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 September 30, 1996

                                       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
                                                 September 30
                                                     1996        December 31,
                                                 (Unaudited)        1995
Property, at cost (Notes 2, 4, and 5):
<S>                                             <C>             <C>         
  Land ......................................   $  3,677,028    $  3,677,028
  Buildings and improvements ................     14,067,756      14,067,756
  Equipment, furnishings and ................      1,460,188       1,295,545
fixtures
                                                ------------    ------------

                                                  19,204,972      19,040,329
  Less accumulated depreciation .............     (4,702,148)     (4,418,093)
                                                ------------    ------------

                                                  14,502,824      14,622,236

Cash and cash equivalents (Notes 2 and 3) ...        452,808         480,389
Short-term investments (Note 2) .............        808,036       1,067,446
Real estate tax escrows .....................         79,595          44,055
Deposits and prepaid expenses ...............          6,190           1,693
Accounts receivable .........................          2,600             631
Deferred expenses, net of
accumulated
  amortization of $155,588 and $136,140 (Note 2)      29,174          58,351
                                                ------------    ------------

         Total assets .......................   $ 15,881,227    $ 16,274,801
                                                ============    ============

                        LIABILITIES AND PARTNERS' EQUITY

<S>                                                 <C>             <C>      
Mortgage notes payable (Note 5) ..............      8,594,929       8,695,278
Accounts payable .............................         97,070          42,245
Accrued expenses .............................        193,077         164,298
Due to affiliates ............................          1,632          23,173
(Note 7)
Rents received in advance ....................         10,495
                                                                 ------------
Tenant security ..............................         60,216          57,306
deposits
                                                 ------------    ------------

         Total liabilities....................      8,946,924       8,992,795

Commitments and contingencies (Note 9)
Minority interest (Note 4) ...................         (8,895)         (8,895)
Partners' equity (Note 6).....................      6,943,198       7,290,901
                                                 ------------    ------------

        Total liabilities and partners' equity   $ 15,881,227    $ 16,274,801
                                                 ============    ============




<PAGE>




                           CLUSTER HOUSING PROPERTIES
                       (a California Limited Partnership)
                                AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)
                                  -------------
                                       Three Months Ended            Nine Months Ended
                                          September 30                   September 30
                                       1996          1995           1996           1995
                                       ----          ----           ----           ----
Revenue:
<S>                                <C>            <C>           <C>            <C>        
   Rental income ...............   $   620,167    $   686,415   $ 1,988,215    $ 2,030,323
   Interest Income .............   $    10,071    $    20,616   $    43,005    $    64,453
                                                                               -----------

Total Revenue ..................       630,238        707,031     2,031,220      2,094,776

Expenses:
   Operations ..................       312,323        333,770       885,905        891,176
   Interest expense ............       196,534        199,448       592,010        600,441
   Depreciation and amortization       104,521        100,627       313,228        301,886
   General and administrative ..        87,866         44,446       295,991        140,071
(Note 7)
                                     -----------     -----------   -----------   -----------

Total Expenses .................       701,244        678,291     2,087,134      1,933,574
                                     -----------     -----------  -----------    ----------

Net income (loss) ..............       (71,006)        28,740       (55,914)       161,202
                                     ===========     ===========  ===========    ===========

Net income (loss) allocated to:
  General Partners .............   ($      710)   $     1,437   ($      559)   $     8,060

  Per unit of Investor Limited
    Partner interest:
       32,421 units ............         (2.17)          0.84         (1.71)          4.72
         issued





<PAGE>





                           CLUSTER HOUSING PROPERTIES
                       (a California Limited Partnership)
                                AND SUBSIDIARIES

              CONSOLIDATED STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
                                   (Unaudited)
                                  -------------

                                                 Investor         Total
                                  General        Limited       Partners'
                                  Partners       Partners         Equity

<S>                                <C>           <C>            <C>      
Balance at December 31, 1994       (159,147)     7,669,907      7,510,760

Cash distributions ..........       (26,449)      (502,525)      (528,974)

Net income ..................        15,456        293,659        309,115
                                -----------    -----------    -----------

Balance at December 31, 1995       (170,140)     7,461,041      7,290,901

Cash distributions ..........                     (291,789)      (291,789)
                                
Net income ..................          (559)       (55,355)       (55,914)
                                -----------    -----------    -----------

Balance at September 30, 1996   ($  170,699)   $ 7,113,897    $ 6,943,198
                                ===========    ===========    ===========










<PAGE>





                           CLUSTER HOUSING PROPERTIES
                       (a California Limited Partnership)
                                AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                   (Unaudited)
                Increase (decrease) in cash and cash equivalents

                                                              Nine Months Ended
                                                                 September 30
                                                             1996             1995
                                                            ----             ----
Cash flows from operating activities:
<S>                                                      <C>            <C>        
  Interest received ..................................   $    64,613    $    42,107
  Cash received from rental income ...................     1,980,606      1,935,414
  Administrative expenses ............................      (326,839)      (156,938)
  Rental operations expenses .........................      (830,475)      (863,768)
  Interest paid ......................................      (593,482)      (600,790)
  Cash received from other income ....................          --           78,443
                                                         -----------    -----------

Net cash provided by operating activities ............       294,423        434,468

Cash flows from investing activities:
  Purchase of fixed assets ...........................      (164,643)        (6,140)
  Cash (paid for) received from short-term investments       237,802        430,380
                                                         -----------    -----------
Net cash provided (used) by investing ................        73,159        424,240
activities

Cash flows from financing activities:
  Distributions to partners ..........................      (291,789)      (400,997)
  Deposits ...........................................        (3,025)         1,675
  Principal payments on mortgage notes payable .......      (100,349)       (91,656)
                                                         -----------    -----------

Net cash used by financing ...........................      (395,163)      (490,978)
activities
                                                         -----------    -----------

Net increase (decrease) in cash and cash .............       (27,581)       367,730
equivalents

Cash and cash equivalents at beginning of  the period        480,389        195,407
                                                         -----------    -----------

Cash and cash equivalents at end of the period .......   $   452,808    $   563,137
                                                         ===========    ===========




<PAGE>




                           CLUSTER HOUSING PROPERTIES
                       (a California Limited Partnership)
                                AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                   (Unaudited)

                Increase (decrease) in cash and cash equivalents
                                  -------------

Reconciliation of net income to net cash provided by operating activities:
     
                                                                 Nine Months
                                                                    Ended
                                                                 September 30
                                                             1996             1995
<S>                                                        <C>          <C>      
Net income .............................................   ($ 55,914)   $ 161,202
Adjustments to reconcile net income to net cash
  provided by operating
activities:
  Depreciation and amortization ........................     313,228      301,886
Change in assets and liabilities net of effects
  from investing and financing activities:
    Decrease in real estate tax ........................     (35,540)      (8,779)
escrows
    Increase in accounts and interest ..................      19,639      (22,346)
receivable
    Decrease (increase) in deposits and prepaid expenses        (900)
    Increase (decrease) in
accounts
         payable and accrued ...........................      83,604       26,496
expenses
    Increase (decrease) in due to affiliates ...........     (22,085)      (7,525)
    Increase (decrease) in rent received in ............     (10,495)     (13,916)
advance
    Increase (decrease) in tenant security .............       2,886       (2,550)
deposits
                                                           ---------    ---------

Net cash provided by operating activities ..............   $ 294,423    $ 434,468
                                                           =========    =========



</TABLE>
<PAGE>


================================================================================
                           CLUSTER HOUSING PROPERTIES
================================================================================
                       (A California Limited Partnership)
                                AND SUBSIDIARIES

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

13

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 December 31, 1995, the
total  number of  Limited  Partners  was 2,013.  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 nine months ended September 30, 1996 and 1995.

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 subsidiaries:  Sin Vacas Joint Venture (Sin Vacas),
         Autumn  Ridge Joint  Venture  (Autumn  Ridge) and Villa  Antigua  Joint
         Venture (Villa  Antigua).  All  intercompany  accounts and transactions
         have been  eliminated in  consolidation.  The  Partnership  follows the
         accrual basis of accounting.

         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.  Short-term Investments

         At September 30, 1996, short term investments consist solely of various
         forms of U. S.  Government  backed  securities,  with an aggregate  par
         value of $802,763 which mature in March 1997. In 1994, the  Partnership
         adopted   Statement  of  Financial   Accounting   Standards   No.  115,
         "Accounting for Certain Investments in Debt and Equity Securities". The
         Partnership  has  the  intent  and  ability  to  hold  its  short  term
         investments  to  maturity.  Accordingly,  these  securities  have  been
         recorded at amortized cost, which approximates  market value. There was
         no cumulative effect recorded as a result of this accounting change.


<PAGE>



         D. 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.

         E.  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

         F.  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.

         G.  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.

         H. Rental Income

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

         I. 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 September 30, 1996 and December 31, 1995 consisted
of the following:


                                                            1996          1995
                                                            ----          ----
 Cash on hand (Sweep Account)                           $452,808       $ 30,848
 Certificate of deposit                                                 100,000
 Money market accounts                                   -              349,541
                                                   --------------       --------
                                                         $452,808       $480,389

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  those  of  the
Partnership.

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
$217,167. At September 30, 1996, the total capital contributions and acquisition
costs incurred were $2,655,937 and $418,686, respectively.

For the nine  months  ended  September  30,  1996 and 1995 the Sin  Vacas  Joint
Venture had net loss of $58,266, and net income of $19,325, respectively.

Net cash from  operations  (as defined in the joint venture  agreement) is 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 are
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.

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 those of the Partnership.

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..  At
September  30,  1996 the  total  capital  contributions  and  acquisition  costs
incurred were $4,187,310 and $497,475, respectively.

For the nine months  ended  September  30, 1996 and 1995 the Autumn  Ridge Joint
Venture had net income of $120,035 and $51,151, respectively.

Net cash from  operations  (as defined in the joint venture  agreement) is 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
are 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.

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 those
of the Partnership.

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  $90,144.  At September 30, 1996, the total capital  contributions  and
acquisition costs were $2,584,821 and $381,729, respectively.

The Villa  Antigua Joint Venture had net income of $145,859 and $151,950 for the
nine months ended September 30,1996 and 1995. September 30, 1996

Net cash from  operations  (as defined in the joint venture  agreement) is 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
are 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
affected by the relative balances in the individual partners' capital accounts.

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".

5.  Mortgage Notes Payable:

All of the property  owned by the  Partnership  is pledged as collateral for the
nonrecourse  mortgage  notes  payable  outstanding  at  September  30,  1996 and
December 31, 1995 which consisted of the following:

                                                        1996             1995
                                                        ----             ----
 Villas at Sin Vacas                                 $2,438,781       $2,467,255
 Pinecliff                                            3,125,429        3,161,919
 Villa Antigua                                        3,030,719        3,066,104
                                                      ---------        ---------
                                                     $8,594,929       $8,695,278
                                                      =========        =========

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.

Interest  accrued at September  30, 1996 and December 31, 1995  consisted of the
following:

                                                1996                      1995
                                                ----                      ----
 Villas at Sin Vacas                      $     9,381               $     9,381
 Pinecliff                                     12,022                    12,022
 Villa Antigua                                 11,658                    11,658
                                            ----------                 ---------
                                            $  33,061                 $  33,061
                                             ========                  ========

The aggregate  principal amounts of long term borrowings due during the calendar
years 1996 and 1997, respectively, are $135,348, and $8,559,930.

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 September  30, 1996 and  December  31, 1995  consisted of
reimbursable costs payable to L'Auberge  Communities,  Inc., an affiliate of the
General Partners, in the amounts of $1,632, and $2,665, respectively.

For  the  nine  months  ended   September   30,  1996  and  1995,   general  and
administrative  expenses included $66,026 and $52,411,  respectively,  of salary
reimbursements  paid to the  General  Partners  for certain  administrative  and
accounting  personnel who performed services for the Partnership.  A termination
fee of $71,680 was paid to Evans Withycombe, Inc.

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.

During the nine months ended  September 30, 1996 and 1995,  $39,440 and $42,660,
respectively,  of  property  management  fees  were  paid or  accrued  to  Evans
Withycombe,  Inc until the  termination of the  Management  Agreement on May 15,
1996

Residential Services - L'Auberge, formerly Berry and Boyle Residential Services,
the property  manager of Pinecliff  and Villa Sin Vacas,  is an affiliate of the
General  Partners of the  Partnership.  For the nine months ended  September 30,
1996 and 1995 $43,379 and $37,613,  respectively,  of property  management  fees
were paid or accrued to Residential Services - L'Auberge.

8. Significant Event:

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),  resulted in the dissolution of the Sin Vacas
Joint Venture and the Villa Antigua Joint Venture.

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, and (while
preserving  the economic  interests  of the  venturer in these Joint  Ventures),
which resulted in the dissolution of the L'Auberge Pinecliff Joint Venture.






<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  September 30, 1996,
$409,392 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
1996, the aggregate net decrease in working capital reserves was $286,991.  This
decrease resulted  primarily from cash provided by operations of $294,423 offset
by distributions  to partners of $291,789,  purchase of fixed assets of $164,643
and $100,349 of principal payments on mortgage notes payable.

Property Status

Villas at Sin Vacas

As of  September  30,  1996,  the  property  was 84%  occupied,  compared to 83%
approximately one year ago. At September 30, 1996 and 1995, the market rents for
the various unit types were as follows:

Unit Type                                              1996       1995
---------                                              ----       ----
One bedroom one bath                                   $ 835       $ 835
Two bedroom two bath                                   1,050       1,050
Three bedroom two bath                                 1,200       1,200

Autumn Ridge

As of  September  30,  1996,  the  property  was 91%  occupied,  compared to 95%
approximately one year ago. At September 30, 1996 and 1995, the market rents for
the various unit types were as follows:

Unit Type                                               1996        1995
---------                                               ----        ----
One bedroom one bath                                    $ 890      $ 890
Two bedroom two bath                                    1,099      1,099

Villa Antigua

As of  September  30,  1996,  the  property  was 85%  occupied,  compared to 95%
approximately one year ago. At September 30, 1996 and 1995, the market rents for
the various unit types were as follows:

 Unit Type                                                1996      1995
 --------                                                 ----      ----
 One bedroom one bath                                    $ 760       $735
 Two bedroom two bath                                      925        935
 Three bedroom two bath                                  1,080         1,070

Results of Operations

For the three  months  ended  September  30, 1996,  the  Partnership  recognized
interest  income earned on short term  investments of $9,975 and  administrative
expenses of $87,866, as well as its share of the income or losses allocated from
the Joint Ventures as follows:
<TABLE>
                                         Sin            Autumn             Villa
                                       Vacas            Ridge            Antigua
<S>                                  <C>              <C>               <C>     
Revenue                              $160,684         $258,420          $201,159

Expenses:
 General and administrative
 Operations                           115,086          111,538            78,533
 Depreciation and amortizati           30,497           44,058            29,966
 Interest                              55,783           71,489            69,262
                             ---------------- ----------------  ----------------
                                      201,366          227,085           177,761
                             ---------------- ----------------  ----------------
Net income (loss)                   ($40,682)          $31,335           $23,398
                             ================ ================  ================
</TABLE>

For the three months ended September 30, 1995, the Partnership  recognized  
interest  income  earned on short term  investments  of
$20,048 and  administrative  expenses  of  $39,046,  as well as its share of the
income or losses allocated from the Joint Ventures as follows:
<TABLE>
                                    Sin        L'Auberge       Villa
                                    Vacas      Pinecliff      Antigua
<S>                               <C>          <C>         <C>      
Revenue .......................   $ 182,035    $ 271,004   $ 233,944

Expenses:
  General and administrative ..       1,800        1,800       1,800
  Operations ..................     111,724      142,003      80,043
  Depreciation and amortization      28,958       42,529      29,140
  Interest ....................      56,593       72,526      70,329
                                  ---------    ---------   ---------
                                    199,075      258,858     181,312
                                  ---------    ---------   ---------
Net income (loss) .............   ($ 17,040)   $  12,146   $  52,632
                                  =========    =========   =========
</TABLE>

For the nine  months  ended  September  30,  1996,  the  Partnership  recognized
interest income earned on short term  investments of $40,670 and  administrative
expenses  of  $294,046,  as well as its share of the income or losses  allocated
from the Joint Ventures as follows:
<TABLE>

                                    Sin        L'Auberge     Villa
                                    Vacas      Pinecliff    Antigua
<S>                               <C>          <C>         <C>      
Total revenue .................   $ 518,170    $ 785,563   $ 684,482

Expenses:
  General and administrative ..       1,686         --           259
  Operations ..................     314,492      320,562     240,685
  Depreciation and amortization      92,684      130,645      89,899
  Interest ....................     167,998      215,298     208,714
                                  ---------    ---------   ---------
                                    576,860      666,505     539,557
                                  ---------    ---------   ---------
Net income (loss) .............   ($ 58,266)   $ 120,035   $ 145,859
                                  =========    =========   =========
</TABLE>

For the nine  months  ended  September  30,  1995,  the  Partnership  recognized
interest income earned on short term  investments of $62,751 and  administrative
expenses  of  $123,975,  as well as its share of the income or losses  allocated
from the Joint Ventures as follows:
<TABLE>
                                    Sin      L'Auberge    Villa
                                    Vacas    Pinecliff   Antigua
<S>                               <C>        <C>        <C>     
Total revenue .................   $576,112   $754,499   $701,414

Expenses:
  General and administrative ..      5,400      5,296      5,400
  Operations ..................    294,140    352,121    244,915
  Depreciation and amortization     86,874    127,589     87,423
  Interest ....................    170,373    218,342    211,726
                                  --------   --------   --------
                                   556,787    703,348    549,464
                                  --------   --------   --------
Net income (loss) .............   $ 19,325   $ 51,151   $151,950
                                  ========   ========   ========
</TABLE>


Comparison of Operating Results for the Nine months ended September 30, 1996 and
1995:

Interest income  decreased 35% over the prior period as a result of lower amount
of  working  capital  invested  in the  Partnership's  short  term  investments.
Transition  costs  associated with the outsourcing of much of the  Partnership's
administration  work  to an  administration  agent  and  the  relocation  of the
remaining  administration,  financial and investor services  functions to a more
cost efficient location in Colorado Springs,  Colorado has temporarily increased
first  half  1996  operating   expenses.   Furthermore,   consistent   with  the
Partnership's  disposition  strategy,  annual  audit  fees were  moved  from the
property level to the investment  partnership  level to more accurately  present
on-site operational costs of the properties. Consequently, the total general and
administrative  expenses  of the  Partnership  increased  73% in the first  nine
months of 1996 as  compared  with the same  period  in 1995.  In  addition,  the
one-time cost of the Evans Withycombe  termination ($71,680) and the cost of the
Highland  termination  ($7718) and its related  legal cost were incurred in May,
June and July of 1996.

Thus far in 1996, the Partnership has made the following cash  distributions  to
its Partners:

                                      Total
         Limited Partners           $291,789
         General Partners               -                                       
                                    $291,789
<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: November 14, 1996




<PAGE>