U.S. SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549

                                   FORM 10-QSB
(Mark One)


/ X /     QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE
          ACT OF 1934

For the quarterly period ended DECEMBER 31, 1996

/  /      TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from _________ to ______________

Commission file number 0-5097

                           UNITED VANGUARD HOMES, INC.
--------------------------------------------------------------------------------
        (Exact Name of Small Business Issuer as Specified in Its Charter)


            Delaware                                         11-2032899
--------------------------------------------------------------------------------
(State or Other Jurisdiction of                    (IRS Employer Identification
 Incorporation or Organization)                               Number)

                  4 Cedar Swamp Road, Glen Cove, New York 11542
--------------------------------------------------------------------------------
                    (Address of Principal Executive Offices)


                                 (516) 759-1188
--------------------------------------------------------------------------------
                (Issuer's Telephone Number, Including Area Code)

                                       N/A
--------------------------------------------------------------------------------
              (Former Name, Former Address and Former Fiscal Year,
                          if Changed Since Last Report)


         Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 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 / /

         State the number of shares  outstanding of each of the issuer's classes
of common equity, as of the latest practicable date: At December 31, 1996, there
were outstanding  3,320,950 shares of the  Registrant's  Common Stock,  $.01 par
value.

         Transitional Small Business Disclosure Format:

                                 Yes / /No / X /

<PAGE>

                                   FORM 10-QSB

                                      INDEX

PART I.  FINANCIAL INFORMATION:                                        Page No.

         Consolidated Balance Sheets (Unaudited) - 
           Dec. 31 and March 31, 1996........................................2

         Consolidated Statement of Earnings (Unaudited)
           Three and Nine Months Ended December 31, 1996 and 1995 ...........4

         Consolidated Statement of Stockholders' Deficiency (Unaudited)
           Nine Months Ended Dec. 31, 1996...................................5

         Unaudited Consolidated Statement of Cash Flows
           For the Nine Months Ended Dec. 31, 1996 and 1995..................6

         Notes to Unaudited Consolidated Financial Statements................7

         Management's Discussion and Analysis or Plan of Operation...........9

PART II. OTHER INFORMATION:

         Exhibits and Reports on Form 8-K...................................11

         Signatures.........................................................12


<PAGE>
                  UNITED VANGUARD HOMES, INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEET

                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                     ASSETS

                                                                  Dec. 31,               March 31,
CURRENT ASSETS                                                      1996                   1996
                                                                    ----                   ----

<S>                                                                <C>                    <C>       
      Cash                                                         $  534,820             $  210,245
      Accounts receivable, less allowance for doubtful
        accounts of $40,000                                           529,721                413,539
      Development fees and advances                                   408,504                270,864
      Due from affiliates, net                                        165,189                658,717
      Prepaid expenses and other                                      271,684                274,654
                                                                   ----------             ----------
                 Total current assets                               1,909,918              1,828,019


PROPERTY AND EQUIPMENT - NET                                        2,315,730              2,361,698


OTHER ASSETS

      Development fees                                                795,020                575,017
      Restricted assets                                                99,600                176,352
      Deferred income taxes                                           981,000                981,000
      Other assets                                                    128,256                165,453
                                                                   ----------             ----------
                                                                    2,003,876              1,897,822
                                                                   ----------             ----------

                                                                   $6,229,524             $6,087,539
                                                                   ==========             ==========
</TABLE>



THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS.

                                        2

<PAGE>
                  UNITED VANGUARD HOMES, INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEET

                                   (UNAUDITED)

                    LIABILITIES AND STOCKHOLDERS' DEFICIENCY

<TABLE>
<CAPTION>


                                                                     Dec. 31,              March 31,
                                                                       1996                 1996
                                                                       ----                 ----
CURRENT LIABILITIES
<S>                                                               <C>                       <C>
      Current portion of long-term debt                           $ 4,847,802               $626,043
      Accounts payable                                                162,202                242,470
      Accrued expenses                                              1,228,685                617,043
      Income taxes payable                                            416,389                442,371
                                                                  -----------            -----------
                 Total Current Liabilities                          6,655,078              1,927,927

RESIDENT SECURITY DEPOSITS                                            315,214                314,705

LONG-TERM DEBT, less current portion                                1,853,626              7,172,982

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' DEFICIENCY
      Preferred stock $.001 par value; 1,000,000
        shares authorized; none issued and outstanding
      Common stock, $.01 par value;  authorized,
        14,000,000 shares;  issued and outstanding,
        3,320,950 shares and 1,827,833 shares in
        Dec. 31, and March 31, 1996, respectively                      33,210                 18,278
      Additional paid-in capital                                    7,205,226              5,619,905
      Accumulated deficit                                          (9,832,830)            (8,966,258)
                                                                   ----------             ----------
                                                                   (2,594,394)            (3,328,075)
                                                                   ----------             ----------

                                                                   $6,229,524             $6,087,539
                                                                   ==========             ==========
</TABLE>



THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS.

                                        3

<PAGE>
                  UNITED VANGUARD HOMES, INC. AND SUBSIDIARIES

                       CONSOLIDATED STATEMENT OF EARNINGS

                                   (UNAUDITED)


<TABLE>
<CAPTION>


                                                              For the Three Months               For the Nine Months
                                                              Ended December 31,                 Ended December 31,
                                                              1996             1995              1996             1995
                                                              ----             ----              ----             ----

Operating Revenues:
<S>                                                           <C>             <C>              <C>             <C>       
     Resident Services                                        $ 1,256,595     $1,207,920       $3,777,826      $3,631,923
     Health care services                                         656,567        659,458        1,973,387       1,970,920
     Management Fees                                               30,000           -              30,000               -
     Development fees                                              81,040        510,215          220,000         930,215
                                                              -----------     ----------       ----------      ----------
                                                                2,024,202      2,377,593        6,001,213       6,533,058

Operating Expenses:
     Residence operating expenses                               1,590,863      1,571,891        4,566,278       4,432,632
     General and administrative                                   249,824        139,058          557,967         301,630
     Depreciation and amortization                                 65,966         94,141          203,922         312,693
     Provision for loss on (Recovery of)
      advances to affiliates                                            -        (41,898)          42,494         354,461
                                                              -----------     ----------       -----------     ----------
                                                                1,906,653      1,763,192        5,370,661       5,401,416

            Income from operations                                117,549        614,401          630,552       1,131,642

Other Income (expense)
     Interest expense, net                                       (145,399)      (113,181)        (415,327)       (460,763)
     Other income                                                  13,531        119,291          129,677         163,474
     Debt conversion expense                                            -              -         (156,466)              -
     Cost related to aborted Public Offering                   (1,000,000)             -       (1,000,000)              -
                                                              ------------    ----------       -----------       --------

            Income before income taxes                         (1,014,319)       620,511         (811,564)        834,353

Income Taxes                                                      (47,492)       252,615           55,008         339,672
                                                              ------------    ----------       -----------      ----------

            NET INCOME (LOSS)                                 $  (966,827)    $  367,896        $(866,572)      $ 494,681
                                                              ============    ==========        ==========      ==========

Earnings per share                                                  $(.29)        $.32              $(.39)             $.25

Common shares and equivalents outstanding                       3,320,950      1,158,118           2,243,895       1,972,342
</TABLE>


THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS.

                                        4

<PAGE>
                  UNITED VANGUARD HOMES, INC. AND SUBSIDIARIES

               CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIENCY

                       NINE MONTHS ENDED DECEMBER 31, 1996

                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                                  Additional
                                                                    Paid-in          Accumulated
                                           Shares        Amount      Capital             Deficit           Total
                                           ------        ------      -------             -------           -----

<S>                                      <C>            <C>         <C>              <C>                <C>
Balance, April 1, 1996                   1,827,833      $18,278     $5,619,905       $(8,966,258)       $(3,328,075)

Shares issued upon conversion
 of debt                                   347,996        3,480       1,386,918                           1,390,398

Exercise of warrants                        62,121          622        206,452                              207,074

Shares issued as compensation                3,000           30           2,751                               2,781

Shares reissued to VVI previously
  canceled conditional on completion
  of public offering                     1,080,000       10,800        (10,800)


Net loss for the nine months
  ended December 31, 1996                                                               (866,572)          (866,572)
                                         ---------      --------     ----------      -----------        -----------

Balance, December 31, 1996               3,320,950      $33,210      $7,205,226      $(9,832,830)       $(2,594,394)
                                         =========      =======      ==========      ============       ===========
</TABLE>


THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS.

                                        5

<PAGE>
                  UNITED VANGUARD HOMES, INC. AND SUBSIDIARIES

                 UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

                      FOR THE NINE MONTHS ENDED DECEMBER 31

<TABLE>
<CAPTION>

                                                                           1996               1995
                                                                           ----               ----
Cash flows from operating activities
<S>                                                                      <C>                 <C>     
  Net income                                                             ($866,572)          $494,681
  Adjustments to reconcile net income to net cash provided
    by (used in) operating activities
          Depreciation and amortization                                    238,925            312,742
          Common stock issued for services                                   2,781
          Deferred income taxes                                                              (498,309)
          Debt Conversion expense                                          156,466
          Changes in operating assets and liabilities
            Accounts receivable, advances and other receivables            (73,708)           877,504
            Prepaid expenses and other                                      18,578           (296,466)
            Development fees                                               154,806            368,034
            Decrease in due to affiliates                                  (61,278)
            Accounts payable                                               (80,365)           (38,940)
            Accrued expenses                                               611,642           (166,912)
            Income taxes payable                                           (26,000)           196,119
            Resident security deposits                                         507              8,037
            Deferred revenue                                                                 (177,221)
                                                                         ---------          ---------

          Net cash provided by operating activities                         75,782          1,079,269
                                                                         ---------          ---------

Cash flows used in investing activities
  Purchases of property and equipment                                     (144,600)           (46,257)
                                                                          ---------           --------

Cash flows from financing activities
  Proceeds from borrowings on mortgages and notes payable                  547,591
  Principal repayments of mortgages and notes payable                     (352,612)        (1,489,905)
  Proceeds from exercise of warrants                                       207,074
  Increase in additional paid-in capital                                                      661,167
  Increase in deferred cost                                                 (8,660)            
                                                                           -------         ----------

          Net cash used in financing activities                            393,393           (828,738)
                                                                           -------           --------

          NET INCREASE IN CASH                                             324,575            204,274

Cash at beginning of period                                                210,245            249,561
                                                                           -------           --------
Cash at end of period                                                     $534,820           $453,835
                                                                          ========           ========

Supplemental disclosures of cash flow information:
  Cash paid during the year for
          Interest                                                        $416,000           $470,000
                                                                          ========           ========
          Income taxes                                                     $81,000                 $0
                                                                          ========           ========
</TABLE>


THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS.

                                        6

<PAGE>
                  UNITED VANGUARD HOMES, INC. AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE A - BASIS OF PRESENTATION

  The accompanying  consolidated balance sheet as of December 31, 1996 and March
31, 1996, and the related consolidated statements of earnings and cash flows for
the nine month  periods  ended  December 31, 1996 and 1995 and the  statement of
stockholders'  deficiency for the nine month period ended December 31, 1996 have
been prepared by the management of United Vanguard  Homes,  Inc. (the "Company")
without audit. In the opinion of management, all adjustments (which include only
normal recurring accrual adjustments)  necessary to present fairly the financial
position and results of operations as of and for the nine months ended  December
31, 1996 have been made.

  Certain information and footnote  disclosures,  normally included in financial
statements prepared in accordance with generally accepted accounting principles,
have been condensed or omitted.  These  financial  statements  should be read in
conjunction  with the financial  statements  and notes  thereto  included in the
Company's  Annual  Report on Form 10-K for the year ended  March 31,  1996.  The
results of operations for the period ended December 31, 1996 are not necessarily
indicative of the operating results expected for a full year.

NOTE B - STOCKHOLDERS' EQUITY

     CONVERTIBLE DEBT

     In March 1996, the Company  offered the  convertible  mortgage  holders and
noteholders  the option to convert,  through April 30, 1996, to shares of common
stock at a price of $3.75 instead of prices ranging from $6.67 through $7.22. In
April 1996, 347,996 common shares were issued in connection with the offer. As a
result  of  the  offer,  the  Company  issued  167,877  additional  shares  upon
conversion,  the fair  value of  which,  $156,466,  has  been  recorded  as debt
conversion expense in the accompanying  consolidated statement of operations for
the nine months ended December 31, 1996.

     STOCK OPTION PLAN

     In June 1996, the Company adopted the 1996 Outside  Directors' Stock Option
Plan (the "Directors Plan"), which provides for the grant of options to purchase
common  stock of the  Company  to  nonemployee  directors  of the  Company.  The
Directors'  Plan authorizes the issuance of a maximum of 90,000 shares of common
stock.

     The Directors' Plan is  administered  by the Board of Directors.  Under the
Directors'  Plan,  each  nonemployee  director  elected after April 1, 1996 will
receive  options for 3,000 shares of common stock upon  election.  To the extent
that shares of common stock remain  available for the grant of options under the
Directors'  Plan,  each  year  on  April  1,  commencing  April  1,  1997,  each
nonemployee  director  will be granted  an option to  purchase  1,800  shares of
common  stock.  The exercise  price per share for all options  granted under the
Directors' Plan will be equal to the fair market value of the common stock as of
the date  preceding  the date of grant.  All options  vest in three equal annual
installments.

     EMPLOYMENT AGREEMENTS

     As of April 1, 1996, the Company entered into an employment  agreement with
the Company's  President and Chief Operating Officer pursuant to which an annual
base salary under the  employment  agreement is $100,000.  In December 1995, the
President  received a $25,000  cash bonus and the Company  agreed to issue 9,000
shares of the  Company's  common  stock fair valued at $5.55 per share.  In June
1996,  The  President  received  a $25,000  cash  bonus and 3,000  shares of the
Company's  common stock fair valued at $.93 per share.  An  additional  bonus of
$25,000 and 3,000 shares of the  Company's  common stock is payable on March 31,
1998, subject to continued employment.

                                        7

<PAGE>
NOTE C - CONTINGENCIES

     An  affiliate  of  Vanguard  Ventures,  Inc.  ("Vanguard"),  the  Company's
majority  stockholder,  was  indebted  under a first  mortgage in the  principal
amount of  $4,081,000.  The mortgage  securing this loan provides that a default
under such loan is a default  under each of the Company's  Hillside  Terrace and
Whitcomb  Tower  Mortgages.  Therefore,  a  potential  Vanguard  default on this
affiliate's  loan  could  result in the  foreclosure  of  Hillside  Terrace  and
Whitcomb Tower.

     Health  care and  senior  living  facilities  are  areas of  extensive  and
frequent  regulatory  change.  Changes  in the  laws or new  interpretations  of
existing laws can have a significant effect on methods of doing business,  costs
of doing  business and amounts of  reimbursement,  from  governmental  and other
payors.  The Company at all times attempts to comply with all  applicable  fraud
and abuse  laws;  however,  there can be no  assurance  that  administrative  or
judicial interpretation of existing laws or regulations will not have a material
adverse effect on the Company's operations or financial conditions.

NOTE D - WITHDRAWAL FROM PUBLIC OFFERING

     The  Company  withdrew  from its  Public  Offering  due to  adverse  market
conditions relating to the senior living facility industry sector at the time of
the Offering.

NOTE E - RE-ISSUE OF COMMON STOCK

     Due to the  cancellation  of the Public  Offering,  1,080,000  shares  were
re-issued to Vanguard Ventures,  Inc. which were previously canceled conditional
on completion of the Public Offering.

NOTE F - PROMISSORY NOTE

     In August 1996, the Company received a $450,000 installment loan from State
Bank of Long  Island.  The  principal is payable in 36 equal  installments  plus
interest at prime plus 1 1/2.






                                        8

<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

NINE MONTHS ENDED 1996 VS. 1995

REVENUES

     Net revenues of the Company represent its gross consolidated revenues, less
charitable and Supplementary Social Security Income discounts.

     Net  revenues  decreased by $532,000,  or 8%, from  $6,533,000  in the 1995
period to $6,001,000 in the 1996 period.  Approximately $710,000 of the decrease
represented  development  fees.  Development  fees can vary  substantially  from
quarter to quarter  depending  upon the number of projects in  development,  the
percentage  of  completion  and,  in  certain  instances,  the  project  owner's
financial condition. Development fees are generally deferred in periods in which
the  project  owner's  ability to remit  such fees is  uncertain.  Resident  and
healthcare  services revenues  increased by $148,000,  or 3%, from $5,604,000 in
the 1995  period to  $5,752,000  in the 1996  period.  Resident  and  healthcare
services  revenues  increased  as a result of  higher  rates as well as a slight
increase in occupancy rates.

RESIDENCE OPERATING EXPENSES

     Residence  operating  expenses include all retirement and healthcare center
operating  expenses,  including,  among other  things,  payroll and  employments
costs, food, utilities, repairs and maintenance, insurance and property taxes.

     Residence operating expenses increased by $134,000,  or 3%, from $4,430,000
in the 1995 period to  $4,570,000  in the 1996  period.  During the 1996 period,
payroll costs increased by  approximately  $173,000 due to salary  increases and
additional  personnel.  Further,  in the 1996  period,  $173,000  of  additional
maintenance  was performed at the Company's  Michigan  facilities as part of the
Company's refurbishment plan.

GENERAL AND ADMINISTRATIVE EXPENSES

     General and administrative expenses include all marketing costs, as well as
the general and  administrative  expenses  incurred at the  Company's  principal
executive  offices.  General and  administrative  expenses include,  among other
things,   administrative  salaries,  rent,  utilities,   insurance  and  related
expenses.

     General and  administrative  expenses  increased by $303,000,  or 85%, from
$302,000  in the 1995 period to $558,000  in the 1996  period.  The  increase is
primarily attributable to increased administrative staff and salary increases.

PROVISION FOR RECOVERY ON ADVANCES TO AFFILIATES

     Losses on advances to  affiliates  decreased by $312,000 in the 1995 period
to $43,000 in the 1996 period.  The decrease is  primarily  attributable  to the
Company's  successful turn around efforts at the Whittier,  an affiliate managed
by the  Company,  and by a reduction  in operating  cash  requirements  of other
affiliates.

COSTS RELATED TO ABORTED PUBLIC OFFERING

     A write-off of  estimated  expenses  incurred  during the nine month period
ended  December  31,  1996 in  connection  with the  proposed  Public  Offering,
Registration Statement Nos. 33-80812 and 333-09037.

INTEREST EXPENSE, NET

     Interest expense,  net, decreased by $45,000 or 10%, from $461,000,  in the
1995  period  to  $415,000  in  the  1996  period.  The  decrease  is  primarily
attributable to the conversion of $1,305,000 of debt to equity.

                                        9

<PAGE>
DEBT CONVERSION EXPENSE

     The Company  offered its debtholders an inducement in the form of a reduced
conversion price on its then outstanding debt. As a result of such inducement an
aggregate of $1,305,000 of the Company's  debt was converted into 347,996 shares
of the  Company's  Common  Stock  effective  April 1, 1996.  As a result of such
inducement,  the Company issued 167,877  additional shares upon conversion,  the
fair value of which,  $156,466,  has been  recorded as debt  conversion  expense
during the 1996 period.

INCOME TAXES

     Income  taxes  decreased  by $285,000,  or 83%,  from  $340,000 in the 1995
period  to  $55,000  in the 1996  period.  The  decrease  is due to the Net Loss
primarily  attribute  to the  write-off of costs  related to the aborted  Public
Offering.




LIQUIDITY AND CAPITAL RESOURCES

     At December 31, 1996 the  Company's  cash position was improved by $324,600
due to the August 1996 installment loan. Current liabilities were up $4,700,000,
primarily due to the  reclassification  of part of the  Company's  mortgage debt
from  long-term to  short-term.  Mortgages on Hillside  Terrace and the Whitcomb
Tower in the amount of $4,330,000  are due April 30, 1997.  Failure to extend or
refinance these  mortgages would have a material  adverse effect on the Company.
However,  the Company  anticipates  that these  mortgages  will be extended on a
year-to-year  basis as they have been for the last two years.  In addition,  the
Company is pursuing alternate permanent financing for these properties.

     When used in Management's Discussion and Analysis or Plan of Operation, the
words "anticipate,"  "estimate" and similar expressions are intended to identify
forward-looking  statements.  These  statements are subject to certain risks and
uncertainties  that could cause actual results to differ  materially  from those
projected.



THREE MONTHS 1996 VS. 1995

     The principal  reasons for the changes in  operations  for the three months
ended  December  31, 1996 vs. 1995 are  outlined in the  discussion  of the Nine
months  Results.  No material items which adversely  affected  liquidity and the
financial position occurred in the three-month period.



                                       10

<PAGE>
                          Part II -- OTHER INFORMATION

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

     (a)    Exhibits

                  Exhibit 11, Computation of Earnings Per Share.
                  Exhibit 27, Financial Data Schedule.

     (b)    Report on 8-K

                  No reports on Form 8-K were filed during this period.





                                       11
<PAGE>

                                   SIGNATURES

     In accordance  with the  requirements  of the Exchange Act, the  Registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                             /s/ Carl G. Paffendorf
                             -----------------------------------------
                             Carl G. Paffendorf, Chairman of the Board


                             /s/ Paul D'Andrea
                             -----------------------------------------
                             Paul D'Andrea, Vice President - Finance



Date:  April 30, 1997

                                       12