SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-K

[X]  Annual Report  pursuant to Section 13 or 15(d) of the  Securities  Exchange
     Act of 1934 for the fiscal year ended December 31, 1997, or

[ ]  Transition  report  pursuant  to  Section  13 or  15(d)  of the  Securities
     Exchange Act of 1934 for the transition period from
                                                         -----------------------
     to
        ------------------

Commission file number 0-16815
                       -------

              NHP RETIREMENT HOUSING PARTNERS I LIMITED PARTNERSHIP

             (Exact name of registrant as specified in its charter)

DELAWARE                                                        52-1453513
--------------------------------------------------------------------------------
(State or other Jurisdiction of                              (I.R.S. Employer
incorporation or organization)                              Identification No.)

14160 Dallas Parkway, Suite 300, Dallas, Texas                     75240
--------------------------------------------------------------------------------
(Address of principal executive offices)                         (Zip Code)

Registrant's telephone number, including area code:            (972) 770-5600
                                                               --------------


Securities registered pursuant to Section 12(g) of the Act:

                                 Title of Class
                                 --------------
                  42,711 Limited Partnership Assignee Interests


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  twelve 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
                                       ---     ---

Indicate by check mark if disclosure of delinquent  filers  pursuant to Item 405
of Regulation  S-K (ss.  229.405 of this Chapter) is not contained  herein,  and
will not be contained,  to the best of  registrant's  knowledge,  in defini tive
proxy or information  statements  incorporated  by reference in Part III of this
Form 10-K or any amendment to this Form 10-K.  [ ]

     The Registrant's  outstanding  securities  consist of assignee interests in
limited partnership  interests which have no readily  ascertainable market value
since there is no public trading market for these  securities on which to base a
calculation of aggregate market value.

     Documents incorporated by reference.   None
                                           ------

                                                                    Page 1 of 25
                                                                    ------------
                                                          Exhibit Index: Page 24

<PAGE>


              NHP RETIREMENT HOUSING PARTNERS I LIMITED PARTNERSHIP

                        (A Delaware Limited Partnership)
                          1997 Form 10-K Annual Report


                                TABLE OF CONTENTS


                                     PART I
                                     ------
                                                                            Page
                                                                            ----

Item 1.      Business                                                         1
Item 2.      Properties                                                       2
Item 3.      Legal Proceedings                                                3
Item 4.      Submission of Matters to a Vote of Security Holders              3


                                     PART II
                                     -------

Item 5.      Market for the Registrant's Pension Notes and Limited
                Partnership Assignee Interests and Related Partnership
                Matters                                                       3
Item 6.      Selected Financial Data                                          4
Item 7.      Management's Discussion and Analysis of Financial Condition
                and Results of Operations                                     4
Item 8.      Financial Statements and Supplementary Data                      6
Item 9.      Changes in and Disagreements with Accountants on
                Accounting and Financial Disclosure                          21


                                    PART III
                                    --------

Item 10.     Directors and Executive Officers of the Registrant              21
Item 11.     Executive Compensation                                          22
Item 12.     Security Ownership of Certain Beneficial Owners and
                Management                                                   23
Item 13.     Certain Relationships and Related Transactions                  23


                                     PART IV
                                     -------

Item 14.     Exhibits, Financial Statement Schedules and Reports on
               Form 8-K                                                      24


<PAGE>

                                     PART I
                                     ------

Item 1.  Business
------   --------

     NHP Retirement Housing Partners I Limited Partnership (the Partnership),  a
Delaware  limited  partnership,  was formed under the Delaware  Revised  Uniform
Limited  Partnership  Act as of March 10,  1986.  On  September  23,  1986,  the
Partnership  commenced  offering  25,000  Assignee  Interests and 50,000 Pension
Notes,  both at a price of  $1,000  per unit  (the  Offering).  The  Partnership
subsequently  exercised  its right to increase the  offering to 75,000  Assignee
Interests and 100,000 Pension Notes. The offering was managed by NHP Real Estate
Securities,  Inc. and was terminated on September 22, 1987,  with  subscriptions
for 42,711 Assignee Interests and 42,697 Pension Notes.

     The Assignee  Interests  were sold to taxable  individuals  or entities and
represent assignments of limited partnership interests in the Partnership issued
to  NHP  RHP-I  Assignor   Corporation   (Assignor   Corporation),   a  Delaware
corporation,  the assignor and sole limited partner.  Pension Notes were sold to
qualified  profit-sharing,  pension and other retirement trusts, bank commingled
trust  funds for such  trusts,  Keogh  Plans and IRAs,  government  pension  and
retirement  trusts,  and  other  entities  intended  to be exempt  from  Federal
taxation.  The Pension Notes are obligations of the  Partnership  issued under a
Trust  Indenture  between the  Partnership  and The National  Bank of Washington
(NBW),  Washington,  D.C., as Trustee,  and have a preference  over the Assignee
Interests  with  respect  to  payment.  In August  1990,  the assets of NBW were
purchased by Riggs  National Bank,  Washington,  D.C. which became the successor
trustee.  In November 1996, Riggs National Bank transferred its trust operations
to the Bank of New  York,  New  York  City,  which  claims  to be the  successor
trustee.

     The original  General  Partner of the  Partnership  was NHP/RHGP-I  Limited
Partnership (NHP/RHGP-I),  a Delaware limited partnership, and NHP/RHGP-I held a
2%  interest  as general  partner in the  Partnership.  On  December  19,  1991,
NHP/RHGP-I  executed an amended and  restated  purchase  agreement  with Capital
Realty Group Properties,  Inc. (CRG), a Texas  corporation,  for the transfer of
its general partner interests in the Partnership.  CRG assigned its rights under
this purchase  agreement to an affiliate,  Capital Realty Group Senior  Housing,
Inc.  (CRGSH),  a Texas  corporation.  The substitution of CRGSH as sole general
partner  of  the  Partnership  required  the  consent  of  50%  or  more  of the
outstanding  Assignee  Interests  which had been issued by the  Partnership  and
assigned by Assignor Corporation to the Assignee Holders.  Under the Partnership
Agreement,  holders of the Pension Notes are not entitled to vote. Pursuant to a
Consent  Solicitation dated October 25, 1994, Assignee Holders holding more than
64% of the equity  interests in the Partnership  approved the election of CRGSH,
as the replacement  general partner of the  Partnership.  Effective  January 23,
1995, CRGSH became the new sole general partner of the  Partnership.  CRGSH is a
wholly owned subsidiary of Capital Realty Group Corporation, a Texas corporation
(Capital).  Capital is owned 50% by James A. Stroud (through a trust) and 50% by
Jeffrey L. Beck. The address of the principal  executive offices of CRGSH is the
same as the Partnership:  14160 Dalla Parkway,  Suite 300, Dallas,  Texas 75240,
and their  telephone  number  at such  address  is the same as the  Partnership,
(972)770-5600.

     The  Partnership's  business  is to acquire  existing  and to  develop  new
residential  rental  properties for retirement age occupants (the Properties) to
the  extent  possible  on an  all  cash  basis  (without  third  party  mortgage
indebtedness)  and to operate such  Properties.  The Partnership  presently owns
four  properties  and has a 99.99%  interest  in a fifth  property.  See Item 2.
Properties for a description of these Properties and the business plan for these
Properties.

     Effective  January 1, 1992,  CRGSH was selected by NHP/RHGP-I to manage the
five  Properties of the  Partnership.  Effective June 1, 1993,  the  Partnership
entered  into  a  Partnership   Management   Agreement  with  CRGSH  to  provide
administrative   services  on  behalf  of  the  Partnership.   This  Partnership
management agreement was terminated effective upon CRGSH becoming the substitute
general  partner.  CRGSH assigned its contract  rights to manage the Partnership
properties  to Capital  Senior  Living,  Inc.  ("CSL"),  a subsidiary of Capital
Senior Living Corporation, effective February 1, 1996.

     The Partnership did not have any employees as of December 31, 1997.

                                       1

<PAGE>

Regulatory Matters
------------------

     Federal,   state  and  local  government  regulations  govern  fitness  and
adequacy,  equipment,  personnel  and standards of medical care at a health care
facility,  as  well  as  health  and  fire  codes.  Changes  in  the  applicable
regulations  could  adversely  affect the operations of a property,  which could
also affect the financial  results of the Partnership.  Any impact from proposed
health care  legislation is not known at this time;  however,  such impact could
adversely affect the Partnership operations.

Item 2.  Properties
------   ----------

     The following is a schedule of the Properties owned by the Partnership. All
of the  Properties  are owned in fee  directly  by the  Partnership  except  The
Amberleigh,  which is owned by a limited partnership in which the Partnership is
a 99.99%  partner.  The  Properties  are encumbered by mortgages in favor of the
trustee for the benefit of the Pension Note holders.

                                          Units Occupied        Units Occupied
                             Number     as a Percentage of    as a Percentage of
       Property                of       Total Units, as of    Total Units, as of
     Name/Location            Units      December 31, 1997     December 31, 1997
     -------------           ------     ------------------    ------------------

Veranda Club                  189              96%                    98%
  Boca Raton, Florida

The Amberleigh                271              97%                    98%
  At Woodstream Farms
  Williamsville, New York

The Atrium at Carmichael      153              99%                    98%
  Sacramento, California

Crosswood Oaks                122              91%                    86%
  Sacramento, California

The Heatherwood               160              98%                    81%
  Southfield, Michigan





                                       2





<PAGE>



     The cornerstones of the General  Partner's  business plan for continuing to
improve the  Properties'  performance  are  expanding  the  services  offered to
residents to include special  services and home health care programs,  continued
effective  use of  creative  marketing  techniques  such as  outreach  to  local
hospitals  and  physicians,  and sound,  cost  effective  site  operations.  The
introduction  of special  services  and home  health care is intended to end the
premature  loss of  tenants  which  some of the  Partnership's  properties  have
experienced  in the past.  Special  services  and home health care also tends to
attract the well  elderly to a community  because  they see the  possibility  of
receiving assistance in their day-to-day living (e.g., bathing, dressing, eating
and taking medication) without having to move to another facility at a difficult
time. Thus, offering special services and home health care tends to attract more
people who know they can stay for a longer period,  with obvious benefits to the
community's  occupancy and resident turnover.  The General Partner believes this
philosophy provides an opportunity for improved operations at the Properties.

     Due to  aging  of the  Properties  and the  Partnership's  goal  to  remain
competitive in its real estate markets, the General Partner developed an ongoing
capital  improvement program that was implemented in 1994. The program varies by
property, but generally includes painting of the building, replacement of carpet
and  curtains,  purchase  of new  furniture  and  furniture  refurbishment,  and
purchase of new equipment.  In 1997 , 1996 and 1995 , $1,022,465 (which includes
a land purchase of $502,440), $712,919, and $525,567 respectively, was spent for
capital  expenditures.  Budgeted capital expenditures for 1998 are approximately
$619,520 .


Item 3.  Legal Proceedings
------   -----------------

     The  Partnership  is not involved in any material  legal  proceedings as of
March 1, 1998.


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

         None.

                                     PART II
                                     -------

Item 5.  Market  for the  Registrant's  Pension  Notes and  Limited  Partnership
         -----------------------------------------------------------------------
         Assignee Interests and Related Partnership Matters
         --------------------------------------------------

          (a)  Assignee  Interests  and Pension Notes were sold through a public
               offering managed by NHP Real Estate Securities, Inc. There is not
               currently,  and it is not  anticipated  that  there  will be, any
               established   public   trading  market  for  resale  of  Assignee
               Interests  or Pension  Notes.  Accordingly,  an  investor  may be
               unable  to sell  or  otherwise  dispose  of his  interest  in the
               Partnership.

          (b)  As of March 1,  1998,  there  were  2,403  registered  holders of
               Assignee Interests and 3,206 registered holders of Pension Notes.

               As of March 1, 1998,  an affiliate of the general  partner of the
               Partnership had purchased  approximately 13,478 Pension Notes, or
               approximately  31.6%  of the  Partnership's  outstanding  Pension
               Notes.

          (c)  Each Pension Note bears stated  interest in an amount equal to 13
               percent  per annum,  9 percent of which was  subject to  deferral
               through  December  31,  1988 and 6 percent of which is subject to
               deferral  thereafter.  Interest is payable  quarterly.  Quarterly
               distributions  of Cash Available for  Distribution (as defined in
               the  Partnership  Agreement)  are  payable to  Assignee  Interest
               Holders within 60 days after the end of each three-month  period,
               subject to the General Partner' right to restrict or suspend such
               distributions for limited periods, if the General Partner, in its
               absolute   discretion,   determines  that  such   restriction  or
               suspension is in the best interests of the Partnership.

                                       3

<PAGE>

               For each of the years ended  December  31, 1997 , 1996 and 1995 ,
               interest  paid to the  Pension  Note  Holders as a group  totaled
               $2,987,040,  $2,995,574, and $2,987,040 , respectively, per year.
               With  respect to the fourth  quarter of 1997 , interest  payments
               paid to Pension  Note  Holders on February  28, 1998  amounted to
               $752,734 .

               No cash  distributions were paid to the Assignee Interest Holders
               during 1997 , 1996 , or 1995 . As presented  in the  Statement of
               Cash  Flows  (as  excerpt  below),   cash  and  cash  equivalents
               increased  $478,552 and $538,577 for the years ended December 31,
               1997 and 1996  respectively,  and decreased $114,543 for the year
               ended  December 31, 1995 . Future cash  requirements  have caused
               the  General  Partner  to  determine  that it is not  financially
               appropriate to make  distributions to Assignee  Interest Holders.
               The  General  Partner  anticipates  that  distributions  will  be
               suspended until operating results significantly improve. See Item
               7 below.


Item 6.  Selected Financial Data
------   -----------------------
<TABLE>
<CAPTION>

                                                                 Years Ended December 31,
<S>                                  <C>               <C>               <C>                <C>               <C>

                                          1997              1996              1995             1994               1993
                                          ----              ----              ----             ----               ----

Revenue                              $  15,548,138     $  14,488,099     $  14,020,626      $  13,445,022     $  12,247,313
                                     =============     =============     =============      =============     -------------

Loss due to reduction
   in carrying value of
   rental property                   $           0     $           0     $           0      $           0     $   3,300,000
                                     =============     =============     =============      =============     =============

Net loss                             $   3,522,917     $   3,574,668     $   3,690,549      $   3,773,975     $   7,580,517
                                     =============     =============     =============      =============     =============


Net Loss per Assignee Interest       $          81     $          82     $          85      $          87     $         174
                                     =============     =============     =============      =============     =============


Total assets                         $  55,585,840     $  56,071,884     $  57,749,496      $  58,967,958     $  60,399,012
                                     =============     =============     =============      =============     =============

Long-term obligations -
   Pension Notes, and related
   interest payable                  $  66,402,407     $  63,353,172     $  60,573,461      $  58,039,450     $  55,729,421
                                     =============     =============     =============      =============     =============
Cash distributions per
   Assignee Interest                 $           0     $           0     $           0      $           0     $           0
                                     =============     =============     =============      =============     =============

</TABLE>


Item 7. Management's  Discussion and Analysis of Financial Condition and Results
        ------------------------------------------------------------------------
        of Operations
        -------------

Results of Operations
---------------------

     Income from rental  operations  increased to $3,166,234 from $2,706,587 and
$2,377,625  for  the  years  ended  December  31,  1997  ,  1996  ,  and  1995 ,
respectively.  Rental revenue  increased in 1997 to $15,243,028 from $14,241,055
in  1996 , or an  increase  of 7.0 %,  primarily  as a  result  of  rental  rate
increases and improved  occupancy at Crosswood Oaks and the Heatherwood.  Rental
expenses also increased to $12,381,904 in 1997 from  $11,781,512 in 1996 , or an
increase of 5.1 %, reflecting increased costs primarily in salaries,  management
fees,  administration,  depreciation,  taxes  and  insurance  costs,  utilities,
maintenance  and  food  services.  The  Partnership's  net  loss is  $3,522,917,
$3,574,668, and $3,690,549 for the years ended December 31, 1997, 1996 and 1995,
respectively.

     Rental revenue  increased in 1996 to $14,241,055  from $13,754,959 in 1995,
or an increase of 3.5%,  primarily as a result of increased rental rates. Rental
expenses also increased to  $11,781,512 in 1996 from  $11,643,001 in 1995, or an
increase of 1.2%, reflecting increased costs in management fees, administration,
depreciation, taxes and insurance, utilities, maintenance and resident services.

                                       4

<PAGE>

Liquidity and Capital Resources
-------------------------------

     Net cash  provided by  operating  activities  during  1997 was  $1,561,977,
representing a significant  improvement  over 1996 and 1995 net cash provided by
operating activities of $1,125,278 and $659,336,  respectively. Rent collections
increased in 1997 to $15,239,499  from $14,244,537 in 1996, an increase of 7.0%,
primarily from rental rate increases and increased occupancies at Crosswood Oaks
and the Heatherwood.  Rental collections  likewise increased from $13,747,228 in
1995 to $14,244,537 in 1996, or an increase of 3.6%,  primarily from rental rate
increases.  Operating  expenses  paid  increased  from  $10,370,794  in  1996 to
$10,996,792  in 1997,  or an increase  of 6.0%,  reflecting  increased  costs in
salaries,  management fees, administration,  depreciation,  taxes and insurance,
utilities,  maintenance  and food  services.  Operating  expenses  paid slightly
increased from  $10,366,496  in 1995 to  $10,370,794 in 1996.  Interest paid was
$2,987,040 in 1997, $2,995,574 in 1996 and $2,987,040 in 1995.

     For the  years  ended  1997 , 1996 and 1995 , cash  generated  from  rental
operations was sufficient to pay the base interest  amount on the $42,672,000 of
outstanding   Pension  Notes  of  $2,987,040,   $2,995,574,   and  $2,987,040  ,
respectively.  Interest payments on the Pension Notes are accrued at a 13% rate,
but were paid  based on a 7% pay rate in 1997 , 1996 , and 1995 . The  remaining
6% unpaid portion for these years as well as amounts  deferred in prior years in
accordance  with the terms of the Pension Notes  continues to be accrued and are
due at maturity,  December 31, 2001. Accrued and unpaid interest at December 31,
1997 ,  amounted  to  $23,730,407  . At the time of the  maturity of the Pension
Notes, total principal and accrued interest due will approximate $81 million.

     Cash and cash  equivalents at December 31, 1997,  amounted to $4,495,733 as
compared to  $4,017,181  at December  31,  1996.  Cash  required by  operations,
including  interest on Pension  Notes,  has been  funded by maturing  short-term
investments or available cash on hand. Though operations improved in the current
year, if operations do not improve significantly in the long-term,  future funds
may not be  available  to meet  operating  requirements  or for  payment  of the
Pension Notes and accrued interest a described herein. This cash need has caused
the General Partner to determine that it is not financially  appropriate to make
distributions to Assignee Interest Holders. The General Partner anticipates that
distributions to the Assignee Interest Holders will be suspended until operating
results significantly improve.

     The Trust Indenture  Agreement (the  Indenture)  governing the terms of the
Pension Notes provides for certain events of default.  The Partnership  would be
in default under the Notes for any of the following reasons:  (i) the failure of
the  Partnership  to pay  interest on a  quarterly  basis for any quarter at the
stated pay rate of 7%; (ii) the default in payment of  principal  of the Pension
Notes at maturity or upon call or redemption of the Notes;  (iii) default by the
Partnership in the performance or breac of any covenant; and (iv) institution or
decree of bankruptcy of the Partnership. All covenants included in the Indenture
are non-financial in nature.  Additionally,  the Indenture  provides for call or
redemption of the Notes either at the election of the  Partnership  or upon sale
or refinancing of the underlying properties of the Partnership.

     The Partnership  Agreement does not  specifically  prohibit the Partnership
from incurring  additional  mortgage  indebtedness  related to the Properties by
borrowing  from banks and other  institutional  lenders in order to finance  the
acquisition and development of Properties.  Although it is the present intent of
the  Partnership to hold the  Properties  free and clear of third party mortgage
indebtedness  (other than the mortgages in favor of the Pension  Notes),  to the
extent that  financing is available at favorable  rates and would be in the best
interest  of  investors,  the  Partnership  may  obtain  future  financings  for
Properties, subject to applicable limitations.

     Although cash flow from  operations  improved in 1997 , cash generated from
operations prior to 1994 had not been adequate to meet the Partnership's minimum
interest payment  requirements.  The annual shortfall was approximately  $59,000
during 1993, and averaged  approximately  $1.5 million annually in the five-year
period  prior to 1993.  The  shortfall  had been  funded by  Partnership's  cash
reserves,  which  principally  resulted  from funds  remaining  from the initial
offering  of  Partnership   Assignee  Interest  and  Pension  Notes,  after  the
acquisition   of  the   Partnership's   Properties.   Given  the  level  of  the
Partnership's  cash reserves at December 31, 1997 , if the Partnership is unable
to  significantly  increase  cash  generated  from  operations  over time,  cash
reserves may not be sufficient to fund its deferred Pension Note interest.

                                       5

<PAGE>

     If interest  payments continue to be deferred at the current rate (see Note
6 to the  financial  statements),  the total  accrual  for unpaid  interest  and
principal will  approximate  $81 million at December 31, 2001, the maturity date
of the  Pension  Notes  which  is far in  excess  of  projected  cash  reserves.
Accordingly,  there will need to be very significant  improvements in cash flows
from operations  and/or  increases in the disposition and refinancing  values of
the  Properties  to fund both the  accrued  interest  and the face  value of the
Pension Notes upon their maturity.

     During July 1997, the Partnership obtained appraisals of the current market
value of its properties. As of December 31, 1997, the July 1997 appraised values
exceeded the  Partnership's  net book value of its properties.  The Partnership,
however,  does not intend to sell any Properties in the near future,  but rather
intends to continue to hold and operate them as rental properties.

     Management's  plans are to continue to manage the  Properties  prudently to
achieve positive cash flows from operations after interest payments.

Year 2000 Issue
---------------

     The Partnership  has developed a plan to modify its information  technology
to be ready for the year 2000. The Partnership  relies upon PC-based systems and
does not expect to incur  material  costs to transition  to Year 2000  compliant
systems in its internal operations. The Partnership does not expect this project
to have a significant  effect on operations.  The  Partnership  will continue to
implement  systems  and all new  investments  are  expected to be with Year 2000
compliant software.

Item 8.  Financial Statements and Supplementary Data
------   -------------------------------------------

     The financial  statements and  supplementary  data of the  Partnership  are
included on pages 8 through 21 of this report.







                                       6

<PAGE>






                REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS



The Partners
NHP Retirement Housing Partners I Limited Partnership

We have  audited  the  accompanying  statements  of  financial  position  of NHP
Retirement  Housing  Partners I Limited  Partnership as of December 31, 1997 and
1996, and the related statements of operations,  partners' equity (deficit), and
cash flows for each of the three years in the period  ended  December  31, 1997.
These  financial   statements  are  the   responsibility  of  the  partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audits.

We  conducted  our  audits  in  accordance  with  generally   accepted  auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects, the financial position of NHP Retirement Housing Partners
I Limited  Partnership  at  December  31,  1997 and 1996 and the  results of its
operations  and its cash flows for each of the three  years in the period  ended
December 31, 1997, in conformity with generally accepted accounting principles.




                                                  Ernst & Young LLP
Dallas, Texas
February 13, 1998







                                       7

<PAGE>

<TABLE>
<CAPTION>


              NHP RETIREMENT HOUSING PARTNERS I LIMITED PARTNERSHIP
              -----------------------------------------------------

                              A LIMITED PARTNERSHIP
                              ---------------------

                        STATEMENTS OF FINANCIAL POSITION
                        --------------------------------


                                                                                     December 31,
                                                                                     ------------

                                                                           1997                         1996
                                                                           ----                         ----


                                                   ASSETS (Note 6)
                                                   ------
<S>                                                                <C>                           <C>

Cash and cash equivalents (Note 2)                                 $       4,495,733             $      4,017,181

Interest receivable                                                                0                        1,200

Other receivables                                                             31,892                       28,363

Pension notes issuance costs (Note 1)                                      1,009,842                    1,264,634

Pension notes organization costs (Note 1)                                    215,326                      265,102

Prepaid expenses                                                             300,654                      285,111

Rental property (Notes 1, 4 and 10):
   Land                                                                    6,820,468                    6,318,028

   Buildings and improvements, net of
     accumulated depreciation of $15,456,154
     in 1997 and $13,752,920 in 1996                                      42,670,005                   43,853,213

Other assets                                                                  41,920                       39,052
                                                                   -----------------             ----------------

Total assets                                                       $      55,585,840             $     56,071,884
                                                                   =================             ================


                                          LIABILITIES AND PARTNERS' DEFICIT
                                          ---------------------------------


Liabilities:
   Accounts payable                                                $         320,796             $        336,446
   Interest payable (Note 6)                                              23,730,407                   20,681,172
   Pension Notes (Note 6)                                                 42,672,000                   42,672,000
   Other liabilities (Note 2)                                                882,625                      818,377
                                                                   -----------------             ----------------

                                                                          67,605,828                   64,507,995
                                                                   -----------------             ----------------
Partners' deficit (Notes 5 and 7):
   General Partner                                                        (1,596,670)                  (1,465,252)
   Assignee Limited Partner - 42,691
     investment units outstanding                                        (10,423,318)                  (6,970,859)
                                                                   -----------------             ----------------

Total partners' deficit                                                  (12,019,988)                  (8,436,111)
                                                                   -----------------             ----------------

Total liabilities and partners' deficit                            $      55,585,840             $     56,071,884
                                                                   =================             ================

                                          See notes to financial statements.

</TABLE>


                                       8

<PAGE>

<TABLE>
<CAPTION>

              NHP RETIREMENT HOUSING PARTNERS I LIMITED PARTNERSHIP
              -----------------------------------------------------

                              A LIMITED PARTNERSHIP
                              ---------------------

                            STATEMENTS OF OPERATIONS
                            ------------------------

                                                                               Year Ended December 31,
                                                                               -----------------------
<S>                                                            <C>                  <C>                  <C>

                                                                      1997                1996                   1995
                                                                      ----                ----                   ----

REVENUES:
   Rental income                                                $   15,243,028       $   14,241,055       $    13,754,959

   Interest income                                                      89,872               79,811                83,348
   Other income                                                        215,238              167,233               182,319
                                                                --------------       --------------       ---------------

                                                                    15,548,138           14,488,099            14,020,626
                                                                --------------       --------------       ---------------

COSTS AND EXPENSES:
   Salaries, related benefits and overhead reimbursements (Note 3)   3,984,975            3,825,002             3,919,906
   Management fees, dietary fees and other services (Note 3)         1,432,813            1,350,502             1,326,272
   Administrative and marketing                                        778,400              754,504               700,594
   Utilities                                                           890,070              874,156               852,805
   Maintenance                                                         521,464              451,412               444,394
   Resident services, other than salaries                              296,468              297,794               292,097
   Food services, other than salaries                                1,591,266            1,511,771             1,513,898
   Depreciation                                                      1,703,233            1,615,089             1,525,513
   Taxes and insurance                                               1,183,215            1,101,282             1,067,522
                                                                --------------       --------------       ---------------

                                                                    12,381,904           11,781,512            11,643,001
                                                                --------------       --------------       ---------------

INCOME FROM RENTAL OPERATIONS                                        3,166,234            2,706,587             2,377,625
                                                                --------------       --------------       ---------------

COSTS AND EXPENSES:
   Interest expense - pension notes (Note 6)                         6,036,275            5,775,285             5,521,051
   Amortization of pension notes issuance costs                        254,792              254,792               254,792
   Amortization of pension notes organization costs                     49,776               49,776                49,776
   Other expenses                                                      348,308              201,402               242,555
                                                                --------------       --------------       ---------------

                                                                     6,689,151            6,281,255             6,068,174
                                                                --------------       --------------       ---------------

NET LOSS                                                        $   (3,522,917)      $   (3,574,668)      $    (3,690,549)
                                                                ==============       ==============       ===============

ALLOCATION OF NET LOSS:
General Partner                                                 $      (70,458)      $      (71,493)      $       (73,811)
Assignor Limited Partner                                            (3,452,459)          (3,503,175)           (3,616,738)
                                                                --------------       --------------       ---------------

                                                                $   (3,522,917)      $   (3,574,668)      $    (3,690,549)
                                                                ==============       ==============       ===============

NET LOSS PER ASSIGNEE INTEREST                                  $          (81)      $          (82)      $           (85)
                                                                ==============       ==============       ===============



                                   See notes to financial statements.

</TABLE>

                                       9

<PAGE>


<TABLE>
<CAPTION>

              NHP RETIREMENT HOUSING PARTNERS I LIMITED PARTNERSHIP
              -----------------------------------------------------

                              A LIMITED PARTNERSHIP
                              ---------------------

                    STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
                    ----------------------------------------



                                                      General Partner-
                                                       Capital Realty             Assignee
                                                        Group Senior               Limited
                                                        Housing, Inc.             Partners                   Total
                                                      ----------------            --------                   -----
<S>                                                  <C>                     <C>                      <C>

Partners' equity (deficit) at January 1, 1995        $     (1,197,854)       $       149,054          $    (1,048,800)

Distributions                                                 (60,960)                     0                  (60,960)

Net Loss                                                      (73,811)            (3,616,738)              (3,690,549)
                                                     ----------------        ---------------          ---------------

Partners' deficit at December 31, 1995                     (1,332,625)            (3,467,684)              (4,800,309)

Distributions                                                 (61,134)                     0                  (61,134)

Net Loss                                                      (71,493)            (3,503,175)              (3,574,668)
                                                     ----------------        ---------------          ---------------

Partners' deficit at December 31, 1996                     (1,465,252)            (6,970,859)              (8,436,111)

Distributions                                                 (60,960)                     0                  (60,960)

Net Loss                                                      (70,458)            (3,452,459)              (3,522,917)
                                                     ----------------        ---------------          ---------------

Partners' deficit at December 31, 1997               $     (1,596,670)       $   (10,423,318)         $   (12,019,988)
                                                     ================        ===============          ===============






                                         See notes to financial statements.

</TABLE>

                                       10

<PAGE>

<TABLE>
<CAPTION>


              NHP RETIREMENT HOUSING PARTNERS I LIMITED PARTNERSHIP
              -----------------------------------------------------

                              A LIMITED PARTNERSHIP
                              ---------------------

                            STATEMENTS OF CASH FLOWS
                            ------------------------



                                                                              Year Ended December 31,
<S>                                                          <C>                  <C>                    <C>    <C>    <C>    <C>


                                                                    1997                1996                 1995
                                                                    ----                ----                 ----

Cash flows from operating activities:

   Rent collections                                          $    15,239,499       $   14,244,537       $   13,747,228
   Interest received                                                  91,072               79,876               83,325
   Other income                                                      215,238              167,233              182,319
   Management fees, dietary fees and other services               (1,429,906)          (1,351,527)          (1,326,188)
   Salary, related benefits and overhead reimbursements           (3,971,789)          (3,816,530)          (3,925,369)
   Other operating expenses paid                                  (5,595,097)          (5,202,737)          (5,114,939)
   Interest paid                                                  (2,987,040)          (2,995,574)          (2,987,040)
                                                             ---------------       --------------       --------------

   Net cash provided by operating activities                       1,561,977            1,125,278              659,336

Cash flows from investing activity:
   Capital expenditures                                           (1,022,465)            (525,567)            (712,919)
                                                             ---------------       --------------       --------------


   Net cash used in investing activity                            (1,022,465)            (525,567)            (712,919)

Cash flows from financing activity:
   Distributions                                                     (60,960)             (61,134)             (60,960)
                                                             ---------------       --------------       --------------

   Net cash used in financing activity                               (60,960)             (61,134)             (60,960)
                                                             ---------------       --------------       --------------

Net increase (decrease) in cash and cash equivalents                 478,552              538,577             (114,543)


Cash and cash equivalents at beginning of year                     4,017,181            3,478,604            3,593,147
                                                             ---------------       --------------       --------------

Cash and cash equivalents at end of year                     $     4,495,733       $    4,017,181       $    3,478,604
                                                             ===============       ==============       ==============



</TABLE>



                                       11

<PAGE>



<TABLE>
<CAPTION>



              NHP RETIREMENT HOUSING PARTNERS I LIMITED PARTNERSHIP
              -----------------------------------------------------

                              A LIMITED PARTNERSHIP
                              ---------------------

                            STATEMENTS OF CASH FLOWS
                            ------------------------

                                   (continued)


                                                                               Year Ended December 31,
                                                                    1997                1996                 1995
                                                                    ----                ----                 ----
<S>                                                         <C>                    <C>                  <C>

RECONCILIATION OF NET LOSS TO NET CASH
   PROVIDED BY OPERATING ACTIVITIES:

Net loss                                                     $    (3,522,917)      $   (3,574,668)      $   (3,690,549)
                                                             ---------------       --------------       --------------

Adjustments to reconcile net loss to net cash provided
   by operating activities:

   Depreciation                                                    1,703,233            1,615,089            1,525,513
   Amortization of pension notes organization costs                   49,776               49,776               49,776
   Amortization of pension notes issuance costs                      254,792              254,792              254,792
   Interest Payable                                                3,049,235            2,779,711            2,534,011

   Changes in operating assets and liabilities:
     Interest receivable                                               1,200                   65                  (23)
     Other assets and receivables                                     (6,397)             827,993               (7,461)
     Prepaid expenses                                                (15,543)              (5,959)              (5,759)
     Accounts payable                                                (15,650)            (254,782)              88,374
     Purchase installments                                                 0             (552,000)                   0
     Other liabilities                                                64,248              (14,739)             (89,338)
                                                             ---------------       --------------       --------------

Net cash provided by operating activities                    $     1,561,977       $    1,125,278       $      659,336
                                                             ===============       ==============       ==============






                                        See notes to financial statements.
</TABLE>


                                       12

<PAGE>



              NHP RETIREMENT HOUSING PARTNERS I LIMITED PARTNERSHIP
              -----------------------------------------------------

                              A LIMITED PARTNERSHIP
                              ---------------------

                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------

                           December 31, 1997 and 1996


1.   SUMMARY OF PARTNERSHIP ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
     -----------------------------------------------------------------------

     Organization
     ------------

          NHP   Retirement   Housing   Partners  I  Limited   Partnership   (the
     Partnership) is a limited partnership organized under the laws of the State
     of Delaware on March 10, 1986. The  Partnership  was formed for the purpose
     of raising  capital by issuing both  Pension  Notes  (Notes) to  tax-exempt
     investors  and  selling  additional  partnership  interests  in the form of
     Assignee Interests (Interests) to taxable individuals.  Interests represent
     assignments of the limited partnership  interests of the Partnership issued
     to the  Assignor  Limited  Partner,  NHP RHP-I  Assignor  Corporation.  The
     proceeds  from the sale of the Notes and  Interests  have been  invested in
     residential rental properties for retirement age occupants.

          A description  of the Projects now owned  directly or  indirectly  and
     operated by the Partnership is as follows:

          The Amberleigh.  This project is a 271 unit  retirement  living center
          located in Williamsville,  New York. The facility was approximately 97
          % and 98 % occupied at December 31, 1997 and 1996 , respectively.

          The Atrium of Carmichael. This project is a 153 unit retirement living
          center   located  in   Sacramento,   California.   This  facility  was
          approximately  99 % and 98 % occupied at December  31, 1997 and 1996 ,
          respectively.

          Crosswood Oaks.  This project is an 122 unit retirement  living center
          located in Sacramento,  California. This facility was approximately 91
          % and 86 % occupied at December 31, 1997 and 1996 , respectively.

          The Heatherwood.  This project is an 160 unit retirement living center
          located in Southfield,  Michigan. This facility was approximately 98 %
          and 81 % occupied at December 31, 1997 and 1996 , respectively.

          Veranda  Club.  This project is an 189 unit  retirement  living center
          located in Boca Raton,  Florida.  This facility was approximately 96 %
          and 98 % occupied at December 31, 1997 and 1996 , respectively.

     Significant Accounting Policies
     -------------------------------

          Offering costs,  issuance costs and organization  costs related to the
     sale of Notes are being  amortized  using the straight line method over the
     term of the Notes.  Accumulated  amortization at December 31, 1997 and 1996
     was $2,547,920 and $2,293,128 , respectively.  Selling  commissions related
     to the sale of Interests were recorded as a direct reduction to the capital
     account of the holders of Interests.  Accumulated  amortization at December
     31, 1997 and 1996 was 497,760 and $447,984 , respectively.  Direct costs of
     acquisition,  including  acquisition  fees and expenses paid to the General
     Partner, have  been  capitalized  as a part  of buildings and improvements.

                                       13

<PAGE>

              NHP RETIREMENT HOUSING PARTNERS I LIMITED PARTNERSHIP
              -----------------------------------------------------

                              A LIMITED PARTNERSHIP
                              ---------------------

                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------

                                   (Continued)



     Other fees and expenses of the  Partnership  are  recognized as expenses in
     the period the related services are performed.

          Interest expense on Notes is calculated  using the effective  interest
     method (see Note 6).  Operating  deficit and cash flow  guarantee  payments
     received from the sellers of The Heatherwood, The Atrium and Crosswood Oaks
     are recognized as a reduction of the basis of the respective properties.

          Buildings  and  improvements  are recorded at the lower of cost or net
     recoverable value (Note 10) and depreciated using the straight-line method,
     assuming a 30-year life and a 30% salvage  value.  Furniture  and equipment
     are recorded at cost and depreciated  using the straight line method over 5
     years.

          The cost of rental  property and their useful lives are  summarized as
     follows:


<TABLE>
<CAPTION>

                                      Useful Life              1997                     1996
                                      -----------              ----                     ----
<S>                                   <C>                 <C>                     <C>

Land                                                      $   6,820,468           $    6,318,028
                                                          =============           ==============

Land improvements                       30 years                 91,318                   75,809
Building and building improvement       30 years             55,239,208               55,179,219
Furniture and equipment                  5 years              2,795,633                2,351,105
                                                          -------------           --------------
                                                             58,126,159               57,606,133
Less-accumulated depreciation                               (15,456,154)             (13,752,920)
                                                          -------------           --------------
                                                          $  42,670,005           $   43,853,213
                                                          =============           ==============

</TABLE>

          Rental  income is recognized  when earned based on  residents'  signed
     rental  agreements.  Rental  payments  received in advance are deferred and
     recognized when earned.

          The  preparation of financial  statements in conformity with generally
     accepted  accounting  principles  requires management to make estimates and
     assumptions  that effect the amounts  reported in the financial  statements
     and accompanying notes. Actual results could differ from those estimates.

     New Accounting Pronouncements
     -----------------------------

          The Financial  Accounting  Standards  Board issued  Statement No. 130,
     Reporting Comprehensive Income effective for fiscal 1998. Statement No. 130
     requires  reporting and display of comprehensive  income and its components
     in the  financial  statements.  This new  Statement  will only  expand  the
     Partnership's disclosures with respect to this item.

2.   CASH AND CASH EQUIVALENTS
     -------------------------

          As of December 31, 1997 and 1996 , cash and cash equivalents consisted
     of demand  deposits and repurchase  agreements.  All repurchase  agreements
     have an  original  maturity  of three  months or less and,  therefore,  are
     considered to be cash equivalents.

          Cash and cash  equivalents  also  includes  $531,056  and  $504,879 of
     tenant  security  deposits  at December  31, 1997 and 1996 ,  respectively,
     which are designated  for the purpose of providing  refunds to tenants upon
     move-out.

                                       14

<PAGE>

              NHP RETIREMENT HOUSING PARTNERS I LIMITED PARTNERSHIP
              -----------------------------------------------------

                              A LIMITED PARTNERSHIP
                              ---------------------

                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------

                                   (Continued)

3.   TRANSACTIONS WITH THE GENERAL PARTNER AND ITS AFFILIATES
     --------------------------------------------------------

          Through  January 22, 1995, the sole general partner of the Partnership
     was NHP/RHGP-I Limited Partnership  (NHP/RHGP-I).  The sole limited partner
     of  the  Partnership  is  NHP  RHP-I  Assignor   Corporation,   a  Delaware
     corporation which is an affiliate of NHP/RHGP-I.

          On December  19,  1991,  the General  Partner  executed an amended and
     restated  purchase  agreement  with Capital Realty Group  Properties,  Inc.
     (CRG)  for  the  transfer  of  the  General   Partner's   interest  in  the
     Partnership,  subject to the approval of Assignee Holders. CRG's rights and
     obligations under the purchase  agreement were subsequently  assigned to an
     affiliate,  Capital Realty Group Senior Housing, Inc. (CRGSH). CRGSH is the
     management  agent under a five year  contract with an optio to renew for an
     additional  five years  under  certain  conditions.  Pursuant  to a Consent
     Solicitation dated October 25, 1994, Assignee Holders holding more than 64%
     of the equity interests in the Partnership  approved the election of CRGSH,
     as the replacement  general partner of the Partnership.  Effective  January
     23,  1995,  CRGSH  became  the sole  general  partner  of the  Partnership.
     Effective  February 1, 1995,  CRGSH assigned its contract  rights to manage
     the  Partnership's  properties to Capital Senior Living,  Inc.  ("CSL"),  a
     subsidiary  of Capital  Senior Living  Corporation.  CRGSH and CSL received
     $1,429,906,   $1,351,527,   and   $1,326,188   in  1997,   1996  and  1995,
     respectively,   for  management  fees,  dietary  services  fees  and  other
     operating  expense  reimbursements  related  to  services  provided  to the
     Properties and the Partnership.

          Personnel  working  at the  Property  sites and  certain  home  office
     personnel  who perform  services for the  Partnership  are  employees as of
     February 1, 1995 of CSL, an  affiliate  of CRGSH,  and prior to February 1,
     1995 were employees of CRGSH.  The Partnership  reimburses CRGSH or CSL for
     the  salaries  and related  benefits of such  personnel as reflected in the
     accompanying  financial  statements.  During  1997 , 1996  and  1995 , such
     reimbursements for salaries,  related benefits and overhead  reimbursements
     amounted to $3,971,789, $3,816,530, and $3,925,369 , respectively.

          During 1997 and 1996 , an  affiliate of the General  Partner,  Capital
     Senior Living Communities,  L.P., purchased  approximately 11,318 and 422 ,
     respectively,   of  Pension  Notes,  or   approximately   30.74  %  of  the
     Partnership's  outstanding  Pension  Notes at an average  price of $822 per
     Note. On November 3, 1997, Capital Senior Living Communities, L.P. sold its
     Pension Notes to Capital  Senior Living  Properties,  Inc., an affiliate of
     the General Partner and a subsidiary of Capital Senior Living  Corporation,
     at a price of $1,422 per Note. At December 31, 1997,  Capital Senior Living
     Properties,   Inc.  holds  13,128  Pension  Notes.  Capital  Senior  Living
     Corporation  is  subject  to  the  periodic  reporting  obligations  of the
     Securities and Exchange Commission.

          A 50%  partner  in  Retirement  Living  Communities,  L.P.  ("RLC") is
     chairman of the board of a bank where the Partnership holds the majority of
     its operating cash accounts

4.   ACQUISITION OF PROPERTY
     -----------------------

          On November 5, 1997,  the  Partnership  purchased  approximately  3.10
     acres of land adjacent to the Amberleigh property for $500,000 plus closing
     costs.  The land will be used in development  of a 60 unit assisted  living
     retirement facility.

                                       15

<PAGE>

              NHP RETIREMENT HOUSING PARTNERS I LIMITED PARTNERSHIP
              -----------------------------------------------------

                              A LIMITED PARTNERSHIP
                              ---------------------

                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------

                                   (Continued)

          In  connection  with the  purchase  of the  Heatherwood  in 1988,  the
     Partnership  has  recorded  receivables  of  $826,877  from the  seller and
     purchase  installments  and other  liabilities  due to the seller  totaling
     $816,583.  Amounts due to the Seller at December 31, 1995 include  $264,583
     in  property  management  fees  and the  remaining  $525,000  plus  accrued
     interest of $27,000 purchase installment payment due to the seller.  During
     1996, the General Partner  attempted to contact the Seller,  but was unable
     to do so. The  General  Partner  wrote off the  amounts due to and from the
     Seller and recorded a $10,294 adjustment to income during 1996.

5.   CASH DISTRIBUTION POLICIES
     --------------------------

          The   Partnership   Agreement   allows  for   quarterly   payments  of
     substantially all Cash Available For Distribution  Before Interest Payments
     (as defined in the Partnership  Agreement),  subject to the following:  (i)
     distributions  to  Assignee  Holders may be  restricted  or  suspended  for
     limited  periods  when  the  General  Partner  determines  in its  absolute
     discretion  that it is in the best interests of the  Partnership;  and (ii)
     all Assignee Holder distributions are subject to the payment of Partnership
     expenses and maintenance of working capital reserves.

          Cash Available For  Distribution  Before Interest  Payments  generally
     consists of cash received from the ordinary  operations of the  Partnership
     less operating expenses, without reduction for interest payments to Pension
     Note Holders, and working capital reserves. Distributions of Cash Available
     For Distribution  Before Interest  Payments are made in the following order
     of priority, to the extent available:

          First,  to the General Partner in an amount equal to 2 percent of Cash
          Available For Distribution Before Interest Payments for each quarterly
          cash distribution period (payable only if the Note Holders receive the
          distribution as described below).

          Second,  to the Pension  Note  Holders in an amount equal to an annual
          return of 7 percent on the adjusted  principal amount of their Pension
          Notes for each quarterly cash distribution period.

          Third, to the Assignee  Holders in an amount equal to an annual return
          of  7  percent  on  their  adjusted  capital  contributions  for  each
          quarterly cash distribution period.

          Fourth,  to the Pension  Note  Holders and  Assignee  Holders pro rata
          based on the relationship between the adjusted principal amount of the
          Pension Notes to the adjusted  capital  contributions  of the Assignee
          Holders  until the Note  Holders  have  received an amount equal to an
          aggregate annual return of 10 percent on the adjusted principal amount
          of their Pension Notes for each quarterly cash distribution period and
          the  Assignee  Holders  have  received an amount equal to an aggregate
          annual return of 10 percent on their  adjusted  capital  contributions
          for each quarterly cash distribution period.

          Fifth,  to the General  Partner as a  Partnership  Incentive Fee in an
          amount equal to 8 percent of Cash  Available For  Distribution  Before
          Interest Payments for the fiscal year. If the amount of Cash Available
          for  Distribution  Before  Interest  Payments  for any fiscal  year is
          insufficient to pay the General Partner its Partnership Incentive Fee,
          the fee shall not accrue and shall not be paid from Cash Available For
          Distribution  Before Interest  Payments  payable in subsequent  fiscal
          years.

                                       16

<PAGE>

              NHP RETIREMENT HOUSING PARTNERS I LIMITED PARTNERSHIP
              -----------------------------------------------------

                              A LIMITED PARTNERSHIP
                              ---------------------

                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------

                                   (Continued)

          Sixth,  the balance to the Note Holders and Assignee  Holders pro rata
          based on the relationship between the adjusted principal amount of the
          Pension Notes to the adjusted  capital  contributions  of the Assignee
          Holders.  However,  the amount of interest payable to the Note Holders
          shall not exceed a cumulative  noncompounded  return of 13 percent per
          annum on the adjusted  principal  amount of their  Pension  Notes.  No
          payments of Cash Available For Distribution  Before Interest  Payments
          shall reduce the principal balance of the Pension Notes.

          No  distributions  were paid to the Assignee  Interest  Holders during
     1997 , 1996 or 1995 . The General Partner anticipates that distributions to
     Assignee  Interest  Holders  will  be  suspended  until  operating  results
     significantly improve.

          Cash received from sales or refinancings of any Partnership  Property,
     after  retirement  of  applicable  mortgage  debt  and the  payment  of all
     expenses related to the transaction and any payments of debt service on the
     Pension Notes including  interest at a noncompounded  rate of 13% per annum
     less any prior payments (see Note 6), is to be distributed in the following
     manner:

          First, to the Assignee  Interest  Holders until their adjusted capital
          accounts are reduced to zero;

          Second,  to  the  Assignee  Interest  Holders  until  cumulative  cash
          distributions  received  equal a 13%  non-compounded  return  on their
          adjusted capital accounts, reduced by prior distributions;

          Third, to the General Partner in the form of a disposition fee; and

          Fourth,  85% to the Assignee  Interest  Holders and 15% to the General
          Partner.

          Taxable  net  income  or loss  from  operations  is  allocated  to the
     Interest  Holders as a class and to the General  Partner in  proportion  to
     available  cash  distributed   during  the  fiscal  year.  If  no  cash  is
     distributed  during the year,  net income or loss is  allocated  90% to the
     Assignee  Holders  as a  class  and  10%  to  the  General  Partner.  Other
     provisions exist if there is net income or loss other than from operations.
     As  discussed in Note 7, 2% for 1997,  1996 and 1995 of the Cash  Available
     For Distribution  Before Interest Payments was paid to the General Partner.
     Accordingly,  net loss  for each of the  three  years in the  period  ended
     December 31, 1997 was allocated in the same manner.

     The deficit balance in the Assignee  Limited Partner account reflects their
     percentage  interest in the Partnership's  cumulative net losses,  although
     there are no  restoration  requirements  for the Assignee  Limited  Partner
     interest upon termination of the Partnership

6.   PENSION NOTES
     -------------

          The Notes  bear  stated  simple  interest  at a rate  equal to 13% per
     annum.  Payment of up to 9% of stated  interest  was  subject  to  deferral
     through  December  31, 1988 and  payment of up to 6% of stated  interest is
     subject to deferral  thereafter.  Deferred interest does not bear interest.

                                       17

<PAGE>
             NHP RETIREMENT HOUSING PARTNERS I LIMITED PARTNERSHIP
              -----------------------------------------------------

                              A LIMITED PARTNERSHIP
                              ---------------------

                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------

                                   (Continued)

     Interest not deferred is payable  quarterly.  Using the effective  interest
     method, interest on principal and accrued interest of the Pension Notes has
     been  accrued  at  the  rate  of  approximately  9%  per  annum  compounded
     quarterly.  The approximate 9% effective interest rate was calculated using
     estimates  of the  amounts of interest  that will be deferred  and the time
     period  in which  such  deferred  amounts  will be paid and will  provide a
     liability for the full amount of deferred interest upon the maturity of the
     Pension  Notes.  If  interest  had been  provided  based on 13%  versus the
     effective rate of approximately 9%, an additional liabilit of approximately
     $4,113,073  would be  recorded at  December  31,  1997 and future  interest
     expense would be reduced by this amount.  The Partnership  made payments of
     $2,987,040, $2,995,574 and $2,987,040 in 1997, 1996 and 1995, respectively,
     to  Pension  Note  Holders.  The  Partnership's  obligation  to  repay  the
     principal  amount of the Notes,  which  mature on December  31,  2001,  and
     stated interest thereon,  is secured by a lien on the Partnership's  assets
     (see Note 9). The liability of the  Partnership  under the Pension Notes is
     limited to the assets of the Partnership.  The Pension Notes are subject to
     redemption  in whole or in part upon not less than 30 nor more than 60 days
     prior notice, at the election of the Partnership.

7.   DISTRIBUTIONS TO PARTNERS
     -------------------------

          During   1997,   1996  and  1995,   the   General   Partner   received
     distributions,  representing  2% of the  Cash  Available  For  Distribution
     Before Interest  Payments to the Pension Note Holders.  The Partnership did
     not make a distribution to the holders of Assignee  Interests  during 1997,
     1996 or 1995.

8.   INCOME TAXES
     ------------

          The Partnership is not taxed on its income.  The partners are taxed in
     their  individual   capacities  upon  their   distributive   share  of  the
     Partnership's  taxable  income and are allowed  the  benefits to be derived
     from possibly  off-setting their distributive share of the tax loss against
     taxable  income from other sources  subject to  application of passive loss
     rules and subject to "At Risk" basis limitation. The taxable income or loss
     differs from amounts  included in the  statement  of  operations  primarily
     because of different methods used in computing depreciation and interest on
     the Notes and  determining  start-up and  marketing  expenses for financial
     reporting and Federal income tax purposes.

          For Federal income tax purposes, the Partnership computes depreciation
     of buildings and improvements using the Modified  Accelerated Cost Recovery
     System (MACRS) and the Accelerated  Cost Recovery System (ACRS),  while for
     financial   statement   purposes,   depreciation   is  computed  using  the
     straight-line  method.  Interest on Pension Notes is computed in accordance
     with Internal  Revenue Service  regulations for original issue discount for
     Federal  income  tax  purposes,  while for  financial  statement  purposes,
     interest on Pension Notes is computed using the effective  interest method.
     Start-up and  marketing  costs  incurred  prior to initial  occupancy  were
     capitalized  and  amortized  over  sixty  months  for  Federal  income  tax
     purposes,  while for financial statement purposes,  only those start-up and
     marketing  costs that are expected to benefit future  operations  have been
     capitalized and amortized over sixty months.


                                       18



<PAGE>



              NHP RETIREMENT HOUSING PARTNERS I LIMITED PARTNERSHIP
              -----------------------------------------------------

                              A LIMITED PARTNERSHIP
                              ---------------------

                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------

                                   (Continued)

          A reconciliation between financial statement net loss and net loss for
     tax purposes follows:

<TABLE>
<CAPTION>

                                                                   Years Ended December 31,
                                                     -----------------------------------------------------

<S>                                                   <C>                 <C>                 <C>

                                                            1997              1996                 1995
                                                            ----              ----                 ----

Net loss per financial statements                     $  3,522,917        $  3,574,668        $  3,690,549

Temporary differences in determining losses for
      Federal income tax purposes:

      Depreciation                                         617,872             667,874             671,332
      Amortization of start-up and marketing costs         (48,116)            (48,116)            (48,116)
      Interest expense - pension notes                  (3,136,298)         (2,903,363)         (2,673,201)
      Miscellaneous                                          5,966              37,148             (18,001)
                                                      ------------        ------------        ------------

Loss per tax return                                   $    962,341        $  1,328,211        $  1,622,563
                                                      ============        ============        ============

</TABLE>


     The basis of building and  improvements,  net of accumulated  depreciation,
     for Federal income tax purposes was $35,166,014 and $36,967,094 at December
     31, 1997 and 1996, respectively.

9.   FUTURE OPERATIONS AND CASH FLOWS
     --------------------------------

          Although cash flow from  operations  improved in 1997 , cash generated
     from  operations over the past several years prior to 1994 was not adequate
     to meet  the  Partnership's  minimum  interest  payment  requirements.  The
     shortfall was funded by  Partnership's  cash  reserves,  which  principally
     resulted  from funds  remaining  from the initial  offering of  Partnership
     Assignee  Interests  and  Pension  Notes,  after  the  acquisition  of  the
     Partnership's  Properties.  Given  the  level  of  the  Partnership's  cash
     reserves at December  31, 1997 , if the  Partnership  is unable to increase
     cash  generated  from  operations  over  time,  cash  reserves  may  not be
     sufficient to satisfy future obligations of the Partnership.

          If interest  payments continue to be deferred at the current rate (see
     Note  6),  the  total  accrual  for  unpaid  interest  and  principal  will
     approximate  $81 million at December  31, 2001,  the  maturity  date of the
     Pension  Notes,  which  is  far  in  excess  of  projected  cash  reserves.
     Accordingly,  there will need to be very  significant  improvements in cash
     flows from operations  and/or  increases in the disposition and refinancing
     values of the  Properties  to fund both the accrued  interest  and the face
     value of the Pension Notes upon their maturity.

          Management  plans to continue to manage the  Properties  prudently  to
     achieve positive cash flows from operations after interest payments.

                                       19

<PAGE>

              NHP RETIREMENT HOUSING PARTNERS I LIMITED PARTNERSHIP
              -----------------------------------------------------

                              A LIMITED PARTNERSHIP
                              ---------------------

                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------

                                   (Continued)

10.  VALUATION OF RENTAL PROPERTY
     ----------------------------

          In  accordance  with  FASB  Statement  No  121,  "Accounting  for  the
     Impairment of Long-Lived  Assets and for  Long-Lived  Assets to be Disposed
     of", the Partnership records impairment losses on long-lived assets used in
     operations when events and circumstances  indicate that the assets might be
     impaired and the undiscounted cash flows estimated to be generated by those
     assets  are less  than the  carrying  amounts  of those  assets.  If such a
     shortfall  exists,  a write-down  would be warranted based on the estimated
     shortfall  of  discounted  cash  flows.   The  Partnership   performs  such
     evaluations on an ongoing basis by comparing each property's net book value
     to the total  estimated  future  operating cash flow for years through 2001
     (the year the Pension Notes mature) plus cash projected to be received upon
     an assumed sale of the properties on December 31, 2001. Sales proceeds, net
     of  an  estimated  3%  cost  of  disposal,   are  estimated   using  a  10%
     capitalization  rate of the net operating incom projected for each property
     for the year 2001. During July 1997, the Partnership obtained appraisals of
     the current  market value of its  properties.  As of December 31, 1997, the
     July 1997 appraised values exceeded the partnership's net book value of its
     properties.  The  Partnership,   however,  does  not  intend  to  sell  any
     Properties in the near future,  but rather  intends to continue to hold and
     operate them as rental  properties.  The Partnership does not believe there
     are any  indicators  that would require an adjustment to the carrying value
     of the properties or their  remaining  useful lives as of December 31, 1997
     or 1996.

11.  FAIR VALUE OF FINANCIAL INSTRUMENTS:
     -----------------------------------

          The  carrying  amounts and fair  values of  financial  instruments  at
     December 31, 1997 and 1996 are as follows:


<TABLE>
<CAPTION>

                                                    1997                                    1996
                                          ------------------------                ------------------------
<S>                                  <C>                <C>                 <C>                 <C>

                                         Carrying             Fair              Carrying             Fair
                                          Amount             Value               Amount             Value
                                         --------            -----              --------            -----

Cash and cash equivalents            $  4,495,733        $  4,495,733        $  4,017,181       $  4,017,181
Pension Notes                          42,672,000          60,714,122          42,672,000         27,753,050

</TABLE>

     The following  methods and assumptions  were used by the General Partner in
     estimating its fair value disclosures for financial instruments:

          Cash  and cash  equivalents:  The  carrying  amounts  reported  in the
          balance sheet for cash and cash equivalents approximate fair value.

          Pension  Notes:  The  fair  values  of  Pension  Notes  are  based  on
          discounted cash flows at December 31, 1997 and quoted market prices at
          December 31, 1996.


                                       20

<PAGE>




Item 9.  Changes  in  and  Disagreements  with  Accountants  on  Accounting  and
         -----------------------------------------------------------------------
         Financial Disclosure
         --------------------

               There have been no changes in or  disagreements  with accountants
          that are required to be reported herein.


                                    Part III
                                    --------

Item 10. Directors and Executive Officers of the Registrant
         --------------------------------------------------

          (a). The   Partnership  has  no  directors,   executive   officers  or
               significant employees of its own.

          (b). On January 23, 1995, CRGSH became the sole general partner of the
               Partnership.

               CRGSH is a privately  owned  corporation  initially  organized on
          December  1,  1988.  Its  principal  business  activity  has  been the
          ownership and  management of real property for its own account and for
          the account of various limited partnerships of which it is the general
          partner.  CRGSH is a wholly owned  subsidiary of Capital  Realty Group
          Corporation,  a Texas  corporation  ("Capital"),  with  its  corporate
          headquarters in Dallas, Texas. Capital is owned 50% by James A. Stroud
          (through a trust) and 50% by Jeffrey L. Beck.

               The Partnership  properties  during 1994 and through  February 1,
          1995, were managed by CRGSH.  On February 1, 1995,  CRGSH assigned its
          contract  rights to manage  the  Partnership's  properties  to Capital
          Senior Living, a subsidiary of Capital Senior Living Corporation.

               The following are the directors and executive officers of Capital
          Realty  Group  Senior  Housing,  Inc.,  the  general  partner  of  the
          Partnership.

              Name                     Position
              ----                     --------
              James A. Stroud          Chief Operating Officer, Secretary and
                                         Director
              Jeffrey L. Beck          Chief Executive Officer and Director
              Keith N. Johannessen     President
              David Beathard           Vice President
              Rob L. Goodpaster        Vice President, National Director of
                                         Marketing
              David Brickman           Vice President
              Robert F. Hollister      Controller - Property


                    James A. Stroud, age 47. Mr. Stroud has served as a director
               and Chief  Operating  Officer of CSL and its  predecessors  since
               January 1986. He is currently  Co-Chairman of the Board and Chief
               Operating  Officer  of Capital  Senior  Living  Corporation.  Mr.
               Stroud  also  serves on the  boards of  various  educational  and
               charitable organizations,  and in varying capacities with several
               trade  organizations,  including  as a  member  of the  Founder's
               Council and Board of Directors of the Assisted Living  Federation
               of America, and as Housing Commissioner,  President-Elect, and as
               a member of the Board of Directors  of the  National  Association
               For  Senior  Living  Industries.  Mr.  Stroud  also  serves as an
               Advisory Group member to the National Investment Conference.  Mr.
               Stroud was a Founder of the Texas Assisted Living Association and
               serves as a member  of its Board of  Directors.  Mr.  Stroud  has
               earned a Masters  in Law,  is a licensed  attorney  and is also a
               Certified Public Accountant.

                    Jeffrey L. Beck,  age 53 . Mr. Beck has served as a director
               and Chief  Executive  Officer of CSL and its  predecessors  since
               January 1986. He is currently  Co-Chairman of the Board and Chief
               Executive Officer of Capital Senior Living Corporation.  Mr. Beck
               also serves on the boards of various  educational,  religious and

                                       21

<PAGE>

               charitable  organizations and in varying  capacities with several
               trade  associations.  Mr.  Beck  served as Vice  Chairman  of the
               American  Seniors Housing  Association  from 1992 to 1994, and as
               Chairman from 1994 to 1996, and remains a member of its Executive
               Board,  and is a council member of the Urban Land Institute.  Mr.
               Beck is Chairman of the Board of  Directors  of United Texas Bank
               of Dallas and is Chairman and President of Beck Properties Trophy
               Club.

                    Keith N. Johannessen, age 41 . Mr. Johannessen has served as
               President  of CSL and its  predecessors  since  March  1994,  and
               previously served as Executive  Vice-President since May 1993. He
               is also President of Capital Senior Living Corporation. From 1992
               to 1993, Mr.  Johannessen  served as Senior Manager in the health
               care  practice  of  Ernst  &  Young.   From  1987  to  1992,  Mr.
               Johannessen  was Executive  Vice  President of Oxford  Retirement
               Services,  Inc.  Mr.  Johannessen  has served on the State of the
               Industry and Model Assisted Living Regulations  Committees of the
               American Seniors Housing  Association.  Mr.  Johannessen has been
               active in operational aspects of senior housing for 19 years.

                    David W. Beathard,  age 50 . Mr. Beathard has served as Vice
               President - Operations of CSL and its  predecessors  since August
               1996. He is also Vice  President - Operations  of Capital  Senior
               Living  Corporation.  From 1992 to 1996,  Mr.  Beathard owned and
               operated a consulting firm which provided operational,  marketing
               and feasibility  consulting  regarding senior housing facilities.
               Mr. Beathard serves as a Designated Alternate member of the Board
               of  Directors  of the  Texas  Assisted  Living  Association.  Mr.
               Beathard has been active in the operational, sales and marketing,
               and  construction  oversight  aspects  of senior  housing  for 23
               years.

                    Rob L.  Goodpaster,  age 45 . Mr.  Goodpaster  has served as
               Vice President - National  Marketing of CSL and its  predecessors
               since  December  1992.  He is  also  Vice  President  -  National
               Marketing  Director of Capital  Senior Living  Corporation.  From
               1990 to 1992, Mr.  Goodpaster was National Director for Marketing
               for  Autumn  America,  an owner and  operator  of senior  housing
               facilities.  Mr. Goodpaster is a member of the Board of Directors
               of the National  Association  For Senior Living  Industries.  Mr.
               Goodpaster has been active in the  operational,  development  and
               marketing aspects of senior housing for 21 years.

                    David  Brickman,  age 39 . Mr.  Brickman  has served as Vice
               President and General Counsel of CSL and its  predecessors  since
               July  1992.  He is also Vice  President  and  General  Counsel of
               Capital  Senior  Living  Corporation.  From  1989  to  1992,  Mr.
               Brickman served as in-house counsel with LifeCo Travel Management
               Company,  a corporation  which provided  travel  services to U.S.
               corporations.  Mr.  Brickman  has  earned a Masters  of  Business
               Administration  and  a  Masters  in  Health  Administration.  Mr.
               Brickman has either  practiced law or performed  in-house counsel
               functions for 11 years.

                    Robert F.  Hollister,  age 42 . Mr.  Hollister,  a Certified
               Public Accountant,  has served as Property Controller for CSL and
               its predecessors since April 1992. He is also Property Controller
               for Capital  Senior Living  Corporation.  From 1985 to 1992,  Mr.
               Hollister was Chief Financial Officer and Controller of Kavanaugh
               Securities,  Inc.,  a NASD  broker  dealer.  Mr.  Hollister  is a
               Certified  Financial  Planner.  Mr.  Hollister is a member of the
               American  Institute of Certified Public Accountants and is also a
               member of the Texas Society of Certified Public Accountants.

                    The  executive  officers of CRGSH are required to spend only
               such time on the Partnership's  affairs as is deemed necessary in
               the  sole  judgment  of  CRGSH.  A  significant  amount  of these
               officers'  time is expected to be spent on matters  unrelated  to
               the Partnership.

                    (c).   Section   16(a)   Beneficial    Ownership   Reporting
               Compliance.  Based  solely  upon a review of Forms 3, 4 and 5 and
               any amendments  thereto furnished to the Partnership  pursuant to
               Rule 16a-3(c) of the  Securities  and Exchange  Commission  (SEC)
               rules, the Partnership is not aware of any failure of any officer
               or director of CRGSH or beneficial owner of more than ten percent
               of the  Assignee  Interests to file timely with the SEC any Forms
               3, 4 or 5 relating to the Partnership for 1995.

                                       22

<PAGE>

Item 11.  Executive Compensation
          ----------------------

               NHP  Retirement  Housing  Partners I Limited  Partnership  has no
          officers or directors.  However,  various fees and  reimbursements are
          paid to the General  Partner or its  affiliates.  The  following  is a
          summary  of such fees paid or accrued  during the year ended  December
          31, 1997 : Paid or payable from operating cash flow:


               Cash  distributions  of $60,960  to the  General  Partner,  which
          represents  2% of Cash  Available  for  Distribution  Before  Interest
          Payments to the Note Holders.

               Management  fees,  dietary  service  fees,  and  other  operating
          expense  reimbursements  of $1,429,906 and salaries,  related benefits
          and overhead  reimbursements  of $3,971,789,  were paid to the General
          Partner and CSL, an affiliate of the General Partner

          See Item 8. Financial Statements and Supplementary Data.

Item 12.  Security Ownership of Certain Beneficial Owners and Management
          --------------------------------------------------------------

               No  person  is known by the  Partnership  to own more  than 5% of
          Assignee Interests.

               As of March 1, 1998,  an  affiliate of the General  Partner,  has
          purchased  approximately  13,478 Pension Notes, or approximately 31.6%
          of the Partnership's outstanding Pension Notes.

Item 13.  Certain Relationships and Related Transactions.
          ----------------------------------------------

               Except  as  described  in  Items  8  (Note  3  in  the  Financial
          Statements),  10, and 11 the Partnership had no other  transactions or
          business relationships with NHP, CRGSH, or its affiliates.


                                       23

<PAGE>


                                     PART IV
                                     -------

Item 14.  Exhibits, Financial Statement Schedules and Reports on Form 8-K
          ---------------------------------------------------------------

         (a)   Documents filed as part of this report:

               1.   Financial Statements
                    --------------------

                    The financial statements, notes and reports listed below are
                    included herein:

                                                                            Page
                                                                            ----

               Report of Ernst & Young LLP, Independent Auditors              7

               Statements of Financial Position,
                December 31, 1997  and 1996                                   8

               Statements of Operations for the Years
                Ended December 31, 1997 , 1996  and 1995                      9

               Statements of Partners' Equity (Deficit)
                for the Years Ended December 31, 1997, 1996
                and 1995                                                     10

               Statements of Cash Flows for the
                Years Ended December 31, 1997 , 1996  and 1995               11

               Notes to Financial Statements                                 13


               2.   Financial Statement Schedules
                    -----------------------------

                    All schedules have been omitted as the required  information
                    is  inapplicable  or the  information  is  presented  in the
                    financial statements or related notes.

               3.   Exhibits
                    --------

                    None.

                    (b)  Reports on Form 8-K

                         No reports on Form  8-K  were  filed  during  the  last
                         quarter of fiscal 1997.

                                       24


<PAGE>

                                   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.

     NHP RETIREMENT HOUSING PARTNERS I LIMITED PARTNERSHIP

     By:  Capital Realty Group Senior Housing, Inc.
          General Partner




     By:  /a/ James A. Stroud
          -----------------------------------------
          James A. Stroud
          Chief Operating Officer and Director
          (Chief financial, and accounting officer)


     Pursuant to the  requirements of the Securities  Exchange Act of 1934, this
Report  has  been  signed  below  by the  following  persons  on  behalf  of the
Registrant and in capacities and on the dates indicated.





By:  /s/ James A. Stroud
     -----------------------------------------------
     James A. Stroud
     Chief Operating Officer and Director of the General Partner
     (Chief financial, and accounting officer)





By:  /s/ Jeffrey L. Beck
     -----------------------------------------------
     Jeffrey L. Beck
     Chief Executive Officer and Director of the General Partner



Date:     March 30, 1998


                                       25

<PAGE>


March ____, 1997




Securities and Exchange Commission
450 5th Street N.W.
Judiciary Plaza
Washington, D.C.  20549

Re:      NHP Retirement Housing Partners I Limited Partnership
         SEC File Number:  0-16815

Madam or Sir:

Enclosed  please  find Form 10-K for the year ended  December  31,  1997 for the
above referenced partnership.

Please acknowledge receipt of this filing by stamping and returning the enclosed
copy of this letter in the self-addressed,  stamped envelope provided.  If there
are any questions regarding this filing, please contact the undersigned.

Very truly yours,

NHP RETIREMENT HOUSING PARTNERS I LIMITED PARTNERSHIP


/s/ Scott Shamblin
---------------------------
Scott Shamblin
Investor Relations Director


Enclosure


                                       26