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                                      AIMCO
                             AIMCO PROPERTIES, L.P.
                    C/O RIVER OAKS PARTNERSHIP SERVICES, INC.
                                  P.O. BOX 2065
                      S. HACKENSACK, NEW JERSEY 07606-2065
                        (888) 349-2005 OR (201) 896-1900
                               September 18, 2000

                           WE HAVE EXTENDED OUR OFFER

Dear Limited Partner:

         We have extended the expiration date of our offer to purchase all
outstanding units in your partnership, Century Properties Fund XVI, for $46 per
unit, to 5:00 p.m., New York City time, on September 28, 2000. Our offer price
will be reduced by the amount of distributions, if any, made by your partnership
in respect of any unit from August 2, 2000 until the expiration date. Our offer
is subject to the terms and conditions set forth in our offer to purchase, dated
August 2, 2000, all supplements thereto and the letter of transmittal.

         If you desire to accept our offer, you must complete and sign the
enclosed letter of transmittal in accordance with the instructions contained
therein, and forward or hand deliver the letter of transmittal, together with
any other required documents, to the Information Agent at one of the address set
forth in the Letter of Transmittal.. If you have already tendered your units in
accordance with any prior letter of transmittal, you need not take any further
action to continue to tender your units.

         We expressly reserve the right, in our reasonable discretion, at any
time and from time to time, to extend the period of time during which our offer
is open and thereby delay acceptance for payment of, and the payment for, any
unit. Notice of any such extension will promptly be disseminated to you in a
manner reasonably designed to inform you of such change. Further, any extension
may be followed by a press release or public announcement which will be issued
no later than 9:00 a.m., New York City time, on the next business day after the
scheduled expiration date of our offer, in accordance with Rule 14e-1(d) under
the Securities Exchange Act of 1934.

         If you have any questions or need assistance in completing the Letter
of Transmittal, please contact our information agent, River Oaks Partnership
Services, Inc., toll free, at (888) 349-2005.


                                        AIMCO Properties, L.P.