ESCROW DEPOSIT AGREEMENT


        This  Escrow Deposit  Agreement (the  Deposit Agreement )  is made and
  entered as of the  1st day of August, 1996,  by and between Krupp Government
  Trust ( GIT )  and M&D  Palm  Harbor, Inc.  and Fl-Tampa,  Inc. the  general
  partners  of  Lifestyles  at  Boot  Ranch,  a  Florida  general  partnership
  (collectively the  Partners ).

        WHEREAS, GIT made a  loan to the Partners  in the amount of $1,817,665
  (the  Additional Loan )  which is evidenced  by an Additional Loan  Note and
  Additional Loan Agreement;

        WHEREAS, GIT purchased  the GNMA MBS to  fund a Coinsured Loan in  the
  amount  of $10,300,100 made to  Lifestyles at Boot  Ranch at  below the then
  prevailing rates for similar loans to the benefit of the Partners;

        WHEREAS, the  Partners have  requested assistance from GIT  in regards
  to  its obligations  under the Coinsured  Loan documents  and the Additional
  Loan Note  and Additional Loan  Agreement and GIT has  agreed to modify  the
  terms of those  obligations and the  Partners and  GIT have  entered into  a
  Modification Agreement dated as of August 1, 1996;

        WHEREAS, pursuant  to the  Modification Agreement,  the Partners  have
  agreed to deposit the  sum of  $150,000 in an escrow  account to be used  to
  assist  in bringing  the delinquent Coinsured  Loan current,  to help reduce
  trade payables or as specified by GIT for other related project costs;

        WHEREAS, the parties  hereto have reached  an agreement  regarding the
  terms and conditions of the escrow deposit which are set forth herein.

        NOW  THEREFORE,  in  consideration  of  the  foregoing,  GIT  and  the
  Partners hereby agree as follows:

        1.    The  Partners have  deposited in  the form  of  cash the  sum of
  $  1  5  0  ,  0  0  0   (  t  h  e      E  s  c  r  o  w     )   w  i  t  h
  ______________________________________________________(the      Depository )
  which Depository is acceptable to GIT.

        2.    Disbursements from  the Escrow  shall be  authorized monthly  or
  more frequently by  GIT for any delinquency  in the Coinsured Loan, to  help
  pay any  trade payables  deemed necessary to  be paid  by GIT and  for other
  related costs associated with the operations of the Lifestyles Apartments.

        3.    Said Escrow shall be in an  interest bearing account and  earned
  interest  shall be kept  in the Escrow and may  be expended for the purposes
  specified in paragraph 2 above.

        4.    Said  Escrow  will be  subject to  immediate application  to the
  Coinsured  Loan obligations in  the event  of any uncured  default under the
  Coinsured Loan documents.

        5.    Depository by  its acceptance of  the Escrow and  acknowledgment
  of this  Deposit Agreement  agrees to  hold and  disburse the  funds in  the
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  Escrow at the sole  direction of GIT and the Partners shall have no right to
  withdraw any funds from the Escrow without the written consent of GIT.

        6.    At  such date  as GIT  determines  in  its sole  discretion that
  there  is no  longer  a  need for  the Escrow,  any  balance in  the Escrow,
  including  any  earned  interest,    will   be  deposited  in  the   project
  Replacement  Reserve account  established  at the  closing  of  the original
  Coinsured  Loan.   Funds  will  then be  disbursed  in  accordance with  the
  Replacement  Reserve  Agreement  executed at  the  closing  of the  original
  Coinsured Loan.

        IN WITNESS  WHEREOF, the undersigned parties  have cause this  Deposit
  Agreement to be executed on the day, month and year first written above.

                                      PARTNERS:
                                      M&D Palm Harbor Inc., a Florida 
  corporation

                                      BY: _____________________________
                                             Name:
                                             Title:

                                      FL-Tampa, Inc., a Florida corporation

                                      BY: _____________________________
                                             Name:
                                             Title:

                                      GIT:
                                      Krupp Government Income Trust, a 
                                      Massachusetts business trust

                                      BY:  Berkshire Mortgage Advisors 
  Limited Partnership, its advisor
                                      BY:  BRF Corporation, its general 
                                               partner

                                      BY: ______________________________
                                             Name:
                                             Title:

  DEPOSITORY ACKNOWLEDGMENT
        DEPOSITORY:
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