FORM 10-KSB--Annual or Transitional Report Under
                               Section 13 or 15(d)
                                   Form 10-KSB

[X]   ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
      OF 1934 [No Fee Required]
                 For the fiscal year ended December 31, 2000

[ ]   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT OF 1934 [No Fee Required]

               For the transition period _________to _________

                         Commission file number 0-13465

         NATIONAL HOUSING PARTNERSHIP REALTY FUND I (A Maryland Limited
           Partnership) (Name of small business issuer in its charter)

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

                          55 Beattie Place, PO Box 1089
                       Greenville, South Carolina 29602
                   (Address of principal executive offices)

                                 (864) 239-1000
                            Issuer's telephone number

        Securities registered under Section 12(b) of the Exchange Act:

                                      None

        Securities registered under Section 12(g) of the Exchange Act:

                      11,509 Limited Partnership Interests
                                (Title of class)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act of 1934 during the past 12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing requirements for the past 90 days. Yes X No___

Check if there is no disclosure  of delinquent  filers in response to Item 405
of  Regulation  S-B  contained  in  this  form,  and  no  disclosure  will  be
contained,  to the best of the  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 revenues for its most recent fiscal year.   $670,000

State the aggregate  market value of the voting  partnership  interests  held by
non-affiliates  computed  by  reference  to the price at which  the  partnership
interests  were sold,  or the average bid and asked  prices of such  partnership
interests as of December 31, 2000. No market exists for the limited  partnership
interests of the Registrant,  and,  therefore,  no aggregate market value can be
determined.

                       DOCUMENTS INCORPORATED BY REFERENCE
                                      None


<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 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"). 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.

The  Partnership's  business is to hold limited  partnership  interests in eight
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
held an  interest  in two  additional  limited  partnerships  which  sold  their
properties during the year ended December 31, 2000.

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.

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
                                          Financed,     Authorized         Occupancy
                                           Insured      for Rental         Percentage
                                             and        Assistance      for the Year Ended
 Property Name, Location      Number of   Subsidized       Under           December 31,
  and Partnership Name        Units         Under      Section 8 (B)     2000     1999

<S>                            <C>           <C>            <C>          <C>       <C>
Fairmeadows                    (C)           (C)            (C)          (C)       (C)
  Duncanville, Texas
   (Fairmeadows Limited
     Partnership)
Forest Green                   100           (A)            85           93%       86%
  Gainesville, Florida
   (Forest Green Limited
     Partnership)
Howard F. Robbins Tower        191           (A)            167          100%      98%
 Mayfield Heights, Ohio
 (Gates Mills I Limited
  Partnership)
Lakeview Apartments            100           (A)            95           97%       99%
  Fresno, California
  (Griffith Limited
    Partnership)
Northgate Village              150           (A)            49           98%       98%
  Columbus, Georgia
   (Northgate Village
     Limited Partnership)
Parker Square                  175           (A)            122          99%       99%
 Houston, Texas
 (Southward Limited
    Partnership)
San Jose                       220           (A)            215          100%     100%
 San Antonio, Texas
 (San Jose Limited
    Partnership)
Southridge                     (C)           (C)            (C)          (C)       (C)
 Austin, Texas
  (Southridge Apartments
   Limited Partnership)
Talladega Downs                100           (A)            100          100%     100%
 Talladega, Alabama
 (Hurbell IV Limited
    Partnership)
Village Green                  100           (A)            77           90%       88%
 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.
(C) Property was sold during the year ended December 31, 2000.



<PAGE>


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, 2000.

<TABLE>
<CAPTION>

                         NHP Realty Fund I Original Cost
                          Percentage      of Ownership   Mortgage      Notes Payable and
     Partnership           Interest         Interest      Notes      Accrued Interest (1)

<S>              <C>          <C>            <C>          <C>               <C>
Fairmeadows L.P. (2)          99%            $1,091       $    --           $   --
Forest Green L.P.             99%               420           810               --
Gates Mills I L.P.            98%             1,561         1,941            7,000
Griffith L.P.                 99%               631           873            2,934
Northgate Village L.P.        99%               621         1,193            2,561
Southward L.P.                99%               917         1,324            3,962
San Jose L.P.                 99%             1,156         1,691            4,477
Southridge Apartments
 L.P. (2)                     99%             1,344            --               --
Hurbell IV L.P.               99%               372           928            1,596
Village Green L.P.            99%               430           657               --
</TABLE>

(1)   See  "Item  6.   Management's   Discussion   and  Analysis  or  Plan  of
      Operations" for further details.
(2)   The Local Limited Partnership sold its property in 2000.

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.

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.

Regulation of Affordable Housing

The  Federal  Housing   Administration  (FHA)  has  contracted  with  the  eight
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 one or five years with one year renewal options.

In 1997 and again in 1999,  Congress  enacted new ways to determine  rent levels
for properties  receiving HUD's rental  assistance under Section 8 of the United
States  Housing Act of 1937 ("Section 8") after the expiration of their original
Section 8 contracts.  This new legislation  will affect 910 units, or 80% of the
units in which the Partnership has invested.  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 expiring  Section 8 contracts and which have been receiving rents
deemed to be above  comparable  market  levels for  unassisted  properties,  and
financed  with  HUD-insured  mortgage  loans,  will  have,  upon the  renewal or
extension of Section 8 contracts,  rents  marked to market  rents.  This will be
accomplished  in  various  ways,  the goal  being to  reduce  Section 8 rents to
comparable  market  levels,  thereby  reducing  the  federal  Section  8 subsidy
obligation,  and (ideally) by simultaneously lowering, or eliminating,  required
debt  service  costs  (and  decreasing  operating  costs)  as  needed  to ensure
financial  viability at the reduced rent levels. The program also incorporates a
requirement  to  perform  any  repair  or  rehabilitation  deemed  necessary  by
depositing  funds to cover the first twelve month's work, and making  sufficient
monthly reserve  deposits to ensure work required in succeeding  years. In 1999,
the Congress  enacted  legislation (the "1999 Housing Act") that expanded on and
clarified  the  provisions  of  the  1997  Housing  Act,  including   permitting
properties whose Section 8 rents were below comparable  market rents to increase
their Section 8 rents to market.

The 1997 and 1999  Housing  Acts  (together,  the  "Housing  Acts")  permit  the
retention of project  based  Section 8 contracts  for most  properties in rental
markets  with a limited  supply of  affordable  housing or where the tenants are
particularly  vulnerable  populations  including the elderly,  disabled or large
families.  In rental markets without a limited supply of affordable housing, the
Housing Acts provide for phasing out project  based  subsidies,  converting  the
assistance to tenant based assistance or vouchers.  Under a tenant based system,
rental  vouchers  would be issued to  qualified  tenants who then could elect to
reside at  properties  of their  choice,  including  the  property in which they
currently  reside.   Voucher  rent  levels  are  established  by  local  housing
authorities  under  guidelines set by HUD. While the Partnership does not expect
the provisions of the Housing Acts to result in a significant  number of tenants
relocating from the properties  owned by the Local Limited  Partnerships,  there
can be no  assurance  that  the  new  legislation  will  not  significantly  and
adversely  affect  the  operations  of  the  properties  of  the  Local  Limited
Partnerships.

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 of     Percentage of Total    Percentage of Total
                         Units        Subsidized Units          Total Units

2001                      796                87%                    70%
2002                       --                --                     --
Thereafter                114                13%                    10%

Total                     910               100%                    80%

Of the units (910 in total)  receiving rent subsidies from Section 8, 796 of the
units have their  contracts  expiring  during the year ending December 31, 2001.
The  Housing  Acts  provide  for several  options  under  which a Local  Limited
Partnership  may elect, as  appropriate,  to renew its Section 8 contracts:  (1)
marking  rents up to the  comparable  market  rent,  if current  rents are below
market;  (2) renewing rents at the current  level,  if the level does not exceed
comparable  market rents, and receiving an operating cost adjustment  factor (an
"OCAF")  or a budget  based  rent  increase,  as long as the rents do not exceed
comparable  market rents; (3) marking rents down to comparable market rents; (4)
marking their rents down to an "exception  rent" level,  when comparable  market
rents would be too low to permit  continued  operation of the property under the
Section 8 program,  even with full debt restructuring;  or (5) opting out of the
section 8 program.  For  properties  assisted  by Section 8, but not  subject to
these provisions  (including,  but not limited to,  properties which do not have
underlying HUD insured  mortgages,  or which have been financed  through certain
state housing finance agency or bond-financed mortgage programs),  rents will be
continued at current levels,  plus an OCAF or (in some instances) a budget based
rent increase. In addition, properties can opt out of the Section 8 program only
if very strict notice  requirements have been met,  including a requirement that
HUD, the tenants, and the local governing body, be given twelve months notice of
a Local  Limited  Partnership's  intention  to opt out of the  program  prior to
contract termination.



<PAGE>


Each of the options  requires an application to HUD, and, to a greater or lesser
extent,  the  fulfillment  of certain  procedural  submission  requirements  and
financial   requirements,   which  must  be  weighed  in  connection   with  the
determination of which option to select.

The Section 8  requirements  are separate  from the  requirements  governing the
underlying  HUD-insured  mortgage  loans,  and any  other  HUD,  state  or local
requirements, all of which must be fulfilled,  irrespective of the option chosen
with regard to the continuation of Section 8 participation.

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.

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.

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.

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.


<PAGE>


Item 3.     Legal Proceedings

In October 1997,  NHP received a subpoena from the Inspector  General  ("IG") of
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 (the "Transactions").  Documents were produced which
may have been  responsive to the HUD subpoena and submitted to the HUD Inspector
General in 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
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  do  not  believe  that  the
investigations  will result in a material  adverse  impact on their  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.
            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,  2000,  there were 964  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, 2000.

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

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

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  attached hereto as
Exhibit 99.1, 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 are  nonrecourse
notes secured by both the Partnership's and NHP's interests in the Local Limited
Partnerships  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 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.  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.  There can be no assurance as to when,  or if,
such holders may seek to exercise such rights.

During 2000, Fairmeadows Limited Partnership entered into a sales agreement with
an unaffiliated third party for the sale of Fairmeadows Apartments.  The closing
occurred on December 27, 2000,  with a sale price of  approximately  $5,050,000.
Net  proceeds  of  approximately  $4,780,000  were  used to repay  the  mortgage
encumbering  the property  with the holders  ("AIMCO") of the  Fairmeadows  note
payable receiving the remaining net proceeds in full satisfaction of amounts due
on their notes. Any unpaid balances were forgiven. The Local Limited Partnership
recorded a gain on sale of approximately  $684,000 and an extraordinary  gain on
debt forgiveness of approximately $2,186,000.

During 2000,  Southridge  Apartments  Limited  Partnership  entered into a sales
agreement  with  an  unaffiliated   third  party  for  the  sale  of  Southridge
Apartments.  The closing  occurred on December  27,  2000,  with a sale price of
approximately $6,000,000.  Net proceeds of approximately $5,673,000 were used to
repay the mortgage  encumbering  the property with the holders  ("AIMCO") of the
Southridge   note  payable   receiving   the  remaining  net  proceeds  in  full
satisfaction of amounts due on their notes. Any unpaid balances were forgiven.
The  Local  Limited  Partnership  recognized  a gain on  sale  of  approximately
$916,000  and  an  extraordinary  gain  on  debt  forgiveness  of  approximately
$1,904,000.

During  2000,  the  Partnership  advanced  approximately  $89,000 to  Southridge
Apartments  Limited  Partnership for working capital purposes.  No advances were
made  by  the  Partnership  to  the  Local  Limited  Partnerships  during  1999.
Repayments  of advances of  approximately  $20,000 and $8,000 were received from
one  Local  Limited  Partnership  during  2000 and 1999,  respectively.  Accrued
interest of approximately $9,000 was received from one Local Limited Partnership
during 1999. At December 2000, the  Partnership's  working  capital  advances to
Local  Limited  Partnerships  amounted to  approximately  $431,000.  Interest is
charged at the Chase  Manhattan Bank rate of prime plus 2%. Chase Manhattan Bank
prime was 9.50% at December 31, 2000.

During 2000, the General Partner  advanced  approximately  $63,000 to four 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,  two Local  Limited  Partnerships  made  payments of
principal of  approximately  $8,000.  No payments of principal  were made during
2000. At December 31, 2000, the balance owed to the General Partner by the Local
Limited Partnerships was approximately  $536,000,  including accrued interest of
approximately $43,000.  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 9.50% at December 31, 2000.

The Local Limited  Partnerships  accrued annual partnership  administration fees
payable to the General Partner,  of $75,000 during 2000 and 1999,  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 2000 and 1999, the Local Limited Partnerships paid approximately  $35,000
and $96,000,  respectively.  The accumulated fees owed to NHP are  approximately
$469,000 at December 31, 2000.

Net  cash  used  in  operations  for  the  year  ended  December  31,  2000  was
approximately   $49,000   compared  to  net  cash   provided  by  operations  of
approximately $14,000 in 1999. The decrease in cash provided by operations was a
result of a decrease in the receipt of distributions in excess of the investment
in Local Limited Partnerships and a 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  six  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 for these partnerships. Cash distributions of approximately $34,000
and $79,000 were received from two and five Local  Limited  Partnerships  during
the years ended December 31, 2000 and 1999,  respectively.  The receipt of these
distributions  in future years is dependent on the  operations of the underlying
properties of the Local Limited Partnerships.



<PAGE>


The  Partnership  had cash and  cash  equivalents  of  approximately  $9,000  at
December  31,  2000 as compared to cash and cash  equivalents  of  approximately
$23,000  at  December  31,  1999.  The  ability of the  Partnership  to meet its
on-going cash  requirements,  in excess of cash on hand at December 31, 2000, 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  decreased to  approximately  $34,000 in 2000 from $79,000 in 1999.
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 2000 and 1999, the General Partner  advanced  approximately  $104,000 and
$1,000,  respectively,   to  the  Partnership  to  pay  operating  expenses.  No
repayments  of  advances  were  made by the  Partnership  during  2000 and 1999.
Interest is charged on borrowing at the Chase Manhattan Bank prime interest rate
plus 2%. Chase  Manhattan  Bank prime was 9.50% at December  31, 2000.  Interest
accrued for the years ended December 31, 2000 and 1999 was approximately  $6,000
and $1,000,  respectively,  which is included in other operating expenses on the
Partnership's Statement of Operations.

As of December 31, 2000, the Partnership owed the General Partner  approximately
$1,089,000 for administrative and reporting services performed. During the years
ended  December 31, 2000 and 1999, 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.

Results of Operations

At December 31, 2000,  the  Partnership  holds an interest in ten Local  Limited
Partnerships,  which operate eight rental housing  properties.  Two Partnerships
sold their  investment  properties  during  December 2000. Due to the use of the
equity method of accounting as discussed in "Item 7. Financial Statements - Note
1", 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 the  former  owner,  resulting  in  extraordinary  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  $103,000 and $35,000 in these two Local Limited  Partnerships for
the years ended December 31, 2000 and 1999, respectively. Due to the sale of the
property held by Fairmeadows Limited Partnership a gain on sale of approximately
$623,000  and  an  extraordinary  gain  on  debt  forgiveness  of  approximately
$2,186,000  were  recorded,  which more than offset losses not taken in previous
years.  The  Partnership's  share of profits  recognized in 2000 from this Local
Limited Partnership was approximately $533,000.

The Partnership realized net income of approximately $498,000 for the year ended
December 31, 2000, compared to a net loss of approximately  $21,000 for the year
ended  December  31,  1999.  Net income  (loss) per unit of limited  partnership
interest  went from a net loss of $1.82 to net  income  of $42.40  for the units
outstanding  at December  31, 1999 and 2000,  respectively.  The increase in net
income was  primarily due to an increase in the  Partnership's  share of profits
from the Local Limited  Partnerships  which was partially offset by the decrease
in the  receipt  of  distributions  in excess  of  investment  in Local  Limited
Partnerships and an increase in operating expenses.



<PAGE>


The Partnership did not recognize  approximately $546,000 of its allocated share
of losses from six Local Limited  Partnerships and  approximately  $5,006,000 of
its allocated share of profits from two Local Limited  Partnerships for the year
ended  December 31, 2000, 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).

Item 7.     Financial Statements

The financial  statements of the Partnership are included on pages 10 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, 2000, and
the related statements of operations, partners' (deficit) equity, and cash flows
for each of the two years in the period ended December 31, 2000. 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 years  ended  December  31, 2000 and 1999.  The  accompanying  statement  of
operations  includes   approximately  $12,000  of  distributions  in  excess  of
investment  from Gates Mills I Limited  Partnership  for the year ended December
31,  1999 (none in 2000).  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 audits 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, 2000,  and the results of its  operations and its cash flows for each of the
two years in the period ended  December 31, 2000 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 14, 2001


<PAGE>






                  NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                              A LIMITED PARTNERSHIP

                         STATEMENT OF FINANCIAL POSITION

                                December 31, 2000

                                (in thousands)






                               ASSETS
   Cash and cash equivalents                                         $       9
   Investments in and advances to Local Limited Partnerships
   (Note 2)                                                              2,545
                                                                     $   2,554
             LIABILITIES AND PARTNERS' (DEFICIT) EQUITY

Liabilities:
  Administrative and reporting fee payable to
     General Partner (Note 3)                                        $   1,089
  Due to General Partner (Note 3)                                          113
  Accrued interest on partner loans (Note 3)                                 8
  Accrued expenses                                                          35
                                                                         1,245
Partners' (deficit) equity:
  General Partner -- The National Housing Partnership (NHP)                (82)
  Original Limited Partner -- 1133 Fifteenth Street

     Associates                                                            (87)
  Other Limited Partners -- 11,509 investment units                      1,478
                                                                         1,309
                                                                     $   2,554

                        See Notes to Financial Statements

<PAGE>



                  NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                              A LIMITED PARTNERSHIP

                            STATEMENTS OF OPERATIONS

                       (in thousands, except unit data)

<TABLE>
<CAPTION>

                                                                 Years Ended December 31,
                                                                    2000           1999

REVENUES:
  Share of profits from Local Limited Partnerships
<S>       <C>                                                  <C>              <C>
    (Note 2)                                                   $   636          $    35
  Interest received on advances to Local Limited
    Partnerships (Note 2)                                           --                9
  Distributions in excess of investment in Local Limited
    Partnership (Note 2)                                            34               79
                                                                   670              123
COST AND EXPENSES:
  Administrative and reporting fees to General
    Partner (Note 3)                                                86               86
  Interest expense on loan from General Partner (Note 3)             6                1
  Other operating expenses                                          80               57
                                                                   172              144

NET INCOME (LOSS)                                              $   498          $   (21)

ALLOCATION OF NET INCOME (LOSS):
  General Partner - NHP                                        $     5          $    --
  Original Limited Partner - 1133 Fifteenth Street
    Associates                                                       5               --
  Other Limited Partners                                           488              (21)
                                                                   498              (21)

NET INCOME (LOSS) PER OTHER LIMITED PARTNERSHIP
  INTEREST                                                     $ 42.40          $ (1.82)

</TABLE>

                        See Notes to Financial Statements

<PAGE>



                  NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                              A LIMITED PARTNERSHIP

                   STATEMENTS OF PARTNERS' (DEFICIT) EQUITY

                                (in thousands)


<TABLE>
<CAPTION>

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

(Deficit) equity at
<S>                                  <C>             <C>          <C>            <C>
   January 1, 1999                 $   (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

Net income for the year ended
   December 31, 2000                     5              5           488            498

(Deficit) equity at
   December 31, 2000               $   (82)        $  (87)      $ 1,478        $ 1,309

Percentage interest at
   December 31, 2000 and 1999           1%             1%           98%           100%
                                        (A)            (B)           (C)
</TABLE>

(A)   General Partner

(B)   Original Limited Partner

(C) Consists of 11,509  investment  units at December 31, 2000 and 1999.  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)
<TABLE>
<CAPTION>


                                                                  Years Ended December 31,
                                                                     2000           1999
CASH FLOWS FROM OPERATING ACTIVITIES:
  Interest received on advances to Local Limited
<S>                                                                <C>             <C>
   Partnerships                                                    $  --           $   9
  Distributions in excess of investment in Local
    Limited Partnerships                                              34              79
  Operating expenses paid                                            (83)            (74)

  Net cash (used in) provided by operating activities                (49)             14

CASH FLOWS FROM INVESTING ACTIVITIES:
  Repayment of advances to Local Limited Partnerships                 20               8
  Advances to Local Limited Partnerships                             (89)             --

  Net cash (used in) provided by investing activities                (69)              8

CASH FLOWS FROM FINANCING ACTIVITIES:
  Advances from General Partner                                      104               1

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                 (14)             23

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                          23              --

CASH AND CASH EQUIVALENTS, END OF YEAR                             $   9           $  23

RECONCILIATION  OF NET INCOME (LOSS) TO NET CASH (USED IN) PROVIDED BY OPERATING
  ACTIVITIES:

Net income (loss)                                                  $ 498           $ (21)
Adjustments to reconcile net income (loss) to net cash used
  in operating activities:
   Share of profits from Local Limited Partnerships                 (636)            (35)
   Increase in administrative and reporting fees
     payable to General Partner                                       86              86
   Increase in accrued interest on partner loans                       6               1
   Decrease in accrued expenses                                       (3)            (17)

         Total adjustments                                          (547)             35

      Net cash (used in) provided by operating activities          $ (49)          $  14

                        See Notes to Financial Statements
</TABLE>

<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"). 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.

Fair Value of Financial Instruments

Statement of Financial Accounting Standards ("SFAS") 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

SFAS  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.  Due to the very nature of the
Partnership's  operations,  the  General  Partner  believes  that  segment-based
disclosures will not result in a more meaningful presentation than the financial
statements as currently presented.



<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.   During  2000,  Fairmeadows  Limited  Partnership  and  Southridge
Apartments Limited Partnership sold their rental properties.

During 2000, Fairmeadows Limited Partnership entered into a sales agreement with
an unaffiliated third party for the sale of Fairmeadows Apartments.  The closing
occurred on December 27, 2000,  with a sale price of  approximately  $5,050,000.
Net  proceeds  of  approximately  $4,780,000  were  used to repay  the  mortgage
encumbering  the property  with the holders  ("AIMCO") of the  Fairmeadows  note
payable receiving the remaining net proceeds in full satisfaction of amounts due
on their notes. Any unpaid balances were forgiven. The Local Limited Partnership
recorded a gain on sale of approximately  $684,000 and an extraordinary  gain on
debt forgiveness of approximately $2,186,000.

During 2000,  Southridge  Apartments  Limited  Partnership  entered into a sales
agreement  with  an  unaffiliated   third  party  for  the  sale  of  Southridge
Apartments.  The closing  occurred on December  27,  2000,  with a sale price of
approximately $6,000,000.  Net proceeds of approximately $5,673,000 were used to
repay the mortgage  encumbering  the property with the holders  ("AIMCO") of the
Southridge   note  payable   receiving   the  remaining  net  proceeds  in  full
satisfaction of amounts due on their notes. Any unpaid balances were forgiven.
The  Local  Limited  Partnership  recognized  a gain on  sale  of  approximately
$916,000  and  an  extraordinary  gain  on  debt  forgiveness  of  approximately
$1,904,000.

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 these two Local Limited Partnerships was
approximately  $103,000  and $35,000 for the years ended  December  31, 2000 and
1999, respectively.  Due to the sale of the property held by Fairmeadows Limited
Partnership a gain on sale of approximately  $623,000 and an extraordinary  gain
on debt forgiveness of approximately  $2,186,000 were recorded,  which more than
offset losses in previous years. The Partnership's  share of profits  recognized
in 2000 from this Local Limited  Partnership  was  approximately  $533,000.  The
Partnership  did not recognize  approximately  $546,000 and $1,183,000 of losses
from  six  and  seven  Local   Limited   Partnerships   during  2000  and  1999,
respectively.  As of December  31,  2000,  the  Partnership  has not  recognized
approximately  $13,314,000 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,
2000 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% or
11.50% at December 31, 2000.  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  2000,  the  Partnership  advanced  approximately  $89,000 to  Southridge
Apartments  Limited  Partnership for working capital purposes.  No advances were
made  by  the  Partnership  to  the  Local  Limited  Partnerships  during  1999.
Repayments  of advances of  approximately  $20,000 and $8,000 were received from
one  Local  Limited  Partnership  during  2000 and 1999,  respectively.  Accrued
interest of approximately $9,000 was received from one Local Limited Partnership
during 1999.

Summaries of the combined financial position of the aforementioned Local Limited
Partnerships as of December 31, 2000, and the combined results of operations for
each of the two years in the period ended December 31, 2000, are provided on the
following page.

                        CONDENSED COMBINED FINANCIAL POSITION
                          OF THE LOCAL LIMITED PARTNERSHIPS
                                    (in thousands)
                                                              December 31, 2000
Assets:
  Land                                                               $  2,285
  Buildings and improvements, net of accumulated
   depreciation of approximately $12,124                               16,315
  Other assets                                                          4,678
                                                                     $ 23,278
Liabilities and Partners' Deficit:
  Liabilities:
  Mortgage notes payable                                             $  9,417
  Notes payable                                                         8,791
  Accrued interest on notes payable                                    13,739
  Other liabilities                                                     3,154

                                                                       35,101
Partners' Deficit:
  National Housing Partnership Realty Fund I                         (11,565)
  Other partners                                                        (258)
                                                                    $(11,823)
                                                                    $ 23,278


                       CONDENSED COMBINED RESULTS OF OPERATIONS
                          OF THE LOCAL LIMITED PARTNERSHIPS
                                    (in thousands)

<TABLE>
<CAPTION>

                                                         Years Ended December 31,
                                                           2000             1999

<S>                                                      <C>              <C>
Rental income                                            $ 7,690          $ 7,417
Other income                                                 397              360
Gain on sale of rental property                            1,600               --

Total revenues                                             9,687            7,777

Expenses:
  Operating expenses                                       5,939            5,824
  Financial expenses                                          88               85
  Interest on notes payable                                1,302            1,294
  Depreciation                                             1,302            1,184
  Impairment loss on rental property                          --              422

    Total expenses                                         8,631            8,809

Income (loss) before extraordinary item                    1,056           (1,032)

Extraordinary gain on forgiveness of debt                  4,090               --

Net income (loss)                                        $ 5,146         $ (1,032)
</TABLE>

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,  2000  and  1999  the  projects  received  a total of
approximately $3,300,000 and $3,161,000,  respectively of rental assistance from
HUD.

In 1997 and again in 1999,  Congress  enacted new ways to determine  rent levels
for properties  receiving HUD's rental  assistance under Section 8 of the United
States  Housing Act of 1937 ("Section 8") after the expiration of their original
Section 8 contracts.  This new legislation  will affect 910 units, or 80% of the
units in which the Partnership has invested.  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 expiring  Section 8 contracts and which have been receiving rents
deemed to be above  comparable  market  levels for  unassisted  properties,  and
financed  with  HUD-insured  mortgage  loans,  will  have,  upon the  renewal or
extension of Section 8 contracts,  rents  marked to market  rents.  This will be
accomplished  in  various  ways,  the goal  being to  reduce  Section 8 rents to
comparable  market  levels,  thereby  reducing  the  federal  Section  8 subsidy
obligation,  and (ideally) by simultaneously lowering, or eliminating,  required
debt  service  costs  (and  decreasing  operating  costs)  as  needed  to ensure
financial  viability at the reduced rent levels. The program also incorporates a
requirement  to  perform  any  repair  or  rehabilitation  deemed  necessary  by
depositing  funds to cover the first twelve month's work, and making  sufficient
monthly reserve  deposits to ensure work required in succeeding  years. In 1999,
the Congress  enacted  legislation (the "1999 Housing Act") that expanded on and
clarified  the  provisions  of  the  1997  Housing  Act,  including   permitting
properties whose Section 8 rents were below comparable  market rents to increase
their Section 8 rents to market.

The 1997 and 1999  Housing  Acts  (together,  the  "Housing  Acts")  permit  the
retention of project  based  Section 8 contracts  for most  properties in rental
markets  with a limited  supply of  affordable  housing or where the tenants are
particularly  vulnerable  populations  including the elderly,  disabled or large
families.  In markets in rental  markets  without a limited supply of affordable
housing,  the Housing  Acts  provide for  phasing out project  based  subsidies,
converting the assistance to tenant based assistance or vouchers. Under a tenant
based  system,  rental  vouchers  would be issued to qualified  tenants who then
could elect to reside at properties  of their choice,  including the property in
which they  currently  reside.  Voucher  rent  levels are  established  by local
housing  authorities under guidelines set by HUD. While the Partnership does not
expect the  provisions of the Housing Acts to result in a significant  number of
tenants relocating from the properties owned by the Local Limited  Partnerships,
there can be no assurance that the new legislation  will not  significantly  and
adversely  affect  the  operations  of  the  properties  of  the  Local  Limited
Partnerships.

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 of     Percentage of Total    Percentage of Total
                         Units        Subsidized Units          Total Units

2001                      796                87%                    70%
2002                       --                --                     --
Thereafter                114                13%                    10%

Total                     910               100%                    80%

Of the units (910 in total)  receiving rent subsidies from Section 8, 796 of the
units have their  contracts  expiring  during the year ending December 31, 2001.
The  Housing  Acts  provide  for several  options  under  which a Local  Limited
Partnership  may elect, as  appropriate,  to renew its Section 8 contracts:  (1)
marking  rents up to the  comparable  market  rent,  if current  rents are below
market;  (2) renewing rents at the current  level,  if the level does not exceed
comparable  market rents, and receiving an operating cost adjustment  factor (an
"OCAF")  or a budget  based  rent  increase,  as long as the rents do not exceed
comparable  market rents; (3) marking rents down to comparable market rents; (4)
marking their rents down to an "exception  rent" level,  when comparable  market
rents would be too low to permit  continued  operation of the property under the
Section 8 program,  even with full debt restructuring;  or (5) opting out of the
section 8 program.  For  properties  assisted  by Section 8, but not  subject to
these provisions  (including,  but not limited to,  properties which do not have
underlying HUD insured  mortgages,  or which have been financed  through certain
state housing finance agency or bond-financed mortgage programs),  rents will be
continued at current levels,  plus an OCAF or (in some instances) a budget based
rent increase. In addition, properties can opt out of the Section 8 program only
if very strict notice  requirements have been met,  including a requirement that
HUD, the tenants, and the local governing body, be given twelve months notice of
a Local  Limited  Partnership's  intention  to opt out of the  program  prior to
contract termination.

Each of the options  requires an application to HUD, and, to a greater or lesser
extent,  the  fulfillment  of certain  procedural  submission  requirements  and
financial   requirements,   which  must  be  weighed  in  connection   with  the
determination of which option to select.

The Section 8  requirements  are separate  from the  requirements  governing the
underlying  HUD-insured  mortgage  loans,  and any  other  HUD,  state  or local
requirements, all of which must be fulfilled,  irrespective of the option chosen
with regard to the continuation of Section 8 participation.

Depreciation  of the  buildings  and  improvements  for six 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:

<TABLE>
<CAPTION>

Local Partnership                           Due Date    Note Amount  Accrued Interest
                                                                (in thousands)
<S>                                         <C>           <C>             <C>
Griffith Limited Partnership                10/31/97*     $  1,199        $ 1,735
Southward Limited Partnership               10/4/98*         1,609          2,353
Northgate Village Limited Partnership       7/26/99*           969          1,592
San Jose Limited Partnership                8/29/99*         1,699          2,778
Gates Mills I Limited Partnership           10/1/99*         2,667          4,333
Hurbell IV Limited Partnership              11/9/99*           648            948

Total Delinquent                                          $  8,791       $ 13,739
</TABLE>

* Notes are in default.


SFAS 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, 2000. 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 2000 and 1999. No payments for
such fees were made to the General  Partner in 2000 and 1999. As of December 31,
2000, the Partnership owed  approximately  $1,089,000 to the General Partner for
accrued administrative and reporting fees.

During 2000 and 1999, the General Partner  advanced  approximately  $104,000 and
$1,000,  respectively,   to  the  Partnership  to  pay  operating  expenses.  No
repayments  were  made by the  Partnership  during  2000 and 1999.  Interest  is
charged on the borrowing at the Chase  Manhattan  Bank prime  interest rate plus
2%. Chase Manhattan Bank prime was 9.50% at December 31, 2000.  Interest accrued
for the years  ended  December  31, 2000 and 1999 was  approximately  $6,000 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") is the
project management agent for the projects operated by eight of the Local Limited
Partnerships.  NHPMC and other affiliates of NCHP earned approximately  $703,000
and $645,000 from the Local Limited  Partnerships  for management fees and other
services  provided  to the  Local  Limited  Partnerships  during  2000 and 1999,
respectively. At December 31, 2000, the amount due NHPMC and unpaid by the Local
Limited Partnerships amounted to approximately $22,000.

Personnel working at the project sites, which are managed by NHPMC are employees
of NHPMC.  The  projects  reimburse  NHPMC for the actual  salaries  and related
benefits  of such  employees.  Total  reimbursements  earned  for  salaries  and
benefits  for the years ended  December  31, 2000 and 1999,  were  approximately
$1,005,000 and $1,029,000, respectively.

An affiliate of the Local Partner of Gates Mills I Limited Partnership  provides
management  services for the property  owned by the Local  Limited  Partnership.
During 2000 and 1999, the affiliate received  approximately $69,000 in each year
for these services.  Additionally,  in 2000,  approximately  $16,000 was paid to
this affiliate for  accounting  services and  approximately  $12,000 was paid to
another affiliate for painting services. No such payments were made in 1999.



<PAGE>


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,
                                                     2000            1999
                                                       (in thousands)

Net income (loss) per financial statements          $ 498           $ (21)

  Other                                                 89             66
  Partnership's share of limited local
   Partnership's income (loss)                       2,491            (13)

Income per tax return                              $ 3,078           $ 32


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

                                                   December 31, 2000
                                                     (in thousands)

      Net assets as reported                           $  1,309
      Add (deduct):
       Investment in Partnerships                       (22,699)
       Other                                               (346)
      Net deficit - federal tax basis                  $(21,736)

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, and  therefore,
the notes are in default (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  statements of
operations  is  calculated  based  on the  number  of units  outstanding  at the
beginning of the year. There were no such abandonments in 2000.

8.    LEGAL PROCEEDINGS

In October 1997,  NHP received a subpoena from the Inspector  General  ("IG") of
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 (the "Transactions").  Documents were produced which
may have been  responsive to the HUD subpoena and submitted to the HUD Inspector
General in 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
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  do  not  believe  that  the
investigations  will result in a material  adverse  impact on their  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

<S>                          <C>     <C>        <C>            <C>           <C>
Forest Green                 (1)     $  170     $ 2,062        $   493       $     --
 Limited Partnership
Gates Mills I                (1)        669       6,058             96             --
 Limited Partnership
Griffith                     (1)        270       2,624            724         (1,000)
 Limited Partnership
Northgate Village            (1)        220       2,953            710            (17)
 Limited Partnership
Southward                    (1)        220       4,110            745           (900)
 Limited Partnership
San Jose                     (1)        440       4,728          1,609             --
 Limited Partnership
Hurbell IV                   (1)        100       2,159            168         (1,460)
 Limited Partnership
Village Green
 Limited Partnership         (1)        137       2,096            540             --
  Totals                             $2,226     $26,790        $ 5,085      $  (3,377)
</TABLE>


<TABLE>
<CAPTION>

                         Gross Amount At Which
                                Carried
                         At December 31, 2000
                            (in thousands)
                                                                                 Life upon which
                                                                                 depreciation in
                            Buildings                                                latest
                               And                                                  statement
                             Related                                              of operations
                            Personal             Accumulated   Date of      Date    is computed
     Description      Land  Property  Total(2)   Depreciation Constructin Acquired   (years)
                                         (3)         (3)

<S>                   <C>    <C>      <C>          <C>          <C>         <C>        <C>
Forest Green          $175   $ 2,550  $  2,725     $   1,085    1972        8/84       5-50
 Limited Partnership
Gates Mills I          669     6,154     6,823         2,316    1972       10/84       5-30

 Limited Partnership
Griffith Limited
 Partnership           271     2,347     2,618         1,096    1973       11/84       5-50

Northgate Village
 Limited Partnership   212     3,654     3,866         1,562    1973        7/84       5-50

Southward
 Limited Partnership   229     3,946     4,175         1,793    1972       10/84       5-50

San Jose Limited
 Partnership           485     6,292     6,777         2,882    1970        9/84       5-50

Hurbell IV
 Limited Partnership   101       866       967           271    1974       11/84       5-40

Village Green
 Limited Partnership   143     2,630     2,773         1,119    1971        8/84       5-50

  Totals            $2,285   $28,439   $30,724       $12,124
</TABLE>


(1) Schedule of Encumbrances

<TABLE>
<CAPTION>

                                                                   Notes
                                                                Payable and
                                                   Mortgage       Accrued
Partnership Name                                    Notes        Interest      Total
                                                             (in thousands)
<S>                                                 <C>            <C>       <C>
Forest Green Limited Partnership                    $ 810          $   --    $   810

Gates Mills I Limited Partnership                    1,941          7,000      8,941

Griffith Limited Partnership                           873          2,934      3,807

Northgate Village Limited Partnership                1,193          2,561      3,754

Southward Limited Partnership                        1,324          3,962      5,286

San Jose Limited Partnership                         1,691          4,477      6,168

Hurbell IV Limited Partnership                         928          1,596      2,524

Village Green Limited Partnership                      657             --        657

  Total - December 31, 2000                        $ 9,417        $22,530    $31,947
</TABLE>

(2)   The   aggregate   cost  of  land  for  Federal   income  tax  purposes  is
      approximately   $1,902,000  and  the  aggregate  costs  of  buildings  and
      improvements for Federal income tax purposes is approximately $31,713,000.
      The total of the above-mentioned items is approximately $33,615,000.

(3)    Reconciliation of real estate

                                                 Years Ended December 31,
                                                   2000           1999
                                                      (in thousands)
Balance at beginning of period                   $ 43,519       $ 43,136
Improvements during the period                      1,432            805
Disposals of rental properties                    (14,227)            --
Impairment losses on rental property                   --           (422)
Balance at end of period                         $ 30,724       $ 43,519

Reconciliation of accumulated depreciation

                                                 Years Ended December 31,
                                                   2000           1999
                                                      (in thousands)
Balance at beginning of period                   $ 16,071       $ 14,887
Depreciation expense for the period                 1,302          1,184
Disposals of rental properties                     (5,249)            --
Balance at end of period                         $ 12,124       $ 16,071



<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

The Partnership has no directors, executive officers or significant employees of
its own.

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.

Lance J. Graber (39) was appointed  Executive Vice  President - Acquisitions  of
NCHP and AIMCO in October 1999. His principal business function is acquisitions.
Prior to joining  AIMCO,  Mr. Graber was an Associate from 1991 through 1992 and
then a Vice  President  from 1992  through  1994 at Credit  Suisse  First Boston
engaged in real estate financial advisory services and principal  investing.  He
was a Director  there from 1994 to May 1999,  during which time he  supervised a
staff of seven in the making of principal investments in hotel, multi-family and
assisted living  properties.  Mr. Graber received a B.S. and an M.B.A.  from the
Wharton School of the University of Pennsylvania.

Patrick  J. Foye (age 43) has been  Executive  Vice  President  of NCHP  since
October 1, 1998 and was  appointed  President in September  1999.  Mr. Foye is
responsible  for  acquisitions  of partnership  securities,  consolidation  of
minority interests and corporate and other  acquisitions.  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.

Lance J. Graber (age 39).  See "Directors of NCHP."

Patrick J. Foye  (age 43). See "Directors of NCHP."

Steven D. Ira (age 49) 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 52) was  appointed  Executive  Vice  President,  General
Counsel and  Secretary of NCHP and AIMCO  effective  December  1997.  Prior to
joining 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 Washington,  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 44) 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 41) 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.  Martha  L.  Long has been  Senior  Vice  President  and
Controller  of the  General  Partner  since  October  1998  as a  result  of the
acquisition of Insignia  Financial Group, Inc. As of February 2001, Ms. Long was
also appointed head of the service business for AIMCO.

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

The  executive  officers  and  director  of  the  General  Partner  fulfill  the
obligations  of the Audit  Committee  and  oversee the  Partnership's  financial
reporting  process on behalf of the General Partner.  Management has the primary
responsibility for the financial  statements and the reporting process including
the systems of internal controls. In fulfilling its oversight  responsibilities,
the executive  officers and director of the General Partner reviewed the audited
financial  statements with management including a discussion of the quality, not
just the  acceptability,  of the accounting  principles,  the  reasonableness of
significant  judgments,   and  the  clarity  of  disclosures  in  the  financial
statements.

The  executive  officers and director of the General  Partner  reviewed with the
independent  auditors,  who are  responsible  for  expressing  an opinion on the
conformity  of  those  audited  financial  statements  with  generally  accepted
accounting  principles,  their  judgments  as  to  the  quality,  not  just  the
acceptability, of the Partnership's accounting principles and such other matters
as are required to be discussed with the Audit Committee or its equivalent under
generally  accepted  auditing  standards.   In  addition,  the  Partnership  has
discussed  with  the  independent  auditors  the  auditors'   independence  from
management and the Partnership  including the matters in the written disclosures
required by the Independence Standards Board and considered the compatibility of
non-audit services with the auditors' independence.

The executive  officers and director of the General  Partner  discussed with the
Partnership's  independent auditors the overall scope and plans for their audit.
In  reliance on the reviews and  discussions  referred to above,  the  executive
officers and director of the General  Partner has approved the  inclusion of the
audited financial  statements in the Form 10-KSB for the year ended December 31,
2000 for filing with the Securities and Exchange Commission.



<PAGE>


The General Partner has reappointed Ernst & Young LLP as independent auditors to
audit the financial  statements of the  Partnership for the current fiscal year.
Fees for the last  fiscal  year  were  annual  audit of  $39,000  and  non-audit
services (principally tax-related) of $6,000.

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,
2000.

         Name of Beneficial Owner              Number of Units        % of Class

AIMCO and affiliates                                1286.5              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 2000 and 1999. No payments for
such fees were made to the General  Partner in 2000 and 1999. As of December 31,
2000, the Partnership owed  approximately  $1,089,000 to the General Partner for
accrued administrative and reporting fees.

During 2000 and 1999, the General Partner  advanced  approximately  $104,000 and
$1,000,  respectively,   to  the  Partnership  to  pay  operating  expenses.  No
repayments  were  made by the  Partnership  during  2000 and 1999.  Interest  is
charged on the borrowing at the Chase  Manhattan  Bank prime  interest rate plus
2%. Chase Manhattan Bank prime was 9.50% at December 31, 2000.  Interest accrued
for the years  ended  December  31, 2000 and 1999 was  approximately  $6,000 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") is the
project management agent for the projects operated by eight of the Local Limited
Partnerships.  NHPMC and other affiliates of NCHP earned approximately  $703,000
and $645,000 from the Local Limited  Partnerships  for management fees and other
services  provided  to the  Local  Limited  Partnerships  during  2000 and 1999,
respectively. At December 31, 2000, the amount due NHPMC and unpaid by the Local
Limited Partnerships amounted to approximately $22,000.

Personnel working at the project sites, which are managed by NHPMC are employees
of NHPMC.  The  projects  reimburse  NHPMC for the actual  salaries  and related
benefits  of such  employees.  Total  reimbursements  earned  for  salaries  and
benefits  for the years ended  December  31, 2000 and 1999,  were  approximately
$1,005,000 and $1,029,000, respectively.



<PAGE>


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 2000 and 1999, the affiliate received  approximately $69,000 in each year
for these services.  Additionally,  in 2000,  approximately  $16,000 was paid to
this affiliate for  accounting  services and  approximately  $12,000 was paid to
another affiliate for painting services. No such payments were made in 1999.


<PAGE>



                                     PART IV


Item 13.   Exhibits and Reports on Form 8-K

      (a)   Exhibits


            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 2000:

            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




April 16, 2001                            /s/Patrick J. Foye
Date                                      Patrick J. Foye
                                          President

April 16, 2001                            /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:




April 16, 2001                            /s/ Patrick J. Foye
Date                                      Patrick J. Foye
                                          President

April 16, 2001                            /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 YEARS ENDED DECEMBER 31, 2000 AND 1999



<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, 2000,
and the related combined statements of operations,  partners' deficit,  and cash
flows for each of the two years in the period ended  December  31,  2000.  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,  2000 which
reflect  total  assets of 28% of combined  total assets as of December 31, 2000,
and net losses  which  reflect  $355,000 of combined  net loss for the year then
ended.  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  $702,000 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 audits 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  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, 2000, and the combined  results of their operations and their
cash flows for each of the two years in the period  ended  December  31, 2000 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 14, 2001


<PAGE>


Independent Auditor's Report


Partners Hurbell IV 2000

We have audited the financial statements of Hurbell IV Limited  Partnership,  (a
limited partnership), FHA Project No. 062-44054-LD, as of and for the year ended
December 31, 2000, and have issued our report thereon dated February 16, 2001.

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.

Compliance  with laws,  regulations,  contracts,  and grants  applicable  to the
Partnership  is the  responsibility  of the  Partnership  Agreement.  As part of
obtaining  reasonable  assurance about whether the financial statements are free
of material  misstatement,  we performed tests of the  Partnership's  compliance
with certain  provisions  of laws,  regulations,  and  contracts.  However,  the
objective of our audit of the financial statements was not to provide an opinion
on overall compliance with such provisions.  Accordingly, we do not express such
an opinion.

The  results of our tests  disclosed  no  instances  of  noncompliance  that are
required to be reported herein under Government Auditing Standards.

This report is intended  for the  information  of the audit  committee,  general
partner,  management,  and the  Department  of  Housing  and Urban  Development.
However,  this report is a matter of public record and its  distribution  is not
limited.

                                                              /s/Smith & Radigan

Atlanta, Georgia
February 16, 2001


<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


To the Partners
Gates Mills I Limited Partnership

We  have  audited  the  accompanying  balance  sheet  of  Gates  Mill I  Limited
Partnership, An Ohio Limited Partnership,  F.H.A. Project No.: 042-44062-LDP, as
of December 31, 2000, and the related statements of operations, partners' equity
(deficit) and cash flow 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, 2000, and the results of its operations,  changes
in  partners'  equity  (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 deferred acquisition notes
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 continued 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  fro 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 27
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 19,
2001,  on our  consideration  of Gates  Mills I Limited  Partnership's  internal
control and on its compliance with specific requirements applicable to major HUD
programs and fair housing and non-discrimination.  Those reports are an integral
part of an audit performed in accordance with Government  Auditing Standards and
should be read in conjunction with this report in considering the results of our
audit.

                                                 /s/Reznick Fedder & Silverman

Bethesda, Maryland
January 19, 2001

<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, 2000, 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 STATEMENT OF FINANCIAL POSITION


                                December 31, 2000
                                (in thousands)

                                        ASSETS
Cash and cash equivalents                                           $   529
Accounts receivable, net (Note 2)                                       425
Tenants' security deposits held in trust funds                          242
Prepaid taxes and insurance                                              72
Deposits                                                                 39
Mortgage escrow deposits (Note 5)                                     3,371
Rental property, net (Notes 4, 5, and 9)                             18,600
                                                                   $ 23,278


                          LIABILITIES AND PARTNERS' DEFICIT
Accounts payable and accrued expenses:
  Trade payables                                                    $   684
  Accrued real estate taxes                                             166
  Due to management agent - NHPMC (Note 10)                              22
  Due to partners (Note 7)                                            1,436
  Accrued interest on partner loans (Note 7)                            679
                                                                      2,987

Tenants' security deposits payable                                      167
Notes payable (Note 6)                                                8,791
Accrued interest on notes payable (Note 6)                           13,739
Mortgage notes payable (Note 5)                                       9,417
Partners' deficit                                                   (11,823)
                                                                   $ 23,278

                  See Notes to Combined Financial Statements

<PAGE>


                                  EXHIBIT 99.1

                  NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                           LOCAL LIMITED PARTNERSHIPS

                        COMBINED STATEMENTS OF OPERATIONS
                                (in thousands)

<TABLE>
<CAPTION>

                                                              Years Ended December 31,
                                                                  2000         1999
REVENUE:
<S>                                                             <C>          <C>
  Rental income (Note 3)                                        $ 7,690      $ 7,417
  Interest income                                                   152          161
  Other income                                                      245          199
  Gain on sale of rental property (Note 13)                       1,600           --
                                                                  9,687        7,777
EXPENSES:
  Administrative expenses (Note 10)                               1,848        1,760
  Operating and maintenance expenses                              1,444        1,590
  Utilities and maintenance expenses                              1,626        1,519
  Depreciation (Note 1)                                           1,302        1,184
  Taxes and insurance                                               946          880
  Financial expenses - primarily interest (Note 5)                   88           85
  Interest on notes payable (Notes 6 and 7)                       1,302        1,294
  Annual partnership administrative fees to General
    Partner (Note 7)                                                 75           75
  Impairment loss on rental property (Note 9)                        --          422
                                                                  8,631        8,809

  Income (loss) before extraordinary item                         1,056       (1,032)
  Extraordinary gain on forgiveness of debt (Note 13)             4,090           --

  NET INCOME (LOSS)                                             $ 5,146     $ (1,032)

                  See Notes to Combined Financial Statements
</TABLE>

<PAGE>


                                  EXHIBIT 99.1

                  NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                           LOCAL LIMITED PARTNERSHIPS

                   COMBINED STATEMENTS OF PARTNERS' DEFICIT
                                (in thousands)


<TABLE>
<CAPTION>


                                  National          The
                                   Housing       National
                                 Partnership      Housing    Jeffrey I.
                                Realty Fund I   Partnership   Friedman      Total

<S>                               <C>           <C>           <C>         <C>
Deficit at January 1, 1999       $(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)

Net income (loss)                   5,098           51            (3)       5,146

Distributions                         (34)          --            --          (34)

Deficit at December 31, 2000     $(11,565)     $  (204)      $   (54)    $(11,823)

Percentage interest at
  December 31, 2000 and 1999      (A)             (B)         (C)
</TABLE>

(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)

<TABLE>
<CAPTION>

                                                                Years Ended December 31,
                                                                  2000            1999
CASH FLOWS FROM OPERATING ACTIVITIES:
  Receipts:
<S>                                                           <C>              <C>
   Rental receipts                                            $ 7,601          $  7,533
   Interest receipts                                              138               163
   Other operating receipts                                       246               231
   Entity receipts:
     Miscellaneous receipts                                         3                 2
   Total receipts                                               7,988             7,929
  Disbursements:
   Administrative                                                (433)             (558)
   Management fees                                               (742)             (681)
   Utilities paid                                              (1,640)           (1,503)
   Salaries and wages                                          (1,230)           (1,206)
   Operating and maintenance                                     (870)             (770)
   Real estate taxes                                             (537)             (600)
   Property insurance                                            (159)             (192)
   Miscellaneous taxes and insurance                             (277)             (236)
   Tenant security deposits                                       (70)               (1)
   Other operating disbursements                                  (58)              (34)
   Interest on mortgage                                           (29)               (8)
   Mortgage insurance premium                                     (76)              (56)
   Miscellaneous financial                                         (7)              (12)
   Entity disbursements:
     Interest on notes payable                                     --               (10)
     Miscellaneous disbursements                                  (17)              (97)
   Total disbursements                                         (6,145)           (5,964)
Net cash provided by operating activities                       1,843             1,965
CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds from disposals of rental properties                 10,717                --
  Net change in mortgage escrow deposits                         (300)             (157)
  Net purchase of fixed assets                                 (1,432)             (805)
  Other investing                                                  (2)                5
Net cash provided by (used in) investing activities             8,983              (957)
CASH FLOWS FROM FINANCING ACTIVITIES:
  Repayments of mortgage notes payable                         (3,413)               --
  Payment in satisfaction of notes payable and accrued
    interest                                                   (7,014)               --
  Mortgage principal payments                                    (701)             (649)
  Distributions to partners                                       (34)              (80)
  Proceeds from loans or notes payable                            152                --
  Principal payments on loan or notes payable                      --                (8)
  Other financing                                                  --               (54)
Net cash used in financing activities                         (11,010)             (791)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS             (184)              217
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                      713               496
CASH AND CASH EQUIVALENTS, END OF YEAR                       $    529          $    713


                  See Notes to Combined Financial Statements
</TABLE>

<PAGE>


                                  EXHIBIT 99.1

                  NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                           LOCAL LIMITED PARTNERSHIPS

                        COMBINED STATEMENTS OF CASH FLOWS

                                   (Continued)

<TABLE>
<CAPTION>

                                                                Years Ended December 31,
                                                                  2000            1999
reconciliation of net INCOME (loss) to net cash provided
  TO OPERATING ACTIVITIES:

<S>                                                            <C>             <C>
  Net income (loss)                                            $ 5,146         $ (1,032)
  Adjustments to reconcile net income (loss) to net cash
   provided by operating activities:
   Depreciation                                                  1,302             1,184
   Gain on sale of rental properties                            (1,600)               --
   Extraordinary gain on forgiveness of debt                    (4,090)               --
   Impairment loss on rental property                               --               422
   Changes in operating assets and liabilities:
     Tenants accounts receivable                                    30                8
     Accounts receivable - other                                  (153)              64
     Accrued receivables                                           (10)              (1)
     Prepaid expenses                                               (3)              (2)
     Cash restricted for tenant security deposits                   (5)              11
     Accounts payable trade                                        (17)             122
     Accrued liabilities                                             5             (143)
     Accrued interest - notes payable                            1,254            1,285
     Tenant security deposits held in trust                        (64)             (12)
     Prepaid revenue                                               (28)              76
     Entity liability accounts                                      76              (17)

  Total adjustments                                             (3,303)           2,997

NET CASH PROVIDED BY OPERATING ACTIVITIES                      $ 1,843          $ 1,965


                  See Notes to Combined Financial Statements
</TABLE>

<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's  revenue  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"). 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.

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 (rental property sold December 27, 2000)
      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
        (rental property sold December 27, 2000)
      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  six 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.


<PAGE>




2.    ACCOUNTS RECEIVABLE

Accounts receivable consist of the following:

                                                December 31, 2000
                                                 (in thousands)
Net tenant accounts receivable                        $  45
Housing assistance receivable (see Note 3)              299
Accounts receivable - interest                           31
Interest reduction payment receivable                    10
Accounts and notes receivable - operations               40

Net accounts receivable                               $ 425

3.    HOUSING ASSISTANCE AGREEMENTS

The Federal  Housing  Administration  (FHA) has  contracted  with the nine 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  three  years.  Each  Local  Limited
Partnership   had  an  agreement  in  effect  during  2000.  The  Local  Limited
Partnerships received a total of approximately  $3,300,000 and $3,161,000 in the
form of housing assistance payments during 2000 and 1999, respectively, which is
included in "Rental Income" on the combined statements of operations.

In 1997 and again in 1999,  Congress  enacted new ways to determine  rent levels
for properties  receiving HUD's rental  assistance under Section 8 of the United
States  Housing Act of 1937 ("Section 8") after the expiration of their original
Section 8 contracts.  This new legislation  will affect 910 units, or 80% of the
units in which the Partnership has invested.  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 expiring  Section 8 contracts and which have been receiving rents
deemed to be above  comparable  market  levels for  unassisted  properties,  and
financed  with  HUD-insured  mortgage  loans,  will  have,  upon the  renewal or
extension of Section 8 contracts,  rents  marked to market  rents.  This will be
accomplished  in  various  ways,  the goal  being to  reduce  Section 8 rents to
comparable  market  levels,  thereby  reducing  the  federal  Section  8 subsidy
obligation,  and (ideally) by simultaneously lowering, or eliminating,  required
debt  service  costs  (and  decreasing  operating  costs)  as  needed  to ensure
financial  viability at the reduced rent levels. The program also incorporates a
requirement  to  perform  any  repair  or  rehabilitation  deemed  necessary  by
depositing  funds to cover the first twelve month's work, and making  sufficient
monthly reserve  deposits to ensure work required in succeeding  years. In 1999,
the Congress  enacted  legislation (the "1999 Housing Act") that expanded on and
clarified  the  provisions  of  the  1997  Housing  Act,  including   permitting
properties whose Section 8 rents were below comparable  market rents to increase
their Section 8 rents to market.

The 1997 and 1999  Housing  Acts  (together,  the  "Housing  Acts")  permit  the
retention of project  based  Section 8 contracts  for most  properties in rental
markets  with a limited  supply of  affordable  housing or where the tenants are
particularly  vulnerable  populations  including the elderly,  disabled or large
families.  In markets in rental  markets  without a limited supply of affordable
housing,  the Housing  Acts  provide for  phasing out project  based  subsidies,
converting the assistance to tenant based assistance or vouchers. Under a tenant
based  system,  rental  vouchers  would be issued to qualified  tenants who then
could elect to reside at properties  of their choice,  including the property in
which they  currently  reside.  Voucher  rent  levels are  established  by local
housing  authorities under guidelines set by HUD. While the Partnership does not
expect the  provisions of the Housing Acts to result in a significant  number of
tenants relocating from the properties owned by the Local Limited  Partnerships,
there can be no assurance that the new legislation  will not  significantly  and
adversely  affect  the  operations  of  the  properties  of  the  Local  Limited
Partnerships.

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 of     Percentage of Total    Percentage of Total
                         Units        Subsidized Units          Total Units

2001                      796                87%                    70%
2002                       --                --                     --
Thereafter                114                13%                    10%

Total                     910               100%                    80%

Of the units (910 in total)  receiving rent subsidies from Section 8, 796 of the
units have their  contracts  expiring  during the year ending December 31, 2001.
The  Housing  Acts  provide  for several  options  under  which a Local  Limited
Partnership  may elect, as  appropriate,  to renew its Section 8 contracts:  (1)
marking  rents up to the  comparable  market  rent,  if current  rents are below
market;  (2) renewing rents at the current  level,  if the level does not exceed
comparable  market rents, and receiving an operating cost adjustment  factor (an
"OCAF")  or a budget  based  rent  increase,  as long as the rents do not exceed
comparable  market rents; (3) marking rents down to comparable market rents; (4)
marking their rents down to an "exception  rent" level,  when comparable  market
rents would be too low to permit  continued  operation of the property under the
Section 8 program,  even with full debt restructuring;  or (5) opting out of the
section 8 program.  For  properties  assisted  by Section 8, but not  subject to
these provisions  (including,  but not limited to,  properties which do not have
underlying HUD insured  mortgages,  or which have been financed  through certain
state housing finance agency or bond-financed mortgage programs),  rents will be
continued at current levels,  plus an OCAF or (in some instances) a budget based
rent increase. In addition, properties can opt out of the Section 8 program only
if very strict notice  requirements have been met,  including a requirement that
HUD, the tenants, and the local governing body, be given twelve months notice of
a Local  Limited  Partnership's  intention  to opt out of the  program  prior to
contract termination.

Each of the options  requires an application to HUD, and, to a greater or lesser
extent,  the  fulfillment  of certain  procedural  submission  requirements  and
financial   requirements,   which  must  be  weighed  in  connection   with  the
determination of which option to select.

The Section 8  requirements  are separate  from the  requirements  governing the
underlying  HUD-insured  mortgage  loans,  and any  other  HUD,  state  or local
requirements, all of which must be fulfilled,  irrespective of the option chosen
with regard to the continuation of Section 8 participation.

4.    RENTAL PROPERTY

      Rental property consists of the following:

                                             December 31, 2000
                                               (in thousands)

Land                                              $  2,285
Buildings and improvements                          26,291
Equipment and furniture                              2,148
                                                    30,724

Less accumulated depreciation                      (12,124)

Net rental property                               $ 18,600

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):

          2001                 $ 504
          2002                   541
          2003                   582
          2004                   626
          2005                   674
       Thereafter              6,490
                              $9,417

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:

<TABLE>
<CAPTION>

Local Partnership                           Due Date    Note Amount  Accrued Interest
                                                                (in thousands)
<S>                                         <C>           <C>             <C>
Griffith Limited Partnership                10/31/97*     $  1,199        $ 1,735
Southward Limited Partnership               10/4/98*         1,609          2,353
Northgate Village Limited Partnership       7/26/99*           969          1,592
San Jose Limited Partnership                8/29/99*         1,699          2,778
Gates Mills I Limited Partnership           10/1/99*         2,667          4,333
Hurbell IV Limited Partnership              11/9/99*           648            948

Total Delinquent                                          $  8,791       $ 13,739
</TABLE>

* Notes are in default.

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



<PAGE>


7.    DUE TO PARTNERS

The Local Limited  Partnerships  accrued annual partnership  administration fees
payable to the General Partner,  of $75,000 during 2000 and 1999,  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 2000 and 1999, the Local Limited Partnerships paid approximately  $35,000
and $96,000,  respectively.  The accumulated fees owed to NHP are  approximately
$469,000 at December 31, 2000.

During 2000, the General Partner  advanced  approximately  $63,000 to four 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,  two Local  Limited  Partnerships  made  payments of
principal of  approximately  $8,000.  No payments of principal  were made during
2000. At December 31, 2000, the balance owed to the General Partner by the Local
Limited Partnerships was approximately  $536,000,  including accrued interest of
approximately $43,000.  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 9.50% at December 31, 2000.

During  2000,  the  Partnership  advanced  approximately  $89,000 to  Southridge
Apartments  Limited  Partnership for working capital purposes.  No advances were
made  by  the  Partnership  to  the  Local  Limited  Partnerships  during  1999.
Repayments  of advances of  approximately  $20,000 and $8,000 were received from
one  Local  Limited  Partnership  during  2000 and 1999,  respectively.  Accrued
interest of approximately $9,000 was received from one Local Limited Partnership
during 1999. At December 31, 2000 the Partnership's  working capital advances to
Local  Limited  Partnerships  amounted to  approximately  $431,000.  Interest is
charged at the Chase  Manhattan Bank rate of prime plus 2%. Chase Manhattan Bank
prime was 9.50% at December 31, 2000.

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

Statement of Financial Accounting Standards ("SFAS") No. 121 "Accounting for the
Impairment of  Long-Lived  Assets and for  Long-Lived  Assets to be Disposed Of"
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, 2000. 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") is the
project management agent for the projects operated by eight of the Local Limited
Partnerships.  NHPMC and other affiliates of NCHP earned approximately  $703,000
and $645,000 from the Local Limited  Partnerships  for management fees and other
services  provided  to the  Local  Limited  Partnerships  during  2000 and 1999,
respectively. At December 31, 2000, the amount due NHPMC and unpaid by the Local
Limited Partnerships amounted to approximately $22,000.

Personnel working at the project sites, which are managed by NHPMC are employees
of NHPMC.  The  projects  reimburse  NHPMC for the actual  salaries  and related
benefits  of such  employees.  Total  reimbursements  earned  for  salaries  and
benefits  for the years ended  December  31, 2000 and 1999,  were  approximately
$1,005,000 and $1,029,000, 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 2000 and 1999, the affiliate received  approximately $69,000 in each year
for these services.  Additionally,  in 2000,  approximately  $16,000 was paid to
this affiliate for  accounting  services and  approximately  $12,000 was paid to
another affiliate 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,  2000,  and  therefore,  the  notes are in  default  (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.


<PAGE>



12.   FAIR VALUE OF FINANCIAL INSTRUMENTS

SFAS 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.

13.   Disposals of Rental Properties

Fairmeadows  Limited  Partnership  had a note  payable  due on December 1, 2011.
During 2000,  Fairmeadows Limited Partnership entered into a sale agreement with
an unaffiliated third party for the sale of Fairmeadows Apartments.  The closing
occurred on December 27, 2000,  with a sale price of  approximately  $5,050,000.
Net  proceeds  of  approximately  $4,780,000  were  used to repay  the  mortgage
encumbering  the property  with the holders  ("AIMCO") of the  Fairmeadows  note
payable receiving the remaining net proceeds in full satisfaction of amounts due
on their notes. Any unpaid balances were forgiven. The Local Limited Partnership
recorded a gain on sale of approximately  $684,000 and an extraordinary  gain on
debt forgiveness of approximately $2,186,000.

Southridge  Apartments Limited Partnership had a note payable due on December 1,
2011. During 2000, Southridge Apartments Limited Partnership entered into a sale
agreement  with  an  unaffiliated   third  party  for  the  sale  of  Southridge
Apartments.  The closing  occurred on December  27,  2000,  with a sale price of
approximately $6,000,000.  Net proceeds of approximately $5,673,000 were used to
repay the mortgage  encumbering  the property with the holders  ("AIMCO") of the
Southridge   note  payable   receiving   the  remaining  net  proceeds  in  full
satisfaction  of amounts due on their notes.  Any unpaid balances were forgiven.
The  Local  Limited  Partnership  recognized  a gain on  sale  of  approximately
$916,000  and  an  extraordinary  gain  on  debt  forgiveness  of  approximately
$1,904,000.