10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2013

OR

o 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 1-11149

CAPITAL REALTY INVESTORS, LTD.

(Exact Name of Issuer as Specified in its Charter)

District of Columbia	52-1219926
(State of Incorporation)	(I.R.S. Employer Identification No.)
11200 Rockville Pike
Rockville, MD	20852
(Address of Principal Executive Offices)	(ZIP Code)

(301) 468-9200

(Issuer’s Telephone Number, Including Area Code)

____________________

 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        þ           No           ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Date 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).

Yes     ¨    No     þ

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.  See definition of accelerated filer and large accelerated filer@ in Rule 12b-2 of the Exchange Act.

Large accelerated filer    o Accelerated filer  o  Non-accelerated filer o Smaller reporting company þ

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes           ¨           No           þ

The units of limited partner interest of the Registrant are not traded in any market.  Therefore, the units of limited partner interest had neither a market selling price nor an average bid or asked price. As of June 7, 2013, the issuer had 24,747 outstanding units of limited partner interest.

CAPITAL REALTY INVESTORS, LTD.

INDEX TO FORM 10-Q

FOR THE QUARTER ENDED MARCH 31, 2013

	Page
Part I FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Balance Sheets at March 31, 2013 and December 31, 2012	1
Condensed Statements of Operations and Accumulated Gains for the three months ended March 31, 2013 and 2012	2
Condensed Statements of Cash Flows for the three months ended March 31, 2013 and 2012	3
Notes to Condensed Financial Statements	4
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	10
Item 3. Quantitative and Qualitative Disclosure about Market Risk	11
Item 4. Controls and Procedures	12
Part II. OTHER INFORMATION
Item 1. Legal Proceedings	II-1
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	II-1
Item 3. Defaults Upon Senior Securities	II-1
Item 4. Mine Safety Disclosures	II-1
Item 5. Other Information	II-1
Item 6. Exhibits	II-2
Signatures	II-3

CAPITAL REALTY INVESTORS, LTD.

CONDENSED BALANCE SHEETS

(Unaudited)

ASSETS

	March 31,			December 31,
	2013			2012
Investments in and advances to partnerships	$	1,701,755		$	1,597,027
Cash and cash equivalents	1,674,145			7,674,174
Note receivable and accrued interest, net of
allowance of $619,000	—			—
Acquisitions fees, principally paid to related parties,
net of accumulated amortization of $44,839 and $44,471, respectively	14,079			14,447
Property purchase costs,
net of accumulated amortization of $20,639 and $20,471, respectively	6,222			6,390
Total assets	$	3,396,201		$	9,292,038
LIABILITIES AND PARTNERS’ CAPITAL
Accounts payable and accrued expenses	$	53,364		$	43,602
Total liabilities	53,364			43,602
Commitments and contingencies	—			—
Partners' capital:
Capital paid in :
General Partners	14,000			14,000
Limited Partners	24,837,000			24,837,000
	24,851,000			24,851,000
Less:
Accumulated distributions to partners	(22,190,962		)	(16,251,682		)
Offering costs	(2,689,521		)	(2,689,521		)
Accumulated gains	3,372,320			3,338,639
Total partners' capital	3,342,837			9,248,436
Total liabilities and partners' capital	$	3,396,201		$	9,292,038

The accompanying notes are an integral part

of these condensed financial statements.

1

CAPITAL REALTY INVESTORS, LTD.

CONDENSED STATEMENTS OF OPERATIONS

AND ACCUMULATED GAINS

(Unaudited)

	For the periods ended March 31,
	2013			2012
Share of income from partnerships	$	128,607		$	339,459
Other revenue and expenses:
Revenue:
Interest	1,959			3,583
	1,959			3,583
Expenses:
General and administrative	60,547			65,325
Professional fees	12,000			41,500
Management fees	23,802			23,802
Amortization of deferred costs	536			1,267
	96,885			131,894
Total other revenue and expenses	(94,926		)	(128,311		)
Net income	33,681			211,148
Accumulated gains, beginning of period	3,338,639			1,571,586
Accumulated gains, end of period	$	3,372,320		$	1,782,734
Net income allocated to
General Partners (3%)	$	1,010		$	6,335
Net income allocated to
Limited Partners (97%)	$	32,671		$	204,813
Net income per unit of Limited Partner
Interest, based on 24,747 units outstanding	$	1.32		$	8.28

The accompanying notes are an integral part

of these condensed financial statements.

2

CAPITAL REALTY INVESTORS, LTD.

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the periods ended March 31,
	2013			2012
Cash flows from operating activities:
Net income	$	33,681		$	211,148
Adjustments to reconcile net income to net cash
used in operating activities:
Share of income from partnerships	(128,607		)	(339,459		)
Receipt of distributions from partnerships	23,879
Amortization of deferred costs	536			1,267
Increase (decrease) in accounts payable and accrued
expenses	9,762			(6,688		)
Net cash used in operating activities	(60,749		)	(133,732		)
Cash flows from financing activities:
Distributions to limited partners	(5,939,280		)	—
Net cash used in financing activities	(5,939,280		)	—
Net decrease in cash and cash equivalents	(6,000,029		)	(133,732		)
Cash and cash equivalents, beginning of period	7,674,174			2,194,867
Cash and cash equivalents, end of period	$	1,674,145		$	2,061,135

The accompanying notes are an integral part

of these condensed financial statements.

3

CAPITAL REALTY INVESTORS, LTD.

NOTES TO CONDENSED FINANCIAL STATEMENTS

March 31, 2013 and 2012

(Unaudited)

1.           ORGANIZATION

Capital Realty Investors, Ltd. (the “Partnership”) is a limited partnership which was formed under the District of Columbia Limited Partnership Act on June 1, 1981. The Partnership was formed for the purpose of raising capital by offering and selling limited partnership interests and then investing in limited partnerships ("Local Partnerships"), each of which owns and operates an existing rental housing project which was originally financed and/or operated with one or more forms of rental assistance or financial assistance from the U.S. Department of Housing and Urban Development ("HUD"). The Partnership originally made investments in eighteen Local Partnerships. As of March 31, 2013, the Partnership retained investments in three Local Partnerships.

The General Partners of the Partnership are C.R.I., Inc. (“CRI”), which is the Managing General Partner, current and former shareholders of CRI and Rockville Pike Associates, Ltd., a Maryland limited partnership, which includes the shareholders of CRI and certain former officers and employees of CRI. Services for the Partnership are performed by CRI, as the Partnership has no employees of its own.

2.    BASIS OF PRESENTATION

The accompanying unaudited condensed financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP) and with the instructions to Form 10-Q. Certain information and accounting policies and footnote disclosures normally included in financial statements prepared in conformity with US GAAP have been condensed or omitted pursuant to such instructions. These condensed financial statements should be read in conjunction with the financial statements and notes thereto included in the Partnership's Annual Report on Form 10-K at December 31, 2012.

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other bodies that may have an impact on the Partnership's financials reporting or accounting. The Partnership does not believe that any such recently issued pronouncement has had or will have a material effect on the Partnership's financial statements.

In the opinion of CRI, the Managing General Partner of the Partnership, the accompanying unaudited financial statements reflect all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the financial position of the Partnership as of March 31, 2013, and the results of its operations and its cash flows for the three month periods ended March 31, 2013 and 2012. The results of operations for the interim period ended March 31, 2013 are not necessarily indicative of the results to be expected for the full year.

3.    INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS

At March 31, 2013 and 2012, the Partnership had limited partnership equity interests in three and six Local Partnerships, respectively, owning three and six apartment complexes, respectively.

A schedule of the apartment complexes owned by the Local Partnerships at March 31, 2013 in which the Partnership is invested is provided below:

PROPERTY	CITY	STATE	UNITS
Chestnut	Fresno	CA	90
New Sharon Woods	Deptford	NJ	50
Westwood Village	New Haven	CT	48

Under the terms of the Partnership's investment in each Local Partnership, the Partnership was required to make capital contributions to the Local Partnerships. These contributions were payable in installments upon each Local Partnership achieving specified levels

4

CAPITAL REALTY INVESTORS, LTD.

NOTES TO CONDENSED FINANCIAL STATEMENTS – CONTINUED

March 31, 2013 and 2012

(Unaudited)

of construction and/or operations. At March 31, 2013 and 2012, all such capital contributions had been paid to the Local Partnerships.

a.    Summarized financial information

The combined statements of operations for the three and six Local Partnerships in which the Partnership was invested as of March 31, 2013 and 2012, respectively, follow. The combined statements are compiled based on estimates from the audited financial statements of the Local Partnerships at December 31, 2012 and 2011 and these estimates are unaudited. The information for each of the periods is presented separately for those Local Partnerships which have investment basis (equity method), and for those Local Partnerships which have cumulative losses in excess of the amount of the Partnership's investments in those Local Partnerships (equity method suspended). Appended after the combined statements is information concerning the Partnership's share of income from partnerships related to cash distributions recorded as income, and related to the Partnership's share of income from Local Partnerships.

5

CAPITAL REALTY INVESTORS, LTD.

NOTES TO CONDENSED FINANCIAL STATEMENTS – CONTINUED

March 31, 2013 and 2012

(Unaudited)

For the three months ended
March 31,
	2013									2012
	Equity Method			Suspended				Total		Equity Method			Suspended			Total
Number of Local Partnerships	2		(a)	1			(b)	3		3		(c)	3		(d)	6
Revenue:
Rental	$	401,819		$	165,558			$	567,377	$	921,244		$	323,352		$	1,244,596
Other	12,958			2,311				15,269		90,316			6,163			96,479
Total revenue	414,777			167,869				582,646		1,011,560			329,515			1,341,075
Expenses:
Operating	258,614			114,333				372,947		505,639			243,031			748,670
Interest	7,456			36,878				44,334		57,568			40,883			98,451
Depreciation and amortization	24,834			17,340				42,174		101,943			32,441			134,384
Total expenses	290,904			168,551				459,455		665,150			316,355			981,505
Net income (loss)	$	123,873		$	(682	)		$	123,191	$	346,410		$	13,160		$	359,570
Cash distributions	$	16,660		$	7,219			$	23,879	$	—		$	—		$	—
Cash distributions recorded as reduction
of investments in partnerships	$	16,660		$	—			$	16,660	$	—		$	—		$	—
Cash distribution recorded as income	$	—		$	7,219			$	7,219	$	—		$	—		$	—
Partnership’s share of Local Partnership net income	121,388			—				121,388		339,459			—			339,459
Share of income from partnerships	$	121,388		$	7,219			$	128,607	$339,459			$	—		$	339,459

(a)     Westwood Village, Chestnut

(b)    New Sharon Woods

(c)    Capital Commons, Chestnut, Westwood Village

(d)    Hillview Terrace, New Sharon Woods, Shallowford Oaks

Cash distributions received from Local Partnerships which have investment basis (equity method) are recorded as a reduction of investments in partnerships and as cash receipts on the respective balance sheets. Cash distributions received from Local

6

CAPITAL REALTY INVESTORS, LTD.

NOTES TO CONDENSED FINANCIAL STATEMENTS – CONTINUED

March 31, 2013 and 2012

(Unaudited)

Partnerships which have cumulative losses in excess of the amount of the Partnership's investments in those Local Partnerships (equity method suspended) are recorded as share of income from partnerships on the respective statements of operations and as cash receipts on the respective balance sheets. As of March 31, 2013, the Partnership's share of cumulative losses to date for one of three Local Partnerships exceeded the amount of the Partnership's investment in that Local Partnership by $2,898,788. As of

March 31, 2012, the Partnership's share of cumulative losses to date for three of six Local Partnerships exceeded the amount of the Partnership's investments in those Local Partnerships by $3,343,037. As the Partnership has no further obligation to advance funds or provide financing to these Local Partnerships, the excess losses have not been reflected in the accompanying condensed financial statements.

b.    Property Matters

On December 19, 2002, the Local Partnership which owned the Baltic Plaza apartments sold the property. Cash proceeds received by the Partnership totaled $2,053,358.  As part of the consideration, the Local Partnership took back a 30-year purchase money note in the principal amount of $2,300,000, collateralized by the partnership interests of the general partner of the maker/purchaser.  The Local Partnership assigned the purchase money note to an escrow for the benefit of its partners (with CRI serving as escrow agent), so that the Local Partnership entity could be dissolved.  The purchase money note bears interest at 4.60% compounded annually, and requires a minimum annual payment equal to 50% of the maker/purchaser’s annual audited cash flow, as defined, with the balance of unpaid principal, if any, plus accrued interest, due and payable on December 31, 2032.  As of March 31, 2013 and 2012, no payments of principal or interest have been received on this purchase money note.  The Partnership’s 98% beneficial interest in this purchase money note is reflected in the accompanying balance sheets at March 31, 2013 and 2012, at its original principal balance of $2,300,000 plus estimated accrued but unpaid interest, all discounted to $619,000 to provide for an effective interest rate commensurate with the investment risk.  The resulting discounted amount has been fully reserved due to uncertainty of collection of the purchase money note and related interest.

The Partnership entered an agreement to sell the note to an affiliate of the SP Baltic Plaza, LP for a sale price of $2,000,000. The note sold on April 29, 2013. The Partnership received $1,960,000 in proceeds from the sale of the note. CRICO housing Partnership received $39,800 and C.R.H.C. of Atlantic City, Inc received $200, which represents their interest of 1.99% and .01%, respectively.

On November 1, 2011, the mortgage holder for Shallowford Oaks, LSREF2 Chalk 2, LLC, foreclosed on the property and became the new owner of the property pursuant to a non-judicial foreclosure sale under the power of sale clause contained in its law documents. During 2012, the Local Partnership was wound up, and the Partnership no longer held a limited Partnership interest in this Local Partnership at December 31, 2012.

c.     Pending and Completed Sales

Pending Sales

On June 29, 2012, the Partnership entered into a partnership purchase agreement to sell their partnership interest in New Sharon Woods for $1. The Partnership's investment basis in this Local Partnership at March 31, 2013 was $0. The sale closed on June 4, 2013.

On August 2, 2012, the Local Partnership that owns Chestnut Apartments entered into a purchase and sale agreement to sell the Chestnut Apartments for $5,440,000. The Partnership's investment basis in this Local Partnership at March 31, 2013 was $1,208,766. The Partnership expects to receive approximately $3,500,000 as a result of the sale. The sale is expected to close during the third quarter of 2013.

On August 2, 2012, the Local Partnership that owns Westwood Village entered into a purchase and sale agreement to sell Westwood Village for $3,085,000. The Partnership's investment basis in this Local Partnership at March 31, 2013 was $492,989. The Partnership expects to receive $2,150,000 as a result of the sale. The sale is expected to close during the third quarter of 2013.

Completed Sales

On August 29, 2012, the Partnership sold its limited partner interest in Traverse City Elderly, LP, which owns the Hillview Terrace Apartments for $299,990.

7

CAPITAL REALTY INVESTORS, LTD.

NOTES TO CONDENSED FINANCIAL STATEMENTS – CONTINUED

March 31, 2013 and 2012

(Unaudited)

On December 17, 2012, the Partnership sold its limited partner interest in Capital Senior Limited Dividend Housing Association Limited Partnership, which owns the Capital Commons Senior Apartments for $6,245,328.

d.    Investment Reconciliation

The following is a reconciliation of investments in partnerships at March 31, 2013.

Investments in partnerships at December 31, 2012	$	1,597,027
Distributions	(23,879		)
Share of income from partnerships	128,607
Investments in partnerships at March 31, 2013	$	1,701,755

4.           RELATED PARTY TRANSACTIONS

In accordance with the terms of the Partnership Agreement, the Partnership is obligated to reimburse the Managing General Partner or its affiliates for certain direct expenses and payroll expenses in connection with managing the Partnership.  Payroll expenses are reimbursed at a factor of 1.75 times base salary.  For the three months ended March 31, 2013 and 2012, the Partnership paid $27,875 and $21,145 respectively, to the Managing General Partner or its affiliates as direct reimbursement of expenses incurred on behalf of the Partnership.  In addition, certain employees of the Managing General Partner provided legal and tax accounting services to the Partnership.  These are reimbursed comparable to third party service charges.  For the three months ended March 31, 2013 and 2012, the Partnership paid $23,373 and $32,417, respectively, to the Managing General Partner or its affiliates for these services.  Such reimbursed expenses are included in the accompanying condensed statements of operations as general and administrative expenses.

In accordance with the terms of the Partnership Agreement, the Partnership is obligated to pay the Managing General Partner an annual incentive management fee (Management Fee) after all other expenses of the Partnership are paid.  The amount of the Management Fee shall be equal to 0.25% of original invested assets, as defined in the Partnership Agreement, and shall be payable from the Partnership's cash available for distribution, as defined in the Partnership Agreement, as of the end of each calendar year, as follows:

(i) First, on a monthly basis as an operating expense before any distributions to limited partners in an annual amount equal to $95,208; and

(ii) Second, after distributions to the limited partners in the amount of one percent of the gross proceeds of the offering, the balance of such 0.25% of invested assets.

For each of the three months ended March 31, 2013 and 2012, the Partnership paid the Managing General Partner a Management Fee of $23,802.

5.    CASH DISTRIBUTIONS FROM PARTNERSHIPS AND CASH DISTRIBUTIONS TO LIMITED PARTNERS

For the three month period ended March 31, 2013 , the Partnership received $23,879 from two of the three Limited Partnerships. For the three month period ended March 31, 2013, the Partnership paid a cash distribution totaling $5,939,280 to the limited partners.

8

CAPITAL REALTY INVESTORS, LTD.

NOTES TO CONDENSED FINANCIAL STATEMENTS – CONTINUED

March 31, 2013 and 2012

(Unaudited)

6.           CASH CONCENTRATION RISK

Financial instruments that potentially subject the Partnership to concentrations of risk consist primarily of cash. The Partnership maintains five cash accounts with two banks.  As of March 31, 2013, the uninsured portion of the cash balances was $1,428,863.

7.    SIGNIFICANT SUBSIDIARIES

Chestnut	2013		2012
Total Assets	$	1,657,643	$	1,498,853
Total Liabilities	385,170		751,978
Revenue	214,018		215,679
Net Income	54,916		52,342

8.    SUBSEQUENT EVENTS

Events that occur after the balance sheet date but before the financial statements were available to be issued must be evaluated for recognition or disclosure. The effects of subsequent events that provide evidence about conditions that existed at the balance sheet date are recognized in the accompanying financial statements. Subsequent events which provide evidence about conditions that existed after the balance sheet date require disclosure in the accompanying notes. Management evaluated the activity of the Partnership and concluded that no subsequent events have occurred that would require recognition in the financial statements. See note 3.b. for disclosure of subsequent events.

9

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

and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations section is based on the financial statements, and contains information that may be considered forward looking, including statements regarding the effect of governmental regulations. Actual results may differ materially from those described in the forward looking statements and will be affected by a variety of factors including national and local economic conditions, the general level of interest rates, governmental regulations affecting the Partnership and interpretations of those regulations, the competitive environment in which the Partnership operates, and the availability of working capital.

Critical Accounting Policies and Estimates

The Partnership has disclosed its selection and application of significant accounting policies in Note 1 of the notes to financial statements included in the Partnership's Annual Report on Form 10-K at December 31, 2012. The Partnership accounts for its investments in partnerships (Local Partnerships) by the equity method because the Partnership is a limited partner in the Local Partnerships. As such the Partnership has no control over the selection and application of accounting policies, or the use of estimates, by the Local Partnerships. Environmental and operational trends, events and uncertainties that might affect the properties owned by the Local Partnerships would not necessarily have a significant impact on the Partnership's application of the equity method of accounting, since the equity method has been suspended for one Local Partnership which has cumulative losses in excess of the amount of the Partnership's investments in that Local Partnership. The Partnership reviews property assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. Recoverability is measured by a comparison of the carrying amount of an asset to the estimated future net cash flows expected to be generated by the asset. If an asset were determined to be impaired, its basis would be adjusted to fair value through the recognition of an impairment loss.

Generally accepted accounting principles (GAAP) in the United States provides guidance on when a company should include the assets, liabilities, and activities of a variable interest entity (VIE) in its financial statements and when it should disclose information about its relationship with a VIE.  Generally, a variable interest entity, or VIE, is an entity with one or more of the following characteristics:  (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support; (b) as a group the holders of the equity investment at risk lack (i) the ability to make decisions about an entity's activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests and substantially all of the entity's activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights.  The primary beneficiary of a VIE is generally the entity that will receive a majority of the VIE's expected losses, receive a majority of a VIE's expected residual returns, or both.

The Partnership does not consolidate the Partnership's interests in these VIE's under this guidance, as it is not considered to be the primary beneficiary. Accounting guidance requires continued reconsideration as to the consideration of the primary beneficiary. The Partnership currently records the amount of its investment in these partnerships as an asset on its balance sheet, recognizes its share of partnership income or losses in the statements of operations, and discloses how it accounts for material types of these investments in its financial statements.

The Partnership's balance in investment in Local Partnerships represents its maximum exposure to loss.  The Partnership's exposure to loss on these partnerships is mitigated by the condition and financial performance of the underlying properties as well as the strength of the local general partners.

Financial Condition/Liquidity

The Partnership's liquidity, with unrestricted cash resources of $1,674,145 as of March 31, 2013, along with anticipated future cash distributions from the Local Partnerships, is expected to be adequate to meet its current and anticipated operating cash needs. As of June 7, 2013, there were no material commitments for capital expenditures.

The Partnership closely monitors its cash flow and liquidity position in an effort to ensure that sufficient cash is available for operating requirements. For the three month period ended March 31, 2013, existing cash resources were adequate to support net cash used in operating activities. Cash and cash equivalents decreased $6,000,029 during the three month period ended March 31, 2013, primarily due to the distribution paid to the limited partners during the first quarter of 2013.

10

Results of Operations

The Partnership recognized a decrease in net income of $177,467 for the three month period ended March 31, 2013 as compared to 2012, primarily due to decrease in the share of income from the partnerships.

For financial reporting purposes, the Partnership, as a limited partner in the Local Partnerships, does not record losses from the Local Partnerships in excess of its investment to the extent that the Partnership has no further obligation to advance funds or provide financing to the Local Partnerships. As a result, the Partnership's share of income from one Local Partnership for the three month period ended March 31, 2013 did not include losses of $669 , compared to excluded losses of $4,775 for the three month period ended March 31, 2012.

No other significant changes in the Partnership's operations have taken place during the three month period ended March 31, 2013.

Certain states may assert claims against the Partnership for failure to withhold and remit state income tax on operating profit or where the sale(s) of property in which the Partnership was invested failed to produce sufficient cash proceeds with which to pay the state tax and/or to pay statutory partnership filing fees. The Partnership is unable to quantify the amount of such potential claims at this time. The Partnership has consistently advised its Partners that they should consult with their tax advisors as to the necessity of filing non-resident returns in such states with respect to their proportional taxes due.

Item 3.             Quantitative and Qualitative Disclosure About Market Risk

None.

11

Item 4.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. A control system, no matter how well conceived and operated, can provide only reasonable assurance that the objectives of the control system are met. 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 not effective to ensure that material information required to be disclosed in the Partnership's periodic report filings with the SEC is recorded, processed, summarized and reported within the time frame specified by the SEC's rules and forms, consistent with the definition of "disclosure controls and procedures" under Securities and Exchange Act of 1934.

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 fiscal quarter to which this report relates that has materially affected, or is reasonably likely to materially affect, the Partnership's internal control over financial reporting.

12

Item 1.Legal Proceedings

The Partnership is unaware of any pending or outstanding litigation involving it or the underlying investment property of the Local Partnerships in which the Partnership invests that are not of a routine nature arising in the ordinary course of business or that would have a material adverse effect on the business.

Item 2.         Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3.         Default Upon Senior Securities

None.

Item 4.         Mine Safety Disclosures

None.

Item 5.        Other Information

There has not been any information required to be disclosed in a report on Form 8-K during the quarter ended March 31, 2013, but not reported, whether or not otherwise required by this Form 10-Q at March 31, 2013.

There is no established market for the purchase and sale of units of limited partner interest (Units) in the Partnership, although various informal secondary market services exist. Due to the limited markets, however, investors may be unable to sell or otherwise dispose of their Units.

II-1

Item 6.        Exhibits

Exhibit No. Description

31.1	Certification of Principal Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Principal Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32	Certification of Principal Executive Officer and Principal Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

All other items are not applicable.

II-2

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	CAPITAL REALTY
		INVESTORS, LTD.
	(Registrant)
June 7, 2013	by:	/s/ William B. Dockser
DATE		William B. Dockser,
		Director, Chairman of the Board
		and Treasurer
		Principal Executive Officer)

In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

June 7, 2013	by:	/s/ H. William Willoughby
DATE		H. William Willoughby
		Director, President, Secretary,
		Principal Financial Officer and
			Principal Accounting Officer

II-3

EX-31

EXHIBIT 31.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, William B. Dockser, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended March 31, 2013, of CAPITAL REALTY INVESTORS, LTD.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

	CAPITAL REALTY INVESTORS, LTD.
	(Registrant)
	by:		C.R.I., Inc.
			Managing General Partner
June 7, 2013		by:	/s/ William B. Dockser
DATE			William B. Dockser,
			Director, Chairman of the Board
			and Treasurer
			(Principal Executive Officer)

This certification is made solely for purpose of 18 U.S.C. Section 1350, subject to the knowledge standard contained therein, and not for any other purpose.

EXHIBIT 31.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, H. William Willoughby, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended March 31, 2013, of CAPITAL REALTY INVESTORS, LTD.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

	CAPITAL REALTY INVESTORS, LTD.
	(Registrant)
	by:		C.R.I., Inc.
			Managing General Partner
June 7, 2013		by:	/s/ H. William Willoughby
DATE			H. William Willoughby
			Principal Financial Officer and
			Principal Accounting Officer

This certification is made solely for purpose of 18 U.S.C. Section 1350, subject to the knowledge standard contained therein, and not for any other purpose.

EX-32

EXHIBIT 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Capital Realty Investors, LTD. (the “Registrant”) on Form 10-Q for the quarter ended March 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), we, the undersigned, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The quarterly report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the quarterly report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

	CAPITAL REALTY INVESTORS, LTD.
	(Registrant)
	by:		C.R.I., Inc.
			Managing General Partner
June 7, 2013		by:	/s/ William B. Dockser
DATE			William B. Dockser,
			Director, Chairman of the Board
			and Treasurer
			(Principal Executive Officer)
June 7, 2013		by:	/s/ H. William Willoughby
DATE			H. William Willoughby,
			Director, President, Secretary,
			Principal Financial Officer and
			Principal Accounting Officer

XML

Significant Subsidiaries (Tables)

3 Months Ended

Mar. 31, 2013

Equity Method Investments, Summarized Financial Information [Abstract]

Summarized financial information

Chestnut	2013		2012
Total Assets	$	1,657,643	$	1,498,853
Total Liabilities	385,170		751,978
Revenue	214,018		215,679
Net Income	54,916		52,342

XML

Condensed Statements of Operations and Accumulated Gains (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Income Statement [Abstract]
Share of income from partnerships	$ 128,607	$ 339,459
Revenue:
Interest	1,959	3,583
Other Revenue	1,959	3,583
Expenses:
General and administrative	60,547	65,325
Professional fees	12,000	41,500
Management fees	23,802	23,802
Amortization of deferred costs	536	1,267
Total expenses	96,885	131,894
Total other revenue and expenses	(94,926)	(128,311)
Net income	33,681	211,148
Accumulated gains, beginning of period	3,338,639	1,571,586
Accumulated gains, end of period	3,372,320	1,782,734
Net income allocated to General Partners (3%)	1,010	6,335
Net income allocated to Limited Partners (97%)	$ 32,671	$ 204,813
Net income per unit of Limited Partner Interest, based on 24,747 units outstanding	1.32	8.28

XML

Related Party Transactions

3 Months Ended

Mar. 31, 2013

Related Party Transactions [Abstract]

Related Party Transactions

 RELATED PARTY TRANSACTIONS

In accordance with the terms of the Partnership Agreement, the Partnership is obligated to reimburse the Managing General Partner or its affiliates for certain direct expenses and payroll expenses in connection with managing the Partnership.  Payroll expenses are reimbursed at a factor of 1.75 times base salary.  For the three months ended March 31, 2013 and 2012, the Partnership paid $27,875 and $21,145 respectively, to the Managing General Partner or its affiliates as direct reimbursement of expenses incurred on behalf of the Partnership.  In addition, certain employees of the Managing General Partner provided legal and tax accounting services to the Partnership.  These are reimbursed comparable to third party service charges.  For the three months ended March 31, 2013 and 2012, the Partnership paid $23,373 and $32,417, respectively, to the Managing General Partner or its affiliates for these services.  Such reimbursed expenses are included in the accompanying condensed statements of operations as general and administrative expenses.

In accordance with the terms of the Partnership Agreement, the Partnership is obligated to pay the Managing General Partner an annual incentive management fee (Management Fee) after all other expenses of the Partnership are paid.  The amount of the Management Fee shall be equal to 0.25% of original invested assets, as defined in the Partnership Agreement, and shall be payable from the Partnership's cash available for distribution, as defined in the Partnership Agreement, as of the end of each calendar year, as follows:

(i) First, on a monthly basis as an operating expense before any distributions to limited partners in an annual amount equal to $95,208; and

(ii) Second, after distributions to the limited partners in the amount of one percent of the gross proceeds of the offering, the balance of such 0.25% of invested assets.

For each of the three months ended March 31, 2013 and 2012, the Partnership paid the Managing General Partner a Management Fee of $23,802.

XML

Related Party Transactions (Details) (Managing General Partner [Member], USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Related Party Transaction [Line Items]
Payroll expenses reimbursement, base salary factor	1.75
Reimbursement of payroll expenses	$ 27,875	$ 21,145
Percent of invested assets Management Fee shall be equal to	0.25%
Annual management fee	95,208
Distributions to limited partners, percent of gross proceeds of the offering	1.00%
Management fee	23,802	23,802
Professional Fees [Member]
Related Party Transaction [Line Items]
Related party expenses	$ 23,373	$ 32,417

XML

Organization (Details)	3 Months Ended
	Mar. 31, 2013 partnership
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of original Local Partnership investments	18
Number of Local Partnership investments	3

XML

Significant Subsidiaries (Details) (Chestnut Apartments [Member], USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Chestnut Apartments [Member]
Schedule of Equity Method Investments [Line Items]
Total Assets	$ 1,657,643	$ 1,498,853
Total Liabilities	385,170	751,978
Revenue	214,018	215,679
Net Income	$ 54,916	$ 52,342

XML

Cash Concentration Risk (Details) (USD $)	Mar. 31, 2013 bank account
Risks and Uncertainties [Abstract]
Number of cash accounts maintained by Partnership	5
Number of banks	2
Uninsured portion of cash	$ 1,428,863

XML

Cash Distributions From Partnerships and Cash Distributions to Limited Partners (Details) (USD $)	3 Months Ended
	Mar. 31, 2013 partnership
Partners' Capital Notes [Abstract]
Cash distributions	$ 23,879
Distributions received, number of Limited Partnerships	2
Cash distributions paid to limited partners	$ 5,939,280

XML

Statements of Cash Flows (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Cash flows from operating activities:
Net income	$ 33,681	$ 211,148
Adjustments to reconcile net loss income to net cash used in operating activities:
Share of income from partnerships	(128,607)	(339,459)
Receipt of distributions from partnerships	23,879
Amortization of deferred costs	536	1,267
(Increase) decrease in accounts payable and accrued expenses	9,762	(6,688)
Net cash used in operating activities	(60,749)	(133,732)
Cash flows from financing activities:
Distributions to limited partners	(5,939,280)	0
Net cash used in financing activities	(5,939,280)	0
Net decrease in cash and cash equivalents	(6,000,029)	(133,732)
Cash and cash equivalents, beginning of period	7,674,174	2,194,867
Cash and cash equivalents, end of period	$ 1,674,145	$ 2,061,135

XML

Basis of Presentation

3 Months Ended

Mar. 31, 2013

Accounting Policies [Abstract]

Basis of Presentation

BASIS OF PRESENTATION

The accompanying unaudited condensed financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP) and with the instructions to Form 10-Q. Certain information and accounting policies and footnote disclosures normally included in financial statements prepared in conformity with US GAAP have been condensed or omitted pursuant to such instructions. These condensed financial statements should be read in conjunction with the financial statements and notes thereto included in the Partnership's Annual Report on Form 10-K at December 31, 2012.

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other bodies that may have an impact on the Partnership's financials reporting or accounting. The Partnership does not believe that any such recently issued pronouncement has had or will have a material effect on the Partnership's financial statements.

In the opinion of CRI, the Managing General Partner of the Partnership, the accompanying unaudited financial statements reflect all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the financial position of the Partnership as of March 31, 2013, and the results of its operations and its cash flows for the three month periods ended March 31, 2013 and 2012. The results of operations for the interim period ended March 31, 2013 are not necessarily indicative of the results to be expected for the full year.

XML

Cash Distributions From Partnerships and Cash Distributions to Limited Partners

3 Months Ended

Mar. 31, 2013

Partners' Capital Notes [Abstract]

Cash Distributions From Partnerships and Cash Distributions to Limited Partners

CASH DISTRIBUTIONS FROM PARTNERSHIPS AND CASH DISTRIBUTIONS TO LIMITED PARTNERS

For the three month period ended March 31, 2013 , the Partnership received $23,879 from two of the three Limited Partnerships. For the three month period ended March 31, 2013, the Partnership paid a cash distribution totaling $5,939,280 to the limited partners.

XML

Investments In and Advances to Partnerships

3 Months Ended

Mar. 31, 2013

Equity Method Investments and Joint Ventures [Abstract]

Investments In and Advances to Partnerships

INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS

At March 31, 2013 and 2012, the Partnership had limited partnership equity interests in three and six Local Partnerships, respectively, owning three and six apartment complexes, respectively.

A schedule of the apartment complexes owned by the Local Partnerships at March 31, 2013 in which the Partnership is invested is provided below:

PROPERTY	CITY	STATE	UNITS
Chestnut	Fresno	CA	90
New Sharon Woods	Deptford	NJ	50
Westwood Village	New Haven	CT	48

Under the terms of the Partnership's investment in each Local Partnership, the Partnership was required to make capital contributions to the Local Partnerships. These contributions were payable in installments upon each Local Partnership achieving specified levels of construction and/or operations. At March 31, 2013 and 2012, all such capital contributions had been paid to the Local Partnerships.

a.    Summarized financial information

The combined statements of operations for the three and six Local Partnerships in which the Partnership was invested as of March 31, 2013 and 2012, respectively, follow. The combined statements are compiled based on estimates from the audited financial statements of the Local Partnerships at December 31, 2012 and 2011 and these estimates are unaudited. The information for each of the periods is presented separately for those Local Partnerships which have investment basis (equity method), and for those Local Partnerships which have cumulative losses in excess of the amount of the Partnership's investments in those Local Partnerships (equity method suspended). Appended after the combined statements is information concerning the Partnership's share of income from partnerships related to cash distributions recorded as income, and related to the Partnership's share of income from Local Partnerships.

For the three months ended
March 31,
	2013									2012
	Equity Method			Suspended				Total		Equity Method			Suspended			Total
Number of Local Partnerships	2		(a)	1			(b)	3		3		(c)	3		(d)	6
Revenue:
Rental	$	401,819		$	165,558			$	567,377	$	921,244		$	323,352		$	1,244,596
Other	12,958			2,311				15,269		90,316			6,163			96,479
Total revenue	414,777			167,869				582,646		1,011,560			329,515			1,341,075
Expenses:
Operating	258,614			114,333				372,947		505,639			243,031			748,670
Interest	7,456			36,878				44,334		57,568			40,883			98,451
Depreciation and amortization	24,834			17,340				42,174		101,943			32,441			134,384
Total expenses	290,904			168,551				459,455		665,150			316,355			981,505
Net income (loss)	$	123,873		$	(682	)		$	123,191	$	346,410		$	13,160		$	359,570
Cash distributions	$	16,660		$	7,219			$	23,879	$	—		$	—		$	—
Cash distributions recorded as reduction
of investments in partnerships	$	16,660		$	—			$	16,660	$	—		$	—		$	—
Cash distribution recorded as income	$	—		$	7,219			$	7,219	$	—		$	—		$	—
Partnership’s share of Local Partnership net income	121,388			—				121,388		339,459			—			339,459
Share of income from partnerships	$	121,388		$	7,219			$	128,607	$339,459			$	—		$	339,459

(a)     Westwood Village, Chestnut

(b)    New Sharon Woods

(c)    Capital Commons, Chestnut, Westwood Village

(d)    Hillview Terrace, New Sharon Woods, Shallowford Oaks

Cash distributions received from Local Partnerships which have investment basis (equity method) are recorded as a reduction of investments in partnerships and as cash receipts on the respective balance sheets. Cash distributions received from Local Partnerships which have cumulative losses in excess of the amount of the Partnership's investments in those Local Partnerships (equity method suspended) are recorded as share of income from partnerships on the respective statements of operations and as cash receipts on the respective balance sheets. As of March 31, 2013, the Partnership's share of cumulative losses to date for one of three Local Partnerships exceeded the amount of the Partnership's investment in that Local Partnership by $2,898,788. As of

March 31, 2012, the Partnership's share of cumulative losses to date for three of six Local Partnerships exceeded the amount of the Partnership's investments in those Local Partnerships by $3,343,037. As the Partnership has no further obligation to advance funds or provide financing to these Local Partnerships, the excess losses have not been reflected in the accompanying condensed financial statements.

b.    Property Matters

On December 19, 2002, the Local Partnership which owned the Baltic Plaza apartments sold the property. Cash proceeds received by the Partnership totaled $2,053,358.  As part of the consideration, the Local Partnership took back a 30-year purchase money note in the principal amount of $2,300,000, collateralized by the partnership interests of the general partner of the maker/purchaser.  The Local Partnership assigned the purchase money note to an escrow for the benefit of its partners (with CRI serving as escrow agent), so that the Local Partnership entity could be dissolved.  The purchase money note bears interest at 4.60% compounded annually, and requires a minimum annual payment equal to 50% of the maker/purchaser’s annual audited cash flow, as defined, with the balance of unpaid principal, if any, plus accrued interest, due and payable on December 31, 2032.  As of March 31, 2013 and 2012, no payments of principal or interest have been received on this purchase money note.  The Partnership’s 98% beneficial interest in this purchase money note is reflected in the accompanying balance sheets at March 31, 2013 and 2012, at its original principal balance of $2,300,000 plus estimated accrued but unpaid interest, all discounted to $619,000 to provide for an effective interest rate commensurate with the investment risk.  The resulting discounted amount has been fully reserved due to uncertainty of collection of the purchase money note and related interest.

The Partnership entered an agreement to sell the note to an affiliate of the SP Baltic Plaza, LP for a sale price of $2,000,000. The note sold on April 29, 2013. The Partnership received $1,960,000 in proceeds from the sale of the note. CRICO housing Partnership received $39,800 and C.R.H.C. of Atlantic City, Inc received $200, which represents their interest of 1.99% and .01%, respectively.

On November 1, 2011, the mortgage holder for Shallowford Oaks, LSREF2 Chalk 2, LLC, foreclosed on the property and became the new owner of the property pursuant to a non-judicial foreclosure sale under the power of sale clause contained in its law documents. During 2012, the Local Partnership was wound up, and the Partnership no longer held a limited Partnership interest in this Local Partnership at December 31, 2012.

c.     Pending and Completed Sales

Pending Sales

On June 29, 2012, the Partnership entered into a partnership purchase agreement to sell their partnership interest in New Sharon Woods for $1. The Partnership's investment basis in this Local Partnership at March 31, 2013 was $0. The sale closed on June 4, 2013.

On August 2, 2012, the Local Partnership that owns Chestnut Apartments entered into a purchase and sale agreement to sell the Chestnut Apartments for $5,440,000. The Partnership's investment basis in this Local Partnership at March 31, 2013 was $1,208,766. The Partnership expects to receive approximately $3,500,000 as a result of the sale. The sale is expected to close during the third quarter of 2013.

On August 2, 2012, the Local Partnership that owns Westwood Village entered into a purchase and sale agreement to sell Westwood Village for $3,085,000. The Partnership's investment basis in this Local Partnership at March 31, 2013 was $492,989. The Partnership expects to receive $2,150,000 as a result of the sale. The sale is expected to close during the third quarter of 2013.

Completed Sales

On August 29, 2012, the Partnership sold its limited partner interest in Traverse City Elderly, LP, which owns the Hillview Terrace Apartments for $299,990.

On December 17, 2012, the Partnership sold its limited partner interest in Capital Senior Limited Dividend Housing Association Limited Partnership, which owns the Capital Commons Senior Apartments for $6,245,328.

d.    Investment Reconciliation

The following is a reconciliation of investments in partnerships at March 31, 2013.

Investments in partnerships at December 31, 2012	$	1,597,027
Distributions	(23,879		)
Share of income from partnerships	128,607
Investments in partnerships at March 31, 2013	$	1,701,755

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Condensed Balance Sheets (Parentheticals) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]
Allowance for note receivable	$ 619,000	$ 619,000
Accumulated amortization of acquisition fees	44,839	44,471
Accumulated amortization of property purchase costs	$ 20,639	$ 20,471

XML

Subsequent Events

3 Months Ended

Mar. 31, 2013

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTS

Events that occur after the balance sheet date but before the financial statements were available to be issued must be evaluated for recognition or disclosure. The effects of subsequent events that provide evidence about conditions that existed at the balance sheet date are recognized in the accompanying financial statements. Subsequent events which provide evidence about conditions that existed after the balance sheet date require disclosure in the accompanying notes. Management evaluated the activity of the Partnership and concluded that no subsequent events have occurred that would require recognition in the financial statements. See note 3.b. for disclosure of subsequent events.

XML

Condensed Statements of Operations and Accumulated Gains (Parentheticals)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Income Statement [Abstract]
Percentage of Net Income (Loss) Allocated to General Partners	3.00%	3.00%
Percentage of Net Income (Loss) Allocated to Limited Partners	97.00%	97.00%
Weighted Average Limited Partnership Units Outstanding, Basic	24,747	24,747

XML

Condensed Balance Sheets (USD $)	Mar. 31, 2013	Dec. 31, 2012
ASSETS
Investments in and advances to partnerships	$ 1,701,755	$ 1,597,027
Cash and cash equivalents	1,674,145	7,674,174
Note receivable and accrued interest, net of allowance of $619,000	0	0
Acquisition fees, principally paid to related parties, net of accumulated amortization of $44,839 and $44,471, respectively	14,079	14,447
Property purchase costs, net of accumulated amortization of $20,639 and $20,471, respectively	6,222	6,390
Total assets	3,396,201	9,292,038
LIABILITIES AND PARTNERS’ CAPITAL
Accounts payable and accrued expenses	53,364	43,602
Total liabilities	53,364	43,602
Commitments and contingencies	0	0
Capital paid in :
General Partners	14,000	14,000
Limited Partners	24,837,000	24,837,000
Total partners' (deficit) capital	24,851,000	24,851,000
Accumulated distributions to partners	(22,190,962)	(16,251,682)
Offering costs	(2,689,521)	(2,689,521)
Accumulated gains	3,372,320	3,338,639
Total partners' capital	3,342,837	9,248,436
Total liabilities and partners' capital	$ 3,396,201	$ 9,292,038

XML

Investments In and Advances to Partnerships - Investment Reconciliation (Details) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Equity Method Investment, Reconciliation of Investment [Roll Forward]
Investments in partnerships at beginning of year	$ 1,597,027
Cash distributions	(23,879)
Share of income from partnerships	128,607	339,459
Investments in partnerships at end of year	1,701,755
Local Partnerships [Member]
Equity Method Investment, Reconciliation of Investment [Roll Forward]
Investments in partnerships at beginning of year	1,597,027
Cash distributions	(23,879)	0
Share of income from partnerships	128,607	339,459
Investments in partnerships at end of year	$ 1,701,755

XML

Significant Subsidiaries

3 Months Ended

Mar. 31, 2013

Equity Method Investments, Summarized Financial Information [Abstract]

Significant Subsidiaries

SIGNIFICANT SUBSIDIARIES

Chestnut	2013		2012
Total Assets	$	1,657,643	$	1,498,853
Total Liabilities	385,170		751,978
Revenue	214,018		215,679
Net Income	54,916		52,342

XML

Investments In and Advances to Partnerships (Tables)

3 Months Ended

Mar. 31, 2013

Equity Method Investements and Joint Ventures [Abstract]

Schedule of apartment complexes owned

A schedule of the apartment complexes owned by the Local Partnerships at March 31, 2013 in which the Partnership is invested is provided below:

PROPERTY	CITY	STATE	UNITS
Chestnut	Fresno	CA	90
New Sharon Woods	Deptford	NJ	50
Westwood Village	New Haven	CT	48

Summarized financial information, statement of operations

For the three months ended
March 31,
	2013									2012
	Equity Method			Suspended				Total		Equity Method			Suspended			Total
Number of Local Partnerships	2		(a)	1			(b)	3		3		(c)	3		(d)	6
Revenue:
Rental	$	401,819		$	165,558			$	567,377	$	921,244		$	323,352		$	1,244,596
Other	12,958			2,311				15,269		90,316			6,163			96,479
Total revenue	414,777			167,869				582,646		1,011,560			329,515			1,341,075
Expenses:
Operating	258,614			114,333				372,947		505,639			243,031			748,670
Interest	7,456			36,878				44,334		57,568			40,883			98,451
Depreciation and amortization	24,834			17,340				42,174		101,943			32,441			134,384
Total expenses	290,904			168,551				459,455		665,150			316,355			981,505
Net income (loss)	$	123,873		$	(682	)		$	123,191	$	346,410		$	13,160		$	359,570
Cash distributions	$	16,660		$	7,219			$	23,879	$	—		$	—		$	—
Cash distributions recorded as reduction
of investments in partnerships	$	16,660		$	—			$	16,660	$	—		$	—		$	—
Cash distribution recorded as income	$	—		$	7,219			$	7,219	$	—		$	—		$	—
Partnership’s share of Local Partnership net income	121,388			—				121,388		339,459			—			339,459
Share of income from partnerships	$	121,388		$	7,219			$	128,607	$339,459			$	—		$	339,459

(a)     Westwood Village, Chestnut

(b)    New Sharon Woods

(c)    Capital Commons, Chestnut, Westwood Village

(d)    Hillview Terrace, New Sharon Woods, Shallowford Oaks

Reconciliation of investments

The following is a reconciliation of investments in partnerships at March 31, 2013.

Investments in partnerships at December 31, 2012	$	1,597,027
Distributions	(23,879		)
Share of income from partnerships	128,607
Investments in partnerships at March 31, 2013	$	1,701,755

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Cash Concentration Risk

3 Months Ended

Mar. 31, 2013

Risks and Uncertainties [Abstract]

Cash Concentration Risk

CASH CONCENTRATION RISK

Financial instruments that potentially subject the Partnership to concentrations of risk consist primarily of cash. The Partnership maintains five cash accounts with two banks.  As of March 31, 2013, the uninsured portion of the cash balances was $1,428,863.

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Organization

3 Months Ended

Mar. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

 ORGANIZATION

Capital Realty Investors, Ltd. (the “Partnership”) is a limited partnership which was formed under the District of Columbia Limited Partnership Act on June 1, 1981. The Partnership was formed for the purpose of raising capital by offering and selling limited partnership interests and then investing in limited partnerships ("Local Partnerships"), each of which owns and operates an existing rental housing project which was originally financed and/or operated with one or more forms of rental assistance or financial assistance from the U.S. Department of Housing and Urban Development ("HUD"). The Partnership originally made investments in eighteen Local Partnerships. As of March 31, 2013, the Partnership retained investments in three Local Partnerships.

The General Partners of the Partnership are C.R.I., Inc. (“CRI”), which is the Managing General Partner, current and former shareholders of CRI and Rockville Pike Associates, Ltd., a Maryland limited partnership, which includes the shareholders of CRI and certain former officers and employees of CRI. Services for the Partnership are performed by CRI, as the Partnership has no employees of its own.

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Investments In and Advances to Partnerships - Apartment Complexes Owned (Details)	3 Months Ended
	Mar. 31, 2013 partnership property	Mar. 31, 2012 partnership property
Chestnut Apartments [Member] | Fresno, California [Member]
Schedule of Equity Method Investments [Line Items]
Number of units in apartment complexes	90
New Sharon Woods [Member] | Deptford, New Jersey [Member]
Schedule of Equity Method Investments [Line Items]
Number of units in apartment complexes	50
Westwood Village [Member] | New Haven, Connecticut [Member]
Schedule of Equity Method Investments [Line Items]
Number of units in apartment complexes	48
Local Partnerships [Member]
Schedule of Equity Method Investments [Line Items]
Number of Local Partnerships with limited equity interests	3	6
Number of apartment complexes owned	3	6

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Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2013

Accounting Policies [Abstract]

Basis of Presentation

BASIS OF PRESENTATION

The accompanying unaudited condensed financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP) and with the instructions to Form 10-Q. Certain information and accounting policies and footnote disclosures normally included in financial statements prepared in conformity with US GAAP have been condensed or omitted pursuant to such instructions. These condensed financial statements should be read in conjunction with the financial statements and notes thereto included in the Partnership's Annual Report on Form 10-K at December 31, 2012.

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other bodies that may have an impact on the Partnership's financials reporting or accounting. The Partnership does not believe that any such recently issued pronouncement has had or will have a material effect on the Partnership's financial statements.

In the opinion of CRI, the Managing General Partner of the Partnership, the accompanying unaudited financial statements reflect all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the financial position of the Partnership as of March 31, 2013, and the results of its operations and its cash flows for the three month periods ended March 31, 2013 and 2012. The results of operations for the interim period ended March 31, 2013 are not necessarily indicative of the results to be expected for the full year.

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Investments In and Advances to Partnerships - Pending and Completed Sales (Details) (USD $)	0 Months Ended		0 Months Ended	3 Months Ended	0 Months Ended	3 Months Ended	0 Months Ended
	Jun. 29, 2012 New Sharon Woods [Member]	Mar. 31, 2013 New Sharon Woods [Member]	Aug. 02, 2012 Chestnut Apartments [Member]	Mar. 31, 2013 Chestnut Apartments [Member]	Aug. 02, 2012 Westwood Village [Member]	Mar. 31, 2013 Westwood Village [Member]	Aug. 29, 2012 Traverse City elderly, LP [Member]	Dec. 17, 2012 Capitol Senior Limited Dividend Housing Association Limited Partnership [Member]
Schedule of Equity Method Investments [Line Items]
Sale price of investment	$ 1		$ 5,440,000		$ 3,085,000		$ 299,990	$ 6,245,328
Investment basis		0		1,208,766		492,989
Expected proceeds from sale				$ 3,500,000		$ 2,150,000

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Investments In and Advances to Partnerships - Summarized Financial Information, Statement of Operations (Details) (USD $)	3 Months Ended
	Mar. 31, 2013 partnership		Mar. 31, 2012
Schedule of Equity Method Investments [Line Items]
Number of Local Partnerships	3
Expenses:
Cash distributions	$ 23,879
Share of income (loss) from partnerships	128,607		339,459
Local Partnerships [Member]
Schedule of Equity Method Investments [Line Items]
Number of Local Partnerships where cumulative losses exceed investment	1		3
Amount of cumulative losses exceeding investment	2,898,788		3,343,037
Number of Local Partnerships	3		6
Revenue:
Rental	567,377		1,244,596
Other	15,269		96,479
Total revenue	582,646		1,341,075
Expenses:
Operating	372,947		748,670
Interest	44,334		98,451
Depreciation and amortization	42,174		134,384
Total expenses	459,455		981,505
Net income (loss)	123,191		359,570
Cash distributions	23,879		0
Cash distributions recorded as reduction of investments in partnerships	16,660		0
Cash distribution recorded as income	7,219
Partnership's share of Local Partnership net income	121,388		339,459
Share of income (loss) from partnerships	128,607		339,459
Local Partnership Equity Method [Member]
Schedule of Equity Method Investments [Line Items]
Number of Local Partnerships	2	[1]	3	[2]
Revenue:
Rental	401,819		921,244
Other	12,958		90,316
Total revenue	414,777		1,011,560
Expenses:
Operating	258,614		505,639
Interest	7,456		57,568
Depreciation and amortization	24,834		101,943
Total expenses	290,904		665,150
Net income (loss)	123,873		346,410
Cash distributions	16,660		0
Cash distributions recorded as reduction of investments in partnerships	16,660		0
Cash distribution recorded as income	0
Partnership's share of Local Partnership net income	121,388		339,459
Share of income (loss) from partnerships	121,388		339,459
Local Partnership Equity Method Suspended [Member]
Schedule of Equity Method Investments [Line Items]
Number of Local Partnerships	1	[3]	3	[4]
Revenue:
Rental	165,558		323,352
Other	2,311		6,163
Total revenue	167,869		329,515
Expenses:
Operating	114,333		243,031
Interest	36,878		40,883
Depreciation and amortization	17,340		32,441
Total expenses	168,551		316,355
Net income (loss)	(682)		13,160
Cash distributions	7,219		0
Cash distributions recorded as reduction of investments in partnerships	0		0
Cash distribution recorded as income	7,219
Partnership's share of Local Partnership net income	0		0
Share of income (loss) from partnerships	$ 7,219		$ 0

[1] Westwood Village, Chestnut

[2] Capital Commons, Chestnut, Westwood Village

[3] New Sharon Woods

[4] Hillview Terrace, New Sharon Woods, Shallowford Oaks

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Document and Entity Information	3 Months Ended
	Mar. 31, 2013	Jun. 07, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	CAPITAL REALTY INVESTORS LTD
Entity Central Index Key	0000354521
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Partnership Units Outstanding		24,747

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Investments In and Advances to Partnerships - Property Matters (Details) (USD $)		0 Months Ended	3 Months Ended	0 Months Ended	3 Months Ended	0 Months Ended	3 Months Ended	0 Months Ended
	Mar. 31, 2013	Dec. 19, 2002 Baltic Plaza [Member]	Mar. 31, 2013 Baltic Plaza [Member]	Apr. 29, 2013 Affiliate of SP Baltic Plaza, LP [Member] Subsequent Event [Member]	Mar. 31, 2013 CRICO Housing Partnership [Member]	Apr. 29, 2013 CRICO Housing Partnership [Member] Affiliate of SP Baltic Plaza, LP [Member] Subsequent Event [Member]	Mar. 31, 2013 C.R.H.C. of Atlantic City, Inc [Member]	Apr. 29, 2013 C.R.H.C. of Atlantic City, Inc [Member] Affiliate of SP Baltic Plaza, LP [Member] Subsequent Event [Member]
Schedule of Equity Method Investments [Line Items]
Cash proceeds from sale		$ 2,053,358
Purchase money note term (in years)		30 years
Purchase money note, principal amount		2,300,000
Interest rate			4.60%
Minimum annual payment, percent of marker/purchaser's annual audited cash flow			50.00%
Beneficial interest in purchase money note			98.00%
Discounted original principal balance plus estimated accrued interest			619,000
Note Receivable, Sale Price	2,000,000
Proceeds from sale of note				$ 1,960,000		$ 39,800		$ 200
Interest in note receivable					1.99%		0.01%