UNITED STATES 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 year ended December 31, 1999

                                       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: 0-16645

                              RANCON INCOME FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP
                   ------------------------------------------
             (Exact name of registrant as specified in its charter)

                      California                                33-0157561
           --------------------------------                 --------------
             (State or other jurisdiction                   (I.R.S. Employer
           of incorporation or organization)               Identification No.)

         400 South El Camino Real, Suite 1100                  94402-1708
                                                             ------------
                 San Mateo, California                         (Zip Code)
                 ---------------------
       (Address of principal executive offices)

       Partnership's telephone number, including area code (650) 343-9300
        Securities registered pursuant to Section 12(b) of the Act: None
               Securities registered pursuant to Section 12(g) of
the Act:

                      Units of Limited Partnership Interest
                                (Title of class)

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

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

                                    Yes X   No
                                       ---    ---
No market for the Limited  Partnership Units exists and therefore a market value
for such Units cannot be determined.

                 DOCUMENTS INCORPORATED BY REFERENCE: None.



                                  Page 1 of 26

<PAGE>

                                     Part I

Item 1.           Business

Rancon Income Fund I, a California Limited Partnership,  ("the Partnership") was
organized in accordance  with the provisions of the California  Revised  Limited
Partnership  Act for the  purpose  of  acquiring,  operating  and  disposing  of
existing income  producing  commercial,  industrial and residential  real estate
properties.  The general  partner of the Partnership is Rancon Income Partners I
("General Partner"). The Partnership was organized in 1986, completed its public
offering  of  partnership  units  ("Units")  in April 1989 and has 14,555  Units
issued and outstanding. The Partnership has no employees.

At December 31, 1999, the Partnership owned two properties, which are more fully
described in Item 2.

Competition Within the Market
-----------------------------
Management  believes that  characteristics  influencing the competitiveness of a
real  estate  project  are  the  geographic   location  of  the  property,   the
professionalism  of the property  manager and the  maintenance and appearance of
the  property,  in  addition  to  external  factors  such  as  general  economic
circumstances,  trends,  and the existence of new,  competing  properties in the
vicinity.   Additional  competitive  factors  with  respect  to  commercial  and
industrial  properties  are the ease of access to the property,  the adequacy of
related facilities, such as parking, and the ability to provide rent concessions
and additional tenant  improvements  commensurate with local market  conditions.
Such  competition may lead to rent  concessions  that could adversely affect the
Partnership's  cash  flow.   Although   management  believes  the  Partnership's
properties are competitive with comparable properties as to those factors within
the  Partnership's  control,  over-building  and other  external  factors  could
adversely  affect the ability of the  Partnership to attract and retain tenants.
The  marketability of the properties may also be affected (either  positively or
negatively)  by these factors as well as by changes in general or local economic
conditions,  including  prevailing  interest  rates.  Depending  on  market  and
economic conditions,  the Partnership may be required to retain ownership of its
properties for periods longer than  anticipated at  acquisition,  or may need to
sell earlier than anticipated,  at a time or under terms and conditions that are
less  advantageous  than  would be the case if  unfavorable  economic  or market
conditions did not exist.

Working Capital
---------------
The  Partnership's  practice is to maintain  cash  reserves for normal  repairs,
replacements,  working capital and other contingencies. The Partnership knows of
no statistical information which allows comparison of its cash reserves to those
of its competitors.

Item 2.           Properties

The Partnership currently owns the properties listed below:
<TABLE>
<CAPTION>
<S>         <C>                         <C>                        <C>           <C>                <C>

                                                                                                    Encumbrances at
            Name                        Location                   Type           Size              December 31, 1999
            ----                        --------                   ----           ----              -----------------
Wakefield Industrial             Temecula, California           Light            44,200 sq. ft.           None
  Center                                                          Industrial

Bristol Medical Center           Santa Ana, California          Office           52,311 sq. ft.           None
</TABLE>

                                  Page 2 of 26
<PAGE>

Wakefield Industrial Center
---------------------------
In April 1987, the  Partnership  acquired the Wakefield  facility,  at a cost of
approximately $1,899,000 plus acquisition fees of $87,000. Wakefield consists of
two buildings on  approximately  3.99 acres of land.  The property is located in
Temecula,  California,  on the west side of Jefferson Avenue,  approximately 500
feet west of the  Interstate  15  highway  in an area that is zoned for  "medium
manufacturing".

Both buildings are composed of concrete  tilt-up  construction  and have central
heating and air conditioning  systems in the office areas. One building contains
approximately 25,000 square feet of leasable space, of which approximately 5,900
square feet is office space, with the balance used for manufacturing and related
purposes.  The other  building  contains  approximately  19,200  square  feet of
leasable space of which  approximately  4,800 square feet is office space,  with
the balance used for warehousing and related  purposes.  The Wakefield  facility
provides  uncovered  parking for  approximately  54 cars and includes  partially
improved land which is used for car parking and truck access.

According  to research  conducted by the  Partnership's  property  manager,  the
market has  approximately  7,549,000 square feet of existing  industrial  space,
with an  overall  vacancy  rate of 8.4%.  The area  offers a wide  range of high
quality,  attractive  industrial  projects ranging from  multi-tenant  incubator
space to large,  single-user  distribution  facilities located in master-planned
business parks.  There is approximately  325,000 square feet of multi-tenant and
free standing industrial space that competes directly with Wakefield  Industrial
Center.  The asking rent for industrial  space in this area ranges between $4.80
industrial  gross to $6.00 per foot NNN  (tenant  pays all  operating  expenses,
including taxes, insurance, and capital).

The occupancy  level at December 31, 1999,  1998, 1997 and 1996 and November 30,
1995,  expressed as a percentage of the total net rentable  square feet, and the
average  annual  effective  rent per square foot for the last five years were as
follows:
                   Occupancy Level                 Average Annual Effective
                     Percentage                      Rent Per Square Foot
                   ---------------                 ------------------------
       1999             100%                                $  4.40
       1998             100%                                $  4.31
       1997             100%                                $  4.14
       1996             100%                                $  4.04
       1995             100%                                $  3.96

One  tenant  occupies  100%  of the  net  rentable  square  footage  of the  two
buildings.  The  principal  terms of the  lease and the  nature of the  tenant's
business are as follows:

                                      Wakefield Engineering, Inc.
                                      ---------------------------
      Nature of Business:                 Manufacturer
      Lease Term:                         10 years
      Expiration Date:                    November 30, 2004
      Square Feet:                        44,200
      (% of rentable total):              100%
      Annual Rent:                        $194,000
      Rent Increase:                      Annual - CPI
      Renewal Options:                    None

In 1996,  management  determined that the carrying value of Wakefield Industrial
Center was in excess of the estimated fair value.  As a result,  the Partnership
recorded a provision for  impairment of its

                                  Page 3 of 26
<PAGE>

investment  in Wakefield  IndustrialCenter  of $175,000.  No such  provision was
recorded in 1997, 1998 or 1999.

Bristol Medical Center
----------------------
In October 1987, the Partnership entered into an agreement with Rancon Financial
Corporation  ("RFC") to acquire  Bristol  Medical Center for a purchase price of
$5,105,000,  plus all costs  incurred by RFC in ownership and  management of the
property from December 1986. The purchase price was paid in installments through
May 1988, for a total cost of $5,370,000.  Bristol  Medical Center is located in
Santa Ana,  California,  on the west side of Bristol Street,  approximately  1.5
miles from a major  east-west  freeway  and  approximately  2 miles from a major
north-south  freeway.  The John Wayne Orange County airport is located 2.5 miles
northwest of the property.

Bristol  Medical Center  consists of two 2-story  medical  office  buildings and
related parking spaces on  approximately  3.42 acres.  The two office  buildings
contain an aggregate of approximately  52,311 net rentable square feet of office
space.  Each of the  buildings  has one elevator and three  stairways,  and each
suite is served by its own roof-mounted  heating and air conditioning  unit. The
property contains uncovered parking for approximately 299 cars.

According  to research  conducted by the  Partnership's  property  manager,  the
direct market area  consists of five medical  buildings  totaling  approximately
189,847  rentable  square feet, all of which are older Class "B" Buildings.  The
sub-market,  consisting  of smaller  dental/medical  offices and retail sites is
being  condemned or purchased by the City of Santa Ana to widen Bristol  Street.
The  renovation  project which is underway by the City of Santa Ana will include
new retail  buildings  and a landscaped  median,  which should  enhance the area
considerably.  Net  absorption  in this area has been on a downward  trend since
1992 when changes in the health care industry began. Currently, total vacancy in
this market is  approximately  8.6%.  The annual rental rates for the area range
from  $16.08 per square foot to $17.40 per square foot  modified  gross  (tenant
pays interior janitorial costs).

The occupancy  level at December 31, 1999,  1998 and 1997, 1996 and November 30,
1995,  expressed as a percentage of the total net rentable  square feet, and the
average  annual  effective  rent per square foot for the last five years were as
follows:

                      Occupancy Level                 Average Annual Effective
                        Percentage                      Rent Per Square Foot
                      ---------------                 ------------------------
       1999                 65%                              $  18.00
       1998                 60%                              $  18.40
       1997                 83%                              $  19.00
       1996                 85%                              $  18.89
       1995                 91%                              $  18.76

The current  annual rental rates for this  property  range from $10.32 to $27.36
per square foot.

The current  annual rental rates at Bristol  Medical  Center are higher than the
market  average as the  leases in effect are old and were  signed at a time when
such rates were market rates.  The occupancy at Bristol Medical Center increased
from 60% at  December  31,  1998 to 65% at  December  31, 1999 due to leasing of
2,043 square feet of previously  vacant space.  Leasing space at Bristol Medical
Center is  difficult  as changes in the  healthcare  industry  have  reduced the
number  of  independent   physicians   opening  second  offices.   Additionally,
physicians appear to be leasing space at retail  locations,  which tend to offer
more exposure than the traditional medical buildings.

                                  Page 4 of 26
<PAGE>

There is one tenant  that  occupies  more than ten  percent of the net  rentable
square footage of the Bristol Medical  Center.  The principal terms of the lease
and the nature of the tenant's business are as follows:

                                        St. Jude
                                        Heritage Health
                                        ---------------
      Nature of Business:               Medical clinic
      Lease Term:                       5 year
      Expiration Date:                  August 31, 2003
      Square Feet:                      11,283
      (% of rentable total):            22%
      Annual Rent:                      $198,300
      Rent Increase:                    Annual - CPI
      Renewal Options:                  None

In 1998 and 1996,  the  Partnership  recorded  provisions  for impairment of its
investment   in   Bristol   Medical   Center   of   $451,000   and   $1,470,000,
respectively due  to an increase in vacancy,  the  difficulty in leasing  vacant
space and projected cash flows. There is no such provision in 1999

Aztec Village Shopping Center
-----------------------------
On May 12, 1999, the Partnership sold Aztec Village Shopping Center ("Aztec") to
an unaffiliated  entity for $1,000,000.  The Partnership had originally acquired
Aztec, located in San Diego, CA in May 1988 for $3,350,000,  plus closing costs.
The Partnership  realized a $254,000 gain on the sale, which is reflected in the
accompanying  statement of operations  for the year ended December 31, 1999. The
net proceeds totaled $937,000, of which $742,305 was distributed to the partners
and the remainder was added to the Partnership's cash reserves.


Item 3.           Legal Proceedings

                  None.

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

                  None.




                                  Page 5 of 26
<PAGE>

                                     Part II

Item 5.           Market for Partnership's Common Equity and Related Stockholder
                  Matters

Market Information
------------------
There is no established trading market for the Units.

Holders
-------
As of December 31, 1999, a total of 1,320 persons (Limited Partners) held Units.

Distributions
-------------
Distributions  are paid from either Cash From  Operations  or Cash From Sales or
Financing.

Cash  From  Operations  is  defined  in the  Partnership  Agreement  as all cash
receipts  from  operations  in the ordinary  course of business  (except for the
sale,  refinancing,  exchange  or  other  disposition  of real  property  in the
ordinary course of business) after  deducting  payments for operating  expenses.
Distributions  of Cash From Operations are generally  allocated as follows:  (i)
first to the Limited  Partners until they receive a noncumulative  6% return per
annum on their unreturned capital  contributions and (ii) the remainder,  if any
in a given year,  shall be divided in the ratio of 90% to the  Limited  Partners
and 10% to the General Partner.

Distributions  equal to the amounts  otherwise  allocable to the General Partner
but reallocated to the Limited  Partners  pursuant to (i) above shall be paid to
the  General  Partner  on the next  occasion  on which Cash From  Operations  is
available for  distributions  to Limited  Partners in an amount in excess of the
amount  required to provide the Limited  Partners  with a 6% per annum return on
their unreturned capital  contributions,  in which case the excess shall be paid
to the  General  Partner  in an amount  up to the  aggregate  amount  previously
re-allocated  pursuant to (i) above and not  subsequently  repaid in  accordance
with the provisions of this paragraph.

Cash From Sales or Financing is defined in the Partnership  Agreement as the net
cash realized by the  Partnership  from the sale,  disposition or refinancing of
any property  after  retirement  of  applicable  mortgage  debt and all expenses
related to the  transaction,  together  with interest on any notes taken back by
the  Partnership  upon the sale of a property.  All  distributions  of Cash From
Sales or Financing  are  allocated  generally as follows;  (i) first,  2% to the
General Partner and 98% to the Limited  Partners until the Limited Partners have
received an amount equal to their capital contributions;  (ii) second, 2% to the
General Partner and 98% to the Limited  Partners until the Limited Partners have
received  a 6% return on their  unreturned  capital  contributions  (less  prior
distributions of Cash From Operations);  (iii) third, to the General Partner the
amount of  subordinated  real estate  commissions  payable  per the  Partnership
Agreement;  (iv)  fourth,  2% to the  General  Partner  and  98% to the  Limited
Partners  until the Limited  Partners  have  received an additional 4% return on
their unreturned capital  contributions  (less prior  distributions of Cash From
Operations);  (v)  fifth,  2% to the  General  Partner  and  98% to the  Limited
Partners until the Limited  Partners who purchased  their Units prior to June 1,
1988,  receive  an  additional  return  (depending  on the  date on  which  they
purchased  the  Units)  on their  unreturned  capital  of  either  8%,  5% or 2%
(calculated  through the first  anniversary  date of the purchase of the Units);
(vi) sixth,  98% to the General  Partner:  2% to the Limited  Partners until the
General  Partner has received an amount equal to 15% of all prior  distributions
made to the Limited  Partners and the General  Partner  pursuant to subparagraph
(iv) and

                                  Page 6 of 26

<PAGE>
(v) (less prior distributions to the General Partner under subparagraph (iv) and
(v));  and (vii)  seventh,  85% to the Limited  Partners  and 15% to the General
Partner. A more explicit statement of the distribution  policies is set forth in
the Partnership Agreement.

The following distributions of Cash From Operations were made by the Partnership
during the three most recent fiscal years.

                                                Amount           Amount
        Date of        Amount Distributed     Distributed    Distributed to
     Distribution      to Limited Partners     Per Unit      General Partner
     ------------      -------------------     --------      ---------------
      08/30/99          $     145,550         $  10.00             --
      05/28/99          $     727,750         $  50.00       $ 14,555
       02/25/99         $      27,656         $   1.90             --
       09/03/98         $      27,656         $   1.90             --
       02/26/98         $      27,656         $   1.90             --
       08/29/97         $      28,000         $   1.92             --
       02/28/97         $      14,000         $   0.96             --

Of the  total  distributions  noted  above,  $61.90,  $3.80  and  $2.88 per unit
represented  a return of capital for the fiscal  years ended  December 31, 1999,
1998 and 1997,  respectively.  The increase in distributions  for the year ended
1999,  compared to 1998 and 1997,  resulted  from the proceeds  from the sale of
Aztec Village.

Item 6.                    Selected Financial Data
                           -----------------------
The following is selected  financial  data for the five years ended December 31,
1999,  1998,  1997,  1996 and November 30, 1995 (in  thousands,  except per Unit
data).
<TABLE>
<CAPTION>
<S>                            <C>              <C>                 <C>               <C>              <C>

                                   1999               1998            1997              1996              1995
                                   ----             ------          --------          --------          ------
Rental income                  $     868        $    1,022          $   1,142         $   1,125        $   1,397

Provision for impairment
 of investments in
  real estate                  $      --        $      451          $     438         $   1,645        $      --

Net income (loss)              $     391        $     (279)         $    (165)        $  (1,394)       $     300

Net income (loss)
  allocable to limited
  partners                     $     387        $     (276)         $    (163)        $  (1,380)       $     297

Net income (loss)
  per limited
  partnership unit             $   26.59        $  (18.96)          $  (11.20)        $  (94.81)       $   20.40

Total assets                   $   5,488        $    6,012          $   6,323         $   6,531        $   8,159

Cash distributions
  per  limited
  partnership unit             $   61.90        $    3.80           $    2.88         $    7.00        $   33.39
</TABLE>

                                  Page 7 of 26

<PAGE>
Item 7.           Management's Discussion and Analysis of Financial Condition
                  and Results of Operations

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
The  following  discussions  should be read in  conjunction  with the  financial
statements and notes thereto in Item 14 of Part IV:

On April 21, 1989, Rancon Income Fund I ("the  Partnership") was funded from the
sale of 14,559 limited partnership units ("Units") in the amount of $14,559,000.
Four units were retired in 1990 and 14,555 Units remain  outstanding at December
31, 1999. As of December 31, 1999, the Partnership  had cash of $1,208,000.  The
remainder  of the  Partnership's  assets  consists  primarily of its real estate
investments, which totaled approximately $4,220,000 at December 31, 1999.

Operationally,  the  Partnership's  primary  source  of funds  consists  of cash
generated  from  operating  the rental  properties.  Cash  flows from  operating
activities  have been  sufficient to provide funds to reinvest in the properties
by  way of  improvements,  as  well  as to  fund  distributions  to the  limited
partners.  Another source of funds has been the interest earned on invested cash
balances.

On May 12, 1999, the Partnership sold Aztec Village Shopping Center ("Aztec"), a
23,879  square  foot  retail  center  located  in San Diego,  California,  to an
unaffiliated entity for $1,000,000.  The Partnership realized a $254,000 gain on
the sale, which is reflected in the accompanying statement of operations for the
year ended  December 31, 1999. The sale proceeds  totaling  $937,000 were net of
selling costs and expenses  incurred,  of which $742,305 was  distributed to the
partners and the remainder was added to the Partnership's cash reserves.

Management believes that the Partnership's cash balance as of December 31, 1999,
together  with the cash from  operations,  will be  sufficient  to  finance  the
Partnership's and the properties  continued  operations on both a short-term and
long-term basis.

RESULTS OF OPERATIONS
---------------------
1999 versus 1998
----------------
Rental income decreased  $154,000,  or 15%, for the year ended December 31, 1999
compared to the year ended  December 31, 1998. The decrease was primarily due to
the sale of Aztec Village.

The  $254,000  gain on sale of real  estate  resulted  from the May 1999 sale of
Aztec Village Shopping Center.

Interest and other income increased $10,000, or 34%, for the year ended December
31, 1999 compared to the year ended  December 31, 1998 due to a higher  invested
balance resulting from sale of Aztec Village.

Operating expenses  decreased  $84,000,  or 20%, for the year ended December 31,
1999 compared to the year ended  December 31, 1998  primarily due to the sale of
the Aztec Village.

Depreciation and amortization  expense increased  $19,000,  or 11%, for the year
ended   December  31,  1999  compared  to  December  31,  1998  due  to  capital
improvements at rental properties.

                                  Page 8 of 26

<PAGE>
General and administrative  expenses decreased $44,000,  or 16%, during the year
ended December 31, 1999 compared to the year ended December 31, 1998,  primarily
due to a decrease  in asset  management  fee  resulting  from the sale of Aztec
Village.  Since  July 1999,  the annual  asset  management  fee was  reduced to
$100,000

1998 versus 1997
----------------
Rental income decreased  $120,000,  or 11%, for the year ended December 31, 1998
compared to the year ended  December 31, 1997. The decrease was primarily due to
one of the  tenants,  St.  Jude  Hospital,  downsizing  leased  office  space in
September 1998 at Bristol Medical Center.

Interest and other income increased  $15,000,  or 100%, in 1998 compared to 1997
due to the interest earned on a higher invested cash balance in 1998.

Operating, depreciation and amortization and general and administrative expenses
incurred in 1998 were consistent with the expenses incurred in 1997.

In 1998 and 1997, due to high vacancy levels, difficulty in leasing vacant space
and projected cash flows,  management  determined that the carrying value of two
of the  Partnership's  rental  properties were in excess of their estimated fair
values.  As a  result,  in  1998,  the  Partnership  recorded  a  provision  for
impairment  of its  investment  in  Bristol  Medical  Center  in the  amount  of
$451,000. In 1997, a provision for impairment of the investment in Aztec Village
Shopping Center was recorded in the amount of $438,000.

Item 8.           Financial Statements and Supplementary Data

For information  with respect to Item 8, see Financial  Statements and Schedules
as listed in Item 14.

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

None

                                  Page 9 of 26
<PAGE>

Part III

Item 10.          Directors and Executive Officers of the Partnership

Rancon Income Partners I is the General Partner of the  Partnership.  Daniel Lee
Stephenson and Rancon Financial  Corporation ("RFC") are the General Partners of
Rancon Income Partners I, L.P. The executive officer and director of RFC is:

Daniel L. Stephenson           Director, President, Chief Executive Officer and
                               Chief Financial Officer

There is no fixed term of office for Mr. Stephenson.

Mr.  Stephenson,  age 56, founded RFC in 1971 for the purpose of  establishing a
commercial,  industrial and  residential  property  syndication,development  and
brokerage  concern.  Mr.  Stephenson has, from  inception,  held the position of
Director. In addition,  Mr. Stephenson was President and Chief Executive Officer
of RFC from 1971 to 1986, from August 1991 to September 1992, and from March 31,
1995 to present. Mr. Stephenson is Chairman of the Board of PacWest Group, Inc.,
a real estate firm which has acquired a portfolio of assets from the  Resolution
Trust Corporation.

Item 11.          Executive Compensation

The Partnership  has no executive  officers.  For information  relating to fees,
compensation,   reimbursements   and  distributions  paid  to  related  parties,
reference is made to Item 13 below.

Item 12.          Security Ownership of Certain Beneficial Owners and Management

Security Ownership of Certain Beneficial Owners
-----------------------------------------------
No person is known by the Partnership to be the beneficial owner of more than 5%
of the Units.

Security Ownership of Management
--------------------------------
                                         Amount and Nature of
Title of Class  Name of Beneficial Owner Beneficial Ownership  Percent of Class
--------------  ------------------------ --------------------  ----------------

    Units         Daniel L. Stephenson      3 Units (trust)  Less than 1 percent

Changes in Control
------------------
The Limited  Partners  have no right,  power or authority to act for or bind the
Partnership.  However,  the  Limited  Partners  have the  power to vote upon the
following  matters  affecting the basic  structure of the  Partnership,  each of
which shall require the approval of Limited  Partners  holding a majority of the
outstanding  Units: (i) amendment of the  Partnership's  Partnership  Agreement;
(ii)  termination and dissolution of the  Partnership;  (iii) sale,  exchange or
pledge  of all or  substantially  all of the  assets  of the  Partnership;  (iv)
removal of the General Partner or any successor General Partner; (v) election of
a new General Partner; (vi) the approval or disapproval of the terms of purchase
of the General  Partner's  interest;  and (vii) the modification of the terms of
any agreement between the Partnership and the General Partner or an affiliate.




                                 Page 10 of 26
<PAGE>


Item 13.                   Certain Relationships and Related Transactions

For the year ended  December 31, 1999, the  Partnership  did not incur any costs
reimbursable to RFC or any affiliate of the Partnership.




                                 Page 11 of 26
<PAGE>


                                     Part IV

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

         (a)  The following documents are filed as part of this report

              (1)  Financial Statements:

                   Report of Independent Public Accountants

                   Balance Sheets as of December 31, 1999 and 1998

                   Statements of Operations for the Years Ended December 31,
                   1999, 1998 and 1997

                   Statements of Partners' Equity (Deficit) for the Years Ended
                    December 31, 1999, 1998 and 1997

                   Statements of Cash Flows for the Years Ended December 31,
                   1999, 1998 and 1997

                   Notes to Financial Statements

              (2)  Financial Statement Schedule:

                   Schedule III -- Real Estate and  Accumulated  Depreciation as
                   of December 31, 1999 and Notes thereto

              All other schedules are omitted because they are not applicable or
              the required  information is shown in the financial  statements or
              notes thereto.

              (3)  Exhibits:
                   (27)Financial Data Schedule

         (b)  Reports on Form 8-K

              None.




                                 Page 12 of 26
<PAGE>



                                   SIGNATURES



Pursuant to the  requirements  of Section 13 or Section 15(d) of the  Securities
Exchange Act of 1934, the  Partnership  has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.


                                        RANCON INCOME FUND I,
                                        a California Limited Partnership
                                        (Partnership)

                                        By:  RANCON INCOME PARTNERS I, L.P.
                                             General Partner



Date:    March 30, 2000                 By:  /s/ Daniel L. Stephenson
                                             ------------------------
                                             Daniel L. Stephenson,
                                             Director, President,
                                             Chief Executive Officer and
                                             Chief Financial Officer of
                                             Rancon Financial Corporation,
                                             General Partner of
                                             Rancon Income Partners I, L.P.




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


                                        By:   RANCON INCOME PARTNERS I, L.P.
                                              General Partner



Date:    March 30, 2000                 By:   /s/ Daniel L. Stephenson
                                              ------------------------
                                              Daniel L. Stephenson,
                                              Director, President,
                                              Chief Executive Officer and
                                              Chief Financial Officer of
                                              Rancon Financial Corporation,
                                              General Partner of
                                              Rancon Income Partners I, L.P.


                                 Page 13 of 2
<PAGE>



                              RANCON INCOME FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP

                          INDEX TO FINANCIAL STATEMENTS
                                  AND SCHEDULE




                                                                            Page

Report of Independent Public Accountants                                     15

Financial Statements:

         Balance Sheets as of December 31, 1999, 1998 and 1997               16

         Statements of Operations for the years ended December 31, 1999,
           1998 and 1997                                                     17

         Statements of Partners' Equity (Deficit) for the years ended
           December 31, 1999, 1998 and 1997   18

         Statements of Cash Flows for the years ended December 31, 1999,
           1998 and 1997                                                     19

         Notes to Financial Statements  20

Schedule:

         III -  Real Estate and Accumulated Depreciation
                as of December 31, 1999 and Notes thereto                    25



All other  schedules are omitted because they are not applicable or the required
information is shown in the financial statements or notes thereto.





                                 Page 14 of 26
<PAGE>






                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS



To the Partners of
RANCON INCOME FUND I, A CALIFORNIA LIMITED PARTNERSHIP:

We have  audited  the  accompanying  balance  sheets of RANCON  INCOME FUND I, A
CALIFORNIA  LIMITED  PARTNERSHIP,  as of  December  31,  1999 and 1998,  and the
related statements of operations,  partners' equity (deficit) and cash flows for
the years ended December 31, 1999, 1998 and 1997. These financial statements and
the  schedule  referred  to below are the  responsibility  of the  Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements and schedule based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States. 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 RANCON  INCOME  FUND I, A
CALIFORNIA  LIMITED  PARTNERSHIP,  as of  December  31,  1999 and 1998,  and the
results of its  operations  and its cash flows for the years ended  December 31,
1999, 1998 and 1997 in conformity with accounting  principles generally accepted
in the United States.

Our  audits  were  made for the  purpose  of  forming  an  opinion  on the basic
financial  statements taken as a whole. The accompanying  schedule listed in the
index to  financial  statements  and  schedule  is  presented  for  purposes  of
complying  with the  Securities  and  Exchange  Commission's  rules and is not a
required  part of the basic  financial  statements.  This  information  has been
subjected  to the  auditing  procedures  applied  in  our  audits  of the  basic
financial  statements  and, in our  opinion,  is fairly  stated in all  material
respects in relation to the basic financial statements taken as a whole.





San Francisco, California
  February 4, 2000




                                 Page 15 of 26
<PAGE>



                              RANCON INCOME FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP

                                 Balance Sheets
                           December 31, 1999 and 1998
                    (in thousands, except units outstanding)

<TABLE>
<CAPTION>
                                                                      1999                  1998
<S>                                                               <C>                   <C>
                                                                  -------------         ------------
Assets Real estate investments:
   Rental property, net of accumulated depreciation of
     $1,805 and $1,626 at December 1999 and 1998,
     respectively                                                 $       4,220         $      4,290
   Rental property held for sale, net                                        --                  685
                                                                  -------------         ------------

     Total real estate investments                                        4,220                4,975
                                                                  -------------         ------------

Cash and cash equivalents                                                 1,208                  872
Deferred costs, net of accumulated amortization of
   $40 and $42 at December 31, 1999 and 1998, respectively                   45                   55
Prepaid expenses and other assets                                            15                  110
                                                                  -------------         ------------

     Total assets                                                 $       5,488         $      6,012
                                                                  =============         ============

Liabilities and Partners' Equity (Deficit)
------------------------------------------
Liabilities:
   Accounts payable and accrued expenses                          $          48         $         36
   Security deposits                                                         60                   72
                                                                  -------------         ------------

     Total liabilities                                                      108                  108
                                                                  -------------         ------------

Partners' Equity (deficit):
   General Partner                                                         (193)                (183)
   Limited Partners (14,555 limited partnership
     units outstanding)                                                   5,573                6,087
                                                                  -------------         ------------

     Total partners' equity                                               5,380                5,904
                                                                  -------------         ------------

     Total liabilities and partners' equity                       $       5,488         $      6,012
                                                                  =============         ============
</TABLE>






   The accompanying notes are an integral part of these financial statements.




                                 Page 16 of 26
<PAGE>


                              RANCON INCOME FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP

                            Statements of Operations
              For the years ended December 31, 1999, 1998 and 1997
                (in thousands, except per unit and unit amounts)


<TABLE>
<CAPTION>
<S>                                                           <C>                  <C>                    <C>

                                                                1999                  1998                    1997
                                                              ---------            -----------            ---------
Revenue:
 Rental income                                                $     868            $     1,022            $   1,142
 Gain on sale of real estate                                        254                     --                   --
 Interest and other income                                           40                     30                   15
                                                              ---------            -----------            ---------

       Total revenue                                              1,162                  1,052                1,157
                                                              ---------            -----------            ---------

Expenses:
 Operating                                                          345                    429                  424
 Depreciation and amortization                                      194                    175                  181
 Provision for impairment of investments
    in real estate                                                   --                    451                  438
 General and administrative                                         232                    276                  279
                                                              ---------            -----------            ---------

       Total expenses                                               771                  1,321                1,322
                                                              ---------            -----------            ---------

Net income (loss)                                             $     391            $      (279)            $   (165)
                                                               ========             ===========            ========

Net income (loss) per limited partnership unit                $  26.59             $    (18.96)            $ (11.20)
                                                               =======              ==========              =======

Distributions per limited partnership unit:
 From net income                                              $  26.59            $        --             $      --
 Representing return of capital                                  35.31                    3.80                 2.88
                                                              ---------             ----------             --------

       Total distributions per limited partnership unit       $  61.90             $      3.80            $    2.88
                                                               =======              ==========             ========

Weighted average number of limited  partnership
    units  outstanding  during each period used to
    compute net income (loss) and distributions per
    limited partnership unit                                    14,555                  14,555                14,555
                                                              =========            ===========              ========
</TABLE>




   The accompanying notes are an integral part of these financial statements.



                                 Page 17 of 26
<PAGE>




                              RANCON INCOME FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP

                    Statements of Partners' Equity (Deficit)
              For the years ended December 31, 1999, 1998 and 1997
                                 (in thousands)

<TABLE>
<CAPTION>

                                            General         Limited
                                            Partner         Partners         Total
                                           ---------     -----------      ----------
<S>                                         <C>           <C>              <C>


      Balance at December 31, 1996         $    (178)     $   6,623        $   6,445

      Distributions                               --            (42)             (42)

      Net loss                                    (2)          (163)            (165)
                                           ----------     ----------       ----------

      Balance at December 31, 1997              (180)         6,418            6,238

      Distributions                               --            (55)             (55)

      Net loss                                    (3)          (276)            (279)
                                           ----------     ----------       ----------

      Balance at December 31, 1998              (183)         6,087            5,904

      Distributions                              (14)          (901)            (915)

      Net income                                   4            387              391
                                            ---------     ----------       ----------
      Balance at December 31, 1999           $  (193)        $5,573           $5,380
                                            =========     ==========       ==========
</TABLE>




   The accompanying notes are an integral part of these financial statements.




                                 Page 18 of 26
<PAGE>


                              RANCON INCOME FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP

                            Statements of Cash Flows
              For the years ended December 31, 1999, 1998 and 1997
                                 (in thousands)

<TABLE>
<CAPTION>
<S>                                                     <C>                 <C>                 <C>

                                                            1999               1998                1997
                                                        ------------        -----------          ----------

Cash flows from operating activities:
      Net loss                                          $       391         $      (279)        $      (165)
Adjustments to reconcile net loss
   to net cash provided by operating activities:
     Net gain on sale of real estate                           (254)                 --                  --
     Depreciation and amortization                              194                 175                 181
     Provision for impairment of investments
       in real estate                                            --                 451                 438
Changes in certain assets and liabilities:
     Deferred costs                                               5                 (52)                 (3)
     Prepaid expenses and other assets                           95                 (29)                (53)
     Accounts payable & other liabilities                        --                  23                  (1)
                                                        -----------         -----------         -----------
       Net cash provided by operating activities                431                 289                 397
                                                        -----------         -----------         -----------

Cash flows used for investing activities:
     Net proceeds from sale of real estate                      937                  --                  --
     Additions to real estate                                  (117)               (111)                (32)
                                                        ------------        -----------         -----------
       Net cash provided by (used for)                          820                (111)                (32)
                                                        -----------         -----------         -----------
         investing activities
Cash flows used for financing activities:
     Cash distributions to limited partners                    (915)                (55)                (42)
                                                        ------------        -----------         -----------

Net increase in cash and cash equivalents                       336                 123                 323

Cash and cash equivalents at beginning of year                  872                 749                 426
                                                        -----------         -----------         -----------

Cash and cash equivalents at end of year                $     1,208         $       872         $       749
                                                        ===========         ===========         ===========
</TABLE>





   The accompanying notes are an integral part of these financial statements.





                                 Page 19 of 26
<PAGE>

                              RANCON INCOME FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP

                          Notes to Financial Statements

                        December 31, 1999, 1998 and 1997


Note 1.           ORGANIZATION
                  ------------
Rancon Income Fund I ("the  Partnership")  was organized in accordance  with the
provisions of the California Revised Limited  Partnership Act for the purpose of
acquiring,  operating and  disposing of existing  income  producing  commercial,
industrial and residential real estate properties. The Partnership reached final
funding  in  April  1989.  The  Partnership  was  formed  with  initial  capital
contributions  from Rancon  Income  Partners I, L.P.  (the General  Partner) and
Daniel Lee  Stephenson,  the initial  limited  partner,  who indirectly owns and
controls  the General  Partner.  The  General  Partner  and its  affiliates  are
hereinafter  referred to as the Sponsor.  At December 31, 1999 and 1998,  14,555
units were issued and outstanding.

Allocation  of the profits and losses from  operations  are made pursuant to the
terms of the  Partnership  Agreement.  Generally,  net income from operations is
allocated  to the  general  partner and limited  partners in  proportion  to the
amounts of cash from  operations  distributed  to the  partners  for each fiscal
year. In no event shall the General  Partner be allocated  less than one percent
of such income.  If there are no  distributions  of cash from operations  during
such fiscal year, net income shall be allocated 90% to the limited  partners and
10% to the general partner.  Net losses from operations are allocated 90% to the
limited  partners and 10% to the general  partner until such time as a partner's
account is reduced to zero.  Additional  losses  will be  allocated  entirely to
those partners with positive account balances until such balances are reduced to
zero.  In no event will the  general  partner be  allocated  less than 1% of net
income or net loss for any period.  Distributions  of cash from  operations  are
generally  allocated as follows:  (i) first to the limited  partners  until they
receive  a  non-cumulative  6%  return  per  annum on their  unreturned  capital
contributions  and (ii) the remainder,  if any in a given year, shall be divided
in the ratio of 90% to the limited partners and 10% to the general partner.

The terms of the Partnership agreement call for the general partner to restore
any deficits that may exist in its capital account after allocation of gains and
losses from the sale of the final property owned by the Partnership, but prior
to any liquidating distributions being made to the partners.

Effective  January 1, 1995,  Glenborough  Corporation  (successor by merger with
Glenborough Inland Realty Corporation) ("Glenborough") entered into an agreement
with the Partnership and other related  Partnerships  (collectively,  the Rancon
Partnerships) to perform or contract on the Partnership's  behalf for financial,
accounting,  data processing,  marketing,  legal, investor relations,  asset and
development  management and consulting services for the Partnership for a period
of ten years or until the liquidation of the Partnership, whichever comes first.
Effective January 1, 1998, the agreement was amended to eliminate  Glenborough's
responsibilities  for providing  investor relations  services.  According to the
contract,  the Partnership will pay Glenborough for its services as follows: (i)
a specified annual asset  administration fee ($144,000 in 1999, $187,000 in 1998
and $208,000 in 1997); (ii) sales fees of 2% for improved  properties and 4% for
land;  (iii) a  refinancing  fee of 1% and (iv)  management  fees of 5% of gross
rental  receipts.  As part of this agreement,  Glenborough  will perform certain
duties  for the  General  Partner  of the  Rancon  Partnerships.  RFC  agreed to
cooperate with Glenborough, should Glenborough attempt to obtain a majority vote
of the  limited  partners  to  substitute  itself as the  Sponsor for the Rancon
Partnerships. Glenborough is not an affiliate of the Partnership or RFC.




                                 Page 20 of 26
<PAGE>


Note 2:            Significant Accounting Policies
                   -------------------------------
Basis of Accounting - The accompanying  financial  statements have been prepared
on the  accrual  basis of  accounting  in  accordance  with  generally  accepted
accounting  principles  under the presumption that the Partnership will continue
as a going concern.

Use of Estimates - The  preparation of financial  statements in conformity  with
generally accepted  accounting  principles requires management to make estimates
and assumptions  that effect the reported  amounts of assets and liabilities and
disclosure of  contingent  assets and  liabilities  at the date of the financial
statements and the reported results of operations  during the reporting  period.
Actual results could differ from those estimates.

Risks and Uncertainties - The Partnership's ability to (i) achieve positive cash
flow from operations,  provide  distributions from operations (ii) continue as a
going  concern,  may be  impacted  by changes  in  property  values,  geographic
economic  conditions,  or the entry of other  competitors  into the market.  The
accompanying  financial statements do not provide for adjustments with regard to
these uncertainties.

Rental Property - Rental  properties,  including the related land, are stated at
cost unless  events or  circumstances  indicate that cost cannot be recovered in
which case the carrying value is reduced to the estimated fair value.  Estimated
fair  value:  (i) is  based  upon  the  Partnership's  plans  for the  continued
operation of each property; and (ii) is computed using estimated sales price, as
determined by prevailing market values for comparable  properties and/or the use
of  capitalization  rates multiplied by annualized  rental income based upon the
age, construction and use of the building.  The fulfillment of the Partnership's
plans related to each of its properties is dependent  upon,  among other things,
the  presence  of  economic  conditions  which will  enable the  Partnership  to
continue to hold and operate the properties prior to their eventual sale. Due to
uncertainties  inherent  in the  valuation  process  and in the  economy,  it is
reasonably  possible  that the actual  results of operating and disposing of the
Partnership's   properties   could  be   materially   different   than   current
expectations.

Depreciation is provided using the straight-line method over the useful lives of
the respective assets.

Rental  Property Held for Sale - Rental  property held for sale is stated at the
lower of cost or estimated  fair value less costs to sell.  Estimated fair value
is based upon prevailing market values for comparable  properties and/or the use
of  capitalization  rates multiplied by annualized  rental income based upon the
age, construction and use of the building.  The fulfillment of the Partnership's
plans to dispose of property is dependent upon, among other things, the presence
of economic  conditions,  which will enable the Partnership to hold the property
for eventual sale. The  Partnership  discontinues  depreciating  rental property
once it is classified as held for sale.

Cash and cash  equivalents - The Partnership  considers  certificates of deposit
and money market funds with  original  maturities of less than ninety days to be
cash equivalents.



                                 Page 21 of 26
<PAGE>


Fair  Value  of  Financial  Instruments  -  Statement  of  Financial  Accounting
Standards  No.  107  requires  disclosure  about  fair  value for all  financial
instruments. Cash and cash equivalents consist of demand deposits,  certificates
of deposit and short-term investments with financial institutions.  The carrying
amount of cash and cash equivalents approximates fair value.

Deferred Costs - Deferred lease commissions are amortized over the initial fixed
term of the related  lease  agreement  on a  straight-line  basis.  Amortization
expense was $15,000  $12,000 and $7,000 for the years ended  December  31, 1999,
1998 and 1997 respectively.

Rental  Income - Rental  income is  recognized  as  earned  over the life of the
respective leases.

Net Income (Loss) Per Limited  Partnership  Unit - Net income (loss) per limited
partnership  unit is  calculated  using the weighted  average  number of limited
partnership  units  outstanding  during  the period  and the  limited  partners'
allocable share of the net income (loss).

Income  Taxes - No provision  for income  taxes is included in the  accompanying
financial  statements  as the  Partnership's  results of  operations  are passed
through to the partners for  inclusion in their  respective  income tax returns.
Net income (loss) and partners'  equity for  financial  reporting  purposes will
differ from the  Partnership  income tax return because of different  accounting
methods  used  for  certain  items,  principally  depreciation  expense  and the
provision for impairment of investments in real estate.

Note 3.           RENTAL PROPERTY, NET
                  --------------------

Rental property as of December 31, 1999 and 1998 is as follows:
                                          1999                    1998
                                          ----                    ----
Land                                $    1,928,000        $     1,928,000
Buildings and improvements               3,562,000              3,504,000
Tenant improvements                        535,000                484,000
                                     -------------         --------------
                                         6,025,000              5,916,000
Less: accumulated depreciation          (1,805,000)            (1,626,000)
                                     --------------        --------------
         Total                      $    4,220,000        $     4,290,000
                                     =============         ==============

Rental property held for sale at December 31, 1998 is as follows:
                                                                 1998
                                                                 ----
Land                                                      $       312,000
Buildings and improvements                                        642,000
Tenant improvements                                                70,000
                                                          ---------------
                                                                1,024,000
Less: accumulated depreciation                                   (339,000)
                                                         ----------------
         Total                                            $       685,000
                                                          ===============

In 1998 and 1997, due to high vacancy levels, difficulty in leasing vacant space
and projected cash flows,  management  determined that the carrying value of two
of the  Partnership's  rental  properties were in excess of their estimated fair
values. As a result, in 1998 the Partnership recorded a provision for


                                 Page 22 of 26
<PAGE>


impairment of its investment in Bristol Medical Center in the amount of $451,000
and, in 1997, a provision  for  impairment  of its  investment  in Aztec Village
Shopping Center in the amount of $438,000.

At December 31 1998, the Aztec Village  Shopping  Center property was classified
as held for sale. On May 12, 1999, the Partnership  sold Aztec Village  Shopping
Center  ("Aztec"),  a 23,879  square  foot retail  center  located in San Diego,
California, to an unaffiliated entity for $1,000,000. The Partnership realized a
$254,000 gain on the sale, which is reflected in the  accompanying  statement of
operations for the year ended December 31, 1999. The sale generated net proceeds
of $937,000.

None of the  Partnership's  properties are encumbered by debt as of December 31,
1999 and 1998.

Note 4.           LEASES
                  ------

The Partnership's  rental properties are leased under  non-cancelable  operating
leases that expire on various dates through November 2004.  Minimum future rents
under non-cancelable operating leases as of December 31, 1999 are as follows:

               2000     $                 770,000
               2001                       760,000
               2002                       759,000
               2003                       619,000
               2004                       293,000
               Thereafter                 805,000
                                    -------------

               Total                $   4,006,000
                                     ============

Note 5.           TAXABLE INCOME
                  --------------
The  Partnership's  tax  returns,  the  qualification  of the  Partnership  as a
partnership  for federal  income tax purposes,  and the amount of income or loss
are subject to  examination  by federal and state  taxing  authorities.  If such
examinations result in changes to the Partnership's  taxable income or loss, the
tax liability of the partners could change accordingly.

The  Partnership's  tax returns are filed on a calendar year basis. As such, the
following is a reconciliation of the net income for financial reporting purposes
to the estimated taxable income, for the years ended December 31, 1999, 1998 and
1997,  determined in accordance with accounting practices used in preparation of
federal income tax returns (in thousands).


                                 Page 23 of 26
<PAGE>

<TABLE>
<CAPTION>
<S>                                                            <C>            <C>              <C>

                                                                   1999            1998            1997
                                                                   ----           -----            ----
Net income (loss) per financial statements                     $    391       $    (279)       $    (165)
Provision for impairment of investments in
      real estate                                                    --             451              438
Financial reporting depreciation in excess
      of tax depreciation                                            18             (29)             (19)
Gain (loss) on property sales in excess of
      Financial reporting                                        (2,263)             --               --
Rental income reported in a different period
      for tax than for financial reporting                           --              --              (40)
Operating revenues and expenses reported in a
      different period for tax than for financial
      reporting, net                                                (29)             21               48
                                                               ---------      ---------        ---------
Estimated net income (loss) for federal income tax purposes    $ (1,883)      $     164        $     262
                                                                ========       ========         ========
</TABLE>


The following is a reconciliation  as of December 31, 1999 and 1998 of partner's
equity for  financial  reporting  purposes  to  estimated  partners'  equity for
federal income tax purposes (in thousands).

                                                       1999            1998
                                                       ----            ----
Partners' equity per financial statements        $      5,380    $      5,904
Cumulative provision for impairment of
      investments in real estate                        2,096           5,014
Financial reporting depreciation in excess
      of tax reporting depreciation                       301            (314)
Operating expenses recognized in a different
      period for financial reporting than for
      tax reporting, net                                   56              26
                                                 ------------    ------------
Estimated partners' equity for federal
      income tax purposes                        $      7,833    $     10,630
                                                  ===========    ============





                                 Page 24 of 26
<PAGE>


<TABLE>
<CAPTION>

                                                                      RANCON INCOME FUND I,
                                                                A California Limited Partnership

                                                     SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
                                                                        December 31, 1999
                                                                         (In Thousands)

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

COLUMN A             COLUMN B           COLUMN C                  COLUMN D                     COLUMN E                    COLUMN F
-----------------------------------------------------------------------------------------------------------------------------------
                                                           Cost Capitalized
                                      Initial Cost to         Subsequent to               Gross Amount Carried
                                        Partnership             Acquisition             at December 31, 1999
                                  ---------------------  -----------------------  --------------------------------
                                              Buildings     Buildings                          Building
                                                 and           and      Carrying                 and        (1 , 2)    Accumulated
Description          ncumbrances     Land  Improvements   Improvements     Cost       Land   Improvements     Total    Depreciation
-----------------------------------------------------------------------------------------------------------------------------------

Rental Properties:

 Wakefield Facility    $     --   $   666    $   1,118   $       133   $    --    $     666    $   1,251    $  1,917    $   385
  Less:  Provisions for
 impairmenet in real estate  --        --           --          (175)       --          (61)        (114)       (175)        --

  Bristol Medical Center     --     1,937        3,327           939        --        1,937        4,266       6,203      1,420
  Less:  Provision for
 impairment in real estate   --      (614)        (271)       (1,036)       --         (614)      (1,307)     (1,921)        --
                        -------  ---------- ----------    -----------  -------      ---------   ---------    ---------    ------

       Total           $     --   $ 1,928    $   4,099   $        (2)  $    --    $   1,928     $  4,097     $ 6,025    $ 1,805
                        =======  ========== ==========    ===========   =======     =========   =========    ========     ======


COLUMN A                     COLUMN G        COLUMN H        COLUMN I
-----------------------------------------------------------------------




                              Date                               Life
                             Construction      Date          Depreciated
Description                   Began          Acquired            Over
-----------------------------------------------------------------------
Rental Properties:

 Wakefield Facility    $      N/A            4/20/87       5 - 40 years
  Less:  Provisions for
  impairmenet in real estate

  Bristol Medical Center      N/A            5/04/88       5 - 40 years
  Less:  Provision for
  impairment in real estate

        Total

</TABLE>


(1) The aggregate cost of land and buildings for Federal income tax purposes is
    $8,158





                                 Page 25 of 26
<PAGE>



         NOTE TO SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION



Reconciliation  of gross  amount at which real  estate was carried for the years
ended December 31, 1999, 1998 and 1997 (in thousands):

<TABLE>
<CAPTION>
<S>                                      <C>              <C>              <C>

                                              1999            1998             1997
                                         ------------     ------------    ---------
INVESTMENT IN REAL ESTATE

  Balance at beginning of year           $     6,940      $     7,280      $    7,844
     Additions during year:
         Improvements, etc.                      109              111              32
     Deletions during year:

         Disposals                             (1,024)             --            (158)
         Provision for impairment of
           investments in real estate             --             (451)           (438)
                                         -----------      ------------      ----------

  Balance at end of year                 $     6,025      $     6,940      $    7,280
                                         ===========       ===========      ==========

ACCUMULATED DEPRECIATION

  Balance at beginning of year         $       1,965      $     1,802        $  1,786
     Additions charged to expenses               179              163             174
     Disposals                                  (339)              --            (158)
                                         -----------        -----------       ---------

  Balance at end of year               $       1,805      $     1,965        $  1,802
                                         ===========        ===========       =========


                                 Page 26 of 26

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