SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                   FORM 10-KSB

                                  ANNUAL REPORT

                     Pursuant to Section 13 or 15(d) of the

                       Securities and Exchange Act of 1934

  For the fiscal year ended December 31, 1999.... Commission file number 0-13465

 National   Housing  Partnership Realty Fund I (A Maryland Limited  Partnership)
            (Exact name of registrant as specified in its charter)

                    Maryland                                52-1358879
                    --------                                ----------
         (State or other Jurisdiction of                 (I.R.S. Employer
         incorporation or organization)                 Identification No.)

        9200 Keystone Crossing, Suite 500                      46240
        ---------------------------------                      -----
                Indianapolis, IN                            (Zip Code)
                ----------------
    (Address of principal executive offices)

Registrant's telephone number, including area code:   (317) 817-7500
                                                      --------------

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

Securities  registered  pursuant  to Section  12(g) of the Act:  11,509  Limited
Partnership Interests

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding  twelve 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 ninety days.

Yes   X    No

Indicate by check mark if  disclosure of  delinquent  filers  pursuant to Item
405 of Regulation S-K is not contained herein,  and will not be contained,  to
the  best of  registrant's  knowledge,  in  definitive  proxy  or  information
statements  incorporated  by  reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB. [X]

State Issuer's revenue for its most recent fiscal year $123,000.

State the aggregate market value of the voting stock held by  non-affiliates  of
the registrant. The aggregate market value shall be computed by reference to the
price at which the stock was sold,  or the average bid and asked  prices of such
stock,  as of a  specified  date  within  the past 60 days  prior to the date of
filing.  No market for the Registrant's  limited  partnership  interests exists,
and, therefore, a market value for such interests cannot be determined.

Documents incorporated by reference.   None


<PAGE>



                  NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                        (A MARYLAND LIMITED PARTNERSHIP)

                         1999 FORM 10-KSB ANNUAL REPORT

                                TABLE OF CONTENTS

                                     PART I

                                                                 Page

      Item 1.   Business                                           2
      Item 2.   Properties                                         7
      Item 3.   Legal Proceedings                                  7
      Item 4.   Submission of Matters to a Vote of Security Holders
      7

                                     PART II

      Item 5.   Market for the Registrant's Partnership            8
                  Interests and Related Partnership Matters
      Item 6.   Management's Discussion and Analysis or Plan
                  of Operations                                    8
      Item 7.   Financial Statements                              12
      Item 8.   Changes in and Disagreements with Accountants
                  on Accounting and Financial Disclosure          31


                                    PART III

      Item 9.   Directors and Executive Officers of the Registrant32
      Item 10.  Executive Compensation                            33
      Item 11.  Security Ownership of Certain Beneficial
                  Owners and Management                           33
      Item 12.  Certain Relationships and Related Transactions    33


                                     PART IV

      Item 13.  Exhibits and Reports on Form 8-K                  35


<PAGE>


                                     PART I

Introduction

      The matters discussed in this Form 10-KSB contain certain  forward-looking
statements  and  involve  risks and  uncertainties  (including  changing  market
conditions, competitive and regulatory matters, etc.) detailed in the disclosure
contained  in this Form 10-KSB and the other  filings  with the  Securities  and
Exchange  Commission made by the Registrant from time to time. The discussion of
the Registrant's business and results of operations,  including  forward-looking
statements pertaining to such matters, does not take into account the effects of
any changes to the Registrant's business and results of operation.  Accordingly,
actual   results   could  differ   materially   from  those   projected  in  the
forward-looking  statements as a result of a number of factors,  including those
identified herein.

Item 1.     Business

      National   Housing   Partnership   Realty  Fund  I  (A  Maryland   Limited
Partnership)  (the  "Partnership"  or the  "Registrant")  was  formed  under the
Maryland Revised Uniform Limited  Partnership Act as of October 21, 1983. On May
25,  1984,  the  Partnership   commenced  offering  20,000  limited  partnership
interests,  at a price  of  $1,000  per  interest,  through  a  public  offering
registered  with the Securities and Exchange  Commission (the  "Offering").  The
Offering  was  managed by Dean  Witter  Reynolds,  Inc.  and was  terminated  on
November 29, 1984, with subscriptions for 11,519 limited partnership interests.

               On June 3, 1997,  Apartment  Investment and Management Company, a
Maryland  corporation  ("AIMCO" and,  together with its  subsidiaries  and other
controlled  entities,  the  "AIMCO  Group"),  acquired  all  of the  issued  and
outstanding  capital stock of NHP Partners,  Inc., a Delaware  corporation ("NHP
Partners"), and the AIMCO Group acquired all of the outstanding interests in NHP
Partners Two Limited Partnership,  a Delaware limited partnership ("NHP Partners
Two").  The  acquisitions  were  made  pursuant  to a  Real  Estate  Acquisition
Agreement, dated as of May 22, 1997 (the "Agreement"), by and among AIMCO, AIMCO
Properties,  L.P., a Delaware limited partnership (the "Operating Partnership"),
Demeter Holdings Corporation,  a Massachusetts  corporation ("Demeter"),  Phemus
Corporation, a Massachusetts corporation ("Phemus"),  Capricorn Investors, L.P.,
a Delaware limited  partnership  ("Capricorn"),  J. Roderick Heller, III and NHP
Partners Two LLC, a Delaware limited liability company ("NHP Partners Two LLC").
NHP  Partners  owns  all of  the  outstanding  capital  stock  of  the  National
Corporation  for  Housing  Partnerships,  a  District  of  Columbia  corporation
("NCHP"),  which is the general partner of The National Housing  Partnership,  a
District of  Columbia  limited  partnership  ("NHP" or the  "General  Partner").
Together,  NCHP  and NHP  Partners  Two own all of the  outstanding  partnership
interests in NHP. NHP is the general partner of the  Registrant.  As a result of
these  transactions,  the AIMCO Group acquired control of the general partner of
the Registrant  and,  therefore,  may be deemed to have acquired  control of the
Registrant.

Receipt of HUD Subpoena/Tolling Agreement

      In October 1997, NHP received a subpoena from the Inspector General of the
United States  Department of Housing and Urban  Development  ("HUD")  requesting
documents  relating  to any  agreement  whereby  NHP  or  any of its  affiliates
provides  or has  provided  compensation  to  owners  (or their  affiliates)  of
HUD-assisted properties in connection with management of a HUD-assisted property
(the "Transactions").  This matter has been disclosed in all filings by NHP with
the Securities and Exchange  Commission.  Documents were produced which may have
been  responsive to the HUD subpoena and submitted to the HUD Inspector  General
("HUD 16") in 1998.

      On or about  February  26, 1998,  Counsel for NHP and the U.S.  government
entered  into a Tolling  Agreement  with  respect to any  applicable  statues of
limitations  related to certain civil claims the government may have against NHP
in connection with the  Transactions.  The Tolling  Agreement  expired in August
1998.

      In July 1999,  NHP  received a grand jury  subpoena  requesting  documents
relating to the same subject matter as the HUD IG subpoenas and NHP's  operation
of a group purchasing  program created by NHP, known as Buyers Access.  To date,
neither the HUD IG nor the grand jury has  initiated  any action  against NHP or
Apartment Investment and Management Company ("AIMCO"),  the ultimate controlling
entity of NHP or, to NHP's or  AIMCO's  knowledge,  any owner of a HUD  property
managed  by NHP.  AIMCO  believes  that NHP's  operations  and  programs  are in
compliance,  in all  material  respects,  with all laws,  rules and  regulations
relating  to  HUD-assisted  or  HUD-insured   properties.   NHP  and  AIMCO  are
cooperating  with  investigations  and does not believe that the  investigations
will result in a material adverse impact on its operations. However, as with any
similar  investigation,  there can be no assurance that these will not result in
material fines, penalties or other costs.

      NHP believes its operations are in  compliance,  in all material  respects
with all laws,  rules,  and  regulations  related to HUD-assisted or HUD-insured
properties  and has retained  counsel in connection  with NHP's  response to the
subpoena. Although no action has been initiated against the Partnership, NHP, or
AIMCO or, to AIMCO's  knowledge,  any owner of a HUD property  managed by NHP or
AIMCO,  if any such action is taken in the future,  it could  ultimately  affect
existing  arrangements with respect to HUD projects or otherwise have a material
adverse affect on the results of operations of AIMCO.

      The Partnership's business is to hold limited partnership interests in ten
limited  partnerships  ("Local  Limited  Partnerships"),  each of which owns and
operates a multi-family  rental housing property  ("Properties")  which receives
one or more forms of assistance from the Federal Government.

      The Partnership  acquired interests in the Local Limited Partnerships from
sellers who originally  developed the Properties.  In each instance,  NHP is the
general  partner of the Local Limited  Partnership  and the  Partnership  is the
principal limited partner. As a limited partner, the Partnership's liability for
obligations of the Local Limited Partnerships is limited to its investment,  and
the  Partnership  does not  exercise  control over the  activities  of the Local
Limited Partnerships in accordance with the partnership agreements. See "Item 6,
Management's  Discussion  and Analysis or Plan of  Operations"  for  information
relating  to  the  Registrant's   rights  and  obligations  to  make  additional
contributions or loans to Local Limited Partnerships.

      The Partnership's investment objectives are to:

      (1)   preserve and protect Partnership capital;

      (2)   provide  current  tax  benefits  to Limited  Partners  to the extent
            permitted by law,  including,  but not limited to,  deductions  that
            Limited  Partners may use to offset  otherwise  taxable  income from
            other sources;

      (3)   provide  capital  appreciation  through  increase  in  value  of the
            Partnership's  investments,  subject  to  considerations  of capital
            preservation and tax planning; and

      (4)   provide potential cash  distributions  from sales or refinancings of
            the  Partnership's   investments  and,  on  a  limited  basis,  from
            operations.

      The  Partnership  does not have any employees.  Services are performed for
the Partnership by the General Partner and agents retained by it.


<PAGE>



      The following is a schedule of the  Properties  owned by the Local Limited
Partnerships in which the Partnership is a limited partner:

          SCHEDULE OF PROPERTIES OWNED BY LOCAL LIMITED PARTNERSHIPS
    IN WHICH NATIONAL HOUSING PARTNERSHIP REALTY FUND I HAS AN INVESTMENT
<TABLE>
<CAPTION>

                                                          Units            Occupancy
                                          Financed,     Authorized        Percentage
                                           Insured      for Rental       for the Year
                              Number         and        Assistance           Ended
  Property Name, Location       of        Subsidized      Under           December 31,
  and Partnership Name        Units         Under      Section 8 (D)     1999     1998
  --------------------        -----         -----      -------------     ----     ----

<S>                            <C>                                       <C>       <C>
Fairmeadows                    200           (A)            --           99%       99%
  Duncanville, Texas
 (Fairmeadows Limited
  Partnership)
Forest Green                   100           (A)            85           86%       95%
  Gainesville, Florida
   (Forest Green Limited
     Partnership)
Howard F. Robbins Tower        191           (A)            183          98%      100%
 Mayfield Heights, Ohio
 (Gates Mills I Limited
  Partnership)
Lakeview Apartments            100           (A)            95           99%       98%
  Fresno, California
  (Griffith       Limited
Partnership)
Northgate Village              150           (A)            49           98%       99%
  Columbus, Georgia
   (Northgate     Village
Limited
     Partnership)
Parker Square                  175           (A)            113          99%      100%
 Houston, Texas
 (Southward       Limited
 Partnership)
San Jose                       220           (A)            215          100%     100%
 San Antonio, Texas
 (San    Jose     Limited
 Partnership)
Southridge                     232           (A)            172          99%       98%
 Austin, Texas
 (Southridge   Apartments
 Limited
Partnership)
Talladega Downs                100           (A)            100          100%     100%
 Talladega, Alabama
 (Hurbell    IV   Limited
 Partnership)
Village Green                  100           (A)            77           88%       97%
 Gainesville, Florida
 (Village Green Limited
  Partnership
</TABLE>

(A)   The mortgage is insured by the Federal  Housing  Administration  under the
      provisions of Section 236 of the National Housing Act.

(B)   Section 8 of Title II of the  Housing  and  Community  Development  Act of
      1974.

      Although  each Local  Limited  Partnership  in which the  Partnership  has
invested  owns an apartment  complex  which must  compete  with other  apartment
complexes for tenants,  government  mortgage interest and rent subsidies make it
possible to rent units to eligible  tenants at below market  rates.  In general,
this insulates the Properties from market competition.

      The  Federal  Housing  Administration  (FHA) has  contracted  with the ten
subsidized  rental  projects  under  Section  8 of Title II of the  Housing  and
Community  Development  Act of 1974 to make housing  assistance  payments to the
Local  Limited  Partnerships  on behalf of qualified  tenants.  The terms of the
agreements are five years with one or two five year renewal options.

      For the past several  years,  various  proposals have been advanced by the
United States Department of Housing and Urban Development ("HUD"),  Congress and
others  proposing the  restructuring of HUD's rental  assistance  programs under
Section 8 of the United States  Housing Act of 1937  ("Section  8"), under which
1,089 units,  69 percent of the total units owned by the properties in which the
Partnership  has invested,  receive rental  subsidies.  On October 27, 1997, the
President   signed  into  law  the  Multifamily   Assisted  Housing  Reform  and
Affordability Act of 1997 (the "1997 Housing Act").  Under the 1997 Housing Act,
certain properties  assisted under Section 8, with rents above market levels and
financed with  HUD-insured  mortgage  loans,  will be  restructured by adjusting
subsidized rents to market levels,  thereby potentially reducing rent subsidies,
and lowering required debt service costs as needed to ensure financial viability
at  the  reduced  rents  and  rent  subsidies.  The  1997  Housing  Act  retains
project-based  subsidies for most properties  (properties in rental markets with
limited supply,  properties serving the elderly,  and certain other properties).
The 1997 Housing Act phases out project-based  subsidies on selected  properties
servicing families not located in rental markets with limited supply, converting
such subsidies to a tenant-based  subsidy.  Under a  tenant-based  system,  rent
vouchers would be issued to qualified  tenants who then could elect to reside at
properties of their choice,  provided such tenants have the financial ability to
pay the difference between the selected  properties'  monthly rent and the value
of the vouchers, which would be established based on HUD's regulated fair market
rent for the relevant  geographical  areas.  With respect to Housing  Assistance
Payments Contracts ("HAP Contracts")  expiring before October 1, 1998,  Congress
elected to renew them for one-year  terms,  generally at existing rents, so long
as the  properties  remain  in  compliance  with the HAP  Contracts.  While  the
Partnership  does not expect the provisions of the 1997 Housing Act to result in
a significant  number of tenants  relocating from properties  owned by the Local
Limited  Partnerships,  there can be no assurance that the  provisions  will not
significantly  affect the  operations  of the  properties  of the Local  Limited
Partnerships.  Furthermore,  there can be no  assurance  that  other  changes in
Federal  housing  subsidy policy will not occur.  Any such changes could have an
adverse effect on the operation of the Partnership.

      The  following  table  indicates  the year within which the Section 8 rent
subsidy contracts expire:

                                        Subsidized Units  Subsidized Units
                                          Expiring as a     Expiring as a
                           Number      Percentage of Total  Percentage of
                          of Units      Subsidized Units        Total Units

               2000        1,073               99%               68%
               2001           --               --                --
         Thereafter           16                1%                1%
                          ------             ----               ---

              Total        1,089              100%               69%
                           =====              ===                ==

      Of the units (1,089 in total)  receiving  rent  subsidies  from Section 8,
1,073 of the units have their contracts expiring during the year ending December
31,  2000.  HUD has issued  new  regulations  that  govern  the  continuance  of
project-based  subsidies.  Under the new regulations,  owners with HAP contracts
expiring  after  September 30, 1998 may elect to (1) renew the contract  without
restructuring  for one year, (2) opt out of the contract,  or (3) enter into the
Mark-to Market program, which includes a potential restructuring of the mortgage
and renewal of the contract.  At this time it is not possible to determine which
option each of the Local Limited Partnerships will elect, and accordingly, it is
not possible to determine  the ultimate  impact on the  operations  of the Local
Limited Partnerships.

Regulation

      General

      Multifamily  apartment properties are subject to various laws,  ordinances
and regulations,  including regulations relating to recreational facilities such
as swimming  pools,  activity  centers and other common  areas.  Changes in laws
increasing  the potential  liability for  environmental  conditions  existing on
properties or increasing the restrictions on discharges or other conditions,  as
well  as  changes  in  laws  effecting  development,   construction  and  safety
requirements, may result in significant unanticipated expenditures,  which would
adversely  affect the  Partnership's  cash flow from  operating  activities.  In
addition,  future enactment of rent control or rent  stabilization laws or other
laws  regulating  multi-family  housing  may reduce  rental  revenue or increase
operating costs in particular markets.

      HUD Approval and Enforcement

A  significant  number of  properties  owned by the  Partnership  are subject to
regulations by HUD. Under its regulations, HUD reserves the right to approve the
owner and the manager of HUD-insured  and  HUD-assisted  properties,  as well as
their  "principals"  (e.g.  general  partners,  stockholders with 10% or greater
interest,  officers and  directors)  in  connection  with the  acquisition  of a
property,  participation in HUD programs or the award of a management  contract.
This approval process is commonly  referred to as "2530 Clearance." HUD monitors
the performance of properties with HUD-insured mortgage loans. HUD also monitors
compliance with  applicable  regulations,  and takes  performance and compliance
into  account  in  approving  the  acquisition  of  management  of  HUD-assisted
properties.  In  the  event  of  instances  of  unsatisfactory  performances  or
regulatory  violations,  the HUD office with  jurisdiction  over the  applicable
property  has the  authority  to  enter a  "flag"  into  the  computerized  2530
Clearance system. If one or more flags have been entered,  a decision whether to
grant  2530   Clearance  is  then   subject  to  review  by  HUD's   Multifamily
Participation  Review Committee in Washington,  D.C. (the 2530 Committee).  As a
result of certain mortgage defaults and  unsatisfactory  ratings received by NHP
Incorporated in years prior to its  acquisition by AIMCO in December,  1997, HUD
believes that the 2530 Committee must review any  application for 2530 Clearance
filed by AIMCO. On December 18, 1998,  AIMCO received  approval of approximately
fifty 2530  applications  and had no  unresolved  flags in the 2530 system as of
December 31, 1998. As a result of HUD's review of 2530 applications  during 1999
two  unresolved  flags existed at December 31, 1999.  Subsequent to December 31,
1999 one of these flags was resolved and the other is currently being addressed.

    Laws Benefiting Disabled Persons

      Under the Americans  with  Disabilities  Act of 1990, all places of public
accommodations  are required to meet  certain  Federal  requirements  related to
access and use by disabled persons. These requirements became effective in 1992.
A  number  of  additional  Federal,  state  and  local  laws  may  also  require
modifications to the Properties,  or restrict certain further renovations of the
Properties, with respect to access thereto by disabled persons. For example, the
Fair Housing Amendments Act of 1988 requires apartment properties first occupied
after March 13, 1990 to be accessible  to the  handicapped.  Noncompliance  with
these laws  could  result in the  imposition  of fines or an award of damages to
private litigants and also could result in an order to correct any non-complying
feature,  which could result in substantial capital  expenditures.  Although the
Partnership  believes that its properties are  substantially  in compliance with
present requirements,  it may incur unanticipated  expenses to comply with these
laws.

      Regulation of Affordable Housing

      As of December 31, 1999,  the  Partnership  held an equity  interest in 10
properties that benefit from government  programs intended to provide housing to
people  of  low  or  moderate  incomes.   These  programs,   which  are  usually
administered by the HUD or state housing  finance  agencies,  typically  provide
mortgage  insurance,  favorable financing terms or rental assistance payments to
the property  owners.  As a condition to the receipt of  assistance  under these
programs, the properties must comply with various requirements,  which typically
limit  rents to  pre-approved  amounts.  If  permitted  rents on a property  are
insufficient to cover costs, a sale of the property may become necessary,  which
could result in a loss of the Partnership's interest in the property, as well as
any benefits flowing from the property. The Partnership must obtain the approval
of HUD  in  order  to  acquire  a  significant  interest  in a  HUD-assisted  or
HUD-insured property.  The Partnership can make no assurance that it will always
receive such approval.

      Environment

      Various Federal, state and local laws subject property owners or operators
to  liability  for the costs of removal  or  remediation  of  certain  hazardous
substances  present on a  property.  Such laws often  impart  liability  without
regard to whether the owner or operator  knew of, or was  responsible  for,  the
release of the  hazardous  substances.  The  presence of, or failure to properly
remediate,  hazardous  substances may adversely affect occupancy at contaminated
apartment  communities and the  Partnership's  ability to sell or borrow against
contaminated properties.  In addition to the costs associated with investigation
and  remediation  actions  brought by  governmental  agencies,  the  presence of
hazardous wastes on a property could result in personal injury or similar claims
by  private  plaintiffs.  Various  laws also  impose  liability  for the cost of
removal or  remediation of hazardous or toxic  substances is potentially  liable
under such laws.  These laws often  impose  liability  whether or not the person
arranging  for the disposal  ever owned or operated the  disposal  facility.  In
connection with the ownership or operation of properties,  the Partnership could
potentially be liable for environmental liabilities or costs associated with its
properties or properties it may acquire in the future.

      Management  believes  that the  Partnership's  properties  are  covered by
adequate fire, flood and property insurance provided by reputable  companies and
with commercially reasonable deductibles and limits.

   Ownership Percentages

      The following table details the Partnership's ownership percentages of the
Local Limited  Partnerships  and the cost of acquisition of such ownership.  All
interests are limited  partner  interests.  Also included is the total  mortgage
encumbrance  on each property for each of the Local Limited  Partnerships  as of
December 31, 1999.


                NHP Realty Fund I  Original Cost
                   Percentage      of Ownership    Mortgage   Notes Payable and
Partnership         Interest        Interest       Notes    Accrued Interest (1)
                                                                (in thousands)
Fairmeadows L.P.         99%          $1,091     $  1,676          $5,266
Forest Green L.P.        99%             420          850              --
Gates Mills I L.P.       98%           1,561        2,021           6,733
Griffith L.P.            99%             631          909           2,836
Northgate   Village      99%             621        1,246           2,464
L.P.
Southward L.P.           99%            917         1,384           3,815
San Jose L.P.            99%           1,156        1,791           4,306
Southridge    Apts.      99%           1,344        1,971           5,515
L.P.

Hurbell IV L.P.          99%             372          967           1,534
Village Green L.P.       99%             430          716              --

(1)   See  "Item  6.   Management's   Discussion   and  Analysis  or  Plan  of
Operations" for further details.

Item 2.     Properties

      See  Item 1 for the  real  estate  owned by the  Partnership  through  the
ownership of limited partnership interests in Local Limited Partnerships.

Item 3.     Legal Proceedings

      In 1997,  NHP received  subpoenas  from the HUD Inspector  General  ("IG")
requesting  documents  relating  to  arrangements  whereby  NHP  or  any  of its
affiliates  provided  compensation  to owners  of  HUD-assisted  or  HUD-insured
multi-family  projects in exchange for or in connection with property management
of a HUD project.

      In July 1999,  NHP  received a grand jury  subpoena  requesting  documents
relating to the same subject matter as the HUD IG subpoenas and NHP's  operation
of a group purchasing  program created by NHP, known as Buyers Access.  To date,
neither the HUD IG nor the grand jury has  initiated  any action  against NHP or
Apartment Investment and Management Company ("AIMCO"),  the ultimate controlling
entity of NHP or, to NHP's or  AIMCO's  knowledge,  any owner of a HUD  property
managed  by NHP.  AIMCO  believes  that NHP's  operations  and  programs  are in
compliance,  in all  material  respects,  with all laws,  rules and  regulations
relating  to  HUD-assisted  or  HUD-insured   properties.   NHP  and  AIMCO  are
cooperating  with  investigations  and does not believe that the  investigations
will result in a material adverse impact on its operations. However, as with any
similar  investigation,  there can be no assurance that these will not result in
material fines, penalties or other costs.

The  partnership is unaware of any other pending or outstanding  litigation that
is not of a routine nature arising in the ordinary course of business.

Item 4.     Submission of Matters to a Vote of Security Holders
-------     ---------------------------------------------------

      No matters were submitted.


<PAGE>



                                     PART II

Item 5.     Market for the  Registrant's  Partnership  Interests  and Related
      Partnership Matters

      (a)   Interests in the  Partnership  were sold  through a public  offering
            managed by Dean Witter Reynolds, Inc. There is no established market
            for resale of interests in the Partnership. Accordingly, an investor
            may be unable to sell or otherwise dispose of his or her interest in
            the Partnership.

      (b)   As of December 31, 1999,  there were 1,111  registered  holders of
            11,509  limited   partnership   interests  (in  addition  to  1133
            Fifteenth Street Associates - See "Item 7. Financial  Statements -
            Note  1").  In 1999,  the  number  of  Limited  Partnership  Units
            decreased by 10 units due to Limited  Partners  abandoning  his or
            her units. In abandoning his or her Limited  Partnership  Unit(s),
            a Limited Partner  relinquishes all rights,  title and interest in
            the Partnership as of the date of abandonment.

      (c)   No cash  dividends  or  distributions  have been  declared  from the
            inception of the Partnership to December 31, 1999.

Item 6.     Management's  Discussion and Analysis of Financial  Condition and
Results of Operations

      The matters discussed in this Form 10-KSB contain certain  forward-looking
statements  and  involve  risks and  uncertainties  (including  changing  market
conditions, competitive and regulatory matters, etc.) detailed in the disclosure
contained  in this Form 10-KSB and the other  filings  with the  Securities  and
Exchange  Commission made by the Registrant from time to time. The discussion of
the Registrant's business and results of operations,  including  forward-looking
statements pertaining to such matters, does not take into account the effects of
any changes to the Registrant's business and results of operation.  Accordingly,
actual   results   could  differ   materially   from  those   projected  in  the
forward-looking  statements as a result of a number of factors,  including those
identified herein.

      This item should be read in conjunction with the financial  statements and
other items contained elsewhere in this report.

Year 2000 Compliance

General Description

      The Year 2000 issue is the result of computer programs being written using
two  digits  rather  than  four  digits  to  define  the  applicable  year.  The
Partnership  is  dependent  upon the  General  Partner  and its  affiliates  for
management and administrative  services ("Managing Agent").  Any of the Managing
Agent's  computer  programs  or  hardware  that had  date-sensitive  software or
embedded  chips might have  recognized a date using "00" as the year 1900 rather
than  the  year  2000.   This  could  have  resulted  in  a  system  failure  or
miscalculations  causing  disruptions  of  operations,  including,  among  other
things, a temporary inability to process transactions,  send invoices, or engage
in similar normal business activities.

Computer Hardware, Software and Operating Equipment

      In 1999, the Managing Agent  completed all phases of its Year 2000 program
by completing the  replacement  and repair of any hardware or software system or
operating  equipment that was not yet Year 2000 compliant.  The Managing Agent's
hardware  and software  systems and its  operating  equipment  are now Year 2000
compliant.  No  material  failure or  erroneous  results  have  occurred  in the
Managing Agent's computer  applications  related to the failure to reference the
Year 2000 to date.

Third Parties

      To date,  the Managing Agent is not aware of any  significant  supplier or
subcontractor  (external agent) or financial institution of the Partnership that
has a Year 2000 issue that  would  have a material  impact on the  Partnership's
results of operations,  liquidity or capital  resources.  However,  the Managing
Agent  has no means of  ensuring  or  determining  the Year 2000  compliance  of
external  agents.  At this time, the Managing Agent does not believe that a Year
2000 issue of any  non-compliant  external agent will have a material  impact on
the Partnership's financial position or results of operations.

Costs

      The total cost of the Managing Agent's Year 2000 project was approximately
$3.2 million and was funded from operating cash flows.

Risks Associated with the Year 2000

      The Managing Agent completed all necessary phases of its Year 2000 program
in 1999, and did not experience  system or equipment  malfunctions  related to a
failure to reference the Year 2000. The Managing  Agent or Partnership  have not
been  materially  adversely  effected by  disruptions  in the economy  generally
resulting from the Year 2000 issue.

      At this time, the Managing  Agent does not believe that the  Partnership's
businesses,  results of  operations  or financial  condition  will be materially
adversely effected by the Year 2000 issue.

Contingency Plans Associated with the Year 2000

      The  Managing  Agent has not had to  implement  contingency  plans such as
manual  workarounds or selecting new  relationships  for its banking or elevator
operation activities in order to avoid the Year 2000 issue.

Liquidity and Capital Resources

     The  Properties  in  which  the  Partnership  has  invested,   through  its
investments  in the Local  Limited  Partnerships,  receive  one or more forms of
assistance  from  the  Federal  Government.  As  a  result,  the  Local  Limited
Partnerships'  ability to  transfer  funds  either to the  Partnership  or among
themselves  in the form of cash  distributions,  loans or advances is  generally
restricted by these government assistance programs. These restrictions, however,
are  not  expected  to  impact  the  Partnership's  ability  to  meet  its  cash
obligations.

      As discussed in Note 6 to the combined financial statements,  eight of the
Local  Limited  Partnerships  in which the  Partnership  has invested have notes
payable  to  the  original  owner  of  each  Property.  With  the  exception  of
Fairmeadows and Southridge,  these notes were due between 1997 and 1999, and are
currently in default. Fairmeadows and Southridge are currently in default due to
non-payment of required  annual  interest  payments for 1999 (see below).  These
notes are secured by both the  Partnership's  and NHP's  interests  in the Local
Limited Partnerships.  The noteholders have not exercised their rights under the
notes, including the foreclosure on NHP's and the Partnership's interests in the
Local  Limited  Partnerships.  There can be no assurance as to when, or if, such
holders may seek to exercise such rights.

      The  Fairmeadows  and  Southridge  note,  both of  which  were  issued  in
connection with the Partnership's initial acquisition of the property, initially
accrued interest at the rate of 10% per annum. The notes are nonrecourse and are
secured by a security interest in all partnership  interests in the Partnership.
In 1996, the Partnership and the holders of the Fairmeadows and Southridge notes
entered  into a  Modification,  Renewal and  Extension of Liens  Agreement  (the
Agreement)  which  extended  the  maturity  of the notes to  December  1,  2011.
Interest  on the notes  continues  to accrue  at 10% and is due and  payable  at
maturity;  provided,  however,  that minimum annual installments of interest are
paid on or before  December 31 of each year  through  December  31,  2010.  Such
minimum  annual  installment  increases  each year by not less than 2.5% and not
more than 5%, based on the Consumer Price Index for All Urban Consumers (CPI-U).
No minimum payments were paid in 1999 on either note.

      The difference  between the accrued  interest  recorded as of December 31,
1995 and the amount  specified in the  Agreements  is being  amortized  over the
remaining  term of the  notes as a  reduction  of  interest  expense  using  the
effective  interest  rate yield  method.  Amortization  of accrued  interest  of
approximately  $60,000 and $18,000 for Fairmeadows and Southridge  respectively,
was recorded in 1999.

      Griffith, Southward, Northgate Village, San Jose, Gates Mill I and Hurbell
IV Limited  Partnerships  all have notes which were  executed by the  respective
Local Limited  Partnerships  with the seller as part of the  acquisition  of the
property by the Local  Limited  Partnership.  The notes were  nonrecourse  notes
secured by a security interest in all partnership interests in the Local Limited
Partnership  and are  subordinated  to the  respective  mortgage  notes  on each
property for as long as the mortgage  notes are insured by HUD. Any payments due
from  project  income  are  payable  from  surplus  cash,  as defined by the HUD
Regulatory  Agreement.  Neither the Limited Partnership nor any partner thereof,
present or future,  assume any personal  liability for the payment of the notes.
The notes were due October 31, 1997,  October 4, 1998, July 26, 1999, August 29,
1999, October 1, 1999, and November 9, 1999, respectively. Interest continues to
be paid or accrued under the original terms of the respective  agreements.  Each
note is in default and the Local  Limited  Partnership  interests are subject to
potential   foreclosure.   Continuation  of  the  Local  Limited   Partnerships'
operations  in the  present  form is  dependent  on its  ability  to extend  the
maturity date of their  respective  notes,  or to repay or refinance their note.
The financial  statements do not include any adjustments which might result from
the outcome of this uncertainty.

      During 1999 and 1998,  no advances were made by the  Partnership  to Local
Limited Partnerships. Repayments of advances of approximately $8,000, and $7,000
and accrued interest of approximately  $9,000 and $18,000 were received from one
and two Local Limited Partnerships during 1999 and 1998, respectively.

      During 1998, the General Partner advanced approximately  $101,000, to five
Local Limited  Partnerships,  to fund  partnership  entity  expenses,  including
expenses  incurred  relating to  potential  sales or  refinancing  under the Low
Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA). No
advances  were made in 1999.  During 1999 and 1998,  two and three Local Limited
Partnerships,  respectively,  made payments of principal of approximately $8,000
and $4,000. At December 31, 1999, the balance owed to the General Partner by the
Local  Limited  Partnerships  was  approximately  $363,000,   including  accrued
interest of  approximately  $9,000.  Interest on these  advances is charged at a
rate  equal to the Chase  Manhattan  Bank  prime  interest  rate plus 2%.  Chase
Manhattan Bank prime was 8.25% at December 31, 1999.

      Net cash provided by operations  for the year ended  December 31, 1999 was
approximately  $14,000  compared to net cash used in operations of approximately
$36,000 in 1998.  The increase in cash provided by operations was a result of an
increase  in the  receipt  distributions  in excess of the  investment  in Local
Limited Partnerships partially offset by slight increase in operating expenses.

      Distributions   received  in  excess  of   investment   in  Local  Limited
Partnerships represent the Partnership's  proportionate share of the excess cash
available for distribution from the Local Limited  Partnerships.  As a result of
the use of the equity method of accounting for the  Partnership's  investment in
Local Limited  Partnerships,  investment  carrying  values for each of the Local
Limited  Partnerships  has decreased to zero.  Cash  distributions  received are
recorded in revenues as distributions  received in excess of investment in Local
Limited  Partnerships.  Cash distributions of approximately  $79,000 and $19,000
were  received  from five and one Local  Limited  Partnerships  during the years
ended  December  31,  1999  and  1998,   respectively.   The  receipt  of  these
distributions  in future years is dependent on the  operations of the underlying
properties of the Local Limited Partnerships.

      The Partnership had cash and cash equivalents of approximately  $23,000 at
December 31, 1999. The Partnership had no cash and cash  equivalents at December
31, 1998. The ability of the Partnership to meet its on-going cash requirements,
in excess of cash on hand at December  31, 1999,  is dependent on  distributions
from  recurring  operations  received from the Local Limited  Partnerships,  and
proceeds from the sales or  refinancings  of the  underlying  properties.  Total
distributions   received   from  Local   Limited   Partnerships   increased   to
approximately $79,000 in 1999 from $19,000 in 1998. The Partnership's only other
form of  liquidity  is from  General  Partner  loans.  The General  Partner will
evaluate lending the Partnership  additional funds as such funds are needed, but
is in no way legally obligated to make such loans.

      During 1999 and 1998, the General Partner  advanced  approximately  $1,000
and $3,000  respectively,  to the  Partnership  to pay  operating  expenses.  No
repayments  of  advances  were  made by the  Partnership  during  1999 and 1998.
Interest is charged on borrowing at the Chase Manhattan Bank prime interest rate
plus 2%. Chase  Manhattan  Bank prime was 8.25% at December  31, 1999.  Interest
accrued for both the years ended  December  31, 1999 and 1998 was  approximately
$1,000  which is  included  in other  operating  expenses  on the  Partnership's
Statement of Operations.

      As of  December  31,  1999,  the  Partnership  owes  the  General  Partner
approximately  $1,003,000 for administrative  and reporting services  performed.
During the years ended  December 31, 1999 and 1998, no payments were made by the
Partnership to the General Partner for  administrative  and reporting  services.
There is no guarantee that the Local Limited  Partnerships  will generate future
surplus cash sufficient to distribute to the Partnership in amounts  adequate to
repay  administrative and reporting fees owed; rather, the payment of the unpaid
administrative and reporting fees and other advances to the General Partner will
most likely result from the sale or refinancing of the underlying  properties of
the Local Limited Partnerships, rather than through recurring operations.


<PAGE>



Results of Operations

      The  Partnership  has  invested  as a  limited  partner  in Local  Limited
Partnerships which operate ten rental housing properties.  Due to the use of the
equity  method  of  accounting  as  discussed  in  Note 1 to  the  Partnership's
financial  statements,  to the extent the Partnership still has a carrying basis
in a  respective  Local  Limited  Partnership,  results of  operations  would be
impacted  by the  Partnership's  share of the  profits  or  losses  of the Local
Limited  Partnerships.  As of December 31, 1995, the Partnership had no carrying
basis in any of the Local Limited  Partnerships and reflected no share of losses
for Local Limited Partnerships in 1995. However,  during the year ended December
31,  1996,  Forest  Green  and  Village  Green  Limited  Partnerships  completed
discounted  buyout  agreements  for early  settlement of their notes payable and
related  accrued  interest  payable  to  former  owner,  resulting  in  gains of
approximately $1,368,000 and $1,379,000, respectively, for the two Local Limited
Partnerships.  The  Partnership  has  recorded  its  net  share  of  profits  of
approximately  $35,000 and $32,000 in the two Local Limited Partnerships for the
years ended December 31, 1999 and 1998, respectively.

      The Partnership realized a net loss of approximately  $21,000 for the year
ended December 31, 1999, compared to a net loss of approximately $99,000 for the
year ended December 31, 1998. Net loss per unit of limited partnership  interest
decreased from $8.40 to $1.82 for the units outstanding at December 31, 1998 and
1999,  respectively.  The decrease in net loss was primarily due to the increase
in the  receipt  of  distributions  in excess  of  investment  in Local  Limited
Partnerships  which were slightly  offset by a decrease in interest  received on
advances to Local Limited Partnerships.

      The  Partnership  did  not  recognize  approximately   $1,183,000  of  its
allocated  share of losses from seven Local  Limited  Partnerships  for the year
ended  December 31, 1999, as the  Partnership's  net carrying  basis in them was
reduced  to zero in a prior  year  (see  Note 2 to the  Partnership's  financial
statements).  The  Partnership's  share of  profits  and  losses  from the Local
Limited  Partnerships,  if not limited to its investment account balance,  would
have decreased by approximately $126,000 between years.

Item 7.     Financial Statements

      The  financial  statements  of the  Partnership  are  included on pages 12
through 30 of this report.


<PAGE>






                          Independent Auditors' Report

To The Partners of

   National Housing Partnership Realty Fund I
Indianapolis, Indiana

We have audited the  accompanying  statement  of financial  position of National
Housing Partnership Realty Fund I (the Partnership) as of December 31, 1999, and
the related statements of operations, partners' (deficit) equity, and cash flows
for each of the two years in the period ended December 31, 1999. These financial
statements  are  the  responsibility  of  the  Partnership's   management.   Our
responsibility  is to express an opinion on these financial  statements based on
our audits.  We did not audit the financial  statements of Gates Mills I Limited
Partnership or Hurbell IV Limited Partnership (investees of the Partnership) for
the year ended  December  31, 1999 or Gates Mill I Limited  Partnership  for the
year ended December 31, 1998. The accompanying  statement of operations includes
approximately $12,000 of distributions in excess of investment from Gates Mill I
Limited  Partnership  for both the year ended  December  31, 1999 and 1998.  The
financial  statements of these  investees  were audited by other  auditors whose
reports have been  furnished  to us, and our  opinion,  insofar as it relates to
amounts  included  for these  investees,  is based  solely on the reports of the
other auditors.

We conducted our audit in accordance with auditing standards  generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable  assurance about whether the financial  statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting  the amounts and  disclosures in the financial  statements.  An audit
also includes assessing the accounting principles used and significant estimates
made by  management,  as well as  evaluating  the  overall  financial  statement
presentation.  We  believe  that our audits  and the  reports of other  auditors
provide a reasonable basis for our opinion.

In our  opinion,  based upon our audits and the reports of other  auditors,  the
financial statements referred to above present fairly, in all material respects,
the financial position of National Housing Partnership Realty Fund I at December
31, 1999,  and the results of its  operations and its cash flows for each of the
two years in the periods ended December 31, 1999 in conformity  with  accounting
principles generally accepted in the United States.

As discussed in Note 6 to the financial statements,  the due dates of certain of
the Local Partnership's notes payable have expired, and therefore, the notes are
in default.  These  conditions  raise  substantial  doubt about their ability to
continue  as a going  concern.  The  financial  statements  do not  include  any
adjustments that might result from the outcome of these uncertainties.

                                                         /s/Ernst & Young  LLP
Indianapolis, Indiana
March 6, 2000


<PAGE>


                  NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                              A LIMITED PARTNERSHIP

                        STATEMENTS OF FINANCIAL POSITION

                                December 31, 1999

                       (in thousands, except unit data)

                          ASSETS

   Cash and cash equivalents
                                                            $ 23
   Investments in and advances to Local Limited
   Partnerships (Note 2)                                   1,840
                                                           -----
                                                          $1,863
           LIABILITIES AND PARTNERS' (DEFICIT)

Liabilities:
   Administrative and reporting fee payable to
      General Partner (Note 3)
                                                           1,003
   Due to General Partner (Note 3)
                                                               9
   Accrued interest on partner loans (Note 3)
                                                               2
   Accrued expenses

                                                              38

                                                           1,052

Partners' (deficit) equity:
General Partner -- The National Housing Partnership(NHP)     (87)
Original  Limited  Partner -- 1133 Fifteenth  Street
 Associates                                                  (92)
Other Limited Partners -- 11,509 investment units            990

                                                             811
                                                    $      1,863

                      See notes to financial statements.


<PAGE>


                  NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                              A LIMITED PARTNERSHIP

                            STATEMENTS OF OPERATIONS

                       (in thousands, except unit data)

                                                    Years Ended December 31,
                                                        1999         1998
                                                        ----         ----

REVENUES:
  Share of profits from Local Limited Partnerships
 (Note 2)                                                35           32
  Interest income                                        --            1

  Interest received on advances to Local Limited
  Partnerships (Note 2)                                   9           17

  Distributions in excess of investment in Local
  Limited Partnership (Note 2)                           79           19

                                                        123           69
COST AND EXPENSES:
  Administrative and reporting fees to General
  Partner (Note 3)                                       86           86
  Interest expense on loan from General Partner
  (Note 3)                                                1            1
  Other operating expenses                               57           81

                                                        144          168

NET LOSS                                                (21)         (99)

ALLOCATION OF NET LOSS:
  General Partner - NHP                                  --           (1)
  Original Limited Partner - 1133 Fifteenth Street
  Four Associates                                        --           (1)
  Other Limited Partners                                (21)         (97)

                                                        (21)         (99)

NET LOSS PER OTHER LIMITED PARTNERSHIP
  INTEREST (Note 2)                                   (1.82)       (8.40)


                      See notes to financial statements.


<PAGE>


                  NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                              A LIMITED PARTNERSHIP

                   STATEMENTS OF PARTNERS' (DEFICIT) EQUITY

                       (in thousands, except unit data)



                                    The
                                  National      1133
                                  Housing     Fifteenth     Other
                                 Partnership   Street      Limited
                                   (NHP)     Associates    Partners     Total

(Deficit) equity at
  January 1, 1998             $      (86)  $      (91) $    1,108   $      931

Net loss for the year ended
  December 31, 1998                   (1)          (1)        (97)         (99)

(Deficit) Equity at
  December 31, 1998                  (87)         (92)      1,011          832

Net loss for the year ended
  December 31, 1999                   --           --         (21)         (21)

(Deficit) equity at
  December 31, 1999           $      (87) $       (92)   $    990  $       811

Percentage interest at
  December 31, 1999 and 1998          1%           1%          98%

                                      (A)          (B)           (C)

(A)   General Partner

(B)   Original Limited Partner

(C)  Consists  of  11,509  investment  units at  December  31,  1999 and  11,519
     investment units at December 31, 1998. During 1999, 10 units were abandoned
     (Note 7).

                      See notes to financial statements.


<PAGE>


                  NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                              A LIMITED PARTNERSHIP

                            STATEMENTS OF CASH FLOWS

                                (in thousands)

                                          Years Ended December 31,

                                              1999        1998

CASH FLOWS FROM OPERATING ACTIVITIES:
   Interest received                            --           1
   Interest received on advances to Local
   Limited Partnerships                          9          17
   Distributions in excess of investment
    in Local Limited Partnerships                79          12
   Operating expenses paid                      (74)        (66)

   Net cash provided by (used in) operating
   activities                                    14         (36)

CASH FLOWS FROM INVESTING ACTIVITIES:
   Repayment of advances to Local Limited
    Partnerships                                  8           7

   Net cash provided by investing activities      8           7

CASH FLOWS FROM FINANCING ACTIVITIES:
   Advances from General Partner                  1           3
   Net cash provided by financing activities      1           3

NET INCREASE (DECREASE) IN CASH AND CASH
  EQUIVALENTS                                    23         (26)

CASH AND CASH EQUIVALENTS, BEGINNING
  OF YEAR                                        --          26

CASH AND CASH EQUIVALENTS, END OF YEAR   $       23 $        --

RECONCILIATION OF NET LOSS TO NET CASH
  USED IN OPERATING ACTIVITIES:
Net  loss                               $       (21)$       (99)

Adjustments to reconcile net loss to net cash
 used in operating activities:
  Share of profits from Local Limited
  Partnerships                                  (35)        (32)
  Repayment of advances to Local Limited
  Partnerships                                   --          (7)
  Increase in administrative and reporting
   fees payable to General Partner               86          86
  Increase in accrued interest
   on partner loans                               1           1
  (Decrease) increase in accrued expenses       (17)          15

    Total adjustments                            35          63

  Net cash provided by (used in) operating
   activities                          $        14  $       (36)


                      See notes to financial statements.


<PAGE>


                  NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                              A LIMITED PARTNERSHIP

                          NOTES TO FINANCIAL STATEMENTS

1.    SUMMARY OF PARTNERSHIP ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

      Organization

      National  Housing  Partnership  Realty  Fund I (the  "Partnership"  or the
"Registrant") is a limited partnership  organized under the laws of the State of
Maryland under the Maryland  Revised Uniform Limited  Partnership Act on October
21,  1983.  The  Partnership  was formed for the  purpose of raising  capital by
offering and selling limited partnership interests and then investing in limited
partnerships  (Local Limited  Partnerships),  each of which owns and operates an
existing  rental housing  project which is financed  and/or operated with one or
more forms of rental assistance or financial assistance from the U.S. Department
of  Housing  and  Urban  Development  (HUD).  On  May  25,  1984,  inception  of
operations,  the Partnership  began raising  capital and acquiring  interests in
Local Limited Partnerships.

      The General Partner was authorized to raise capital for the Partnership by
offering  and selling not more than 20,000  limited  partnership  interests at a
price of $1,000 per  interest.  During 1984,  the sale of  interests  was closed
after the sale of 11,519 interests to limited partners.

      During 1984, the Partnership acquired limited partnership interests of 99%
in nine Local Limited  Partnerships  and 98% in one Local  Limited  Partnership.
Each Local Limited  Partnership was organized to acquire and operate an existing
rental housing project.

      On June 3, 1997,  Apartment  Investment and Management Company, a Maryland
corporation  ("AIMCO" and,  together with its  subsidiaries and other controlled
entities, the "AIMCO Group"), acquired all of the issued and outstanding capital
stock of NHP Partners,  Inc., a Delaware  corporation ("NHP Partners"),  and the
AIMCO Group  acquired  all of the  outstanding  interests  in NHP  Partners  Two
Limited  Partnership,  a Delaware limited  partnership ("NHP Partners Two"). The
acquisitions were made pursuant to a Real Estate Acquisition Agreement, dated as
of May 22, 1997 (the "Agreement"), by and among AIMCO, AIMCO Properties, L.P., a
Delaware  limited  partnership (the "Operating  Partnership"),  Demeter Holdings
Corporation,  a Massachusetts  corporation  ("Demeter"),  Phemus Corporation,  a
Massachusetts  corporation  ("Phemus"),  Capricorn  Investors,  L.P., a Delaware
limited partnership ("Capricorn"),  J. Roderick Heller, III and NHP Partners Two
LLC, a Delaware limited liability company ("NHP Partners Two LLC"). NHP Partners
owns all of the  outstanding  capital  stock  of the  National  Corporation  for
Housing Partnerships,  a District of Columbia corporation ("NCHP"), which is the
general  partner of The  National  Housing  Partnership,  a District of Columbia
limited  partnership ("NHP" or the "General  Partner").  Together,  NCHP and NHP
Partners Two own all of the outstanding partnership interests in NHP. NHP is the
general partner of the Registrant. As a result of these transactions,  the AIMCO
Group has  acquired  control  of the  general  partner  of the  Registrant  and,
therefore, may be deemed to have acquired control of the Registrant.

      The Original  Limited Partner of the Partnership is 1133 Fifteenth  Street
Associates,  whose  limited  partners were key employees of NCHP at the time the
Partnership was formed and whose general partner is NHP.

      Significant Accounting Policies

      The financial  statements of the  Partnership  are prepared on the accrual
basis of accounting. Direct costs of acquisition, including acquisition fees and
reimbursable  acquisition  expenses  paid  to the  General  Partner,  have  been
capitalized  as investments  in the Local Limited  Partnerships.  Other fees and
expenditures  of the  Partnership  are  recognized as expenses in the period the
related services are performed.

Investments  in Local  Limited  Partnerships  are accounted for using the equity
method and thus are  carried at cost plus the  Partnership's  share of the Local
Limited  Partnerships' profits less the Partnership's share of the Local Limited
Partnerships'  losses and distributions  (see Note 2). An investment  account is
maintained for each of the limited  partnership  investments  and losses are not
recognized once an investment  account has decreased to zero. Cash distributions
are limited by the Regulatory  Agreements between the Local Limited Partnerships
and HUD to the extent of surplus cash as defined by HUD.  Undistributed  amounts
are cumulative and may be distributed in subsequent  years if future  operations
provide surplus cash in excess of current requirements.  Distributions  received
from Local Limited  Partnerships in which the Partnership's  investment  account
has  decreased  to zero are  recorded as revenue in the year they are  received.
Advances to Local Limited  Partnerships  are included with  Investments in Local
Limited  Partnerships to the extent that the advances are not temporary advances
of working capital.

      The  preparation  of financial  statements  in conformity  with  generally
accepted  accounting  principles  requires  management  to  make  estimates  and
assumptions  that  effect 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.

      For purposes of the Statements of Cash Flows,  the  Partnership  considers
all highly liquid debt instruments  purchased with original  maturities of three
months or less to be cash equivalents.

      Certain  reclassifications  of prior  years'  amounts  have  been  made to
conform with the current year's presentation.

      Cash and Cash Equivalents

      Includes  cash on hand,  in banks and money  market  accounts.  At certain
times,  the amount of cash  deposited  at a bank may exceed the limit on insured
deposits.

      Fair Value of Financial Instruments

      FASB  Statement  No.  107,  "Disclosures  About  Fair  Value of  Financial
Instruments,"  requires  disclosure of fair value  information about significant
financial  instruments,  when it is  practicable  to  estimate  that  value  and
excessive  costs  would  not be  incurred.  To  estimate  the fair  value of the
balances  due to the General  Partner and accrued  interest  thereon,  excessive
costs  would  be  incurred  and,  therefore,  no  estimate  has been  made.  The
Partnership  believes  that the carrying  value of other assets and  liabilities
reported on the  statement of financial  position  that require such  disclosure
approximates fair value.

      Segment Reporting

      Statement of Financial  Accounting  Standards  No. 131,  Disclosure  about
Segments of an Enterprise and Related Information  established standards for the
way that public business enterprises report information about operating segments
in annual  financial  statements  and  requires  that those  enterprises  report
selected  information about operating segments in interim financial reports.  It
also establishes  standards for related disclosures about products and services,
geographic  areas, and major customers.  The Partnership has only one reportable
segment.

<PAGE>

2.    INVESTMENTS IN AND ADVANCES TO LOCAL LIMITED PARTNERSHIPS

      The Partnership owns a 98% limited  partnership  interest in Gates Mills I
Limited  Partnership and 99% limited  partnership  interests in nine other Local
Limited  Partnerships:  Fairmeadows  Limited  Partnership,  Forest Green Limited
Partnership,   Griffith   Limited   Partnership,   Northgate   Village   Limited
Partnership,  Southward  Limited  Partnership,  San  Jose  Limited  Partnership,
Southridge  Apartments Limited  Partnership,  Hurbell IV Limited Partnership and
Village Green Limited Partnership.  Since the Partnership, as a limited partner,
does not exercise control over the activities of the Local Limited  Partnerships
in accordance with the partnership  agreements,  these investments are accounted
for using the equity method.  Thus, the investments are carried at cost plus the
Partnership's  share  of  the  Local  Limited  Partnerships'  profits  less  the
Partnership's share of the Local Limited Partnerships' losses and distributions.
However,  since the Partnership is not legally liable for the obligations of the
Local Limited Partnerships,  or is not otherwise committed to provide additional
support to them, it does not recognize losses once its investment in each of the
individual  Local  Limited  Partnerships,  increased  for its share of  profits,
reduced  for its share of losses and cash  distributions,  reaches  zero.  As of
December 31, 1995,  investments in all ten of the Local Limited Partnerships had
been  reduced to zero.  However,  during 1996,  Forest  Green and Village  Green
Limited Partnerships completed discounted buyout agreements for early settlement
of their notes  payable to former owner and related  accrued  interest  payable,
resulting in gains of approximately $1,368,000 and $1,379,000, respectively, for
the two Local Limited Partnerships.  The Partnership's share of net profits from
both Local Limited  Partnerships was  approximately  $35,000 and $32,000 for the
years ended December 31, 1999 and 1998,  respectively.  The  Partnership did not
recognize  approximately  $1,183,000  and  $1,057,000 of losses from seven Local
Limited  Partnerships  during 1999 and 1998,  respectively.  As of December  31,
1999,  the  Partnership  has not  recognized  approximately  $17,904,000  of its
allocated  share of  cumulative  losses from the Local Limited  Partnerships  in
which its investment is zero.

      Advances  made  by  the  Partnership  to  the  individual   Local  Limited
Partnerships  are  considered  part of the  Partnership's  investment  in  Local
Limited Partnerships.  When advances are made, they are charged to operations as
a  loss  on  investment  in  the  Local  Limited  Partnership  using  previously
unrecognized cumulative losses. As discussed above, due to the cumulative losses
incurred by the Local Limited Partnerships, the aggregate balance of investments
in and  advances  to Local  Limited  Partnerships  has been  reduced  to zero at
December  31, 1999 for eight Local  Limited  Partnerships.  To the extent  these
advances  are  repaid by the  Local  Limited  Partnerships  in the  future,  the
repayments will be credited as distributions  and repayments  received in excess
of investment  in Local  Limited  Partnerships.  These  advances  remain due and
payable to the Partnership.  Interest is calculated at the Chase Manhattan prime
rate plus 2% (10.25% at December 31, 1999). Payment of principal and interest is
contingent upon the Local Limited Partnerships having available surplus cash, as
defined by HUD  regulations,  from operations or from refinancing or sale of the
Local Limited Partnership properties.

      During 1999 and 1998, the Partnership made no advances for working capital
purposes.  Repayments of advances of approximately $8,000 and $7,000 and accrued
interest of  approximately  $9,000 and $17,000  were  received  from one and two
Local Limited Partnerships during 1999 and 1998,  respectively.  At December 31,
1999, the amount owed to the Partnership  for working capital  advances to Local
Limited Partnerships amounted to approximately $362,000.

      Summaries of the combined financial  position of the aforementioned  Local
Limited  Partnerships  as of December  31,  1999,  and the  combined  results of
operations  for each of the two years in the period ended December 31, 1999, are
provided on the following page.


<PAGE>


                      CONDENSED COMBINED FINANCIAL POSITION

                        OF THE LOCAL LIMITED PARTNERSHIPS

                                (in thousands)


                                              December 31,1999

Assets:
  Land                                       $       3,635
  Buildings and improvements,
   net of accumulated depreciation
   of $16,071                                       23,813
  Other assets                                       4,422
                                              $     31,870

Liabilities and Partners' Deficit:
  Liabilities:
   Mortgage notes payable                     $     13,531
   Notes payable                                    12,806
   Accrued interest on notes payable                19,662
   Other liabilities                                 2,806

                                                    48,805

Partners' Deficit:
  National Housing Partnership Realty Fund I       (16,629)
  Other partners                                      (306)

                                                   (16,935)

                                              $     31,870


                   CONDENSED COMBINED RESULTS OF OPERATIONS

                        OF THE LOCAL LIMITED PARTNERSHIPS

                                (in thousands)

                                          Years Ended December 31,

                                              1999        1998

Revenue                                 $     7,777 $     7,595

Expenses:
  Operating expenses                          5,824       6,093
  Financial expenses                             85          99
  Interest on notes payable                   1,294       1,286
  Depreciation and amortization               1,184       1,155
  Impairment loss on rental property            422          --

   Total expenses                             8,809       8,633

  Net loss                              $    (1,032)$    (1,038)


<PAGE>

      The combined  financial  statements of the Local Limited  Partnerships are
prepared on the accrual basis of accounting.  Each Local Limited Partnership was
formed during 1984 for the purpose of acquiring  and operating a rental  housing
project  originally  organized  under  Section 236 of the National  Housing Act.
During the year ended  December 31, 1999 and 1998 the projects  received a total
of approximately  $3,161,000 and $3,427,000,  respectively of rental  assistance
from HUD.

      For the past several  years,  various  proposals have been advanced by the
United States Department of Housing and Urban Development ("HUD"),  Congress and
others  proposing the  restructuring of HUD's rental  assistance  programs under
Section 8 of the United States  Housing Act of 1937  ("Section  8"), under which
1,089 units,  69 percent of the total units owned by the properties in which the
Partnership  has invested,  receive rental  subsidies.  On October 27, 1997, the
President   signed  into  law  the  Multifamily   Assisted  Housing  Reform  and
Affordability Act of 1997 (the "1997 Housing Act").  Under the 1997 Housing Act,
certain properties  assisted under Section 8, with rents above market levels and
financed with  HUD-insured  mortgage  loans,  will be  restructured by adjusting
subsidized rents to market levels,  thereby potentially reducing rent subsidies,
and lowering required debt service costs as needed to ensure financial viability
at  the  reduced  rents  and  rent  subsidies.  The  1997  Housing  Act  retains
project-based  subsidies for most properties  (properties in rental markets with
limited supply,  properties serving the elderly,  and certain other properties).
The 1997 Housing Act phases out project-based  subsidies on selected  properties
servicing families not located in rental markets with limited supply, converting
such subsidies to a tenant-based  subsidy.  Under a  tenant-based  system,  rent
vouchers would be issued to qualified  tenants who then could elect to reside at
properties of their choice,  provided such tenants have the financial ability to
pay the difference between the selected  properties'  monthly rent and the value
of the vouchers, which would be established based on HUD's regulated fair market
rent for the relevant  geographical  areas.  With respect to Housing  Assistance
Payments Contracts ("HAP Contracts")  expiring before October 1, 1998,  Congress
elected to renew them for one-year  terms,  generally at existing rents, so long
as the  properties  remain  in  compliance  with the HAP  Contracts.  While  the
Partnership  does not expect the provisions of the 1997 Housing Act to result in
a significant  number of tenants  relocating from properties  owned by the Local
Limited  Partnerships,  there can be no assurance that the  provisions  will not
significantly  affect the  operations  of the  properties  of the Local  Limited
Partnerships.  Furthermore,  there can be no  assurance  that  other  changes in
Federal  housing  subsidy policy will not occur.  Any such changes could have an
adverse effect on the operation of the Partnership.

      The  following  table  indicates  the year within which the Section 8 rent
subsidy contracts expire:

                                        Subsidized Units  Subsidized Units
                                          Expiring as a     Expiring as a
                           Number      Percentage of Total  Percentage of
                          of Units      Subsidized Units        Total Units

               2000        1,073               99%               68%
               2001           --               --                 --
         Thereafter           16                1%                1%
                          ------             ----               ---

              Total        1,089              100%               69%
                           =====              ===                ==

      Of the units (1,089 in total)  receiving  rent  subsidies  from Section 8,
1,073 of the units have their contracts expiring during the year ending December
31,  2000.  HUD has issued  new  regulations  that  govern  the  continuance  of
project-based  subsidies.  Under the new regulations,  owners with HAP contracts
expiring  after  September 30, 1998 may elect to (1) renew the contract  without
restructuring  for one year, (2) opt out of the contract,  or (3) enter into the
Mark-to Market program, which includes a potential restructuring of the mortgage
and renewal of the contract.  At this time it is not possible to determine which
option each of the Local Limited Partnerships will elect, and accordingly, it is
not possible to determine  the ultimate  impact on the  operations  of the Local
Limited Partnerships.


<PAGE>


      Depreciation  of the  buildings  and  improvements  for eight of the Local
Limited Partnerships is computed on a straight-line  method,  assuming a 50-year
life from the date of initial  occupancy  at the time of  construction  or after
substantial  rehabilitation  of the building,  and  depreciation of equipment is
calculated  using  accelerated  methods over  estimated  useful lives of 5 to 27
years.  Depreciation for one of the Local Limited Partnerships is computed using
the straight-line method, assuming a 30-year life and a 30% salvage value, while
depreciation  for  another  Local  Limited  Partnership  is  computed  using the
straight-line method assuming a 40-year life.

      The   mortgage   notes   payable  are  insured  by  the  Federal   Housing
Administration  (FHA) and  collateralized  by first deeds of trust on the rental
properties.  The notes bear interest at rates ranging from 7% to 8.5% per annum.
However, FHA makes subsidy payments directly to the mortgage lender reducing the
monthly  principal  and interest  payments of the project  owner to an effective
interest rate of 1% over the forty-year term of the notes.  The liability of the
Local Limited Partnerships under the mortgage notes is limited to the underlying
value of the real  estate  collateral  plus  other  amounts  deposited  with the
lenders.

      Notes  payable were executed by the Local  Limited  Partnerships  with the
former owners as part of the  acquisition of the properties by the Local Limited
Partnerships.  These notes bear simple interest at rates of 9% or 10% per annum.
The  notes  are  nonrecourse  notes  secured  by  a  security  interest  in  all
partnership  interests  in the  respective  Local  Limited  Partnership  and are
subordinated to the respective mortgage note for as long as the mortgage note is
insured by HUD.  Any  payments  due from  project  income are  payable  from the
respective  Local  Limited   Partnership's  surplus  cash,  as  defined  by  the
respective  HUD  Regulatory  Agreement.  The notes may be prepaid in whole or in
part  at  any  time  without  penalty.  Neither  the  respective  Local  Limited
Partnership  nor any partner  thereof,  present or future,  assumes any personal
liability for the payment of these notes.

These notes mature as follows:

Local Partnership                   Due Date        Note Amount Accrued Interest
                                                         (in thousands)

Griffith Limited Partnership     October 31, 1997*    $   1,199 $   1,636
Southward Limited Partnership    October 4, 1998*         1,609      2,206
Northgate Village Limited
  Partnership                    July 26, 1999*             969      1,495

San Jose Limited Partnership     August 29, 1999*         1,699       2,607
Gates Mill I Limited Partnership October 1, 1999*         2,667       4,066
Hurbell IV Limited Partnershi    November 9, 1999*          648         886

            Total Delinquent                              8,791      12,896

Fairmeadows Limited Partnership  December 1, 2011        1,849       3,417
Southridge Apartments
  Limited Partnership            December 1, 2011        2,166        3,349

            Total Due 2011                            4,015        6,766
                                                   --------     --------

               Total Due                            $12,806      $19,662
                                                     ======       ======

           * Notes are in default.

            In 1996,  Fairmeadows and Southridge Apartments Limited Partnerships
and the holders of the $1,849,000 and $2,166,000  notes,  respectively,  entered
into Modification, Renewal and Extension of Liens Agreements ("Agreement") which
extended  the  maturity of the notes to December 1, 2011.  Interest on the notes
continues  to  accrue  at 10%  and is due and  payable  at  Maturity;  provided,
however,  that  minimum  annual  installments  of interest are paid on or before
December  31 of each  year  through  December  31,  2010.  Such  minimum  annual
installment  increases  each  year by not less  than  2.5% and not more than 5%,
based on the Consumer Price Index for All Urban Consumers (CPI-U). The


<PAGE>


                  NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                              A LIMITED PARTNERSHIP

                          NOTES TO FINANCIAL STATEMENTS

                                   (Continued)

minimum  payments  due and paid for  Fairmeadows  was  $48,000  for 1998 and for
Southridge  was $53,000 for 1998.  No minimum  payments  were paid in 1999.  The
Partnership is currently in default on the required annual interest payments and
the Partnership interests are subject to potential foreclosure.

      The difference  between the accrued  interest  recorded as of December 31,
1995 and the amount  specified in the  Agreements  is being  amortized  over the
remaining  term  of the  note as a  reduction  of  interest  expense  using  the
effective  interest  rate yield  method.  Amortization  of accrued  interest  of
approximately $60,000 and $18,000 for Fairmeadows and Southridge,  respectively,
was recorded in 1999.

      The Financial Accounting Standards Board Statement of Financial Accounting
Standards No. 121  "Accounting  for the Impairment of Long-Lived  Assets and for
Long-Lived  Assets to be Disposed Of" (the  "Statement")  requires an impairment
loss to be  recognized if the sum of estimated  future cash flows  (undiscounted
and  without  interest  charges)  is less  than the  carrying  amount  of rental
property.  The  impairment  loss would be the amount by which the carrying value
exceeds the fair value of the rental  property.  If the rental property is to be
disposed of, fair value is calculated net of costs to sell.

      During 1999, Hurbell IV Limited Partnership  recognized an impairment loss
on its rental  property  in the amount of  approximately  $422,000.  The Limited
Partner is actively  attempting to sell its net assets. This impairment loss was
the result of the net carrying  value of the assets  exceeding the estimated net
sales value.

      Additionally,  regardless of whether an  impairment  loss of an individual
property  has been  recorded or not,  the  carrying  value of each of the rental
properties  may still  exceed  their fair market  value as of December 31, 1999.
Should  a  Local  Limited  Partnership  be  forced  to  dispose  of  any  of its
properties, it could incur a loss.

3.    TRANSACTIONS  WITH THE GENERAL  PARTNER AND  AFFILIATES  OF THE GENERAL
      PARTNER

      The Partnership  accrued  administrative and reporting fees payable to the
General  Partner of  approximately  $86,000  annually  during 1999 and 1998.  No
payments for such fees were made to the General  Partner in 1999 and 1998. As of
December 31, 1999, the Partnership owed approximately  $1,003,000 to the General
Partner for accrued administrative and reporting fees.

      During 1999 and 1998, the General Partner  advanced  approximately  $1,000
and $3,000,  respectively,  to the  Partnership  to pay operating  expenses.  No
repayments  were  made by the  Partnership  during  1999 and 1998.  Interest  is
charged on the borrowing at the Chase  Manhattan  Bank prime  interest rate plus
2%. Chase Manhattan Bank prime was 8.25% at December 31, 1999.  Interest accrued
for the years  ended  December  31, 1999 and 1998 was  approximately  $2,000 and
$1,000  respectively,  which is  included  in other  operating  expenses  on the
Partnership's Statement of Operations.

              An  affiliate  of the  General  Partner,  NHP  Management  Company
("NHPMC"),  formerly a wholly owned subsidiary of NHP Incorporated  ("NHPI"), is
the project  management  agent for the  projects  operated by eight of the Local
Limited  Partnerships.  NHPMC and other affiliates of NCHP earned  approximately
$645,000 and $663,000 from the Local Limited  Partnerships  for management  fees
and other services  provided to the Local Limited  Partnerships  during 1999 and
1998, respectively. At December 31, 1999, the amount due NHPMC and unpaid by the
Local Limited Partnerships amounted to approximately $34,000.


<PAGE>


      Personnel  working at the project sites,  which are managed by NHPMC, were
employees of NHPI during the period January 1, 1996 through December 8, 1997 and
became employees of NHPMC (as a successor  employer) as of December 8, 1997 and,
therefore,  the projects  reimbursed  NHPI and NHPMC for the actual salaries and
related benefits.  Total reimbursements earned for salaries and benefits for the
years  ended  December  31, 1999 and 1998,  were  approximately  $1,029,000  and
$1,010,000, respectively.

      An  affiliate  of the Local  Partner of Gate  Mills I Limited  Partnership
provides  management  services  for the  property  owned  by the  Local  Limited
Partnership.  During 1999 and 1998, the affiliate received approximately $69,000
and  $66,000,   respectively,   for  these  services.   Additionally,  in  1998,
approximately  $7,000 was paid to another  affiliate  of this Local  Partner for
painting services. No such payments were made in 1999.

4.    INCOME TAXES

      The  Partnership  is not taxed on its income.  The  partners  are taxed in
their  individual   capacities  based  upon  their  distributive  share  of  the
Partnership's  taxable income or loss and are allowed the benefits to be derived
from  off-setting  their  distributive  share of the tax losses against  taxable
income  from other  sources  subject to passive  loss  limitations.  The taxable
income or loss differs from amounts  included in the  statements  of  operations
because  different  methods  are used in  determining  the  losses  of the Local
Limited  Partnerships  as  discussed  below.  The tax loss is  allocated  to the
partner groups in accordance  with Section  704(b) of the Internal  Revenue Code
and therefore is not necessarily proportionate to the interest percentage owned.

      A reconciliation follows:
                                          Years Ended December 31,

                                              1999        1998
                                              ----        ----
                                               (in thousands)

  Net loss per financial statements   $         (21)        (99)
     Other                                       66           7

     Partnership's share of limited local
      partnership's loss                        (13)       (520)
                                       ------------  ----------

  Profit (loss) per tax return       $           22 $      (612)
                                      =============  ==========

The following is a reconciliation between the Partnership's reported amounts and
the federal tax basis of net assets:

                                          December 31, 1999
                                          -----------------
                                           (in thousands)

  Net assets as reported                    $      811
  Add (deduct):
   Investment in Partnerships                  (26,694)
   Other                                            68
                                            ----------
  Net deficit - federal tax basis             $(24,815)
                                               =======

5.    ALLOCATION OF RESULTS OF OPERATIONS,  CASH  DISTRIBUTIONS AND GAINS AND
      LOSSES FROM SALES OR REFINANCING

      Cash  received  by the  Partnership  from the sale or  refinancing  of any
underlying  property of the Local  Limited  Partnerships,  after  payment of the
applicable  mortgage  debt  and  the  payment  of all  expenses  related  to the
transaction  is to be  distributed  in the following  manner in accordance  with
Realty Fund I's Partnership Agreement.

      First,  to the General  Partner for any unrepaid loans to the  Partnership
      and any unpaid fees (other than disposition and refinancing fees);

      Second,  to the  establishment  of any reserves which the General  Partner
deems reasonably necessary for contingent,  unmatured or unforeseen  liabilities
or obligations of the Partnership.

      Third, to the Limited  Partners until the Limited Partners have received a
      return of their  capital  contributions,  after  deduction  for prior cash
      distributions  from sales or refinancing,  but without deduction for prior
      cash distributions from operations;

      Fourth, to the Limited  Partners,  until each Limited Partner has received
      an amount  equal to a  cumulative  noncompounded  6% annual  return on its
      capital contribution, after deduction of (a) an amount equal to 50% of the
      tax  losses   allocated  to  the  Limited   Partner  and  (b)  prior  cash
      distributions  from operations and prior cash  distributions from sales or
      refinancing;

      Fifth,  to the General  Partner  until the General  Partner has received a
      return  of its  capital  contribution,  after  deduction  for  prior  cash
      distributions  from sales or refinancing,  but without deduction for prior
      cash distributions from operations;

      Sixth,  to the  General  Partner for  disposition  and  refinancing  fees,
      including prior  disposition and refinancing  fees which have been accrued
      but are unpaid;

      Seventh,  to the partners with positive  capital  accounts to bring such
      accounts to zero; and

      Finally,  85% of the remaining sales proceeds to the Limited  Partners and
      15% to the General Partner.

      Net income or loss from  operations of the Partnership is allocated 98% to
the Limited  Partners,  1% to the General Partner and 1% to the Original Limited
Partner.   Cash  distributions   from  operations,   after  payment  of  certain
obligations  including  reimbursement  on a cumulative  basis of direct expenses
incurred by the General  Partner or its affiliate in managing the properties and
payment of annual cumulative  administrative  and reporting fees, is distributed
98% to the Limited  Partners,  1% to the General  Partner and 1% to the Original
Limited Partner.

      Gain for federal income tax purposes  realized in the event of dissolution
of the  Partnership or upon sale of interests in a Local Limited  Partnership or
underlying property will be allocated in the following manner:

      First, to the Limited Partners in an amount up to the negative balances of
      the capital  accounts of Limited  Partners in the same  proportion as each
      Limited  Partner's  negative  capital  account  bears  to  such  aggregate
      negative capital accounts;

      Second,  to the General Partner in an amount up to the General Partner's
      negative capital account, if any;

      Third,  to the  Limited  Partners  up to the  aggregate  amount of capital
      contributions  of the Limited  Partners,  after  deduction  for prior cash
      distributions  from sales or refinancing,  but without deduction for prior
      cash  distributions  from  operations,  in the same  proportion  that each
      Limited  Partner's  capital  contribution  bears to the  aggregate  of all
      Limited Partners' capital contributions;

      Fourth,  to the  Limited  Partners,  until each  Limited  Partner has been
      allocated an amount equal to a cumulative  noncompounded  6% annual return
      on its capital contribution, after deduction of (a) an amount equal to 50%
      of the tax losses  allocated  to the  Limited  Partner  and (b) prior cash
      distributions  from operations and prior cash  distributions from sales or
      refinancing;

      Fifth,  to the  General  Partner  up to the  aggregate  amount of  capital
      contributions made by the General Partner,  after deduction for prior cash
      distributions  from sales or refinancing,  but without deduction for prior
      cash distributions from operations; and

      Finally,  85% of the remaining gain to the Limited Partners and 15% to the
      General Partner.

      Losses  for  federal  income  tax  purposes   realized  in  the  event  of
dissolution  of the  Partnership  or upon sale of interests  in a Local  Limited
Partnership or underlying property will be allocated 85% to the Limited Partners
and 15% to the General Partner.

6.    GOING CONCERN

      Certain of the Local  Partnership's  notes  payable are past due (see Note
2).  Continuation of the Local  Partnerships'  operations in the present form is
dependent on its ability to extend the maturity date of these notes, or to repay
or to refinance the notes.  These conditions raise substantial doubt about their
ability to continue as a going concern.  The financial statements do not include
any adjustments which might result from the outcome of this uncertainty.

7.    ABANDONMENT OF LIMITED PARTNERSHIP UNITS

      In 1999, the number of Limited Partnership Units decreased by 10 units due
to limited  partners  abandoning  their units.  In abandoning his or her Limited
Partnership  Unit(s),  a limited  partner  relinquishes  all right,  title,  and
interest in the partnership as of the date of abandonments. However, the limited
partner is allocated  his or her share of net income or loss for that year.  The
income or loss per Limited  Partnership  Unit in the  accompanying  consolidated
statements of operations is calculated based on the number of units  outstanding
at the beginning of the year. There were no such abandonments in 1998.

8.    LEGAL PROCEEDINGS

      In 1997,  NHP received  subpoenas  from the HUD Inspector  General  ("IG")
requesting  documents  relating  to  arrangements  whereby  NHP  or  any  of its
affiliates  provided  compensation  to owners  of  HUD-assisted  or  HUD-insured
multi-family  projects in exchange for or in connection with property management
of a HUD project.  In July 1999,  NHP received a grand jury subpoena  requesting
documents  relating to the same subject matter as the HUD IG subpoenas and NHP's
operation of a group purchasing  program created by NHP, known as Buyers Access.
To date,  neither the HUD IG nor the grand jury has initiated any action against
NHP or Apartment  Investment  and  Management  Company  ("AIMCO"),  the ultimate
controlling entity of NHP or, to NHP's or AIMCO's knowledge,  any owner of a HUD
property  managed by NHP. AIMCO believes that NHP's  operations and programs are
in compliance,  in all material  respects,  with all laws, rules and regulations
relating  to  HUD-assisted  or  HUD-insured   properties.   NHP  and  AIMCO  are
cooperating  with  investigations  and does not believe that the  investigations
will result in a material adverse impact on its operations. However, as with any
similar  investigation,  there can be no assurance that these will not result in
material fines, penalties or other costs.


<PAGE>


9.    REAL ESTATE AND ACCUMULATED DEPRECIATION OF LOCAL LIMITED PARTNERSHIPS
      IN WHICH NHP REALTY FUND I HAS INVESTED

<TABLE>
<CAPTION>

                                        Initial Cost                    Cost
                                       To Partnership               Capitalized
                                       (in thousands)                (Removed)
                                                                   Net Subsequent
                                                                   to Acquisition
                                                                   (in thousands)
                                              Buildings
                                             and Related
                                               Personal                    Carrying Cost
     Description      Encumbrances   Land      Property     Improvements    Adjustments

Fairmeadows
<S>                        <C>       <C>        <C>            <C>              <C>
Limited Partnership        $ (1)     $650       $4,808         $ 1,040          $  --

Forest Green                  (1)     170        2,062             352             --
 Limited Partnership

Gates Mills I                 (1)     669        6,058             43              --
 Limited Partnership

Griffith                      (1)      270       2,624             452          (1,000)
 Limited Partnership

Northgate Village              (1)     220       2,953             658             (17)
 Limited Partnership

Southward                      (1)      220      4,110            662            (900)
 Limited Partnership

San Jose                      (1)       440      4,728            1,448            --
 Limited Partnership

Southridge
Apartments                     (1)      700      5,613             888             --
 Limited Partnership

Hurbell IV                     (1)      100      2,159             163           (1,460)
 Limited Partnership

Village Green                  (1)       137      2,096            403              --
 Limited Partnership

  Totals                               3,576     37,211           6,109            (3,377)
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                         Gross Amount At Which
                                Carried
                         At December 31, 1999
                         --------------------
                            (in thousands)
                                                                                          Life upon
                                                                                            which
                            Buildings                                                     depreciation
                                                                                              in
                               And                                                          latest
                                                                                           statement
                             Related                                                           of
                                                                                           operations
                                                                                               is
                            Personal              Accumulated       Date of       Date      computed
     Description      Land  Property  Total(2)(3) Depreciation (3) Construction  Acquired    (years)

<S>                   <C>    <C>       <C>            <C>             <C>          <C>        <C>
   Fairmeadows        $680   $5,818    $6,498         $2,301          1970         9/84       5-50
   Limited
   Partnership

   Forest Green        170    2,414     2,584          1,000           1972        8/84       5-50
   Limited
   Partnership

   Gates Mills I       669    6,101     6,770          2,173           1972        10/84      5-30
   Limited
   Partnership

   Griffith   Limited  271    2,075     2,346          1,027           1973       11/84       5-50
   Partnership

   Northgate  Village  212    3,602     3,814          1,438           1973       7/84        5-50
   Limited
   Partnership

   Southward           221    3,871     4,092          1,682           1972       10/84       5-50
   Limited
   Partnership

   San  Jose  Limited  461    6,155     6,616          2,663           1970       9/84        5-50
   Partnership

   Southridge          707    6,494     7,201          2,509          1970        10/84       5-50
   Apartments
   Limited
   Partnership

   Hurbell IV          101      861      962             243          1974        11/84       5-40
   Limited
   Partnership

   Village Green       143     2,493    2,636          1,035         1971         8/84        5-50
   Limited
   Partnership
     Totals          $3,635  $39,884   $43,519         $16,071

</TABLE>

<PAGE>


(1) Schedule of Encumbrances

                                                          Notes
                                                         Payable
                                          Mortgage     and Accrued
      Partnership Name                      Notes       Interest      Total
      ----------------                      -----       --------      -----
                                                     (in thousands)

      Fairmeadows Limited Partnership$      1,676   $      5,266 $      6,942

      Forest Green Limited Partnership        850          -              850

      Gates Mills I Limited Partnership     2,021          6,733        8,754

      Griffith Limited Partnership            909          2,835        3,744

      Northgate Village Limited Partnership    1,246       2,464        3,710

      Southward Limited Partnership         1,384          3,815        5,199

      San Jose Limited Partnership          1,791          4,306        6,097

      Southridge Apartments Limited Partnership    1,971    5,515       7,486

      Hurbell IV Limited Partnership          967          1,534        2,501

      Village Green Limited Partnership         716           --          716

         TOTAL - December 31, 1999    $    13,531    $    32,468  $    45,999
                                       ==========     ==========   ==========


(2)   The   aggregate   cost  of  land  for  Federal   income  tax  purposes  is
      approximately   $3,252,000  and  the  aggregate  costs  of  buildings  and
      improvements for Federal income tax purposes is approximately $43,234,000.
      The total of the above-mentioned items is approximately $46,486,000.


<PAGE>


(3)    Reconciliation of real estate
       -----------------------------

                                          Years Ended December 31,

                                              1999        1998
                                              ----        ----
                                               (in thousands)

      Balance at beginning of period    $    43,136 $    42,797

      Improvements during the period            805         339

      Impairment loss on rental property        (422)        --

      Balance at end of period          $    43,519 $    43,136


      Reconciliation of accumulated depreciation

                                          Years Ended December 31,

                                              1999        1998
                                              ----        ----
                                               (in thousands)

      Balance at beginning of period    $    14,887 $    13,732

      Depreciation expense for the period     1,184       1,155

      Balance at end of period          $    16,071 $    14,887
                                         ==========  ==========


<PAGE>




Item 8. Changes in and  Disagreements  with  Accountants  on  Accounting  and
        Financial Disclosure

        None.



<PAGE>



                                    PART III

Item 9. Directors and Executive Officers of the Registrant

      (a), (b) and (c). The Partnership has no directors,  executive  officers
      or significant employees of its own.

      (a),  (b),  (c), (e) and (f). The names,  ages,  business  experience  and
      involvement in legal  proceedings of the directors and executive  officers
      of National  Corporation for Housing Partnerships (NCHP), the sole general
      partner of The National Housing  Partnership,  the sole general partner of
      the Partnership, and certain of its affiliates, are as follows:

Directors of NCHP

      Two individuals  comprise the Board of Directors of NCHP. One director was
appointed  by the  President  of the United  States,  by and with the advice and
consent of the Senate.

      Thomas W. Toomey (age 39) was elected Executive Vice President Finance and
Administration  and a Director of NCHP in 1997.  Mr. Toomey has served as Senior
Vice  President--Finance  and Administration of AIMCO from January 1996 to March
1997,   when  he  was  promoted  to  Executive   Vice   President--Finance   and
Administration  until  December  1999,  when he was  appointed  Chief  Operating
Officer.  From 1990 until 1995,  Mr.  Toomey  served in a similar  capacity with
Lincoln  Property  Company  ("LPC")  as  Vice  President/Senior  Controller  and
Director of  Administrative  Services of Lincoln Property  Services where he was
responsible for LPC's computer systems,  accounting,  tax, treasury services and
benefits administration.  From 1984 to 1990, he was an audit manager with Arthur
Andersen & Co.  where he served  real  estate and banking  clients.  Mr.  Toomey
received a B.S. in Business Administration/Finance from Oregon State University.

      Patrick  J.  Foye (age 42) has been  Executive  Vice  President  of NCHP
since  October 1, 1998 and was  appointed  President  in September  1999.  Mr.
Foye has served as Executive  Vice  President  of AIMCO since May 1998.  Prior
to joining  AIMCO,  Mr. Foye was a partner in the law firm of  Skadden,  Arps,
Slate,  Meagher & Flom LLP from 1989 to 1998 and was  Managing  Partner of the
firm's  Brussels,  Budapest and Moscow  offices from 1992  through  1994.  Mr.
Foye is also Deputy  Chairman of the Long Island Power Authority and serves as
a member of the New York  State  Privatization  Council.  He  received  a B.A.
from Fordham College and a J.D. from Fordham University Law School.

Executive Officers

      The  current  executive  officers  of  NCHP  and a  description  of  their
principal occupations in recent years are listed below.

      Thomas W. Toomey (age 39). See "Directors of NCHP."

      Patrick J. Foye  (age 42). See "Directors of NCHP."
      ----------------

      Steven D. Ira (age 48) has  served as  Executive  Vice  President  of NCHP
since 1997 and of AIMCO  since  1994.  From 1987  until July 1994,  he served as
President of Property Asset Management  ("PAM").  Prior to merging his firm with
PAM in 1987,  Mr. Ira  acquired  extensive  experience  in property  management.
Between  1977 and 1981 he  supervised  the  property  management  of over  3,000
apartment and mobile home units in Colorado, Michigan, Pennsylvania and Florida,
and in 1981 he  joined  with  others  to form the  property  management  firm of
McDermott,  Stein and Ira.  Mr.  Ira served for  several  years on the  National
Apartment Manager  Accreditation Board and is a former president of the National
Apartment  Association and the Colorado  Apartment  Association.  Mr. Ira is the
sixth  individual  elected  to  the  Hall  of  Fame  of the  National  Apartment
Association  in its 54-year  history.  He holds a Certified  Apartment  Property
Supervisor  (CAPS)  and a  Certified  Apartment  Manager  designation  from  the
National Apartment  Association,  a Certified Property Manager (CPM) designation
from the National  Institute of Real Estate Management (IREM) and he is a member
of the Boards of Directors of the National  Multi-Housing  Council, the National
Apartment  Association  and the Apartment  Association of Metro Denver.  Mr. Ira
received a B.S. from Metropolitan State College in 1975.

      Joel F. Bonder (age 57) was appointed Executive Vice President,  General
Counsel and  Secretary of NCHP and AIMCO  effective  December  1997.  Prior to
jointing the Company,  Mr. Bonder served as Senior Vice  President and General
Counsel of NHP from  April 1994 until  December  1997.  Mr.  Bonder  served as
Vice President and Deputy General  Counsel of NHP from June 1991 to March 1994
and as Associate  General Counsel of NHP Incorporated  from 1986 to 1991. From
1983 to 1985, Mr. Bonder  practiced with the Washing,  D.C. law firm of Lane &
Edson,  P.C. and from 1979 to 1983 practiced with the Chicago law firm of Ross
and  Hardines.  Mr. Bonder  received a B.A.  from the  University of Rochester
and a J.D. from Washington University School of Law.

      Paul J.  McAuliffe  (age 43) has been  Executive  Vice President of NCHP
and AIMCO since  February 1999 and was appointed  Chief  Financial  Officer in
October  1999.  Prior  to  joining  the  Company,  Mr.  McAuliffe  was  Senior
Managing  Director of Secured  Capital  Corp and prior to that time had been a
Managing  Director  of Smith  Barney,  Inc.  from  1993 to 1996,  where he was
senior  member  of the  underwriting  team that lead  AIMCO's  initial  public
offering in 1994. Mr.  McAuliffe was also a Managing  Director and head of the
real estate  group at CS First Boston from 1990 to 1993 and he was a Principal
in the real estate group at Morgan  Stanley & Co.,  Inc.  where he worked from
1983 to 1990.  Mr.  McAuliffe  received a B.A.  from  Columbia  College and an
M.B.A. from University of Virginia, Darden School.

      Martha L. Long (age 40) has been Senior Vice  President and  Controller of
NCHP and AIMCO since October 1998,  as a result of the  acquisition  of Insignia
Financial Group,  Inc. From June 1994 until January 1997, she was the Controller
for Insignia, and was promoted to Senior Vice President - Finance and Controller
in January 1997,  retaining  that title until  October  1998.  From 1988 to June
1994,  Ms. Long was Senior Vice  President and  Controller for The First Savings
Bank, FSB in Greenville, South Carolina.

      (d) There  is no  family  relationship  between  any  of  the  foregoing
directors and executive officers.

Item 10.  Executive Compensation

      National Housing  Partnership  Realty Fund I has no officers or directors.
No direct form of compensation  or  remuneration  was paid by the Partnership to
any  officer or director of the General  Partner.  However,  reimbursements  and
other  payments  have been made to the  Partnership's  General  Partner  and its
affiliates,   as  described  in  "Item  13.Certain   Relationships  and  Related
Transactions."

Item 11. Security Ownership of Certain Beneficial Owners and Management

      1133 Fifteenth Street Associates,  a Maryland Limited  Partnership,  whose
general partner is NHP and whose limited  partners were key employees of NCHP at
the time the Partnership was formed, owns a 1% interest in the Partnership.

      The  following  table sets forth  certain  information  regarding  limited
partnership  units of the Registrant  owned by each person or entity is known by
the Registrant to own  beneficially  or exercise  voting or dispositive  control
over more than 5% of the Registrant's  limited  partnership units as of December
31, 1999.

                    Name of
                Beneficial Owner           Number of Units   % of Class

              AIMCO and affiliates             1,286.5         11.18%
        (affiliates of the General Partner)

The business address of AIMCO is 2000 South Colorado Boulevard, Denver, CO 80222

Item 12. Certain Relationships and Related Transactions

      The Partnership  accrued  administrative and reporting fees payable to the
General  Partner of  approximately  $86,000  annually  during 1999 and 1998.  No
payments for such fees were made to the General  Partner in 1999 and 1998. As of
December 31, 1999, the Partnership owed approximately  $1,003,000 to the General
Partner for accrued administrative and reporting fees.

      During 1999 and 1998, the General Partner  advanced  approximately  $1,000
and $3,000,  respectively,  to the  Partnership  to pay operating  expenses.  No
repayments  were  made by the  Partnership  during  1999 and 1998.  Interest  is
charged on the borrowing at the Chase  Manhattan  Bank prime  interest rate plus
2%. Chase Manhattan Bank prime was 8.25% at December 31, 1999.  Interest accrued
for the years  ended  December  31, 1999 and 1998 was  approximately  $2,000 and
$1,000  respectively,  which is  included  in other  operating  expenses  on the
Partnership's Statement of Operations.

              An  affiliate  of the  General  Partner,  NHP  Management  Company
("NHPMC"),  formerly a wholly owned subsidiary of NHP Incorporated  ("NHPI"), is
the project  management  agent for the  projects  operated by eight of the Local
Limited  Partnerships.  NHPMC and other affiliates of NCHP earned  approximately
$645,000 and $663,000 from the Local Limited  Partnerships  for management  fees
and other services  provided to the Local Limited  Partnerships  during 1999 and
1998, respectively. At December 31, 1999, the amount due NHPMC and unpaid by the
Local Limited Partnerships amounted to approximately $34,000.

      Personnel  working at the project sites,  which are managed by NHPMC, were
employees of NHPI during the period January 1, 1996 through December 8, 1997 and
became employees of NHPMC (as a successor  employer) as of December 8, 1997 and,
therefore,  the projects  reimbursed  NHPI and NHPMC for the actual salaries and
related benefits.  Total reimbursements earned for salaries and benefits for the
years  ended  December  31, 1999 and 1998,  were  approximately  $1,029,000  and
$1,010,000, respectively.

      An  affiliate  of the Local  Partner of Gate  Mills I Limited  Partnership
provides  management  services  for the  property  owned  by the  Local  Limited
Partnership.  During 1999 and 1998, the afiliate received  approximately $69,000
and  $66,000,   respectively,   for  these  services.   Additionally,  in  1998,
approximately  $7,000 was paid to another  affiliate  of this Local  Partner for
painting services. No such payments were made in 1999.


<PAGE>



                                     PART IV

Item 13.   Exhibits Reports on Form 8-K

      (a)   Exhibits

                  Exhibit 27 Financial Data Schedule,  is filed as an exhibit to
                  this report.

                  Exhibit     99.1 Audited Combined Financial  Statements of the
                              Local   Limited    Partnerships   in   which   the
                              Partnership   has  invested  are  included  as  an
                              exhibit to this report:

      (b)   Reports on Form 8-K filed during the fourth quarter of 1999:

            None.


<PAGE>


                                   SIGNATURES

      Pursuant  to the  requirements  of Section  13 or 15(d) of the  Securities
Exchange Act of 1934, Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

                National Housing Partnership Realty Fund I
                By: The  National  Housing  Partnership,   its  sole  general
                    partner

                By: National  Corporation for Housing  Partnerships,  its sole
                    general partner

March 31, 2000                             /s/Patrick J. Foye
Date                                       Patrick J. Foye
                                           President

March 31, 2000                             /s/Martha L. Long
Date                                       Martha L. Long
                                           Senior Vice President and
                                           Controller

      Pursuant to the requirements of the Securities  Exchange Act of 1934, this
report has been signed by the following  persons on behalf of the Registrant and
in the capacities and on the dates indicated:

March 31, 2000                             /s/Patrick J. Foye
Date                                       Patrick J. Foye
                                           President

March 31, 2000                             /s/Martha L. Long
Date                                       Martha L. Long
                                           Senior Vice President and
                                           Controller


<PAGE>




                                  EXHIBIT 99.1

                   NATIONAL HOUSING PARTNERS REALTY FUND I

                              FINANCIAL STATEMENTS

                  FOR THE YEAR ENDED DECEMBER 31, 1999 AND 1998



<PAGE>



                          Independent Auditors' Report

To The Partners of
   National Housing Partnership Realty Fund I
Indianapolis, Indiana

We have audited the accompanying combined statement of financial position of the
Local Limited  Partnerships in which National Housing  Partnership Realty Fund I
(the Partnership) holds a limited partnership  interest as of December 31, 1999,
and the related combined statements of operations,  partners' deficit,  and cash
flows for each of the two years in the period ended  December  31,  1999.  These
combined  financial  statements  are  the  responsibility  of the  Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements  based on our audits.  We did not audit the  financial  statements of
Gates Mills I Limited  Partnership or Hurbell IV Limited Partnership (two of the
ten Local  Limited  Partnerships)  for the year ended  December  31,  1999 which
reflect  total  assets of 20% of combined  total assets as of December 31, 1999,
and net losses  which  reflect 68% of combined net loss for the year then ended.
We did not audit the financial  statements of Gates Mills I Limited  Partnership
for the year ended  December  31,  1998  which  reflect  total  assets of 18% of
combined  total assets as of December 31, 1998, and net losses which reflect 35%
of combined net loss for the year then ended. The financial  statements of these
Local Limited  Partnerships  were audited by other  auditors  whose reports have
been  furnished  to us, and our  opinion,  insofar as it relates to the  amounts
included for these Local Limited Partnerships, is based solely on the reports of
the other auditors.

We conducted our audit in accordance with auditing standards  generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable  assurance about whether the financial  statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting  the amounts and  disclosures in the financial  statements.  An audit
also includes assessing the accounting principles used and significant estimates
made by  management,  as well as  evaluating  the  overall  financial  statement
presentation.  We  believe  that our  audits  and the  report of other  auditors
provide a reasonable basis for our opinion.

In our  opinion,  based upon our audits  and the report of other  auditors,  the
financial statements referred to above present fairly, in all material respects,
the  combined  financial  position of the Local  Limited  Partnerships  in which
National Housing Partnership Realty Fund I holds a limited partnership  interest
as of December 31, 1999, and the combined  results of their operations and their
cash flows for each of the two years in the period  ended  December  31, 1999 in
conformity with accounting principles generally accepted in the United States.

As  discussed in Notes 6 and 11 to the combined  financial  statements,  the due
dates of certain of the Local  Partnership's  notes  payable have  expired,  and
therefore,  the notes are in default.  These conditions raise  substantial doubt
about their ability to continue as a going concern.  The financial statements do
not  include  any  adjustments  that  might  result  from the  outcome  of these
uncertainties.

                                                         /s/Ernst & Young  LLP
Indianapolis, Indiana
March  6, 2000


<PAGE>


Independent Auditor's Report

Partners Hurbell IV 1999

We  have  audited  the   accompanying   balance  sheet  of  Hurbell  IV  Limited
Partnership,  (the Project) FHA Project No. 062-44054-LD (A Limited Partnership)
as of December  31,  1999,  and the  related  statements  of income,  changes in
partners'  deficit,  and cash  flows for the year then  ended.  These  financial
statements   are  the   responsibility   of  the   Project's   management.   Our
responsibility  is to express an opinion on these financial  statements based on
our audit.

We conducted our audit in accordance with generally  accepted auditing standards
and Government  Auditing  Standards,  issued by the  Comptroller  General of the
United  States.  Those  standards  require that we plan and perform the audit to
obtain reasonable  assurance about whether the financial  statements are free of
material  misstatement.  An audit includes examining,  on a test basis, evidence
supporting  the amounts and  disclosures in the financial  statements.  An audit
also includes assessing the accounting principles used and significant estimates
made by  management,  as well as  evaluating  the  overall  financial  statement
presentation.  We believe  that our audit  provides a  reasonable  basis for our
opinion.

As described in Note A, these  financial  statements were prepared in conformity
with the accounting  practices prescribed or permitted by the U.S. Department of
Housing and Urban  Development,  which is a  comprehensive  basis of  accounting
other than generally accepted accounting principles.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects,  the financial position of Hurbell IV Limited Partnership
at December 31, 1999,  and the results of its  operations,  changes in partners'
deficit  and cash  flows for the  years  then  ended on the basis of  accounting
described in Note A.

As discussed in Note G to the financial  statements,  the  partnership has notes
payable  that matured on November 9, 1999.  This  condition  raises  substantial
doubt about its ability to continue as a going concern. The financial statements
doe not  include  any  adjustments  that might  result  from the outcome of this
uncertainty.

In accordance with Government Auditing  Standards,  we have also issued a report
dated February 1, 2000 on our consideration of Hurbell IV Limited  Partnership's
internal  controls and a report dated  February 1, 2000 on its  compliance  with
laws and regulations applicable to the basic financial statements.


<PAGE>


Independent Auditor's Report

Partners
Gates Mills I Limited Partnership

We have audited the accompanying  statement of financial position of Gates Mills
I  Limited  Partnership,  An  Ohio  Limited  Partnership,  F.H.A.  Project  No.:
042-44062-LDP, as of December 31, 1998, and the related statements of profit and
loss (on HUD Form No. 92410), partners' deficit and cash flows for the year then
ended.  These financial  statements are the  responsibility of the Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audit.

We conducted our audit in accordance with generally  accepted auditing standards
and Government  Auditing  Standards,  issued by the  Comptroller  General of the
United  States.  Those  standards  require that we plan and perform the audit to
obtain reasonable  assurance about whether the financial  statements are free of
material  misstatement.  An audit includes examining,  on a test basis, evidence
supporting  the amounts and  disclosures in the financial  statements.  An audit
also includes assessing the accounting principles used and significant estimates
made by  management,  as well as  evaluating  the  overall  financial  statement
presentation.  We believe  that our audit  provides a  reasonable  basis for our
opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all  material  respects,  the  financial  position  of  Gates  Mills  I  Limited
Partnership as of December 31, 1998, and the results of its operations,  changes
in partners'  deficit and cash flows for the year then ended, in conformity with
generally accepted accounting principles.

The  accompanying  financial  statements have been prepared  assuming that Gates
Mills I Limited  Partnership  will continue as a going concern.  As discussed in
Note C to the  financial  statements,  the  Partnership's  notes payable are due
October  1,  1999.  As of the  date  of this  report,  the  Partnership  has not
renegotiated  the terms of the notes which  raises  substantial  doubt about the
Partnership's ability to continue as a going concern. The Partnership's plans in
regard to this matter are also described in Note C. The financial  statements do
not  include  any  adjustments  that  might  result  from  the  outcome  of this
uncertainty.

Our audit was made for the purpose of forming an opinion on the basic  financial
statements taken as a whole. The supplemental information on pages 23 through 25
is presented for purposes of  additional  analysis and is not a required part of
the basic financial statements. Such information has been subjected to the audit
procedures  applied in the audit of the basic financial  statements,  and in our
opinion, the supplemental  information is fairly stated in all material respects
in relation to the basic financial statements taken as a whole.

In accordance with Government  Auditing  Standards,  and the Consolidated  Audit
Guide for Audits of HUD Programs,  we have also issued reports dated January 26,
1999,  on our  consideration  of Gates  Mills I Limited  Partnership's  internal
control structure and on its compliance with specific requirements applicable to
major HUD programs and fair housing and non-discrimination.

Reznick Fedder & Silverman
Bethesda, Maryland

January 26 ,1999



<PAGE>


Independent Auditor's Report

Partners
Gates Mills I Limited Partnership

We have audited the accompanying  statement of financial position of Gates Mills
I  Limited  Partnership,  An  Ohio  Limited  Partnership,  F.H.A.  Project  No.:
042-44062-LDP, as of December 31, 1999, and the related statements of profit and
loss (on HUD Form No. 92410), partners' deficit and cash flows for the year then
ended.  These financial  statements are the  responsibility of the Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audit.

We conducted our audit in accordance with generally  accepted auditing standards
and Government  Auditing  Standards,  issued by the  Comptroller  General of the
United  States.  Those  standards  require that we plan and perform the audit to
obtain reasonable  assurance about whether the financial  statements are free of
material  misstatement.  An audit includes examining,  on a test basis, evidence
supporting  the amounts and  disclosures in the financial  statements.  An audit
also includes assessing the accounting principles used and significant estimates
made by  management,  as well as  evaluating  the  overall  financial  statement
presentation.  We believe  that our audit  provides a  reasonable  basis for our
opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all  material  respects,  the  financial  position  of  Gates  Mills  I  Limited
Partnership as of December 31, 1999, and the results of its operations,  changes
in partners'  deficit and cash flows for the year then ended, in conformity with
generally accepted accounting principles.

The  accompanying  financial  statements have been prepared  assuming that Gates
Mills I Limited  Partnership  will continue as a going concern.  As discussed in
Note C to the financial  statements,  the  Partnership's  notes payable were due
October  1,  1999.  As of the  date  of this  report,  the  Partnership  has not
renegotiated  the terms of the notes which  raises  substantial  doubt about the
Partnership's ability to continue as a going concern. The Partnership's plans in
regard to this matter are also described in Note C. The financial  statements do
not  include  any  adjustments  that  might  result  from  the  outcome  of this
uncertainty.

Our audit was made for the purpose of forming an opinion on the basic  financial
statements taken as a whole. The supplemental information on pages 23 through 25
is presented for purposes of  additional  analysis and is not a required part of
the basic financial statements. Such information has been subjected to the audit
procedures  applied in the audit of the basic financial  statements,  and in our
opinion, the supplemental  information is fairly stated in all material respects
in relation to the basic financial statements taken as a whole.

In accordance with Government  Auditing  Standards,  and the Consolidated  Audit
Guide for Audits of HUD Programs,  we have also issued reports dated February 2,
2000,  on our  consideration  of Gates  Mills I Limited  Partnership's  internal
control structure and on its compliance with specific requirements applicable to
major HUD programs and fair housing and non-discrimination.

Reznick Fedder & Silverman
Bethesda, Maryland

February 2, 2000



<PAGE>


                                  EXHIBIT 99.1

                  NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                           LOCAL LIMITED PARTNERSHIPS

                  COMBINED STATEMENTS OF FINANCIAL POSITION

                                December 31, 1999

                                (in thousands)

ASSETS

Cash and cash equivalents               $          713

Accounts receivable, net (Note 2)                  331

Tenants' security deposits held in trust funds     237

Prepaid taxes and insurance                         69

Deposits                                             1

Mortgage escrow deposits (Note 5)                3,071

Rental property, net (Notes 4, 5 and 9)         27,448

                                          $     31,870

LIABILITIES AND PARTNERS' DEFICIT

Accounts payable and accrued expenses:
  Trade payables                        $          575
  Accrued real estate taxes                        217
  Due to management agent - NHPMC (Note 10)         34
  Due to partners (Note 7)                       1,213
  Accrued interest on partner loans (Note 7)       536

                                                 2,575

Tenants' security deposits payable                 231

Notes payable (Note 6)                          12,806

Accrued interest on notes payable (Note 6)      19,662

Mortgage notes payable (Note 5)                 13,531

Partners' deficit                              (16,935)

                                          $     31,870

                 See notes to combined financial statements.


<PAGE>


                                  EXHIBIT 99.1

                  NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                           LOCAL LIMITED PARTNERSHIPS

                        COMBINED STATEMENTS OF OPERATIONS

                                          Years Ended December 31,

                                              1999        1998
                                              ----        ----
                                               (in thousands)
REVENUES:
   Rental income (Note 3)                $    7,417 $     7,278
   Interest income                              161         101
   Other income                                 199         216

                                              7,777       7,595

EXPENSES:
   Administrative expenses (Note 10)          1,760       1,662
   Operating and maintenance expenses         1,590       2,005
   Utilities expenses                         1,519       1,335
   Depreciation (Note 1)                      1,184       1,155
   Taxes and insurance                          880       1,016
   Financial expenses - primarily interest
      (Note 5)                                   85          99
   Interest on notes payable (Notes 6 and 7)  1,294       1,286
   Annual partnership administrative fees to
    General Partner (Note 7)                     75          75
   Impairment loss on rental property (Note 9)  422          --

                                              8,809       8,633


NET LOSS                                $    (1,032)$    (1,038)























                 See notes to combined financial statements.


<PAGE>


                                  EXHIBIT 99.1

                  NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                           LOCAL LIMITED PARTNERSHIPS

                   COMBINED STATEMENTS OF PARTNERS' DEFICIT
                                (in thousands)

                      National           The
                       Housing        National        Jeffrey

                     Partnership       Housing          I.
                    Realty Fund I    Partnership     Friedman         Total

Deficit at
  January 1, 1998$     (14,496)  $      (234)    $       (43)  $     (14,773)

Net loss                (1,024)          (10)             (4)         (1,038)

Distributions              (12)            --             --             (12)

Deficit at
  December 31, 1998    (15,532)         (244)            (47)        (15,823)

Net loss                (1,018)          (10)             (4)         (1,032)

Distributions              (79)           (1)             --             (80)

Deficit at

  December 31, 1999$    (16,629)   $    (255)       $    (51)   $    (16,935)

Percentage interest at
  December 31, 1999
and 1998                    (A)          (B)             (C)



(A)   Holds  a 98%  limited  partnership  interest  in  Gates  Mills  I  Limited
      Partnership and a 99% limited  partnership  interest in the nine remaining
      Local Limited Partnerships.

(B)   Holds a 1% general partnership interest in ten Local Limited Partnerships.

(C)   Holds  a  1%  limited  partnership  interest  in  Gates  Mills  I  Limited
      Partnership.

                 See notes to combined financial statements.


<PAGE>


                                  EXHIBIT 99.1

                  NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                           LOCAL LIMITED PARTNERSHIPS

                        COMBINED STATEMENTS OF CASH FLOWS

                                (in thousands)

                                          Years Ended December 31,

                                              1999        1998

CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts:
   Rental receipts                       $     7,533 $     7,209
   Interest receipts                             163         105
   Other operating receipts                      231         252
   Entity receipts:
    Interest receipts                             --           1
    Miscellaneous receipts                         2           4

   Total Receipts                              7,929        7,571

Disbursements:
   Administrative                               (558)       (440)
   Management fees                              (681)       (700)
   Utilities paid                             (1,503)     (1,326)
   Salaries and wages                         (1,206)     (1,158)
   Operating and maintenance                    (770)     (1,604)
   Real estate taxes                            (600)       (514)
   Property insurance                           (192)       (231)
   Miscellaneous taxes and insurance            (236)       (223)
   Tenant security deposits                       (1)         (5)
   Other operating disbursements                 (34)        (45)
   Interest on mortgage                           (8)        (26)
   Mortgage insurance premium                    (56)        (70)
   Miscellaneous financial                       (12)         (5)
   Entity disbursements:
    Interest on notes payable                    (10)        (142)
    Miscellaneous disbursements                  (97)         (14)

   Total disbursements                         5,964       (6,503)

Net cash provided by operating activities      1,965        1,068


CASH FLOWS FROM INVESTING ACTIVITIES:
   Net change in mortgage escrow deposits       (157)          44
   Net purchase of fixed assets                 (805)        (339)
   Other investing                                 5          (14)

Net cash used in investing activities           (957)        (309)


CASH FLOWS FROM FINANCING ACTIVITIES:
   Mortgage principal payments                  (649)        (601)
   Distributions to partners                     (80)         (12)
   Proceeds from loans or notes payable           --          101
   Principal payments on loans or notes payable   (8)         (12)
   Other financing                               (54)         (71)

Net cash used in financing activities           (791)       (595)


NET INCREASE IN CASH AND
  CASH EQUIVALENTS                               217         164

CASH AND CASH EQUIVALENTS,
  BEGINNING OF YEAR                              496         332

CASH AND CASH EQUIVALENTS, END OF YEAR  $        713$        496

                 See notes to combined financial statements.


<PAGE>


                                  EXHIBIT 99.1

                  NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                           LOCAL LIMITED PARTNERSHIPS

                        COMBINED STATEMENTS OF CASH FLOWS

                                   (Continued)

                                           Years Ended December 31,

                                               1999        1998

RECONCILIATION OF NET LOSS TO NET
   CASH PROVIDED BY OPERATING ACTIVITIES:

    Net loss                            $     (1,032)$    (1,038)
    Adjustments to reconcile net loss to net
      cash provided by operating activities:
      Depreciation                             1,184       1,155
      Impairment loss on rental property         422          --
      Changes in operating assets and
          liabilities:
        Tenants accounts receivable                8         (69)
        Accounts receivable - other               64          19
        Accrued receivables                       (1)          --
        Prepaid expenses                          (2)         --
        Cash restricted for tenant security
           deposits                               11          (11)
        Accounts payable trade                   122        (275)
        Accrued liabilities                     (143)         72
        Accrued interest - notes payable       1,285       1,145
        Tenant security deposits held in trust   (12)          6
        Prepaid revenue                           76          (4)
        Entity liability accounts                (17)          68

   Total adjustments                           2,997       2,106

NET CASH PROVIDED BY OPERATING ACTIVITIES   $  1,965    $  1,068

                 See notes to combined financial statements.


<PAGE>



                                  EXHIBIT 99.1

                  NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                           LOCAL LIMITED PARTNERSHIPS

                     NOTES TO COMBINED FINANCIAL STATEMENTS

1.    SUMMARY  OF  PARTNERSHIP   ORGANIZATION,   BASIS  OF  COMBINATION  AND
      SIGNIFICANT ACCOUNTING POLICIES

      Organization

      National  Housing  Partnership  Realty  Fund I (the  "Partnership"  or the
"Registrant") is a limited partnership  organized on October 21, 1983, under the
laws of the  State of  Maryland  under  the  Maryland  Revised  Uniform  Limited
Partnership  Act. The  Partnership was formed for the purpose of raising capital
by offering and selling  limited  partnership  interests  and then  investing in
Local Limited  Partnerships,  each of which owns and operates an existing rental
housing  project  which is financed  and/or  operated  with one or more forms of
rental  assistance or financial  assistance from the U.S.  Department of Housing
and Urban  Development  (HUD).  A  substantial  portion  of each  Local  Limited
Partnership is received from the housing assistance agreements discussed in Note
3 below. On May 25, 1984, inception of operations, the Partnership began raising
capital and acquiring interests in Local Limited Partnerships.

      During 1984, the Partnership  acquired a 98% limited partnership  interest
in Gates Mills I Limited  Partnership and 99% limited  partnership  interests in
nine other Local Limited  Partnerships,  each of which was organized during 1984
to acquire and operate an existing rental housing project  originally  organized
under  Section 236 of the National  Housing  Act. As a limited  partner in these
Local Limited  Partnerships,  the Partnership does not exercise control over the
activities of the Local Limited  Partnerships in accordance with the partnership
agreements.

      On June 3, 1997,  Apartment  Investment and Management Company, a Maryland
corporation  ("AIMCO" and,  together with its  subsidiaries and other controlled
entities, the "AIMCO Group"), acquired all of the issued and outstanding capital
stock of NHP Partners,  Inc., a Delaware  corporation ("NHP Partners"),  and the
AIMCO Group  acquired  all of the  outstanding  interests  in NHP  Partners  Two
Limited  Partnership,  a Delaware limited  partnership ("NHP Partners Two"). The
acquisitions were made pursuant to a Real Estate Acquisition Agreement, dated as
of May 22, 1997 (the "Agreement"), by and among AIMCO, AIMCO Properties, L.P., a
Delaware  limited  partnership (the "Operating  Partnership"),  Demeter Holdings
Corporation,  a Massachusetts  corporation  ("Demeter"),  Phemus Corporation,  a
Massachusetts  corporation  ("Phemus"),  Capricorn  Investors,  L.P., a Delaware
limited partnership ("Capricorn"),  J. Roderick Heller, III and NHP Partners Two
LLC, a Delaware limited liability company ("NHP Partners Two LLC"). NHP Partners
owns all of the  outstanding  capital  stock  of the  National  Corporation  for
Housing Partnerships,  a District of Columbia corporation ("NCHP"), which is the
general  partner of The  National  Housing  Partnership,  a District of Columbia
limited  partnership ("NHP" or the "General  Partner").  Together,  NCHP and NHP
Partners Two own all of the outstanding partnership interests in NHP. NHP is the
general partner of the Registrant. As a result of these transactions,  the AIMCO
Group acquired control of the general partner of the Registrant and,  therefore,
may be deemed to have acquired control of the Registrant.


<PAGE>

      Basis of Combination

      The combined  financial  statements  include the accounts of the following
ten  Local  Limited  Partnerships  in  which  the  Partnership  holds a  limited
partnership interest.

      Fairmeadows  Limited  Partnership  Forest Green Limited  Partnership Gates
      Mills I  Limited  Partnership  Griffith  Limited  Partnership  Hurbell  IV
      Limited Partnership Northgate Village Limited Partnership San Jose Limited
      Partnership  Southridge  Apartments Limited Partnership  Southward Limited
      Partnership Village Green Limited Partnership

      Significant Accounting Policies

      The financial statements of the Local Limited Partnerships are prepared on
the accrual basis of  accounting.  For eight of the Local Limited  Partnerships,
depreciation   of  the  buildings  and   improvements   is  computed  using  the
straight-line  method,  assuming  a  50-year  life  from  the  date  of  initial
occupancy, and depreciation of equipment is calculated using accelerated methods
over estimated useful lives of 5 to 27 years.  Depreciation of the buildings and
improvements is computed using the straight-line method, assuming a 30-year life
and a 30%  salvage  value for one of the  Local  Limited  Partnerships,  while a
40-year  life  is  assumed  for  the  tenth  Local  Limited  Partnership.   Cash
distributions are limited by the Regulatory  Agreement between the Local Limited
Partnerships  and  HUD  to the  extent  of  surplus  cash  as  defined  by  HUD.
Undistributed  amounts are cumulative and may be distributed in subsequent years
if future operations provide surplus in excess of current requirements.

      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.

      For  purposes  of  the  statements  of  cash  flows,   the  Local  Limited
Partnerships  consider all highly liquid debt instruments purchased with initial
maturities of three months or less to be cash equivalents.

      Certain  reclassifications  of prior  year's  amounts  have  been  made to
conform with the current year's presentation.

2.    ACCOUNTS RECEIVABLE
      -------------------

      Accounts receivable consist of the following:

                                           December 31, 1999
                                           -----------------
                                            (in thousands)

          Net tenants  accounts  receivable $ 75 Housing  assistance  receivable
          (see Note 3) 127 Accounts  receivable  - interest 18 Reserve  releases
          receivable  37 Interest  reduction  payment  receivable 4 Accounts and
          notes receivable - operations 70

          Net accounts receivable             $    331
                                               =======

3.    HOUSING ASSISTANCE AGREEMENTS
      -----------------------------

      The Federal Housing Administration (FHA) has contracted with the ten Local
Limited  Partnerships  under  Section 8 of Title II of the Housing and Community
Development  Act of 1974,  to make  housing  assistance  payments  to the  Local
Limited Partnerships on behalf of qualified tenants. The terms of the agreements
are five years with either one or two five-year renewal options.  The agreements
expire at various dates over the next six years. Each Local Limited  Partnership
has an agreement in effect during 1999. The Local Limited Partnerships  received
a total of  approximately  $3,161,000  and  $3,427,000  in the  form of  housing
assistance  payments  during 1999 and 1998,  respectively,  which is included in
"Rental Income" on the combined statements of operations.

      For the past several  years,  various  proposals have been advanced by the
United States Department of Housing and Urban Development ("HUD"),  Congress and
others  proposing the  restructuring of HUD's rental  assistance  programs under
Section 8 of the United States  Housing Act of 1937  ("Section  8"), under which
1,089  units,  69% of the  total  units  owned by the  properties  in which  the
Partnership  has invested,  receive rental  subsidies.  On October 27, 1997, the
President   signed  into  law  the  Multifamily   Assisted  Housing  Reform  and
Affordability Act of 1997 (the "1997 Housing Act").  Under the 1997 Housing Act,
certain properties  assisted under Section 8, with rents above market levels and
financed with  HUD-insured  mortgage  loans,  will be  restructured by adjusting
subsidized rents to market levels,  thereby potentially reducing rent subsidies,
and lowering required debt service costs as needed to ensure financial viability
at  the  reduced  rents  and  rent  subsidies.  The  1997  Housing  Act  retains
project-based  subsidies for most properties  (properties in rental markets with
limited supply,  properties serving the elderly,  and certain other properties).
The 1997 Housing Act phases out project-based  subsidies on selected  properties
servicing families not located in rental markets with limited supply, converting
such subsidies to a tenant-based  subsidy.  Under a  tenant-based  system,  rent
vouchers would be issued to qualified  tenants who then could elect to reside at
properties of their choice,  provided such tenants have the financial ability to
pay the difference between the selected  properties'  monthly rent and the value
of the vouchers, which would be established based on HUD's regulated fair market
rent for the relevant  geographical  areas.  With respect to Housing  Assistance
Payments Contracts ("HAP Contracts")  expiring before October 1, 1998,  Congress
elected to renew them for one-year  terms,  generally at existing rents, so long
as the  properties  remain  in  compliance  with the HAP  Contracts.  While  the
Partnership  does not expect the provisions of the 1997 Housing Act to result in
a significant  number of tenants  relocating from properties  owned by the Local
Limited  Partnerships,  there can be no assurance that the  provisions  will not
significantly affect the operations of the properties of

the Local Limited  Partnerships.  Furthermore,  there can be no assurance that
other  changes in Federal  housing  subsidy  policy  will not occur.  Any such
changes could have an adverse effect on the operation of the Partnership.

            The  following  table  indicates the year within which the Section 8
rent subsidy contracts expire:

                                        Subsidized Units  Subsidized Units
                                          Expiring as a     Expiring as a
                           Number      Percentage of Total  Percentage of

                          of Units      Subsidized Units        Total Units

               2000        1,073               99%               68%
               2001           --               --                 --
         Thereafter           16                1%                1%

              Total        1,089              100%               69%

      Of the units (1,089 in total)  receiving  rent  subsidies  from Section 8,
1,073 of the units have their contracts expiring during the year ending December
31,  2000.  HUD has issued  new  regulations  that  govern  the  continuance  of
project-based  subsidies.  Under the new regulations,  owners with HAP contracts
expiring  after  September 30, 1998 may elect to (1) renew the contract  without
restructuring  for one year, (2) opt out of the contract,  or (3) enter into the
Mark-to Market program, which includes a potential restructuring of the mortgage
and renewal of the contract.  At this time it is not possible to determine which
option each of the Local Limited Partnerships will elect, and accordingly, it is
not possible to determine  the ultimate  impact on the  operations  of the Local
Limited Partnerships.

4.    RENTAL PROPERTY
      ---------------

      Rental property consists of the following:

                                             December 31, 1999
                                             -----------------
                                             (in thousands)

          Land                             $       3,635
          Buildings and improvements              37,223
          Equipment and furniture                  2,661

                                                  43,519

          Less accumulated depreciation          (16,071)

          Net rental property               $     27,448


5.    MORTGAGE NOTES PAYABLE
      ----------------------

The mortgage notes payable are insured by FHA and  collateralized by first deeds
of trust on the rental properties. The notes bear interest at rates ranging from
7% to 8.5% per  annum.  However,  FHA makes  subsidy  payments  directly  to the
mortgage  lender  reducing the monthly  principal  and interest  payments of the
project owner to an effective  interest rate of 1% over the  forty-year  term of
the notes.  The liability of the Local Limited  Partnerships  under the mortgage
notes is limited to the  underlying  value of the real estate  collateral,  plus
other amounts deposited with the lenders.

      Under  agreements  with the mortgage  lenders and FHA,  the Local  Limited
Partnerships  are required to make monthly escrow deposits for taxes,  insurance
and  reserves  for  the  replacement  of  project  assets,  and are  subject  to
restrictions as to operating policies,  rental charges,  operating  expenditures
and distributions to partners.

      Approximate  maturities of mortgage  notes payable for the next five years
are as follows (in thousands):

                             2000           $      701
                             2001                  757
                             2002                  817
                             2003                  883
                             2004                  953
                       Thereafter                9,420
                                              --------

                                               $13,531

6.    NOTES PAYABLE
      -------------

      Notes  payable  were  executed by the Local  Partnerships  with the former
owners as part of the  acquisition of the properties by the Local  Partnerships.
These notes bear simple interest at rates of 9% or 10% per annum.  The notes are
nonrecourse notes secured by a security interest in all partnership interests in
the respective Local Partnership and are subordinated to the respective mortgage
note for as long as the  mortgage  note is insured by HUD. Any payments due from
project  income are payable  from the  respective  Local  Limited  Partnership's
surplus cash, as defined by the respective HUD Regulatory  Agreement.  The notes
may be  prepaid in whole or in part at any time  without  penalty.  Neither  the
respective Local Partnership nor any partner thereof, present or future, assumes
any personal liability for the payment of these notes.


These notes mature as follows:

          Local Partnership       Due Date      Note Amount  Accrued Interest
                                        (in thousands)

 Griffith Limited Partnership  October 31, 1997* $   1,199      $   1,636

Southward Limited Partnership  October 4, 1998*      1,609          2,206

Northgate Village Limited
  Partnership                  July 26, 1999*          969          1,495

San Jose Limited Partnership  August 29, 1999*       1,699          2,607

Gates Mill I Limited
   Partnership                October 1, 1999*       2,667          4,066

Hurbell IV Limited
   Partnership                November 9, 1999*        648            886

            Total Delinquent                          8,791        12,896

Fairmeadows Limited
   Partnership                December 1, 2011        1,849         3,417

Southridge Apartments
   Limited Partnership        December 1, 2011        2,166         3,349

            Total Due 2011                            4,015        6,766

               Total Due                            $12,806      $19,662


           * Notes are in default.

      In  1996,   Fairmeadows   Limited  and   Southridge   Apartments   Limited
Partnerships   and  the  holders  of  the  $1,849,004   and  $2,166,000   notes,
respectively,   entered  into  Modification,  Renewal  and  Extension  of  Liens
Agreements ("Agreement") which extended the maturity of the notes to December 1,
2011. Interest on the notes continues to accrue at 10% and is due and payable at
Maturity;  provided,  however,  that minimum annual installments of interest are
paid on or before  December 31 of each year  through  December  31,  2010.  Such
minimum  annual  installment  increases  each year by not less than 2.5% and not
more than 5%, based on the Consumer Price Index for All Urban Consumers (CPI-U).
The minimum  payments due and paid for  Fairmeadows was $48,000 for 1998 and for
Southridge was $53,000 for 1998. No minimum payments were paid in 1999.

      The difference  between the accrued  interest  recorded as of December 31,
1995 and the amount  specified  in the  Agreement  is being  amortized  over the
remaining  term  of the  note as a  reduction  of  interest  expense  using  the
effective  interest  rate yield  method.  Amortization  of accrued  interest  of
approximately $60,000 and $18,000 for Fairmeadows and Southridge,  respectively,
was recorded in 1999 and 1998.

      The Limited  Partnerships  are currently in default on the required annual
interest  payments  and the  Partnership  interests  are  subject  to  potential
foreclosure.

7.    DUE TO PARTNERS
      ---------------

      The Local Limited Partnerships  accrued annual partnership  administration
fees  payable  to  the  General  Partner,  of  $75,000  during  1999  and  1998,
respectively.  Payments  of these fees are made to the General  Partner  without
interest from surplus cash available for  distribution  to partners  pursuant to
HUD  regulations.  During 1999 and 1998,  the Local  Limited  Partnerships  paid
approximately  $96,000 and $11,000,  respectively.  The accumulated fees owed to
NHP are approximately $429,000 at December 31, 1999.

      During 1998, the General Partner advanced approximately  $101,000, to five
Local Limited  Partnerships,  to fund  partnership  entity  expenses,  including
expenses  incurred  relating to  potential  sales or  refinancing  under the Low
Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA). No
advances  were made in 1999.  During 1999 and 1998,  two and three Local Limited
Partnerships,  respectively,  made payments of principal of approximately $8,000
and $4,000.  At December  31, 1999,  the balance owed to the General  Partner by
Local  Limited  Partnerships  was  approximately  $363,000,   including  accrued
interest of  approximately  $9,000.  Interest on these  advances is charged at a
rate  equal to the Chase  Manhattan  Bank  prime  interest  rate plus 2%.  Chase
Manhattan Bank prime was 8.25% at December 31, 1999.

      During 1999 and 1998,  no advances were made by the  Partnership  to Local
Limited Partnerships. Repayments of advances of approximately $8,000, and $7,000
and accrued interest of approximately  $9,000 and $18,000 were received from one
and two  Local  Limited  Partnerships  during  1999 and 1998,  respectively.  At
December 31, 1999, the  Partnership's  working capital advances to Local Limited
Partnership's  amounted to  approximately  $362,000.  Interest is charged at the
Chase Manhattan Bank rate of price plus 2%. Chase Manhattan Bank prime was 8.25%
at December 31, 1999.

      All advances and accumulated  interest will be paid in conformity with HUD
and/or other regulator requirements and applicable partnership agreements.

8.    FEDERAL AND STATE INCOME TAXES
      ------------------------------

      The Local Limited Partnerships are not taxed on their income. The partners
are taxed in their individual  capacities based upon their distributive share of
the Local Limited  Partnerships'  taxable income and are allowed the benefits to
be derived from offsetting  their  distributive  share of the tax losses against
taxable income from other sources subject to passive loss rule limitations.  The
taxable  income or loss  differs  from  amounts  included  in the  statement  of
operations   primarily   because  of  different   methods  used  in  determining
depreciation  expense for tax  purposes.  The tax loss is  allocated  to partner
groups in  accordance  with  Section  704(b) of the  Internal  Revenue  Code and
therefore is not necessarily proportionate to the interest percentage owned.

9.    IMPAIRMENT LOSS ON RENTAL PROPERTY
      ----------------------------------

      The Financial Accounting Standards Board Statement of Financial Accounting
Standards No. 121  "Accounting  for the Impairment of Long-Lived  Assets and for
Long-Lived  Assets to be Disposed Of" (the  "Statement")  requires an impairment
loss to be  recognized if the sum of estimated  future cash flows  (undiscounted
and  without  interest  charges)  is less  than the  carrying  amount  of rental
property.  The  impairment  loss would be the amount by which the carrying value
exceeds the fair value of the rental  property.  If the rental property is to be
disposed of, fair value is calculated net of costs to sell.

      During 1999, Hurbell IV Limited Partnership  recognized an impairment loss
on its  rental  property  in the  amount of  approximately  $422,000.  The Local
Limited  Partnership  is  actively  attempting  to  sell  its net  assets.  This
impairment loss was the result of the net carrying value of the assets exceeding
the estimated net sales value.

      Additionally,  regardless of whether an  impairment  loss of an individual
property  has been  recorded or not,  the  carrying  value of each of the rental
properties  may still  exceed  their fair market  value as of December 31, 1999.
Should  a  Local  Limited  Partnership  be  forced  to  dispose  of  any  of its
properties, it could incur a loss.

10.   RELATED-PARTY TRANSACTIONS
      --------------------------

An affiliate of the General Partner, NHP Management Company ("NHPMC"),  formerly
a  wholly  owned  subsidiary  of  NHP  Incorporated  ("NHPI"),  is  the  project
management  agent  for the  projects  operated  by  eight of the  Local  Limited
Partnerships.  During May 1997, AIMCO acquired  approximately  51% of the voting
stock of NHPI.  An  additional  3% of the voting  stock was acquired by AIMCO in
August 1997. On December 8, 1997,  the NHPI  stockholders  elected to merge with
AIMCO.  After the merger,  NHPMC became a preferred  stock  subsidiary of AIMCO.
NHPMC and other  affiliates of NCHP earned  approximately  $645,000 and $663,000
from the Local  Limited  Partnerships  for  management  fees and other  services
provided to the Local Limited  Partnerships during 1999 and 1998,  respectively.
At  December  31,  1999,  the amount  due NHPMC and unpaid by the Local  Limited
Partnerships amounted to approximately $34,000.

      Personnel  working at the project sites,  which are managed by NHPMC, were
employees of NHPI during the period January 1, 1996 through December 8, 1997 and
became employees of NHPMC (as a successor  employer) as of December 8, 1997 and,
therefore,  the projects  reimbursed  NHPI and NHPMC for the actual salaries and
related benefits.  Total reimbursements earned for salaries and benefits for the
years  ended  December  31, 1999 and 1998,  were  approximately  $1,029,000  and
$1,010,000, respectively.

      An  affiliate  of the Local  Partner of Gate  Mills I Limited  Partnership
provides  management  services  for the  property  owned  by the  Local  Limited
Partnership.  During  1999 and 1998,  they  received  approximately  $69,000 and
$66,000, respectively, for these services.  Additionally, in 1998, approximately
$7,000  was  paid to  another  affiliate  of this  Local  Partner  for  painting
services. No such payments were made in 1999.

11.   GOING CONCERN
      -------------

      Certain of the Local Limited  Partnership's  notes payable are past due at
December 31, 1999 (see Note 6). Continuation of the Local Limited  Partnerships'
operations  in the  present  form is  dependent  on its  ability  to extend  the
maturity  date of these  notes,  or to  repay or to  refinance  the  notes.  The
financial  statements do not include any adjustments which might result from the
outcome of this uncertainty.

12.   FAIR VALUE OF FINANCIAL INSTRUMENTS
      -----------------------------------

      FASB  Statement  No.  107,  "Disclosures  About  Fair  Value of  Financial
Instruments,"  requires  disclosure of fair value  information  about  financial
instruments,  when it is  practicable  to estimate that value.  For the mortgage
notes payable and the notes payable and related accrued  interest,  a reasonable
estimate of fair value could not be made without incurring  excessive costs. The
carrying  amount of other assets and  liabilities  reported on the  statement of
financial position that require such disclosure approximates fair value.