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 March 31, 1997

                                       OR

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

      For the transition period from __________________ to ________________

                           Commission File 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 ___














                          PART I. FINANCIAL INFORMATION

                          Item 1. FINANCIAL STATEMENTS










<PAGE>
<TABLE>





                           CLUSTER HOUSING PROPERTIES
                       (a California Limited Partnership)
                                AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

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

                                     ASSETS
                                                                                     March 31,
                                                                                        1997      December 31,
                                                                                    (Unaudited)       1996
Property, at cost:
<S>                                                                                   <C>            <C>       
  Land                                                                                $3,677,028     $3,677,028
  Buildings and improvements                                                          14,067,757     14,067,757
  Equipment, furnishings and                                                           1,648,890      1,576,836
fixtures
                                                                                    ------------- --------------

                                                                                      19,393,675     19,321,621
  Less accumulated depreciation                                                      (4,908,370)    (4,810,314)
                                                                                    ------------- --------------

                                                                                      14,485,305     14,511,307

Cash and cash equivalents                                                                962,444      1,065,855
Real estate tax escrows                                                                   70,089         41,632
Deposits                                                                                   3,818          3,818
Accounts receivable                                                                        4,942          2,605
Deferred expenses, net of
accumulated
  amortization of $184,766 and                                                             9,725         19,450
$175,041
                                                                                    ------------- --------------

         Total assets                                                                $15,536,323    $15,644,667
                                                                                    ============= ==============

                        LIABILITIES AND PARTNERS' EQUITY

<S>                                                                                   <C>            <C>       
Mortgage notes payable                                                                $8,524,125     $8,559,930
Accounts payable                                                                          98,436        115,410
Accrued expenses                                                                         191,247        195,794
Due to affiliates                                                                         15,974          8,975
(Note 7)
Rents received in advance                                                                                 4,538
                                                                                    -
Tenant security                                                                           55,463         55,320
deposits
                                                                                    ------------- --------------

         Total                                                                         8,885,245      8,939,967
liabilities


Partners' equity                                                                       6,651,078      6,704,700
                                                                                    ------------- --------------

        Total liabilities and                                                        $15,536,323    $15,644,667
partners' equity
                                                                                    ============= ==============




<PAGE>




                           CLUSTER HOUSING PROPERTIES
                       (a California Limited Partnership)
                                AND SUBSIDIARIES

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

                                                         Three Months Ended
                                                              March 31,
                                                         1997            1996
                                                       ----            ----
Revenue:
<S>                                                     <C>             <C>     
   Rental income                                        $657,818        $692,423
   Interest Income                                        10,897          16,803
                                                   -------------- ---------------

Total Revenue                                            668,715         709,226

Expenses:
   Operations                                            280,058         269,847
   Interest expense                                      195,002         198,113
   Depreciation and amortization                         107,780         100,629
   General and administrative                             42,234          72,862
                                                   -------------- ---------------

Total Expenses                                           625,074         641,451
                                                   -------------- ---------------

Net income (loss)                                        $43,641         $67,775
                                                   ============== ===============

Net income (loss) allocated to:
  General Partners                                        $2,182          $3,389

  Per unit Net income (loss)
allocated to
    Investor Limited Partner
interest:
       32,421 units                                        $1.28           $1.99
issued





<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                                                          -           (97,263)       (97,263)

Net income                                                                 2,182          41,459         43,641
                                                                  ---------------   ------------- --------------

Balance at March 31, 1997                                             ($190,112)      $6,841,190     $6,651,078
                                                                  ===============   ============= ==============



<PAGE>




                           CLUSTER HOUSING PROPERTIES
                       (a California Limited Partnership)
                                AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                                         Three Months Ended
                                                                             March 31,
Cash flows from operating                                                1997             1996
                                                                        ----             ----
activities:
<S>                                                                      <C>             <C>    
  Interest received                                                      $10,897         $39,887
  Cash received from rental income                                       653,423         682,880
  General and administrative                                           (104,433)        (65,278)
expenses
  Operations expense                                                   (253,449)       (293,429)
  Interest paid                                                        (195,002)       (198,113)
                                                                  ---------------   -------------

Net cash provided by operating                                           111,436         165,947
activities

Cash flows from investing activities:
  Purchase of fixed assets                                              (72,054)        (14,314)
  Cash received from short-term investments                             -                 90,917
                                                                  ---------------   -------------

Net cash provided by investing                                          (72,054)          76,603
activities

Cash flows from financing activities:
  Distributions to partners                                             (97,263)        (97,263)
  Cash paid for deferred costs                                           (9,725)         -
  Principal payments on mortgage notes payable                          (35,805)        (32,692)
                                                                  ---------------   -------------

Net cash used by financing                                             (142,793)       (129,955)
activities
                                                                  ---------------   -------------

Net increase (decrease) in cash and cash                               (103,411)         112,595
equivalents

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

Cash and cash equivalents at end of the period                          $962,444        $592,984
                                                                  ===============   =============





<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:

                                                                                  Three Months
                                                                                      Ended
                                                                                    March 31,
                                                                       1997             1996
<S>                                                                      <C>             <C>    
Net income (loss)                                                        $43,641         $67,775
Adjustments to reconcile net income (loss) to
net cash
  provided by operating activities:
  Depreciation and amortization                                          107,780         100,629
Change in assets and liabilities net of effects
of investing and financing
activities:
    Decrease in real estate tax                                         (28,457)        (34,247)
escrows
   (Increase) decrease in accounts and interest receivable               (2,337)          23,715
    (Increase) decrease in deposits and prepaid                          (9,725)         -
expenses
    Increase (decrease) in accounts payable and accrued expenses         (2,070)          18,946
    Increase (decrease) in due to                                          6,999         (1,328)
affiliates
    Decrease in rent received in                                         (4,538)        (10,495)
advance
    Increase in tenant security                                              143             952
deposits
                                                                  ---------------   -------------

Net cash provided by operating                                          $111,436        $165,947
activities
                                                                  ===============   =============
</TABLE>



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 March 31, 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 three months ended March 31, 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.



<PAGE>



         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   will  evaluate  the  possible
         impairment  of  long-lived  assets  whenever  events  or  circumstances
         indicate that the carrying value of the assets may not be recoverable.


<PAGE>


3.  Cash and Cash Equivalents:

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


                               1997         1996
                         ----------   ----------
Cash on hand .........   $  853,854   $  854,769
Certificate of deposit      108,590      211,086
                          __________  __________

                         $  962,444   $1,065,855

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 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 March 31, 1997, the total capital  contributions  and  acquisition
costs incurred were $2,713,937 and $418,686, respectively.

For the three months ended March 31, 1997,  and 1996 the Sin Vacas Joint Venture
had net income of $11,111 and $18,504, 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 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 March 31,  1997,  the  total  capital  contributions  and
acquisition costs were $2,580,117 and $381,729, respectively.

The Villa  Antigua  Joint  Venture had net income of $47,494 and $76,436 for the
three months ending March 31, 1997 and 1996.

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 DECEMBER 31, 1996

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.

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  $323,811.  At March  31,  1997 the  total  capital  contributions  and
acquisition costs incurred were $4,192,309 and $497,475, respectively.

For the three months ended March 31, 1997, and 1996 the Pinecliff had net income
of $16,845 and $31,484, 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
effected by the relative balances in the individual partners' capital accounts.

JULY 3, 1996 THROUGH DECEMBER 31, 1996

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 March 31, 1997 and December
31, 1996 which consisted of the following:

                            1997         1996
                      ----------   ----------
Villas at Sin Vacas   $2,418,691   $2,428,851
Pinecliff .........    3,099,682    3,112,702
Villa Antigua .....    3,005,752    3,018,377
                      ----------   ----------

                      $8,524,125   $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
balance of the note will be due on July 15, 1997.

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 balance of the
note will be due on July 15, 1997.

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. The balance of
the note will be due on July 15, 1997.

As these  mortgage notes payable are due in fiscal 1997,  the  Partnership  will
seek to renegotiate  these mortgage notes with its existing  lenders or seek new
sources of  financing  for these  properties  on a long term basis.  The General
Partners believe that existing cash flows from the properties will be sufficient
to support a level of borrowing that is at least equal to amounts outstanding as
of March 31,  1997.  If the  general  economic  climate for real estate in these
respective  locations were to  deteriorate  resulting in an increase in interest
rates for mortgage  financing or a reduction in the  availability of real estate
mortgage  financing  or a decline  in the  market  values of real  estate it may
affect the Partnership's ability to complete these refinancings.

Interest  accrued at March 31,  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 March  31,  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 $15,974, and $8,975, respectively.

For the three months ended March 31, 1997 and 1996,  general and  administrative
expenses included $14,547 and $27,268,  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,  is an affiliate of the General  Partners of
the Partnership.  For the three months ended March 31, 1997, $25,639 of property
management fees were paid to Residential Services - L'Auberge for the management
of Villas Sin Vacas,  Villa  Antigua and  L'Auberge  Pinecliff.  As of March 31,
1996,  Residential  Services-L'Auberge  received  management fees of $12,308 for
management of L'Auberge Pinecliff. During the three months ended March 31, 1996,
$21,679,  of property  management fees were paid to Evans  Withycombe,  Inc. for
management of Villa Sin Vacas and Villa Antigua.

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  were used to establish  initial  working
capital  reserves.  These  reserves  may be  used  periodically  to  enable  the
Partnership to meet its various financial obligations including contributions to
the  various  joint  ventures  that may be  required.  Through  March 31,  1997,
$373,990 cumulatively was contributed to the joint ventures 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 $103,411.  This
decrease resulted  primarily from cash provided by operations of $111,436 offset
by  distributions  to partners of $97,263,  purchase of fixed assets of $72,054,
cash paid for  deferred  costs of $9,725 and  $35,805 of  principal  payments on
mortgage notes payable.

Property Status

Villas at Sin Vacas

As  of  March  31,  1997,  the  property  was  89%  occupied,  compared  to  90%
approximately one year ago. At March 31, 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  March  31,  1997,  the  property  was  81%  occupied,  compared  to  94%
approximately one year ago. At March 31, 1997 and 1996, the market rents for the
various unit types were as follows:

Unit Type ............     1997     1996
----------------------   ------   ------
  One bedroom one bath   $  905   $  898
  Two bedroom two bath    1,109    1,100

Villa Antigua

As of  March  31,  1997,  the  property  was  98%  occupied,  compared  to  100%
approximately one year ago. At March 31, 1997 and 1996, the market rents for the
various unit types were as follows:

     Unit Type .......     1997     1996
----------------------   ------   ------
One bedroom one bath .   $  760   $  735
Two bedroom two bath .    1,080      953
Three bedroom two bath    1,130    1,070

Results of Operations
For the three months ended March 31, 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                         $185,073          $235,026       $238,173       $10,443        $668,715

   Expenses:
     General and administrative                                                           42,252          42,252
     Operations                            86,962           101,820         91,258                       280,040
     Depreciation and                      31,669            45,451         30,660                       107,780
   amortization
     Interest                              55,331            70,910         68,761                       195,002
                                    -------------- -----------------  ------------- ------------- ---------------
                                          173,962           218,181        190,679        42,252         625,074
                                    -------------- -----------------  ------------- ------------- ---------------
   Net income                             $11,111           $16,845        $47,494     ($31,809)         $43,641
                                    ============== =================  ============= ============= ===============
</TABLE>

For the three months ended March 31, 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                              $188,868         $248,144         $256,523        $15,691        $709,226

     Expenses:
       General and administrative                                                            75,112          75,112
       Operations                           85,192          102,089           80,316                        267,597
       Depreciation and                     28,958           42,530           29,141                        100,629
     amortization
       Interest                             56,214           72,041           69,858                        198,113
                                       ------------ ---------------- ---------------- -------------- ---------------
                                           170,364          216,660          179,315         75,112         641,451
                                       ------------ ---------------- ---------------- -------------- ---------------
     Net loss                              $18,504          $31,484          $77,208      ($59,421)         $67,775
                                       ============ ================ ================ ============== ===============
</TABLE>


Comparison  of  Operating  Results for the Three Months ended March 31, 1997 and
1996:

Total  revenue  decreased by $40,511 or 6% 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  slightly by
$12,443 (4%). General and administrative  expenses have decreased $32,860 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 the following cash  distributions  to
its Partners:

                                     Total
         Limited Partners           $97,263
         General Partners                  -
                                    $97,263




<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


                                    Date: May 13, 1997


<PAGE>