UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10K [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, ~~2010~~2011 or [ ] 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 0-14578 HCW PENSION REAL ESTATE FUND LIMITED PARTNERSHIP (Exact name of registrant as specified in its charter)

Massachusetts	04-2825863
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

5580 ~~Beattie~~International ~~Place~~Drive, P.O. Box 1089 Greenville, South Carolina 29602 (Address of principal executive offices) Registrant’s telephone number, including area code (864) 239-1000 Securities registered pursuant to Section 12(b) of the Act: None Securities registered pursuant to Section 12(g) of the Act: Units of Limited Partnership Interest (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 whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and 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 the 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 S

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 price of such partnership interests as of 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 Partnership’s ability to maintain current or meet projected occupancy, rental rates and property operating results and the effect of redevelopments. 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, including the pace of job growth and the level of unemployment; ~~energy costs;~~ the terms of governmental regulations that can 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 residents in such markets; insurance risk, including the cost of insurance; 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 other documents the Partnership files from time to time with the Securities and Exchange Commission.

PART I

Item 1. Business

HCW Pension Real Estate Fund Limited Partnership (the "Partnership" or "Registrant") is a publicly-held limited partnership organized on April 30, 1984, under the Uniform Limited Partnership Act of the Commonwealth of Massachusetts. The general partner of the Partnership is HCW General Partner Ltd., (the "General Partner"). The General Partner is a Texas limited partnership whose sole general partner is IH, Inc. (the "Managing General Partner"). The Managing General Partner is an indirect wholly-owned subsidiary of Apartment Investment and Management Company ("~~AIMCO~~Aimco"), which is a publicly traded real estate investment trust. The Partnership Agreement provides that the Partnership is to terminate on October 31, 2024 unless terminated prior to such date.

The Partnership is engaged in the business of operating and holding real estate properties for investment. From 1984 through 1986, during its acquisition phase, the Partnership acquired one existing apartment complex and one existing commercial property. At December 31, 2010, the Partnership continues to operate the apartment complex (see "Item 2. Property").

Commencing on August 17, 1984, the Partnership offered 25,000 Units of Limited Partnership interest (the "Units") at a purchase price of $1,000 per Unit pursuant to a Registration Statement filed with the Securities and Exchange Commission. The sale of the Units closed on March 14, 1986, with 15,698 Units sold at $1,000 each, resulting in gross proceeds of $15,698,000 to the Partnership. Since its initial offering, the Partnership has not received, nor are limited partners required to make, additional capital contributions.

The Partnership ~~has~~was ~~no employees.~~engaged ~~Management~~in the business of operating and ~~administrative~~holding ~~services~~real ~~are~~estate ~~provided~~properties byfor investment. From 1984 through 1986, during its acquisition phase, the ~~Managing General~~Partnership ~~Partner~~acquired one existing apartment complex and byone ~~agents~~existing ~~retained~~commercial byproperty. During the ~~Managing~~year ~~General~~ended ~~Partner.~~December ~~Property~~31, ~~management~~2011, ~~services~~the ~~are~~Partnership ~~performed~~sold ~~by an~~its ~~affiliate~~remaining ofproperty ~~the~~to ~~Managing~~a ~~General~~third ~~Partner~~party.

As of December 31, 2011, the Partnership adopted the liquidation basis of accounting, due to the sale of its remaining investment property, Lewis Park Apartments during December 2011. TheManaging General Partner estimates the liquidation process will be completed by December 31, 2012. Because the success in realization of assets and settlement of liabilities is based on the Managing General Partner’s best estimates, the liquidation period may be shorter than projected or it may be extended beyond the projected period.

The Partnership has no employees. Management and administrative services are provided by the Managing General Partner and by agents retained by the Managing General Partner. Property management services were performed by an affiliate of the Managing General Partner.

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 1A. Risk Factors

Not applicable.

Item 2. Property

On December 15, 2011, the Partnership sold Lewis Park Apartments to a third party for a gross sales price of $11,200,000. The ~~following~~net ~~table~~proceeds ~~sets~~realized ~~forth~~by the Partnership's ~~investment~~were inapproximately $10,117,000 after payment of closing costs of approximately $183,000 and payment of prepayment penalties of $900,000 by the purchaser. The Partnership used approximately $3,476,000 of the net proceeds to repay the mortgage encumbering the property:. The Partnership recognized a gain of approximately $8,602,000 as a result of the sale during the year ended December 31, 2011. In addition, the Partnership recognized a loss on extinguishment of debt of approximately $999,000 as a result of the write off of the unamortized balance of loan costs of approximately $38,000 and prepayment penalties of approximately $961,000, of which approximately $61,000 was paid by the Partnership and approximately $900,000 was paid by the purchaser. While the Partnership is not subject to Federal income tax, it is subject to tax related to its Illinois activities. During the year ended December 31, 2011, as a result of the sale of Lewis Park Apartments, the Partnership recognized current tax expense of approximately $6,000, which is reflected as a reduction of gain from sale of discontinued operations. The corresponding liability is included in other liabilities at December 31, 2011.

	Date of
Property	Purchase	Type of Ownership	Use
Lewis Park Apartments	11/86	Fee ownership, subject	Apartment
Carbondale, Illinois		to a first mortgage	269 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)
Lewis Park
Apartments	$13,354	$10,526	5-30 yrs	S/L	$ 4,750

See "Item 8. Financial Statements and Supplementary Data, Note A" 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 fixed rate loan encumbering the Partnership’s property.

	Principal				Principal
	Balance At	Stated			Balance
	December 31,	Interest	Period	Maturity	Due At
Property	2010	Rate	Amortized	Date	Maturity(1)
	(in thousands)				(in thousands)
Lewis Park Apartments
1st mortgage	$3,739	8.08%	20 yrs	09/20	$ --

(1) See "Item 8. Financial Statements and Supplementary Data – Note E – Mortgage Note Payable" for information with respect to the Partnership's ability to prepay this loan and other specific details about the loan.

Schedule of Rental Rates and Occupancy

Average annual rental rate and occupancy for 2010 and 2009 for the property:

	Average Annual		Average Annual
	Rental Rate		Occupancy
	(per unit)
Property	2010	2009	2010	2009
Lewis Park Apartments (1)	$8,273	$8,322	88%	68%

(1) The Managing General Partner attributes the increase in occupancy at Lewis Park Apartments to improvements to the appearance of the property and an improved marketing plan. The Managing General Partner implemented an aggressive marketing plan during 2009 in an effort to attract new tenants, primarily through offering additional amenities to the residents, including free internet, cable, water and trash removal. The Managing General Partner also implemented a resident referral program, increased advertising and held an open house to promote the property improvements to the public and help increase renewals for the 2010/2011 school years.

The real estate industry is highly competitive. The 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 its units for terms of one year or less. No residential 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.

Schedule of Real Estate Taxes and Rate

Real estate taxes and rate in 2010 for the property were:

	2010	2010
	Billing	Rate
	(in thousands)
Lewis Park Apartments (1)	$ 215	8.00%

(1) Tax billings are for the fiscal year ended December 31, 2009 paid during 2010.

Capital Improvements

~~The~~During the year ended December 31, 2011, the Partnership completed approximately $~~197~~177,000 of capital expenditures at Lewis Park Apartments ~~during the~~consisting ~~year~~primarily ~~ended~~of ~~December~~air ~~31,~~conditioning ~~2010~~upgrades, ~~consisting~~water ~~primarily~~heaters ofand appliance and floor covering replacements~~, swimming pool upgrades, and HVAC upgrades~~. These improvements were funded from operating cash flow ~~and advances from AIMCO Properties, L~~.~~P.,~~ ~~an affiliate of the Managing General Partner.~~ The Partnership ~~regularly~~ ~~evaluates~~sold ~~the~~Lewis ~~capital~~Park ~~improvement~~Apartments ~~needs~~to ofa ~~the~~third ~~property.~~party ~~While~~on ~~the Partnership~~December ~~has no material commitments for property improvements and replacements~~15, ~~certain routine capital expenditures are anticipated during~~ 2011. ~~Such capital expenditures will depend on the physical condition of the property as well as anticipated cash flow generated by the property.~~

Additional capital expenditures will be incurred only if cash is available from operations or advances from AIMCO Properties, L.P., although AIMCO Properties, L.P. is not obligated to provide such advances. To the extent that the capital improvements are completed, the Partnership’s distributable cash flow, if any, may be adversely affected at least in the short term.

Item 3. Legal Proceedings

~~As previously disclosed, AIMCO Properties, L~~None.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 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 were 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. During January 2011, the parties reached an agreement to settle the remaining “on-call claims” and the plaintiffs’ attorneys’ fees. The Partnership will not be required to pay any settlement amounts or plaintiffs’ attorneys’ fees as a result of this agreement. These settlements resolve the case in its entirety.

~~PART~~Item II4. Mine Safety Disclosures

Not applicable.

PART II

The Partnership, a publicly-held limited partnership, offered and sold 15,698 limited partnership units (the “Units”) aggregating $15,698,000. The Partnership currently has ~~773~~ 761 holders of record owning an aggregate of 15,~~693~~683 Units. Affiliates of the Managing General Partner owned 6,227 units or 39.6870% at December 31, ~~2010~~2011. No public trading market has developed for the Units, and it is not anticipated that such a market will develop in the future.

The Partnership ~~made~~distributed ~~no distributions to~~ the ~~partners~~following amounts during the years ended December 31, ~~2010~~2011 ~~or 2009. Future cash distributions will depend on the levels of net cash generated from operations, property sale~~ and~~/or~~ ~~refinancing. The Partnership's cash available for distribution is reviewed on a monthly basis. In light of the amounts accrued and payable to affiliates at December 31,~~ 2010, it(in ~~is unlikely that the Partnership will generate sufficient funds from operations~~thousands, ~~after~~except ~~capital improvement~~per ~~expenditures~~unit and repayment of amounts accrued and payable to affiliates, to permit distributions to its partners during 2011 or subsequent periods. See “Item 2. Property” for information related to anticipated capital expenditures at the Partnership’s property.data):

In addition to its indirect ownership of the general partner interest in the Partnership, AIMCO and its affiliates owned 6,227 Units in the Partnership representing 39.68% of the outstanding Units as of December 31, 2010. 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 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 Managing General Partner. Although the Managing General Partner owes fiduciary duties to the limited partners of the Partnership, the Managing General Partner also owes fiduciary duties to AIMCO as its sole stockholder. As a result, the duties of the Managing General Partner, as managing general partner, to the Partnership and its limited partners may come into conflict with the duties of the Managing General Partner to AIMCO as its sole stockholder.



	Year Ended	Per Limited	Year Ended	Per Limited
	December 31,	Partnership	December 31,	Partnership
	2011	Unit	2010	Unit

Sale (1)	$ 2,989	$ 190.47	$ --	$ --

(1) Proceeds from the December 2011 sale of Lewis Park Apartments.

Approximately $37,000 of the distribution payable at December 31, 2011 represents the estimated Illinois withholding taxes to be paid by the Partnership on behalf of certain limited partners in connection with the sale of Lewis Park Apartments.

The Partnership’s cash available for distribution will be reviewed on a quarterly basis. Future cash distributions will depend on the amount of cash remaining after fully liquidating the Partnership.

In addition to its indirect ownership of the general partner interest in the Partnership, Aimco and its affiliates owned 6,227 Units in the Partnership representing 39.70% of the outstanding Units as of December 31, 2011. A number of these Units were acquired pursuant to tender offers made by Aimco or its affiliates. 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 Managing General Partner. Although the Managing General Partner owes fiduciary duties to the limited partners of the Partnership, the Managing General Partner also owes fiduciary duties to Aimco as its sole stockholder. As a result, the duties of the Managing General Partner, as managing general partner, to the Partnership and its limited partners may come into conflict with the duties of the Managing General Partner to Aimco as its sole stockholder.

Item 6. Selected Financial Data

Not applicable.

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~~As of December 31, 2011, the Partnership ~~recognized~~adopted ~~net~~the ~~losses~~liquidation basis of ~~approximately~~ ~~$546~~accounting,~~000~~ ~~and~~due to the sale of its remaining investment property, Lewis Park Apartments during December 2011. Prior to adopting the liquidation basis of accounting, the Partnership’s net income was approximately $~~641~~6,900,000 for the ~~years~~year ended December 31, ~~2010~~2011 ~~and 2009,~~compared ~~respectively.~~to ~~The~~net ~~decrease~~loss inof ~~net~~approximately ~~loss~~$546,000 for the year ended December 31, 2010. ~~was~~The ~~due to an~~ increase in ~~total~~net ~~revenues,~~income ~~partially~~is ~~offset~~due byto athe ~~decrease~~gain ~~in the~~from ~~recognition~~sale of adiscontinued ~~casualty~~operations ~~gain~~in ~~and~~2011, partially offset by an increase in ~~total~~loss ~~expenses~~from discontinued operations.

~~Total~~On ~~revenues~~December ~~increased~~15, 2011, the Partnership sold Lewis Park Apartments to a third party for a gross sales price of $11,200,000. The net proceeds realized by the ~~year~~Partnership ~~ended December~~were 31approximately $10,117,000 ~~2010~~after ~~due~~payment toof ~~increases~~closing incosts ~~both~~of ~~rental~~approximately $183,000 and ~~other~~payment ~~income~~of prepayment penalties of $900,000 by the purchaser. ~~Rental income~~The ~~increased~~Partnership ~~due~~used approximately $3,476,000 of the net proceeds to anrepay ~~increase~~the inmortgage ~~occupancy,~~encumbering ~~partially~~the ~~offset~~property. byThe Partnership recognized a ~~decrease in~~gain of approximately $8,602,000 as a result of the ~~average~~sale ~~rental~~during ~~rate~~the atyear ~~Lewis~~ended ~~Park~~December ~~Apartments~~31, 2011. ~~Other~~In ~~income~~addition, ~~increased~~the ~~due to~~Partnership ~~the~~recognized ~~receipt~~a loss on extinguishment of debt of approximately $999,000 as a ~~non-recurring~~result ~~cable~~of ~~television~~the ~~reimbursement~~write ~~during~~off ~~2010~~of ~~and increases~~the inunamortized ~~cleaning~~balance of loan costs of approximately $38,000 and ~~damage~~prepayment ~~fees~~penalties of approximately $961,000, ~~pet~~of ~~related~~which ~~fees~~approximately $61,000 ~~lease~~was ~~cancellation~~paid ~~fees~~ by the Partnership and ~~laundry~~approximately $900,000 was paid by the purchaser. While the Partnership is not subject to Federal income tax, it is subject to tax related to its Illinois activities. During the year ended December 31, 2011, as a result of the sale of Lewis Park Apartments, the Partnership recognized current tax expense of approximately $6,000, which is reflected as a reduction of gain from sale of discontinued operations. The corresponding liability is included in other liabilities at December 31, 2011.

InExcluding ~~May~~the ~~2009,~~impact ~~Lewis Park Apartments suffered storm damage to several~~ of ~~its~~the ~~apartment~~gain ~~buildings.~~from ~~The damages~~sale ~~were approximately $527,000, including clean up costs~~ of ~~approximately $49,000.~~discontinued ~~The~~operations ~~clean up costs were included~~ in ~~operating~~2011, ~~expenses for~~ the ~~year ended~~Partnership’s ~~December~~loss ~~31,~~from ~~2009.~~discontinued ~~Insurance~~operations ~~proceeds~~was of approximately $~~469~~1,~~000 were received during the year ended December 31~~702, ~~2009, which included approximately $49,~~000 ~~in proceeds for clean up costs,~~ and ~~were held by the mortgage lender until the repairs and clean up were completed. The Partnership recognized a casualty gain of approximately~~ $~~398~~546,000 ~~during~~for the ~~year~~years ended December 31, ~~2009, as~~2011 aand ~~result of the receipt of insurance proceeds of approximately $420~~2010,~~000,~~ ~~net of~~respectively. ~~the~~The ~~write~~increase ~~off~~in ofloss ~~undepreciated~~from ~~damaged~~discontinued ~~assets~~operations ofis ~~approximately~~due ~~$22,000. During~~to ~~the~~a ~~year~~decrease ~~ended~~in ~~December~~total 31revenues, ~~2010, the Partnership recognized~~ an ~~additional~~ ~~casualty~~increase ~~gain~~in oftotal ~~approximately $47~~expenses,~~000~~ asand ~~a result of~~ the ~~receipt~~recognition of ~~additional~~ ~~insurance~~a ~~proceeds~~casualty ofgain ~~approximately~~in ~~$48,000, net of the write-off of additional undepreciated assets of approximately $1,000~~2010. ~~No additional insurance proceeds are anticipated to be received.~~

~~Total~~The ~~expenses~~decrease ~~increased~~in ~~for the~~total ~~year~~revenues ~~ended~~is ~~December 31, 2010~~ due to ~~increases~~decreases in ~~operating, general~~both ~~and administrative,~~rental ~~depreciation~~income and ~~interest~~other ~~expenses,~~income. ~~partially~~The ~~offset by a~~ decrease in ~~property~~rental ~~tax~~income ~~expense.~~is ~~Operating expenses increased~~ due to ~~increases in~~a ~~salaries~~decrease ~~and~~in ~~related benefits, water and sewer charges resulting from increased occupancy, real estate tax consulting services associated with appealing~~ the ~~property’s~~average ~~2009~~rental ~~real~~rate ~~estate taxes, the addition of WiFi service at the property, increases in hazard insurance premiums~~ and ~~management fee expense due to~~ an increase in ~~revenues,~~bad ~~upon~~debt ~~which the fee is based. Depreciation~~ expense ~~increased due to property improvements and replacements being placed into service during the past twelve months~~, ~~which~~partially ~~are~~offset ~~now~~by ~~being depreciated. Interest expense increased due to~~ an increase in ~~interest~~occupancy onat ~~advances~~Lewis ~~received from~~Park ~~AIMCO Properties, L~~Apartments. ~~P.,~~The andecrease ~~affiliate of the Managing General Partner, during the year as a result of an increase~~ in ~~the~~other ~~average~~income ~~outstanding~~is ~~advance balance. Property tax expense decreased~~ primarily due to ~~a decrease in~~ the ~~assessed~~ ~~value~~receipt of ~~the~~a ~~property. During~~non-recurring ~~the~~cable ~~year~~television ~~ended~~reimbursement ~~December~~during ~~31,~~ 2010, ~~the~~ ~~Partnership~~partially ~~successfully~~offset ~~appealed~~by ~~the~~increases ~~assessed value of Lewis Park Apartments resulting~~ in alease ~~decrease~~cancellation ~~of approximately $90~~fees,~~000~~ inlate ~~property~~fees ~~tax expense~~and ~~for~~cleaning ~~the 2009 tax year paid in 2010,~~ and adamage ~~reduction in the accrual for 2010 taxes to be paid in 2011~~fees.

~~General~~In ~~and~~May ~~administrative expense~~2009, ~~increased~~Lewis ~~primarily~~Park asApartments asuffered ~~result~~storm ofdamage anto ~~increase~~several inof ~~asset~~its ~~management fees~~apartment buildings. The ~~asset~~damages ~~management~~were ~~fee~~approximately is$527,000, ~~calculated~~including ~~based~~clean onup acosts ~~percentage~~ of ~~the tangible~~approximately ~~asset~~$49,000. ~~value~~The ofclean ~~the~~up ~~Partnership~~costs aswere ~~defined~~included in operating expenses for the ~~Partnership~~year ~~Agreement~~ended December 31, 2009. ~~The~~ ~~percentage~~Insurance asproceeds ~~stipulated~~of inapproximately ~~the~~$469,000 ~~Partnership~~were ~~Agreement~~received ~~was~~during ~~0.50%~~the ~~for~~year ~~both 2010~~ended ~~and~~December 31, 2009., ~~Also~~which included approximately $49,000 in ~~general~~proceeds for clean up costs and ~~administrative~~were ~~expenses~~held ~~for~~by the ~~years~~ mortgage lender until the repairs and clean up were completed. The Partnership recognized a casualty gain of approximately $398,000 during the year ended December 31, ~~2010~~2009, ~~and~~as ~~2009~~a ~~are~~result ~~reimbursements~~of tothe receipt of insurance proceeds of approximately $420,000, net of the ~~Managing~~write ~~General~~off ~~Partner~~of asundepreciated ~~allowed~~damaged ~~under~~assets of approximately $22,000. During the year ended December 31, 2010, the Partnership ~~Agreement~~ recognized an additional casualty gain of approximately $47,000 ~~costs~~as ~~associated~~a ~~with~~result of the ~~quarterly~~receipt ~~and~~of ~~annual~~additional ~~communications~~insurance ~~with investors~~proceeds ~~and~~of ~~regulatory~~approximately ~~agencies~~$48,000 ~~and~~net of the ~~annual~~write-off ~~audit~~of ~~required~~additional byundepreciated ~~the Partnership~~assets ~~Agreement~~of approximately $1,000. No additional insurance proceeds are anticipated to be received.

The increase in total expenses is primarily due to increases in operating and property tax expenses and the recognition of a loss on extinguishment of debt in 2011, partially offset by a decrease in depreciation expense. General and administrative and interest expenses remained relatively constant for the comparable periods. The increase in operating expenses is due to increases in salaries and related benefits, security services, contract painting, cleaning costs and hazard insurance premiums, partially offset by decreases in utility costs and cable television expenses. Property tax expense increased due to a reduction in the accrual during the year ended December 31, 2010 for 2009 taxes that were paid in 2010 as the Partnership successfully appealed the assessed value of Lewis Park Apartments. The increase in property tax expense is partially offset by the receipt of a refund during the first quarter of 2011 as a result of the successful appeal of the 2008 property taxes. Depreciation expense decreased due to the sale of Lewis Park Apartments on December 15, 2011, as discussed above.

General and administrative expenses remained relatively constant as an increase in expense due to the reversal of a deferred tax asset as a result of the sale of Lewis Park Apartments on December 15, 2011 was partially offset by a decrease in asset management fees. The asset management fee is calculated quarterly based on a percentage of the tangible asset value of the Partnership as defined in the Partnership Agreement. The percentage as stipulated in the Partnership Agreement was 0.50% for both 2011 and 2010. Also included in general and administrative expenses for the years ended December 31, 2011 and 2010 are management reimbursements to the Managing General Partner as allowed under the Partnership Agreement, and costs associated with the quarterly and annual communications with investors and regulatory agencies and the annual audit required by the Partnership Agreement.

Liquidity and Capital Resources

AtThe ~~December 31, 2010, the~~ Partnership ~~had~~expects ~~cash and cash equivalents of approximately $79,000, compared~~ to ~~approximately~~ ~~$169,000~~liquidate atduring ~~December~~2012 ~~31, 2009. Cash and cash equivalents decreased approximately $90,000 from December 31, 2009~~ due to ~~approximately~~the ~~$327,000~~sale ~~and $26,000~~ of ~~cash~~its ~~used~~remaining ininvestment ~~investing~~property ~~and~~(see ~~financing~~“Note ~~activities,~~A ~~respectively, partially~~– ~~offset~~Basis ~~by approximately $263,000~~ of ~~cash~~Presentation” ~~provided~~to bythe ~~operating activities.~~financial ~~Cash~~statements ~~used~~included in ~~investing~~“Item ~~activities~~8. ~~consisted~~Financial ofStatements ~~property improvements~~ and ~~replacements,~~Supplementary ~~partially offset by the receipt of insurance proceeds~~Data”). Cash used in financing activities consisted of principal payments made on the mortgage encumbering Lewis Park Apartments, partially offset by advances received from an affiliate of the Managing General Partner.

InAt ~~accordance~~December ~~with the Partnership Agreement~~31, ~~AIMCO Properties~~2011, ~~L.P.,~~the anPartnership ~~affiliate~~had ofcash ~~the~~and ~~Managing General~~cash ~~Partner~~equivalents ~~advanced~~of ~~the Partnership~~ approximately $~~216~~419,000 ~~during~~compared ~~the~~to ~~year ended~~approximately ~~December 31~~$79,000 ~~2010 to assist with capital expenditures and operating expenses~~ at ~~Lewis Park Apartments. During the year ended~~ December 31, ~~2009,~~2010. ~~the Managing~~Cash ~~General~~and ~~Partner~~cash ~~advanced~~equivalents ~~the~~increased ~~Partnership~~ approximately $~~579~~340,000 due to ~~assist~~ ~~with~~approximately ~~operating expenses~~$9, ~~real estate taxes and capital expenditures at Lewis Park Apartments. At December 31~~940,000 ~~2010~~of ~~and~~cash ~~2009,~~provided ~~the~~by ~~total~~investing ~~advances and accrued interest due to AIMCO Properties~~activities, ~~L.P.~~partially ~~was~~offset by approximately $28,~~472~~798,000 and $2802,~~026,~~000, ~~respectively.~~of ~~The~~cash ~~interest~~used ~~rates~~in onfinancing ~~the~~and ~~outstanding~~operating ~~advances made~~activities, torespectively. ~~the~~Cash ~~Partnership~~provided ~~are~~by ~~based~~investing onactivities ~~the~~consisted ~~prime~~of ~~rate~~net ~~plus~~proceeds afrom ~~market~~the ~~rate adjustment~~sale ~~for~~of ~~similar~~Lewis ~~type~~Park ~~loans.~~Apartments, ~~Affiliates~~partially ofoffset ~~the~~by ~~Managing~~property ~~General~~improvements ~~Partner review~~and ~~the~~replacements. ~~market~~Cash ~~rate~~used ~~adjustment~~in ~~quarterly.~~financing ~~The~~activities ~~interest~~consisted ~~rates~~of onrepayment ~~outstanding advances~~of atthe ~~December~~mortgage ~~31,~~encumbering ~~2010~~Lewis ~~ranged~~Park ~~from~~Apartments, ~~9.44%~~distributions to ~~18.56%. Interest expense was approximately $230~~partners,~~000~~ ~~and~~prepayment ~~$157,000~~penalty ~~for~~paid ~~the years ended December 31, 2010~~ and ~~2009,~~repayment ~~respectively.~~of ~~The Partnership may receive additional~~ advances ofreceived ~~funds~~ from ~~AIMCO~~an ~~Properties,~~affiliate ~~L.P.~~of ~~although~~the ~~AIMCO~~Managing ~~Properties~~General Partner, ~~L.P.~~partially isoffset ~~not~~by ~~obligated to provide such~~ advances~~. For~~ ~~more~~received ~~information~~from onan ~~AIMCO~~affiliate ~~Properties, L.P., including copies~~ of ~~its audited balance sheets, please see its reports filed with~~ the ~~Securities~~Managing ~~and~~General ~~Exchange Commission~~Partner.

~~The~~In ~~sufficiency~~accordance ofwith ~~existing liquid~~the ~~assets~~Partnership toAgreement, ~~meet~~AIMCO ~~future~~Properties, ~~liquidity~~L.P., ~~and~~an ~~capital~~affiliate ~~expenditure~~of ~~requirements~~the ~~is directly~~Managing ~~related~~General toPartner advanced the ~~level~~Partnership ofapproximately ~~capital~~$220,000 ~~expenditures~~and ~~required~~$216,000 atduring the ~~property to~~years ~~adequately~~ended ~~maintain~~December ~~the~~31, ~~physical~~2011 ~~assets~~ and ~~other~~2010, ~~operating~~respectively, ~~needs of the Partnership and~~ to ~~comply~~assist with ~~Federal,~~real ~~state~~estate taxes, ~~and~~capital ~~local~~expenditures ~~legal~~ and ~~regulatory requirements.~~operating ~~The~~expenses ~~Managing~~at ~~General~~Lewis ~~Partner~~Park ~~monitors~~Apartments. ~~developments~~At inDecember 31, 2010, the ~~area~~total ~~of legal~~advances and ~~regulatory~~accrued ~~compliance.~~interest ~~The~~due ~~Partnership~~to ~~regularly~~AIMCO ~~evaluates~~Properties, ~~the~~L.P. ~~capital improvement~~was ~~needs~~approximately of$2,472,000. ~~its~~During ~~investment~~the ~~property.~~year ~~While~~ended December 31, 2011, the Partnership ~~has~~repaid ~~no material~~the ~~commitments~~outstanding ~~for~~advances ~~property~~and ~~improvements~~accrued ~~and~~interest ~~replacements~~of approximately $2,949,000. ~~certain~~There ~~routine capital~~were ~~expenditures~~no ~~are~~payments ~~anticipated~~made during ~~2011.~~the ~~Such~~year ~~capital~~ended ~~expenditures~~December ~~will depend~~31, on2010. ~~the~~There ~~physical~~were ~~condition~~no ofoutstanding ~~the~~advances ~~property~~or asassociated ~~well~~accrued asinterest ~~anticipated~~at ~~cash flow~~December ~~generated~~31, ~~by the property~~2011. ~~Capital~~The ~~expenditures~~interest ~~will~~rates becharged ~~incurred~~on ~~only~~the ~~if cash~~outstanding isadvances ~~available~~made ~~from~~to ~~operations~~the orPartnership ~~advances~~are ~~from~~based ~~AIMCO~~on ~~Properties,~~the ~~L.P., although~~prime ~~AIMCO~~rate ~~Properties,~~plus ~~L.P.~~a ismarket ~~not~~rate ~~obligated~~adjustment tofor ~~provide~~similar ~~such~~type ~~advances~~loans. To Affiliates of the ~~extent~~Managing ~~that~~General Partner review the ~~capital~~market ~~improvements~~rate ~~are~~adjustment ~~completed,~~quarterly. ~~the~~Interest ~~Partnership’s distributable~~expense ~~cash~~was ~~flow~~approximately $257,000 ifand ~~any~~$230,000 ~~may~~for bethe ~~adversely~~years ~~affected~~ended atDecember ~~least~~31, in2011 ~~the~~and ~~short term~~2010, respectively.

~~The~~As ~~Partnership's~~a ~~assets~~result ~~are thought~~of the decision to beliquidate ~~generally~~the ~~sufficient~~Partnership, the Partnership changed its basis of accounting for ~~any~~its ~~short-term~~financial ~~needs~~statements ~~(exclusive~~at December 31, 2011 to the liquidation basis of ~~capital~~ ~~improvements~~accounting. Consequently, assets have been valued at estimated net realizable value and ~~repayment~~liabilities ofare presented at their estimated settlement amounts, ~~accrued~~including ~~and~~estimated ~~payable~~costs toassociated ~~affiliates)~~ with carrying out the liquidation of the Partnership. The ~~mortgage~~valuation ~~indebtedness~~of ~~encumbering~~assets ~~Lewis~~and ~~Park~~liabilities ~~Apartments of~~necessarily ~~approximately~~requires ~~$3,739,000~~many isestimates ~~amortized~~and ~~over~~assumptions 20and ~~years~~there ~~with~~are asubstantial ~~maturity~~uncertainties ~~date~~in carrying out the liquidation. The actual realization of ~~September~~ 1,assets ~~2020,~~and atsettlement ~~which~~of ~~time~~liabilities ~~the~~could ~~loan~~be higher or lower than amounts indicated and is ~~scheduled~~based toupon beestimates ~~fully amortized~~of the Managing General Partner as of the date of the financial statements.

~~The~~In ~~Partnership~~accordance ~~made~~with ~~no distributions to~~ the ~~partners~~liquidation ~~during~~basis ~~the~~of ~~years~~accounting, ~~ended~~at December 31, ~~2010~~2011, orassets ~~2009. Future~~were ~~cash~~adjusted ~~distributions~~to ~~will~~their ~~depend~~estimated onnet ~~the~~realizable ~~levels~~value ofand ~~net~~liabilities ~~cash~~were ~~generated~~adjusted ~~from operations,~~to ~~property~~their ~~sale~~estimated ~~and/or~~settlement ~~refinancing~~amount. The ~~Partnership's~~net ~~cash~~adjustment ~~available for~~required ~~distribution~~to isconvert ~~reviewed~~to onthe aliquidation ~~monthly~~ basis. ~~In light~~ of ~~the~~accounting ~~amounts~~was ~~accrued and~~a ~~payable~~decrease toin ~~affiliates~~net atassets ~~December~~of ~~31,~~approximately ~~2010~~$60,000, itwhich is ~~unlikely~~included ~~that~~in the ~~Partnership~~ ~~will~~Statements ~~generate sufficient funds from operations, after capital improvement expenditures and repayment~~ of ~~amounts~~Changes ~~accrued~~in ~~and~~Partners’ ~~payable~~Capital/Net ~~to affiliates,~~Assets toin ~~permit distributions to its partners during 2011 or subsequent periods~~Liquidation.

The Partnership distributed the following amounts during the years ended December 31, 2011 and 2010 (in thousands, except per unit data):



	Year Ended	Per Limited	Year Ended	Per Limited
	December 31,	Partnership	December 31,	Partnership
	2011	Unit	2010	Unit

Sale (1)	$ 2,989	$ 190.47	$ --	$ --

(1)Proceeds from the December 2011 sale of Lewis Park Apartments.

For 2011, approximately $37,000 of the distribution payable represents the estimated Illinois withholding taxes to be paid by the Partnership on behalf of certain limited partners in connection with the sale of Lewis Park Apartments.

Critical Accounting Policies and Estimates

A summary of the Partnership’s significant accounting policies is included in “Note AB – 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 iswas recorded at cost, less accumulated depreciation, unless the carrying amount of the asset iswas not recoverable. If events or circumstances ~~indicate~~indicated that the carrying amount of the property ~~may~~would not be recoverable, the Partnership ~~will~~made ~~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~~exceeded the estimated aggregate undiscounted future cash flows, the Partnership would recognize an impairment loss to the extent the carrying amount ~~exceeds~~exceeded the estimated fair value of the property.

Real property investment is subject to varying degrees of risk. Several factors may have adversely ~~affect~~ affected the economic performance and value of the Partnership’s investment property. These factors ~~include~~included, but ~~are~~were 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 have adversely ~~affect~~affected 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 behave been offset by increased rents; changes in tax laws and housing laws, including the enactment of rent control laws or other 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~~have caused an impairment of the Partnership’s asset.

Revenue Recognition

The Partnership generally ~~leases~~ leased apartment units for twelve-month terms or less. The Partnership ~~will~~ ~~offer~~offered 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 was recognized on a straight-line basis over the term of the lease. The Partnership ~~evaluates~~evaluated all accounts receivable from residents and ~~establishes~~established 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.

Assets Held for Sale

The Partnership classifies long-lived assets as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the asset; the asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; an active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated; the sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one year; the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Depreciation is not recorded during the period in which the long-lived asset is classified as held for sale. When the asset is designated as held for sale, the related results of operations are presented as discontinued operations.

Item 87A. ~~Financial~~Quantitative ~~Statements~~ and ~~Supplementary~~Qualitative ~~Data~~Disclosures About Market Risk

~~HCW~~Not ~~PENSION REAL ESTATE FUND LIMITED PARTNERSHIP~~applicable.

~~LIST~~Item OF8. Financial ~~FINANCIAL STATEMENTS~~Statements and Supplementary Data

~~Report~~HCW ofPENSION ~~Independent Registered~~REAL ~~Public~~ESTATE ~~Accounting~~FUND ~~Firm~~LIMITED PARTNERSHIP

~~Balance~~LIST ~~Sheets~~OF -FINANCIAL ~~December 31, 2010 and 2009~~STATEMENTS

~~Statements~~ Report of ~~Operations~~Independent -Registered ~~Years~~Public ~~ended December~~Accounting ~~31, 2010 and 2009~~Firm

~~Statements~~ Statement of ~~Changes~~Net Assets in ~~Partners'~~ ~~Deficit~~Liquidation - ~~Years~~December ~~ended~~31, 2011.

Balance Sheet – December 31, 2010 ~~and 2009~~.

Statements of ~~Cash~~Discontinued ~~Flows~~Operations - Years ended December 31, ~~2010~~2011 and ~~2009~~2010.

~~Notes~~Statements toof ~~Financial Statements~~Changes in Partners' Capital/Net Assets in Liquidation - Years ended December 31, 2011 and 2010.

~~Report~~Statements of ~~Independent Registered~~Cash ~~Public~~Flows ~~Accounting~~- ~~Firm~~Years ended December 31, 2011 and 2010.

~~The~~ Notes ~~Partners~~to Financial Statements.

~~HCW~~Report ~~Pension~~of ~~Real~~Independent ~~Estate~~Registered ~~Fund Limited~~Public ~~Partnership~~Accounting Firm

WeThe have audited the accompanying balance sheets of HCW Pension Real Estate Fund Limited Partnership as of December 31, 2010 and 2009, 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, 2010. 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.Partners

WeHCW ~~conducted~~Pension ~~our~~Real ~~audits~~Estate ~~in accordance~~Fund ~~with~~Limited 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 control 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.

InWe ~~our~~have ~~opinion,~~audited the ~~financial~~ ~~statements~~statement ~~referred~~of tonet ~~above~~assets ~~present fairly,~~ in ~~all~~liquidation ~~material respects, the financial position~~ of HCW Pension Real Estate Fund Limited Partnership at as of December 31, ~~2010~~2011, ~~and~~the ~~2009~~balance sheet as of December 31, 2010, and the ~~results~~related statements of ~~its~~discontinued operations, ~~and~~changes ~~its~~in partners’ capital/net assets in liquidation, and cash flows for each of the two years in the period ended December 31, ~~2010,~~2011. inThese ~~conformity with~~financial Ustatements are the responsibility of the Partnership’s management.S. ~~generally~~Our ~~accepted~~responsibility ~~accounting~~is ~~principles~~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~~/Ernst &~~ ~~Young~~internal ~~LLP~~control over financial reporting. Our audits included consideration of internal control 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.

~~Greenville~~As discussed in Note A to the financial statements, ~~South~~on ~~Carolina~~December 31, 2011 the Managing General Partner of HCW Pension Real Estate Fund Limited Partnership decided to liquidate the Partnership. As a result, the Partnership changed its basis of accounting as of December 31, 2011 to a liquidation basis.

~~March~~In 28our opinion, the financial statements referred to above present fairly, in all material respects, the net assets in liquidation of HCW Pension Real Estate Fund Limited Partnership as of December 31, 2011, the financial position at December 31, 2010, and the results of its discontinued operations and its cash flows for each of the two years in the period ended December 31, 2011, in conformity with U.S. generally accepted accounting principles applied on the bases described in the preceding paragraph.

~~HCW~~/s/Ernst ~~PENSION~~& ~~REAL~~Young ~~ESTATE FUND LIMITED PARTNERSHIP~~LLP

~~BALANCE SHEETS~~Greenville, South Carolina

~~(in thousands~~March 20, ~~except unit data)~~2012

	December 31,
	2010	2009
Assets
Cash and cash equivalents	$ 79	$ 169
Receivables and deposits	122	108
Other assets	120	107
Investment property (Notes D and E):
Land	621	621
Buildings and related personal property	12,733	12,544
	13,354	13,165
Less accumulated depreciation	(10,526)	(9,755)
	2,828	3,410
	$ 3,149	$ 3,794
Liabilities and Partners' Deficit
Liabilities
Accounts payable	$ 45	$ 238
Tenant security deposit liabilities	113	105
Accrued property taxes	226	305
Other liabilities	135	140
Due to affiliates (Note C)	2,518	2,106
Mortgage note payable (Note E)	3,739	3,981
	6,776	6,875
Partners' Deficit
General partner	(207)	(196)
Limited partners	(3,420)	(2,885)
	(3,627)	(3,081)
	$ 3,149	$ 3,794

HCW PENSION REAL ESTATE FUND LIMITED PARTNERSHIP

~~See Accompanying~~STATEMENT ~~Notes~~OF toNET ~~Financial~~ASSETS ~~Statements~~IN LIQUIDATION

~~HCW~~(Liquidation ~~PENSION REAL ESTATE FUND LIMITED PARTNERSHIP~~Basis)

~~STATEMENTS~~(In ~~OF OPERATIONS~~thousands)

~~(in thousands~~December 31, ~~except per unit data)~~2011

	Years Ended December 31,
Assets
	2010	2009
Cash and cash equivalents	$ 419
Revenues:
Due from affiliates	19
Rental income	$ 1,961	$ 1,506
Receivables	21
Other income	261	176
Total assets	459
Total revenues	2,222	1,682
Liabilities
Expenses:
Accounts payable	75
Operating	1,213	1,124
Other liabilities	63
General and administrative	141	105
Distribution payable	37
Depreciation	778	721
Estimated costs to liquidate	60
Property taxes	137	275
Total liabilities	235
Interest	546	496
Net assets in liquidation	$ 224
Total expenses	2,815	2,721
Casualty gain (Note F)	47	398
Net loss (Note B)	$ (546)	$ (641)
Net loss allocated to general partner (2%)	$ (11)	$ (13)
Net loss allocated to limited partners (98%)	(535)	(628)
	$ (546)	$ (641)
Net loss per limited partnership unit	$(34.09)	$(40.02)

See Accompanying Notes to Financial Statements

HCW PENSION REAL ESTATE FUND LIMITED PARTNERSHIP

~~STATEMENTS~~BALANCE ~~OF CHANGES IN PARTNERS' DEFICIT~~ SHEET

(~~in thousands,~~In ~~except unit data~~thousands)

	Limited
	Partnership	General	Limited
	Units	Partner	Partners	Total
Original capital contributions	15,698	$ --	$15,698	$15,698
Partners' deficit at
December 31, 2008	15,693	$ (183)	$(2,257)	$(2,440)
Net loss for the year ended
December 31, 2009	--	(13)	(628)	(641)
Partners' deficit at
December 31, 2009	15,693	(196)	(2,885)	(3,081)
Net loss for the year ended
December 31, 2010	--	(11)	(535)	(546)
Partners’ deficit at
December 31, 2010	15,693	$ (207)	$(3,420)	$(3,627)

December 31, 2010

See Accompanying Notes to Financial Statements

Assets Held for Sale:
Cash and cash equivalents	$ 79
Receivables and deposits	122
Other assets	120
Investment property:
Land	621
Buildings and related personal property	12,733
Total investment property	13,354
Less accumulated depreciation	(10,526)
Investment property, net	2,828
Total assets	$ 3,149

Liabilities and Partners' Deficit
Liabilities Related to Assets Held for Sale:
Accounts payable	$ 45
Tenant security deposit liabilities	113
Accrued property taxes	226
Other liabilities	135
Due to affiliates	2,518
Mortgage note payable	3,739
Total liabilities	6,776

Partners' Deficit
General partner	(207)
Limited partners	(3,420)
Total partners’ deficit	(3,627)
Total liabilities and partners’ deficit	$ 3,149

~~HCW~~See ~~PENSION~~Accompanying ~~REAL~~Notes ~~ESTATE~~to ~~FUND LIMITED~~Financial ~~PARTNERSHIP~~Statements

~~STATEMENTS~~HCW OFPENSION ~~CASH FLOWS~~REAL ESTATE FUND LIMITED PARTNERSHIP

~~(in thousands)~~STATEMENTS OF DISCONTINUED OPERATIONS

	Years Ended December 31,
	2010	2009
Cash flows from operating activities:
Net loss	$ (546)	$ (641)
Adjustments to reconcile net loss to net cash provided by
(used in) operating activities:
Depreciation	778	721
Amortization of loan costs	4	4
Casualty gain	(47)	(398)
Change in accounts:
Receivables and deposits	(14)	(8)
Other assets	(17)	(6)
Accounts payable	(15)	45
Tenant security deposit liabilities	8	34
Accrued property taxes	(79)	12
Other liabilities	(5)	16
Due to affiliates	196	204
Net cash provided by (used in) operating activities	263	(17)
Cash flows from investing activities:
Property improvements and replacements	(375)	(797)
Insurance proceeds received	48	420
Net cash used in investing activities	(327)	(377)
Cash flows from financing activities:
Payments on mortgage note payable	(242)	(224)
Advances from affiliates	216	579
Net cash (used in) provided by financing activities	(26)	355
Net decrease in cash and cash equivalents	(90)	(39)
Cash and cash equivalents at beginning of year	169	208
Cash and cash equivalents at end of year	$ 79	$ 169
Supplemental disclosure of cash flow information:
Cash paid for interest	$ 313	$ 336
Supplemental disclosure of non-cash activity:
Property improvements and replacements included in
accounts payable	$ --	$ 178

(In thousands, except per unit data)

See Accompanying Notes to Financial Statements

	Years Ended December 31,
	2011	2010

Income from continuing operations	$ --	$ --
Income from discontinued operations:
Revenues:
Rental income	1,918	1,961
Other income	236	261
Total revenues	2,154	2,222

Expenses:
Operating	1,310	1,213
General and administrative	148	141
Depreciation	634	778
Property taxes	225	137
Interest	540	546
Loss on extinguishment of debt	999	--
Total expenses	3,856	2,815

Casualty gain	--	47
Loss from discontinued operations	(1,702)	(546)
Gain from sale of discontinued operations	8,602	--

Net income (loss)	$ 6,900	$ (546)

Net income (loss) allocated to general partner	$ 207	$ (11)
Net income (loss) allocated to limited partners	$ 6,693	$ (535)

Loss from discontinued operations per limited
partnership unit	$(43.90)	$(34.09)
Gain from sale of discontinued operations per limited
partnership unit	470.40	--

Net income (loss) per limited partnership unit	$426.50	$(34.09)

Distributions per limited partnership unit	$190.47	$ --

~~HCW~~See ~~PENSION~~Accompanying ~~REAL~~Notes ~~ESTATE~~to ~~FUND~~Financial ~~LIMITED PARTNERSHIP~~Statements

~~NOTES~~HCW TOPENSION ~~FINANCIAL~~REAL ~~STATEMENTS~~ESTATE FUND LIMITED PARTNERSHIP

~~December 31,~~STATEMENTS ~~2010~~OF CHANGES IN PARTNERS' CAPITAL/NET ASSETS IN LIQUIDATION

~~Note~~(In ~~A - Organization and Summary of Significant Accounting Policies~~thousands)

Organization: HCW Pension Real Estate Fund Limited Partnership (the "Partnership") is a limited partnership organized pursuant to the laws of the Commonwealth of Massachusetts on April 30, 1984. On August 17, 1984, a registration statement was declared effective by the Securities and Exchange Commission. The Partnership commenced operations on June 5, 1985. The Partnership operates an apartment property located in Illinois. The Partnership Agreement provides that the Partnership is to terminate on October 31, 2024 unless terminated prior to such date.


	General	Limited
	Partner	Partners	Total

Partners' deficit at
December 31, 2009	$ (196)	$(2,885)	$(3,081)

Net loss for the year ended
December 31, 2010	(11)	(535)	(546)

Partners' deficit at December 31, 2010	(207)	(3,420)	(3,627)

Distributions to partners	--	(2,989)	(2,989)

Net income for the year ended
December 31, 2011	207	6,693	6,900

Partners’ capital at December 31, 2011	$ --	$ 284	284

Adjustment to liquidation basis			(60)

Net assets in liquidation at
December 31, 2011			$ 224

~~The~~See ~~Partnership's~~Accompanying ~~general partner~~Notes isto ~~HCW~~Financial General Partner, Ltd. (the "General Partner"). Its sole general partner is IH, Inc., (the "Managing General Partner"), which is an affiliate of Apartment Investment and Management Company ("AIMCO"), a publicly traded real estate investment trust.Statements

~~Subsequent Events:~~HCW ~~The Partnership’s’~~PENSION ~~management~~REAL ~~evaluated~~ESTATE ~~subsequent~~FUND ~~events~~LIMITED ~~through the time this Annual Report on Form 10-K was filed.~~PARTNERSHIP

~~Reclassifications:~~STATEMENTS ~~Certain~~OF ~~reclassifications have~~CASH ~~been made to the 2009 balances to conform to the 2010 presentation.~~FLOWS

~~Use~~(In 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.thousands)

Allocations of Cash Distributions: Distributions to the partners are paid from operations of the Partnership's property, from the sale or refinancing of the property or from working capital reserves. Distributions from operations are distributed 98% to the Limited Partners and 2% to the General Partner.

	Years Ended December 31,
	2011	2010
Cash flows from operating activities:
Net income (loss)	$ 6,900	$ (546)
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
Depreciation	634	778
Bad debt expense	47	5
Amortization of loan costs	4	4
Casualty gain	--	(47)
Gain from sale of discontinued operations	(8,602)	--
Loss on extinguishment of debt	999	--
Change in accounts:
Receivables and deposits	54	(19)
Other assets	78	(17)
Due from affiliate	(19)	--
Accounts payable	30	(15)
Tenant security deposit liabilities	(113)	8
Accrued property taxes	(226)	(79)
Other liabilities	(116)	(5)
Due to affiliates	(472)	196
Net cash provided by (used in) operating activities	(802)	263

Cash flows from investing activities:
Property improvements and replacements	(177)	(375)
Net proceeds from sale of discontinued operations	10,117	--
Insurance proceeds received	--	48
Net cash provided by (used in) investing activities	9,940	(327)

Cash flows from financing activities:
Repayment of mortgage note payable	(3,476)	--
Repayment of advances from affiliates	(2,266)	--
Payments on mortgage note payable	(263)	(242)
Advances from affiliates	220	216
Prepayment penalty paid	(61)	--
Distributions to partners	(2,952)	--
Net cash used in financing activities	(8,798)	(26)

Net increase (decrease) in cash and cash equivalents	340	(90)

Cash and cash equivalents at beginning of year	79	169

Cash and cash equivalents at end of year	$ 419	$ 79

Supplemental disclosure of cash flow information:
Cash paid for interest	$ 999	$ 313
Supplemental disclosure of non-cash activity:
Distribution payable	$ 37	$ --
Prepayment penalty paid by third party purchaser	$ 900	$ --

~~Distributions~~See ofAccompanying ~~cash~~Notes ~~from sales~~to ~~and~~Financial ~~refinancings or from working capital reserves are made in the following order:~~Statements

(a) FirstHCW toPENSION the LimitedREAL PartnersESTATE inFUND anLIMITED amount equal to their adjusted capital contributions; PARTNERSHIP

(b) Second,NOTES toTO theFINANCIAL Limited Partners in an amount equal to a 12% cumulative simple annual return on their average adjusted capital contribution for Partners who invested on or before March 1, 1985, and 10% to all others;STATEMENTS

~~(c) Third,~~December ~~90% to the Limited Partners and 10% to the General Partner until the Limited Partners have received~~31, ~~in addition to amounts received pursuant to (a) and (b), an amount equal to a 2% cumulative, noncompounded annual return on their average adjusted capital contributions; and,~~2011

~~(d) thereafter, 85%~~Note toA ~~the~~– ~~Limited~~Basis ~~Partners~~of ~~and 15% to the General Partner.~~Presentation

~~Allocation~~As of ~~Profits~~December 31, ~~Gains~~ 2011, ~~and~~HCW ~~Losses:~~Pension ~~The~~Real ~~Partnership~~Estate ~~Agreement provides~~Fund ~~for~~Limited ~~net~~Parntership ~~income~~(the “Partnership” or ~~loss~~“Registrant”) ~~arising~~adopted ~~from~~the ~~Partnership~~liquidation ~~operations~~basis ~~other~~of ~~than sales~~accounting ordue ~~financings~~ to bethe ~~allocated~~sale ~~98%~~of toits ~~the~~remaining ~~Limited Partners~~investment ~~and~~property 2%(as todiscussed ~~the~~in ~~General~~“Note ~~Partner~~G – Disposition of Investment Property“).

~~Income~~As ~~arising from~~ a ~~sale or~~result ~~refinancing~~of isthe decision to beliquidate ~~allocated~~the asPartnership, ~~follows:~~the ~~(i)~~Partnership tochanged ~~those~~its ~~partners~~basis ~~who~~of ~~have negative~~accounting ~~balances~~for inits ~~their~~financial ~~capital~~statements ~~accounts~~at inDecember ~~proportion~~31, to2011 ~~and~~ to the ~~extent of~~liquidation ~~such~~basis ~~negative~~of ~~balances~~accounting. Consequently, ~~(ii)~~assets tohave ~~the~~been ~~Limited~~valued ~~Partners~~at inestimated annet ~~amount~~realizable ~~equal~~value ~~to their~~and ~~adjusted~~liabilities ~~capital~~are ~~contributions,~~presented ~~(iii)~~at totheir ~~the~~estimated ~~Limited~~settlement ~~Partners~~amounts, inincluding anestimated ~~amount equal~~costs toassociated awith ~~12%~~carrying ~~cumulative,~~out ~~noncompounded~~the ~~annual~~liquidation ~~return~~of onthe ~~their~~Partnership. ~~average~~The ~~adjusted capital~~valuation ~~contributions~~of ~~for~~assets ~~Limited~~and ~~Partners~~liabilities ~~who~~necessarily ~~invested~~requires ~~prior~~many toestimates ~~March~~and 1,assumptions ~~1985,~~ and ~~10%~~there toare ~~all~~substantial ~~others,~~uncertainties ~~(iv)~~in ~~90%~~carrying toout the ~~Limited~~liquidation. ~~Partners~~The ~~and~~actual ~~10%~~realization toof ~~the~~assets ~~General Partner~~and ~~until~~settlement ~~the~~of ~~Limited~~liabilities ~~Partners~~could ~~have~~be ~~received~~higher anor ~~amount~~lower ~~equal~~than toamounts aindicated ~~2% cumulative,~~and ~~noncompounded~~is ~~annual~~based ~~return~~upon onthe ~~their~~managing ~~average~~general ~~adjusted~~partner’s ~~capital contributions,~~estimates ~~and~~as ~~(v)~~of ~~thereafter, 85% to~~ the ~~Limited~~date ~~Partners~~of ~~and 15% to~~ the ~~General~~ ~~Partner~~financial statements.

~~Losses~~The ~~from~~Partnership’s ageneral ~~sale~~partner ~~or refinancing~~is ~~are~~HCW toGeneral bePartner, ~~allocated~~Ltd. as(the ~~follows:~~“General (iPartner”). toIts ~~any~~sole ~~partners~~general ~~having~~partner ~~positive capital~~is ~~account~~IH, ~~balances~~Inc., in(the ~~proportion~~“Managing toGeneral ~~and~~Partner”), towhich ~~the~~is ~~extent~~an affiliate of ~~such~~Apartment ~~positive balances,~~Investment and Management Company (ii"Aimco"), ~~thereafter~~a publicly traded real estate investment trust. The Managing General Partner estimates that the liquidation process will be completed by December 31, ~~98%~~2012. toBecause the ~~Limited~~success ~~Partners~~in realization of assets and 2%the tosettlement of liabilities is based on the Managing General Partner’s best estimates, the liquidation period may be shorter than projected or it may be extended beyond the projected period.

~~Federal~~The ~~income~~accompanying ~~tax~~statements ~~law provides~~of ~~that~~discontinued ~~the~~operations ~~allocation~~for ofthe ~~loss~~years toended aDecember ~~partner~~31, ~~will~~2011 ~~not~~and be2010 ~~recognized~~reflect ~~unless~~ the ~~allocation~~operations isof inLewis ~~accordance~~Park ~~with~~Apartments aas ~~partner's~~loss ~~interest~~from indiscontinued ~~the~~operations ~~partnership~~and or the ~~allocation~~balance ~~has~~sheet ~~substantial~~as ~~economic~~of ~~effect.~~December ~~Internal~~31, ~~Revenue~~2010 ~~Code~~reflects ~~Section 704(b)~~the assets and ~~Treasury~~liabilities ~~Regulation~~of ~~Sections~~Lewis ~~establish~~Park ~~criteria~~Apartments as held for ~~allocations~~sale ~~of Partnership~~as ~~deductions~~a ~~attributable~~result toof ~~nonrecourse~~the ~~debt. The~~sale ~~Partnership's allocations~~of ~~for~~the ~~2010~~property ~~and~~on ~~2009~~December ~~have~~15, ~~been~~2011 ~~made~~(as discussed in ~~accordance~~“Note ~~with these provisions~~G”).

~~Depreciation:~~Note ~~Depreciation~~B ~~is provided by the straight~~-~~line~~ ~~method~~Organization ~~over the estimated life of the property~~ and ~~related personal~~Summary ~~property. For Federal income tax purposes, the modified accelerated cost recovery method is used for depreciation~~ of ~~(1)~~Significant ~~real~~Accounting ~~property additions over 27.5 years, and (2) personal property additions over 5 years, and (3) land improvements over 15 years.~~ Policies

~~Cash~~Organization: ~~and~~HCW ~~Cash Equivalents:~~Pension ~~Cash~~Real ~~and~~Estate ~~cash~~Fund ~~equivalents includes~~Limited ~~cash~~Partnership onis ~~hand~~a ~~and~~limited inpartnership ~~banks.~~organized Atpursuant ~~certain~~to ~~times,~~the laws of the ~~amount~~Commonwealth of ~~cash deposited~~Massachusetts aton April 30, 1984. On August 17, 1984, a ~~bank~~registration ~~may~~statement ~~exceed~~was declared effective by the ~~limit~~Securities onand ~~insured~~Exchange ~~deposits~~Commission. ~~Cash~~The ~~balances included~~Partnership ~~approximately~~commenced ~~$40,000~~operations ~~and~~on ~~$125~~June 5,~~000~~ at1985. ~~December~~The ~~31,~~Partnership ~~2010~~Agreement ~~and~~provides ~~2009, respectively,~~ that ~~are~~the ~~maintained~~Partnership byis anto ~~affiliated~~terminate ~~management~~on ~~company~~October on31, ~~behalf of~~2024 ~~affiliated~~unless ~~entities~~terminated inprior ~~cash~~to ~~concentration~~such ~~accounts~~date.

~~Tenant~~Subsequent ~~Security Deposits~~Events: The Partnership’s’ ~~requires~~management ~~security~~evaluated ~~deposits~~subsequent ~~from~~events ~~lessees~~through ~~for~~ the ~~duration~~time ofthis ~~the lease~~Annual ~~and~~Report ~~such~~on ~~deposits~~Form ~~are~~10-K ~~included~~was ~~in receivables and deposits~~filed. ~~Deposits are refunded when the tenant vacates, provided the tenant has not damaged the space and is current on rental payments.~~

~~Deferred Costs~~Reclassifications: ~~At both~~Certain ~~December~~reclassifications ~~31,~~have ~~2010~~been ~~and~~made ~~2009,~~to ~~loan costs of approximately $86,000 are included in other assets in~~ the accompanying balance sheets and are being amortized over the term of the related loan agreement. Amortization expense is included in interest expense. Amortization expense for each of the years ended December 31, 2010 ~~and~~balances ~~2009~~to ~~was~~conform ~~approximately $4,000. Accumulated amortization of approximately $44,000 and $40,000 at December 31, 2010 and 2009, respectively, is included in other assets. Amortization expense is expected~~ to ~~be approximately $4,000 for each of~~ the ~~years~~ 2011 ~~through 2015~~presentation.

~~Leasing~~Net ~~commissions~~Income ~~and other~~(Loss) ~~direct~~Per ~~costs~~Limited ~~incurred~~Partnership inUnit:At ~~connection~~December ~~with~~31, ~~successful~~2011 ~~leasing~~and ~~efforts~~2010, ~~are deferred~~the Partnership had outstanding 15,683 and ~~amortized~~15,693 ~~over~~limited partnership interests. Net income (loss) per Limited Partnership Unit is computed by dividing net income (loss) allocated to the ~~terms~~limited partners by the number of Units outstanding at the ~~related~~beginning ~~leases. Amortization~~ of ~~these~~the ~~costs~~fiscal isyear. ~~included~~Per inUnit ~~operating~~information ~~expenses~~has been computed based on 15,693 Units outstanding for both 2011 and 2010. A unit consists of one limited partnership interest.

~~Leases:~~Use ~~The~~of ~~Partnership~~Estimates: ~~generally leases apartment units for twelve-month terms or less.~~ The ~~Partnership will~~preparation ~~offer~~of ~~rental~~financial ~~concessions~~statements ~~during particularly slow months or~~ in ~~response~~conformity ~~to heavy~~with ~~competition~~accounting ~~from~~principles ~~other~~generally ~~similar~~accepted ~~complexes~~ in the ~~area. Rental~~United ~~income attributable~~States torequires ~~leases,~~management ~~net~~to ofmake ~~any~~estimates ~~concessions,~~and isassumptions ~~recognized~~that onaffect ~~a straight-line basis over~~ the ~~term~~amounts ofreported in the ~~lease. The~~financial ~~Partnership~~statements ~~evaluates all accounts receivable from residents~~ and ~~establishes~~accompanying annotes. ~~allowance,~~Actual ~~after~~results ~~the~~could ~~application~~differ ~~of security deposits, for accounts greater than 30 days past due on current tenants and all receivables due~~ from ~~former~~those ~~tenants~~estimates.

~~Investment~~Allocations ~~Property: Investment property consists~~ of ~~one apartment~~Cash ~~complex~~Distributions: ~~and~~Distributions isto ~~stated~~the atpartners ~~cost,~~are ~~less~~paid ~~accumulated~~from ~~depreciation,~~operations ~~unless the carrying amount~~ of the ~~asset is not recoverable. The~~ Partnership's ~~capitalizes costs incurred in connection with capital additions activities~~property, ~~including redevelopment~~from ~~and~~the ~~construction~~sale ~~projects,~~or ~~other~~refinancing ~~tangible property improvements and replacements~~ of ~~existing~~the property ~~components.~~or ~~Included~~from inworking ~~these capitalized costs are payroll costs associated with time spent by site employees in connection with the planning, execution and control of all~~ capital ~~additions activities at the property level~~reserves. ~~The~~ ~~Partnership~~Distributions ~~capitalizes~~from ~~interest, property~~operations ~~taxes and insurance during periods in which redevelopment and construction projects~~ are indistributed ~~progress.~~98% ~~The Partnership did not capitalize any costs related~~ to ~~interest, property taxes and insurance costs during~~ the ~~years ended~~Limited ~~December~~Partners ~~31, 2010~~ and ~~2009.~~2% ~~Capitalized~~to ~~costs are depreciated over~~ the ~~estimated~~ ~~useful~~General ~~life of the asset~~Partner. ~~The Partnership charges to expense as incurred costs that do not relate to capital additions activities, including ordinary repairs, maintenance and resident turnover costs.~~

IfDistributions ~~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,~~from ~~excluding~~sales ~~interest charges,~~and ofrefinancings ~~the~~or ~~property. If~~from ~~the~~working ~~carrying~~capital ~~amount~~reserves ~~exceeds~~are ~~the estimated~~made ~~aggregate~~in ~~undiscounted future cash flows,~~ the ~~Partnership~~following 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, 2010 and 2009.order:

~~Fair Value of Financial Instruments: Financial Accounting Standards Board Accounting Standards Codification~~ (~~“ASC”~~a) First ~~Topic 825, “Financial Instruments”, requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable~~ to ~~estimate fair value. Fair value is defined as~~ the ~~amount~~Limited ~~at which~~Partners ~~the instruments could be exchanged~~ in aan ~~current transaction between willing parties, other than in a forced or liquidation sale. The Partnership believes that the carrying~~ amount ofequal ~~its~~to ~~financial instruments (except for the mortgage note payable) approximates~~ their ~~fair~~adjusted ~~value~~capital ~~due~~contributions; to the short-term maturity of these instruments. The Partnership estimates the fair value of its mortgage note payable by discounting future cash flows using a discount rate commensurate with that currently believed to be available to the Partnership for similar term, fully amortizing mortgage note payable. At December 31, 2010, the fair value of the Partnership's mortgage note payable at the Partnership’s incremental borrowing rate was approximately $4,231,000.

~~Advertising:~~(b) Second, ~~The~~to ~~Partnership expenses~~ the ~~costs~~Limited ofPartners ~~advertising~~in asan ~~incurred.~~amount ~~Advertising~~equal ~~costs~~to ~~for~~a ~~the~~12% ~~investment property~~cumulative ofsimple ~~approximately~~annual ~~$35,000~~return ~~and~~on ~~$60,000~~their average adjusted capital contribution for ~~the~~Partners ~~years~~who ~~ended~~invested ~~December~~on ~~31, 2010~~or ~~and~~before ~~2009~~March 1, ~~respectively~~1985, ~~were~~and ~~charged~~10% to ~~operating~~all ~~expense.~~others;

~~Segment Reporting: ASC Topic 280-10~~(c) Third, ~~“Segment~~90% ~~Reporting”,~~to ~~established standards for~~ the ~~way~~Limited ~~public business~~Partners ~~enterprises~~and ~~report~~10% ~~information~~to ~~about~~the ~~operating~~General ~~segments~~Partner inuntil ~~annual financial~~the ~~statements~~Limited ~~and~~Partners ~~requires~~have ~~that~~received, ~~those enterprises report selected information about operating segments~~ in ~~interim~~addition ~~financial~~to ~~reports. ASC Topic~~amounts ~~280-10~~received ~~also~~pursuant ~~established~~to ~~standards~~(a) ~~for related disclosures about products~~ and ~~services~~(b), ~~geographic~~an ~~areas,~~amount ~~and~~equal ~~major~~to ~~customers.~~a ~~As defined~~2% incumulative, ~~ASC~~noncompounded ~~Topic~~annual ~~280-10,~~return ~~the~~on ~~Partnership~~their ~~has~~average ~~only~~adjusted ~~one~~capital ~~reportable segment.~~contributions; and,

~~Note~~(d) thereafter, B85% -to ~~Income Taxes~~the Limited Partners and 15% to the General Partner.

~~The~~Allocation ~~Partnership~~of ~~is classified~~Profits, asGains, aand ~~partnership~~Losses: ~~for~~The ~~Federal~~Partnership ~~income~~Agreement ~~tax~~provides ~~purposes. Accordingly, no provision~~ for ~~Federal~~net income ~~taxes~~or isloss ~~made~~arising infrom ~~the~~Partnership ~~financial~~operations ~~statements~~other ofthan ~~the Partnership.~~sales ~~Taxable~~or ~~income~~financings orto ~~loss~~be ofallocated ~~the~~98% ~~Partnership~~to isthe ~~reported~~Limited inPartners ~~the~~and ~~income tax~~2% ~~returns~~to ofthe ~~its~~General ~~partners~~Partner.

~~The~~Income ~~following~~arising isfrom a ~~reconciliation~~ ofsale ~~reported~~or ~~net~~refinancing ~~loss~~is to be allocated as follows: (i) to those partners who have negative balances in their capital accounts in proportion to and ~~Federal~~to ~~taxable~~the ~~loss~~extent of such negative balances, (ii) to the Limited Partners in ~~thousands~~an amount equal to their adjusted capital contributions, ~~except~~ ~~per~~(iii) ~~unit~~to ~~data~~the Limited Partners in an amount equal to a 12% cumulative, noncompounded annual return on their average adjusted capital contributions for Limited Partners who invested prior to March 1, 1985, and 10% to all others, (iv): 90% to the Limited Partners and 10% to the General Partner until the Limited Partners have received an amount equal to a 2% cumulative, noncompounded annual return on their average adjusted capital contributions, and (v) thereafter, 85% to the Limited Partners and 15% to the General Partner.

	2010	2009
Net loss as reported	$ (546)	$ (641)
Add (deduct)
Depreciation differences	282	125
Other	(20)	(434)
Unearned income	(1)	7
Federal taxable loss	$ (285)	$ (943)
Federal taxable loss
per limited partnership unit	$ --	$ --

Losses from a sale or refinancing are to be allocated as follows: (i) to any partners having positive capital account balances in proportion to and to the extent of such positive balances, and (ii) thereafter, 98% to the Limited Partners and 2% to the General Partner.

~~For~~Federal ~~2010~~income ~~and~~tax ~~2009,~~ law provides that the allocation ~~under~~of loss to a partner will not be recognized unless the allocation is in accordance with a partner's interest in the partnership or the allocation has substantial economic effect. Internal Revenue Code Section 704(b) ~~results~~and inTreasury ~~the~~Regulation ~~limited partners~~Sections ~~being~~establish ~~allocated~~criteria afor ~~non-pro~~allocations ~~rata~~of ~~amount~~Partnership ofdeductions ~~taxable~~attributable ~~loss~~to nonrecourse debt. The Partnership's allocations for 2011 and 2010 have been made in accordance with these provisions.

~~The~~Depreciation: ~~following~~Depreciation iswas ~~a reconciliation~~provided ~~between~~by the ~~Partnership's~~straight-line ~~reported~~method ~~amounts~~over the estimated life of the property and related personal property. For Federal income tax ~~basis~~ purposes, the modified accelerated cost recovery method was used for depreciation of ~~net~~(1) ~~assets~~real ~~and~~property ~~liabilities~~additions over 27.5 years, and (in2) ~~thousands~~personal property additions over 5 years, and (3): land improvements over 15 years.

	2010	2009
Net liabilities as reported	$(3,627)	$(3,081)
Investment property at cost	52	35
Accumulated depreciation	1,870	1,595
Syndication	1,708	1,708
Other	75	106
Net assets - tax basis	$ 78	$ 363

Cash and Cash Equivalents: Cash and cash equivalents includes 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 included approximately $410,000 and $40,000 at December 31, 2011 and 2010, respectively, that are maintained by an affiliated management company on behalf of affiliated entities in cash concentration accounts.

~~Note~~Tenant CSecurity -Deposits: ~~Transactions~~The ~~with Affiliated~~Partnership ~~Parties~~required security deposits from lessees for the duration of the lease and such deposits were included in receivables and deposits. Deposits were refunded when the tenant vacated, provided the tenant had not damaged the space and was current on rental payments.

~~The~~Deferred ~~Partnership~~Costs: ~~has~~At ~~no employees~~December ~~and~~31, ~~depends~~2010, onloan costs of approximately $86,000 were included in other assets in the ~~Managing~~accompanying ~~General~~balance ~~Partner~~sheet and ~~its~~were ~~affiliates~~being amortized over the term of the related loan agreement. Amortization expense for each of the ~~management~~ years ended December 31, 2011 and ~~administration~~2010 ofwas ~~all~~approximately ~~Partnership~~$4,000 ~~activities~~and was included in interest expense. ~~The~~During ~~Partnership Agreement~~the ~~provides~~year ~~for~~ended ~~(i)~~December ~~certain~~31, ~~payments~~2011, toloan ~~affiliates~~costs ~~for~~of ~~services~~approximately $86,000 and ~~(ii) reimbursement~~amortization of ~~certain~~approximately ~~expenses~~$48,000 ~~incurred~~were bywritten ~~affiliates~~off onin ~~behalf~~connection with the sale of the ~~Partnership.~~ property for a total write off of approximately $38,000, which is included in loss on extinguishment of debt.

~~Affiliates~~Leasing ofcommissions ~~the~~and ~~Managing~~other ~~General~~direct ~~Partner receive~~costs 5%incurred ofin ~~gross~~connection ~~receipts~~with ~~from~~successful ~~the~~leasing ~~Partnership's~~efforts ~~sole~~were ~~property~~deferred ~~as compensation for providing property management services. The Partnership paid to such affiliates approximately $110,000~~ and ~~$84,000~~amortized ~~for~~over the ~~years~~terms ~~ended~~of ~~December 31,~~the ~~2010~~related ~~and~~leases. Amortization ~~2009,~~of ~~respectively,~~these ~~which~~costs is included in operating expenses. ~~At December 31, 2010 and 2009, the Partnership owed approximately $1,000 and $3,000, respectively, of property management fees which is included in due to affiliates.~~

AnLeases: ~~affiliate~~The ofPartnership ~~the~~generally ~~Managing General~~leased ~~Partner~~apartment ~~earned~~units ~~asset~~for ~~management~~twelve-month ~~fees~~terms ~~amounting~~or toless. The ~~approximately~~Partnership ~~$38,000 and~~offered ~~$10,000~~rental ~~for~~concessions ~~the~~during ~~years~~particularly ~~ended~~slow ~~December~~months ~~31,~~or ~~2010~~in ~~and~~response ~~2009,~~to ~~respectively,~~heavy ~~which is~~competition ~~included~~from inother ~~general~~similar ~~and~~complexes ~~administrative~~in ~~expenses~~the area. ~~The~~Rental ~~asset~~income ~~management~~attributable ~~fees~~to ~~are~~leases, ~~calculated~~net ~~based~~of onany aconcessions, ~~percentage~~was ~~of the~~recognized ~~tangible~~on ~~asset~~a ~~value~~straight-line ofbasis over the ~~Partnership~~term asof ~~defined in~~ the ~~Partnership Agreement~~lease. The ~~percentage~~Partnership asevaluated ~~stipulated~~all inaccounts ~~the~~receivable ~~Partnership~~from ~~Agreement~~residents ~~was 0.50%~~and ~~for~~established ~~both~~an ~~2010~~allowance, ~~and~~after ~~2009.~~the Atapplication ~~December~~of ~~31,~~security ~~2010 and 2009~~deposits, ~~the~~for ~~Partnership owed~~accounts ~~approximately~~greater ~~$22,000~~than ~~and~~30 ~~$8,000,~~days ~~respectively,~~past ofdue ~~asset~~on ~~management~~current ~~fees which~~tenants isand ~~included~~all inreceivables due tofrom ~~affiliates~~former tenants.

~~Affiliates~~Investment Property: Investment property consisted of one apartment complex and was stated at cost, less accumulated depreciation, unless the ~~Managing General~~carrying ~~Partner~~amount ~~charged~~of the asset was not recoverable. The Partnership ~~reimbursement~~capitalized ofcosts ~~accountable administrative~~incurred ~~expenses~~in ~~amounting~~connection towith ~~approximately~~capital ~~$36~~additions activities,~~000~~ including redevelopment and ~~$34~~construction projects,~~000~~ ~~for~~other ~~the years~~tangible ~~ended~~property ~~December~~improvements 31and replacements of existing property components. Included in these capitalized costs were payroll costs associated with time spent by site employees in connection with the planning, ~~2010~~execution and ~~2009,~~control ~~respectively~~of all capital additions activities at the property level. The Partnership capitalized interest, ~~which~~property istaxes ~~included~~and insurance during periods in ~~general~~ which redevelopment and ~~administrative~~construction ~~expenses~~projects were in progress. AtThe ~~December~~Partnership 31did not capitalize any costs related to interest, ~~2010~~property taxes and ~~2009,~~insurance costs during the ~~Partnership~~ ~~owed~~years ~~approximately~~ended ~~$23~~December 31,~~000~~ 2011 and ~~$69,000,~~2010. ~~respectively,~~Capitalized costs were depreciated over the estimated useful life of ~~accountable administrative~~the ~~expenses~~asset. ~~which~~The isPartnership ~~included~~charged into ~~due~~expense as incurred costs that did not relate to ~~affiliates~~capital additions activities, including ordinary repairs, maintenance and resident turnover costs.

InIf ~~accordance~~events ~~with~~or ~~the Partnership~~circumstances ~~Agreement,~~indicated ~~AIMCO~~that ~~Properties,~~the ~~L.P.,~~carrying anamount ~~affiliate~~ of the ~~Managing General~~property ~~Partner~~was ~~advanced~~not ~~the Partnership approximately $216~~recoverable,~~000~~ ~~during~~ the ~~year ended~~Partnership ~~December~~made ~~31,~~an ~~2010~~assessment toof ~~assist~~its ~~with~~recoverability ~~capital~~by ~~expenditures~~comparing ~~and operating expenses at Lewis Park Apartments. During~~ the ~~year~~carrying ~~ended~~amount ~~December~~to ~~31, 2009,~~ the ~~Managing~~ ~~General~~Partnership’s ~~Partner~~estimate ~~advanced~~of the ~~Partnership~~undiscounted ~~approximately~~future ~~$579~~cash flows,~~000~~ ~~to assist~~excluding ~~with~~interest ~~operating expenses~~charges, ~~real~~of ~~estate~~the ~~taxes and capital expenditures at Lewis Park Apartments~~property. At If ~~December~~the ~~31,~~carrying ~~2010~~amount ~~and~~exceeded ~~2009,~~ the ~~total~~estimated ~~advances and~~aggregate ~~accrued~~undiscounted ~~interest~~future ~~due~~cash ~~to AIMCO Properties~~flows, ~~L.P.~~the ~~was~~Partnership ~~approximately~~would ~~$2,472,000 and~~recognize ~~$2,026,000,~~an ~~respectively.~~impairment ~~The~~loss ~~interest~~to ~~rates on~~ the ~~outstanding~~extent ~~advances made to~~ the ~~Partnership~~carrying ~~are~~amount ~~based~~exceeded on the ~~prime~~estimated ~~rate~~fair ~~plus~~value ~~a market rate adjustment for similar type loans. Affiliates~~ of the ~~Managing General Partner review the market rate adjustment quarterly~~property. ~~The~~No ~~interest~~adjustments ~~rates~~for onimpairment ~~outstanding advances~~of atvalue ~~December~~were ~~31,~~necessary ~~2010 ranged from 9.44% to 18.56%. Interest expense was approximately $230,000 and $157,000~~ for the years ~~ended~~ending December 31, ~~2010 and~~2011 2009, respectively. 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 sheets, please see its reports filed with the Securities and ~~Exchange Commission~~2010.

Advertising: The Partnership ~~insures~~expensed ~~its property~~the upcosts toof ~~certain~~advertising ~~limits~~as ~~through~~incurred. ~~coverage~~Advertising ~~provided~~costs ~~by AIMCO which is generally self-insured~~ for athe ~~portion~~investment property of ~~losses~~approximately ~~and liabilities related to workers’ compensation~~$27,000 ~~property~~and ~~casualty~~$35,000 ~~general~~for ~~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, ~~2010~~2011 and ~~2009~~2010, ~~the Partnership was charged by AIMCO and its affiliates approximately $72,000 and $37,000,~~ respectively, ~~for~~are ~~insurance~~included ~~coverage~~in ~~and~~operating ~~fees associated with policy claims administration~~expenses.

InAbandoned ~~addition~~Units: toDuring ~~its~~2011, ~~indirect~~the ~~ownership~~number of ~~the general partner interest in the Partnership, AIMCO and its affiliates owned 6,227~~ limited partnership units ~~(the~~decreased ~~"Units")~~by in10 ~~the~~units ~~Partnership~~due ~~representing 39.68% of the outstanding Units as of December 31, 2010. A number of these Units were acquired pursuant~~ to ~~tender~~limited ~~offers~~partners ~~made~~abandoning bytheir ~~AIMCO or its affiliates~~units. ItIn ~~is possible~~abandoning ~~that~~his ~~AIMCO~~ or ~~its~~her ~~affiliates will acquire additional Units 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~~limited ~~of the~~partner ~~Units~~relinquishes ~~are~~all ~~entitled to take action with respect to a variety of matters that include~~right, ~~but~~title ~~are not limited to, voting on certain amendments to the Partnership Agreement~~ and ~~voting~~interest toin ~~remove~~ the ~~Managing General Partner. Although the Managing General Partner owes fiduciary duties to the limited partners of the~~ Partnership, ~~the Managing General Partner also owes fiduciary duties to AIMCO~~ as ~~its~~ ~~sole stockholder. As a result, the duties~~ of the ~~Managing~~date ~~General Partner, as managing general partner, to the Partnership and its limited partners may come into conflict with the duties~~ of ~~the Managing General Partner to AIMCO as its sole stockholder~~abandonment.

~~Note~~Segment DReporting: –Accounting ~~Investment~~Standards ~~Property~~ Codification (“ASC”) Topic 280-10, “Segment Reporting”, established standards for the way public business enterprises report information about operating segments in annual financial statements and ~~Accumulated~~requires ~~Depreciation~~that those enterprises report selected information about operating segments in interim financial reports. ASC Topic 280-10 also established standards for related disclosures about products and services, geographic areas, and major customers. As defined in ASC Topic 280-10, the Partnership has only one reportable segment.

	Initial Cost
	To Partnership
	(in thousands)
			Buildings	Net Cost
			and Related	Capitalized
			Personal	Subsequent to
Description	Encumbrance	Land	Property	Acquisition
	(in thousands)			(in thousands)
Lewis Park Apartments	$3,739	$ 621	$7,840	$4,893

Note C – Adjustment to Liquidation Basis of Accounting

	Gross Amount At Which Carried
	At December 31, 2010
	(in thousands)
		Buildings
		And Related
		Personal		Accumulated	Date of	Date	Depreciable
Description	Land	Property	Total	Depreciation	Construction	Acquired	Life-Years
Lewis Park				(in thousands)
Apartments	$ 621	$12,733	$13,354	$10,526	1972	11/86	5-30

At December 31, 2011, in accordance with the liquidation basis of accounting, assets were adjusted to their estimated net realizable value and liabilities were adjusted to their estimated settlement amount. The net adjustment required to convert to the liquidation basis of accounting was a decrease in net assets of approximately $60,000, which is included in the Statements of Changes in Partners’ Capital/Net Assets in Liquidation.

~~Reconciliation~~Note ~~of "Investment~~D ~~Property~~- ~~and~~Income ~~Accumulated Depreciation":~~Taxes

	Years Ended December 31,
	2010	2009
	(in thousands)
Investment Property
Balance at beginning of year	$13,165	$12,428
Property improvements and replacements	197	975
Property dispositions	(8)	(238)
Balance at end of year	$13,354	$13,165
Accumulated Depreciation
Balance at beginning of year	$ 9,755	$ 9,250
Additions charged to expense	778	721
Property dispositions	(7)	(216)
Balance at end of year	$10,526	$ 9,755

The Partnership is classified as a partnership for Federal income tax purposes. Accordingly, no provision for Federal 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 ~~aggregate~~Partnership ~~cost~~adopted of the ~~real~~ ~~estate~~liquidation ~~for~~basis ~~Federal~~of ~~income~~accounting ~~tax~~effective ~~purposes at~~ December 31, ~~2010 and 2009 is approximately $13,406,000 and $13,200,000, respectively~~2011. ~~The accumulated depreciation taken for Federal income tax purposes at December 31, 2010 and 2009 is approximately $8,656,000 and $8,160,000, respectively.~~

~~Note~~The Efollowing -is ~~Mortgage~~a ~~Note Payable~~reconciliation of reported net income (loss) and Federal taxable loss (in thousands, except per unit data):

The terms of the mortgage note payable are as follows:

	2011	2010
Net income (loss) as reported	$ 6,900	$ (546)
Add (deduct)
Depreciation differences	399	282
Gain on sale	(2,245)	--
Other	(20)	(20)
Unearned income	(62)	(1)
Federal taxable income (loss)	$ 4,972	$ (285)
Federal taxable income (loss)
per limited partnership unit	$212.93	$ --

	Principal		Monthly			Principal
	Balance At		Payment	Stated		Balance
	December 31,		Including	Interest	Maturity	Due At
Property	2010	2009	Interest	Rate	Date	Maturity
	(in thousands)					(in thousands)
Lewis Park
Apartments
1st mortgage	$3,739	$3,981	$ 46	8.08%	09/20	$ --

For 2010, allocation under Internal Revenue Code Section 704(b) results in the limited partners being allocated a non-pro rata amount of taxable loss.

The ~~mortgage~~following ~~note payable~~ is a ~~fixed rate mortgage that is non-recourse and is secured by~~ a ~~pledge~~reconciliation ofbetween the Partnership's ~~rental~~reported ~~property~~amounts and byFederal ~~pledge~~tax basis of ~~revenues~~net ~~from~~assets ~~the~~(liabilities) ~~rental property.~~(in ~~The mortgage note payable includes a prepayment penalty if repaid prior to maturity. Further, the property may not be sold subject to existing indebtedness.~~thousands):

Scheduled principal payments of the mortgage note payable subsequent to December 31, 2010, are as follows (in thousands):

	2011	2010
Net assets (liabilities) as reported	$ 284	$(3,627)
Investment property at cost	--	52
Accumulated depreciation	--	1,870
Syndication	1,708	1,708
Other	68	75

Net assets - tax basis	$ 2,060	$ 78

2011	$ 263
2012	285
2013	308
2014	335
2015	363
Thereafter	2,185
Total	$3,739

The Partnership is subject to Illinois replacement taxes as a result of the Partnership’s former property, Lewis Park Apartments, being located in the state of Michigan. During 2011, the Partnership recognized current tax expense of approximately $6,000 which is included as a reduction of the gain from sale of discontinued operations and included in other liabilities at December 31, 2011.

Note FE –- ~~Casualty Event~~Transactions with Affiliated Parties

~~In May 2009, Lewis Park Apartments suffered storm damage to several of its apartment buildings.~~ The ~~damages~~ ~~were~~Partnership ~~approximately~~has ~~$527,000,~~no ~~including~~employees ~~clean~~and updepends ~~costs~~on ~~of approximately $49,000. The clean up costs were included in operating expenses for~~ the ~~year ended~~Managing ~~December~~General ~~31,~~Partner ~~2009.~~and ~~Insurance~~its ~~proceeds~~affiliates ~~of approximately $469,000 were received during the year ended December 31, 2009, which included approximately $49,000 in proceeds~~ for ~~clean up costs, and were held by~~ the ~~mortgage~~management ~~lender until the repairs~~ and ~~clean~~administration upof ~~were~~all ~~completed~~Partnership activities. The Partnership ~~recognized~~Agreement ~~a casualty~~provides ~~gain~~for of(i) ~~approximately~~certain ~~$398,000~~payments ~~during~~to ~~the~~affiliates ~~year~~for ~~ended~~services ~~December~~and ~~31,~~(ii) ~~2009, as~~reimbursement ~~a result~~ of ~~the~~certain ~~receipt~~expenses ofincurred ~~insurance~~by ~~proceeds~~affiliates ofon ~~approximately~~behalf ~~$420,000, net~~ of the ~~write off of undepreciated damaged assets of approximately $22,000. During the year ended December 31, 2010, the~~ Partnership recognized an additional casualty gain of approximately $47,000 as a result of the receipt of additional insurance proceeds of approximately $48,000, net of the write-off of additional undepreciated assets of approximately $1,000. ~~No additional insurance proceeds are anticipated to be received.~~

~~Note~~Affiliates Gof ~~– Contingencies~~the Managing General Partner received 5% of gross receipts from the Partnership's sole property as compensation for providing property management services. The Partnership paid to such affiliates approximately $104,000 and $110,000 for the years ended December 31, 2011 and 2010, respectively, which is included in operating expenses. At December 31, 2011, the Partnership was owed approximately $9,000 for overpayment of property management fees, which is included in due from affiliates. Payment was received subsequent to December 31, 2011. At December 31, 2010, the Partnership owed approximately $1,000 of property management fees which was included in due to affiliates.

AsAn ~~previously~~affiliate ~~disclosed, AIMCO Properties, L.P. and NHP Management Company, both affiliates~~ of the Managing General Partner, ~~were~~earned ~~defendants~~asset inmanagement afees ~~lawsuit,~~amounting ~~filed~~to asapproximately a$26,000 ~~collective action~~and in$38,000 ~~August~~for ~~2003 in~~ the ~~United~~years ~~States~~ended ~~District~~December ~~Court~~31, ~~for~~2011 ~~the~~and ~~District~~2010, ~~of Columbia~~respectively, ~~alleging~~which ~~that~~is ~~they~~included ~~willfully violated the Fair Labor Standards Act (“FLSA”) by failing to pay maintenance workers overtime for time worked~~ in ~~excess~~ ofgeneral 40and ~~hours~~administrative ~~per week (“overtime claims”)~~expenses. The ~~plaintiffs~~asset ~~also contended~~management ~~that~~fees ~~AIMCO~~are ~~Properties,~~calculated ~~L.P.~~based ~~and~~on ~~NHP~~a ~~Management~~percentage ~~Company~~of (“the ~~Defendants”)~~ ~~failed~~tangible toasset ~~compensate~~value ~~maintenance~~of ~~workers~~the ~~for~~Partnership ~~time~~as ~~that~~defined ~~they~~in ~~were required~~the toPartnership ~~be "on-call" (“on-call claims”)~~Agreement. The Inpercentage ~~March~~as ~~2007,~~stipulated ~~the court~~ in the ~~District~~ ofPartnership ~~Columbia~~Agreement ~~decertified~~was ~~the collective action~~0.50% Infor ~~July~~both ~~2007, plaintiffs’~~2011 ~~counsel~~and ~~filed individual cases in Federal court in 22 jurisdictions~~2010. In ~~the~~At ~~second~~December ~~quarter of 2008~~31, ~~AIMCO Properties~~2011, ~~L.P. settled~~ the ~~overtime~~Partnership ~~cases involving~~was ~~652~~owed ~~plaintiffs~~approximately ~~and~~$10,000 ~~established a framework~~ for ~~resolving~~overpayment ~~the~~of ~~88 remaining~~asset ~~“on-call”~~management ~~claims and the attorneys’~~ fees ~~claimed~~which byis ~~plaintiffs’ counsel.~~included ~~As a result, the lawsuits asserted~~ in ~~the~~due 22from ~~Federal courts were dismissed~~affiliates. ~~During~~At ~~the~~December ~~fourth~~31, ~~quarter of 2008~~2010, the ~~settlement amounts for alleged unpaid overtime to employees were paid by those partnerships where the respective employees had worked. The~~ Partnership ~~was~~owed ~~not~~approximately ~~required to pay any settlement amounts. During January 2011~~$22,000 ~~the~~of ~~parties~~asset ~~reached~~management ~~an agreement to settle the remaining “on-call claims” and the plaintiffs’ attorneys’~~ fees. ~~The~~which ~~Partnership~~is ~~will~~included ~~not~~in bedue ~~required~~ to ~~pay any settlement amounts or plaintiffs’ attorneys’ fees as a result of this agreement~~affiliates. ~~These~~ ~~settlements resolve the case in its entirety.~~

~~The~~Affiliates of the Managing General Partner charged the Partnership isreimbursement ~~unaware~~ of ~~any~~accountable ~~other~~administrative ~~pending~~expenses oramounting ~~outstanding~~to ~~litigation~~approximately ~~matters~~$41,000 ~~involving~~and it$36,000 orfor ~~its investment~~the ~~property~~years ~~that~~ended ~~are~~December ~~not~~31, of2011 aand ~~routine~~2010, ~~nature~~respectively, ~~arising~~which is included in general and administrative expenses. At December 31, 2010, the ~~ordinary course~~Partnership owed approximately $23,000 of ~~business~~accountable administrative expenses which is included in due to affiliates. There were no amounts outstanding at December 31, 2011.

~~Environmental~~In accordance with the Partnership Agreement, AIMCO Properties, L.P., an affiliate of the Managing General Partner advanced the Partnership approximately $220,000 and $216,000 during the years ended December 31, 2011 and 2010, respectively, to assist with real estate taxes, capital expenditures and operating expenses at Lewis Park Apartments. At December 31, 2010, the total advances and accrued interest due to AIMCO Properties, L.P. was approximately $2,472,000. During the year ended December 31, 2011, the Partnership repaid the outstanding advances and accrued interest of approximately $2,949,000. There were no payments made during the year ended December 31, 2010. There were no outstanding advances or associated accrued interest at December 31, 2011. The interest rates charged on the outstanding advances made to the Partnership are based on the prime rate plus a market rate adjustment for similar type loans. Affiliates of the Managing General Partner review the market rate adjustment quarterly. Interest expense was approximately $257,000 and $230,000 for the years ended December 31, 2011 and 2010, respectively.

~~Various~~The ~~Federal,~~Partnership ~~state~~insured ~~and~~its ~~local laws subject~~ property ~~owners~~up ~~or operators~~ to ~~liability~~certain ~~for~~limits ~~management,~~through ~~and~~coverage ~~the~~provided ~~costs~~by ~~of removal~~Aimco orwhich ~~remediation,~~is ofgenerally ~~certain~~self-insured ~~potentially~~for ~~hazardous materials present on~~ a ~~property,~~portion ~~including~~of ~~lead-based~~losses ~~paint, asbestos, polychlorinated biphenyls, petroleum-based fuels,~~ and ~~other~~liabilities ~~miscellaneous~~related ~~materials. Such laws often impose liability without regard~~ to ~~whether~~workers’ ~~the owner or operator knew of~~compensation, orproperty ~~was responsible for~~casualty, ~~the~~general ~~release~~liability orand ~~presence~~vehicle ~~of such materials~~liability. The ~~presence~~Partnership ~~of,~~insured ~~or the~~its ~~failure~~property toabove ~~manage~~the orAimco ~~remedy~~limits ~~properly,~~through ~~these~~insurance ~~materials~~policies ~~may~~obtained ~~adversely~~by ~~affect occupancy~~Aimco atfrom ~~affected~~insurers ~~apartment~~unaffiliated ~~communities~~with ~~and~~ the ~~ability~~Managing toGeneral ~~sell or finance affected properties~~Partner. InDuring ~~addition to~~ the ~~costs~~years ~~associated~~ended ~~with~~December ~~investigation and remediation actions brought by government agencies~~31, 2011 and ~~potential fines or penalties imposed by such agencies in connection therewith~~2010, the ~~improper management~~Partnership ofwas ~~these~~charged ~~materials~~by onAimco aand ~~property~~its ~~could~~affiliates ~~result~~approximately in$62,000 ~~claims~~and ~~by private plaintiffs for personal injury~~$72, ~~disease~~000, ~~disability or other infirmities. Various laws also impose liability for the cost of removal~~respectively, ~~remediation or disposal of these materials through a licensed disposal or treatment facility. Anyone who arranges~~ for ~~the~~insurance ~~disposal~~coverage or treatment of these materials 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~~fees ~~of its property, the Partnership could potentially be responsible for environmental liabilities or costs~~ associated with ~~its~~policy ~~property~~claims administration.

~~Note~~In Haddition –to ~~Subsequent Event~~its indirect ownership of the general partner interest in the Partnership, Aimco and its affiliates owned 6,227 limited partnership units (the "Units") in the Partnership representing 39.70% of the outstanding Units as of December 31, 2011. A number of these Units were acquired pursuant to tender offers made by Aimco or its affiliates. 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 Managing General Partner. Although the Managing General Partner owes fiduciary duties to the limited partners of the Partnership, the Managing General Partner also owes fiduciary duties to Aimco as its sole stockholder. As a result, the duties of the Managing General Partner, as managing general partner, to the Partnership and its limited partners may come into conflict with the duties of the Managing General Partner to Aimco as its sole stockholder.

~~Subsequent~~Note toF ~~December~~– ~~31, 2010,~~Casualty the Partnership entered into a sale contract with a third party relating to the sale of Lewis Park Apartments, which was projected to close during the second quarter of 2011 for a sales price of $9,400,000. On February 24, 2011, the purchaser terminated the sales contract according to the terms of the contract. The Partnership has determined that certain held for sale criteria were not met at December 31, 2010 and therefore continues to report the assets and liabilities of the investment property as held for investment and its respective operations as continuing operations. Event

~~ITEM~~In 9May 2009, Lewis Park Apartments suffered storm damage to several of its apartment buildings. ~~Changes~~The damages were approximately $527,000, including clean up costs of approximately $49,000. The clean up costs were included in operating expenses for the year ended December 31, 2009. Insurance proceeds of approximately $469,000 were received during the year ended December 31, 2009, which included approximately $49,000 in proceeds for clean up costs, and ~~Disagreements~~were ~~with~~held ~~Accountants~~by onthe ~~Accounting~~mortgage lender until the repairs and ~~Financial~~clean ~~Disclosure~~up were completed. The Partnership recognized a casualty gain of approximately $398,000 during the year ended December 31, 2009, as a result of the receipt of insurance proceeds of approximately $420,000, net of the write off of undepreciated damaged assets of approximately $22,000. During the year ended December 31, 2010, the Partnership recognized an additional casualty gain of approximately $47,000 as a result of the receipt of additional insurance proceeds of approximately $48,000, net of the write-off of additional undepreciated assets of approximately $1,000. No additional insurance proceeds are anticipated to be received.

~~None.~~Note G – Disposition of Investment Property

On December 15, 2011, the Partnership sold Lewis Park Apartments to a third party for a gross sales price of $11,200,000. The net proceeds realized by the Partnership were approximately $10,117,000 after payment of closing costs of approximately $183,000 and payment of prepayment penalties of $900,000 by the purchaser. The Partnership used approximately $3,476,000 of the net proceeds to repay the mortgage encumbering the property. The Partnership recognized a gain of approximately $8,602,000 as a result of the sale during the year ended December 31, 2011. In addition, the Partnership recognized a loss on extinguishment of debt of approximately $999,000 as a result of the write off of the unamortized balance of loan costs of approximately $38,000 and prepayment penalties of approximately $961,000, of which approximately $61,000 was paid by the Partnership and approximately $900,000 was paid by the purchaser. While the Partnership is not subject to Federal income tax, it is subject to tax related to its Illinois activities. During the year ended December 31, 2011, as a result of the sale of Lewis Park Apartments, the Partnership recognized current tax expense of approximately $6,000, which is reflected as a reduction of gain from sale of discontinued operations. The corresponding liability is included in other liabilities at December 31, 2011.

Note H – Distributions

The Partnership distributed the following amounts during the years ended December 31, 2011 and 2010 (in thousands, except per unit data):



	Year Ended	Per Limited	Year Ended	Per Limited
	December 31,	Partnership	December 31,	Partnership
	2011	Unit	2010	Unit

Sale (1)	$ 2,989	$ 190.47	$ --	$ --

(1)Proceeds from the December 2011 sale of Lewis Park Apartments.

Note I – Contingencies

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

Environmental

Various Federal, state and local laws subject property owners or operators to liability for management, and the costs of removal or remediation, of certain potentially hazardous materials present on a property, including lead-based paint, asbestos, polychlorinated biphenyls, petroleum-based fuels, and other miscellaneous materials. Such laws often impose liability without regard to whether the owner or operator knew of, or was responsible for, the release or presence of such materials. The presence of, or the failure to manage or remedy properly, these materials 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 improper management of these materials 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 these materials through a licensed disposal or treatment facility. Anyone who arranges for the disposal or treatment of these materials is potentially liable under such laws for the proper operation of the disposal facility. 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 former property, the Partnership could potentially be responsible for environmental liabilities or costs associated with its former property.

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

None.

Item 9A. 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 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, ~~2010~~2011. 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, ~~2010~~2011, 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 attestation by the Partnership’s registered public accounting firm pursuant to 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 ~~2010~~ 2011 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

HCW Pension Real Estate Fund Limited Partnership (the “Partnership” or the “Registrant”) has no officers or directors. IH, Inc. (the “Managing General Partner”) manages and controls substantially all of the Partnership’s affairs and has general responsibility in all matters affecting its business.

The names and ages of, as well as the positions and offices held by, the present directors and officers 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	3940	Director and Senior Vice President
John Bezzant	4849	Director and Executive Vice President
Ernest M. Freedman	4041	Executive Vice President and Chief Financial Officer
Lisa R. Cohn	4243	Executive Vice President, General Counsel and Secretary
Paul Beldin	3738	Senior Vice President and Chief Accounting Officer
Stephen B. Waters	4950	Senior Director of Partnership Accounting

Steven D. Cordes was appointed as a 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~~Aimco since May 2007. Mr. Cordes joined ~~AIMCO~~Aimco in 2001 as a Vice President of Capital Markets with responsibility for ~~AIMCO~~Aimco’s joint ventures and equity capital markets activity. Prior to joining ~~AIMCO~~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.

John Bezzant was appointed as a Director of the Managing General Partner effective December 16, 2009. Mr. Bezzant was appointed Executive Vice President of the Managing General Partner and ~~AIMCO~~Aimco in January 2011 and prior to that time was a Senior Vice President of the Managing General Partner and ~~AIMCO~~Aimco since joining ~~AIMCO~~Aimco in June 2006. Prior to joining ~~AIMCO~~Aimco, Mr. Bezzant spent over 20 years with Prologis, Inc. and Catellus Development Corporation in a variety of executive positions, including those with responsibility for transactions, fund management, asset management, leasing and operations. Mr. Bezzant brings particular expertise to the Board in the areas of real estate finance, property operations, sales and development.

Ernest M. Freedman was appointed Executive Vice President and Chief Financial Officer of the Managing General Partner and ~~AIMCO~~Aimco in November 2009. Mr. Freedman joined ~~AIMCO~~ 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~~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~~Aimco in December 2007. From January 2004 to December 2007, Ms. Cohn served as Senior Vice President and Assistant General Counsel of ~~AIMCO~~ Aimco. Ms. Cohn joined ~~AIMCO~~Aimco in July 2002 as Vice President and Assistant General Counsel. Prior to joining ~~AIMCO~~Aimco, Ms. Cohn was in private practice with the law firm of Hogan and Hartson LLP.

Paul Beldin joined ~~AIMCO~~Aimco in May 2008 and has served as Senior Vice President and Chief Accounting Officer of ~~AIMCO~~ Aimco and the Managing General Partner since that time. Prior to joining ~~AIMCO~~ Aimco, 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 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 two years as an audit manager in SEC services at Deloitte’s national office.

Stephen B. Waters was appointed Senior Director of Partnership Accounting of ~~AIMCO~~Aimco and the Managing General Partner in June 2009. Mr. Waters has responsibility for partnership accounting with ~~AIMCO~~Aimco and serves as the equivalent of the principal financial officer of the ~~Managing General Partner~~Partnership. Mr. Waters joined ~~AIMCO~~Aimco as a Director of Real Estate Accounting in September 1999 and was appointed Vice President of the Managing General Partner and ~~AIMCO~~Aimco in April 2004. Prior to joining ~~AIMCO~~Aimco, Mr. Waters was a senior manager at Ernst & Young LLP.

The Registrant is not aware of the involvement in any legal proceedings with respect to the directors and executive officers listed in this Item 10.

One or more of the above persons are also directors 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. ~~AIMCO~~Aimco has adopted a code of ethics that applies to such directors and officers that is posted on ~~AIMCO~~Aimco's website (www.~~AIMCO~~Aimco.com). ~~AIMCO~~Aimco's website is not incorporated by reference to this filing.

Item 11. Executive Compensation

Neither the directors nor any of the officers of the Managing General Partner received any remuneration from the Registrant, during the years ended December 31, ~~2010~~2011 and ~~2009~~ 2010.

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 of the Registrant as of December 31, ~~2010~~ 2011.

Entity	Number of Units	Percentage
Cooper River Properties, LLC
(an affiliate of AIMCO)	1,741	11.09%
(an affiliate of Aimco)	1,741	11.10%
AIMCO Properties, L.P.
(an affiliate of AIMCO)	4,409	28.10%
(an affiliate of Aimco)	4,409	28.11%
AIMCO IPLP, L.P.
(an affiliate of AIMCO)	72	0.46%
(an affiliate of Aimco)	72	0.46%
Liquidity Assistance, LLC
(an affiliate of AIMCO)	5	0.03%
(an affiliate of Aimco)	5	0.03%

Cooper River Properties, LLC, AIMCO IPLP, L.P. and Liquidity Assistance, LLC are all indirectly ultimately owned by ~~AIMCO~~Aimco. Their business addresses are 5580 ~~Beattie~~International ~~Place~~Drive, Greenville, SC ~~29601~~29615.

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

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 (i) certain payments to affiliates for services and (ii) reimbursement of certain expenses incurred by affiliates on behalf of the Partnership.

Affiliates of the Managing General Partner ~~receive~~ received 5% of gross receipts from the Partnership's sole property as compensation for providing property management services. The Partnership paid to such affiliates approximately $~~110~~104,000 and $84110,000 for the years ended December 31, ~~2010~~2011 and ~~2009~~2010, respectively, which is included in operating expenses. At December 31, ~~2010 and 2009~~2011, the Partnership was owed approximately $19,000 ~~and $3~~for overpayment of property management fees,~~000~~ which is included in due from affiliates. Payment was received subsequent to December 31, ~~respectively~~2011. At December 31, 2010, the Partnership owed approximately $1,000 of property management fees which iswas included in due to affiliates.

An affiliate of the Managing General Partner earned asset management fees amounting to approximately $3826,000 and $1038,000 for the years ended December 31, ~~2010~~2011 and ~~2009~~2010, respectively, which is included in general and administrative expenses. The asset management fees are calculated based on a percentage of the tangible asset value of the Partnership as defined in the Partnership Agreement. The percentage as stipulated in the Partnership Agreement was 0.50% for both ~~2010~~2011 and ~~2009~~2010. At December 31, ~~2010 and 2009~~2011, the Partnership was owed approximately $2210,000 ~~and $8~~for overpayment of asset management fees which is included in due from affiliates. At December 31,~~000~~ 2010, ~~respectively~~the Partnership owed approximately $22,000 of asset management fees which is included in due to affiliates.

Affiliates of the Managing General Partner charged the Partnership reimbursement of accountable administrative expenses amounting to approximately $3641,000 and $3436,000 for the years ended December 31, ~~2010~~2011 and ~~2009~~2010, respectively, which is included in general and administrative expenses. At December 31, 2010 ~~and 2009~~, the Partnership owed approximately $23,000 ~~and $69,000, respectively,~~ of accountable administrative expenses which is included in due to affiliates. There were no amounts outstanding at December 31, 2011.

In accordance with the Partnership Agreement, AIMCO Properties, L.P., an affiliate of the Managing General Partner advanced the Partnership approximately $220,000 and $216,000 during the ~~year~~years ended December 31, 2011 and 2010, respectively, to assist with real estate taxes, capital expenditures and operating expenses at Lewis Park Apartments. ~~During~~At ~~the year ended~~ December 31, ~~2009~~ 2010, the ~~Managing~~total ~~General~~advances ~~Partner~~and ~~advanced~~accrued ~~the~~interest ~~Partnership~~due ~~approximately $579,000~~ to ~~assist~~AIMCO ~~with operating expenses~~Properties, ~~real~~L.P. ~~estate~~was ~~taxes~~approximately ~~and~~$2,472,000. ~~capital expenditures~~During atthe ~~Lewis~~year ~~Park~~ended ~~Apartments. At~~ December 31, ~~2010~~2011, ~~and~~the ~~2009,~~Partnership repaid the ~~total~~ outstanding advances and accrued interest ~~due~~of ~~to AIMCO Properties, L.P. was~~ approximately $2,~~472~~949,000. ~~and~~There $2were no payments made during the year ended December 31,~~026~~ 2010. There were no outstanding advances or associated accrued interest at December 31,~~000,~~ ~~respectively~~2011. The interest rates charged on the outstanding advances made to the Partnership are based on the prime rate plus a market rate adjustment for similar type loans. Affiliates of the Managing General Partner review the market rate adjustment quarterly. ~~The interest rates on outstanding advances at December 31, 2010 ranged from 9.44% to 18.56%.~~ Interest expense was approximately $~~230~~257,000 and $~~157~~230,000 for the years ended December 31, ~~2010~~2011 and ~~2009~~2010, respectively. 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 sheets, please see its reports filed with the Securities and Exchange Commission.

The Partnership ~~insures~~insured its property up to certain limits through coverage provided by ~~AIMCO~~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~~insured its property above the ~~AIMCO~~Aimco limits through insurance policies obtained by ~~AIMCO~~Aimco from insurers unaffiliated with the Managing General Partner. During the years ended December 31, ~~2010~~2011 and ~~2009~~2010, the Partnership was charged by ~~AIMCO~~Aimco and its affiliates approximately $7262,000 and $3772,000, respectively, for insurance coverage and fees associated with policy claims administration.

In addition to its indirect ownership of the general partner interest in the Partnership, ~~AIMCO~~Aimco and its affiliates owned 6,227 limited partnership units (the "Units") in the Partnership representing 39.6870% of the outstanding Units as of December 31, ~~2010~~2011. A number of these Units were acquired pursuant to tender offers made by ~~AIMCO~~Aimco or its affiliates. It is possible that AIMCO or its affiliates will acquire additional Units 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 Managing General Partner. Although the Managing General Partner owes fiduciary duties to the limited partners of the Partnership, the Managing General Partner also owes fiduciary duties to ~~AIMCO~~Aimco as its sole stockholder. As a result, the duties of the Managing General Partner, as managing general partner, to the Partnership and its limited partners may come into conflict with the duties of the Managing General Partner to ~~AIMCO~~Aimco as its sole stockholder.

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 ~~2011~~2012. The aggregate fees billed for services rendered by Ernst & Young LLP for ~~2010~~2011 and ~~2009~~2010 are described below.

Audit Fees. Fees for audit services totaled approximately $4240,000 and $3842,000 for ~~2010~~2011 and ~~2009~~2010, 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 $79,000 and $67,000 for ~~2010~~2011 and ~~2009~~2010, respectively.

PART IV

Item 15. Exhibits, Financial Statement Schedules

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

~~Balance~~ Statement ~~Sheets~~of atNet Assets in Liquidation - December 31, ~~2010 and 2009~~2011.

~~Statements~~Balance ofSheet ~~Operations~~– ~~for the years ended~~ December 31, 2010 ~~and 2009~~.

Statements of ~~Changes~~Discontinued ~~in Partners'~~Operations ~~Deficit~~- ~~for~~Years ~~the years~~ ended December 31, ~~2010~~2011 and ~~2009~~2010.

Statements of ~~Cash~~Changes ~~Flows~~in ~~for the~~Partners' ~~years~~Capital/Net Assets in Liquidation – Years ended December 31, ~~2010~~2011 and ~~2009~~2010.

Statements of Cash Flows – Years ended December 31, 2011 and 2010.

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.

HCW PENSION REAL ESTATE FUND LIMITED PARTNERSHIP By: HCW General Partner, Ltd., General Partner By: IH, Inc., Managing General Partner By: /s/Steven D. Cordes Steven D. Cordes Senior Vice President By: /s/Stephen B. Waters Stephen B. Waters Senior Director of Partnership Accounting Date: March 2820, ~~2011~~2012

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/John Bezzant	Director and Executive	Date: March 2820, ~~2011~~2012
John Bezzant	Vice President
/s/Steven D. Cordes	Director and Senior	Date: March 2820, ~~2011~~2012
Steven D. Cordes	Vice President
/s/Stephen B. Waters	Senior Director of Partnership	Date: March 2820, ~~2011~~2012
Stephen B. Waters	Accounting

HCW Pension Real Estate Limited Partnership

EXHIBIT INDEX

Exhibit

3 & 4 Limited Partnership Agreement (Incorporated by reference to Registration Statement No. 2-91006 on Form S-11 filed by Registrant).

10.~~4 Multifamily~~7 Purchase ~~Note~~and Sale Contract, dated ~~August~~September 2813, ~~2000~~2011, bybetween ~~and~~HCW ~~between~~Pension ~~the~~Real Estate Fund Limited Partnership, a Massachusetts limited partnership, and ~~GMAC Commercial~~Capstone ~~Mortgage~~Development ~~Corporation~~Corp., aan ~~California~~Alabama ~~Corporation~~corporation, incorporated by reference to ~~Exhibit 10.4 to~~ the Partnership'’s ~~Quarterly~~Current Report on Form 108-~~QSB for~~K ~~the~~dated ~~period ended~~ September 3013, ~~2000~~2011.

10.8 First Amendment to Purchase and Sale Contract between HCW Pension Real Estate Fund Limited Partnership, a Massachusetts limited partnership and CDC-Carbondale, LLC, an Alabama limited liability company, dated November 29, 2011, incorporated by reference to the Partnership’s Current Report on Form 8-K dated November 29, 2011.

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.

101 XBRL (Extensible Business Reporting Language). The following materials from HCW Pension Real Estate Fund Limited Partnership’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011, formatted in XBRL: (i) statement of net assets in liquidation (ii) balance sheet, (iii) statements of discontinued operations, (iv) statements of changes in partners’ capital/net assets in liquidation, (v) statements of cash flows, and (vi) notes to financial statements. (1)

(1) As provided in Rule 406T of Regulation S-T, this information is furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934.

Filing Compare · HCW PENSION REAL ESTATE FUND LTD PARTNERSHIP