SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-Q
          [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 1998

                                       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 No. 0-13556

          Cluster Housing Properties (A California Limited Partnership)
              (formerly Berry and Boyle Cluster Housing Properties)
             (Exact name of registrant as specified in its charter)

                              California 04-2817478
--------------------------------------------------------------------------------
                (State or other jurisdiction of (I.R.S. Employer
               incorporation or organization) Identification No.)

                  5110 Langdale Way, Colorado Springs CO 80906
--------------------------------------------------------------------------------
               (Address of principal executive offices) (Zip Code)

                                                  (719) 527-0544
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

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 Interests

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by  Sections  13 and 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 ___




<PAGE>





                          PART I. FINANCIAL INFORMATION

                          Item 1. FINANCIAL STATEMENTS



<PAGE>





                           CLUSTER HOUSING PROPERTIES
                       (a California Limited Partnership)
                                AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

                                 ---------------
<TABLE>


                                     ASSETS ..................................................      June 30,
                                                                                                      1998      December 31,
                                                                                                  (Unaudited)       1997
Assets held for sale/Property, at cost (Note 8)
<S>                                                                                               <C>                     
  Land .......................................................................................    $            $ 1,242,061
                                                                                                                
  Buildings and improvements .................................................................          --        6,063,055
  Equipment, furnishings and fixtures ........................................................          --          642,239
                                                                                                 -----------    -----------

                                                                                                        --        7,947,355
  Less accumulated depreciation ..............................................................          --       (2,152,207)
                                                                                                 -----------    -----------

                                                                                                        --        5,795,148

Cash and cash equivalents ....................................................................   $ 3,474,912        421,580
Real estate tax escrows ......................................................................          --           24,037
Deposits and prepaid expenses ................................................................        89,116        133,285
Accounts receivable ..........................................................................         4,601          1,400
Deferred expenses, net of accumulated
  amortization of $208,788 and $205,147 ......................................................          --            7,888
                                                                                                 -----------    -----------

         Total assets ........................................................................   $ 3,568,629    $ 6,383,338
                                                                                                 ===========    ===========

                   LIABILITIES AND PARTNERS' EQUITY (DEFICIT)

Mortgage notes payable .......................................................................          --      $ 3,058,800
Accounts payable .............................................................................   $    13,075         83,637
Accrued expenses .............................................................................        15,073        131,588
Due to affiliates (Note 7) ...................................................................         7,160         16,076
Rents received in advance ....................................................................          --            1,984
Tenant security deposits .....................................................................          --           33,555
                                                                                                 -----------    -----------

         Total liabilities ...................................................................        35,308      3,325,640


General Partners' deficit ....................................................................      (120,229)      (127,847)
Limited Partners' equity .....................................................................     3,653,551      3,185,545
                                                                                                 -----------    -----------

        Total liabilities and partners' ......................................................   $ 3,568,629    $ 6,383,338
equity
                                                                                                 ===========    ===========



                           CLUSTER HOUSING PROPERTIES
                       (a California Limited Partnership)
                                AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS

                                  -------------


                                                                                 Three Months Ended             Six Months Ended
                                                                                          June 30,                    June 30,
                                                                                    1998           1997           1998          1997
                                                                             -----------    -----------    -----------   -----------
Revenue:
<S>                                                                          <C>            <C>            <C>           <C>        
<S>                                                                          <C>            <C>            <C>           <C>        
   Rental income ..........................................................  $   152,747    $   626,048    $   414,612   $ 1,283,865
   Interest income ........................................................       17,252          9,705         22,229        20,602
   Gain from sale of properties ...........................................         --             --          452,214          --
                                                                             -----------    -----------    -----------   -----------


Total Revenue .............................................................      169,999        635,753        889,055     1,304,467

Expenses:
   Operations .............................................................       81,058        303,530        182,661       583,589
   Interest expense .......................................................       47,713        194,180        117,384       389,182
   Depreciation and amortization ..........................................        4,248        107,781          7,888       215,561
   General and administrative .............................................       44,963         73,908        105,498       116,142

                                                                                -----------   -----------  -----------   -----------
Total Expenses ............................................................      177,982        679,399        413,431     1,304,474
                                                                              -----------    -----------   -----------   -----------

Net income (loss) ........................................................  ($    7,983)   ($   43,646)   $   475,624   ($        7)
                                                                             ===========    ===========    ===========   ===========

Net income (loss) allocated to:
  General Partners ........................................................ ($       80)   ($      436)   $     7,618   ($        0)

  Basic and diluted per unit Net income (loss)
allocated to
    Investor Limited Partner interest:
       32,421 units issued ................................................ ($     0.24)   ($     1.33)   $     14.44   ($     0.00)




<PAGE>













                           CLUSTER HOUSING PROPERTIES
                       (a California Limited Partnership)
                                AND SUBSIDIARIES

              CONSOLIDATED STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

                                                  -------------


                                                                                     Investor           Total
                                                                      General        Limited          Partners'
                                                                     Partners        Partners           Equity

<S>                                                                  <C>             <C>               <C>       
Balance at December 31, 1996                                          ($192,294)      $6,896,994        $6,704,700

Cash distributions                                                      (15,358)     (5,641,254)       (5,656,612)

Net loss                                                                  79,805       1,929,805         2,009,610
                                                                   -------------- ---------------   ---------------

Balance at December 31, 1997                                           (127,847)       3,185,545         3,057,698

Cash distributions                                                       -              -                 -

Net income                                                                 7,618         468,006           475,624
                                                                   -------------- ---------------   ---------------

Balance at June 30, 1998                                              ($120,229)      $3,653,551        $3,533,321
                                                                   ============== ===============   ===============







<PAGE>




                           CLUSTER HOUSING PROPERTIES
                       (a California Limited Partnership)
                                AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                                            Six Months
                                                                              Ended
                                                                             June 30,
Cash flows from operating activities:                                  1998            1997
                                                                       ----            ----
<S>                                                                      <C>             <C>    
  Interest received                                                      $22,229         $20,602
  Cash received from rental income                                       379,073       1,285,810
  General and administrative expenses                                  (129,440)       (163,735)
  Operations expense                                                   (321,707)       (658,424)
  Interest paid                                                        (129,014)       (389,182)
                                                                   -------------- ---------------
Net cash provided by operating activities                              (178,859)          95,071

Cash flows from investing activities:
  Proceeds from sale of properties                                     6,608,653        -
  Capital improvements                                                 (361,293)       (121,648)
  Deposit with escrow agent                                               42,297        -
                                                                   -------------- ---------------

Net cash provided by investing activities                              6,289,657       (121,648)

Cash flows from financing activities:
  Distributions to partners                                              -             (194,526)
  Deposits                                                                 1,335        -
  Principal payments on mortgage notes payable                       (3,058,800)        (72,432)
                                                                   -------------- ---------------

Net cash used by financing activities                                (3,057,465)       (266,958)
                                                                   -------------- ---------------

Net increase (decrease) in cash and cash                               3,053,332       (293,535)
equivalents

Cash and cash equivalents at beginning of  the                           421,580       1,065,855
period
                                                                   -------------- ---------------

Cash and cash equivalents at end of the period                        $3,474,912        $772,320
                                                                   ============== ===============






<PAGE>




                           CLUSTER HOUSING PROPERTIES
                       (a California Limited Partnership)
                                AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                  -------------


Reconciliation   of  net  income  (loss)  to  net  cash  provided  by  operating
activities:

                                                                            Six Months
                                                                              Ended
                                                                              June 30,
                                                                       1998            1997
<S>                                                                     <C>                 <C> 
Net income (loss)                                                       $475,624            ($7)

Adjustments to reconcile net income (loss) to net
cash
  provided by operating activities:
  Depreciation and amortization                                            7,888         215,561
  Gain from sale of property                                           (452,214)           -
Change in assets  and  liabilities  net of effects of  investing  and  financing
activities:
    Decrease (increase) in real estate tax escrows                        24,037        (54,013)
    Decrease prepaid expenses                                                537           -
    Decrease (increase) in accounts receivable                           (3,201)           1,190
    Decrease in accounts payable and accrued                           (187,075)        (62,762)
expenses
    Decrease in due to affiliates                                        (8,916)         (6,843)
    Decrease in rent received in advance                                 (1,984)         (4,730)
    (Decrease) increase in tenant security                              (33,555)           6,675
deposits
                                                                   -------------- ---------------

Net cash provided by operating activities                             ($178,859)         $95,071
                                                                   ============== ==================

</TABLE>


<PAGE>


                           CLUSTER HOUSING PROPERTIES
                       (A California Limited Partnership)
                                AND SUBSIDIARIES

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


                                                                 

1.  Organization of Partnership:

Cluster   Housing   Properties   (a   California   Limited   Partnership)   (the
"Partnership"),  formerly Berry and Boyle Cluster Housing Properties, was formed
on August  8,  1983.  The  Partnership  issued  all of the  General  Partnership
Interests  to three  General  Partners  in exchange  for  capital  contributions
aggregating  $2,000.  Stephen B. Boyle and GP L'Auberge  Communities,  L.P.,  (a
California Limited  Partnership),  formerly Berry and Boyle Management,  are the
General  Partners.  In  September,  1995,  with the consent of Limited  Partners
holding a  majority  of the  outstanding  Units,  as well as the  consent of the
mortgage  lenders  for the  Partnership's  three  properties,  Richard  G. Berry
resigned as a general partner of the Partnership.

A  total  of  2,000  individual   Limited  Partners  owning  32,421  units  have
contributed  $16,210,500  of capital to the  Partnership.  At June 30, 1998, the
total  number of  Limited  Partners  was 1,902.  Except  under  certain  limited
circumstances, as defined in the Partnership Agreement, the General Partners are
not required to make any additional capital contributions.  The General Partners
or their affiliates will receive various fees for services and reimbursement for
various organizational and selling costs incurred on behalf of the Partnership.

The Partnership will continue until December 31, 2010, unless terminated earlier
by the sale of all, or substantially  all, of the assets of the Partnership,  or
otherwise in accordance  with the  provisions  of Section 16 of the  Partnership
Agreement.  The Partnership has sold  substantially  all of the assets and is in
its final liquidation. Once all Partnership obligations have been satisfied, the
remaining  Partnership  funds,  if any, are anticipated to be distributed to the
Limited Partners. Such funds, if any, are expected to be modest in amount. It is
anticipated that the Partnership will be wound up by December 31, 1998.

2.  Significant Accounting Policies:

         A.  Basis of Presentation

         The  consolidated  financial  statements  include  the  accounts of the
         Partnership and its subsidiaries:  Sin Vacas Joint Venture (Sin Vacas),
         Autumn  Ridge Joint  Venture  (Autumn  Ridge) and Villa  Antigua  Joint
         Venture (Villa  Antigua).  All  intercompany  accounts and transactions
         have been  eliminated in  consolidation.  The  Partnership  follows the
         accrual basis of accounting.  Refer to Note 4 regarding the termination
         of the Joint  Ventures and the sale of Villas Sin Vacas,  Villa Antigua
         and Pinecliff.

         B.  Cash and Cash Equivalents

         The Partnership  considers all highly liquid debt instruments purchased
         with a maturity  of three  months or less to be cash  equivalents.  The
         carrying value of cash and cash equivalents approximates fair value. It
         is  the  Partnership's   policy  to  invest  cash  in  income-producing
         temporary cash  investments.  The  Partnership  mitigates any potential
         risk from such concentration of credit by placing investments with high
         quality financial institutions.

         C. Significant Risks and Uncertainties

         The  preparation of financial  statements in conformity  with generally
         accepted  accounting  principles  requires management to make estimates
         and  assumptions  that  affect  the  reported  amounts  of  assets  and
         liabilities and disclosure of contingent  assets and liabilities at the
         date of the financial  statements and the reported  amounts of revenues
         and expenses during the reporting  period.  Actual results could differ
         from those estimates.
2.  Significant Accounting Policies, continued:

         D.  Depreciation

         Depreciation  is provided  for by the use of the  straight-line  method
         over estimated useful lives as follows:

             Buildings and improvements                             39-40 years
             Equipment, furnishings and fixtures                     5-15 years

         E.  Deferred Expenses

         Costs of obtaining or extending  mortgages on the  properties are being
         amortized over the mortgage term using the straight-line  method, which
         approximates the effective interest method. Fees paid to certain of the
         property  developers  were  amortized  over  the  term of the  services
         provided  using  the  straight-line   method.   Any  unamortized  costs
         remaining  at the date of a  refinancing  are  expensed  in the year of
         refinancing.

         F.  Income Taxes

         The Partnership is not liable for Federal or state income taxes because
         Partnership  income or loss is allocated to the Partners for income tax
         purposes. If the Partnership's tax returns are examined by the Internal
         Revenue  Service  or state  taxing  authority  and such an  examination
         results in a change in Partnership  taxable income (loss),  such change
         will be reported to the Partners.

         G. Rental Income

         Leases require the payment of rent in advance;  however,  rental income
         is recorded as earned.

         H. Long-Lived Assets

         In 1996,  the  Partnership  adopted  Statement of Financial  Accounting
         Standards  No.  121  (SFAS  121),  "Accounting  for the  Impairment  of
         Long-Lived Assets to be Disposed of." SFAS 121 requires that long-lived
         assets  be  reviewed  for  impairment  whenever  events or  changes  in
         circumstances   indicate   that  their   carrying   value  may  not  be
         recoverable. The adoption of SFAS 121 had no effect on reported results
         in 1996.  As of the year  ended  December  31,  1997,  the  Partnership
         recorded  the assets at the lower of carrying  value or net  realizable
         value and has included these amounts as Assets Held for Sale.

         I.  New Accounting Standards

         In 1997,  the  Partnership  adopted  Statement of Financial  Accounting
         Standards  No. 128 (SFAS 128),  "Earnings  Per Share." This  accounting
         standard  specifies  new  computation,   presentation,  and  disclosure
         requirements for earnings per share to be applied retroactively.  Among
         other  things,  SFAS 128  requires  presentation  of basic and  diluted
         earnings per share on the face of the income statement. The computation
         of basic and diluted  earnings per share was based on income  available
         to the Limited Partners divided by the weighted average number of units
         outstanding  during the period.  The  Partnership  has no dilutive type
         securities.  The  adoption  of SFAS 128 had no  effect  on the per unit
         results previously reported.


<PAGE>


3.  Cash and Cash Equivalents:

Cash and cash  equivalents  at June 30, 1998 and December 31, 1997  consisted of
the following:

                                                        June 30,    December 31,
                                                           1998          1997
                                                           ----          ----
         Cash on hand                                $   219,585      $ 132,330
         Money market accounts                         3,142,202        289,250
                                                       ---------        -------
                                                      $3,474,912       $421,580

4.  Joint Venture and Property Acquisitions:

The  Partnership  has invested in three  properties  located in  Scottsdale  and
Tucson,  Arizona and Colorado Springs,  Colorado. The success of the Partnership
will  depend upon  factors  which are  difficult  to predict  including  general
economic and real estate market conditions,  both on a national basis and in the
areas where the Partnership's  investments are located.  The Partnership holds a
majority  interest in these  properties and controls the operations of the joint
ventures.

Villas Sin Vacas

On October 25, 1985,  the  Partnership  acquired a majority  interest in the Sin
Vacas Joint Venture,  which owns and operates the Villas at Sin Vacas, a 72-unit
residential  property located in Tucson,  Arizona.  Since the Partnership owns a
majority interest in the Sin Vacas Joint Venture, the accounts and operations of
the Sin Vacas Joint Venture have been consolidated into the Partnership.

The co-venture  partner was an affiliate of Evans Withycombe,  Inc.  ("EWI"),  a
Phoenix based residential development,  construction and management firm. EWI is
also the developer of the Villas Sin Vacas property.

The Partnership made initial cash payments in the form of capital  contributions
totaling $2,458,507 and funded $398,949 of property acquisition costs which were
treated as a capital  contribution  to the joint  venture.  Since  completion of
construction,   the  Partnership  has  made  additional  contributions  totaling
$275,167.  At June 30, 1998,  the total capital  contributions  and  acquisition
costs incurred were $2,713,937 and $418,686, respectively.

JANUARY 1, 1996 THROUGH MAY 13, 1996

Net cash from  operations (as defined in the joint venture  agreement) was to be
distributed as available to each joint venture partner quarterly as follows:

         First,  to the  Partnership,  an  amount  equal  to  8.75%  per  annum,
         noncumulative  (computed daily on a simple noncompounded basis from the
         date of completion funding) of the Partnership's capital investment, as
         defined in the joint venture agreement;

         Second, the balance 70% to the Partnership and 30% to the co-venturer.

All losses from operations and depreciation for the Sin Vacas Joint Venture were
allocated 99% to the Partnership and 1% to the co-venturer.


4.  Joint Venture and Property Acquisitions, continued:

All profits from operations,  to the extent of cash distributions were allocated
to  the  Partnership  and  co-venturer  in  the  same  proportion  as  the  cash
distribution. Any remaining profits are allocated 70% to the Partnership and 30%
to the co-venturer.

In the case of certain capital  transactions and distributions as defined in the
joint venture  agreement,  the  allocation of related  profits,  losses and cash
distributions,  if any, would be different than as described  above and would be
effected by the relative balances in the individual partners' capital accounts.

Villa Antigua

On June 11,  1987,  the  Partnership  acquired a majority  interest in the Villa
Antigua  Joint  Venture,  which  owns and  operates  Villa  Antigua,  an 88-unit
residential property located in Scottsdale,  Arizona. Since the Partnership owns
a majority  interest  in the Villa  Antigua  Joint  Venture,  the  accounts  and
operations of the Villa Antigua  Joint Venture have been  consolidated  into the
Partnership.

The co-venture  partner was an affiliate of Evans Withycombe,  Inc.  ("EWI"),  a
Phoenix based residential development,  construction and management firm. EWI is
also the developer of the Villa Antigua property.

The Partnership made initial cash payments in the form of capital  contributions
totaling $2,494,677 and funded $381,729 of property acquisition costs which were
treated as a capital  contribution  to the Villa  Antigua Joint  Venture.  Since
completion of  construction,  the Partnership has made additional  contributions
totaling  $85,440.  At June  30,  1998,  the  total  capital  contributions  and
acquisition costs incurred were $2,580,117 and $381,729, respectively.

JANUARY 1, 1996 THROUGH MAY 13, 1996

Net cash from  operations (as defined in the joint venture  agreement) was to be
distributed as available to each joint venture partner quarterly as follows:

         First,  to  the  Partnership,   an  amount  equal  to  10%  per  annum,
         noncumulative  (computed daily on a simple noncompounded basis from the
         date of  completion  funding)  of the  Partnership's  adjusted  capital
         investment, as defined in the joint venture agreement;

Second, the balance 70% to the Partnership and 30% to the co-venturer.

All losses from operations and  depreciation for the Villa Antigua Joint Venture
were allocated 99% to the Partnership and 1% to the co-venturer.

All profits from operations, to the extent of cash distributions, were allocated
to  the  Partnership  and  co-venturer  in  the  same  proportion  as  the  cash
distributions; however, if for any taxable year there are no cash distributions,
profits are allocated 99% to the Partnership and 1% to the co-venturer.

In the case of certain capital  transactions and distributions as defined in the
joint venture  agreement,  the  allocation of related  profits,  losses and cash
distributions,  if any, would be different than as described  above and would be
affected by the relative balances in the individual partners' capital accounts.


<PAGE>

4.Joint Venture and Property Acquisitions, continued:


Sin Vacas and Villa Antigua

MAY 14, 1996 THROUGH NOVEMBER 25, 1997

On May 14, 1996, the Partnership and certain affiliates consummated an agreement
with Evans  Withycombe  Management,  Inc. and certain of its affiliates  ("EWI")
which  separated the interests of EWI and the  Partnership,  thus  affording the
Partnership  greater  flexibility  in  the  operation  and  disposition  of  the
properties.  In  consideration of a payment by the Partnership to EWI of $73,775
and delivery of certain mutual  releases,  EWI (i)  relinquished its contract to
manage  Sin Vacas and Villa  Antigua  and its option to  exercise  its rights of
first refusal with regard to the sale of those  properties and (ii) assigned all
of its  interest in the Sin Vacas  Joint  Venture  and the Villa  Antigua  Joint
Venture to the  Partnership  (while  preserving  the  economic  interests of the
venturer in these Joint Ventures),  which resulted in the dissolution of the Sin
Vacas Joint Venture and the Villa Antigua Joint Venture.  EWI may still share in
the cash flow  distributions  or proceeds from sale of the properties if certain
performance levels are met.

On November 25, 1997,  Villa Sin Vacas was sold  pursuant to the terms of a Sale
Agreement  and escrow  Instructions  (the  "Agreement")  dated May 6,  1997,  as
amended. Villas Sin Vacas was sold to Villas Sin Vacas Townhome Ventures Limited
Partnership,  an Arizona Limited Partnership  unaffiliated with the Partnership,
the assignee of Capital Management  Systems,  Inc., a Pennsylvania  Corporation.
The net  selling  price for Villas Sin Vacas was  $4,952,091  subject to certain
customary  adjustments.  The Partnership  repaid first mortgage financing in the
amount of $2,396,000  at closing  utilizing a portion of proceeds from the sale.
The Partnership recorded a gain on sale of approximately $975,000.

On October 10,  1997,  Villa  Antigua  was sold  pursuant to the terms of a Sale
Agreement  and escrow  Instructions  (the  "Agreement")  dated May 6,  1997,  as
amended.  Villa  Antigua  was sold to Villa  Sin  Antigua  Condominium  Ventures
Limited  Partnership,  an  Arizona  Limited  Partnership  unaffiliated  with the
Partnership,  the assignee of Capital Management  Systems,  Inc., a Pennsylvania
Corporation.  The net selling price for Villa Antigua was $6,141,526  subject to
certain customary  adjustments.  The Partnership repaid first mortgage financing
in the amount of $3,010,362 at closing  utilizing a portion of proceeds from the
sale. The Partnership recorded a gain on sale of approximately $1,307,000.

Pinecliff

On July 16, 1986, the Partnership  acquired Pinecliff (formerly Autumn Ridge), a
96-unit  residential   property  located  in  Colorado  Springs,   Colorado  and
simultaneously  contributed  the  property  to the Autumn  Ridge  Joint  Venture
comprised of the Partnership and an affiliate of the property  developer.  Since
the Partnership owns a majority interest in the Autumn Ridge Joint Venture,  the
accounts and operations of the Autumn Ridge Joint Venture have been consolidated
into the Partnership.

The co-venture partner was Highland Properties, Inc. ("Highland") a Colorado
based residential development, construction and management firm.  Highland 
developed the property known as L'Auberge Pinecliff.

The Partnership made initial cash payments in the form of capital  contributions
totaling $3,819,397 and funded $546,576 of property acquisition costs which were
treated as a capital  contribution  to the Autumn  Ridge  Joint  Venture.  Since
completion of  construction,  the Partnership has made additional  contributions
totaling $318,811.


4.Joint Venture and Property Acquisitions, continued:


JANUARY 1, 1996 THROUGH JULY 2, 1996:

Net cash from  operations (as defined in the joint venture  agreement) was to be
distributed as available to each joint venture partner quarterly as follows:

         First,  to  the   Partnership,   an  amount  equal  to  8%  per  annum,
         noncumulative  (computed daily on a simple noncompounded basis from the
         date of completion funding) of the Partnership's capital investment, as
         defined in the joint venture agreement;

         Second, the balance 82% to the Partnership and 18% to the co-venturer.

All losses from operations and  depreciation  for the Autumn Ridge Joint Venture
were allocated 100% to the Partnership.

All profits from operations, to the extent of cash distributions, were allocated
to  the  Partnership  and  co-venturer  in  the  same  proportion  as  the  cash
distribution. Any remaining profits are allocated 82% to the Partnership and 18%
to the co-venturer.

In the case of certain capital  transactions and distributions as defined in the
joint venture  agreement,  the  allocation of related  profits,  losses and cash
distributions,  if any, would be different than as described  above and would be
affected by the relative balances in the individual partners' capital accounts.

JULY 3, 1996 THROUGH MAY 28, 1998

On July 3, 1996, the Partnership and certain affiliates consummated an agreement
with Highland  Properties,  Inc.  ("Highland")  which separated the interests of
Highland and the Partnership, thus affording the Partnership greater flexibility
in the operation and disposition of the property.  In consideration of a payment
by the Partnership to Highland  totaling $7,718,  and delivery of certain mutual
releases,  Highland (i)  relinquished its option to exercise its rights of first
refusal  with regard to the sale of the  property  and (ii)  assigned all of its
interest in the L'Auberge  Pinecliff  Joint Venture to the  Partnership,  (while
preserving  the economic  interests  of the  venturer in these Joint  Ventures),
which  resulted in the  dissolution  of the L'Auberge  Pinecliff  Joint Venture.
Highland may still share in the cash flow distributions or proceeds from sale of
the properties if certain performance levels are met.

On May 28, 1998, the Partnership sold its final real estate asset. Pinecliff was
sold to G&I Pinecliff LLC, a Delaware  limited  liability  company  unaffiliated
with the Partnership.  The purchase price for Pinecliff was $6,700,000,  subject
to certain  customary  adjustments and a $360,000  credit to the purchaser.  The
Partnership repaid mortgage financing in the approximate amount of $3,041,860 at
closing utilizing a portion of proceeds from the sale. The Partnership  realized
net proceeds of approximately $3,145,390 from the sale of Pinecliff.

Subsequently,  on August 5, 1998, the Partnership  distributed the sale proceeds
from  Pinecliff  to the  limited  partners.  The total  amount  distributed  was
$3,242,100,000 or $100 per interest.


<PAGE>




5.    Mortgage Notes Payable:

Pinecliff
The original  maturity date for these notes was July 15, 1997. On July 10, 1997,
the lender  extended  the terms of the  mortgage  note for a period of one year.
Under the modification agreement,  the monthly principal and interest payment of
$27,976 and the original interest rate of 9.125% remained  unchanged.  The terms
of the  agreement  provide for a prepayment  penalty of 0.5% of the  outstanding
loan  amount in the event the note is paid  prior to 60 days  before it  becomes
due. As discussed in Note 4, the Partnership  sold Pinecliff and the outstanding
mortgage debt of $3,041,860 was paid.  There was no prepayment  penalty assessed
since the debt was paid within 60 days of maturity.

The  property  owned  by the  Partnership  was  pledged  as  collateral  for the
nonrecourse   mortgage  notes  payable  outstanding  December  31,  1997,  which
consisted of the following:

                                                   1998                  1997
                                                   ----                  ----

         Pinecliff                        $         -                $3,058,800


6.  Partners' Equity:

Under the terms of the  Partnership  Agreement  profits are allocated 95% to the
Limited Partners and 5% to the General Partners; losses are allocated 99% to the
Limited Partners and 1% to the General Partners.

Cash distributions to the partners are governed by the Partnership Agreement and
are made,  to the extent  available,  95% to the Limited  Partners and 5% to the
General Partners.

Gain  from  the  sale  of  properties  is to be  allocated  as  defined  in  the
Partnership  Agreement.  The net  proceeds on the sale of Pinecliff of $3.1 were
allocated  as  follows.   The  Limited  Partners   received  100%  of  the  cash
distribution  from sale.  The total gain on sale of  Pinecliff  of $452,200  was
allocated as follows.  The General Partner received a gain on sale allocation of
approximately $6,450 and the Limited Partners received a gain on sale allocation
of approximately $445,750.  These  distributions/allocations  were in accordance
with the terms of the Partnership Agreement.

7.  Related-Party Transactions:

L'Auberge Communities, Inc. is a General Partner of L'Auberge Communities, which
owns a 99% interest in GP L'Auberge Communities,  L.P. (formerly Berry and Boyle
Management).  Due to affiliates at June 30, 1998 and December 31, 1997 consisted
of reimbursable  costs payable to L'Auberge  Communities,  Inc., an affiliate of
the General Partners, in the amounts of $7,160 and $16,076, respectively.

For the period ended June 30, 1998 and 1997, general and administrative expenses
included $32,386, and $26,870,  respectively,  of salary  reimbursements paid to
the General  Partners for certain  administrative  and accounting  personnel who
performed services for the Partnership.




<PAGE>


17

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

Liquidity and Capital Resources

At June 30, 1998, the  Partnership  had cash and cash  equivalents of $3,474,912
compared  with  $421,580 at December 31,  1997.  The  aggregate  net increase of
$3,053,332  resulted  primarily  from  proceeds  from the sale of  Pinecliff  of
$6,608,653,  plus $42,297 received from the escrow agent relating to the sale of
Villa  Sin  Vacas,  plus a refund of  deposits  of  $1,335  offset by  principal
payments on the mortgage  notes payable of  $3,058,800,  and the cash needed for
operations of $178,859, and purchase of fixed assets of $361,293.

Subsequently,  on August 5, 1998, the Partnership  distributed the sale proceeds
from  Pinecliff  to the  limited  partners.  The total  amount  distributed  was
$3,242,100,000 or $100 per interest.

Property Status

On May 28, 1998, the Partnership sold its final real estate asset,  Pinecliff, a
96-unit  multi-family rental property in Colorado Springs,  Colorado.  Pinecliff
was sold to G&I Pinecliff LLC, a Delaware limited liability company unaffiliated
with the Partnership.  The purchase price for Pinecliff was $6,700,000,  subject
to certain  customary  adjustments and a $360,000  credit to the purchaser.  The
Partnership repaid mortgage financing in the approximate amount of $3,041,860 at
closing utilizing a portion of proceeds from the sale. The Partnership  realized
net proceeds of approximately $3,145,390 from the sale of Pinecliff.

During the fourth  quarter of 1997, the  Partnership  sold two  properties:  (1)
Villas at Sin Vacas, a 72-unit  multifamily rental property in Tucson,  Arizona,
which was sold in November 1997; and (2) Villa Antigua,  an 88-unit  multifamily
rental  property in  Scottsdale,  Arizona,  which was sold in October 1997.  The
ownership of each  property was formerly  structured as a Joint Venture in which
the Partnership owned a majority interest. With regard to the termination of the
Joint Ventures and the sales of properties,  see Note 4 of Notes to Consolidated
Financial Statements.

Results of Operations

For the three months ended June 30, 1998,  the  Partnership's
operating  results were  comprised of its share of the income and expenses  from
Pinecliff , as well as partnership  level  interest  income earned on short term
investments,  reduced by administrative  expenses.  A summary of these operating
results appears below.
<TABLE>

                                                      L'Auberge    Investment   Consolidated
                                                      Pinecliff    Partnership      Total
<S>                                                   <C>         <C>          <C>      
Total revenue .....................................   $ 154,740   $  15,259    $ 169,999

Expenses:
  General and administrative ......................        --        44,963       44,963
  Operations ......................................      79,839       1,219       81,058
  Depreciation and amortization ...................       4,248        --          4,248
  Interest ........................................      47,713        --         47,713
                                                      ---------   ---------    ---------
                                                        131,800      46,182      177,982
                                                      ---------   ---------    ---------
Net loss   ........................................   $  22,940   ($ 30,923)   ($  7,983)

Gain from sale of property                              452,214                  452,214
                                                     ----------   ---------    ----------
Net income                                             $475,154    ($30,923)    $444,231
                                                     ==========   ==========   ===========
                                                     



For the three months  ended June 30, 1997 the  Partnership's  operating  results
were  comprised  of its share of the  income  and  expenses  from the Sin Vacas,
Pinecliff and Villa Antigua, as well as partnership level interest income earned
on short term  investments,  reduced by  administrative  expenses.  A summary of
these operating results appears below.

                                             Sin        L'Auberge       Villa   Investment   Consolidated
                                             Vacas      Pinecliff     Antigua   Partnership      Total
<S>                                         <C>          <C>         <C>         <C>          <C>      
Total revenue ...........................   $ 173,400    $ 247,148   $ 206,203   $   9,002    $ 635,753

Expenses:
  General and administrative ............      73,908       73,908
  Operations ............................      91,907      115,327      96,296     303,530
  Depreciation and amortization .........      31,670       45,450      30,661     107,781
  Interest ..............................      55,098       70,611      68,471     194,180
                                            ---------    ---------   ---------   ---------    ---------
                                              178,675      231,388     195,428      73,908      679,399
                                            ---------    ---------   ---------   ---------    ---------
Net loss   ..............................   ($  5,275)   $  15,760   $  10,775   ($ 64,906)   ($ 43,646)
                                            =========    =========   =========   =========    =========


For the six months ended June 30, 1998 the Partnership's  operating results were
comprised of its share of the income and  expenses  from  Pinecliff,  as well as
partnership level interest income earned on short term  investments,  reduced by
administrative expenses. A summary of these operating results appears below.

                                           L'Auberge        Investment       Consolidated
                                           Pinecliff        Partnership          Total
<S>                                           <C>                  <C>            <C>     
Total revenue                                 $418,001             $18,840        $436,841

Expenses:
  General and administrative                      -                105,498         105,498
  Operations                                   181,377               1,284         182,661
  Depreciation and amortization                  7,888               -               7,888
  Interest                                     117,384               -             117,384
                                         --------------     ---------------  --------------
                                               306,649             106,782         413,431
                                         --------------     ---------------  --------------
Net loss from operations                       111,352            (87,942)          23,410
                                         --------------     ---------------  --------------
Gain from sale of property                     452,214                             452,214
                                         --------------     ---------------  --------------
Net income                                    $563,566           ($87,942)        $475,624
                                         ==============     ===============  ==============




<PAGE>


For the six months ended June 30, 1997, the Partnership's operating results were
comprised of its share of the income and expenses from the Sin Vacas,  Pinecliff
and Villa Antigua,  as well as partnership level interest income earned on short
term  investments,  reduced  by  administrative  expenses.  A  summary  of these
operating results appears below.

                                                  Sin        L'Auberge         Villa    Investment    Consolidated
                                                 Vacas       Pinecliff       Antigua   Partnership          Total
<S>                                           <C>           <C>           <C>           <C>            <C>        
Total revenue .............................   $   358,472   $   482,174   $   444,376   $    19,445    $ 1,304,467

Expenses:
  General and administrative ..............       116,142       116,142
  Operations ..............................       178,869       217,148       187,554            18        583,589
  Depreciation and amortization ...........        63,339        90,901        61,321       215,561
  Interest ................................       110,429       141,521       137,232       389,182
                                              -----------   -----------   -----------   -----------    -----------
                                                  352,637       449,570       386,107       116,160      1,304,474
                                              -----------   -----------   -----------   -----------    -----------
Net loss   ................................   $     5,835   $    32,604   $    58,269   ($   96,715)   ($        7)
                                              ===========   ===========   ===========   ===========    ===========

</TABLE>


Comparison of Operating Results for the Six Months Ended June 30, 1998 and 1997:

Partnership  operations  for the six months  ended June 30, 1998  generated  net
income of $475,624 compared with net loss of $7 for the corresponding  period in
1997.  Included  in the net  income  of  $475,624  is the  gain  on the  sale of
Pinecliff in the amount of $452,214. The income from operations was $23,410. The
total revenue decreased by $867,626 or 67%, due to the fact that Villa Sin Vacas
and Villa Antigua were sold in the fourth quarter of 1997and  Pinecliff was sold
in May 1998. Likewise,  operating expenses decreased in total by $400,928 or 69%
due to the sales of the  properties.  General and  administrative  expenses have
decreased by $10,644 or 10%, due primarily to lower legal expenses.


<PAGE>



                            PART II-OTHER INFORMATION


ITEM 1.  Legal Proceedings
         Response:  None

ITEM 2.  Changes in Securities
         Response:  None

ITEM 3.  Defaults Upon Senior Securities
         Response:  None

ITEM 4.  Submission of Matters to a Vote of Security Holders
         Response:  None

ITEM 5.  Other Information
         Response:  None

ITEM 6.  Exhibits and Reports on Form 8-K
          (A.)  Exhibit - None
          (B.) Report on Form 8-K,  Item 2, dated October 10, 1997 filed October
          23, 1997 (C.) Report on Form 8-K,  Item2,  dated May 28, 1998 filed on
          June 10, 1998.



                                   SIGNATURES


         Pursuant to the  requirements  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.



                CLUSTER HOUSING PROPERTIES

                By: GP L'Auberge Communities, L.P., a California
                      Limited Partnership, General Partner

                   By:  L'Auberge Communities, Inc., its General Partner


                    By: __/s/ Stephen B. Boyle_________________________________
                        Stephen B. Boyle, President


                Date: August 14, 1998