FORM 10-Q

              SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549

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

           For the quarterly period ended March 31, 1997
                             or

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

          For the transition period from   N/A   to   N/A

                   Commission File Number: 0-22520

                 CENTENNIAL MORTGAGE INCOME FUND
        (Exact name of registrant as specified in its charter)

           California                          33-0053488
(State or other jurisdiction of             (I.R.S. Employer
 incorporation or organization)             Identification No.)

 1540 South Lewis Street, Anaheim, California        92805
  (Address of principal executive offices)         (Zip Code)

Registrant's telephone number, including area code: (714)502-8484

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












                             PART I


ITEM 1. FINANCIAL STATEMENTS

          CENTENNIAL MORTGAGE INCOME FUND AND SUBSIDIARIES
                         A Limited Partnership

                     Consolidated Balance Sheets
                           (Unaudited)
<TABLE>
<CAPTION>
<S>                              <C>               <C>
                                     March 31,       December 31,
   Assets                              1997            1996
-----------------------------------------------------------------
Cash and cash
  equivalents                     $ 1,581,000       $ 1,712,000

Real estate loans
  receivable, earning                 695,000           700,000
Real estate loans
  receivable, nonearning            1,067,000         1,066,000
Real estate loans receivable
  from unconsolidated investees,
  earning (note 4)                    134,000               ---
Real estate loans receivable
  from unconsolidated investees,
  nonearning (note 4)               1,499,000         1,531,000
-----------------------------------------------------------------
                                    3,395,000         3,297,000

Less allowance for possible
  loan losses                         982,000           982,000
-----------------------------------------------------------------
Net real estate loans receivable    2,413,000         2,315,000

Real estate owned, net, held
  for sale, (note 3)               10,051,000        10,050,000
Real estate owned, insubstance
  foreclosed (note 3)               1,310,000         1,310,000
-----------------------------------------------------------------
                                   11,361,000        11,360,000





   See accompanying notes to consolidated financial statements
                              1
           CENTENNIAL MORTGAGE INCOME FUND AND SUBSIDIARIES
                        A Limited Partnership

                     Consolidated Balance Sheets
                           (Unaudited)
                           (Continued)

<CAPTION>
<S>                              <C>               <C>
                                     March 31,       December 31,
   Assets                              1997             1996
-----------------------------------------------------------------
  Less allowance for
   possible losses on
   real estate owned                4,101,000         4,101,000
-----------------------------------------------------------------
    Net real estate owned           7,260,000         7,259,000

Accrued interest receivable             5,000             4,000
Due from unconsolidated investees      10,000               ---
Other assets                          163,000           104,000
-----------------------------------------------------------------
                                  $11,432,000       $11,394,000
=================================================================
























  See accompanying notes to consolidated financial statements
                              2
        CENTENNIAL MORTGAGE INCOME FUND AND SUBSIDIARIES
                     A Limited Partnership

                 Consolidated Balance Sheets
                         (Unaudited)
                         (Continued)

<CAPTION>
<S>                                  <C>           <C>
                                        March 31,    December 31,
  Liabilities and Partners' Equity       1997          1996
-----------------------------------------------------------------
Notes payable (note 5)               $ 3,355,000    $ 3,355,000
Notes payable to affiliates (note 4)      31,000         74,000
Accounts payable and
  accrued liabilities                     20,000         23,000
Interest and property taxes
  payable on real estate owned            43,000            ---
Interest payable to affiliates on
  notes secured by real estate           220,000        220,000
Payable to affiliates (note 4)             1,000          1,000
Deferred profit on
  equity participation                   289,000        289,000
-----------------------------------------------------------------
   Total liabilities                   3,959,000      3,962,000

Partners' equity (deficit)
  -- 38,729 limited partnership
  units outstanding as of
  March 31, 1997 and December 31, 1996
    General partners                    (525,000)      (525,000)
    Limited partners                   7,998,000      7,957,000
-----------------------------------------------------------------
    Total partners' equity             7,473,000      7,432,000

Contingencies (note 6)
-----------------------------------------------------------------
                                     $11,432,000    $11,394,000
=================================================================

</TABLE>







   See accompanying notes to consolidated financial statements
                              3
          CENTENNIAL MORTGAGE INCOME FUND AND SUBSIDIARIES
                        A Limited Partnership

               Consolidated Statements of Operations
                          (Unaudited)
<TABLE>
          For the three months ended March 31, 1997 and 1996
<CAPTION>
<S>                             <C>             <C>
                                     1997           1996
-----------------------------------------------------------------
Revenue:
Interest income on loans
   to nonaffiliates,
  including fees                 $   27,000       $   22,000
Interest income on loans
  to affiliates,
  including fees                      1,000           25,000
Interest-bearing
  deposits                           21,000           27,000
Operations of real estate owned     238,000          225,000
Other                                 6,000              ---
-----------------------------------------------------------------
    Total revenue                   293,000          299,000

Expenses:
Share of losses
  in unconsolidated
  investees                          29,000          145,000
Operating expenses
  from operations
  of real estate owned               37,000           72,000
Operating expenses
  from operations of
  real estate owned
  paid to affiliate                  11,000           14,000
Expenses associated
  with non-operating
  real estate owned                  44,000           65,000
Depreciation and
  amortization expense                3,000            4,000
Interest expense                    103,000          120,000






   See accompanying notes to consolidated financial statements
                              4
          CENTENNIAL MORTGAGE INCOME FUND AND SUBSIDIARIES
                        A Limited Partnership

               Consolidated Statements of Operations
                         (Continued)
                         (Unaudited)

      For the three months ended March 31, 1997 and 1996
<CAPTION>
<S>                             <C>             <C>
                                   1997              1996
-----------------------------------------------------------------
General and administrative,
  affiliates                         51,000           64,000
General and administrative,
  nonaffiliates                      17,000           37,000
Mortgage investment servicing
  fees paid to affiliate              1,000            1,000
-----------------------------------------------------------------
    Total expenses                  296,000          522,000
-----------------------------------------------------------------
Net loss before
  minority interest                  (3,000)        (223,000)

Minority interest                    44,000           21,000
-----------------------------------------------------------------
  Net income (loss)             $    41,000      $  (202,000)
=================================================================
Net income (loss) per limited
  partnership unit              $      1.06      $     (5.22)
=================================================================

</TABLE>















   See accompanying notes to consolidated financial statements
                              5
        CENTENNIAL MORTGAGE INCOME FUND AND SUBSIDIARIES
                    A Limited Partnership

           Consolidated Statement of Partners' Equity
                         (Unaudited)

<TABLE>
         For the three months ended March 31, 1997

<CAPTION>
<S>                   <C>            <C>            <C>
                                                        Total
                         General        Limited        Partners'
                         Partners       Partners        Equity
-----------------------------------------------------------------
Balance at
  December 31, 1996   $  (525,000)   $  7,957,000   $  7,432,000

Net income                    ---          41,000         41,000
-----------------------------------------------------------------
Balance at
  March 31, 1997      $  (525,000)   $  7,998,000   $  7,473,000
=================================================================

</TABLE>























   See accompanying notes to consolidated financial statements
                              6
       CENTENNIAL MORTGAGE INCOME FUND AND SUBSIDIARIES
                    A Limited Partnership

             Consolidated Statements of Cash Flows
                        (Unaudited)
<TABLE>

      For the three months ended March 31, 1997 and 1996

<CAPTION>
<S>                             <C>             <C>
                                   1997              1996
-----------------------------------------------------------------
Cash flows from
 operating activities:
  Net income (loss)             $    41,000      $  (202,000)
  Adjustments to reconcile
   net income (loss) to
   net cash used in
   operating activities:
     Interest accrued
      to principal                   (1,000)         (25,000)
     Depreciation and
      amortization                    3,000            4,000
     Minority interest              (44,000)         (21,000)
     Equity in losses of
      unconsolidated investees       29,000          145,000
Changes in assets
  and liabilities:
   (Increase) decrease in accrued
    interest receivable              (1,000)          14,000
   Increase in other assets         (62,000)         (16,000)
   Decrease in accounts
    payable and accrued
    liabilities                      (3,000)         (13,000)
   Increase (decrease) in
    interest and taxes payable
    on real estate owned             43,000          (49,000)
   Increase in interest
    payable to affiliates on
    notes secured by real estate        ---           12,000
   Increase in due from
    unconsolidated investees        (10,000)             ---





   See accompanying notes to consolidated financial statements
                              7
       CENTENNIAL MORTGAGE INCOME FUND AND SUBSIDIARIES
                  A Limited Partnership

          Consolidated Statements of Cash Flows
                       (Continued)
                       (Unaudited)

       For the three months ended March 31, 1997 and 1996

<CAPTION>
<S>                             <C>             <C>
                                   1997              1996
-----------------------------------------------------------------
   Decrease in payable
    to affiliates                       ---           (3,000)
-----------------------------------------------------------------
     Net cash used in
      operating
      activities                     (5,000)        (154,000)
-----------------------------------------------------------------
Cash flows from
  investing activities:
   Principal collected
    on loans                         53,000           40,000
   Advances on loans made to
    unconsolidated investees       (179,000)        (810,000)
   Advances on loans
    made to customers                   ---           (1,000)
   Capital expenditures
    for real estate owned            (1,000)          (7,000)
   Increase in short-term
    investments                         ---           (1,000)
-----------------------------------------------------------------
Net cash used in
     investing activities          (127,000)        (779,000)
-----------------------------------------------------------------
Cash flows from
  financing activities:
   Proceeds from notes
    payable to affiliates             1,000            7,000
-----------------------------------------------------------------







   See accompanying notes to consolidated financial statements
                              8
       CENTENNIAL MORTGAGE INCOME FUND AND SUBSIDIARIES
                  A Limited Partnership

          Consolidated Statements of Cash Flows
                       (Unaudited)
                       (Continued)

       For the three months ended March 31, 1997 and 1996

<CAPTION>
<S>                             <C>             <C>
                                   1997              1996
-----------------------------------------------------------------
Net cash provided by
    financing activities              1,000            7,000
-----------------------------------------------------------------
Net decrease in cash               (131,000)        (926,000)

Beginning cash and
  cash equivalents                1,712,000        2,947,000
-----------------------------------------------------------------
Ending cash and cash
  equivalents                   $ 1,581,000      $ 2,021,000
=================================================================
Supplemental schedule of
  cash flow information:
   Cash paid during
    the quarter for:
      Interest                  $   100,000      $   100,000

</TABLE>

















   See accompanying notes to consolidated financial statements
                              9
        CENTENNIAL MORTGAGE INCOME FUND AND SUBSIDIARIES
                     A Limited Partnership

           Notes to Consolidated Financial Statements
                           (Unaudited)

                     March 31, 1997 and 1996

(1)  BUSINESS

Centennial Mortgage Income Fund (the "Partnership") has
historically invested in commercial, industrial and residential
income-producing real property through mortgage investments
consisting of participating first mortgage loans, other equity
participation loans, construction loans, and wrap-around and
other junior loans.  The Partnership's underwriting policy for
granting credit was to fund loans secured by first and second
deeds of trust on real property.  The Partnership's area of
concentration is in California.

As of March 31, 1997, a majority of the loans secured by
operating properties have been repaid to the Partnership.
However, during recent years, real estate market values for
undeveloped land in California have declined severely.  As the
loans secured by undeveloped land and certain operating
properties became delinquent, management of the Partnership
elected to foreclose on certain of these loans, thereby
increasing real estate owned balances.  As a result, the
Partnership has become a direct investor in this real estate and
intends to manage operating properties and develop raw land until
such time as the Partnership is able to sell this real estate
owned.

As required by the Partnership Agreement, the Partnership is
currently in the repayment stage, and as a result, cash proceeds
from mortgage investments are no longer available for
reinvestment.

(2)  BASIS OF PRESENTATION

The consolidated financial statements are unaudited and reflect
all adjustments, consisting only of normal recurring accruals,
which are, in the opinion of management, necessary for a fair
statement of the results of operations for the interim periods.





                             10
Results for the three months ended March 31, 1997 and 1996 are
not necessarily indicative of results which may be expected for
any other interim period, or for the year as a whole.

Information pertaining to the three months ended March 31, 1997
and 1996 is unaudited and condensed inasmuch as it does not
include all related footnote disclosures.

The condensed consolidated financial statements do not include
all information and footnotes necessary for fair presentation of
financial position, results of operations and cash flows in
conformity with generally accepted accounting principles.  Notes
to consolidated financial statements included in Form 10-K for
the year ended December 31, 1996 on file with the Securities and
Exchange Commission, provide additional disclosures and a further
description of accounting policies.

Net Loss per Limited Partnership Unit

Net loss per limited partnership unit for financial statement
purposes was based on the weighted average number of limited
partnership units outstanding of 38,729 for all periods
presented.

Impaired Loans

The Partnership considers a loan to be impaired when based upon
current information and events, it believes it is probable that
the Partnership will be unable to collect all amounts due
according to the contractual terms of the loan agreement.  In
determining impairment, the Partnership considers large non-
homogeneous loans including nonaccrual loans, troubled debt
restructuring and performing loans which exhibit, among other
characteristics, high loan-to-value ratios, low debt-coverage
ratios, or other indications that the borrowers are experiencing
increased levels of financial difficulty.  The Partnership bases
the measurement of collateral-dependent impaired loans on the
fair value of the loan's collateral.  The amount by which the
recorded investment of the loan exceeds the measure of the
impaired loan's value is recognized by recording a valuation
allowance.

At March 31, 1997, the carrying value of loans that are
considered to be impaired under SFAS 114 totaled $3,261,000 (of
which $2,566,000 were on nonaccrual status).  At March 31, 1997,
the allowance for possible loan losses determined in accordance
with the provisions of SFAS 114, related to loans considered
impaired under SFAS 114 totaled $982,000.  There were five loans

                             11
to unconsolidated investees considered impaired under SFAS 114
for which there is no related allowance for possible loan losses
at March 31, 1997.  However, the unconsolidated investees have
recorded an allowance for losses of $4,183,000 and the
Partnership's proportionate share of losses in unconsolidated
investees reflects $4,045,000 of this allowance.  One of the
loans receivable is recorded with a corresponding deferred profit
liability of $289,000.  There was a $46,000 investment in
impaired loans during the three months ended March 31, 1997.  For
the three months ended March 31, 1997, the Partnership recognized
interest income on impaired loans of $21,000 which included
$6,000 of interest income recognized using the cash basis method
of income recognition.

Carrying Value of Real Estate Owned, Held for Sale

Effective January 1, 1996, the Partnership adopted Statement of
Financial Accounting Standards No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to Be
Disposed Of" ("SFAS 121").  SFAS 121 supersedes SOP 92-3 and also
requires that long-lived assets to be disposed of be reported at
the lower of carrying amount or fair value less costs to sell.
An impairment loss shall be measured as the amount by which the
carrying amount of the asset exceeds the fair value of the assets
less costs to sell.  SFAS 121 requires that assets to be disposed
of not be depreciated while they are held for disposal.  The
Partnership considers all real estate owned as held for sale and
is actively marketing all properties.

<TABLE>

(3)  REAL ESTATE OWNED

<CAPTION>
Real estate owned consists of the following:
                                     (dollars in thousands)
<S>                               <C>              <C>
                                      March 31,      December 31,
                                        1997             1996
-----------------------------------------------------------------
1.  Shopping Center in Upland, CA    $  4,628        $  4,628
2.  19 acres in Sacramento, CA          2,822           2,822
3.  Auto retail center in Corona, CA    2,601           2,600
4.  5 condominiums in Oxnard, CA        1,310           1,310
-----------------------------------------------------------------
Total real estate owned              $ 11,361        $ 11,360
=================================================================
</TABLE>

                             12
Property No. 4 has been accounted for as insubstance foreclosure
under SFAS 118 as the Partnership does not currently hold legal
title to this property, but the borrower has surrendered the
collateral to the control of the Partnership.

In accordance with SFAS 121, the Partnership carries real estate
owned, held for sale, at the lower of carrying amount or fair
value less costs to sell.  The estimated fair values were
determined by using appraisals, discounted cash flows and/or
other valuation techniques.  The actual market price of real
estate can only be determined by negotiation between independent
third parties in a sales transaction.

(4)  TRANSACTIONS WITH AFFILIATES

Under the provisions of the Partnership Agreement, Centennial
Corporation is entitled to receive from the Partnership mortgage
investment servicing fees for loans serviced equal to an annual
rate of 1/4 of 1 percent of the committed amount to be funded by
the Partnership.  The Partnership incurred $1,000 of mortgage
investment servicing fees for the three months ended March 31,
1997 and 1996, respectively.

Under the provisions of the Partnership Agreement, the general
partners are to receive compensation for their services in
supervising the affairs of the Partnership.  This partnership
management compensation shall be equal to 10 percent of the cash
available for distribution, as defined in the Partnership
Agreement.  The general partners will not receive this
compensation until the limited partners have received a 12
percent per annum cumulative return on their adjusted invested
capital but are entitled to receive a 5 percent interest in cash
available for distribution in any year until this provision has
been met.  Adjusted invested capital is defined as the original
capital invested less distributions from mortgage reductions.
Payments to the general partners have been limited to 5 percent
of cash available for distribution as the limited partners have
not yet received their 12 percent per annum cumulative return.
Under this provision of the Partnership Agreement, no
distributions were paid to the general partners during the three
months ended March 31, 1997 or 1996.

The Partnership owns 50 percent of the outstanding capital stock
of two corporations which have not been consolidated in the
accompanying financial statements, LCR Development, Inc., ("LCR")
and BKS Development Inc., ("BKS").  The balance of outstanding



                             13
capital stock in these corporations is owned by Centennial
Mortgage Income Fund II ("CMIF II"), an affiliate.  LCR has
invested in a joint venture, Silverwood Homes ("Silverwood")
which is constructing homes in Lancaster, CA.  The Partnership
has participated in making several loans to these corporations
and this joint venture.  Under the equity method of accounting,
these loans are a component of the Partnership's investment in
LCR and BKS, and therefore, the Partnership has recorded losses
by LCR and BKS as a reduction of the carrying value of these
loans receivable.  The Partnership wrote off its investment and
loan receivable from BKS during 1996 when its share of losses
equaled its investment and the recovery of any of its investment
became unlikely.

The Partnership holds a $1,250,000 unsecured note and holds a 50
percent participation in a $2,115,000 unsecured note, both due
from LCR.  The Partnership's share of the $2,115,000 note at
March 31, 1997 is $1,055,000 and the Partnership had applied
$1,055,000, a portion of its of cumulative losses from
unconsolidated investees, against the carrying value of the note
as of that same date.  The Partnership has also applied
$1,250,000 of cumulative losses from unconsolidated investees
against the carrying value of the $1,250,000 note as of March 31,
1997.  The Partnership has not accrued its share of interest on
these notes which was approximately $578,000 as of March 31,
1997.

Silverwood began constructing a model home complex at the project
in June 1995.  Construction commenced in September 1995 on Phase
I and February 1997 on Phase II at the project.  At March 31,
1997, the Partnership holds a 50 percent participation in four
notes, due from Silverwood including a land development loan, a
model home loan and two home construction loans.  The
Partnership's disbursed balance of the $3,265,700 development
loan at March 31, 1997, is $1,020,000 and the Partnership had
applied $285,000, the balance of cumulative losses from
unconsolidated investees, against the carrying value of the note
as of the same date.  The Partnership's disbursed balance of the
$490,000 model loan at March 31, 1997 is $239,000.  At March 31,
1997 the Partnership's disbursed balance of the $1,034,000 Phase
I construction loan is $525,000.  At March 31, 1997, the
Partnership's disbursed balance of the $870,000 Phase II
construction loan is $134,000.






                             14
The consolidated balance sheet and statement of operations of LCR
Development, Inc. have not been consolidated in the Partnership's
financial statements.  The Partnership accounts for its
investment in the corporation using the equity method.  The
following represents condensed financial information for LCR at
March 31, 1997 and for the three months ended March 31, 1997:

                       LCR Development, Inc.
                    Consolidated Balance Sheet
<TABLE>
<CAPTION>
<S>                                             <C>
                                                   March 31,
  Assets                                             1997
-----------------------------------------------------------------
Cash                                             $     2,000
Restricted cash                                       10,000

Real estate owned, held for investment             6,875,000
Less allowance for losses on
  real estate investments                          4,183,000
-----------------------------------------------------------------
Net real estate owned                              2,692,000

Organization costs                                     1,000
-----------------------------------------------------------------
                                                 $ 2,705,000
=================================================================

  Liabilities and Stockholders' Deficit
-----------------------------------------------------------------
Notes payable to affiliates
  CMIF                                           $ 4,223,000
  CMIF II                                          2,370,000
-----------------------------------------------------------------
                                                   6,593,000

Accounts payable and accrued liabilities               2,000
Interest and taxes payable
  on real property                                   997,000
Payable to affiliates                                 27,000
-----------------------------------------------------------------
Total liabilities                                  7,619,000

Stockholders' deficit                             (4,914,000)
-----------------------------------------------------------------
                                                 $ 2,705,000
=================================================================
</TABLE>
                             15
                   LCR Development, Inc.
            Consolidated Statement of Operations
<TABLE>
<CAPTION>
<S>                                          <C>
                                                Three months
                                                    ended
                                               March 31, 1997
-----------------------------------------------------------------
Housing sales                                  $    92,000

Cost of housing sales                              104,000
Provision for losses on real estate owned          138,000
Selling and marketing expenses                      29,000
General and administrative expenses                 16,000
-----------------------------------------------------------------
Operating income (loss)                           (195,000)
Interest incurred                                  138,000
Less interest expense capitalized                 (138,000)
-----------------------------------------------------------------
Net (loss)                                        (195,000)
=================================================================
Interest expense not included
  in share of losses                              (138,000)
-----------------------------------------------------------------
Allocable net loss                             $   (57,000)
=================================================================
Share of loss recorded                         $   (29,000)
=================================================================
</TABLE>

The Partnership owns an interest in Grand Plaza Auto Retail,
Inc., the corporation which owns the auto retail center in
Corona, California jointly with an affiliated entity, Centennial
Mortgage Income Fund III, ("CMIF III").  At March 31, 1997, the
ownership percentages are 86.67 for the Partnership and 13.33 for
CMIF III.  The assets and liabilities of this corporation have
been consolidated in the accompanying consolidated financial
statements.  Notes payable and interest payable to affiliates on
notes secured by real estate owned includes $558,000 and $557,000
at March 31, 1997 and December 31, 1996, respectively, and the
Partnership had cumulatively applied $420,000 of minority
interest share of losses from this corporate joint venture
against the note payable to affiliates balance as of the same





                             16
dates.  The notes payable to affiliates balance reflects CMIF
III's share of a note payable by the corporation to the
Partnership and CMIF III.  The note bears interest at 14 percent
fixed and matured October 1, 1996.  The Partnership is in the
process of extending this note.

The Partnership owns an interest in BNN Development, Inc., the
corporation which owns the 19 acres in Sacramento, California
jointly with an affiliated entity, CMIF III.  At March 31, 1997,
the ownership percentages are 86.25 for the Partnership and 13.75
for CMIF III.  The assets and liabilities of this corporation
have been consolidated in the accompanying consolidated financial
statements.  Notes payable and interest payable to affiliates on
notes secured by real estate owned includes $452,000 at March 31,
1997 and December 31, 1996, respectively, and the Partnership had
cumulatively applied $339,000 and $295,000, of minority interest
share of losses from this corporate joint venture against the
note payable to affiliates balance as of the same dates.  The
notes payable to affiliates balance reflects CMIF III's share of
a note payable by the corporation to the Partnership and CMIF
III.  The note bears interest at 15 percent fixed and matures
November 1, 1997.



























                             17
<TABLE>

(5) NOTES PAYABLE

<CAPTION>

Notes payable consist of the following:
                                    (dollars in thousands)
<S>                              <C>             <C>
                                     March 31,    December 31,
                                       1997          1996
-----------------------------------------------------------------
Note payable secured by
  19 acres in Sacramento, CA
  with interest only payments
  due monthly; interest rate of
  12 percent fixed, maturing
  March 1, 1998                    $   900           $   900

Note payable secured by
  shopping center in
  Upland, CA with interest
  and principal payments due
  monthly of $24,000; interest
  rate of 11.25 percent fixed,
  maturing May 1, 1997               2,455             2,455
-----------------------------------------------------------------
  Total notes payable              $ 3,355           $ 3,355
=================================================================
</TABLE>

The note payable secured by the Upland Shopping Center totaling
$2,455,000 matures May 1, 1997.  The Partnership has a letter of
intent from the lender for a five year extension on this note.
No principal is payable on the note secured by the 19 acres in
Sacramento.  The balance of $900,000 is due in 1998.

(6) CONTINGENCIES

There are no material pending legal proceedings other than
ordinary routine litigation incidental to the Partnership's
business.







                             18
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND  RESULTS OF OPERATIONS.

GENERAL

The Partnership had net income and income per limited partnership
unit of $41,000 and $1.06 for the three months ended March 31,
1997 and losses of ($202,000) and $(5.22) for the three months
ended March 31, 1996.  The increase in income from March 31, 1996
to March 31, 1997 is primarily the result of a decrease in share
of losses in unconsolidated investees, operating expenses for
real estate owned and interest expense.

LIQUIDITY AND CAPITAL RESOURCES

At March 31, 1997, the Partnership had $1,581,000 in cash and
interest-bearing deposits.  The Partnership had no unfunded loan
commitments to nonaffiliates at March 31, 1997.   Sources of
funds are expected to be from the sale of real estate owned,
future operations of real estate owned and payoffs of existing
loans.  The Partnership funded disbursements on loans to
unconsolidated investees during the first three months of 1997
totaling $179,000 and received payoffs and paydowns on loans
totaling $53,000.  During the first three months of 1997, the
Partnership incurred costs for the improvement of real estate
owned totaling $1,000.

The Partnership's notes payable commitments consist of interest
and all principal payments due of approximately $2,563,000.  The
note payable secured by the Upland Shopping Center totaling
$2,455,000 matures May 1, 1997.  The Partnership does not
presently have sufficient capital reserves to make this balloon
payment and meet operating commitments.  The Partnership has a
letter of intent from the lender to extend the note for five
years.  In addition to the note payable commitments, the
Partnership's principal capital requirements include: i) real
property taxes and bonds on real estate owned of approximately
$157,000 payable during the next twelve months, and ii) selling,
general and administrative costs.  These commitments are expected
to be paid from existing cash balances, future loan payoffs, and
the sale of real estate owned.

The Partnership is continuously evaluating various alternative
strategies for liquidating its real estate assets under current
market conditions.  These alternative strategies include the
potential joint venture and/or build out of certain of the
Partnership's properties in order to increase their marketability
and maximize the return to the limited partners.  In the event
the Partnership decides to implement some of these strategies, it
may require the investment of proceeds received from the payoff
of existing loans and the sale of other real estate assets.  The
decision to invest additional cash in existing assets will only
be made if, based on management's best judgment at the time,
there is a clear indication that such investment should generate
a significantly greater return to the limited partners than any
other strategies available to the Partnership.

Effective with the third quarter of 1991, the Partnership
suspended cash distributions to partners due to a decline in
liquidity and the uncertainty of the cash requirements for
existing and potential real estate owned.  Pursuant to the
Partnership Agreement, 60 months after the closing of the
offering, cash proceeds from mortgage investments are no longer
available for reinvestment by the Partnership.  Management
believes that current and projected liquidity is sufficient to
fund operating expenses and to meet the contractual obligations
and cash flow operating requirements of the Partnership.
However, although no new mortgage investments shall be made, the
general partners expect that the cash proceeds from future
mortgage reductions will be retained by the Partnership until
such time as the Partnership has sufficient cash to fulfill the
operating requirements of the real estate owned by the
Partnership.

RESULTS OF OPERATIONS

At this stage of the Partnership, most of the nonaffiliated loans
have been repaid to the Partnership and interest income on loans
to nonaffiliates has begun to stabilize.  As a result of these
payoffs, interest income on loans to nonaffiliates is no longer a
major contributor to the Partnership's revenue.  Interest income
on loans to nonaffiliates, including fees increased to $27,000
from $22,000 for the three months ended March 31, 1997 and 1996,
respectively.   The increase in interest income on loans from
1996 to 1997 is due to the receipt of cash basis interest income
from loans on nonaccrual.

Interest income on loans to unconsolidated investees, including
fees totaled $1,000 and $25,000 for the three months ended March
31, 1997 and 1996, respectively.  The decrease for 1997 is due to
the loans to unconsolidated investees being placed on nonaccrual.
Interest income on loans to unconsolidated investees represents
interest earned on the Silverwood loans.

The outstanding principal balance of loans on nonaccrual at March
31, 1997 totaled $2,566,000 as compared with $3,232,000 at March
31, 1996.  Loans on "nonaccrual" refers to loans upon which the
Partnership is no longer accruing interest.  Management's policy
is to cease accruing interest on loans when interest and/or
principal repayments become 90 days past due.  Had interest
accrued through the first three months of 1997 and 1996 on the
affiliated and nonaffiliated nonacrual loans, interest income
would have been approximately $133,000 and $161,000 higher than
was actually reported for those periods.

The real estate owned balance at March 31, 1997 and 1996 was
$11,361,000 and $12,356,000, respectively.

The following sections entitled Nonaccrual, Nonperforming Loans
and Other Loans to Affiliates and Real Estate Owned provide a
detailed analysis of these assets.

Nonaccrual, Nonperforming Loans and Other Loans to Affiliates

Loans on nonaccrual and nonperforming status at March 31, 1997
are summarized below:

During 1994, the Partnership renegotiated an equity participation
note with an original committed amount of $374,000 secured by a
second deed of trust on a 32,431 square foot shopping center in
Corona, California.  The loan provides for interest due to be
payable at loan maturity; however, due to the amount of the
senior debt and the decrease in land values, the Partnership has
placed the loan on nonaccrual.  The principal balance and
nonaccrued interest at March 31, 1997 are $313,000 and $116,000
respectively.  The Partnership has recorded a $289,000 deferred
profit in connection with this loan.

During 1991, the Partnership sold a pad on an existing piece of
real estate owned in Corona, California and carried back
financing in the amount of $600,000.  The Partnership's share of
the loan is 77 percent.  Due to the loss of the major tenant, the
borrower has been unable to make monthly interest payments.
Management has worked out a forbearance agreement with the
borrower for net cash flow monthly payments.  The remaining
interest due has been placed on nonaccrual.  The principal
balance and nonaccrued interest at March 31, 1997 are $461,000
and $118,000, respectively.  The Partnership had recorded a
$367,000 allowance for losses related to this loan as of March
31, 1997.

During 1989, the Partnership funded a loan with an original
committed amount of $343,000 to provide land development
financing in Perris, California.  The loan matured June 1, 1993
and the borrower was unable to make interest payments or pay off
the loan.  Given the depressed value of the property and the
amount of the delinquent bonds and taxes, the Partnership has
been negotiating with the borrower in an attempt to discount the
note to facilitate a sale or have the borrower deed the property
to the Partnership.  Should the negotiations not be completed and
the property be lost to a tax sale, management has established a
$293,000 allowance for losses related to this loan as of March
31, 1997.  The principal balance and nonaccrued interest at March
31, 1997 are $293,000 and $174,000, respectively.

During 1994, the Partnership funded a $1,250,000 unsecured note
and a 50 percent participation in a $2,115,000 unsecured note,
both representing workout loans and due from LCR, an affiliate.
These two loans reflect the majority of the cost basis of single
family lots contributed to Silverwood.  LCR's only source of
repayment of these notes are proceeds from the sale of the fully
developed lots.  Management has estimated the proceeds for
repayment of these two notes to be less than the original
principal balance of the loans.  As a result, the loans have been
placed on nonaccrual.  The principal balance, participating
principal balance and nonaccrued interest balances at March 31,
1997 are $1,250,000 and $318,000 and $1,055,000 and $261,000,
respectively.  As discussed in note 4, the Partnership has
reduced the carrying value of these notes by $2,305,000, a
portion of its share of losses from this unconsolidated investee.

During 1994 and 1995, LCR evaluated various alternative
strategies for liquidating its investment in the 179 lots in
Lancaster.  During 1994, LCR determined that its best course of
action appeared to be the full-scale buildout and sale of single-
family homes since the market for finished lots had fallen so
significantly.  LCR obtained construction financing commitments
from CMIF and the Partnership and entered into a joint venture
agreement entitled Silverwood with Home Devco to construct and
sell single-family homes a the project.  The joint venture began
constructing a model home complex at the project in June 1995.
Construction commenced in September 1995 on Phase I at the
project.  At March 31, 1997, the Partnership holds a 50 percent
participation in three notes and a 100 percent ownership in a
fourth note due from Silverwood consisting of a land development
loan, a model home loan and two home construction loans with a
combined disbursed balance of $1,918,000.  The Partnership's
disbursed balance of the $3,265,700 development loan at March 31,
1997 is $1,020,000.  The Partnership had applied $285,000 of
cumulative losses from unconsolidated investees against the
carrying value of the note as of the same date.  The
Partnership's disbursed balance of the $490,000 model loan at
March 31, 1997 is $239,000.  The Partnership's disbursed balance
of the $1,034,000 Phase I construction loan at March 31, 1997 is
$525,000.  The Partnership's disbursed balance of the $870,000
Phase II construction loan at March 31, 1997 is $134,000.

Sales volumes of new homes in the Lancaster area have continued
to decline since 1995 while sales prices have remained relatively
flat and construction costs have increased.  This has caused a
further decline in the value of finished lots and a reduction in
the anticipated net proceeds the Partnership expects to realize
from the buildout of homes at the project.  Additionally,
Silverwood closed escrow on only three homes as of the date of
this report, far less than originally anticipated.  As a result
of these factors, LCR has recorded a $4,183,000 allowance for
losses on real estate investments.

Real Estate Owned

A description of the Partnership's principal real estate owned
and loan classified as insubstance foreclosure follows:

Shopping Center in Upland, California

During the third quarter of 1988, the Partnership foreclosed on a
loan secured by this project.  The Partnership originally
committed $5,600,000 for the rehabilitation of a 33,327 square
foot retail center and construction of an automotive service
facility in Upland, California.  Cost overruns and construction
delays prevented the borrower from selling the project and
thereby performing on the loan.  The property generated net
operating income before debt service of $176,000 during the first
three months of 1997 and its net carrying value before allowance
for possible losses was $4,628,000 at March 31, 1997.  The
property is currently 98 percent leased.  The property is
encumbered by a note of $2,455,000, secured by a first trust deed
on the property.  The Partnership is marketing this property for
sale.  The Partnership had recorded a $921,000 allowance for
losses related to this property as of March 31, 1997.

19 Acres in Sacramento, California

During the third quarter of 1991, the Partnership took a deed in
lieu of foreclosure on a second trust deed secured by 19 acres of
undeveloped land in Sacramento, California.  The property is
encumbered by a $900,000, 12 percent fixed interest rate note
payable secured by a first trust deed on the property.  The note
requires monthly interest-only payments, and the balance is due
March 1, 1998.  The Partnership continues to finalize the
entitlement processing, flood issues and provide for utility
services for the property.  As these issues are finalized and the
demand for development land in the area returns, the Partnership
intends to list the property for sale.  At March 31, 1997, the
carrying value before allowance for possible losses of this asset
was $2,822,000 and the Partnership had recorded a $1,134,000
allowance for losses related to this project.



Auto Retail Center in Corona, California

During 1988, the Partnership funded a loan with an original
committed amount of $3,313,000 for the purpose of constructing a
39,185 square foot auto/retail center in Corona, California.  The
loan matured on September 1, 1989.  The borrower defaulted under
a forbearance agreement, and the Partnership filed a notice of
default on December 14, 1990.  The borrower filed for bankruptcy
on February 15, 1991.  A pad was sold during April 1991 resulting
in the Partnership receiving a net paydown of $249,000.  The
Partnership provided financing to the purchaser.  The Partnership
took a grant deed on the property through the Bankruptcy Courts
in December 1991.  The subject center is 43 percent leased and
the property generated net operating income of $13,000 during the
first three months of 1997.  The center is being marketed for
sale.  The carrying value before allowance for possible losses at
March 31, 1997 is $2,601,000 and the Partnership had recorded a
$1,665,000 allowance for losses related to this project.

5 Condominiums in Oxnard, California

During 1990, the Partnership funded a loan secured by a first
trust deed with an original committed amount of $3,000,000 for
the construction of 12 condominiums in Oxnard, California.  The
Partnership has recorded an insubstance foreclosure on these 12
condominiums.  The borrower signed over control to the second
trust deed holder in December 1992, the second trust deed holder,
an affiliate, abandoned the property and the Partnership now
controls the property.  The condominiums are located adjacent to
the beach.  The values of beach front property have been hard hit
in the local market due to the excess supply of this type of
property.  The Partnership has declined to assume any of the
original builder's liabilities which would be required should the
Partnership accept a deed in lieu of foreclosure on the property.
However, the Partnership does receive 100 percent of all sales
proceeds net of selling costs.  As of March 31, 1997, the
Partnership had sold seven condominiums and is attempting to sell
the remaining units.  The carrying value before allowance for
possible losses at March 31, 1997 is $1,310,000 and the
Partnership had recorded a $381,000 allowance for losses related
to this project.

INTEREST ON INTEREST-BEARING DEPOSITS

Interest earned on interest-bearing deposits totaled $21,000 and
$27,000 for the three months ended March 31, 1997 and 1996,
respectively.  Interest on interest-bearing deposits represents
interest earned on Partnership funds invested, for liquidity, in
time certificate and money market deposits.  The decrease in
income on interest-bearing deposits is principally due to
decreased cash balances for the three months ended March 31,
1997.

INCOME FROM OPERATIONS OF REAL ESTATE OWNED

Income from operations of real estate owned consists of operating
revenues of $238,000 and $225,000 for the three months ended
March 31, 1997 and 1996, respectively.  These revenues are from
the Upland shopping center and the auto retail center in Corona.

PROVISION FOR POSSIBLE LOSSES

There was no provision for possible losses for the three months
ended March 31, 1997 or 1996.  The provision for possible losses
results from the change in the allowance for possible losses and
the allowance for possible losses on real estate owned net of
charge-offs, if any.  Management believes that the allowance for
possible losses at March 31, 1997 is adequate to absorb the known
and inherent risk in the Partnership's loan and real estate owned
portfolio.

SHARE OF LOSSES IN UNCONSOLIDATED INVESTEES

The Partnership has invested in corporations in which it has less
than a majority ownership and accounts for these investments
using the equity method.  The Partnership's share of losses in
these unconsolidated investees was $29,000 and $145,000 for the
three months ended March 31, 1997 and 1996, respectively.  The
share of losses consists primarily of provisions for losses on
real estate investments and interest expense related to the 179
lots in Lancaster owned by LCR and the 283 acres in Bakersfield
owned by BKS.  The decrease for 1997 is due to the write off of
the 283 acres in Bakersfield owned by BKS during 1996.

OTHER EXPENSES

Operating expenses from operations of real estate owned were
$37,000 and $72,000 for the three months ended March 31, 1997 and
1996, respectively.  The expenses were associated with the Upland
shopping center and the auto retail center in Corona.  The
decrease for 1997 is due to asphalt and roofing expenses for 1996
which were not required in 1997 and a tax refund received by the
Upland Shopping Center.

Operating expenses from operations of real estate owned paid to
affiliates were $11,000 and $14,000 for the three months ended
March 31, 1997 and 1996, respectively.  The operating expenses
consist of property management fees paid to affiliates of the
general partners.

Expenses associated with non-operating real estate owned were
$44,000 and $65,000 for the three months ended March 31, 1997 and
1996, respectively.  The expenses relate to the 19 acres in
Sacramento, the condominiums in Oxnard, and the 23 acres in
Riverside.  The decrease for the three months ended March 31,
1997 is due to a decrease in costs associated with the
condominiums in Oxnard.

Depreciation and amortization expense was $3,000 and $4,000 for
the three months ended March 31, 1997 and 1996, respectively,
related to leasehold improvements at the Upland Shopping Center
and furniture and fixtures of the Partnership.

Interest expense was $103,000 and $120,000 for the three months
ended March 31, 1997 and 1996, respectively.  The interest
expense during 1997 and 1996 relates to the Upland Shopping
Center, the 19 acres in Sacramento, California and the
Partnership's share of interest payable to affiliates on the auto
retail center in Corona.  The decrease for 1997 is due to the
loan secured by the auto retail center in Corona being placed on
nonaccrual in 1997.

General and administrative expenses, affiliates totaled $51,000
and $64,000 for the three months ended March 31, 1997 and 1996,
respectively.  These expenses are primarily salary allocation
reimbursements paid to affiliates.  The decrease for 1997 is due
to a decrease in allocation percentages.

General and administrative expenses, nonaffiliates totaled
$17,000 and $37,000 for the three months ended March 31, 1997 and
1996, respectively.  These expenses consist of other costs
associated with the administration of the Partnership.  The
decrease for 1997 is primarily due to a decrease in moving
expenses, office expenses and investor printing.

Mortgage investment servicing fees totaled $1,000 for the three
months ended March 31, 1997 and 1996, respectively.  This
consists of fees paid to Centennial Corporation for servicing the
Partnership's loan portfolio.












                           PART II

OTHER INFORMATION

Item 1.  Legal Proceedings

         None


Item 2.  Changes in Securities

         None


Item 3.  Defaults Upon Senior Securities

         None


Item 4.  Submission of Matters to a Vote of Security Holders

         None


Item 5.  Other Information

         None


Item 6.  Exhibits and Reports on Form 8-K

         (a)  None

         (b) None
















                         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.


CENTENNIAL MORTGAGE INCOME FUND AND SUBSIDIARIES
A California Limited Partnership


By:/s/John B. Joseph
_________________________________
John B. Joseph
General Partner                                    May 15, 1997


By:/s/Ronald R. White
_________________________________
Ronald R. White
General Partner                                    May 15, 1997


By:  CENTENNIAL CORPORATION
     General Partner


/s/Joel H. Miner
_________________________________
Joel H. Miner
Chief Financial Officer                            May 15, 1997