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, 1997

                                       OR

          [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

      For the transition period from __________________ to ________________

                           Commission File No. 0-13556

                           Cluster Housing Properties
                       (A California Limited Partnership)

             (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) 576-5122

              (Registrant's telephone number, including area code)

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>

<TABLE>





                           CLUSTER HOUSING PROPERTIES
                       (a California Limited Partnership)
                                AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

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

                                     ASSETS
                                                                                  June 30,
                                                                                   1997          December 31,
                                                                                (Unaudited)          1996
Property, at cost:
<S>                                                                               <C>               <C>       
  Land                                                                            $3,677,028        $3,677,028
  Buildings and improvements                                                      14,067,756        14,067,757
  Equipment, furnishings and fixtures                                              1,698,484         1,576,836
                                                                               --------------   ---------------

                                                                                  19,443,268        19,321,621
  Less accumulated depreciation                                                  (5,006,424)       (4,810,314)
                                                                               --------------   ---------------

                                                                                  14,436,844        14,511,307

Cash and cash equivalents                                                            772,320         1,065,855
Real estate tax escrows                                                               95,645            41,632
Deposits                                                                               4,010             3,818
Accounts receivable                                                                    1,415             2,605
Deferred expenses, net of
accumulated amortization of $194,491 and $175,041                                      -                 19,450
                                                                               --------------   ---------------

         Total assets                                                            $15,310,234       $15,644,667
                                                                               ==============   ===============

                                        LIABILITIES AND PARTNERS' EQUITY

<S>                                                                               <C>               <C>       
Mortgage notes payable                                                            $8,487,499        $8,559,930
Accounts payable                                                                      40,357           115,410
Accrued expenses                                                                     208,084           195,794
Due to affiliates (Note 7)                                                             2,132             8,975
Rents received in advance                                                               -                4,538
Tenant security deposits                                                              61,995            55,320
                                                                               --------------   ---------------

         Total liabilities                                                         8,800,067         8,939,967


General Partners equity                                                            (192,294)         (192,294)
Limited Partners equity                                                            6,702,461         6,896,994
                                                                               --------------   ---------------

        Total liabilities and partners' equity                                   $15,310,234       $15,644,667
                                                                               ==============   ===============



<PAGE>




                                           CLUSTER HOUSING PROPERTIES
                                       (a California Limited Partnership)
                                                AND SUBSIDIARIES

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

                                                      Three Months Ended             Six Months Ended
                                                           June 30,                       June 30,
                                                   1997             1996           1997              1996
                                                   ----             ----           ----              ----
Revenue:
<S>                                                <C>              <C>           <C>               <C>       
   Rental income                                   $626,048         $675,625      $1,283,865        $1,368,048
   Interest Income                                    9,705           16,131          20,602            32,934
                                                ------------    -------------  --------------   ---------------

Total Revenue                                       635,753          691,756       1,304,467         1,400,982

Expenses:
   Operations                                       303,530          303,735         583,589           573,582
   Interest expense                                 194,180          197,363         389,182           395,476
   Depreciation and amortization                    107,781          108,078         215,561           208,707
   General and administrative                        73,908          135,263         116,142           208,125
                                                ------------    -------------  --------------   ---------------

Total Expenses                                      679,399          744,439       1,304,474         1,385,890
                                                ------------    -------------  --------------   ---------------

Net income (loss)                                 ($43,646)        ($52,683)            ($7)           $15,092
                                                ============    =============  ==============   ===============

Net income (loss) allocated to:
  General Partners                                   ($436)           ($527)            ($0)              $755

Per unit Net income (loss)
allocated to Investor Limited Partner
interest:    32,421 units issued                    ($1.33)          ($1.61)         ($0.00)             $0.44




<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, 1995                                      ($170,140)      $7,461,041        $7,290,901

Minority interest absorbed                                               -           (8,895)           (8,895)

Cash distributions                                                  (20,476)       (389,052)         (409,528)

Net Income                                                           (1,678)       (166,100)         (167,778)
                                                                -------------  --------------   ---------------

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

Cash distributions                                                       -         (194,526)         (194,526)

Net income                                                               (0)             (7)               (7)
                                                                -------------  --------------   ---------------

Balance at  June 30, 1997                                           ($192,294)      $6,702,461        $6,510,167

                                                                =============  ==============   ===============




<PAGE>




                                           CLUSTER HOUSING PROPERTIES
                                       (a California Limited Partnership)
                                                AND SUBSIDIARIES

                                     CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                                                      Six Months Ended
                                                                                          June 30,
Cash flows from operating                                                          1997              1996
                                                                                   ----              ----
activities:
<S>                                                                                  <C>               <C>    
  Interest received                                                                  $20,602           $53,657
  Cash received from rental income                                                 1,285,810         1,357,008
  General and administrative expenses                                               (163,735)         (246,610)
  Operations expense                                                                (658,424)         (589,136)
  Interest paid                                                                     (389,182)         (395,476)
                                                                               --------------   ---------------

Net cash provided by operating activities                                             95,071           179,443

Cash flows from investing activities:
  Purchase of fixed assets                                                         (121,648)          (56,697)
  Cash received from short-term investments                                            -               161,128
                                                                               --------------   ---------------

Net cash provided by investing activities                                          (121,648)           104,431

Cash flows from financing activities:
  Distributions to partners                                                        (194,526)         (194,526)
  Deposits                                                                              -              (2,125)
  Principal payments on mortgage notes payable                                      (72,432)          (66,136)
                                                                               --------------   ---------------

Net cash used by financing activities                                              (266,958)         (262,787)
                                                                               --------------   ---------------

Net increase (decrease) in cash and cash equivalents                               (293,535)            21,087

Cash and cash equivalents at beginning of  the period                              1,065,855           480,389
                                                                               --------------   ---------------

Cash and cash equivalents at end of the period                                      $772,320          $501,476
                                                                               ==============   ===============




<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,
                                                                                   1997              1996
                                                                                   ----              ----
<S>                                                                                     <C>            <C>    
Net income (loss)                                                                       ($7)           $15,092
Adjustments to reconcile net income (loss) to net cash
  provided by operating activities:
  Depreciation and amortization                                                      215,561           208,707
Change in assets and liabilities net of effects
of investing and financing activities:
    Decrease in real estate tax escrows                                              (54,013)          (66,307)
   (Increase) decrease in accounts and interest receivable                             1,190            18,454
    Increase (decrease) in accounts payable and accrued expenses                     (62,762)           42,401
    Increase (decrease) in due to affiliates                                          (6,843)          (27,864)
    Decrease in rent received in advance                                              (4,730)          (11,267)
    Increase in tenant security deposit                                                6,675               227
                                                                               --------------   ---------------

Net cash provided by operating activities                                            $95,071          $179,443
                                                                               ==============   ===============



</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, 1997, the
total  number of  Limited  Partners  was 1,917.  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 accompanying  consolidated  financial statements present the activity of the
Partnership for the six months ended June, 1997 and 1996.

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.

2.  Significant Accounting Policies:

         A.  Basis of Presentation

         The  consolidated  financial  statements  include  the  accounts of the
         Partnership and its properties: Sin Vacas, Pinecliff and Villa Antigua.
         All  intercompany  accounts and  transactions  have been  eliminated in
         consolidation. The Partnership follows the accrual basis of accounting.

         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.

         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 the mortgages on the properties are being  amortized
         over  the  term  of  the  related  mortgage  notes  payable  using  the
         straight-line  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

         The Partnership's  long-lived assets include property and equipment and
         deferred  expenses.  The Partnership  evaluates  rental  properties for
         impairment when conditions exist which may indicate that it is probable
         that the sum of expected future cash flows  (undiscounted)  from rental
         properties is less than its carrying value. Upon  determination  that a
         permanent  impairment  has occurred,  rental  properties are reduced to
         fair value.  For the year ended December 31, 1996 and the quarter ended
         June 30, 1997, permanent impairment  conditions did not exist at any of
         the Partnership's properties.

3.  Cash and Cash Equivalents:

Cash and cash equivalents at June 30, 1997, and December 31, 1996,  consisted of
the following:


                                                       1997             1996
                                                   ----------         ----------
Cash on hand .............................         $   95,799         $  854,769
Certificate of deposit ...................            211,086
Money market account .....................            676,521            
                                                   ----------        ----------

                                                   $  772,320         $1,065,855


<PAGE>


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.

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 controls
and 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 Villa 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, 1997,  the total capital  contributions  and  acquisition
costs incurred were $2,713,937 and $418,686, respectively.

For the six  months  ended June 30,  1997 and 1996,  Sin Vacas had net income of
$5,835 and a net loss of $17,584, 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.

All profits from operations, to the extent of cash distributions, shall first be
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
controls and 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,  1997,  the  total  capital  contributions  and
acquisition costs were $2,580,117 and $381,729, respectively.

Villa  Antigua had net income of $58,269 and  $122,461  for the six months ended
June, 1997 and 1996, 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, shall first be
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
effected by the relative balances in the individual partners' capital accounts.

Sin Vacas and Villa Antigua

MAY 14, 1996 THROUGH JUNE 30, 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.


<PAGE>


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  controls and 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  $323,811.  At June 30,  1997,  the  total  capital  contributions  and
acquisition costs incurred were $4,192,309 and $497,475, respectively.

For the six months ended June 30, 1997 and 1996,  L'Auberge  Pinecliff had a net
income of $32,604 and $88,700, respectively.

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, shall first be
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 JUNE 30, 1997

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.

The Sin Vacas  Joint  Venture,  the Autumn  Ridge  Joint  Venture  and the Villa
Antigua  Joint  Venture  are  sometimes  collectively  referred to as the "Joint
Ventures".  These joint  ventures  were  effectively  terminated on December 31,
1996. The Partnership has eliminated various minority interests related to these
joint ventures;  as such, the Partnership owns 100% of the underlying  assets at
December 31, 1996.


5.  Mortgage Notes Payable:

All of the property  owned by the  Partnership  is pledged as collateral for the
nonrecourse mortgage notes payable outstanding at June 30, 1997 and December 31,
1996 which consisted of the following:

                                                     1997                1996
                                                  ----------          ----------
Villas at Sin Vacas ....................          $2,408,299          $2,428,851
Pinecliff ..............................           3,086,363           3,112,702
Villa Antigua ..........................           2,992,837           3,018,377
                                                  ----------          ----------

                                                  $8,487,499          $8,559,930
                                                  ==========          ==========

Sin Vacas
On June 30, 1992,  Villas at Sin Vacas  refinanced  its permanent loan using the
proceeds of a new first  mortgage  loan in the amount of  $2,575,000.  Under the
terms of the note, monthly principal and interest payments of $21,830,  based on
a fixed  interest rate of 9.125%,  are required  over the term of the loan.  The
lender has agreed to extend the maturity  date of the note from July 15, 1997 to
July 15, 1998, with the same interest rate.

Pinecliff
On June 30, 1992,  Pinecliff refinanced its permanent loan using the proceeds of
a new first  mortgage loan in the amount of  $3,300,000.  Under the terms of the
note,  monthly  principal and interest payments of $27,976 are required over the
term of the loan,  based on a fixed  interest  rate of  9.125%.  The  lender has
agreed to extend the  maturity  date of the note from July 15,  1997 to July 15,
1998, with the same interest rate.

Villa Antigua
On June 30, 1992, Villa Antigua refinanced its permanent loan using the proceeds
of a new first mortgage loan in the amount of $3,200,000. Under the terms of the
note,  monthly  principal  and  interest  payments of $27,128,  based on a fixed
interest  rate of 9.125%,  are  required  over the term of the loan,  based on a
fixed interest rate of 9.125%. The lender has agreed to extend the maturity date
of the note from July 15, 1997 to July 15, 1998, with the same interest rate.

Interest  accrued at June 30, 1997,  and  December  31,  1996,  consisted of the
following:

                                                          1997              1996
                                                       -------           -------
Villas at Sin Vacas ........................           $ 9,235           $ 9,235
Pinecliff ..................................            11,835            11,835
Villa Antigua ..............................            11,476            11,476
                                                       -------           -------

                                                       $32,546           $32,546
                                                       =======           =======

The  principal   balance  of  the  mortgage  notes  payable   appearing  on  the
consolidated balance sheet approximates the fair value of such notes.

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.

The allocation of the related profits, losses, and distributions,  if any, would
be different  than  described  above in the case of certain events as defined in
the  Partnership  Agreement,  such as the sale of an  investment  property or an
interest in a joint venture partnership.

7.  Related-Party Transactions:

Due to  affiliates  at June 30,  1997,  and  December  31,  1996,  consisted  of
reimbursable  costs payable to L'Auberge  Communities  Inc., an affiliate of the
General Partners, in the amounts of $2,132 and $8,975, respectively.

For the six months  ended June 30,  1997 and 1996,  general  and  administrative
expenses included $26,870 and $39,440,  respectively,  of salary  reimbursements
paid to the General Partners for certain administrative and accounting personnel
who performed services for the Partnership.

The officers and principal shareholders of Evans Withycombe, Inc., the developer
of the Villas at Sin Vacas and Villa Antigua  properties and an affiliate of the
co-venturers of those joint  ventures,  together hold a two and one half percent
cumulative profit or partnership voting interest in LP L'Auberge Communities,  a
California Limited Partnership, formerly Berry and Boyle, which is the principal
limited partner of GP L'Auberge Communities, L.P.

Residential Services - L'Auberge, formerly Berry and Boyle Residential Services,
the property  manager of Pinecliff,  Villas Sin Vacas and Villa  Antigua,  is an
affiliate of the General Partners of the  Partnership.  For the six months ended
June 30, 1997,  property  management  fees of $50,038  were paid to  Residential
Services -  L'Auberge.  For the six months  ending  June 30,  1996,  Residential
Services-L'Auberge  was paid $24,880 for the management of L'Auberge  Pinecliff.
For the  management  of Villa sin Vacas and Villa  Antigua,  $39,440 of property
management fees were paid to Evans  Withycombe,  Inc.,  until the termination of
the Management Agreement on May 15, 1996.

8. Subsequent Event:

On May 6, 1997, the  Partnership  entered into a Purchase and Sales  Agreement (
the "Agreement") to sell Villas Sin Vacas in Tucson, Arizona, and Villa Antigua,
Phase I, in Scottsdale,  Arizona,  to an  unaffiliated  purchaser.  The purchase
price for Villas Sin Vacas is  approximately  $5,040,000  and the purchase price
for Villa  Antigua,  Phase I, is  approximately  $6,248,000.  The  Agreement  is
subject to  completion of customary  due  diligence to the  satisfaction  of the
purchaser,  and the purchaser obtaining a financing  commitment for the purchase
of the property on commercially reasonable terms and conditions. Under the terms
of the  Agreement,  it is  anticipated  that  the  closing  would  occur  within
approximately 3 to 5 months after the date of the Agreement.





<PAGE>



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

Liquidity and Capital Resources

In connection with its  capitalization,  the Partnership  admitted investors who
purchased  a total of  32,421  Units  aggregating  $16,210,500.  These  offering
proceeds,  net of  organizational  and offering  costs of  $2,431,575,  provided
$13,778,925  of net  proceeds to be used for the  purchase  of  income-producing
residential properties, including related fees and expenses, and working capital
reserves.  The Partnership expended $10,410,263 to (i) acquire its joint venture
interests in the Sin Vacas Joint Venture,  the Villa Antigua Joint Venture,  and
the Autumn Ridge Joint  Venture,  (ii) to pay  acquisition  expenses,  including
acquisition fees to one of the General Partners,  and (iii) to pay certain costs
associated  with  the  refinancing  of the  Autumn  Ridge  permanent  loan.  The
Partnership  distributed  $1,731,681  to the  Limited  Partners  as a return  of
capital  resulting from construction cost savings with respect to the Sin Vacas,
Autumn Ridge and Villa Antigua projects and other excess offering proceeds.  The
remaining  net proceeds of  $1,636,981  have been used to establish  initial
working capital reserves sufficient to meet future needs of the Partnership, 
including contributions to the various properties that may be required.
Through June 30, 1997, $373,990 cumulatively was contributed to the properties
for this purpose.

The  working  capital  reserves  of the  Partnership  consist  of cash  and cash
equivalents  and  short-term  investments.  Together  these amounts  provide the
Partnership with the necessary  liquidity to carry on its day-to-day  operations
and to make necessary  contributions to the various joint ventures.  Thus far in
1997, the aggregate net decrease in working capital reserves was $293,535.  This
decrease  resulted  primarily from cash provided by operations of $95,071 offset
by distributions to partners of $194,526,  purchase of fixed assets of $121,648,
and $72,432 of principal payments on mortgage notes payable.

Property Status

Villas at Sin Vacas

As  of  June  30,  1997,  the  property  was  83%  occupied,   compared  to  80%
approximately  one year ago. At June 30, 1997 and 1996, the market rents for the
various unit types were as follows:

     Unit Type ...............................             1997             1996
----------------------------------------------           ------           ------
One bedroom one bath .........................           $  835           $  835
Two bedroom two bath .........................            1,050            1,050
Three bedroom two bath .......................            1,200            1,200

Pinecliff

As  of  June  30,  1997,  the  property  was  83%  occupied,   compared  to  90%
approximately  one year ago. At June 30, 1997 and 1996, the market rents for the
various unit types were as follows:

Unit Type ....................................             1997             1996
----------------------------------------------           ------           ------
  One bedroom one bath .......................           $  905           $  910
  Two bedroom two bath .......................            1,118            1,120


<PAGE>


Villa Antigua

As  of  June  30,  1997,  the  property  was  81%  occupied,   compared  to  87%
approximately  one year ago. At June 30, 1997 and 1996, the market rents for the
various unit types were as follows:

     Unit Type ...............................             1997             1996
----------------------------------------------           ------           ------
One bedroom one bath .........................           $  760           $  775
Two bedroom two bath .........................              925              925
Three bedroom two bath .......................            1,105            1,080

Results of Operations
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.
<TABLE>

                                         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 income                           ($5,275)         $15,760          $10,775       ($64,906)         ($43,646)
                                     ============= ===============  =============== ===============   ===============
</TABLE>

For the three months ended June 30, 1996, 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.
<TABLE>
                                           Sin         L'Auberge         Villa        Investment       Consolidated
                                          Vacas        Pinecliff        Antigua       Partnership         Total
<S>                                        <C>            <C>              <C>              <C>               <C>    
    Revenue                                $169,042       $279,976         $227,734         15,004            691,756

    Expenses:
      General and administrative              1,686                             259        133,318            135,263
      Operations                            114,214        106,934           81,837            750            303,735
      Depreciation and amortization          33,229         44,057           30,792                           108,078
      Interest                               56,001         71,768           69,594                           197,363
                                       ------------- --------------  --------------- --------------  -----------------
                                            205,130        222,759          182,482        134,068            744,439
                                       ------------- --------------  --------------- --------------  -----------------
    Net loss                              ($36,088)        $57,217          $45,252     ($119,064)          ($52,683)
                                       ============= ==============  =============== ==============  =================
</TABLE>

For the six months ended June, 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.
<TABLE>

                                          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 income                               $5,835          $32,604         $58,269       ($96,715)              ($7)
                                     ============== ================  ============== ===============   ===============
</TABLE>

For the six months ended June 30, 1996, 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.
<TABLE>
                                             Sin         L'Auberge         Villa       Investment      Consolidated
                                            Vacas        Pinecliff        Antigua      Partnership         Total
<S>                                          <C>             <C>            <C>              <C>            <C>      
   Revenue                                   $357,910        $528,120       $484,257         30,695         1,400,982

   Expenses:
     General and administrative                 1,686                            259        206,180           208,125
     Operations                               199,406         209,024        162,152          3,000           573,582
     Depreciation and amortization             62,187          86,587         59,933                          208,707
     Interest                                 112,215         143,809        139,452                          395,476
                                         ------------- --------------- -------------- --------------  ----------------
                                              375,494         439,420        361,796        209,180         1,385,890
                                         ------------- --------------- -------------- --------------  ----------------
   Net loss                                 ($17,584)         $88,700       $122,461     ($178,485)           $15,092
                                         ============= =============== ============== ==============  ================
</TABLE>

Comparison of Operating Results for the Six Months Ended June 30, 1997 and 1996:

Total  revenue  decreased by $96,515 or 7% primarily due to a decrease in rental
income as a result of competitive  pressure from new apartment properties in the
lease up phase in the local market. Operating expenses increased by $10,007 (2%)
primarily due to one-time  costs of preparing the  properties  for  disposition,
including  an increase advertising, promotions, repairs and maintenance. General
and administrative expenses have  decreased by $91,983, of which $73,775 was the
Evans Withycombe termination fee in 1996. A contributing factor to the
additional reduction of $18,208 was primarily due to the  re-stabilization  of
costs associated  with Partnership  administrative, financial and investor
services  functions following the office  relocation to Colorado Springs.

Thus far in 1997, the Partnership has made $194,526 of cash distributions to its
Limited Partners and $-0- to the General Partners.



<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
         Response:  None






                                   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