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

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

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

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

        Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act: Units of Limited
 Partnership Interests

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by  Sections  13 and 15(d) of the  Securities  Exchange  Act of 1934
during the preceding 12 months (or for such shorter  period that the  registrant
was  required  to file such  reports),  and (2) has been  subject to such filing
requirements for the past 90 days. Yes _X_ No ___




<PAGE>











                          PART I. FINANCIAL INFORMATION

                          Item 1. FINANCIAL STATEMENTS


<PAGE>



                           CLUSTER HOUSING PROPERTIES
                       (a California Limited Partnership)
                                AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

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


                                ASSETS .............................................     March 31,
                                                                                           1998       December 31,
                                                                                       (Unaudited)        1997
Assets held for sale/Property, at cost (Note 8)
<S>                                                                                    <C>            <C>        
  Land .............................................................................   $ 1,242,061    $ 1,242,061
  Buildings and improvements .......................................................     6,063,055      6,063,055
  Equipment, furnishings and fixtures ..............................................       643,757        642,239
                                                                                       -----------    -----------

                                                                                         7,948,873      7,947,355
  Less accumulated depreciation ....................................................    (2,152,207)    (2,152,207)
                                                                                       -----------    -----------

                                                                                         5,796,666      5,795,148

Cash and cash equivalents ..........................................................       395,748        421,580
Real estate tax escrows ............................................................        36,430         24,037
Deposits and prepaid expenses ......................................................       100,709        133,285
Accounts receivable ................................................................                        1,400
Deferred expenses, net of accumulated
  amortization of $208,788 and $205,147 ............................................         4,247          7,888
                                                                                       -----------    -----------

         Total assets ..............................................................   $ 6,333,800    $ 6,383,338
                                                                                       ===========    ===========

                               LIABILITIES AND PARTNERS' EQUITY (DEFICIT)

Mortgage notes payable .............................................................   $ 3,044,542    $ 3,058,800
Accounts payable ...................................................................        37,188         83,637
Accrued expenses ...................................................................        76,989        131,588
Due to affiliates (Note 7) .........................................................        49,541         16,076
Rents received in advance ..........................................................                        1,984
                                                                                                      
Tenant security deposits ...........................................................        36,450         33,555
                                                                                       -----------    -----------

         Total liabilities .........................................................     3,244,710      3,325,640


General Partners' deficit ..........................................................      (126,277)      (127,847)
Limited Partners' equity ...........................................................     3,215,368      3,185,545
                                                                                       -----------    -----------

        Total liabilities and partners' equity .....................................   $ 6,333,800    $ 6,383,338
                                                                                       ===========    ===========



<PAGE>





                           CLUSTER HOUSING PROPERTIES
                       (a California Limited Partnership)
                                AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS

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

                                                                                               Three Months Ended
                                                                                                     March 31,
                                                                                                  1998       1997
                                                                                                --------   --------
Revenue:
<S>                                                                                             <C>        <C>     
   Rental income ............................................................................   $261,865   $657,818
   Interest income ..........................................................................      4,977     10,897
                                                                                                --------   --------

Total Revenue ...............................................................................    266,842   $668,715

Expenses:
   Operations ...............................................................................    101,603    280,058
   Interest expense .........................................................................     69,671    195,002
   Depreciation and amortization ............................................................      3,640    107,780
   General and administrative ...............................................................     60,535     42,234

                                                                                                --------   --------
Total Expenses ..............................................................................    235,449    625,074
                                                                                                --------   --------

Net income (loss) ...........................................................................   $ 31,393   $ 43,641
                                                                                                ========   ========

Net income (loss) allocated to:
  General Partners ............                                                                  $1,570      $2,182

Basic and diluted per unit
Net income  (loss)  allocated
 to Investor  Limited Partner interest:
     32,421 units issued ..............                                                        $   0.92$       1.28







<PAGE>







                           CLUSTER HOUSING PROPERTIES
                       (a California Limited Partnership)
                                AND SUBSIDIARIES

              CONSOLIDATED STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

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


                                                                                                   Investor       Total
                                                                                    General        Limited      Partners'
                                                                                   Partners        Partners      Equity

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

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

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

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

Cash distributions ............................................................          --             --             --

Net income ....................................................................         1,570         29,823         31,393
                                                                                  -----------    -----------    -----------

Balance at March 31, 1998 .....................................................   ($  126,277)   $ 3,215,368    $ 3,089,090
                                                                                  ===========    ===========    ===========




<PAGE>







                           CLUSTER HOUSING PROPERTIES
                       (a California Limited Partnership)
                                AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                                                                           Three Months
                                                                                                              Ended
                                                                                                             March 31,
Cash flows from operating activities: ...........................................................          1998           1997
                                                                                                    -----------    -----------
<S>                                                                                                 <C>            <C>        
  Interest received .............................................................................   $     4,977    $    10,897
  Cash received from rental income ..............................................................       262,776        653,423
  General and administrative expenses ...........................................................       (48,188)      (104,433)
  Operations expense ............................................................................      (192,572)      (253,449)
  Interest paid .................................................................................       (69,671)      (195,002)
                                                                                                    -----------    -----------
Net cash provided by operating activities .......................................................       (42,678)       111,436

Cash flows from investing activities:
  Capital improvements ..........................................................................        (2,261)       (72,054)
  Deposit with escrow agent .....................................................................        33,367           --
                                                                                                    -----------    -----------

Net cash provided by investing activities .......................................................        31,107        (72,054)

Cash flows from financing activities:
  Distributions to partners .....................................................................          --          (97,263)
  Deposits ......................................................................................          --           (9,725)
  Principal payments on mortgage notes payable ..................................................       (14,260)       (35,805)
                                                                                                    -----------    -----------

Net cash used by financing activities ...........................................................       (14,260)      (142,793)
                                                                                                    -----------    -----------

Net increase (decrease) in cash and cash equivalents ............................................       (25,832)      (103,411)

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

Cash and cash equivalents at end of the period ..................................................   $   395,748    $   962,444
                                                                                                    ===========    ===========




<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,
                                                                                                           1998         1997
                                                                                                      ---------    ---------
<S>                                                                                                   <C>          <C>      
Net income (loss) .................................................................................   $  31,393    $  43,641

Adjustments to  reconcile  net income  (loss) to net cash  provided by operating
  activities:
  Depreciation and amortization ...................................................................       3,640      107,780
Change in assets and liabilities net of effects
of investing and financing activities:
    Increase in real estate tax escrows ...........................................................     (12,393)     (28,457)
    Increase prepaid expenses .....................................................................         (48)      (2,337)
    Decrease (increase) in accounts receivable ....................................................       1,400       (9,725)
    (Decrease) in accounts payable and accrued expenses ...........................................    (101,046)      (2,070)
    Increase in due to affiliates .................................................................      33,465        6,999
    Decrease in rent received in advance ..........................................................      (1,984)      (4,538)
    Increase in tenant security deposits ..........................................................       2,895          143
                                                                                                      ---------    ---------

Net cash provided by operating activities .........................................................   ($ 42,678)   $ 111,436
                                                                                                      =========    =========

</TABLE>




<PAGE>


                           CLUSTER HOUSING PROPERTIES
                       (A California Limited Partnership)
                                AND SUBSIDIARIES

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


                                                               

1.  Organization of Partnership:

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

A  total  of  2,000  individual   Limited  Partners  owning  32,421  units  have
contributed  $16,210,500 of capital to the  Partnership.  At March 31, 1998, the
total  number of  Limited  Partners  was 1,902.  Except  under  certain  limited
circumstances, as defined in the Partnership Agreement, the General Partners are
not required to make any additional capital contributions.  The General Partners
or their affiliates will receive various fees for services and reimbursement for
various organizational and selling costs incurred on behalf of the Partnership.

The Partnership will continue until December 31, 2010, unless terminated earlier
by the sale of all, or substantially  all, of the assets of the Partnership,  or
otherwise in accordance  with the  provisions  of Section 16 of the  Partnership
Agreement (See Note 8.)

2.  Significant Accounting Policies:

         A.  Basis of Presentation

         The  consolidated  financial  statements  include  the  accounts of the
         Partnership and its subsidiaries:  Sin Vacas Joint Venture (Sin Vacas),
         Autumn  Ridge Joint  Venture  (Autumn  Ridge) and Villa  Antigua  Joint
         Venture (Villa  Antigua).  All  intercompany  accounts and transactions
         have been  eliminated in  consolidation.  The  Partnership  follows the
         accrual basis of accounting.  Refer to Note 5 regarding the termination
         of the  Joint  Ventures  and the sale of  Villas  Sin  Vacas  and Villa
         Antigua.

         B.  Cash and Cash Equivalents

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

         C. Significant Risks and Uncertainties

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

         D.  Depreciation

         Depreciation  is provided  for by the use of the  straight-line  method
         over estimated useful lives as follows:
               Buildings and improvements                           39-40 years
               Equipment, furnishings and fixtures                   5-15 years

         E.  Deferred Expenses

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

         F.  Income Taxes

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

         G. Rental Income

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

         H. Long-Lived Assets

         In 1996,  the  Partnership  adopted  Statement of Financial  Accounting
         Standards  No.  121  (SFAS  121),  "Accounting  for the  Impairment  of
         Long-Lived Assets to be Disposed of." SFAS 121 requires that long-lived
         assets  be  reviewed  for  impairment  whenever  events or  changes  in
         circumstances   indicate   that  their   carrying   value  may  not  be
         recoverable. The adoption of SFAS 121 had no effect on reported results
         in 1996. As further  discussed in Note 8, as of the year ended December
         31, 1997, the Partnership  recorded the assets at the lower of carrying
         value or net realizable  value and has included these amounts as Assets
         Held for Sale.

         For the three months  ended March 31, 1998 and the year ended  December
         31,  1997,  permanent  impairment  conditions  did  not  exist  at  the
         Partnership's property.

         I.  New Accounting Standards

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


<PAGE>


3.  Cash and Cash Equivalents:

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

                                                       
                                                        March 31,  December 31, 
                                                          1998          1997
                                                          ----          ----
                  Cash on hand                         $ 178,602      $ 132,330
                  Money market accounts                  217,146        289,250
                                                         -------        -------
                                                        $395,748       $421,580

4.  Joint Venture and Property Acquisitions:

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

Villas Sin Vacas

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

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

The Partnership made initial cash payments in the form of capital  contributions
totaling $2,458,507 and funded $398,949 of property acquisition costs which were
treated as a capital  contribution  to the joint  venture.  Since  completion of
construction,   the  Partnership  has  made  additional  contributions  totaling
$275,167.  At December 31, 1996, the total capital contributions and acquisition
costs incurred were $2,713,937 and $418,686, respectively.

JANUARY 1, 1996 THROUGH MAY 13, 1996

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

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

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

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

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

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

Villa Antigua

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

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

The Partnership made initial cash payments in the form of capital  contributions
totaling $2,494,677 and funded $381,729 of property acquisition costs which were
treated as a capital  contribution  to the Villa  Antigua Joint  Venture.  Since
completion of  construction,  the Partnership has made additional  contributions
totaling  $85,440.  At December 31, 1996,  the total capital  contributions  and
acquisition costs incurred were $2,580,117 and $381,729, respectively.

JANUARY 1, 1996 THROUGH MAY 13, 1996

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

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

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

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

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

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


Sin Vacas and Villa Antigua

MAY 14, 1996 THROUGH NOVEMBER 25, 1997

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

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

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

Pinecliff

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

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

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


4.Joint Venture and Property Acquisitions, continued:

At March 31,  1998,  the  total  capital  contributions  and  acquisition  costs
incurred were $4,192,309 and $497,475, 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, were allocated
to  the  Partnership  and  co-venturer  in  the  same  proportion  as  the  cash
distribution. Any remaining profits are allocated 82% to the Partnership and 18%
to the co-venturer.

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

JULY 3, 1996 THROUGH MARCH 31, 1998

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

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 owned 100% of the underlying assets as
of December 31, 1996.

For the three months ended March 31, 1998 and 1997,  Pinecliff  had a net income
of $88,412 and $16,845, respectively.

5.  Mortgage Notes Payable:

The  property  owned  by the  Partnership  is  pledged  as  collateral  for  the
nonrecourse  mortgage notes payable  outstanding March 31, 1998 and December 31,
1997, which consisted of the following:

                                            1998                      1997
                                            ----                      ----
         Pinecliff                        3,044,542                 3,058,800

Pinecliff
The original  maturity date for these notes was July 15, 1997. On July 10, 1997,
the lender  extended  the terms of the  mortgage  note for a period of one year.
Under the modification agreement,  the monthly principal and interest payment of
$27,976 and the original interest rate of 9.125% remained  unchanged.  The terms
of the  agreement  provide for a prepayment  penalty of 0.5% of the  outstanding
loan  amount in the event the note is paid  prior to 60 days  before it  becomes
due. The balance of the note will be due on July 15, 1998.

As discussed in Note 8, the  Partnership  entered into a Sale Agreement for this
property  with an  unaffiliated  third  party.  The  estimated  sales  price  is
sufficient  to  cover  the  mortgage  note  balance.  However,  there  can be no
assurance that the sale of the property will occur.

In the event that the sale of Pinecliff  does not occur,  the  Partnership  will
seek new sources of financing  for the property on a long-term  basis or seek to
renegotiate the mortgage note with its existing lender.  If the general economic
climate for real estate in this  location  were to  deteriorate  resulting in an
increase in  interest  rates for  mortgage  refinancing  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  the
refinancing or sell the property.

As discussed in Note8,  the  Partnership  entered into a Sale Agreement for this
property  with an  unaffiliated  third  party.  The  estimated  sales  price  is
sufficient  to  cover  the  mortgage  note  balance.  However,  there  can be no
assurance that the sale of the property will occur.

Interest  included in Accrued  expenses in the  Consolidated  Balance  Sheets at
March 31, 1998 and December 31, 1997 consisted of the following:

                                              1998                      1997
                                              ----                      ----
        Pinecliff                            $11,630                   $11,630


The  principal   balance  of  the  mortgage  notes  payable   appearing  on  the
consolidated balance sheets at March 31, 1998 and December 31, 1997 approximates
the fair value of the note.



6.  Partners' Equity:

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

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

Gain  from  the  sale  of  properties  is to be  allocated  as  defined  in  the
Partnership Agreement. The net proceeds on the sale of both Villas Sin Vacas and
Villa Antigua of $5.3 million were  allocated as follows.  The Limited  Partners
received 100% of the cash distribution from sale. The total gain on sale of both
Villas Sin Vacas and Villa Antigua of $2.3 million was allocated as follows. The
General Partner received a gain on sale allocation of approximately  $70,000 and
the Limited Partners  received a gain on sale allocation of  approximately  $2.2
million.  These  distributions/allocations  were in accordance with the terms of
the Partnership Agreement.

7.  Related-Party Transactions:

L'Auberge Communities, Inc. is a General Partner of L'Auberge Communities, which
owns a 99% interest in GP L'Auberge Communities,  L.P. (formerly Berry and Boyle
Management). Due to affiliates at March 31, 1998 and December 31, 1997 consisted
of reimbursable  costs payable to L'Auberge  Communities,  Inc., an affiliate of
the General Partners, in the amounts of $49,541 and $16,076, respectively.

For the  period  ended  March 31,  1998 and  1997,  general  and  administrative
expenses included $19,289, and $14,547,  respectively,  of salary reimbursements
paid to the General Partners for certain administrative and accounting personnel
who perform services for the Partnership.


8.  Assets held for Sale

During the fourth  quarter of 1997,  the  General  Partners  of the  Partnership
committed to a plan to dispose of Pinecliff in Colorado  Springs,  Colorado.  On
January  15,  1998,  the   Partnership   entered  into  a  Sale  Agreement  (the
"Agreement") to sell Pinecliff to an unaffiliated third party. The selling price
for  Pinecliff  is  approximately  $6,700,000.   The  Agreement  is  subject  to
completion of customary due diligence to the satisfaction of the purchaser,  and
the purchaser obtaining a financing commitment on commercially  reasonable terms
and conditions.  The Partnership  expects to consummate this sale in 1998. Under
certain  conditions,  the sale is  contingent  upon the  approval by the Limited
Partners.  As of May 13, 1998, the Partnership has received sufficient consents
from the Limited Partners, approving the sale of the property.

As it is the intent of the General Partners to pursue the sale of this property,
the  Partnership  has recorded the assets at the lower of carrying  value or net
realizable  value and has included  these amounts as Assets Held for Sale on the
Consolidated  Balance Sheet.  In accordance  with SFAS 121, the  Partnership has
stopped  depreciating  these assets effective January 1, 1998. If closing of the
sale were to occur,  any proceeds from sale will be allocated to the Partners in
accordance with the terms of the Partnership  Agreement and the Partnership will
likely be liquidated.


<PAGE>


18

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

Liquidity and Capital Resources

At March 31, 1998,  the  Partnership  had cash and cash  equivalents of $395,748
compared  with  $421,580 at December 31,  1997.  The  aggregate  net decrease of
$25,832 resulted  primarily from $33,367 received from the escrow agent relating
to the sale of Villa  Antigua,  offset  by the cash  needed  for  operations  of
$42,678,  purchase of fixed assets of $2,261,  and $14,260 of principal payments
on mortgage notes payable.

Property Status

For the  period  ended  March 31,  1998,  the  Partnership  owned  and  operated
L'Auberge Pinecliff, formerly Autumn Ridge ("Pinecliff"),  a 96-unit multifamily
rental  property  in  Colorado  Springs,  Colorado,  subject  to first  mortgage
financing  in the original  principal  amount of  $3,072,739.  During the fourth
quarter of 1997, the Partnership sold two properties: (1) Villas at Sin Vacas, a
72-unit  multifamily  rental  property  in  Tucson,  Arizona,  which was sold in
November 1997; and (2) Villa Antigua,  an 88-unit multifamily rental property in
Scottsdale,  Arizona,  which was sold in October  1997.  The  ownership  of each
property was formerly  structured  as a Joint  Venture in which the  Partnership
owned a majority interest.  With regard to the termination of the Joint Ventures
and the  sales of  properties,  see Note 5 of  Notes to  Consolidated  Financial
Statements.

Pinecliff

As  of  March  31,  1998,  the  property  was  92%  occupied,  compared  to  81%
approximately  one year ago. The market rents for the various unit types were as
follows:
                                                           Market Rents
                                                             March 31,
                       Unit Type                          1998       1997
                       ---------                          ----       ----
                  One bedroom one bath                    $930       $905
                  Two bedroom two bath                   1,155      1,109

As discussed in Note 8 of the Notes to the Consolidated Financial Statements, on
January 15, 1998,  the  Partnership  entered into a purchase and sale  agreement
(the "Agreement") to sell Pinecliff to an unaffiliated  third party. The selling
price for  Pinecliff is  approximately  $6,700,000.  The Agreement is subject to
completion of customary due diligence to the satisfaction of the purchaser,  and
the purchaser obtaining a financing commitment on commercially  reasonable terms
and conditions.  The  Partnership  expects to consummate this sale in the second
quarter of 1998.  The sale is contingent on the consent of the Limited  partners
to the dissolution. If closing of the sale were to occur, any proceeds from sale
will  be  allocated  to  the  Partners  in  accordance  with  the  terms  of the
Partnership Agreement and the Partnership will be liquidated.


<PAGE>



Results of Operations

For the three months ended March 31, 1998 the  Partnership's  operating  results
were comprised of its share of the income and expenses from  Pinecliff,  as well
as partnership level interest income earned on short term  investments,  reduced
by administrative expenses. A summary of these operating results appears below.
<TABLE>

                                                          L'Auberge  Investment  Consolidated
                                                          Pinecliff  Partnership    Total
<S>                                                      <C>         <C>          <C>      
Total revenue ........................................   $ 263,261   $   3,581    $ 266,842

Expenses:
  General and administrative .........................                   60,535      60,535
  Operations .........................................     101,538          65      101,603
  Depreciation and amortization ......................       3,640                    6,640
  Interest ...........................................      69,671                   69,671
                                                         ---------   ---------    ---------
                                                           174,849      60,600      235,449
                                                         ---------   ---------    ---------
Net income ...........................................      88,412     (57,019)   $  31,393
                                                         =========   =========    =========


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.

                                                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>

Comparison  of  Operating  Results for the Three Months Ended March 31, 1998 and
1997:

Partnership  operations  for the three months ended March 31, 1998 generated net
income of $31,393  compared  with net income of  $43,641  for the  corresponding
period in 1997. Total revenue decreased by $395,953 or 60%, due to the fact that
Villa Sin Vacas and Villa Antigua were sold in the fourth  quarter of 1997.  The
revenue  from  Pinecliff  increased  by  $33,235  or 14% due to an  increase  in
occupancy.  Operating  expenses decreased in total by $178,437 or 64% due to the
sales of the properties,  however the expenses for Pinecliff  decreased by $282.
General  and  administrative  expenses  have  increased  by $18,283 or 43%,  due
primarily to the  administrative  costs relating to the sale of the  properties,
including  legal  fees and  printing  and  mailing  costs of the  consent of the
Limited Partners for the Dissolution of the Partnership.


<PAGE>



                            PART II-OTHER INFORMATION


ITEM 1.  Legal Proceedings
         Response:  None

ITEM 2.  Changes in Securities
         Response:  None

ITEM 3.  Defaults Upon Senior Securities
         Response:  None

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

ITEM 5.  Other Information
         Response:  None

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




                                   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 15, 1998