8-K

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549




                                    FORM 8-K

                                 CURRENT REPORT

     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

               Date of Report: (Date of Earliest Event Reported):
                         June 20, 2003 (June 20, 2003)





              AMERICAN INSURED MORTGAGE INVESTORS - SERIES 85, L.P.
             (Exact name of registrant as specified in its charter)

        California                      1-11059                  13-3257662
(State or other jurisdiction          (Commission             (I.R.S. Employer
     of incorporation)                File Number)           Identification No.)







                              11200 Rockville Pike
                            Rockville, Maryland 20852
   (Address of principal executive offices, including zip code, of Registrant)

                                 (301) 816-2300
              (Registrant's telephone number, including area code)



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Item 5.  Other Events.

     Attached  as an  exhibit  to this  Current  Report  on Form  8-K is a press
release  issued by the  General  Partner on June 20,  2003  announcing  the June
distribution  to the  Partnership's  unitholders.  The  above  referenced  press
release is incorporated by reference herein.


Item 7.  Financial Statements, Pro Forma Financial Information and Exhibits.

(c)  Exhibits. The following exhibits are filed with this report:

     Exhibit 99.1 - Press Release dated June 20, 2003.





SIGNATURE

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



                                                    AMERICAN INSURED MORTGAGE
                                                    INVESTORS - SERIES 85, L.P.

                                                    By: CRIIMI, Inc.
                                                        General Partner



Dated: June 20, 2003                                By:/s/ Mark A. Libera
                                                       -------------------------
                                                       Mark A. Libera
                                                       Vice President
                                                       General Counsel

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                                  EXHIBIT INDEX

Exhibit
No.                                Description
- --------------------------------------------------------------------------------

*    99.1 Press Release dated June 20, 2003

*    Filed herewith.

EX-99

                                                                    EXHIBIT 99.1

Contact: Susan B. Railey
         (301) 468-3120
         Sharon Bramell                                    FOR IMMEDIATE RELEASE
         (301) 468-3130


                      AIM 85 DECLARES MONTHLY DISTRIBUTION
                          FOR JUNE OF 12 CENTS PER UNIT

                 Includes Mortgage Proceeds of 9 Cents Per Unit

                 Total for Second Quarter is 25.5 Cents Per Unit


                           ---------------------------


     ROCKVILLE,  MD, June 20, 2003 -- (AMEX/AII) The general partner of American
Insured Mortgage Investors - Series 85, L.P. (AIM 85) today declared the monthly
distribution for June 2003 in the amount of 12 cents per unit. Holders of record
on June 30,  2003,  will  receive  this  amount  as part of the  second  quarter
distribution which will be paid on August 1, 2003.

The June distribution of 12 cents per unit includes the following:

- -    3 cents per unit regular cash flow;

- -    2 cents per unit mortgage proceeds due to the prepayment of the mortgage on
     Magnolia Place Apartments; and

- -    7 cents per unit mortgage proceeds due to the prepayment of the mortgage on
     Willow Dayton.

     Record dates for the AIM 85  distributions  occur at the end of each month.
Distributions  are paid  approximately  one month after the end of each calendar
quarter and include the three  amounts  declared  during the quarter.  The total
distribution  of 25.5  cents per unit for the second  quarter  of 2003  includes
three cents per unit  regular  cash flow for the months of April,  May and June,
plus 7.5 cents per unit mortgage proceeds for the month of April and 9 cents per
unit mortgage proceeds for the month of June.