beginning on November 1, 2008 through October 1, 2009. Beginning on November 1, 2009, the new mortgage loan requires monthly payments of principal and ~~other~~interest ~~specific~~of approximately ~~details~~$81,000, ~~about~~through the September 11, 2013 maturity date. The new mortgage loan has a balloon payment of approximately $13,045,000 due at maturity. On September 11, 2010, if the Partnership does not meet a prescribed debt service coverage ratio, the Partnership will be required to make an additional payment of principal to reduce the outstanding principal balance to the prescribed debt service coverage ratio.

Schedule of Rental Rates and Occupancy

Average annual rental rates and occupancy for ~~2008~~2009 and ~~2007~~2008 for the property were as follows:

	Average Annual		Average Annual
	Rental Rate		Occupancy
	(per unit)
Property	~~2008~~2009	~~2007~~2008	~~2008~~2009	~~2007~~2008
The Views at Vinings Mountain Apartments	$11,~~026~~552	$ 811,~~969~~026	7391%	8573%

The Managing General Partner attributes the ~~decrease~~increase in occupancy at The Views at Vinings Mountain Apartments to ~~the~~units ~~ongoing~~available ~~redevelopment~~for ~~project~~rent atwhich ~~the~~had ~~property~~previously (been unavailable for lease as ~~discussed~~a result ~~below)~~of the redevelopment project, ~~during~~ which ~~time~~was ~~some~~completed ~~units~~in ~~have~~June ~~been~~2009, ~~unavailable~~at ~~for lease~~the property.

AsThe ~~noted under "Item 1. Business", the~~ real estate industry is highly competitive. The Partnership’s property is subject to competition from other residential apartment complexes in the area. The Managing General Partner believes that the property is adequately insured. The property is an apartment complex which leases units for lease terms of one year or less. No tenant leases 10% or more of the available rental space. The property is in good physical condition, subject to normal depreciation and deterioration as is typical for assets of this type and age.

Real Estate Taxes and Rate

Real estate taxes and rate in ~~2008~~2009 for the Partnership’s property were as follows:

	2008	2008
	2009	2009
	Billing	Rate
	(in thousands)
The Views at Vinings Mountain Apartments	$ ~~143~~145	2.8788%

Capital Improvements

During the year ended December 31, ~~2008~~2009, the Partnership completed approximately $674,~~332,~~000 of capital improvements at The Views at Vinings Mountain Apartments primarily arising from the redevelopment of the property, which includes capitalization of construction period interest of approximately $~~112~~1,000,. ~~construction~~Additional ~~period~~capital ~~real~~improvements ~~estate taxes~~ of approximately $16200,000 ~~and~~were ~~other~~completed ~~construction~~during ~~period~~the ~~operating~~year ~~costs~~ended ~~of approximately~~December $631,~~000~~ 2009, which consisted primarily of appliance and floor covering replacements. These improvements were funded from operating cash flow and advances from AIMCO Properties, L.P., an affiliate of the Managing ~~General~~ General Partner. In November 2006, the Partnership began a major redevelopment project at the property in order for it to remain competitive with other properties in the Atlanta area. ~~Based~~The ~~on current~~ redevelopment ~~plans,~~was ~~the~~completed ~~Managing General Partner expects the redevelopment to be complete~~ in ~~March~~ June 2009 at a total cost of approximately $11,~~442~~222,000., ~~The~~of ~~redevelopment~~which isapproximately $11,148,000 ~~expected~~was completed prior to ~~consist~~2009. The redevelopment consisted of the addition of a controlled access entrance gate, an amenity building, clubhouse renovations, swimming pool upgrades, roof replacement, HVAC upgrades, major landscaping, lighting upgrades, exterior and interior building improvements, sidewalk and parking area upgrades, signage, and kitchen, bathroom, and appliance upgrades to each unit. ~~As of December 31, 2008, the Partnership has completed approximately $11,148,000 for property redevelopment, of which approximately $4,816,000 was completed during 2007 and 2006.~~ The Partnership ~~expects~~funded ~~to fund~~ the redevelopment from operating cash flow and advances from AIMCO Properties, L.P. While ~~Certain~~the ~~other~~Partnership has no material commitments for property improvements and replacements, certain routine capital expenditures are anticipated during ~~2009~~2010. Such capital expenditures will depend on the physical condition of the property as well as anticipated cash flow generated by the property.

Capital expenditures will be incurred only if cash is available from operations, Partnership reserves or advances from AIMCO Properties, L.P., although AIMCO Properties, L.P. is not obligated to fund such advances. ~~Due~~To to the extent ofthat ~~the~~capital ~~redevelopment~~improvements ~~project~~are ~~at the property~~completed, ~~it is~~the ~~not~~Partnership’s ~~expected~~distributable ~~that~~cash ~~the~~flow, ~~Partnership~~if ~~will have~~ any, ~~distributable~~may ~~cash~~be ~~flow~~adversely ~~during~~affected at least in the ~~redevelopment~~short ~~period~~term.

Item 3. Legal Proceedings

As previously disclosed, AIMCO Properties, L.P. and NHP Management Company, both affiliates of the Managing General Partner, were defendants in a lawsuit, filed as a collective action in August 2003 in the United States District Court for the District of Columbia, alleging that they willfully violated the Fair Labor Standards Act (“FLSA”) by failing to pay maintenance workers overtime for time worked in excess of 40 hours per week (“overtime claims”). The plaintiffs ~~also~~ also contended that AIMCO Properties, L.P. and NHP Management Company (“the Defendants”) failed to compensate maintenance workers for time that they were required to be "on-call" (“on-call claims”). In March 2007, the court in the District of Columbia decertified the collective action. In July 2007, plaintiffs’ counsel filed individual cases in Federal court in 22 jurisdictions. In the second quarter of 2008, AIMCO Properties, L.P. settled the overtime cases involving 652 plaintiffs and established a framework for resolving the 88 remaining “on-call” claims and the attorneys’ fees claimed by plaintiffs’ counsel. As a result, the lawsuits asserted in the 22 Federal courts ~~will~~have been be dismissed. During the fourth quarter of 2008, the settlement amounts for alleged unpaid overtime to employees were paid by those partnerships where ~~the~~ the respective employees had worked. The Partnership was not required to ~~pay~~ pay any settlement amounts. At this time, the 88 remaining “on-call” ~~claims~~ claims and the attorneys’ fees claimed by plaintiffs’ counsel are not resolved. The parties have selected six “on-call” claims that will proceed forward through the arbitration process and have selected arbitrators. After those arbitrations have been completed, the parties will revisit settling the on-call claims. The first two arbitrations took place in December 2009 and the Defendants received a defense verdict against the first two claimants, and plaintiffs dismissed the claims of the next two claimants. The remaining two arbitrations will take place in April 2010. The Managing General Partner is uncertain as to the amount of of any ~~additional~~ loss that may be allocable to the Partnership. Therefore, the Partnership cannot estimate whether any ~~additional~~ loss will occur or a potential range of loss.

ItemPART 4. Submission of Matters to a Vote of Security HoldersII

During the quarter ended December 31, 2008, no matter was submitted to the vote of unit holders through the solicitation of proxies or otherwise.

PART II

The Partnership offered and sold 26,111 Limited Partnership Units (the “Units”) aggregating $26,111,000. As of December 31, ~~2008~~2009, there were ~~693~~686 holders of record owning an aggregate of 26,111 Units. Affiliates of the Managing General Partner owned 13,719 Units or 52.54% as of December 31, ~~2008~~2009. No public trading market has developed for the Units, and it is not anticipated that such a market will develop in the future.

There were no distributions to the partners during the years ended December 31, ~~2008~~2009 and ~~2007~~2008. Future cash distributions will depend on the levels of cash generated from operations, and the timing of the debt maturity, refinancing and/or property sale. The Partnership's cash available for distribution is reviewed on a monthly basis. In light of the amounts accrued and payable to affiliates of the Managing General Partner at December 31, ~~2008 and the property redevelopment~~2009, there can be no assurance that the Partnership will generate sufficient funds from operations after required capital expenditures to permit any distributions to its partners during ~~2009~~2010 or subsequent periods. See “Item 2. Property – Capital Improvements” ~~for~~ for information relating to anticipated capital expenditures at the property.

In addition to its indirect ownership of the general partner interests in the Partnership, AIMCO and its affiliates owned 13,719 Units in the ~~Partnership~~ Partnership representing 52.54% of the outstanding Units at December 31, ~~2008~~ 2009. A number of these Units were acquired pursuant to tender offers made by AIMCO or its affiliates. It is possible that AIMCO or its affiliates will ~~acquire~~ acquire additional Units in the Partnership in exchange for cash or a combination of cash and units in AIMCO Properties, L.P., the operating partnership of AIMCO, either through private purchases or tender offers. Pursuant to the Partnership Agreement, unitholders holding a majority of the Units are entitled to take action with respect to a variety of matters that include, but are not limited to, voting on certain amendments to the Partnership Agreement and voting to remove the General Partner. As a result of its ownership of 52.54% of the outstanding Units, AIMCO and its affiliates are in a position to control all voting decisions with respect to the Partnership. Although the General Partner owes fiduciary duties to the limited partners of the Partnership, the Managing General Partner also owes fiduciary duties to both the General Partner and AIMCO as the sole stockholder of the Managing General Partner.

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

This item should be read in conjunction with the financial statements and other items contained elsewhere in this report.

The Partnership’s financial results depend upon a number of factors including the ability to attract and maintain tenants at the investment property, interest rates on mortgage loans, costs incurred to operate the investment property, general economic conditions and weather. As part of the ongoing business plan of the Partnership, the Managing General Partner monitors the rental market environment of its investment property to assess the feasibility of increasing rents, maintaining or increasing occupancy levels and protecting the Partnership from increases in expenses. As part of this plan, the Managing General Partner attempts to protect the Partnership from the burden of inflation-related increases in expenses by increasing rents and maintaining a high overall occupancy level. However, the Managing General Partner may use rental concessions and rental rate reductions to offset softening market conditions; accordingly, there is no guarantee that the Managing General Partner will be able to sustain such a plan. Further, a number of factors that are outside the control of the Partnership, such as the local economic climate and weather, can adversely or positively affect the Partnership’s financial results.

Results of Operations

The Partnership recognized net losses of approximately $12,~~931~~148,000 and $~~578~~1,931,000 for the years ended December 31, ~~2008~~ 2009 and ~~2007~~2008, respectively. The increase in net loss is due to an increase in total expenses, partially offset by an increase in total revenues. Total expenses increased due to increases in ~~operating~~depreciation and interest expenses, ~~depreciation~~partially offset by decreases in operating, ~~interest~~general and administrative and property tax expenses. ~~General~~ ~~and administrative~~Depreciation expense ~~remained~~increased ~~relatively~~primarily ~~constant~~due ~~for~~to ~~the comparable~~assets ~~periods. The~~placed ~~increase~~into inservice ~~operating~~during ~~expenses~~the ispast ~~primarily~~twelve ~~due~~months toas ~~an increase~~a inresult ~~advertising~~of ~~expenses~~the atcompletion of the ~~Partnership’s~~redevelopment ~~investment~~at the property. ~~Depreciation~~ Interest expense increased primarily due to ~~property~~a ~~improvements~~higher ~~and~~debt ~~replacements placed~~balance ~~into~~as ~~service~~a atresult of the ~~property~~September ~~during~~2008 refinancing of the ~~past~~mortgage ~~twelve~~encumbering ~~months.~~ the property and a decrease in interest capitalized as ~~Interest~~a ~~expense~~result ~~increased~~of ~~due~~the tocompletion anof ~~increase~~the redevelopment project at the property, partially offset by a decrease in interest on advances ~~received~~ from an affiliate of the Managing General Partner as a result of a ~~higher~~ lower average outstanding balance,. The adecrease ~~higher~~in ~~debt~~operating ~~balance~~expenses onis ~~the~~primarily ~~mortgage~~due ~~encumbering the~~to ~~property as~~ a ~~result~~decrease in ofadvertising ~~the~~expense, ~~September~~partially ~~2008~~offset ~~refinancing~~by ofincreases ~~the~~in ~~mortgage~~property management ~~encumbering~~fees ~~the~~as ~~property~~a ~~and~~result aof ~~decrease~~an increase in ~~interest~~rental ~~capitalized~~income asupon awhich ~~result~~the offee is based, ~~the~~and ~~redevelopment~~maintenance ~~project~~supplies at the Partnership’s investment property. The ~~increase~~ decrease in property tax expense is ~~primarily~~ due to the ~~resolution~~payment of ~~the~~taxes ~~property’s~~in ~~2006~~2008 ~~assessed~~relating ~~value~~to ~~during~~a ~~2008,~~prior ~~which~~year ~~resulted~~ in conjunction with the ~~payment~~September of2008 ~~additional~~refinancing ~~amounts~~of ~~during~~the mortgage ~~2008~~encumbering the property.

~~Included~~The decrease in general and administrative expense ~~expenses~~is ~~for~~primarily ~~the~~due ~~years~~to ~~ended~~a ~~December~~decrease ~~31,~~in ~~2008 and 2007 are~~ reimbursements to the Managing General Partner as allowed under the ~~Partnership~~ Partnership Agreement. Also included in general and administrative expenses for the years ended December 31, 2009 and 2008 are costs associated with the quarterly and annual communications with investors and regulatory agencies and the annual audit required by the Partnership Agreement.

The increase in total revenues is due to increases ~~an increase~~ in both rental ~~income.~~and ~~Other~~other income ~~remained relatively constant for the comparable periods~~. Rental income increased ~~primarily~~ due to increases anin ~~increase~~both inoccupancy and the average rental rate, ~~partially~~at ~~offset~~The byViews aat Vinings ~~decrease~~Mountain Apartments. Other income increased primarily due to increases in resident ~~occupancy~~utility atreimbursements ~~The~~and ~~Views~~lease cancellation fees at ~~Vinings~~the ~~Mountain~~Partnership’s investment ~~Apartments~~property.

In July 2006, there was a fire at The Views at Vinings Mountain Apartments, causing damage to one unit. Insurance proceeds of approximately $9,000 were received during the year ended December 31, 2006 to cover the damages. The Partnership recognized a casualty gain of approximately $5,000 for the year ended December 31, 2006 as a result of the receipt of insurance proceeds, offset by the write-off of the undepreciated damaged asset of approximately $4,000. During the year ended December 31, 2007, the Partnership recognized a casualty gain of approximately $4,000, as a result of the receipt of additional insurance proceeds of approximately $4,000. During the year ended December 31, 2008, the Partnership recognized a casualty gain of approximately $8,000, as a result of the receipt of additional insurance proceeds of approximately $8,000.

Liquidity and Capital Resources

At December 31, ~~2008~~2009, the Partnership had cash and cash equivalents of approximately $~~142~~63,000, compared to ~~approximately~~ approximately $~~127~~142,000 at December 31, ~~2007~~2008. The ~~increase~~decrease in cash and cash ~~equivalents~~ equivalents of approximately $1579,000 is due to approximately $7306,~~131,~~000 of cash ~~provided~~ byused ~~financing~~in investing activities, partially offset by approximately $6189,~~349,~~000 and $~~767~~38,000 of cash ~~used~~provided inby ~~investing~~financing and operating activities, respectively. Cash used in investing activities consisted of property improvements and replacements. Cash provided by financing activities consisted of ~~proceeds~~an advance received from ~~the~~an ~~refinancing~~affiliate of the ~~mortgage~~Managing ~~encumbering~~General ~~The~~Partner ~~Views~~and atloan ~~Vinings~~costs ~~Mountain~~refunded ~~Apartments~~related ~~and~~to ~~advances~~the ~~received~~September ~~from~~2008 anrefinancing ~~affiliate~~ of the ~~Managing~~mortgage encumbering ~~General~~the ~~Partner~~property, partially offset by ~~repayment~~payments ofon advances ~~received~~ from an affiliate of the Managing General Partner, ~~repayment of the existing mortgage encumbering the Partnership’s investment property, loan costs~~ and ~~a prepayment penalty paid and~~ principal payments made on the mortgage encumbering The Views at Vinings Mountain Apartments. ~~Cash~~ used in investing activities consisted of property improvements and replacements, partially offset by insurance proceeds received. The Partnership invests its working capital reserves in interest bearing accounts.

The sufficiency of existing liquid assets to meet future liquidity and capital expenditure requirements is directly related to the level of capital expenditures required at the property to adequately maintain the physical assets and other operating needs of the Partnership and to comply with Federal, state and local legal and regulatory requirements. The Managing General Partner monitors developments in the area of legal and regulatory compliance. The Partnership regularly evaluates the capital improvement needs of the property. In November 2006, the Partnership began a major redevelopment project at the property in order for it to remain competitive with other properties in the Atlanta area. ~~Based~~The ~~on current~~ redevelopment ~~plans,~~was ~~the~~completed ~~Managing General Partner expects the redevelopment to be complete~~ in ~~March~~June 2009 at a total cost of approximately $11,~~442~~222,000., ~~The~~of ~~redevelopment~~which isapproximately ~~expected~~$11,148,000 was completed prior to ~~consist~~2009. The redevelopment consisted of the addition of a controlled access entrance gate, an amenity building, clubhouse renovations, swimming pool upgrades, roof replacement, HVAC upgrades, major landscaping, lighting upgrades, exterior and interior building improvements, sidewalk and parking area upgrades, signage, and kitchen, bathroom, and appliance upgrades to each unit. AsThe ofPartnership ~~December~~funded ~~31,~~the ~~2008,~~redevelopment ~~the~~from ~~Partnership~~operating ~~has~~cash ~~completed~~flow ~~approximately~~and ~~$11,148,000~~advances ~~for~~from ~~property~~AIMCO ~~redevelopment~~Properties, ~~of which approximately $4~~L.P.,~~816,000~~ ~~was completed~~an ~~during~~affiliate ~~2007~~of ~~and~~the ~~2006~~Managing General Partner. ~~The~~While the Partnership ~~expects~~has tono ~~fund~~material ~~the redevelopment~~commitments ~~from~~for ~~operating~~property improvements ~~cash flow~~ and ~~advances from AIMCO Properties~~replacements, ~~L.P. Certain~~certain ~~other~~ routine capital expenditures are anticipated during ~~2009~~2010. Such capital expenditures will depend on the physical condition of the property as well as anticipated cash flow generated by the property.

Capital expenditures will be incurred only if cash is available from operations, Partnership reserves or advances from AIMCO Properties, L.P., although AIMCO Properties, L.P. is not obligated to fund advances to the Partnership.~~Due~~To to the extent ofthat ~~the~~capital ~~redevelopment~~improvements ~~project~~are atcompleted, the ~~property,~~Partnership’s itdistributable iscash ~~not~~flow, ~~expected~~if ~~that the Partnership~~any, ~~will~~may ~~have~~be ~~any~~adversely ~~distributable~~affected ~~cash~~at ~~flow~~least ~~during~~in the ~~redevelopment period~~short term.

In accordance with the Partnership Agreement, AIMCO Properties, L.P., an affiliate of the Managing General Partner, advanced the Partnership approximately $6250,~~398,~~000 and $46,~~302~~398,000 to fund the redevelopment project, a rate lock deposit associated with the September 2008 refinancing ~~and operating expenses~~ at The Views at Vinings Mountain Apartments, real estate taxes, capital improvements and operating expenses during the years ended December 31, ~~2008~~2009 and ~~2007~~2008, respectively. Interest is charged at the prime rate plus 2% (5.25% at December 31, ~~2008~~2009). Interest expense amounted to approximately $~~447~~180,000 and $~~291~~447,000 for the years ended December 31, ~~2008~~2009 and ~~2007,~~ 2008, respectively. During the years ended December 31, ~~2008~~2009 and ~~2007~~2008, the ~~Partnership~~ Partnership made payments on the outstanding advances and accrued interest of ~~approximately~~ approximately $8245,~~620,~~000 and $368,620,000, from ~~proceeds~~cash from operations and proceeds from the refinancing of the mortgage encumbering the property ~~and cash from operations~~, respectively. At December 31, ~~2008~~ 2009 and ~~2007~~2008, the amount of the outstanding advances and accrued interest was approximately $3,~~407~~592,000 and $53,~~182~~407,000, respectively, and is included in due to affiliates on the balance sheets included in “Item 8. Financial Statements and Supplementary Data”. The Partnership may receive additional advances of funds from AIMCO Properties, L.P. although AIMCO Properties, L.P. is not obligated to provide such advances. For more information on AIMCO Properties, L.P., including copies of its audited balance sheet, please see its reports filed with the Securities and Exchange Commission.

The Partnership's assets are thought to be generally sufficient for any near-term needs (exclusive of ~~the~~capital ~~ongoing~~improvements ~~redevelopment~~ and payments of amounts due to affiliates) of the Partnership. On September 11, 2008, the Partnership refinanced the mortgage encumbering The Views at Vinings Mountain Apartments. The refinancing replaced the existing mortgage, which at the time of refinancing had a principal balance of approximately $4,754,000, with a new mortgage loan in the principal amount of $13,800,000. The new mortgage loan bears interest at 5.77% per annum and requires monthly payments of interest only of approximately $66,000 beginning on November 1, 2008 through October 1, 2009. Beginning on November 1, 2009, the new mortgage loan ~~will~~requires ~~require~~ monthly payments of principal and interest of approximately $81,000, through the September 11, 2013 maturity date. The new mortgage loan has a balloon payment of approximately $13,045,000 due at maturity. On September 11, 2010, if the Partnership does not meet a prescribed debt service coverage ratio, the Partnership will be required to make an additional payment of principal to reduce the outstanding principal balance to the prescribed debt service coverage ratio. The Partnership may prepay the mortgage loan at any time with 30 days written notice to the lender, subject to a prepayment penalty. The Partnership recognized a loss on the early extinguishment of debt of approximately $19,000, which is included in interest expense, as a result of a prepayment penalty. Total capitalized loan costs in connection with the new mortgage were approximately $262,000 and are included in other assets on the balance sheet as of December 31, 2008, which is included in “Item 8. Financial Statements and Supplementary Data”. Loan costs associated with the previous mortgage were fully amortized.

Other

In addition to its indirect ownership of the general partner interests in the Partnership, AIMCO and its affiliates owned 13,719 Units in the Partnership representing 52.54% of the outstanding Units at December 31, ~~2008~~2009. A number of these Units were acquired pursuant to tender offers made by AIMCO or its affiliates. It is possible that AIMCO or its affiliates will acquire additional Units in the Partnership in exchange for cash or a combination of cash and units in AIMCO Properties, L.P., the operating partnership of AIMCO, either through private purchases or tender offers. Pursuant to the Partnership Agreement, unitholders holding a majority of the Units are entitled to take action with respect to a variety of matters that include, but are not limited to, voting on certain amendments to the Partnership Agreement and voting to remove the General Partner. As a result of its ownership of 52.54% of the outstanding Units, AIMCO and its affiliates are in a position to control all voting decisions with respect to the Partnership. Although the General Partner owes fiduciary duties to the limited partners of the Partnership, the Managing General Partner also owes fiduciary duties to both the General Partner and AIMCO as the sole stockholder of the Managing General Partner.

Critical Accounting Policies and Estimates

A summary of the Partnership’s significant accounting policies is included in "Note A – Organization and Summary of Significant Accounting Policies" which is included in the financial statements in "Item 8. Financial Statements and Supplementary Data". The Managing General Partner believes that the consistent application of these policies enables the Partnership to provide readers of the financial statements with useful and reliable information about the Partnership’s operating results and financial condition. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires the Partnership to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements as well as reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Judgments and assessments of uncertainties are required in applying the Partnership’s accounting policies in many areas. The Partnership believes that of its significant accounting policies, the following may involve a higher degree of judgment and complexity.

Impairment of Long-Lived Asset

Investment property is recorded at cost, less accumulated depreciation, unless the carrying amount of the asset is not recoverable. If events or circumstances indicate that the carrying amount of the property may not be recoverable, the Partnership will make an assessment of its recoverability by comparing the carrying amount to the Partnership’s estimate of the undiscounted future cash flows, excluding interest charges, of ~~the~~ the property. If the carrying amount exceeds the estimated aggregate undiscounted future cash flows, the Partnership would recognize an impairment loss to the extent the carrying amount exceeds the estimated fair value of the property.

Real property investment is subject to varying degrees of risk. Several factors may adversely affect the economic performance and value of the Partnership’s investment property. These factors include, but are not limited to, general economic climate; competition from other apartment communities and other housing options; local conditions, such as loss of jobs or an increase in the supply of apartments that might adversely affect apartment occupancy or rental rates; changes in governmental regulations and the related cost of compliance; increases in operating costs (including real estate taxes) due to inflation and other factors, which may not be offset by increased rents; ~~and~~ changes in tax ~~laws~~ laws and housing laws, including the enactment of rent control laws or other ~~laws~~ laws regulating multi-family housing; and changes in interest rates and the availability of financing. Any adverse changes in these and other factors could cause an impairment of the Partnership’s asset.

Capitalized Costs Related to Redevelopment and Construction Projects

The Partnership capitalizes costs incurred in connection with capital expenditure activities, including redevelopment and construction projects. Costs including interest, property taxes and operating costs associated with redevelopment and construction projects are capitalized during periods in which redevelopment and construction projects are in progress ~~in accordance with Statement of Financial Accounting Standards (“SFAS”) No~~. ~~34, “Capitalization of Interest Costs”, and SFAS No. 67, “Accounting for Costs and the Initial Rental Operations of Real Estate Properties”.~~ Included in these capitalized costs are payroll costs associated with time spent by site employees in connection with the planning, execution and control of all capital expenditure activities at the ~~property~~ property level.

Revenue Recognition

The Partnership generally leases apartment units for twelve-month terms or less. The Partnership will offer rental concessions during particularly slow months or in response to heavy competition from other similar complexes in the area. Rental income attributable to leases, net of any concessions, is recognized on a straight-line basis over the term of the lease. The Partnership evaluates all accounts receivable from residents and establishes an allowance, after the application of security deposits, for accounts greater than 30 days past due on current tenants and all receivables due from former tenants.

Item 8. Financial Statements and Supplementary Data

FOX STRATEGIC HOUSING INCOME PARTNERS

LIST OF FINANCIAL STATEMENTS

Report of Independent Registered Public Accounting Firm

Balance Sheets - December 31, ~~2008~~2009 and ~~2007~~2008

Statements of Operations - Years ended December 31, ~~2008~~2009 and ~~2007~~2008

Statements of Changes in Partners' Deficit - Years ended December 31, ~~2008~~2009 and ~~2007~~2008

Statements of Cash Flows - Years ended December 31, ~~2008~~2009 and ~~2007~~2008

Notes to Financial Statements

Report of Independent Registered Public Accounting Firm

The Partners

Fox Strategic Housing Income Partners

We have audited the accompanying balance sheets of Fox Strategic Housing Income Partners as of December 31, ~~2008~~2009 and ~~2007~~2008, and the related statements of operations, changes in partners' deficit, and cash flows for each of the two years in the period ended December 31, ~~2008~~2009. 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 audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (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. We were not engaged to perform an audit of the Partnership’s internal control over financial reporting. Our audits included consideration of internal controls over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide 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 Fox Strategic Housing Income Partners at December 31, ~~2008~~2009 and ~~2007~~2008, and the results of its operations and its cash flows for each of the two years in the period ended December 31, ~~2008~~2009, in conformity with U.S. generally accepted accounting principles.

/s/ ERNST & YOUNG LLP

Greenville, South Carolina

March 1929, ~~2009~~2010

FOX STRATEGIC HOUSING INCOME PARTNERS

BALANCE SHEETS

(in thousands, except unit data)

	December 31,
	2008	2007
	2009	2008
Assets
Cash and cash equivalents	$ ~~142~~63	$ ~~127~~142
Receivables and deposits	2520	7125
Other assets	~~316~~208	45316
Investment property (Notes B and F):
Land	1,981	1,981
Buildings and related personal property	20,~~622~~896	1420,~~290~~622
	22,603	16,271
	22,877	22,603
Less accumulated depreciation	(810,~~034~~120)	(68,~~552~~034)
	14,569	9,719
	12,757	14,569
	$ 15,052	$ 9,962
	$ 13,048	$ 15,052
Liabilities and Partners' Deficit
Liabilities
Accounts payable	$ ~~247~~222	$ ~~262~~247
Tenant security deposit liabilities	3933	2339
Due to affiliates (Note D)	3,700	5,631
Accrued property taxes	22	--
Other liabilities	46	66
Due to affiliates (Note D)	3,864	3,700
Mortgage note payable (Note B)	13,800	4,829
Other liabilities	64	46
	17,832	10,811
Mortgage note payable (Note B)	13,771	13,800
	17,976	17,832
Partners' Deficit
General partner	(1,~~678~~721)	(~~579~~1,678)
Limited partners (26,111 units issued and	(13,~~102~~207)	(~~270~~1,102)
outstanding)	(24,~~780~~928)	(~~849~~2,780)
	$ 15,052	$ 9,962
	$ 13,048	$ 15,052

See Accompanying Notes to Financial Statements

FOX STRATEGIC HOUSING INCOME PARTNERS

STATEMENTS OF OPERATIONS

(in thousands, except per unit data)

	Years Ended December 31,
	2008	2007
	2009	2008
Revenues:
Rental income	$ 1,~~413~~875	$ 1,~~349~~413
Other income	~~130~~169	~~133~~130
Total revenues	12,~~543~~044	1,~~482~~543
Expenses:
Operating	~~877~~835	~~800~~877
General and administrative	~~122~~103	~~116~~122
Depreciation	12,~~482~~086	~~530~~1,482
Interest	~~853~~1,038	~~486~~853
Property taxes	~~148~~130	~~132~~148
Total expenses	34,~~482~~192	23,~~064~~482
Casualty gain (Note E)	8--	48
Net loss (Note C)	$(12,~~931~~148)	$ (~~578~~1,931)
Net loss allocated to general partner	$ (~~1,099~~43)	$ (61,099)
Net loss allocated to limited partners	(~~832~~2,105)	(~~572~~832)
	$(1,931)	$ (578)
	$(2,148)	$(1,931)
Net loss per limited partnership unit	$(3180.8662)	$(2131.9186)

See Accompanying Notes to Financial Statements

FOX STRATEGIC HOUSING INCOME PARTNERS

STATEMENTS OF CHANGES IN PARTNERS' DEFICIT

(in thousands, except unit data)

	Limited
	Partnership	General	Limited
	Units	Partner	Partners	Total
Original capital contributions	26,111	$ --	$26,111	$26,111
Partners' (deficiency) capital at
December 31, 2006	26,111	$ (573)	$ 302	$ (271)
Net loss for the year ended
December 31, 2007	--	(6)	(572)	(578)
Partners' deficit at
December 31, 2007	26,111	$ (579)	$ (270)	$ (849)
Net loss for the year ended
December 31, 2008	--	(1,099)	(832)	(1,931)
Partners' deficit at
December 31, 2008	26,111	(1,678)	(1,102)	(2,780)
Net loss for the year ended
December 31, 2009	--	(43)	(2,105)	(2,148)
Partners’ deficit at
December 31, 2008	26,111	$(1,678)	$(1,102)	$(2,780)
December 31, 2009	26,111	$(1,721)	$(3,207)	$(4,928)

See Accompanying Notes to Financial Statements

FOX STRATEGIC HOUSING INCOME PARTNERS

STATEMENTS OF CASH FLOWS

(in thousands)

	Years Ended
	December 31,
	2008	2007
	2009	2008
Cash flows from operating activities:
Net loss	$ (12,~~931~~148)	$ (~~578~~1,931)
Adjustments to reconcile net loss to net cash (used in)
Adjustments to reconcile net loss to net cash provided
provided by operating activities:
by (used in) operating activities:
Depreciation	12,~~482~~086	~~530~~1,482
Amortization of loan costs	2247	1522
Casualty gain	~~(8)~~--	(48)
Loss on early extinguishment of debt	19--	--19
Change in accounts:
Receivables and deposits	465	~~(13)~~46
Other assets	~~(31)~~32	(1131)
Accounts payable	107	1810
Tenant security deposit liabilities	16(6)	216
Due to affiliates	(~~372~~25)	~~315~~(372)
Other liabilities	(20)	1
Accrued property taxes	22	--
Net cash (used in) provided by operating
Other liabilities	18	(20)
activities	(767)	275
Net cash provided by (used in) operating
activities	38	(767)
Cash flows from investing activities:
Insurance proceeds received	8--	48
Property improvements and replacements	(~~6,357~~306)	(46,~~497~~357)
Net cash used in investing activities	(~~6,349~~306)	(46,~~493~~349)
Cash flows from financing activities:
Loan costs paid	(262)	--
Loan costs refunded (paid)	29	(262)
Repayment of mortgage note payable	~~(4,754)~~--	--(4,754)
Payments on mortgage note payable	(75)	(107)
Payments on mortgage notes payable	(29)	(75)
Proceeds from mortgage note payable	~~13,800~~--	--13,800
Prepayment penalty	~~(19)~~--	--(19)
Advances from affiliate	~~6,398~~250	46,~~302~~398
Payments on advances from affiliate	(~~7,957~~61)	--(7,957)
Net cash provided by financing activities	~~7,131~~189	47,~~195~~131
Net increase (decrease) in cash and cash equivalents	15	(23)
Net (decrease) increase in cash and cash equivalents	(79)	15
Cash and cash equivalents at beginning of year	~~127~~142	~~150~~127
Cash and cash equivalents at end of year	$ ~~142~~63	$ ~~127~~142
Supplemental disclosure of cash flow information:
Cash paid for interest, net of capitalized interest	$ ~~1,044~~915	$ ~~203~~1,044
Supplemental disclosure of non-cash activity:
Property improvements and replacements included in
accounts payable	$ ~~177~~145	$ ~~202~~177

Included in property improvements and replacements for the year ended December 31, ~~2007~~2008 are approximately $14202,000 of property improvements and replacements, which were included in accounts payable at December 31, ~~2006~~2007.

~~FOX~~See ~~STRATEGIC~~Accompanying ~~HOUSING INCOME PARTNERS~~ Notes To to Financial Statements ~~December 31, 2008~~

FOX STRATEGIC HOUSING INCOME PARTNERS

Notes To Financial Statements

December 31, 2009

Note A - Organization and Summary of Significant Accounting Policies

Organization: Fox Strategic Housing Income Partners (the "Partnership" or "Registrant") is a limited partnership organized under the laws of the State of California to operate and hold income-producing properties. The Partnership currently owns one apartment complex, located in Atlanta, Georgia. Fox Partners VIII, a California general partnership, is the general partner (the “General Partner”) of the Partnership. The general partners of Fox Partners VIII are Fox Capital Management Corporation ("FCMC" or the "Managing General Partner"), a California corporation, and Fox Realty Investors ("FRI"), a California general partnership. The Managing General Partner and the managing general partner of FRI are affiliates of Apartment Investment and Management Company ("AIMCO"), a publicly traded real estate investment trust. The Partnership Agreement provides that the Partnership is to terminate on December 31, 2025 unless terminated earlier in accordance with the terms of the Partnership Agreement. The Partnership was organized in 1984 and commenced operations in 1987. The capital contributions of $26,111,000 ($1,000 per unit) were made by the limited partners including one limited partnership unit purchased by an affiliate of FCMC.

Subsequent Events: The Partnership’s management evaluated subsequent events through the time this Annual Report on Form 10-K was filed.

Allocations to Partners: Net income, net loss, and distributions of cash of the Partnership are allocated between general and limited partners in accordance with the provisions of the Partnership Agreement.

In accordance with the Partnership Agreement, the Partnership’s net income in any year is allocated 20% to the general partner and 80% to the limited partners until the general partner is allocated 2.0408% of the total Original Invested Capital or approximately $533,000. For the year ended December 31, ~~2007~~2009, the Partnership’s net loss was allocated ~~100~~2% to the ~~limited~~ ~~partners~~general ~~until~~partner ~~the~~and 98% to the limited partners ~~had~~to athe ~~zero~~extent ~~balance~~of inPartnership ~~their~~minimum ~~Capital Account.~~gain, ~~The~~as ~~remaining~~defined ~~unallocated~~in ~~loss was allocated 2% to~~ the ~~general partner~~ ~~and~~Partnership ~~98% to the limited partners~~Agreement. For the year ended December 31, 2008, the Partnership’s net loss was allocated 2% to the general partner and 98% to the limited partners to the extent of Partnership ~~Minimum Gain, as defined in the~~ ~~Partnership~~minimum ~~Agreement~~gain. The remaining unallocated loss was allocated 100% to the ~~general~~ general partner.

~~Fair~~Recent ~~Value~~Accounting Pronouncement: ofIn ~~Financial~~June 2009, ~~Instruments: Statement of~~the Financial Accounting Standards Board (“~~SFAS~~FASB”) ~~No.~~issued ~~107,~~Statement ~~"Disclosures about Fair Value~~ of Financial Accounting ~~Instruments",~~Standards ~~as amended by SFAS~~ No. ~~119~~168, ~~"Disclosures~~The ~~about Derivative~~FASB ~~Financial~~Accounting ~~Instruments~~Standards Codification and the ~~Fair~~Hierarchy ~~Value~~ of ~~Financial~~Generally ~~Instruments", requires~~Accepted ~~disclosure~~Accounting ofPrinciples—a ~~fair~~replacement ~~value~~of ~~information~~FASB Statement ~~about~~No. ~~financial instruments~~162, ~~whether~~ or ~~not~~SFAS ~~recognized~~No. in168, ~~the~~which ~~balance~~is ~~sheet,~~effective for ~~which~~financial statements itissued isfor ~~practicable~~interim ~~to estimate~~and ~~fair~~annual ~~value. Fair~~periods ~~value~~ending isafter ~~defined~~September in15, 2009. Upon the effective date of SFAS asNo. 168, the ~~amount~~FASB atAccounting ~~which~~Standards ~~the~~Codification, ~~instruments~~or ~~could~~the beFASB ~~exchanged~~ASC, inbecame athe ~~current~~single ~~transaction~~source ~~between~~of ~~willing~~authoritative ~~parties,~~GAAP ~~other~~recognized ~~than~~by inthe aFASB ~~forced~~to orbe ~~liquidation~~applied ~~sale.~~by ~~The Partnership~~nongovernmental ~~believes~~entities. ~~that~~Rules ~~the~~and ~~carrying~~interpretive ~~amount~~releases of ~~its~~the ~~financial~~Securities ~~instruments~~and ~~(except~~Exchange Commission, ~~for~~or ~~long term~~SEC, ~~debt)~~under ~~approximates~~authority ~~their~~of ~~fair~~federal ~~value~~securities ~~due~~laws toare ~~the~~also ~~short~~sources of ~~term~~authoritative ~~maturity~~GAAP offor ~~these instruments~~SEC registrants. The ~~Partnership~~FASB ~~estimates~~ASC ~~the~~superseded ~~fair~~all ~~value~~then-existing ~~of its long~~non-~~term~~SEC ~~debt~~accounting byand ~~discounting~~reporting ~~future~~standards, ~~cash~~and ~~flows~~all ~~using a discount~~other ~~rate~~non-grandfathered ~~commensurate~~non-SEC ~~with~~accounting ~~that~~literature ~~currently~~not ~~believed~~included toin bethe ~~available~~FASB toASC ~~the~~is ~~Partnership~~now ~~for similar term, long~~non-~~term debt~~authoritative. ~~The~~Subsequent ~~fair~~to ~~value~~the effective date of ~~the~~SFAS No. 168, ~~Partnership's~~the ~~long~~FASB ~~term~~will ~~debt~~issue atAccounting ~~the~~Standards ~~Partnership's~~Updates ~~incremental~~that ~~borrowing~~serve ~~rate approximates~~to ~~its~~update ~~carrying~~the ~~value~~FASB ASC.

~~Investment~~Fair ~~Property: Investment~~Value ~~property consists~~ of ~~one~~Financial ~~apartment~~Instruments: FASB ~~complex~~ASC Topic ~~and~~825, is“Financial ~~stated~~Instruments”, atrequires ~~cost.~~disclosure ~~The~~of ~~Partnership~~fair ~~capitalizes costs~~value ~~incurred~~information inabout ~~connection~~financial ~~with~~instruments, ~~capital~~whether ~~expenditure activities,~~or ~~including~~not ~~redevelopment~~recognized ~~and~~in ~~construction~~the balance ~~projects~~sheet, ~~other~~for ~~tangible~~which ~~property~~it ~~improvements and~~is ~~replacements~~practicable ofto ~~existing~~estimate ~~property~~fair ~~components~~value. ~~Costs~~ ~~including interest,~~Fair ~~property~~value ~~taxes and operating costs associated with redevelopment and~~is ~~construction~~defined ~~projects~~as ~~are~~the ~~capitalized~~amount ~~during~~at ~~periods in~~ which ~~redevelopment~~the ~~and construction~~instruments ~~projects~~could ~~are~~be inexchanged ~~progress~~ in ~~accordance~~a ~~with~~current transaction ~~SFAS~~between ~~No.~~willing 34parties, ~~“Capitalization of~~other ~~Interest~~than ~~Costs”,~~in ~~and~~a ~~SFAS~~forced ~~No.~~or ~~67,~~liquidation ~~“Accounting~~sale. The ~~for~~Partnership ~~Costs~~believes ~~and~~that the ~~Initial Rental~~carrying ~~Operations~~amount of ~~Real~~its ~~Estate~~financial ~~Properties”. Costs~~instruments (except ~~incurred~~for inlong ~~connection with~~term ~~capital~~debt) ~~projects~~approximates ~~are~~their ~~capitalized~~fair ~~where~~value due to the ~~costs~~short-term maturity of ~~the~~these ~~project exceed $250~~instruments. ~~Included~~ inThe ~~these~~Partnership ~~capitalized~~estimates ~~costs~~the ~~are~~fair ~~payroll~~value ~~costs~~of ~~associated~~its ~~with~~long-term ~~time~~debt ~~spent~~ by ~~site~~discounting ~~employees~~future incash ~~connection~~flows ~~with~~using ~~the~~a ~~planning,~~discount ~~execution and~~rate ~~control~~commensurate ofwith ~~all~~that ~~capital~~currently ~~expenditure~~believed ~~activities~~to atbe ~~the~~available ~~property~~to ~~level. During~~ the ~~years ended December 31, 2008 and 2007, the~~ Partnership ~~capitalized~~for ~~construction~~similar ~~period interest of approximately $112~~term,~~000~~ ~~and~~long-term ~~$158,000, respectively,~~debt. At ~~construction~~December ~~period real estate taxes of approximately $16~~31,~~000~~ ~~and $12~~2009,~~000,~~ ~~respectively,~~the ~~and~~fair ~~other~~value ~~construction period operating costs~~ of ~~approximately~~ ~~$6,000 and $4,000, respectively. Capitalized costs are depreciated~~the ~~over~~Partnership's ~~the~~long-term ~~useful~~debt ~~life~~at of the ~~asset. Expenditures~~Partnership's ~~for~~incremental ~~ordinary~~borrowing ~~repairs,~~rate ~~maintenance~~approximated ~~and~~its ~~apartment~~carrying ~~turnover costs are expensed as incurred~~value.

InInvestment ~~accordance~~Property: Investment ~~with~~property ~~SFAS~~consists ~~No.~~of ~~144~~one apartment complex and is stated at cost, ~~“Accounting~~less accumulated depreciation, unless ~~for~~the carrying amount of the ~~Impairment~~asset oris ~~Disposal~~not recoverable. The Partnership capitalizes costs incurred in connection with capital expenditure activities, including redevelopment and construction projects, other tangible property improvements and replacements of ~~Long-Lived~~existing ~~Assets”~~property components. Costs including interest, property taxes and operating costs associated with redevelopment and construction projects are capitalized during periods in which redevelopment and construction projects are in progress. Costs incurred in connection with capital projects are capitalized where the ~~Partnership~~costs ~~records~~of the project exceed $250. Included in ~~impairment~~these ~~losses~~capitalized oncosts ~~long-lived~~are ~~assets~~payroll ~~used~~costs associated with time spent by site employees in ~~operations~~connection ~~when~~with ~~events~~the planning, execution and control of all capital ~~circumstances~~expenditure ~~indicate~~activities at the ~~assets~~property ~~might~~level. During bethe ~~impaired~~years ended December 31, 2009 and 2008, the ~~undiscounted~~Partnership ~~cash~~capitalized construction period ~~flows~~interest ~~estimated~~of toapproximately be$1,000 ~~generated~~and by$112,000, ~~those~~respectively, ~~assets~~construction ~~are~~period real estate taxes of less than ~~the~~$1,000 ~~carrying~~and approximately $16,000, respectively, ~~amounts~~and other construction period operating costs of ~~those~~less ~~assets~~than $1,000 and approximately $6,000, respectively. No ~~adjustments~~Capitalized ~~for~~costs ~~impairment~~are ofdepreciated ~~value~~over ~~were~~the ~~necessary~~useful ~~for~~life of the ~~years~~asset. Expenditures ~~ending~~for ~~December~~ordinary 31repairs, ~~2008~~ maintenance and ~~2007~~apartment turnover costs are expensed as incurred.

If events or circumstances indicate that the carrying amount of the property may not be recoverable, the Partnership will make an assessment of its recoverability by comparing the carrying amount to the Partnership’s estimate of the undiscounted future cash flows, excluding interest charges, of the property. If the carrying amount exceeds the estimated aggregate undiscounted future cash flows, the Partnership would recognize an impairment loss to the extent the carrying amount exceeds the estimated fair value of the property. No adjustments for impairment of value were necessary for the years ending December 31, 2009 and 2008.

Depreciation: Depreciation is provided by the straight-line method over the estimated lives of the rental property and personal property. For Federal income tax purposes, the accelerated cost recovery method is used for depreciation of (1) real property over 27 1/2 years and (2) personal property additions over 5 years.

Cash and Cash Equivalents: Cash and cash equivalents include cash on hand and in banks. At certain times, the amount of cash deposited at a bank may exceed the limit on insured deposits. Cash balances include approximately $~~103~~53,000 and $~~100~~103,000 at December 31, ~~2008~~2009 and ~~2007~~2008 that are maintained by an affiliated management company on behalf of affiliated entities in cash concentration accounts.

Leases: The Partnership generally leases apartment units for twelve-month terms or less. The Partnership will offer rental concessions during particularly slow months or in response to heavy competition from other similar complexes in the area. Rental income attributable to leases, net of any concessions, is recognized on a straight-line basis over the term of the lease. The Partnership evaluates all accounts receivable from residents and establishes an allowance, after the application of security deposits, for accounts greater than 30 days past due on current tenants and all receivables due from former tenants.

Deferred Costs: At December 31, ~~2008~~2009 and ~~2007~~2008, loan costs of approximately $~~262~~233,000 and $~~153~~262,000, respectively, less accumulated amortization of approximately $1158,000 and $~~142~~11,000, respectively, ~~are~~ are included in other assets. The loan costs are amortized over the term of of the related loan agreement. Amortization expense for the years ended December 31, ~~2008~~2009 and ~~2007~~2008 was approximately $2247,000 and $1522,000, respectively. Amortization expense, which is included in interest expense, is expected to be approximately $5347,000 for each of the years ~~2009~~2010 through 2012 and approximately $3934,000 for 2013.

Leasing commissions and other direct costs incurred in connection with successful leasing efforts are deferred and amortized over the terms of the related leases. Amortization of these costs is included in operating expenses.

Tenant Security Deposits: The Partnership requires security deposits from lessees for the duration of the lease. The security deposits are refunded when the tenant vacates, provided the tenant has not damaged the space and is current on rental payments.

Segment Reporting: ~~SFAS~~FASB ~~No.~~ASC ~~131,~~Topic ~~"Disclosure~~280-10, ~~about~~“Segment ~~Segments of an Enterprise and Related Information"~~Reporting”, established standards for the way public business enterprises report information about operating segments in annual financial statements and requires that those enterprises report selected information about operating segments in interim financial reports. ~~SFAS~~FASB ~~No.~~ASC ~~131~~Topic ~~also~~280-10 also established standards for related disclosures about products and services, geographic areas, and major customers. As defined in ~~SFAS~~FASB ~~No.~~ASC ~~131~~Topic 280-10, the Partnership has only one reportable segment.

Advertising: The Partnership expenses the costs of advertising as incurred. Advertising expense of approximately $~~169~~89,000 and $92169,000 for the years ended December 31, ~~2008~~2009 and ~~2007~~2008, respectively, were charged to operating expense.

Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Recent Accounting Pronouncement: In September 2006, the Financial Accounting Standards Board (“FASB”) issued SFAS No. 157, “Fair Value Measurements”. SFAS No. 157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. SFAS No. 157 applies whenever other standards require assets or liabilities to be measured at fair value and does not expand the use of fair value in any new circumstances. SFAS No. 157 establishes a hierarchy that prioritizes the information used in developing fair value estimates. The hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data, such as the reporting entity’s own data. SFAS No. 157 requires fair value measurements to be disclosed by level within the fair value hierarchy. In February 2008, the FASB issued FASB Staff Position No. FAS 157-2, “Effective Date of FASB Statement No. 157”, which deferred the effective date of SFAS No. 157 for all nonrecurring fair value measurements of non-financial assets and non-financial liabilities until fiscal years beginning after November 15, 2008. The provisions of SFAS No. 157 are applicable to recurring fair value measurements of financial assets and liabilities for fiscal years beginning after November 15, 2007, which for the Partnership is generally limited to annual disclosures required by SFAS No. 107. The Partnership adopted the provisions of SFAS No. 157 effective January 1, 2008, and at that time determined no transition adjustment was required.

Note B - Mortgage Note Payable

The principal terms of the mortgage ~~notes~~note payable are as follows:

	Principal		Monthly			Principal
	Balance At		Payment	Stated		Balance
	December 31,		Including	Interest	Maturity	Due At
Property	~~2008~~2009	~~2007~~2008	Interest	Rate	Date	Maturity
	(in thousands)		(in thousands)			(in thousands)
The Views at Vinings
Mountain Apartments	$13,~~800~~771	$ 413,~~829~~800	$ 6681	5.77%	09/11/2013	$13,045

On September 11, 2008, the Partnership refinanced the mortgage encumbering The Views at Vinings Mountain Apartments. The refinancing replaced the existing mortgage, which at the time of refinancing had a principal balance of approximately $4,754,000, with a new mortgage loan in the principal amount of $13,800,000. The new mortgage loan bears interest at 5.77% per annum and requires monthly payments of interest only of approximately $66,000 beginning on November 1, 2008 through October 1, 2009. Beginning on November 1, 2009, the new mortgage loan ~~will~~requires ~~require~~ monthly payments of principal and interest of approximately $81,000, through the September 11, 2013 maturity date. The new mortgage loan has a balloon payment of approximately $13,045,000 due at maturity. On September 11, 2010, if the Partnership does not meet a prescribed debt service coverage ratio, the Partnership will be required to make an additional payment of principal to reduce the outstanding principal balance to the prescribed debt service coverage ratio. The Partnership may prepay the mortgage loan at any time with 30 days written notice to the lender, subject to a prepayment penalty. The Partnership recognized a loss on the early extinguishment of debt of of approximately $19,000, which is included in interest expense, as a result of a a prepayment penalty. Total capitalized loan costs in connection with the new mortgage were approximately $262,000 for the year ended December 31, 2008, approximately$29,000 of which was refunded during the year ended December 31, 2009 and are included in other assets. Loan costs associated with the previous mortgage were fully amortized.

The mortgage note payable is a fixed rate mortgage that is non-recourse and is secured by a pledge of the Partnership’s rental property and by a pledge of revenues from the rental property. The mortgage note payable includes a prepayment penalty if repaid prior to maturity. Further, the property may not be sold subject to existing indebtedness.

Scheduled principal payments of the mortgage note payable subsequent to December 31, ~~2008~~2009 are as follows (in thousands):

2009	$ 29
2010	179
2011	189
2012	200
2013	13,203
Total	$13,~~800~~771

Note C - Income Taxes

The Partnership is classified as a partnership for Federal income tax purposes. Accordingly, no provision for income taxes is made in the financial statements of the Partnership. Taxable income or loss of the Partnership is reported in the income tax returns of its partners.

The following is a reconciliation of net loss as reported in the financial statements and Federal taxable loss allocated to the partners in the Partnership's information return for the years ended December 31, ~~2008~~2009 and ~~2007~~2008 (in thousands, except per unit data):

		2008	2007
	2009	2008
Net loss as reported	~~Net loss as reported~~$(2,148)	$(1,931)	~~$ (578)~~
Deduct:	~~Deduct:~~
Depreciation differences	~~Depreciation differences~~(620)	(580)	~~(72)~~
Other	~~Other~~(5)	(16)	16
Federal taxable loss	~~Federal taxable loss~~$(2,773)	$(2,527)	~~$ (634)~~
Federal taxable loss per	~~Federal taxable loss per~~
limited partnership unit	~~limited partnership unit~~$(78.73)	$(30.30)	~~$ --~~

For ~~2008~~2009 and ~~2007~~2008, allocations under the Internal Revenue Code section 704(b) resulted in the limited partners being allocated a non-pro rata amount of taxable loss.

The following is a reconciliation between the Partnership's reported amounts and Federal tax basis of net liabilities (in thousands):

	2008	2007
	2009	2008
Net liabilities as reported	$(24,~~780~~928)	$ (~~849~~2,780)
Land and buildings	~~129~~106	~~(1)~~129
Accumulated depreciation	(1,~~154~~774)	(~~574~~1,154)
Syndication and distribution costs	757	757
Other	(3416)	~~112~~(34)
Net liabilities - Federal tax basis	$(35,~~082~~855)	$ (~~555~~3,082)

Note D - Transactions with Affiliated Parties

The Partnership has no employees and depends on the Managing General Partner and its affiliates for the management and administration of all Partnership activities. The Partnership Agreement provides for payments to affiliates for services and reimbursement of certain expenses incurred by affiliates on behalf of the Partnership.

Affiliates of the Managing General Partner receive 5% of gross receipts from the Partnership's investment property as compensation for providing property management services. The Partnership paid to such affiliates approximately $74101,000 and $7374,000 for the years ended December 31, ~~2008~~2009 and ~~2007~~2008, respectively, which are included in operating expenses.

Affiliates of the Managing General Partner charged the Partnership for reimbursement of accountable administrative expenses amounting to approximately $27,000 and $47,000 for ~~each of~~ the years ended December 31, ~~2008~~2009 and ~~2007~~2008, respectively, which is included in general and administrative expenses. In connection with the redevelopment project (as discussed in “Note F”), an affiliate of the Managing General Partner received ~~is to receive~~ a redevelopment supervision fee of 4% of the actual redevelopment costs, or approximately $~~436~~440,000 based on ~~current estimated~~ redevelopment costs. The ~~Partnership~~ Partnership was charged approximately $~~227~~25,000 and $~~161~~227,000 in redevelopment ~~supervision~~ supervision fees during the years ended December 31, ~~2008~~2009 and ~~2007~~2008, respectively, which are included in investment property. At December 31, 2008 ~~and 2007~~, approximately $21,000 ~~and $177,000, respectively,~~ of these accountable administrative expenses ~~remain~~ were unpaid and ~~are~~were included in due to affiliates. No such amounts were unpaid at December 31, 2009.

In accordance with the Partnership Agreement, AIMCO Properties, L.P., an affiliate of the Managing General Partner, advanced the Partnership approximately $6250,~~398,~~000 and $46,~~302~~398,000 to fund the redevelopment project, a rate lock deposit associated with the September 2008 refinancing ~~and operating expenses~~ at The Views at Vinings Mountain Apartments, real estate taxes, capital improvements and operating expenses during the years ended December 31, ~~2008~~2009 and ~~2007~~2008, respectively. Interest is charged at the prime rate plus 2% (5.25% at December 31, ~~2008~~2009). Interest expense amounted to approximately $~~447~~180,000 and $~~291~~447,000 for the years ended December 31, ~~2008~~2009 and ~~2007~~ 2008, respectively. During the years ended December 31, ~~2008~~2009 and ~~2007~~2008, the Partnership made payments on the outstanding advances and accrued interest of ~~approximately~~ approximately $8245,~~620,~~000 and $368,620,000, from ~~proceeds~~cash from operations and proceeds from the refinancing of the mortgage encumbering the property ~~and cash from operations~~, respectively. At December 31, ~~2008~~ 2009 and ~~2007~~2008, the amount of the outstanding advances and accrued interest was approximately $3,~~407~~592,000 and $53,~~182~~407,000, respectively, and is included in due to affiliates. The Partnership may receive additional advances of funds from AIMCO Properties, L.P. although AIMCO Properties, L.P. is not obligated to provide such advances. For more information on AIMCO Properties, L.P., including copies of its audited balance sheet, please see its reports filed with the Securities and Exchange Commission.

In accordance with the Partnership Agreement, the Managing General Partner earns partnership management fees on distributions from operations. There were no partnership management fees earned during the years ended December 31, ~~2008~~2009 and ~~2007~~2008 as there were no operating distributions. The Partnership Agreement requires that 62.5% of the fees earned be subordinated to the Limited Partners’ annual receipt of 8% of adjusted invested capital as defined in the Partnership Agreement. The cumulative subordinated fees owed to the Managing General Partner at both December 31, ~~2008~~2009 and ~~2007~~2008 amounted to approximately $272,000 and are included in due to affiliates.

The Partnership insures its property up to certain limits through coverage provided by AIMCO which is generally self-insured for a portion of losses and liabilities related to workers’ compensation, property casualty, general liability and vehicle liability. The Partnership insures its property above the AIMCO limits through insurance policies obtained by AIMCO from insurers unaffiliated with the Managing General Partner. During the years ended December 31, ~~2008~~2009 and ~~2007~~2008, the Partnership was charged by AIMCO and its affiliates approximately $3724,000 and $4637,000, respectively, for insurance coverage and fees associated with policy claims administration.

In addition to its indirect ownership of the general partner interests in the Partnership, AIMCO and its affiliates owned 13,719 limited partnership units (the “Units”) in the Partnership representing 52.54% of the outstanding Units at December 31, ~~2008~~2009. A number of these Units were acquired pursuant to tender offers made by AIMCO or its affiliates. It is possible that AIMCO or its affiliates will acquire additional Units in the Partnership in exchange for cash or a combination of cash and units in AIMCO Properties, L.P., the operating partnership of AIMCO, either through private purchases or tender offers. Pursuant to the Partnership Agreement, unitholders holding a majority of the Units are entitled to take action with respect to a variety of matters that include, but are not limited to, voting on certain amendments to the Partnership Agreement and voting to remove the General Partner. As a result of its ownership of 52.54% of the outstanding Units, AIMCO and its affiliates are in a position to control all voting decisions with respect to the Partnership. Although the General Partner owes fiduciary duties to the limited partners of the Partnership, the Managing General Partner also owes fiduciary duties to both the General Partner and AIMCO as the sole stockholder of the General Partner.

Note E – Casualty Event

Note F – Investment Property and Accumulated Depreciation

		Initial Cost
		To Partnership
		(in thousands)
			Buildings	Net Cost
			and Related	Capitalized
			Personal	Subsequent to
Description	Encumbrances	Land	Property	Acquisition
	(in thousands)			(in thousands)
The Views at Vinings Mountain
Apartments	$13,~~800~~771	$ 1,981	$ 7,366	$13,~~256~~530

	Gross Amount At Which Carried
	At December 31, 2008
	At December 31, 2009
	(in thousands)
		Buildings
		and Related
		Personal		Accumulated	Year of	Date	Depreciable
Description	Land	Property	Total	Depreciation	Construction	Acquired	Life
				(in thousands)
The Views at Vinings
Mountain Apartments	$ 1,981	$20,~~622~~896	$22,~~603~~877	$ 810,~~034~~120	1982	09/87	5-30 yrs

In November 2006, the Partnership began a major redevelopment project at the property in order for it to remain competitive with other properties in the Atlanta area. ~~Based~~The ~~on current~~ redevelopment ~~plans, the Managing General Partner expects the~~was ~~redevelopment~~completed ~~to be complete~~ in ~~March~~June 2009 at a total cost of approximately $11,~~442~~222,000., ~~The~~of ~~redevelopment~~which approximately is$11,148,000 ~~expected~~was completed prior to ~~consist~~2009. The redevelopment consisted of the addition of a controlled access entrance gate, an amenity building, clubhouse renovations, swimming pool upgrades, roof replacement, HVAC upgrades, major landscaping, lighting upgrades, exterior and interior building improvements, sidewalk and parking area upgrades, signage, and kitchen, bathroom, and appliance upgrades to each unit. ~~As of December 31, 2008, the Partnership has completed approximately $11,148,000 for property redevelopment, of which approximately $4,816,000 was completed during 2007 and 2006.~~ The Partnership ~~expects~~funded ~~to fund~~ the redevelopment from operating cash flow and advances from AIMCO Properties, L.P. During the construction period, certain expenses ~~are~~were ~~being~~ capitalized and are being depreciated over the remaining life of the related assets. During the ~~years~~ years ended December 31, ~~2008~~2009 and ~~2007~~2008, approximately $~~112~~1,000 and $~~158~~112,000, respectively, of construction period interest, ~~approximately~~less than $161,000 and approximately $1216,000, respectively, of construction period real estate taxes~~, and~~ ~~approximately~~and less than $61,000 and approximately $46,000, respectively, of ~~other~~ construction ~~period~~ period operating costs were capitalized.

Reconciliation of "investment property and accumulated depreciation" (in thousands):

	Years Ended December 31,
	2008	2007
	2009	2008
Investment Property
Balance at beginning of year	$1622,~~271~~603	$1116,~~586~~271
Property improvements	~~6,332~~274	46,~~685~~332
Balance at end of year	$22,~~603~~877	$1622,~~271~~603
Accumulated Depreciation
Balance at beginning of year	$ 68,~~552~~034	$ 6,~~022~~552
Additions charged to expense	12,~~482~~086	~~530~~1,482
Balance at end of year	$ 810,~~034~~120	$ 68,~~552~~034

The aggregate cost of the real estate for Federal income tax purposes at December 31, ~~2008~~2009 and ~~2007~~2008 is approximately $22,~~474~~771,000 and $1622,~~262~~474,000, respectively. The accumulated depreciation taken for Federal income tax purposes at December 31, ~~2008~~2009 and ~~2007~~2008 is approximately $911,~~188~~894,000 and $79,~~126~~188,000, respectively.

Note G - Contingencies

As previously disclosed, AIMCO Properties, L.P. and NHP Management Company, both affiliates of the Managing General Partner, were defendants in a lawsuit, filed as a collective action in August 2003 in the United States District Court for the District of Columbia, alleging that they willfully violated the Fair Labor Standards Act (“FLSA”) by failing to pay maintenance workers overtime for time worked in excess of 40 hours per week (“overtime claims”). The plaintiffs also contended that AIMCO Properties, L.P. and NHP Management Company (“the Defendants”) failed to ~~compensate~~ compensate maintenance workers for time that they were required to be "on-call" (“on-call claims”). In March 2007, the court in the District of Columbia ~~decertified~~ decertified the collective action. In July 2007, plaintiffs’ counsel filed individual cases in Federal court in 22 jurisdictions. In the second quarter of 2008, AIMCO Properties, L.P. settled the overtime cases involving 652 plaintiffs and established a framework for resolving the 88 remaining “on-call” claims and the attorneys’ fees claimed by plaintiffs’ counsel. As a result, the lawsuits asserted in the 22 Federal courts ~~will~~have bebeen dismissed. During the fourth quarter of 2008, the settlement amounts for alleged unpaid overtime to employees were paid by those partnerships where the respective employees had worked. The Partnership was not required to pay any settlement amounts. At this time, the 88 remaining “on-call” claims and the attorneys’ fees claimed by plaintiffs’ counsel are not resolved. The parties have selected six “on-call” claims that will proceed forward through the arbitration process and have selected arbitrators. After those arbitrations have been completed, the parties will revisit settling the on-call claims. The first two arbitrations took place in December 2009 and the Defendants received a defense verdict against the first two claimants, and plaintiffs dismissed the claims of the next two claimants. The remaining two arbitrations will take place in April 2010. The Managing General Partner is uncertain as to the amount of any ~~additional~~ loss that may be allocable to the Partnership. Therefore, the Partnership cannot estimate whether any ~~additional~~ loss will occur or a potential range of loss.

The Partnership is unaware of any other pending or outstanding litigation matters involving it or its investment property that are not of a routine nature arising in the ordinary course of business.

Environmental

Mold

The Partnership is aware of lawsuits against owners and managers of multifamily properties asserting claims of personal injury and property damage caused by the presence of mold, some of which have resulted in substantial monetary judgments or settlements. The Partnership has only limited insurance coverage for property damage loss claims arising from the presence of mold and for personal injury claims related to mold exposure. Affiliates of the Managing General Partner have implemented policies, procedures, third-party audits and training and the Managing General Partner believes that these measures will prevent or eliminate mold exposure and will minimize the effects that mold may have on residents. To date, the Partnership has not incurred any material costs or liabilities relating to claims of mold exposure or to abate mold conditions. Because the law regarding mold is unsettled and subject to change, the Managing General Partner can make no assurance that liabilities resulting from the presence of or exposure to mold will not have a material adverse effect on the Partnership’s financial condition or results of operations.

ITEM 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

None.

Item 9A(T). Controls and Procedures

(a) Disclosure Controls and Procedures

The Partnership’s management, with the participation of the principal executive officer and principal financial officer of the Managing General Partner, who are the equivalent of the Partnership’s principal executive officer and principal financial officer, respectively, has evaluated the effectiveness of the Partnership’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on such evaluation, the principal executive officer and principal financial officer of the Managing General Partner, who are the equivalent of the Partnership’s principal executive officer and principal financial officer, respectively, have concluded that, as of the end of such period, the Partnership’s disclosure controls and procedures are effective.

Management’s Report on Internal Control Over Financial Reporting

The Partnership’s management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act as a process designed by, or under the supervision of, the principal executive and principal financial officers of the Managing General Partner, who are the equivalent of the Partnership’s principal executive officer and principal financial officer, respectively, and effected by the Partnership’s management and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

· pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of assets;

· provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of the Partnership’s management; and

· provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risks that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The Partnership’s management assessed the effectiveness of the Partnership’s internal control over financial reporting as of December 31, ~~2008~~2009. In making this assessment, the Partnership’s management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework.

Based on their assessment, the Partnership’s management concluded that, as of December 31, ~~2008~~2009, the Partnership’s internal control over financial reporting is effective.

This annual report does not include an attestation report of the Partnership’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to the attestation by the Partnership’s registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Partnership to provide only management’s report in this annual report.

(b) Changes in Internal Control Over Financial Reporting.

There has been no change in the Partnership’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fourth quarter of ~~2008~~2009 that has materially affected, or is reasonably likely to materially affect, the Partnership’s internal control over financial reporting.

Item 9B. Other Information

None.

PART III

Item 10. Directors, Executive Officers and Corporate Governance

The general partner of Fox Strategic Housing Income Partners (the “Partnership” or the “Registrant”) is Fox Partners VIII (the “General Partner”). The general partners of Fox Partners VIII are Fox Capital Management Corporation (“FCMC” or the “Managing General Partner”) and Fox Realty Investors (“FRI”). The names and ages of, as well as the positions and offices held by, the present officers and directors of the Managing General Partner are set forth below. There are no family relationships between or among any officers or directors.

Name	Age	Position
Steven D. Cordes	3738	Director and Senior Vice President
Harry G. Alcock	46	Director and Executive Vice President
John Bezzant	47	Director and Senior Vice President
Timothy J. Beaudin	5051	President and Chief Operating Officer
David R. Robertson	43	President and Chief Financial Officer
Ernest M. Freedman	39	Executive Vice President and Chief Financial Officer
Lisa R. Cohn	4041	Executive Vice President, General Counsel and Secretary
Patti K. Fielding	45	Executive Vice President – Securities and Debt; Treasurer
Paul Beldin	36	Senior Vice President and Chief Accounting Officer
Paul Beldin	35	Senior Vice President and Chief Accounting Officer
Stephen B. Waters	48	Senior Director of Partnership Accounting
Stephen B. Waters	47	Vice President

Steven D. Cordes was appointed as a ~~Director~~ Director of the Managing General Partner effective March 2, 2009. Mr. Cordes has been a Senior Vice President of the Managing General Partner and AIMCO since May ~~2007. Mr. Cordes was appointed Senior Vice President –~~ ~~Structured Equity in May~~ 2007. Mr. Cordes joined AIMCO in 2001 as a Vice President of Capital Markets with responsibility for AIMCO’s joint ventures and equity capital markets activity. Prior to joining AIMCO, Mr. Cordes was a manager in the financial consulting practice of PricewaterhouseCoopers. Effective March 2009, Mr. Cordes was appointed to serve as the equivalent of the chief executive officer of the Partnership. Mr. Cordes brings particular expertise to the Board in the areas of asset management as well as finance and accounting.

~~Harry~~John G.Bezzant ~~Alcock~~ was ~~appointed~~ appointed as a Director of the Managing General Partner ineffective ~~October~~December ~~2004~~16, ~~and was~~2009. ~~appointed~~Mr. ~~Executive~~Bezzant has been a Senior Vice President of the Managing General Partner ~~in February~~and ~~2004~~AIMCO ~~and~~since ~~has~~joining ~~been~~AIMCO ~~Executive~~in ~~Vice~~June ~~President~~2006. Prior ofto joining AIMCO, ~~since~~from 2005 ~~October~~to ~~1999.~~ June 2006, Mr. ~~Alcock~~Bezzant ~~has~~was ~~had~~a ~~responsibility~~First ~~for~~Vice ~~acquisition~~President ~~and~~at ~~financing~~Prologis, ~~activities~~a ofDenver, ~~AIMCO~~Colorado-based ~~since~~real ~~July~~estate ~~1994~~investment trust, ~~serving~~and ~~as Vice President~~ from ~~July~~1986 ~~1996~~ to ~~October~~2005, ~~1997~~Mr. Bezzant ~~and~~served as ~~Senior~~ Vice President, ~~from~~Asset ~~October~~Management ~~1997~~at toCatellus ~~October~~Development ~~1999.~~Corporation, a San Francisco, California-based real estate investment trust. Mr. ~~Alcock~~ ~~focuses~~Bezzant onbrings ~~transactions~~particular ~~related~~expertise to ~~AIMCO’s~~the ~~portfolio~~Board ~~of properties~~ in the ~~western~~ ~~portion~~areas of ~~the~~real ~~United~~estate finance, ~~States~~property operations, sales and development.

Timothy J. Beaudin was appointed ~~Executive Vice~~ President and Chief ~~Development~~Operating Officer of AIMCO and the Managing General Partner ~~and~~in February 2009. He joined AIMCO and the Managing General Partner as Executive Vice President and Chief Development Officer in October 2005 and was appointed Executive Vice President and Chief Property Operating Officer of the Managing General Partner and AIMCO in October 2008. Mr. ~~Beaudin was promoted to President and Chief~~ ~~Operating Officer of AIMCO in February 2009. Mr.~~ Beaudin oversees conventional and affordable property operations, ~~and~~transactions, asset ~~information technology~~management, inand ~~addition to~~ redevelopment and construction services~~. He~~ isfor ~~also~~AIMCO ~~responsible~~and ~~for asset~~the ~~management~~Managing ~~for~~General ~~conventional properties~~Partner. Prior to joining AIMCO and beginning in 1995, Mr. Beaudin was with Catellus Development Corporation~~, a San Francisco, California-based real estate investment trust~~. During his last five years at Catellus, Mr. Beaudin served as Executive Vice President, with management responsibility for development, construction and asset management.

Ernest M. Freedman was appointed Executive Vice President and Chief Financial Officer of the Managing General Partner and AIMCO in November 2009. Mr. Freedman joined AIMCO in 2007 as Senior Vice President of Financial Planning and Analysis and has served as Senior Vice President of Finance since February 2009, responsible for financial planning, tax, accounting and related areas. Prior to joining AIMCO, from 2004 to 2007, Mr. Freedman served as chief financial officer of HEI Hotels and Resorts.

Lisa R. Cohn was appointed Executive Vice President, General Counsel and Secretary of the Managing General Partner and AIMCO in December 2007. From January 2004 to December 2007, Ms. Cohn served as Senior Vice President and Assistant General Counsel of AIMCO. Ms. Cohn joined AIMCO in July 2002 as Vice President and Assistant General Counsel. Prior to joining AIMCO, Ms. Cohn was in private practice with the law firm of Hogan and Hartson LLP.

~~Patti~~Paul K.Beldin ~~Fielding~~joined ~~was~~AIMCO in ~~appointed~~May ~~Executive~~2008 and has served as Senior Vice President -and ~~Securities~~Chief ~~and~~Accounting ~~Debt~~Officer of AIMCO and the Managing General Partner insince ~~February~~that ~~2004~~time. Prior ~~and~~to of joining AIMCO, inMr. ~~February~~Beldin ~~2003. Ms.~~served ~~Fielding~~as ~~was appointed~~controller ~~Treasurer~~and then as chief financial officer of America ~~AIMCO~~First ~~and~~Apartment ~~the~~Investors, ~~Managing~~Inc., ~~General~~a ~~Partner~~publicly intraded ~~January~~multifamily real ~~2005. Ms.~~estate ~~Fielding~~investment istrust, ~~responsible~~from ~~for~~May ~~debt~~2005 ~~financing~~to ~~and~~September 2007 when the ~~treasury~~company was ~~department~~acquired by Sentinel Real Estate Corporation. MsPrior to joining America First Apartment Investors, Inc., ~~Fielding~~Mr. ~~previously~~Beldin ~~served~~was asa ~~Senior~~senior ~~Vice~~manager ~~President~~at ~~- Securities~~Deloitte and Touche ~~Debt~~LLP, ofwhere ~~AIMCO~~he was employed from ~~January~~August ~~2000~~1996 to ~~February~~May ~~2003. Ms.~~2005, including two ~~Fielding~~years ~~joined~~as ~~AIMCO~~an inaudit ~~February~~manager ~~1997~~in asSEC aservices ~~Vice~~at ~~President~~Deloitte’s national office.

~~David~~Stephen RB. ~~Robertson~~Waters was appointed ~~President~~Senior ~~and~~Director ~~Chief~~of ~~Investment~~Partnership ~~Officer~~Accounting of AIMCO inand ~~February~~the ~~2009, and~~Managing onGeneral ~~March~~Partner 1,in June 2009,. Mr. heWaters ~~also~~has ~~became~~responsibility ~~Chief~~for partnership ~~Financial~~accounting ~~Officer~~with of AIMCO and serves as the principal financial officer of the Managing General Partner. Mr. ~~Robertson~~Waters joined AIMCO as ~~Executive~~a ~~Vice~~Director of ~~President~~Real Estate Accounting in ~~February~~September ~~2002~~1999 and ~~has~~was ~~served~~appointed asVice ~~Chief~~President ~~Investment~~of ~~Officer since~~the ~~March~~Managing ~~2007. In~~General ~~addition~~Partner toand ~~serving as~~ AIMCO’s ~~chief~~in ~~financial~~April ~~officer, Mr~~2004. ~~Robertson~~ Prior isto ~~responsible~~joining ~~for portfolio strategy~~AIMCO, ~~capital allocation,~~ ~~investments, joint ventures, asset management and transaction activities. Since February 1996,~~ Mr. ~~Robertson~~Waters ~~has~~was ~~served as Chairman of Robeks Corporation,~~ a ~~150-unit~~senior ~~privately~~manager ~~held~~at ~~chain~~Ernst of& ~~specialty~~Young ~~food stores that he founded~~LLP.

~~Paul~~The ~~Beldin~~Registrant ~~was~~is ~~appointed Senior~~not ~~Vice President and Chief Accounting Officer~~ aware of ~~AIMCO and~~ the ~~Managing General~~involvement ~~Partner~~ in ~~May~~any ~~2008. Mr.~~legal ~~Beldin~~proceedings ~~joined~~with ~~AIMCO~~respect ~~in May 2008. Prior~~ to that, Mr. Beldin served as controller and then as chief financial officer of America First Apartment Investors, Inc., a publicly traded multifamily real estate investment trust, from May 2005 to September 2007 when the ~~company~~directors ~~was acquired by Sentinel Real Estate Corporation. Prior to joining America First Apartment Investors, Inc., Mr. Beldin was a senior manager at Deloitte~~ and ~~Touche LLP, where he was employed from August 1996 to May 2005,~~ ~~including~~executive ~~two~~officers ~~years~~listed ~~as an audit manager~~ in ~~SEC~~this ~~services~~Item ~~at Deloitte’s national office~~10.

Stephen B. Waters was appointed Vice President of the Managing General Partner and AIMCO in April 2004. Mr. Waters previously served as a Director of Real Estate Accounting since joining AIMCO in September 1999. Mr. Waters has responsibility for partnership accounting with AIMCO and serves as the principal financial officer of the Managing General Partner.

One or more of the above persons are also director and/or officers of a general partner (or general partner of a general partner) of limited partnerships which either have a class of securities registered pursuant to Section 12(g) of the Securities Exchange Act of 1934, or are subject to the reporting requirements of Section 15(d) of such Act. Further, one or more of the above persons are also officers of Apartment Investment and Management Company and the general partner of AIMCO Properties, L.P., entities that have a class of securities registered pursuant to Section 12(g) of the Securities Exchange Act of 1934, or are subject to the reporting requirements of Section 15 (d) of such Act.

The board of directors of the Managing General Partner does not have a separate audit committee. As such, the board of directors of the Managing General Partner fulfills the functions of an audit committee. The board of directors has determined that Steven D. Cordes meets the requirement of an "audit committee financial expert".

The directors and officers of the Managing General Partner with authority over the Partnership are all employees of subsidiaries of AIMCO. AIMCO has adopted a code of ethics that applies to such directors and officers that is posted on AIMCO's website (www.AIMCO.com). AIMCO's website is not incorporated by reference to this filing.

Item 11. Executive Compensation

None of the directors and officers of the Managing General Partner received any remuneration from the Registrant during the year ended December 31, ~~2008~~2009.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Except as noted below, no person or entity was known by the Registrant to be the beneficial owner of more than 5% of the Limited Partnership Units (the “Units”) of the Registrant as of December 31, ~~2008~~2009.

Entity	Number of Units	Percentage

IPLP Acquisition I LLC ("IPLP LLC")
(an affiliate of AIMCO)	3,919	15.01%
AIMCO IPLP, L.P.
(an affiliate of AIMCO)	213	0.81%
AIMCO Properties, L.P.
(an affiliate of AIMCO)	9,587	36.72%

IPLP Acquisition I LLC and AIMCO IPLP, L.P. are indirectly ultimately owned by AIMCO. Their business address is 55 Beattie Place, Greenville, SC ~~29602~~29601.

AIMCO Properties, L.P. is indirectly ultimately controlled by AIMCO. Its business address is 4582 S. Ulster St. Parkway, Suite 1100, Denver, Colorado 80237.

No director or officer of FCMC owns any Units of the Partnership of record or beneficially.

Affiliates of the Managing General Partner charged the Partnership for reimbursement of accountable administrative expenses amounting to approximately $27,000 and $47,000 for ~~each of~~ the years ended December 31, ~~2008~~ 2009 and ~~2007~~2008, respectively, which is included in general and administrative expenses on the statements of operations included in “Item 8. Financial Statements and Supplementary Data”. In connection with the redevelopment project, an affiliate of the Managing General Partner isreceived ~~to receive~~ a redevelopment supervision fee of 4% of the actual redevelopment costs, or approximately $~~436~~440,000 based on ~~current estimated~~ redevelopment costs. The Partnership was charged ~~approximately~~ approximately $~~227~~25,000 and $~~161~~227,000 in redevelopment supervision fees during the years ended December 31, ~~2008~~2009 and ~~2007~~2008, respectively, which are included in investment property on the balance sheets included in “Item 8. ~~Financial~~ Financial Statements and Supplementary Data”. At December 31, 2008 ~~and 2007~~, approximately $21,000 ~~and $177,000, respectively~~ of these accountable administrative expenses ~~remain~~were unpaid and ~~are~~were included in due to affiliates on the balance sheets included in “Item 8. Financial Statements and Supplementary Data”. No such amounts were unpaid at December 31, 2009.

In accordance with the Partnership Agreement, AIMCO Properties, L.P., an affiliate of the Managing General Partner, advanced the Partnership approximately $6250,~~398,~~000 and $46,~~302~~398,000 to fund the redevelopment project, a rate lock deposit associated with the September 2008 refinancing ~~and operating expenses~~ at The Views at ~~Vinings~~ Vinings Mountain Apartments, real estate taxes, capital improvements and operating expenses during the years ended December 31, ~~2008~~2009 and ~~2007~~2008, respectively. Interest is charged at the prime rate plus 2% (5.25% at December 31, ~~2008~~2009). Interest expense amounted to approximately $~~447~~180,000 and $~~291~~447,000 for the years ended December 31, ~~2008~~2009 and ~~2007~~2008, respectively. During the years ended December 31, ~~2008~~2009 and ~~2007~~2008, the Partnership made payments on the outstanding advances and accrued interest of approximately $8245,~~620,~~000 and $368,620,000, from cash from operations and proceeds from the refinancing of the mortgage encumbering the property ~~and cash from operations~~, respectively. At December 31, ~~2008~~2009 and ~~2007~~2008, the amount of the outstanding advances and accrued interest was approximately $3,~~407~~592,000 and $53,~~182~~407,000, respectively, and is included in due to affiliates on the balance sheets included in “Item 8. Financial Statements and Supplementary Data”. The Partnership may receive additional advances of funds from AIMCO Properties, L.P. although AIMCO Properties, L.P. is not obligated to provide such advances. For more information on AIMCO Properties, L.P., including copies of its audited balance sheet, please see its reports filed with the Securities and Exchange Commission.

Neither of the Managing General Partner's directors is independent under the independence standards established for New York Stock Exchange listed companies as both directors are employed by the parent of the Managing General Partner.

Item 14. Principal Accounting Fees and Services

The Managing General Partner has reappointed Ernst & Young LLP as independent auditors to audit the financial statements of the Partnership for ~~2009~~2010. The aggregate fees billed for services rendered by Ernst & Young LLP for ~~2008~~2009 and ~~2007~~2008 are described below.

Audit Fees. Fees for audit services totaled approximately $4338,000 and $3543,000 for ~~2008~~2009 and ~~2007~~2008, respectively. Fees for audit services also include fees for the reviews of the Partnership’s Quarterly Reports on Form 10-Q.

Tax Fees. Fees for tax services totaled approximately $6,000 ~~and $7,000~~ for ~~2008~~both 2009 and ~~2007, respectively~~2008.

PART IV

Item 15. Exhibits, Financial Statement Schedules

(a) The following financial statements of the Partnership are included in Item 8:

Balance Sheets at December 31, ~~2008~~2009 and ~~2007~~2008.

Statements of Operations for the years ended December 31, ~~2008~~2009 and ~~2007~~2008.

Statements of Changes in Partners' Deficit for the years ended December 31, ~~2008~~2009 and ~~2007~~2008.

Statements of Cash Flows for the years ended December 31, ~~2008~~2009 and ~~2007~~2008.

Notes to Financial Statements.

Schedules are omitted for the reason that they are inapplicable or equivalent information has been included elsewhere herein.

(b) Exhibits:

See Exhibit Index.

The agreements included as exhibits to this Form 10-K contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit of the other parties to the applicable agreement and:

should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate;

have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement;

may apply standards of materiality in a way that is different from what may be viewed as material to an investor; and

were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments.

Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time. The Partnership acknowledges that, notwithstanding the inclusion of the foregoing cautionary statements, it is responsible for considering whether additional specific disclosures of material information regarding material contractual provisions are required to make the statements in this Form 10-K not misleading. Additional information about the Partnership may be found elsewhere in this Form 10-K and the Partnership’s other public filings, which are available without charge through the SEC’s website at http://www.sec.gov.

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.

FOX STRATEGIC HOUSING INCOME PARTNERS (a California Limited Partnership) By: FOX PARTNERS VIII Its General Partner By: Fox Capital Management Corporation Its Managing General Partner By: /s/Steven D. Cordes Steven D. Cordes Senior Vice President By: /s/Stephen B. Waters Stephen B. Waters ~~Vice~~Senior ~~President~~Director of Partnership Accounting Date: March 2329, ~~2009~~2010

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.

/s/Harry G. Alcock	Director and Executive	Date: March 23, 2009
/s/John Bezzant	Director and Senior	Date: March 29, 2010
Harry G. Alcock	Vice President
John Bezzant	Vice President
/s/Steven D. Cordes	Director and Senior	Date: March 2329, ~~2009~~2010
Steven D. Cordes	Vice President
/s/Stephen B. Waters	~~Vice~~Senior ~~President~~Director of Partnership	Date: March 2329, ~~2009~~2010
Stephen B. Waters	Accounting

FOX STRATEGIC HOUSING INCOME PARTNERS

EXHIBIT INDEX

EXHIBIT DESCRIPTION OF EXHIBIT

3.1 Agreement of Limited Partnership, incorporated by reference to Exhibit A to the Prospectus of the Partnership dated March 24, 1987, and thereafter supplemented, included in the Registrant's Registration Statement on Form S-11 (Reg. No. 33-8481).

3.2 Amendment to the Amended and Restated Limited Partnership Agreement incorporated by reference to the Partnership’s Annual Report on Form 10-KSB for the fiscal year ended December 31, 2006.

10.7 Promissory Note, dated September 11, 2008, between Fox Strategic Housing Income Partners, a California limited partnership, and Washington Mutual Bank, a federal association. (Incorporated by reference to the Partnership’s Current Report on Form 8-K dated September 11, 2008).

10.8 Deed of Secure Debt, Security Agreement and Assignment of Leases and Rents, dated September 11, 2008, between Fox Strategic Housing Income Partners, a California limited partnership, and Washington Mutual Bank, a federal association. (Incorporated by reference to the Partnership’s Current Report on Form 8-K dated September 11, 2008).

31.1 Certification of equivalent of Chief Executive Officer pursuant to Securities Exchange Act Rules 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2 Certification of equivalent of Chief Financial Officer pursuant to Securities Exchange Act Rules 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1 Certification of the equivalent of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Filing Compare · FOX STRATEGIC HOUSING INCOME PARTNERS