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, 2001

[ ]   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
      OF1934 [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:

                      11,489 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.   $26,000

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, 2001. 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 six
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 and one limited  partnership
which sold its property  during the year ended  December 31, 2001.  In addition,
the Partnership's ownership interest in one additional Local Limited Partnership
was foreclosed upon during the year ended December 31, 2001.

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:


<PAGE>



             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)     2001     2000

<S>                            <C>           <C>            <C>          <C>       <C>
Fairmeadows                    (C)           (C)            (C)          (C)       (C)
  Duncanville, Texas
   (Fairmeadows Limited
     Partnership)
Forest Green                   100           (A)            85           92%       93%
  Gainesville, Florida
   (Forest Green Limited
     Partnership)
Howard F. Robbins Tower        191           (A)            167          100%     100%
 Mayfield Heights, Ohio
 (Gates Mills I Limited
  Partnership)
Lakeview Apartments            (D)           (D)            (D)          (D)       (D)
  Fresno, California
  (Griffith Limited
    Partnership)
Northgate Village              150           (A)            49           97%       98%
  Columbus, Georgia
   (Northgate Village
     Limited Partnership)
Parker Square                  (E)           (E)            (E)          (E)       (E)
 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           91%       90%
 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.

   (D)      Property was lost through foreclosure of Partnership interest during
            the year ended December 31, 2001.

   (E) Property was sold during the year ended December 31, 2001.


<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, 2001.

<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>
Forest Green L.P.             99%            $  420       $   767            $ --
Gates Mills I L.P.            98%             1,561         1,854            7,266
Northgate Village L.P.        99%               621         1,137            2,658
San Jose L.P.                 99%             1,156         1,583            4,647
Hurbell IV L.P.               99%               372           885            1,650
Village Green L.P.            99%               430           590               --

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

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 six 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 legislation affects 693 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,
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
                         Units        Subsidized Units          Total Units

2002                     595                86%                    69%
2003                      98                14%                    11%
Total                    693               100%                    80%

Of the units (693 in total)  receiving rent subsidies from Section 8, 595 of the
units have their  contracts  expiring  during the year ending December 31, 2002.
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.

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 claims by private  plaintiffs for
personal injury,  disease,  disability or other  infirmities.  Various laws also
impose  liability for the cost of removal or  remediation  of hazardous or toxic
substances  at the disposal or treatment  facility.  Anyone who arranges for the
disposal or treatment 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.

In December  2001,  AIMCO and certain of its affiliated  partnerships  which own
properties  voluntarily  entered into an agreement  with the U.S.  Environmental
Protection Agency ("EPA") and HUD pursuant to which they agreed to pay a fine of
approximately  $130,000,  and conduct  lead-based  paint  inspections  and other
testing, if necessary, on properties initially built prior to 1978, and re-issue
lead-based paint disclosures to residents of such properties which have not been
certified as lead-based paint free. In return,  neither AIMCO nor its properties
will be subject to any  additional  fines for  inadequate  disclosures  prior to
AIMCO's execution of the agreement. The cost of the settlement,  inspections and
remediation  incurred to date had been  reserved for at the time AIMCO  acquired
the NHP and  Insignia  portfolios.  Any  remaining  costs are not expected to be
material.

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.

Item 3.     Legal Proceedings

In July 1999, NHP received a grand jury subpoena  requesting  documents relating
to NHP's  management of HUD-assisted or HUD-insured  multifamily  properties and
NHP's  operation of a group  purchasing  program created by NHP, known as Buyers
Access.  The  subpoena  related  to the same  subject  matter as  subpoenas  NHP
received in October and December  1997 from the HUD Inspector  General.  NHP has
been informed that the grand jury investigation has been terminated.

Separately,  AIMCO,  on behalf of NHP,  entered into a Settlement  Agreement and
Release  with  HUD in  July  2001,  which  finalized,  without  any  finding  of
wrongdoing, all civil matters that were the subject of the HUD Inspector General
Investigation.  A payment of $4.2  million was made by AIMCO on behalf of NHP in
connection  with the  settlement.  This  payment had been fully  reserved for by
AIMCO and,  therefore,  had no effect on the  financial  condition or results of
operations of AIMCO or NHP.

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 to a vote of the Unit holders through the solicitation
of proxies or otherwise during the quarter ended December 31, 2001.


<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, 2001, there were 960 registered holders of 11,489
            limited partnership  interests (in addition to 1133 Fifteenth Street
            Associates - See "Item 7. Financial  Statements - Note 1"). In 2001,
            the number of Limited Partnership Units decreased by 20 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, 2001.

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,  Northgate Village, San Jose, Gates Mills 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.  During the year ended  December 31, 2000,  the note
related to Northgate  Village was acquired by AIMCO from the former  owner.  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 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 the year ended  December  31,  2001,  the  noteholder  foreclosed  on the
Partnership's  interest in  Griffith  Limited  Partnership.  No gain or loss was
recorded as a result of this transfer of partnership interest.  With the loss of
the Partnership's  interest to the note holder, the Partnership will not receive
any future  benefits  from this Local  Limited  Partnership  and taxable  income
generated  prior  to the  foreclosure  will be  allocated  to the  Partnership's
investors  without any  distributable  cash for the current  year.  The specific
impact  of the tax  consequences  is  dependent  upon  each  specific  partner's
individual tax situation.

During 2001,  Southward Limited  Partnership entered into a sales agreement with
an  unaffiliated  third  party for the sale of  Parker  Square  Apartments.  The
closing occurred on June 29, 2001, with a sale price of $3,300,000. Net proceeds
after payment of closing costs of  approximately  $2,686,000  were used to repay
the mortgage  encumbering  the  property,  with the holders of the Parker Square
note  payable  receiving  the  remaining  net proceeds in full  satisfaction  of
amounts due on their note,  which was secured by the  Partnership's  interest in
the Local Limited  Partnership.  Any unpaid  balances were  forgiven.  The Local
Limited Partnership  recognized a gain on sale of approximately  $268,000 and an
extraordinary gain on debt forgiveness of approximately $2,656,000 in 2001.

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. The
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  note,  which was  secured by the  Partnership's  interest in the Local
Limited  Partnership.  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 in 2000.

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. The 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  the  amount  due  on  the  note,  which  was  secured  by  the
Partnership's  interest  in the Local  Limited  Partnership.  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 in 2000. The
Local Limited  Partnership  recognized an additional gain on debt forgiveness of
approximately  $180,000  during the year ended  December  31,  2001,  due to the
forgiveness  of the  remaining  amounts  owed on loans  payable  to the  general
partner of the Local Limited  Partnership  which were not able to be repaid upon
dissolution of the Local Limited Partnership in 2001.

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  2001.
Repayments  of advances of  approximately  $20,000 were  received from one Local
Limited  Partnership during 2000. No repayments of advances were received during
2001.  Accrued  interest of  approximately  $15,000 was received  from one Local
Limited Partnership during 2001. At December 31, 2001, the Partnership's working
capital  advances  to  Local  Limited  Partnerships  amounted  to  approximately
$84,000.  Interest is charged at the Chase Manhattan Bank rate of prime plus 2%.
Chase Manhattan Bank prime was 4.75% at December 31, 2001.

During 2001 and 2000, the General  Partner  advanced  approximately  $39,000 and
$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). During 2001, three Local Limited Partnerships made principal payments
to the General Partner of approximately  $351,000 and approximately $180,000 was
forgiven as noted  above.  No payments of principal  were made during  2000.  At
December 31, 2001, the balance owed to the General  Partner by the Local Limited
Partnerships  was   approximately   $133,000,   including  accrued  interest  of
approximately $21,000.  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 4.75% at December 31, 2001.

The Local Limited  Partnerships  accrued annual partnership  administration fees
payable to the General Partner of approximately  $64,000 and $75,000 during 2001
and 2000,  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  2001  and  2000,  the  Local  Limited
Partnerships  paid  approximately  $162,000  and  $35,000,   respectively.   The
accumulated fees owed to NHP are approximately $305,000 at December 31, 2001.

Net  cash  used  in  operations  for  the  year  ended  December  31,  2001  was
approximately  $53,000  compared to net cash used in operations of approximately
$49,000  in 2000.  The  increase  in cash used in  operations  was a result of a
decrease  in  distributions  in  excess  of  the  investment  in  Local  Limited
Partnerships partially offset by an increase in interest received on advances to
Local Limited Partnerships and a decrease 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  four  of  the  Local  Limited
Partnerships have 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
were received from two Local Limited Partnerships during the year ended December
31, 2000. No such distributions were received during the year ended December 31,
2001.  The receipt of these  distributions  in future  years is dependent on the
operations  of the  underlying  properties  of the Local  Limited  Partnerships.
During the year ended December 31, 2001, the Partnership received a distribution
of approximately  $425,000 from one Local Limited Partnership in which it had an
equity investment.

The  Partnership  had cash and cash  equivalents  of  approximately  $426,000 at
December  31,  2001 as compared to cash and cash  equivalents  of  approximately
$9,000 at December 31, 2000. The ability of the Partnership to meet its on-going
cash requirements,  in excess of cash on hand at December 31, 2001, is dependent
on  distributions  from  recurring  operations  received  from the Local Limited
Partnerships  and  proceeds  from the sales or  refinancings  of the  underlying
properties.   Total  distributions  received  from  Local  Limited  Partnerships
increased  to  approximately   $425,000  in  2001  from  $34,000  in  2000.  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.


<PAGE>



During 2001 and 2000, the General  Partner  advanced  approximately  $45,000 and
$104,000 to the Partnership to pay operating expenses. No repayments of advances
were made during the years ended December 31, 2001 and 2000. Interest is charged
at the Chase  Manhattan Bank prime  interest rate plus 2%. Chase  Manhattan Bank
prime was 4.75% at December 31, 2001.

As of December 31, 2001, the Partnership owed the General Partner  approximately
$1,175,000 for administrative and reporting services performed. During the years
ended  December 31, 2001 and 2000, 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, 2001,  the  Partnership  holds an interest in six Local  Limited
Partnerships, which operate six rental housing properties. 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 (losses) profits of
approximately  ($151,000)  and $103,000 in these two Local Limited  Partnerships
for the years ended December 31, 2001 and 2000, respectively. Due to the sale of
the property held by Fairmeadows  Limited Partnership during 2000 a gain on sale
of  approximately  $684,000 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
recorded its share of losses of  approximately  $23,000 from this Partnership in
2001.  The  additional  extraordinary  gain on debt  forgiveness  recognized  by
Southridge  Apartments  Limited  Partnership during 2001 more than offset losses
not recognized in previous years. The Partnership's  share of profits recognized
in 2001 from this Local Limited  Partnership was approximately  $43,000.  Due to
the  gain on sale  and  extraordinary  gain on debt  forgiveness  recognized  by
Southward  Limited  Partnership  as a result of the sale of the property  during
June  2001,  which  more than  offset  losses  not taken by the  Partnership  in
previous years, the Partnership recognized its share of profits of approximately
$142,000 from this Local  Limited  Partnership  for the year ended  December 31,
2001.

The Partnership realized a net loss of approximately $418,000 for the year ended
December 31, 2001, compared to net income of approximately $498,000 for the year
ended  December  31,  2000.  Net income  (loss) per unit of limited  partnership
interest decreased from $42.40 to $(35.62) for the units outstanding at December
31, 2000 and 2001, respectively. The decrease in net income was primarily due to
a  decrease  in the  Partnership's  share  of  profits  from the  Local  Limited
Partnerships, the loss on investment in Local Limited Partnerships recognized in
2001, and, to a lesser extent,  the decrease in the receipt of  distributions in
excess of  investment  in Local  Limited  Partnerships,  partially  offset by an
increase in interest  received on advances to Local  Limited  Partnerships.  The
loss on investment in Local Limited  Partnerships of  approximately  $271,000 is
comprised  of  the  write-off  of  the  remaining   investment  balance  of  the
Partnership in Fairmeadows,  Southridge and Southward Limited  Partnerships as a
result of these entities liquidating during 2001.

The Partnership did not recognize  approximately $623,000 of its allocated share
of losses from five Local Limited  Partnerships and approximately  $2,773,000 of
its allocated share of profits from two Local Limited  Partnerships for the year
ended  December  31, 2001,  as the  Partnership's  net  carrying  basis in these
partnerships  was  reduced  to  zero  in  a  prior  year  (see  Note  2  to  the
Partnership's financial statements).


<PAGE>



Item 7.     Financial Statements

The financial  statements of the Partnership are included on pages 15 through 37
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, 2001, and
the related statements of operations, partners' (deficit) equity, and cash flows
for each of the two years in the period ended December 31, 2001. 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, 2001 and 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, 2001,  and the results of its  operations and its cash flows for each of the
two years in the period ended  December 31, 2001 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
February 22, 2002


<PAGE>




                     NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                              A LIMITED PARTNERSHIP

                         STATEMENT OF FINANCIAL POSITION

                                December 31, 2001

                                   (in thousands)






                               ASSETS
  Cash and cash equivalents                                          $     426
  Investments in and advances to Local Limited Partnerships
  (Note 2)                                                               1,860
                                                                     $   2,286
             LIABILITIES AND PARTNERS' (DEFICIT) EQUITY

Liabilities:
  Administrative and reporting fee payable to
     General Partner (Note 3)                                        $   1,175
  Due to General Partner                                                   158
  Accrued interest on General Partner loan                                  22
  Accrued expenses                                                          40
                                                                         1,395
Partners' (deficit) equity:
  General Partner -- The National Housing Partnership (NHP)                (86)
  Original Limited Partner -- 1133 Fifteenth Street

     Associates                                                            (91)
  Other Limited Partners -- 11,489 investment units                      1,068
                                                                           891
                                                                     $   2,286

                        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,
                                                                    2001           2000

REVENUES:
  Share of profits from Local Limited Partnerships
<S>       <C>                                                  <C>             <C>
    (Note 2)                                                   $    11         $   636
  Interest received on advances to Local Limited
    Partnerships (Note 2)                                           15              --
  Distributions in excess of investment in Local Limited
    Partnership (Note 2)                                            --              34
                                                                    26             670
COST AND EXPENSES:
  Loss on investment in Local Limited Partnership (Note 2)         271              --
  Administrative and reporting fees to General
    Partner (Note 3)                                                86              86
  Interest expense on loans from General Partner (Note 3)           14               6
  Other operating expenses                                          73              80
                                                                   444             172

NET (LOSS) INCOME                                              $  (418)        $   498

ALLOCATION OF NET (LOSS) INCOME:
  General Partner - NHP                                        $    (4)        $     5
  Original Limited Partner - 1133 Fifteenth Street
    Associates                                                      (4)              5
  Other Limited Partners                                          (410)            488
                                                                  (418)            498

NET (LOSS) INCOME PER OTHER LIMITED PARTNERSHIP INTEREST       $(35.62)        $ 42.40

                        See Notes to Financial Statements
</TABLE>



<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>            <C>
   January 1, 2000                 $   (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

Net loss for the year ended
   December 31, 2001                    (4)            (4)         (410)          (418)

(Deficit) equity at
   December 31, 2001               $   (86)        $  (91)      $ 1,068        $   891

Percentage interest at
   December 31, 2001 and 2000           1%             1%           98%           100%
                                        (A)            (B)           (C)

(A)   General Partner

(B)   Original Limited Partner

(C)   Consists  of 11,489  investment  units at  December  31,  2001 and  11,509
      investment  units at  December  31,  2000.  During  2001,  20  units  were
      abandoned (Note 7).


                        See Notes to Financial Statements
</TABLE>


<PAGE>



                     NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                              A LIMITED PARTNERSHIP

                            STATEMENTS OF CASH FLOWS

                                   (in thousands)

<TABLE>
<CAPTION>

                                                                  Years Ended December 31,
                                                                     2001           2000
CASH FLOWS FROM OPERATING ACTIVITIES:
  Interest received on advances to Local Limited
<S>                                                                <C>             <C>
   Partnerships                                                    $  15           $  --
  Distributions in excess of investment in Local
    Limited Partnerships                                              --              34
  Operating expenses paid                                            (68)            (83)

  Net cash used in operating activities                              (53)            (49)

CASH FLOWS FROM INVESTING ACTIVITIES:
  Distributions from Local Limited Partnerships                      425              --
  Repayment of advances to Local Limited Partnerships                 --              20
  Advances to Local Limited Partnerships                              --             (89)

  Net cash provided by (used in) investing activities                425             (69)

CASH FLOWS PROVIDED BY FINANCING ACTIVITIES:
  Advances from General Partner                                       45             104

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                 417             (14)

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                           9              23

CASH AND CASH EQUIVALENTS, END OF YEAR                             $ 426           $   9

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

Net (loss) income                                                  $(418)          $ 498
Adjustments to reconcile net (loss) income to net cash used
  in operating activities:
   Share of profits from Local Limited Partnerships                  (11)           (636)
   Loss on investment in Local Limited Partnerships                  271              --
   Increase in administrative and reporting
     fees payable to General Partner                                  86              86
   Increase in accrued interest on partner loans                      14               6
   Increase (decrease) in accrued expenses                             5              (3)

         Total adjustments                                           365            (547)
      Net cash used in operating activities                        $ (53)          $ (49)


                        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. The Partnership  continues to own a 99% interest in five
Local Limited  Partnerships and a 98% interest in one Local Limited  Partnership
at December 31, 2001.

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 accounting principles
generally  accepted in the United States  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.

Recent Accounting Pronouncements

In August 2001, the Financial  Accounting  Standards  Board issued SFAS No. 144,
"Accounting for the Impairment or Disposal of Long-Lived  Assets".  SFAS No. 144
provides  accounting  guidance for  financial  accounting  and reporting for the
impairment or disposal of long-lived  assets.  SFAS No. 144 supersedes  SFAS No.
121,  "Accounting  for the  Impairment of Long-Lived  Assets and for  Long-Lived
Assets to be Disposed Of". SFAS No. 144 is effective for fiscal years  beginning
after  December  15, 2001.  The General  Partner  does not  anticipate  that its
adoption  will have a material  effect on the  financial  position or results of
operations of the Partnership.

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 five other Local Limited
Partnerships:  Forest  Green  Limited  Partnership,  Northgate  Village  Limited
Partnership,  San Jose Limited  Partnership,  Hurbell IV Limited Partnership and
Village Green Limited Partnership.

During the year ended  December  31,  2001,  the  noteholder  foreclosed  on the
Partnership's  interest in  Griffith  Limited  Partnership.  No gain or loss was
recorded as a result of this transfer of partnership interest.  With the loss of
the Partnership's  interest to the note holder, the Partnership will not receive
any future  benefits  from this Local  Limited  Partnership  and taxable  income
generated  prior  to the  foreclosure  will be  allocated  to the  Partnership's
investors  without any  distributable  cash for the current  year.  The specific
impact  of the tax  consequences  is  dependent  upon  each  specific  partner's
individual tax situation.

During 2001,  Southward Limited  Partnership entered into a sales agreement with
an  unaffiliated  third  party for the sale of  Parker  Square  Apartments.  The
closing occurred on June 29, 2001, with a sale price of $3,300,000. Net proceeds
after payment of closing costs of  approximately  $2,686,000  were used to repay
the mortgage encumbering the property with the holders of the Parker Square note
payable receiving the remaining net proceeds in full satisfaction of amounts due
on their note. Any unpaid balances were forgiven.  The Local Limited Partnership
recognized a gain on sale of approximately $268,000 and an extraordinary gain on
debt forgiveness of approximately $2,656,000 in 2001.

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. The
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 the note,  which  was  secured  by the  Partnership's  interest  in the Local
Limited  Partnership.  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 in 2000.

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. The 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  the  amount  due  on  the  note,  which  was  secured  by  the
Partnership's  interest  in the Local  Limited  Partnership.  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 in 2000. The
Local Limited  Partnership  recognized an additional gain on debt forgiveness of
approximately  $180,000  during the year ended  December  31,  2001,  due to the
forgiveness  of the  remaining  amounts  owed on loans  payable  to the  general
partner of the Local Limited  Partnership  which were not able to be repaid upon
dissolution of the Local Limited Partnership in 2001.

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 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  (losses)  profits  from  these  two  Local  Limited
Partnerships  was  approximately  ($151,000)  and  $103,000  for the years ended
December 31, 2001 and 2000,  respectively.  Due to the sale of the property held
by Fairmeadows Limited Partnership a gain on sale of approximately  $684,000 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  recorded its share of
losses of  approximately  $23,000 from this  Partnership in 2001. The additional
extraordinary  gain on debt  forgiveness  recognized  by  Southridge  Apartments
Limited  Partnership  during  2001 more than  offset  losses not  recognized  in
previous years. The Partnership's  share of profits recognized in 2001 from this
Local Limited Partnership was approximately $43,000. Due to the gain on sale and
extraordinary   gain  on  debt  forgiveness   recognized  by  Southward  Limited
Partnership as a result of the sale of the property during June 2001, which more
than  offset  losses  not  taken  by the  Partnership  in  previous  years,  the
Partnership  recognized its share of profits of approximately $142,000 from this
Local Limited  Partnership for the year ended December 31, 2001. The Partnership
did not  recognize  approximately  $623,000 and $546,000 of losses from five and
six  Local  Limited  Partnerships  during  2001 and  2000,  respectively.  As of
December 31, 2001, the Partnership has not recognized  approximately  $8,630,000
of its  allocated  share  of  cumulative  losses  from the  four  Local  Limited
Partnerships  in which its investment is zero. In addition,  the Partnership did
not recognize  approximately  $2,773,000 of its allocated  share of profits from
two Local  Limited  Partnerships  for the year ended  December 31, 2001 as these
amounts  were  offset  by  previously   unrecognized   losses.  The  Partnership
recognized a loss on investment in Local Limited  Partnerships of  approximately
$271,000 which is comprised of the write-off of the remaining investment balance
of the Partnership in Fairmeadows, Southridge and Southward Limited Partnerships
as a result of these entities liquidating during 2001.

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,
2001 for four 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
6.75% at December 31, 2001. 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  2001.
Repayments  of advances of  approximately  $20,000 were  received from one Local
Limited  Partnership during 2000. No repayments of advances were received during
2001.  Accrued  interest of  approximately  $15,000 was received  from one Local
Limited Partnership during 2001. At December 31, 2001, the Partnership's working
capital  advances  to  Local  Limited  Partnerships  amounted  to  approximately
$84,000.  Interest is charged at the Chase Manhattan Bank rate of prime plus 2%.
The Chase Manhattan Bank prime was 4.75% at December 31, 2001.

Summaries of the combined financial position of the aforementioned Local Limited
Partnerships as of December 31, 2001, and the combined results of operations for
each of the two years in the period ended December 31, 2001, are as follows:

                      CONDENSED COMBINED FINANCIAL POSITION
                        OF THE LOCAL LIMITED PARTNERSHIPS
                                    (in thousands)
                                                               December 31, 2001
Assets:
  Land                                                               $  1,792
  Buildings and improvements, net of accumulated
   depreciation of approximately $9,975                                12,549
  Other assets                                                          2,577
                                                                     $ 16,918
Liabilities and Partners' Deficit:
  Liabilities:
  Mortgage notes payable                                             $ 6,816
  Notes payable                                                         5,983
  Accrued interest on notes payable                                    10,238
  Other liabilities                                                     1,233

                                                                       24,270
Partners' Deficit:
  National Housing Partnership Realty Fund I                          (7,141)
  Other partners                                                        (211)
                                                                    $ (7,352)
                                                                    $ 16,918


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

<TABLE>
<CAPTION>

                                                         Years Ended December 31,
                                                           2001             2000

<S>                                                      <C>              <C>
Rental income                                            $ 4,507          $ 7,690
Other income                                                 352              397
Gain on sale of rental property                              268            1,600

Total revenues                                             5,127            9,687

Expenses:
  Operating expenses                                       3,967            5,939
  Financial expenses                                          96               88
  Interest on notes payable                                  757            1,302
  Depreciation                                               835            1,302
  Impairment loss on rental property                         128               --

    Total expenses                                         5,783            8,631

(Loss) income before extraordinary item                     (656)           1,056

Extraordinary gain on forgiveness of debt                  2,836            4,090

Net income                                               $ 2,180          $ 5,146
</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
years  ended  December  31,  2001  and  2000 the  projects  received  a total of
approximately $2,312,000 and $3,300,000,  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 693 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,
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
                         Units        Subsidized Units          Total Units

2002                      595                86%                    69%
2003                       98                14%                    11%
Total                     693               100%                    80%

Of the units (693 in total)  receiving rent subsidies from Section 8, 595 of the
units have their  contracts  expiring  during the year ending December 31, 2002.
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.

Fixed assets are recorded on the basis of cost.  Depreciation  of the  buildings
and improvements and equipment is computed generally by the straight-line method
over the estimated lives of the related assets.

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.  During the year ended December 31, 2000, the note payable related
to Northgate  Village Limited  Partnership was acquired by AIMCO from the former
owner.  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>            <C>
Northgate Village Limited Partnership       7/26/99*       $ 969          $ 1,689
San Jose Limited Partnership                8/29/99*         1,699          2,948
Gates Mills I Limited Partnership           10/1/99*         2,667          4,599
Hurbell IV Limited Partnership              11/9/99*           648          1,002
Total Delinquent                                          $ 5,983        $ 10,238

* Notes are in default.
</TABLE>

During the year ended  December  31,  2001,  the  noteholder  foreclosed  on the
Partnership's  interest in  Griffith  Limited  Partnership.  No gain or loss was
recorded as a result of this transfer of partnership interest.  With the loss of
the Partnership's  interest to the note holder, the Partnership will not receive
any future  benefits  from this Local  Limited  Partnership  and taxable  income
generated  prior  to the  foreclosure  will be  allocated  to the  Partnership's
investors  without any  distributable  cash for the current  year.  The specific
impact  of the tax  consequences  is  dependent  upon  each  specific  partner's
individual tax situation.

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  2001,  Forest  Green  Limited  Partnership  and  Village  Green  Limited
Partnership recognized an impairment loss on their respective rental property in
the amount of approximately $59,000 and $69,000, respectively.  These impairment
losses were the result of the net  carrying  value of the assets  exceeding  the
estimated net realizable 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, 2001. Should a Local
Limited  Partnership  be forced to  dispose of any of its  properties,  it could
incur a loss.


<PAGE>



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 2001 and 2000. No payments for
such fees were made to the General  Partner in 2001 and 2000. As of December 31,
2001, the Partnership owed  approximately  $1,175,000 to the General Partner for
accrued administrative and reporting fees.

During 2001 and 2000, the General  Partner  advanced  approximately  $45,000 and
$104,000 to the Partnership to pay operating expenses. No repayments of advances
were made during the years ended December 31, 2001 and 2000. Interest is charged
at the Chase  Manhattan Bank prime  interest rate plus 2%. Chase  Manhattan Bank
prime was 4.75% at  December  31,  2001.  Interest  accrued  for the years ended
December 31, 2001 and 2000 was approximately  $14,000 and $6,000,  respectively,
which is included in other operating expenses on the Partnership's Statements of
Operations.

An affiliate of the General  Partner,  NHP Management  Company  ("NHPMC") is the
project  management agent for the projects operated by four of the Local Limited
Partnerships.  NHPMC and other affiliates of NCHP earned approximately  $398,000
and $703,000 from the Local Limited Partnerships for management fees provided to
the Local Limited Partnerships during 2001 and 2000,  respectively.  At December
31,  2001,  the amount due NHPMC and  unpaid by the Local  Limited  Partnerships
amounted  to  approximately   $7,000.   During  2001,  the  four  Local  Limited
Partnerships  operated by an affiliate of the General Partner were charged a fee
related  to  construction   management   services  provided  by  AIMCO  and  its
affiliates.  The fee was calculated based on a percentage of current and certain
prior year  additions to fixed  assets.  This fee is payable from surplus  cash.
This fee of  approximately  $72,000 has been capitalized as part of fixed assets
for the respective  Local Limited  Partnership and is being  depreciated over 15
years.

In  addition,  during  2001,  four Local  Limited  Partnerships  operated  by an
affiliate of the General Partner began insuring their  respective  properties up
to  certain  limits  through  coverage  provided  by AIMCO  which  is  generally
self-insured  for a  portion  of  losses  and  liabilities  related  to  workers
compensation,  property casualty and vehicle  liability.  The four Local Limited
Partnerships  insure their respective  properties above the AIMCO limits through
insurance policies obtained by AIMCO from insurers unaffiliated with the General
Partner.  During the year  ended  December  31,  2001,  the four  Local  Limited
Partnerships paid AIMCO and its affiliates  approximately  $54,000 for insurance
coverage and fees associated with policy claims administration.

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,  2001 and 2000 were  approximately
$594,000 and $1,005,000, 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 2001 and 2000, the affiliate received  approximately $65,000 and $69,000,
respectively, for these services.  Additionally, in 2001 and 2000, approximately
$15,000 and $16,000,  respectively,  was paid to this  affiliate for  accounting
services  and  approximately  $10,000  and  $12,000,  respectively,  was paid to
another affiliate for painting services.

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,
                                                     2001            2000
                                                       (in thousands)

Net (loss) income per financial statements         $ (418)          $ 498

  Other                                                314              89
  Partnership's share of limited local
   Partnership                                       3,989           2,491
  Gain on foreclosure of Partnership
   interest                                          2,824              --
Income per tax return                              $ 6,709         $ 3,078


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

                                                   December 31, 2001
                                                     (in thousands)

      Net assets as reported                           $    891
      Add (deduct):
       Investment in Partnerships                       (16,444)
       Other                                                574
      Net deficit - federal tax basis                  $(14,979)


<PAGE>



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.


<PAGE>



7.    ABANDONMENT OF LIMITED PARTNERSHIP UNITS

In 2001, the number of Limited  Partnership  Units  decreased by 20 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 July 1999, NHP received a grand jury subpoena  requesting  documents relating
to NHP's  management of HUD-assisted or HUD-insured  multifamily  properties and
NHP's  operation of a group  purchasing  program created by NHP, known as Buyers
Access.  The  subpoena  related  to the same  subject  matter as  subpoenas  NHP
received in October and December  1997 from the HUD Inspector  General.  NHP has
been informed that the grand jury investigation has been terminated.

Separately,  AIMCO,  on behalf of NHP,  entered into a Settlement  Agreement and
Release  with  HUD in  July  2001,  which  finalized,  without  any  finding  of
wrongdoing, all civil matters that were the subject of the HUD Inspector General
Investigation.  A payment of $4.2  million was made by AIMCO on behalf of NHP in
connection  with the  settlement.  This  payment had been fully  reserved for by
AIMCO and,  therefore,  had no effect on the  financial  condition or results of
operations of AIMCO or NHP.


<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        $   537       $    (59)
 Limited Partnership
Gates Mills I                (1)        669       6,058            222             --
 Limited Partnership
Northgate Village            (1)        220       2,953            812            (17)
 Limited Partnership
San Jose                     (1)        440       4,728          1,811             --
 Limited Partnership
Hurbell IV                   (1)        100       2,159            168         (1,460)
 Limited Partnership
Village Green
 Limited Partnership         (1)        137       2,096            579            (69)
  Totals                             $1,736     $20,056        $ 4,129      $  (1,605)
</TABLE>

<TABLE>
<CAPTION>


                         Gross Amount At Which
                                Carried
                         At December 31, 2001
                            (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 ConstructiAcquired   (years)
                                         (3)         (3)

<S>                   <C>   <C>      <C>          <C>          <C>      <C>        <C>
Forest Green          $176  $ 2,534  $  2,710     $   1,180    1972     8/84       5-50

 Limited Partnership
Gates Mills I         669     6,280     6,949         2,468    1972    10/84       5-30

 Limited Partnership
Northgate Village
 Limited Partnership  213     3,755     3,968         1,696    1973     7/84       5-50

San Jose Limited
 Partnership          489     6,490     6,979         3,120    1970     9/84       5-50

Hurbell IV
 Limited Partnership  101      866       967           299    1974    11/84       5-30

Village Green
 Limited Partnership  144    2,599     2,743         1,212    1971     8/84       5-50

  Totals           $1,792  $22,524   $24,316       $ 9,975
</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                    $ 767          $ --      $   767

Gates Mills I Limited Partnership                    1,854          7,266      9,120

Northgate Village Limited Partnership                1,137          2,658      3,795

San Jose Limited Partnership                         1,583          4,647      6,230

Hurbell IV Limited Partnership                         885          1,650      2,535

Village Green Limited Partnership                      590             --        590

  Total - December 31, 2001                        $ 6,816        $16,221    $23,037
</TABLE>

(2)   The   aggregate   cost  of  land  for  Federal   income  tax  purposes  is
      approximately   $1,412,000  and  the  aggregate  costs  of  buildings  and
      improvements for Federal income tax purposes is approximately $24,180,000.
      The total of the above-mentioned items is approximately $25,592,000.

(3)    Reconciliation of real estate

                                                 Years Ended December 31,
                                                   2001           2000
                                                      (in thousands)
Balance at beginning of period                   $ 30,724       $ 43,519
Improvements during the period                        507          1,432
Disposals of rental properties                     (6,787)       (14,227)
Impairment losses on rental property                 (128)            --
Balance at end of period                         $ 24,316       $ 30,724

Reconciliation of accumulated depreciation

                                                 Years Ended December 31,
                                                   2001           2000
                                                      (in thousands)
Balance at beginning of period                   $ 12,124       $ 16,071
Depreciation expense for the period                   835          1,302
Disposals of rental properties                     (2,984)        (5,249)
Balance at end of period                          $ 9,975       $ 12,124



<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 (age 40) was  appointed  Executive  Vice  President - Affordable
Transactions of NCHP and AIMCO in October 1999. His principal  business function
is affordable  housing  transactions.  Prior to joining AIMCO,  Mr. Graber was a
Director at Credit Suisse First Boston 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.

Patrick J. Foye (age 44) has been Executive Vice President of NCHP since October
1, 1998 and was appointed  President in September  1999. Mr. Foye is responsible
for   continuous   improvement,    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 Merger and Acquisitions Partner in the law firm of
Skadden, Arps, Slate, Meagher & Flom LLP from 1989 to 1998.

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 40).  See "Directors of NCHP."

Patrick J. Foye  (age 44). See "Directors of NCHP."

David  Robertson  (age 36) was appointed  Executive  Vice President - Affordable
Properties of NCHP and AIMCO in February 2002. He is responsible  for affordable
property  operations,  refinancing  and  other  value  creation  within  AIMCO's
affordable portfolio.  Prior to joining AIMCO, Mr. Robertson was a member of the
investment-banking group at Smith Barney from 1991 to 1996, during which time he
was responsible for real estate investment  banking  transactions in the western
United  States,  and was part of the  Smith  Barney  team that  managed  AIMCO's
initial public offering in 1994.

Joel F.  Bonder  (age 53) was  appointed  Executive  Vice  President  Legal  and
Regulatory  Affairs  in August  2001 and  previously  served as  Executive  Vice
President,  General Counsel and Secretary of NCHP and AIMCO  effective  December
1997 to August 2001.  Prior to joining  AIMCO,  Mr. Bonder served as Senior Vice
President  and General  Counsel of NHP from April 1994 until it was  acquired by
AIMCO in December 1997.

Paul J.  McAuliffe  (age 45) has been Executive Vice President of NCHP and AIMCO
since February 1999 and was appointed Chief  Financial  Officer in October 1999.
Prior to joining AIMCO,  Mr.  McAuliffe was Senior Managing  Director of Secured
Capital Corp from May 1996 until February 1999.

Martha L. Long (age 42) 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  directors  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 directors 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 directors 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 generally accepted in
the United  States and such other  matters as are required to be discussed  with
the  Audit  Committee  or its  equivalent  under  auditing  standards  generally
accepted in the United States.  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 directors 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 directors of the General  Partner has approved the inclusion of the
audited financial  statements in the Form 10-KSB for the year ended December 31,
2001 for filing with the Securities and Exchange Commission.

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  $35,000  and  non-audit
services (principally tax-related) of $11,000.

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 12. 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  as  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,
2001.

         Name of Beneficial Owner              Number of Units        % of Class

AIMCO Properties, LP                               1,317.6               11.47%
  (affiliate of the General Partner)

The business address of AIMCO Properties,  LP 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 2001 and 2000. No payments for
such fees were made to the General  Partner in 2001 and 2000. As of December 31,
2001, the Partnership owed  approximately  $1,175,000 to the General Partner for
accrued administrative and reporting fees.

During 2001 and 2000, the General  Partner  advanced  approximately  $45,000 and
$104,000 to the Partnership to pay operating expenses. No repayments of advances
were made during the years ended December 31, 2001 and 2000. Interest is charged
at the Chase  Manhattan Bank prime  interest rate plus 2%. Chase  Manhattan Bank
prime was 4.75% at  December  31,  2001.  Interest  accrued  for the years ended
December 31, 2001 and 2000 was approximately  $14,000 and $6,000,  respectively,
which is included in other operating expenses on the Partnership's Statements of
Operations.

An affiliate of the General  Partner,  NHP Management  Company  ("NHPMC") is the
project  management agent for the projects operated by four of the Local Limited
Partnerships.  NHPMC and other affiliates of NCHP earned approximately  $398,000
and $703,000 from the Local Limited Partnerships for management fees provided to
the Local Limited Partnerships during 2001 and 2000,  respectively.  At December
31,  2001,  the amount due NHPMC and  unpaid by the Local  Limited  Partnerships
amounted  to  approximately   $7,000.   During  2001,  the  four  Local  Limited
Partnerships  operated by an affiliate of the General Partner were charged a fee
related  to  construction   management   services  provided  by  AIMCO  and  its
affiliates.  The fee was calculated based on a percentage of current and certain
prior year  additions to fixed  assets.  This fee is payable from surplus  cash.
This fee of  approximately  $72,000 has been capitalized as part of fixed assets
for the respective  Local Limited  Partnership and is being  depreciated over 15
years.

In  addition,  during  2001,  four Local  Limited  Partnerships  operated  by an
affiliate of the General Partner began insuring their  respective  properties up
to  certain  limits  through  coverage  provided  by AIMCO  which  is  generally
self-insured  for a  portion  of  losses  and  liabilities  related  to  workers
compensation,  property casualty and vehicle  liability.  The four Local Limited
Partnerships  insure their respective  properties above the AIMCO limits through
insurance policies obtained by AIMCO from insurers unaffiliated with the General
Partner.  During the year  ended  December  31,  2001,  the four  Local  Limited
Partnerships paid AIMCO and its affiliates  approximately  $54,000 for insurance
coverage and fees associated with policy claims administration.

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,  2001 and 2000 were  approximately
$594,000 and $1,005,000, 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 2001 and 2000, the affiliate received  approximately $65,000 and $69,000,
respectively, for these services.  Additionally, in 2001 and 2000, approximately
$15,000 and $16,000,  respectively,  was paid to this  affiliate for  accounting
services  and  approximately  $10,000  and  $12,000,  respectively,  was paid to
another affiliate for painting services.



<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 2001:

            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




______________                            /s/ Patrick J. Foye
Date                                      Patrick J. Foye
                                          President

______________                            /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:




______________                            /s/ Patrick J. Foye
Date                                      Patrick J. Foye
                                          President

______________                            /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, 2001 AND 2000



<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, 2001,
and the related combined statements of operations,  partners' deficit,  and cash
flows for each of the two years in the period ended  December  31,  2001.  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
six Local  Limited  Partnerships)  for the year ended  December  31,  2001 which
reflect  total  assets of 37% of combined  total assets as of December 31, 2001,
and net losses  which  reflect  $323,000 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, 2000 which  reflect  $355,000 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, 2001, and the combined  results of their operations and their
cash flows for each of the two years in the period  ended  December  31, 2001 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
February 22, 2002


<PAGE>


                          Independent Auditor's Report

To the Partners
Hurbell IV Limited Partnership

We have audited the accompanying balance sheet of Hurbell IV Limited Partnership
(a limited partnership),  FHA Project No. 062-44054-LD, as of December 31, 2001,
and the related  statements of partners' equity  (deficit),  operations 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 auditing standards  generally accepted
in the United States of America 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 in
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 Hurbell IV Limited Partnership
as of December 31, 2001,  and the results of its  operations  and its cash flows
and its changes in  partners-equity  for the year then ended in conformity  with
accounting principles generally accepted in the United States of America.

The  accompanying  financial  statements  have been  prepared  assuming that the
Partnership  will  continue as a going  concern.  As  discussed in Note H 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 do not include any adjustments that
might result from the outcome of this uncertainty.

Our audit was  conducted  for the  purpose  of  forming  an opinion on the basic
financial  statements taken as a whole. The supporting  information  included in
the report  (shown on pages 16 to 19) 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 auditing  procedures  applied to the audit
of the basic financial  statements and, in our opinion,  is fairly stated in all
material  respects  in  relation to the basic  financial  statements  taken as a
whole.

In accordance with Government Auditing  Standards,  we have also issued a report
dated  February  22, 2002 on our  consideration  of the  Partnership's  internal
controls and a report dated  February 22, 2002 on its  compliance  with laws and
regulations.  These  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/ SR Allen, LLC


Atlanta, Georgia
February 22, 2002


<PAGE>


                          Independent Auditor's Report

To the Partners
Hurbell IV Limited Partnership

We have audited the accompanying balance sheet of Hurbell IV Limited Partnership
(a limited partnership),  FHA Project No. 062-44054-LD, as of December 31, 2000,
and the related  statements of partners' equity  (deficit),  operations 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  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 in  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 Hurbell IV Limited Partnership
as of December 31, 2000,  and the results of its  operations  and its cash flows
and its changes in  partners-equity  for the year then ended in conformity  with
generally accepted accounting principles.

The  accompanying  financial  statements  have been  prepared  assuming that the
Partnership  will  continue as a going  concern.  As  discussed in Note H 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 do not include any adjustments that
might result from the outcome of this uncertainty.

Our audit was  conducted  for the  purpose  of  forming  an opinion on the basic
financial  statements taken as a whole. The supporting  information  included in
the report  (shown on pages 16 to 19) 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 auditing  procedures  applied to the audit
of the basic financial  statements and, in our opinion,  is fairly stated in all
material  respects  in  relation to the basic  financial  statements  taken as a
whole.

In accordance with Government Auditing  Standards,  we have also issued a report
dated  February  16, 2001 on our  consideration  of the  Partnership's  internal
controls and a report dated  February 16, 2001 on its  compliance  with laws and
regulations.  These  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/ Smith & Radigan


Atlanta, Georgia
February 16, 2001



<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, 2001, 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 auditing standards  generally accepted
in the United States of America 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, 2001, and the results of its operations,  changes
in  partners'  equity  (deficit)  and cash  flows  for the year then  ended,  in
conformity with accounting principles generally accepted in the United States of
America.

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  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 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 16,
2002,  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 16, 2002


<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  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 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>






                                  EXHIBIT 99.1

                     NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                           LOCAL LIMITED PARTNERSHIPS

                    COMBINED STATEMENT OF FINANCIAL POSITION


                                December 31, 2001
                                   (in thousands)

                                     ASSETS
Cash and cash equivalents                                           $   322
Accounts receivable, net (Note 2)                                       110
Tenants' security deposits held in trust funds                           33
Prepaid taxes and insurance                                              62
Deposits                                                                134
Mortgage escrow deposits (Note 5)                                     1,916
Rental property, net (Notes 4, 5, and 9)                             14,341
                                                                   $ 16,918


                        LIABILITIES AND PARTNERS' DEFICIT
Accounts payable and accrued expenses:
  Trade payables                                                    $   269
  Accrued real estate taxes                                             114
  Due to management agent - NHPMC (Note 10)                               7
  Due to partners (Note 7)                                              599
  Accrued interest on partner loans (Note 7)                            113
                                                                      1,102

Tenants' security deposits payable                                      131
Notes payable (Note 6)                                                5,983
Accrued interest on notes payable (Note 6)                           10,238
Mortgage notes payable (Note 5)                                       6,816
Partners' deficit                                                    (7,352)
                                                                   $ 16,918


                     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,
                                                                  2001         2000
REVENUE:
<S>                   <C>                                       <C>          <C>
  Rental income (Note 3)                                        $ 4,507      $ 7,690
  Interest income                                                    90          152
  Other income                                                      262          245
  Gain on sale of rental property (Note 13)                         268        1,600
                                                                  5,127        9,687
EXPENSES:
  Administrative expenses (Note 10)                               1,346        1,848
  Operating and maintenance expenses                                937        1,444
  Utilities and maintenance expenses                                928        1,626
  Depreciation (Note 1)                                             835        1,302
  Taxes and insurance                                               692          946
  Financial expenses - primarily interest (Note 5)                   96           88
  Interest on notes payable (Notes 6 and 7)                         757        1,302
  Annual partnership administrative fees to General
    Partner (Note 7)                                                 64           75
  Impairment loss on rental property (Note 9)                       128           --
                                                                  5,783        8,631

  (Loss) income before extraordinary item                          (656)       1,056
  Extraordinary gain on forgiveness of debt (Note 13)             2,836        4,090

  NET INCOME                                                    $ 2,180      $ 5,146

                     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>          <C>
Deficit at January 1, 2000         $(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)

Net income (loss)                     2,161          22            (3)        2,180

Transfer of interest (Note 6)         2,688          32            --         2,720

Distributions                          (425)         (4)           --          (429)

Deficit at December 31, 2001        $ (7,141)    $ (154)      $   (57)     $ (7,352)

Percentage interest at
  December 31, 2001 and 2000        (A)            (B)         (C)

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

(B)   Holds a 1% general  partnership  interest in the six and ten Local Limited
      Partnerships, respectively.

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

                     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
                                   (in thousands)

<TABLE>
<CAPTION>

                                                                Years Ended December 31,
                                                                  2001            2000
CASH FLOWS FROM OPERATING ACTIVITIES:
  Receipts:
<S>                                                           <C>              <C>
   Rental receipts                                            $ 4,583          $ 7,601
   Interest receipts                                              129              138
   Other operating receipts                                       270              246
   Entity receipts:
     Miscellaneous receipts                                         2                3
   Total receipts                                               4,984            7,988
  Disbursements:
   Administrative                                                (680)            (433)
   Management fees                                               (398)            (742)
   Utilities paid                                                (954)          (1,640)
   Salaries and wages                                            (777)          (1,230)
   Operating and maintenance                                     (528)            (870)
   Real estate taxes                                             (387)            (537)
   Property insurance                                            (115)            (159)
   Miscellaneous taxes and insurance                             (191)            (277)
   Tenant security deposits                                        (1)             (70)
   Other operating disbursements                                  (30)             (58)
   Interest on mortgage                                            --              (29)
   Mortgage insurance premium                                     (35)             (76)
   Miscellaneous financial                                         (3)              (7)
   Entity disbursements:
     Interest on notes payable                                   (198)              --
     Miscellaneous disbursements                                 (197)             (17)
   Total disbursements                                         (4,494)          (6,145)
Net cash provided by operating activities                         490            1,843
CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds from disposals of rental properties                  2,686           10,717
  Net change in mortgage escrow deposits                        1,351             (300)
  Net purchase of fixed assets                                   (561)          (1,432)
  Other investing                                                 (10)              (2)
Net cash provided by investing activities                       3,466            8,983

                     See Notes to Combined Financial Statements
</TABLE>

<PAGE>



                     NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                           LOCAL LIMITED PARTNERSHIPS

                   COMBINED STATEMENTS OF CASH FLOWS - CONTINUED
                                   (in thousands)

<TABLE>
<CAPTION>

                                                                Years Ended December 31,
                                                                  2001            2000
CASH FLOWS FROM FINANCING ACTIVITIES:
<S>                                                            <C>              <C>
  Repayments of mortgage notes payable                         (1,293)          (3,413)
  Payment in satisfaction of notes payable and accrued
    interest                                                   (1,700)          (7,014)
  Mortgage principal payments                                    (454)            (701)
  Distributions to partners                                      (429)             (34)
  Proceeds from loans or notes payable                             39              152
  Principal payments on loan or notes payable                    (351)              --
  Other financing                                                  25               --
Net cash used in financing activities                          (4,163)         (11,010)
NET DECREASE IN CASH AND CASH EQUIVALENTS                        (207)            (184)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                      529              713
CASH AND CASH EQUIVALENTS, END OF YEAR                       $    322         $    529

                     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,
                                                                  2001            2000
reconciliation of net INCOME to net cash provided
  BY OPERATING ACTIVITIES:

<S>                                                            <C>              <C>
  Net income                                                   $ 2,180          $ 5,146
  Adjustments to reconcile net income to net cash
   provided by operating activities:
   Depreciation                                                    835            1,302
   Gain on sale of rental properties                              (268)          (1,600)
   Extraordinary gain on forgiveness of debt                    (2,836)          (4,090)
   Impairment loss on rental property                              128               --
   Changes in operating assets and liabilities:
     Tenants accounts receivable                                     1               30
     Accounts receivable - other                                   292             (153)
     Accrued receivables                                            12              (10)
     Prepaid expenses                                                9               (3)
     Cash restricted for tenant security deposits                   88               (5)
     Accounts payable trade                                       (325)             (17)
     Accrued liabilities                                           (53)               5
     Accrued interest - notes payable                              614            1,254
     Tenant security deposits held in trust                        (17)             (64)
     Prepaid revenue                                                (1)             (28)
     Transfer of operating cash to new owner                       (83)              --
     Entity liability accounts                                     (86)              76

  Total adjustments                                             (1,690)          (3,303)

NET CASH PROVIDED BY OPERATING ACTIVITIES                      $   490          $ 1,843

SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY:
  Net write-off of assets and liabilities to reflect
  foreclosure and treated as a transfer of partnership
  interest                                                     $ 2,720          $    --


                     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.  The  Partnership  continues  to own a 99%  interest  in five  Local
Limited  Partnerships  and a 98% interest in one Local  Limited  Partnership  at
December 31, 2001.

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 held a limited  partnership
interest during 2001 and 2000.

      Fairmeadows  Limited  Partnership  (rental property sold December 27, 2000
      and partnership liquidated in 2001) Forest Green Limited Partnership Gates
      Mills I Limited  Partnership  Griffith  Limited  Partnership  (partnership
      interest lost June 19, 2001 through
      foreclosure)
      Hurbell IV Limited Partnership
      Northgate Village Limited Partnership
      San Jose Limited Partnership
      Southridge  Apartments Limited  Partnership (rental property sold December
      27, 2000 and partnership liquidated in 2001) Southward Limited Partnership
      (rental  property sold June 29, 2001 and  partnership  liquidated in 2001)
      Village Green Limited Partnership

Significant Accounting Policies

The financial  statements of the Local Limited  Partnerships are prepared on the
accrual  basis of  accounting.  Fixed  assets are recorded on the basis of cost.
Depreciation  of the  buildings  and  improvements  and  equipment  is  computed
generally by the  straight-line  method over the estimated  lives of the related
assets.  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 accounting principles
generally  accepted in the United States  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.


<PAGE>




2.    ACCOUNTS RECEIVABLE

Accounts receivable consist of the following:

                                                December 31, 2001
                                                 (in thousands)
Net tenant accounts receivable                        $ 20
Housing assistance receivable (see Note 3)               57
Accounts receivable - interest                            5
Interest reduction payment receivable                     6
Accounts and notes receivable - operations               22

Net accounts receivable                               $ 110

3.    HOUSING ASSISTANCE AGREEMENTS

The  Federal  Housing  Administration  (FHA) has  contracted  with the six 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
vary by entity and are generally  renewable on an annual basis.  The  agreements
expire at various dates over the next two years. Each Local Limited  Partnership
had an agreement in effect during 2001. The Local Limited Partnerships  received
a total of  approximately  $2,312,000  and  $3,300,000  in the  form of  housing
assistance  payments  during 2001 and 2000,  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 legislation affects 693 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,
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
                         Units        Subsidized Units          Total Units

2002                      595                86%                    69%
2003                       98                14%                    11%
Total                     693               100%                    80%

Of the units (693 in total)  receiving rent subsidies from Section 8, 595 of the
units have their  contracts  expiring  during the year ending December 31, 2002.
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, 2001
                                               (in thousands)

Land                                              $ 1,792
Buildings and improvements                          20,849
Equipment and furniture                              1,675
                                                   24,316

Less accumulated depreciation                       (9,975)

Net rental property                               $ 14,341

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):

          2002                 $ 432
          2003                   465
          2004                   500
          2005                   538
          2006                   579
       Thereafter              4,302
                              $6,816

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.  During the
year ended  December 31, 2000,  the note  payable  related to Northgate  Village
Limited  Partnership  was acquired by AIMCO from the former  owner.  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>            <C>
Northgate Village Limited Partnership       7/26/99*       $ 969          $ 1,689
San Jose Limited Partnership                8/29/99*         1,699          2,948
Gates Mills I Limited Partnership           10/1/99*         2,667          4,599
Hurbell IV Limited Partnership              11/9/99*           648          1,002

Total Delinquent                                          $ 5,983        $ 10,238
</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.

During the year ended  December  31,  2001,  the  noteholder  foreclosed  on the
Partnership's  interest in  Griffith  Limited  Partnership.  No gain or loss was
recorded as a result of this transfer of partnership interest.  With the loss of
the Partnership's  interest to the note holder, the Partnership will not receive
any future  benefits  from this Local  Limited  Partnership  and taxable  income
generated  prior  to the  foreclosure  will be  allocated  to the  Partnership's
investors  without any  distributable  cash for the current  year.  The specific
impact  of the tax  consequences  is  dependent  upon  each  specific  partner's
individual tax situation.

7.    DUE TO PARTNERS

The Local Limited  Partnerships  accrued annual partnership  administration fees
payable to the General Partner of approximately  $64,000 and $75,000 during 2001
and 2000,  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  2001  and  2000,  the  Local  Limited
Partnerships  paid  approximately  $162,000  and  $35,000,   respectively.   The
accumulated fees owed to NHP are approximately $305,000 at December 31, 2001.

During 2001 and 2000, the General  Partner  advanced  approximately  $39,000 and
$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). During 2001, three Local Limited Partnerships made principal payments
to the General Partner of approximately  $351,000 and approximately $180,000 was
forgiven.  No payments of principal were made during 2000. At December 31, 2001,
the balance owed to the General  Partner by the Local Limited  Partnerships  was
approximately  $133,000,  including  accrued interest of approximately  $21,000.
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 4.75% at
December 31, 2001.

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  2001.
Repayments  of advances of  approximately  $20,000 were  received from one Local
Limited  Partnership during 2000. No repayments of advances were received during
2001.  Accrued  interest of  approximately  $15,000 was received  from one Local
Limited  Partnership  during 2001. At December 2001, the  Partnership's  working
capital  advances  to  Local  Limited  Partnerships  amounted  to  approximately
$84,000.  Interest is charged at the Chase Manhattan Bank rate of prime plus 2%.
Chase Manhattan Bank prime was 4.75% at December 31, 2001.

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  2001,  Forest  Green  Limited  Partnership  and  Village  Green  Limited
Partnership recognized an impairment loss on their respective rental property in
the amount of approximately $59,000 and $69,000  respectively.  These impairment
losses were the result of the net  carrying  value of the assets  exceeding  the
estimated net realizable 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, 2001. Should a Local
Limited  Partnership  be forced to  dispose of any of its  properties,  it could
incur a loss.


<PAGE>



10.   RELATED-PARTY TRANSACTIONS

An affiliate of the General  Partner,  NHP Management  Company  ("NHPMC") is the
project  management agent for the projects operated by four of the Local Limited
Partnerships.  NHPMC and other affiliates of NCHP earned approximately  $398,000
and $703,000 from the Local Limited Partnerships for management fees provided to
the Local Limited Partnerships during 2001 and 2000,  respectively.  At December
31,  2001,  the amount due NHPMC and  unpaid by the Local  Limited  Partnerships
amounted  to  approximately   $7,000.   During  2001,  the  four  Local  Limited
Partnerships  operated by an affiliate of the General Partner were charged a fee
related  to  construction   management   services  provided  by  AIMCO  and  its
affiliates.  The fee was calculated based on a percentage of current and certain
prior year  additions to fixed  assets.  This fee is payable from surplus  cash.
This fee of  approximately  $72,000 has been capitalized as part of fixed assets
for the respective  Local Limited  Partnership and is being  depreciated over 15
years.

In  addition,  during  2001,  four Local  Limited  Partnerships  operated  by an
affiliate of the General Partner began insuring their  respective  properties up
to  certain  limits  through  coverage  provided  by AIMCO  which  is  generally
self-insured  for a  portion  of  losses  and  liabilities  related  to  workers
compensation,  property casualty and vehicle  liability.  The four Local Limited
Partnerships  insure their respective  properties above the AIMCO limits through
insurance policies obtained by AIMCO from insurers unaffiliated with the General
Partner.  During the year  ended  December  31,  2001,  the four  Local  Limited
Partnerships paid AIMCO and its affiliates  approximately  $54,000 for insurance
coverage and fees associated with policy claims administration.

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,  2001 and 2000 were  approximately
$594,000 and $1,005,000, 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 2001 and 2000, the affiliate received  approximately $65,000 and $69,000,
respectively, for these services.  Additionally, in 2001 and 2000, approximately
$15,000 and $16,000,  respectively,  was paid to this  affiliate for  accounting
services  and  approximately  $10,000  and  $12,000,  respectively,  was paid to
another affiliate for painting services.


<PAGE>



11.   GOING CONCERN

Certain  of the  Local  Limited  Partnership's  notes  payable  are  past due at
December  31,  2001,  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.

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

During 2001,  Southward Limited  Partnership entered into a sales agreement with
an  unaffiliated  third  party for the sale of  Parker  Square  Apartments.  The
closing occurred on June 29, 2001, with a sale price of $3,300,000. Net proceeds
after payment of closing costs of  approximately  $2,686,000  were used to repay
the mortgage  encumbering  the  property,  with the holders of the Parker Square
note  payable  receiving  the  remaining  net proceeds in full  satisfaction  of
amounts due on their note,  which was secured by the  Partnership's  interest in
the Local Limited  Partnership.  Any unpaid  balances were  forgiven.  The Local
Limited Partnership  recognized a gain on sale of approximately  $268,000 and an
extraordinary  gain on debt forgiveness of approximately  $2,656,000 at December
31, 2001.

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. The
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  note,  which was  secured by the  Partnership's  interest in the Local
Limited  Partnership.  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 in 2000.

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. The 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  the  amount  due  on  the  note,  which  was  secured  by  the
Partnership's  interest  in the Local  Limited  Partnership.  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 in 2000. The
Local Limited  Partnership  recognized an additional gain on debt forgiveness of
approximately  $180,000  during the year ended  December  31,  2001,  due to the
forgiveness  of the  remaining  amounts  owed on loans  payable  to the  general
partner of the Local Limited  Partnership  which were not able to be unpaid upon
dissolution of the Local Limited Partnership in 2001.