SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   Form 10-KSB

[X] ANNUAL   REPORT  UNDER   SECTION  13  OR  15(d)  OF  THE SECURITIES EXCHANGE
  ACT OF 1934

                  For the fiscal year ended December 31, 2002

[ ]   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
         OF 1934

                      For the transition period _________to _________

                         Commission file number 0-13465

                   NATIONAL HOUSING PARTNERSHIP REALTY FUND I
                 (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:

                      11,429 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.   $50,000

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, 2002. 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

The matters discussed in this report contain certain forward-looking statements,
including, without limitation, statements regarding future financial performance
and the effect of government  regulations.  The discussions of the  Registrant's
business  and  results  of  operations,   including  forward-looking  statements
pertaining to such matters,  do not take into account the effects of any changes
to the  Registrant's  business  and results of  operations.  Actual  results may
differ  materially  from those described in the  forward-looking  statements and
will  be  affected  by  a  variety  of  risks  and  factors  including,  without
limitation:  national and local economic  conditions;  the terms of governmental
regulations that affect the Registrant and interpretations of those regulations;
the competitive  environment in which the Registrant operates;  financing risks,
including the risk that cash flows from  operations may be  insufficient to meet
required  payments of  principal  and  interest;  real estate  risks,  including
variations  of real  estate  values and the  general  economic  climate in local
markets and competition for tenants in such markets; and possible  environmental
liabilities.   Readers  should  carefully  review  the  Registrant's   financial
statements and the notes thereto,  as well as the risk factors  described in the
documents  the  Registrant  files  from  time to time  with the  Securities  and
Exchange Commission.

                                     PART I

Item 1.     Description of 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 publicly traded
real estate  investment  trust ("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 five
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  at December  31,
2002. The Partnership held an interest in one limited partnership which sold its
property  during the year ended  December 31, 2002 and held an interest in three
other limited  partnerships  which sold their  properties prior to 2002, and the
Partnership  held an interest  in one limited  partnership  whose  interest  was
foreclosed  upon prior to 2002.  Subsequent to the year ended December 31, 2002,
two local limited  Partnerships in which the  Partnership  held an interest sold
their properties.

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  Operation"  for  information
relating  to  the  Registrant's   rights  and  obligations  to  make  additional
contributions or loans to Local Limited Partnerships.

      The Partnership's investment objectives are to:

      (1)   preserve and protect Partnership capital;

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

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

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

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

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

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

<TABLE>
<CAPTION>

                                                          Units
                                           Financed,    Authorized        Occupancy
                                            Insured     for Rental        Percentage
                                              and       Assistance     for the Year Ended
 Property Name, Location       Number of  Subsidized      Under           December 31,
   and Partnership Name        Units         Under      Section 8      2002       2001
                                                           (B)

<S>                             <C>                         <C>        <C>         <C>
Forest Green                    100           (A)           85         89%         92%
  Gainesville, Florida (F)
   (Forest Green Limited
     Partnership)
Howard F. Robbins Tower         191           (A)          167         100%       100%
 Mayfield Heights, Ohio
 (Gates Mills I Limited
  Partnership)
Lakeview Apartments             (C)           (C)          (C)         (C)         (C)
  Fresno, California
  (Griffith Limited
    Partnership)
Northgate Village               (E)           (E)          (E)         (E)         (E)
  Columbus, Georgia
   (Northgate Village
     Limited Partnership)
Parker Square                   (D)           (D)          (D)         (D)         (D)
 Houston, Texas
 (Southward Limited
    Partnership)
San Jose                        220           (A)          215         100%       100%
 San Antonio, Texas
 (San Jose Limited
    Partnership)
Talladega Downs                 100           (A)          100         100%       100%
 Talladega, Alabama
 (Hurbell IV Limited
    Partnership)
Village Green                   100           (A)           77         92%         91%
 Gainesville, Florida (F)
 (Village Green Limited
  Partnership

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

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

   (E)      Property was sold during the year ended December 31, 2002.

   (F)      Property was sold subsequent to December 31, 2002.
</TABLE>

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, 2002.

<TABLE>
<CAPTION>

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

<S>               <C>            <C>            <C>        <C>                <C>
Forest Green L.P. (2)            99%            $  420     $   720            $ --
Gates Mills I L.P.               98%             1,561       1,762            7,533
San Jose L.P.                    99%             1,156       1,467            4,818
Hurbell IV L.P.                  99%               372         840            1,708
Village Green L.P. (2)           99%               430         522               --
</TABLE>

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

(2)   The local limited  partnership sold its investment  property subsequent to
      the year ended December 31, 2002.

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 five 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 644 units, or 91% of the units in
which the  Partnership  had invested at December 31, 2002.  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.  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

2003                     477                 74%                   67%
2004                     167                 26%                   24%
Total                    644                100%                   91%

Of the units (644 in total)  receiving rent subsidies from Section 8, 477 of the
units have their  contracts  expiring  during the year ending December 31, 2003.
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.

The  General  Partner  believes  that the  properties  owned by the  Partnership
through  the  ownership  of  limited  partnership  interests  in  Local  Limited
Partnerships 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.  Description  of  Business"  for the  real  estate  owned  by the
Partnership  through the  ownership  of limited  partnership  interests in Local
Limited Partnerships.

Item 3.     Legal Proceedings

The Partnership is unaware of any 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, 2002.

                                     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 Partnership  interests
            nor is a market expected to develop in the near future. Accordingly,
            an investor may be unable to sell or otherwise dispose of his or her
            interest in the Partnership.

      (b)   As of December 31, 2002, there were 952 registered holders of 11,429
            limited partnership  interests (in addition to 1133 Fifteenth Street
            Associates - See "Item 7.  Financial  Statements - Note 1"). In 2002
            and 2001, the number of Limited  Partnership  Units  decreased by 60
            and 20 units,  respectively,  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, 2002.

Item 6.     Management's Discussion and Analysis or Plan of Operation

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, 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.  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 Local
Limited  Partnership  nor any  partner  thereof,  present or future,  assume any
personal  liability for the payment of the notes.  The notes were due 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, 2002,  Northgate Village Limited  Partnership
entered into a sales agreement with an unaffiliated  third party for the sale of
Northgate Village Apartments.  The closing occurred on December 16, 2002, with a
sale price of $3,500,000.  Net proceeds of approximately $3,389,000 were used to
repay the mortgage  encumbering  the  property  and the holder  ("AIMCO") of the
Northgate  Village note  received  payment of  approximately  $2,131,000.  It is
expected that  additional  payments will be made in 2003 on the note,  which was
secured by the Partnership's interest in the Local Limited Partnership, and that
AIMCO will forgive the remaining unpaid balance.  The Local Limited  Partnership
recognized a gain on the sale of approximately $1,215,000,  which is included in
gain from sale of  discontinued  operations,  and a gain on debt  forgiveness of
approximately $100,000, which is included in gain from discontinued operations.

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 year. The specific impact of
the tax  consequences is dependent upon each specific  partner's  individual tax
situation.

During the year ended December 31, 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,  which is  included  in gain from sale of  discontinued
operations,  and a gain on debt forgiveness of approximately $2,656,000 in 2001,
which is included in gain from discontinued operations.

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.  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.

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 Partnership  adopted SFAS No. 144 effective January
1, 2002. The adoption did not have a material  effect on the financial  position
or results of operations of the Partnership.  However, the accompanying combined
statements  of  operations  have been restated as of January 1, 2001, to reflect
the gain on sale and operations of Northgate  Village  Limited  Partnership  and
Southward Limited  Partnership as gain from sale of discontinued  operations and
gain from discontinued operations,  respectively, due to their sales in December
2002 and June 2001, respectively.

In April 2002,  the Financial  Accounting  Standards  Board issued SFAS No. 145,
"Rescission of FASB  Statements  No. 4, 44 and 64". SFAS No. 4 "Reporting  Gains
and Losses from Extinguishment of Debt," required that all gains and losses from
extinguishment  of  debt  be  aggregated  and,  if  material,  classified  as an
extraordinary item. SFAS No. 145 rescinds SFAS No. 4, and accordingly, gains and
losses from extinguishment of debt should only be classified as extraordinary if
they are  unusual in nature and occur  infrequently.  Neither of these  criteria
applies to the Partnership. SFAS No. 145 is effective for fiscal years beginning
after May 15, 2002 with early adoption an option.  The Partnership  adopted SFAS
No. 145 effective  April 1, 2002. The adoption did not have a material effect on
the financial position or results of operations of the Partnership. However, the
accompanying combined statements of operations have been restated to reflect the
gains on forgiveness of debt of Northgate Village Limited Partnership, Southward
Limited  Partnership,  and Southridge  Apartments Limited  Partnership as a gain
from  discontinued  operations,  due to their  sales in 2002,  2001,  and  2000,
respectively.

During the years ended  December 31, 2002 and 2001, no advances were made by the
Partnership  to the Local  Limited  Partnerships.  Repayment  of an  advance  of
approximately  $6,000 and accrued interest of approximately  $3,000 was received
from one Local  Limited  Partnership  during the year ended  December  31, 2002.
Accrued  interest of  approximately  $15,000 was received from one Local Limited
Partnership  during the year ended  December 31, 2001. At December 31, 2002, the
Partnership's working capital advances to Local Limited Partnerships amounted to
approximately  $78,000.  Interest is charged at the Chase Manhattan Bank rate of
prime plus 2% or 6.25% at December 31, 2002.

During the years ended December 31, 2002 and 2001, the General Partner  advanced
approximately  $1,000 and $39,000,  respectively,  to one and 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 the year
ended December 31, 2002, two Local Limited  Partnerships made principal payments
to the General Partner of approximately $43,000.  During the year ended December
31,  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.  At December 31, 2002,  the balance owed to the General
Partner by the Local Limited Partnerships was approximately  $89,000,  including
accrued interest of approximately $19,000. Interest on these advances is charged
at a rate equal to the Chase Manhattan Bank prime interest rate plus 2% or 6.25%
at December 31, 2002.

The Local Limited  Partnerships  accrued annual partnership  administration fees
payable to the General Partner of  approximately  $45,000 and $64,000 during the
years ended December 31, 2002 and 2001, respectively. Payments of these fees are
made to the General  Partner from surplus cash  available  for  distribution  to
partners  pursuant to HUD regulations.  During the years ended December 31, 2002
and  2001,  the Local  Limited  Partnerships  paid  approximately  $128,000  and
$162,000,  respectively.  The  accumulated  fees  owed to NHP are  approximately
$222,000 at December 31, 2002.

Net  cash  used  in  operations  for  the  year  ended  December  31,  2002  was
approximately  $262,000 compared to net cash used in operations of approximately
$53,000  for the year ended  December  31,  2001.  The  increase in cash used in
operations  was a result of a payment of accrued  administrative  and  reporting
fees to the General Partner,  interest  payments on outstanding  General Partner
loans and an increase in operating expenses paid.

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  three  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.  There were no such distributions  received
during the years ended December 31, 2002 and 2001, respectively.  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.  There  were no such  distributions  received  during the year ended
December 31, 2002.

The  Partnership  had cash and cash  equivalents  of  approximately  $12,000  at
December  31,  2002 as compared to cash and cash  equivalents  of  approximately
$426,000 at  December  31,  2001.  The  ability of the  Partnership  to meet its
on-going cash  requirements,  in excess of cash on hand at December 31, 2002, 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  were  approximately  $425,000  during the year ended  December 31,
2001.  There  were  no  such  distributions  received  from  the  Local  Limited
Partnerships  during the year ended  December 31, 2002. The  Partnership's  only
other form of liquidity is from General Partner loans.  The General Partner will
evaluate lending the Partnership  additional funds as such funds are needed, but
is in no way legally obligated to make such loans.

During  the  year  ended  December  31,  2001,  the  General  Partner   advanced
approximately  $45,000 to the Partnership to pay operating expenses.  There were
no such advances during the year ended December 31, 2002.  During the year ended
December  31,  2002,  the   Partnership   repaid  the  balance  in  advances  of
approximately  $158,000  and accrued  interest of  approximately  $23,000 to the
General  Partner.  No  repayments  of  advances  were made during the year ended
December  31,  2001.  Interest  was  charged at the Chase  Manhattan  Bank prime
interest rate plus 2% or 6.25% at December 31, 2002.

As of December 31, 2002, the Partnership owed the General Partner  approximately
$1,111,000 for administrative and reporting services performed.  During the year
ended  December 31, 2002, the  Partnership  paid  approximately  $150,000 to the
General Partner for  administrative and reporting  services.  There were no such
payments  made during the year ended  December 31,  2001.  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, 2002,  the  Partnership  holds an interest in five Local Limited
Partnerships,  which operate five 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 profits (losses) of
approximately $40,000 and ($151,000) in these two Local Limited Partnerships for
the years ended December 31, 2002 and 2001, respectively. Due to the sale of the
property held by Northgate  Village Limited  Partnership (as discussed  above) a
gain  from sale of  discontinued  operations  of  approximately  $1,215,000  was
recorded and gain from  discontinued  operations  of  approximately  $10,000 was
recorded,  which  more than  offset  losses  not taken in  previous  years.  The
Partnership  recorded  its share of profits of  approximately  $7,000  from this
Partnership  for the year ended  December 31, 2002. The  Partnership's  share of
profits  recognized  during  the year  ended  December  31,  2001 from two Local
Limited  Partnerships  which sold  their  properties  in 2000 was  approximately
$23,000.  Due to the  gain on sale and 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  $96,000 for the year ended
December 31, 2002, compared to a net loss of approximately $418,000 for the year
ended  December  31,  2001.  Net loss per unit of limited  partnership  interest
decreased  from $35.62 to $8.18 for the units  outstanding  at December 31, 2002
and 2001, respectively. The decrease in net loss was primarily due to a decrease
in the loss on  investment  in Local  Limited  Partnerships,  an increase in the
Partnership's share of profits from the Local Limited  Partnerships,  a decrease
in operating  expenses,  and a decrease in interest on General Partner loans due
to the payment of the General Partner loans by the Partnership  during 2002. The
decrease in net loss was partially offset by a decrease in interest  received on
advances to Local Limited Partnerships.  The loss on investment in Local Limited
Partnerships of  approximately  $271,000  recognized in 2001 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 loss on investment  recognized in 2002 is comprised
of the  writeoff  of the  remaining  investment  balance of the  Partnership  in
Northgate  Village  Limited  Partnership as a result of its  liquidation  during
2002.

The  Partnership  did not  recognize  approximately  $1,206,000 of its allocated
share of profits from one Local Limited  Partnership and approximately  $494,000
of its allocated share of losses from three Local Limited  Partnerships  for the
year ended December 31, 2002, 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).

Recent Accounting Pronouncements

In  January  2003,  the  FASB  issued  FASB  Interpretation  No.  46  ("FIN46"),
Consolidation of Variable  Interest  Entities,  an Interpretation of ARB No. 51.
FIN46 requires  certain  variable  interest  entities to be  consolidated by the
primary  beneficiary of the entity if the equity  investors in the entity do not
have the  characteristics  of a  controlling  financial  interest or do not have
sufficient  equity at risk for the  entity to  finance  its  activities  without
additional subordinated financial support from other parties. FIN46 is effective
for all new variable interest entities created or acquired after
January 31, 2003. For variable  interest  entities  created or acquired prior to
February 1, 2003,  the provisions of FIN46 must be applied for the first interim
or annual period  beginning  after June 15, 2003.  The  Partnership is currently
evaluating  the  effect,  if any,  that the  adoption  of FIN46 will have on its
results of operations and financial condition.

Item 7.     Financial Statements

NATIONAL HOUSING PARTNERSHIP REALTY FUND I

LIST OF FINANCIAL STATEMENTS

      Report of Ernst & Young LLP, Independent Auditors

      Balance Sheet - December 31, 2002

      Statements of Operations - Years ended December 31, 2002 and 2001

      Statements of Changes in Partners' (Deficit) Equity - Years ended December
      31, 2002 and 2001

      Statements of Cash Flows - Years ended December 31, 2002 and 2001

      Notes to Financial Statements


                          Independent Auditors' Report



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


We have audited the accompanying  balance sheet of National Housing  Partnership
Realty Fund I (the  "Partnership")  as of  December  31,  2002,  and the related
statements of operations, partners' (deficit) equity, and cash flows for each of
the two years in the period ended December 31, 2002. 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, 2002 and 2001.  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  Partnership  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, 2002,  and the results of its  operations and its cash flows for each of the
two years in the period ended  December 31, 2002 in conformity  with  accounting
principles generally accepted in the United States.

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



                                                            /s/Ernst & Young LLP
Indianapolis, Indiana
March 7, 2003

                   NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                              A LIMITED PARTNERSHIP

                                  BALANCE SHEET

                                December 31, 2002

                        (in thousands, except unit data)






                               ASSETS
  Cash and cash equivalents                                          $      12
  Investments in and advances to Local Limited Partnerships
  (Note 2)                                                               1,894
                                                                     $   1,906
             LIABILITIES AND PARTNERS' (DEFICIT) EQUITY

Liabilities:
  Administrative and reporting fee payable to
     General Partner (Note 3)                                        $   1,111
Partners' (deficit) equity:
  General Partner -- The National Housing Partnership (NHP)                (87)
  Original Limited Partner -- 1133 Fifteenth Street

     Associates                                                            (92)
  Other Limited Partners -- 11,429 investment units                        974
                                                                             795
                                                                     $   1,906


                       See Accompanying Notes to Financial Statements

                   NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                              A LIMITED PARTNERSHIP

                            STATEMENTS OF OPERATIONS

                      (in thousands, except per unit data)

<TABLE>
<CAPTION>

                                                                 Years Ended December 31,
                                                                    2002           2001

REVENUES:
  Share of profits from Local Limited Partnerships
<S>       <C>                                                  <C>             <C>
    (Note 2)                                                   $    47         $    11
  Interest received on advances to Local Limited
    Partnerships (Note 2)                                            3              15
                                                                    50              26
COST AND EXPENSES:
  Loss on investment in Local Limited Partnership (Note 2)           7             271
  Administrative and reporting fees to General
    Partner (Note 3)                                                86              86
  Interest expense on loans from General Partner (Note 3)            1              14
  Other operating expenses                                          52              73
                                                                   146             444

NET LOSS (Note 4)                                              $   (96)        $  (418)

ALLOCATION OF NET LOSS
  General Partner - NHP                                        $    (1)        $    (4)
  Original Limited Partner - 1133 Fifteenth Street
    Associates                                                      (1)             (4)
  Other Limited Partners                                           (94)           (410)
                                                                   (96)           (418)

NET LOSS PER OTHER LIMITED PARTNERSHIP INTEREST                $ (8.18)        $(35.62)

                       See Accompanying Notes to Financial Statements
</TABLE>

                   NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                              A LIMITED PARTNERSHIP

                    STATEMENTS OF PARTNERS' (DEFICIT) EQUITY

                        (in thousands, except unit data)

<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, 2001                 $   (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

Net loss for the year ended
   December 31, 2002                    (1)            (1)          (94)           (96)

(Deficit) equity at
   December 31, 2002               $   (87)        $  (92)      $   974        $   795

Percentage interest at
   December 31, 2002 and 2001           1%             1%           98%           100%
                                        (A)            (B)           (C)

(A)   General Partner

(B)   Original Limited Partner

(C)   Consists  of 11,429  investment  units at  December  31,  2002 and  11,489
      investment  units at December  31, 2001.  During 2002 and 2001,  60 and 20
      units were abandoned, respectively (see Note 7).

                       See Accompanying Notes to Financial Statements
</TABLE>

                   NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                              A LIMITED PARTNERSHIP

                            STATEMENTS OF CASH FLOWS

                                 (in thousands)

<TABLE>
<CAPTION>


                                                                  Years Ended December 31,
                                                                     2002           2001
CASH FLOWS FROM OPERATING ACTIVITIES:
 Administrative and reporting fees paid to General
<S>                                                              <C>              <C>
    Partner                                                      $  (150)         $   --
 Interest paid on General Partner loans                              (23)             --
  Interest received on advances to Local Limited
   Partnerships                                                         3              15
  Operating expenses paid                                             (92)            (68)

  Net cash used in operating activities                              (262)            (53)

CASH FLOWS FROM INVESTING ACTIVITIES:
  Distributions from Local Limited Partnerships                       --              425
  Repayment of advances to Local Limited Partnerships                   6              --

  Net cash provided by investing activities                             6             425

CASH FLOWS PROVIDED BY FINANCING ACTIVITIES:
  Payment of advances from General Partner                          (158)              --
  Advances from General Partner                                       --               45

  Net cash (used in) provided by financing activities               (158)              45

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                (414)             417

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                         426                9

CASH AND CASH EQUIVALENTS, END OF YEAR                             $  12           $  426

RECONCILIATION OF NET LOSS TO NET CASH USED IN
  OPERATING ACTIVITIES:

Net loss                                                           $ (96)          $ (418)
Adjustments to reconcile net loss to net cash used
  in operating activities:
   Share of profits from Local Limited Partnerships                  (47)             (11)
   Loss on investment in Local Limited Partnerships                    7              271
   (Decrease) increase in administrative and
     reporting fees payable to General Partner                       (64)              86
   (Decrease) increase in accrued interest on partner loans          (22)              14
   (Decrease) increase in accrued expenses                           (40)               5

         Total adjustments                                          (166)             365
      Net cash used in operating activities                        $(262)          $  (53)

                       See Accompanying Notes to Financial Statements
</TABLE>


                   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 four
Local Limited  Partnerships and a 98% interest in one Local Limited  Partnership
at December 31, 2002.

On June 3, 1997,  Apartment Investment and Management Company, a publicly traded
real estate  investment  trust ("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.  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.  SFAS No. 131 also establishes  standards
for related disclosures about products and services, geographic areas, and major
customers.  As defined in SFAS No. 131, the  Partnership has only one reportable
segment.

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 Partnership  adopted SFAS No. 144 effective January
1, 2002. The adoption did not have a material  effect on the financial  position
or results of operations of the Partnership.  However, the accompanying combined
statements of  operations  (Note 2) have been restated as of January 1, 2001, to
reflect the gain on sale and operations of Northgate Village Limited Partnership
and Southward Limited  Partnership as gain from sale of discontinued  operations
and gain  from  discontinued  operations,  respectively,  due to their  sales in
December 2002 and June 2001, respectively.

In April 2002,  the Financial  Accounting  Standards  Board issued SFAS No. 145,
"Rescission of FASB  Statements  No. 4, 44 and 64". SFAS No. 4 "Reporting  Gains
and Losses from Extinguishment of Debt," required that all gains and losses from
extinguishment  of  debt  be  aggregated  and,  if  material,  classified  as an
extraordinary item. SFAS No. 145 rescinds SFAS No. 4, and accordingly, gains and
losses from extinguishment of debt should only be classified as extraordinary if
they are  unusual in nature and occur  infrequently.  Neither of these  criteria
applies to the Partnership. SFAS No. 145 is effective for fiscal years beginning
after May 15, 2002 with early adoption an option.  The Partnership  adopted SFAS
No. 145 effective  April 1, 2002. The adoption did not have a material effect on
the financial position or results of operations of the Partnership. However, the
accompanying  combined  statements of operations  (Note 2) have been restated to
reflect  the  gains  on  forgiveness  of  debt  of  Northgate   Village  Limited
Partnership,  Southward Limited Partnership,  and Southridge  Apartments Limited
Partnership as a gain from discontinued operations,  due to their sales in 2002,
2001, and 2000, respectively.

In  January  2003,  the  FASB  issued  FASB  Interpretation  No.  46  ("FIN46"),
Consolidation of Variable  Interest  Entities,  an Interpretation of ARB No. 51.
FIN46 requires  certain  variable  interest  entities to be  consolidated by the
primary  beneficiary of the entity if the equity  investors in the entity do not
have the  characteristics  of a  controlling  financial  interest or do not have
sufficient  equity at risk for the  entity to  finance  its  activities  without
additional subordinated financial support from other parties. FIN46 is effective
for all new variable  interest  entities  created or acquired  after January 31,
2003. For variable  interest  entities  created or acquired prior to February 1,
2003,  the  provisions  of FIN46 must be applied for the first interim or annual
period  beginning after June 15, 2003. The  Partnership is currently  evaluating
the  effect,  if any,  that the  adoption  of FIN46 will have on its  results of
operations and financial condition.

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

During the year ended December 31, 2002,  Northgate Village Limited  Partnership
entered into a sales agreement with an unaffiliated  third party for the sale of
Northgate Village Apartments.  The closing occurred on December 16, 2002, with a
sale price of $3,500,000.  Net proceeds of approximately $3,389,000 were used to
repay the mortgage  encumbering  the  property  and the holder  ("AIMCO") of the
Northgate  Village note  received  payment of  approximately  $2,131,000.  It is
expected that  additional  payments will be made in 2003 on the note,  which was
secured by the Partnership's interest in the Local Limited Partnership, and that
AIMCO will forgive the remaining unpaid balance.  The Local Limited  Partnership
recognized a gain on the sale of approximately $1,215,000,  which is included in
gain from sale of  discontinued  operations,  and a gain on debt  forgiveness of
approximately $100,000, which is included in gain from discontinued operations.

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 year. The specific impact of
the tax  consequences is dependent upon each specific  partner's  individual tax
situation.

During the year ended December 31, 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,  which is  included  in gain from sale of  discontinued
operations,  and a gain on debt forgiveness of approximately $2,656,000 in 2001,
which is included in gain from discontinued operations in the combined financial
statements.

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.  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  has  recorded  its net share of profits  (losses) of  approximately
$40,000 and  ($151,000)  in these two Local Limited  Partnerships  for the years
ended December 31, 2002 and 2001, respectively.  Due to the sale of the property
held by Northgate  Village Limited  Partnership (as discussed above) a gain from
sale of discontinued  operations of approximately  $1,215,000 was recorded and a
gain from discontinued  operations of approximately $10,000 was recorded,  which
more than offset losses not taken in previous years.  The  Partnership  recorded
its share of profits of approximately  $7,000 from this Partnership for the year
ended December 31, 2002. The  Partnership's  share of profits  recognized during
the year ended December 31, 2001 from two Local Limited  Partnerships which sold
their properties in 2000 was approximately  $23,000. Due to the gain on sale and
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
$494,000 and $623,000 of losses from three and five Local  Limited  Partnerships
during 2002 and 2001, respectively. As of December 31, 2002, the Partnership has
not  recognized  approximately  $7,918,000 of its allocated  share of cumulative
losses from the three Local  Limited  Partnerships  in which its  investment  is
zero. In addition,  the Partnership did not recognize  approximately  $1,206,000
and $2,773,000 of its allocated  share of profits from one and two Local Limited
Partnerships  for the years ended December 31, 2002 and 2001,  respectively,  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. The loss on investment
recognized  in 2002 is comprised of the  write-off of the  remaining  investment
balance of the Partnership in Northgate Village Limited  Partnership as a result
of its liquidation during 2002.

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,
2002 for three 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
6.25% at December 31, 2002. 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 the years ended  December 31, 2002 and 2001, no advances were made by the
Partnership  to the Local  Limited  Partnerships.  Repayment  of an  advance  of
approximately  $6,000 and accrued interest of approximately  $3,000 was received
from one Local  Limited  Partnership  during the year ended  December  31, 2002.
Accrued  interest of  approximately  $15,000 was received from one Local Limited
Partnership  during the year ended  December 31, 2001. At December 31, 2002, the
Partnership's working capital advances to Local Limited Partnerships amounted to
approximately  $78,000.  Interest is charged at the Chase Manhattan Bank rate of
prime plus 2% or 6.25% at December 31, 2002.

Summaries of the combined  balance  sheet of the  aforementioned  Local  Limited
Partnerships as of December 31, 2002, and the combined results of operations for
each of the two years in the period ended December 31, 2002, are as follows:

                           CONDENSED COMBINED BALANCE SHEET
                          OF THE LOCAL LIMITED PARTNERSHIPS
                                    (in thousands)
                                                              December 31, 2002
Assets:
  Land                                                               $ 1,583
  Buildings and improvements, net of accumulated
   depreciation of approximately $8,920                                10,134
  Other assets                                                          2,110
                                                                    $ 13,827
Liabilities and Partners' Deficit:
  Liabilities:
  Mortgage notes payable                                             $ 5,311
  Notes payable                                                         5,014
  Accrued interest on notes payable                                     9,045
  Other liabilities                                                     1,044

                                                                        20,414
Partners' Deficit:
  National Housing Partnership Realty Fund I                          (6,382)
  Other partners                                                         (205)
                                                                       (6,587)
                                                                     $ 13,827


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

<TABLE>
<CAPTION>

                                                         Years Ended December 31,
                                                           2002             2001
                                                                         (Restated)
Revenues:
<S>                                                      <C>              <C>
  Rental income                                          $ 3,255          $ 3,135
  Other income                                               299              245

    Total revenues                                         3,554            3,380

Expenses:
  Operating expenses                                       2,818            2,761
  Financial expenses                                          41               32
  Interest on notes payable                                  514              523
  Depreciation                                               641              606
  Impairment loss on rental property                          --              128

    Total expenses                                         4,014            4,050

Loss before discontinued operations                         (460)            (670)

Gain from sale of discontinued operations                  1,215              268

Gain from discontinued operations                             10            2,582

Net income                                                $ 765           $ 2,180
</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,  2002  and  2001 the  projects  received  a total of
approximately $2,083,000 and $2,312,000,  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 legislation affects 644 units, or 91% of the units in
which the  Partnership  has invested at December 31, 2002.  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.  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

2003                      477                74%                    67%
2004                      167                26%                    24%
Total                     644               100%                    91%

Of the units (644 in total)  receiving rent subsidies from Section 8, 477 of the
units have their  contracts  expiring  during the year ending December 31, 2003.
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.  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 matured as follows:

<TABLE>
<CAPTION>

Local Partnership                             Due Date   Note Amount  Accrued Interest
                                                                (in thousands)
<S>                                           <C>  <C>     <C>            <C>
San Jose Limited Partnership                  8/29/99*     $ 1,699        $ 3,119
Gates Mills I Limited Partnership             10/1/99*        2,667          4,866
Hurbell IV Limited Partnership                11/9/99*          648          1,060
Total Delinquent                                           $ 5,014        $ 9,045
</TABLE>

* Notes are in default.

SFAS No. 144  "Accounting  for the Impairment or Disposal of Long-Lived  Assets"
(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. No impairment losses were recorded during 2002.

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, 2002. Should a Local
Limited  Partnership  be forced to  dispose of any of its  properties,  it could
incur a loss.

3. TRANSACTIONS WITH AFFILIATED PARTIES

The Partnership accrued administrative and reporting fees payable to the General
Partner  of  approximately  $86,000  annually  during  each of the  years  ended
December  31, 2002 and 2001.  The  Partnership  paid  approximately  $150,000 of
accrued administrative and reporting fees to the General Partner during the year
ended  December  31,  2002.  No payments  for such fees were made to the General
Partner  during the year ended  December 31, 2001. As of December 31, 2002,  the
Partnership  owed  approximately  $1,111,000 to the General  Partner for accrued
administrative and reporting fees.

During  the  year  ended  December  31,  2001,  the  General  Partner   advanced
approximately  $45,000 to the  Partnership  to pay operating  expenses.  No such
advances  were made during the year ended  December  31,  2002.  During the year
ended  December  31,  2002,  the  Partnership  repaid the balance in advances of
approximately  $158,000  and accrued  interest of  approximately  $23,000 to the
General  Partner.  No  repayments  of  advances  were made during the year ended
December  31,  2001.  Interest  was  charged at the Chase  Manhattan  Bank prime
interest  rate plus 2% or 6.25% at December 31, 2002.  Interest  accrued for the
years ended  December  31, 2002 and 2001 was  approximately  $1,000 and $14,000,
respectively.

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  $344,000
and $398,000 from the Local Limited Partnerships for management fees provided to
the Local  Limited  Partnerships  during the years ended  December  31, 2002 and
2001,  respectively.  During the year ended  December 31,  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 year
additions to fixed assets.  This fee is payable from surplus  cash.  This fee of
approximately  $10,000 and $72,000  for the years  ended  December  31, 2002 and
2001,  respectively,  has  been  capitalized  as part of  fixed  assets  for the
respective Local Limited Partnership.

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,  2002 and 2001 were  approximately
$490,000 and $594,000, 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 the years  ended  December  31,  2002 and 2001,  the  affiliate  received
approximately   $61,000  and   $65,000,   respectively,   for  these   services.
Additionally,  in each of 2002 and 2001,  approximately $15,000 was paid to this
affiliate  for  accounting  services  and  approximately  $13,000  and  $10,000,
respectively, was paid to another affiliate for painting services.

During the year ended  December  31, 2002,  the General  Partner was entitled to
reimbursement of accountable  administrative  expenses of approximately  $39,000
from one Local Limited Partnership. There were no such reimbursements during the
year ended December 31, 2001.

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,
                                                     2002            2001
                                                       (in thousands)

Net loss per financial statements                   $ (96)         $ (418)

  Other                                                (90)            314
  Partnership's share of limited local
   Partnership                                       3,134           3,989
  Gain on foreclosure of Partnership
   Interest                                             --           2,824
Income per tax return                               $2,948         $ 6,709

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

                                                   December 31, 2002
                                                     (in thousands)

      Net assets as reported                           $    795
      Add (deduct):
       Investment in Partnerships                       (13,069)
       Other                                                324
      Net deficit - federal tax basis                  $(11,950)

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  Limited  Partnership's  notes  payable  are past due,  and
therefore,  the notes are in  default  (see Note 2).  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.  These conditions raise substantial doubt about their ability to continue
as a going  concern.  The financial  statements  do not include any  adjustments
which might result from the outcome of this uncertainty.

7. ABANDONMENT OF LIMITED PARTNERSHIP UNITS

During  the years  ended  December  31,  2002 and 2001,  the  number of  Limited
Partnership  Units  decreased by 60 and 20 units,  respectively,  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 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.

8. LEGAL PROCEEDINGS

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

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


                                         Initial Cost                  Cost
                                        To Partnership              Capitalized
                                        (in thousands)               (Removed)
                                                                  Net Subsequent
                                                                  to Acquisition
                                                                  (in thousands)
<TABLE>
<CAPTION>


                                                Buildings
                                               and Related
                                                Personal                   Carrying Cost
     Description      Encumbrances    Land      Property    Improvements    Adjustments

<S>                          <C>     <C>        <C>            <C>           <C>
Forest Green                 (1)     $  170     $ 2,062        $   568       $    (59)
 Limited Partnership
Gates Mills I                (1)        669       6,058            257             --
 Limited Partnership
San Jose                     (1)        440       4,728          1,952             --
 Limited Partnership
Hurbell IV                   (1)        100       2,159            168         (1,460)
 Limited Partnership
Village Green
 Limited Partnership         (1)        137       2,096            661            (69)
  Totals                             $1,516     $17,103        $ 3,606      $  (1,588)
</TABLE>


                         Gross Amount At Which
                                Carried
                              At December 31, 2002
                                 (in thousands)

<TABLE>
<CAPTION>

                                                                                      Life upon
                                                                                         which
                                                                                     depreciation
                                                                                           in
                            Buildings                                                     latest
                               And                                                       statement
                             Related                                                   of operations
                            Personal              Accumulated      Date of       Date   is computed
     Description      Land  Property  Total(2)(3) Depreciation(3) Construction Acquired  (years)

<S>                   <C>    <C>      <C>          <C>                 <C>      <C>        <C>
Forest Green          $176   $ 2,565  $  2,741     $   1,276           1972     8/84       5-50

 Limited Partnership
Gates Mills I          669     6,315     6,984         2,623           1972    10/84       5-30

 Limited Partnership
San Jose Limited
 Partnership          493      6,627     7,120         3,384           1970     9/84       5-50

Hurbell IV
 Limited Partnership  101        866       967           327           1974    11/84       5-30

Village Green
 Limited Partnership  144      2,681     2,825         1,310           1971     8/84       5-50
  Totals           $1,583    $19,054   $20,637       $ 8,920
</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                    $ 720          $ --      $   720

Gates Mills I Limited Partnership                    1,762          7,533      9,295

San Jose Limited Partnership                         1,467          4,818      6,285

Hurbell IV Limited Partnership                         840          1,708      2,548

Village Green Limited Partnership                      522             --        522

  Total - December 31, 2002                        $ 5,311        $14,059    $19,370
</TABLE>


(2)   The   aggregate   cost  of  land  for  Federal   income  tax  purposes  is
      approximately   $739,000  and  the   aggregate   costs  of  buildings  and
      improvements for Federal income tax purposes is approximately $16,987,000.
      The total of the above-mentioned items is approximately $17,726,000.

(3)   Reconciliation of real estate

                                                 Years Ended December 31,
                                                   2002           2001
                                                      (in thousands)
Balance at beginning of period                   $ 24,316       $ 30,724
Improvements during the period                        321            507
Disposals of rental properties                     (4,000)        (6,787)
Impairment losses on rental properties                 --           (128)
Balance at end of period                         $ 20,637       $ 24,316

Reconciliation of accumulated depreciation

                                                 Years Ended December 31,
                                                   2002           2001
                                                      (in thousands)
Balance at beginning of period                    $ 9,975       $ 12,124
Depreciation expense for the period                   787            835
Disposals of rental properties                     (1,842)        (2,984)
Balance at end of period                          $ 8,920       $ 9,975


10. SUBSEQUENT EVENTS

On  January  3,  2003,  Forest  Green  Limited  Partnership  sold  Forest  Green
Apartments to an unaffiliated  third party for a gross sale price of $1,725,000.
The Local  Limited  Partnership  used a portion of the proceeds from the sale of
the  property to pay off the debt  encumbering  the  property  of  approximately
$720,000.

On January  3, 2003,  Village  Green  Limited  Partnership  sold  Village  Green
Apartments to an unaffiliated  third party for a gross sale price of $1,725,000.
The Local  Limited  Partnership  used a portion of the proceeds from the sale of
the  property to pay off the debt  encumbering  the  property  of  approximately
$522,000.

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

            None.


                                    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.

Ronald D.  Monson  (age 46) has been a Director of NCHP and AIMCO since April 1,
2002.  Mr.  Monson  has been  Executive  Vice  President  and  Head of  Property
Operations of AIMCO since February 2001. Previously,  he served as Regional Vice
President  from  March 1997 to May 1998,  when he was  promoted  to Senior  Vice
President of the Midwest Division. Mr. Monson served as Senior Vice President of
the Midwest  Division  until  January 1999,  when he was  appointed  Senior Vice
President of the Far West Division. From April 1994 to February 1997, Mr. Monson
was a Regional Vice President for Great Atlantic Property Management.

Patrick J. Foye (age 45) 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.

Patrick J. Foye  (age 45). See "Directors of NCHP."

Paul J.  McAuliffe  (age 46) has been Executive Vice President of NCHP and AIMCO
since February 1999 and was appointed Chief  Financial  Officer in October 1999.
From May 1996 until he joined AIMCO, Mr. McAuliffe was Senior Managing  Director
of Secured Capital Corp.

Thomas C. Novosel (age 44) has been Senior Vice  President and Chief  Accounting
Officer of NCHP and AIMCO since April 1, 2002.  Mr. Novosel has served as Senior
Vice  President  and Chief  Accounting  Officer of AIMCO since April 2000.  From
October 1993 until he joined AIMCO,  Mr.  Novosel was a partner at Ernst & Young
LLP,  where he served as the director of real estate  advisory  services for the
southern Ohio Valley area offices but did not work on any assignments related to
AIMCO or the Partnership.

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 have approved the inclusion of the
audited financial  statements in the Form 10-KSB for the year ended December 31,
2002 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 2003. Fees for 2002 were
audit  services of  approximately  $41,000 and non-audit  services  (principally
tax-related) of approximately $4,000.

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,
2002.

         Name of Beneficial Owner              Number of Units        % of Class

AIMCO Properties, LP                               1,326.50              11.61%
  (affiliate of the General Partner)

The business address of AIMCO Properties, LP is Stanford Place 3, 4582 S. Ulster
St. Parkway, Suite 1100, Denver, Colorado 80237.

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  each of the  years  ended
December  31, 2002 and 2001.  The  Partnership  paid  approximately  $150,000 of
accrued administrative and reporting fees to the General Partner during the year
ended  December  31,  2002.  No payments  for such fees were made to the General
Partner  during the year ended  December 31, 2001. As of December 31, 2002,  the
Partnership  owed  approximately  $1,111,000 to the General  Partner for accrued
administrative and reporting fees.

During  the  year  ended  December  31,  2001,  the  General  Partner   advanced
approximately  $45,000 to the  Partnership  to pay operating  expenses.  No such
advances  were made during the year ended  December  31,  2002.  During the year
ended  December  31,  2002,  the  Partnership  repaid the balance in advances of
approximately  $158,000  and accrued  interest of  approximately  $23,000 to the
General  Partner.  No  repayments  of  advances  were made during the year ended
December  31,  2001.  Interest  was  charged at the Chase  Manhattan  Bank prime
interest  rate plus 2% or 6.25% at December 31, 2002.  Interest  accrued for the
years ended  December  31, 2002 and 2001 was  approximately  $1,000 and $14,000,
respectively.

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  $344,000
and $398,000 from the Local Limited Partnerships for management fees provided to
the Local Limited Partnerships during the year ended December 31, 2002 and 2001,
respectively.  During the year ended  December 31, 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  year
additions to fixed assets.  This fee is payable from surplus  cash.  This fee of
approximately  $10,000 and $72,000  for the years  ended  December  31, 2002 and
2001,  respectively,  has  been  capitalized  as part of  fixed  assets  for the
respective Local Limited Partnership.

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,  2002 and 2001 were  approximately
$490,000 and $594,000, 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 the years  ended  December  31,  2002 and 2001,  the  affiliate  received
approximately   $61,000  and   $65,000,   respectively,   for  these   services.
Additionally,  in each of 2002 and 2001,  approximately $15,000 was paid to this
affiliate  for  accounting  services  and  approximately  $13,000  and  $10,000,
respectively, was paid to another affiliate for painting services.

During the year ended  December  31, 2002,  the General  Partner was entitled to
reimbursement of accountable  administrative  expenses of approximately  $39,000
from one Local Limited Partnership. There were no such reimbursements during the
year ended December 31, 2001.

Item 13.    Exhibits and Reports on Form 8-K

      (a)   Exhibits:

Exhibit 99 Certification of Chief Executive Officer and Chief Financial Officer.

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 2002:

            None.

Item 14.    Controls and Procedures

The principal  executive officer and principal  financial officer of the General
Partner, who are the equivalent of the Partnership's principal executive officer
and  principal  financial  officer,  respectively,  have,  within 90 days of the
filing  date  of  this  annual  report,   evaluated  the  effectiveness  of  the
Partnership's  disclosure  controls and  procedures  (as defined in Exchange Act
Rules 13a-14(c) and 15d-14(c)) and have determined that such disclosure controls
and  procedures  are  adequate.  There have been no  significant  changes in the
Partnership's  internal  controls or in other  factors that could  significantly
affect the  Partnership's  internal  controls since the date of evaluation.  The
Partnership does not believe any significant deficiencies or material weaknesses
exist in the Partnership's internal controls. Accordingly, no corrective actions
have been taken.

                                   SIGNATURES


In  accordance  with  Section 13 or 15(d) of the Exchange  Act,  the  Registrant
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



                  By: /s/Patrick J. Foye
                      Patrick J. Foye
                      President


                 By:   /s/Thomas C. Novosel
                       Thomas C. Novosel
                       Senior Vice President and
                       Chief Accounting Officer

                 Date: March 31, 2003

In  accordance  with the Exchange  Act, this report has been signed below by the
following  persons on behalf of the  Registrant and in the capacities and on the
date indicated.


/s/Patrick J. Foye       President                   Date: March 31, 2003
Patrick J. Foye          and Director


/s/Thomas C. Novosel     Senior Vice President        Date: March 31, 2003
Thomas C. Novosel        and Chief Accounting Officer


                                  CERTIFICATION


I, Patrick J. Foye, certify that:


1. I have  reviewed  this  annual  report  on Form  10-KSB of  National  Housing
Partnership Realty Fund I;


2.  Based on my  knowledge,  this  annual  report  does not  contain  any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made,  not  misleading  with  respect to the period  covered by this annual
report;


3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included  in this annual  report,  fairly  present in all  material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this annual report;


4.  The  registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:


      a)  Designed  such  disclosure  controls  and  procedures  to ensure  that
      material   information   relating  to  the   registrant,   including   its
      consolidated  subsidiaries,  is made  known to us by others  within  those
      entities,  particularly  during the period in which this annual  report is
      being prepared;


      b) Evaluated the effectiveness of the registrant's disclosure controls and
      procedures  as of a date  within 90 days prior to the filing  date of this
      annual report (the "Evaluation Date"); and


      c) Presented in this annual report our conclusions about the effectiveness
      of the disclosure  controls and  procedures  based on our evaluation as of
      the Evaluation Date;


5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
registrant's   board  of  directors  (or  persons   performing   the  equivalent
functions):


      a) All  significant  deficiencies  in the design or  operation of internal
      controls which could adversely affect the registrant's  ability to record,
      process,  summarize and report  financial data and have identified for the
      registrant's auditors any material weaknesses in internal controls; and


      b) Any fraud,  whether or not material,  that involves management or other
      employees  who  have  a  significant  role  in the  registrant's  internal
      controls; and


6. The  registrant's  other  certifying  officers  and I have  indicated in this
annual report whether or not there were significant changes in internal controls
or in other factors that could significantly affect internal controls subsequent
to the date of our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.


Date: March 31, 2003

                                 /s/Patrick J. Foye
                                 Patrick J. Foye
                                 President   of   National    Corporation   for
                                 Housing Partnerships,  equivalent of the chief
                                 executive officer of the Partnership

                                  CERTIFICATION


I, Paul J. McAuliffe, certify that:


1. I have  reviewed  this  annual  report  on Form  10-KSB of  National  Housing
Partnership Realty Fund I;


2.  Based on my  knowledge,  this  annual  report  does not  contain  any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made,  not  misleading  with  respect to the period  covered by this annual
report;


3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included  in this annual  report,  fairly  present in all  material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this annual report;


4.  The  registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:


      a)  Designed  such  disclosure  controls  and  procedures  to ensure  that
      material   information   relating  to  the   registrant,   including   its
      consolidated  subsidiaries,  is made  known to us by others  within  those
      entities,  particularly  during the period in which this annual  report is
      being prepared;


      b) Evaluated the effectiveness of the registrant's disclosure controls and
      procedures  as of a date  within 90 days prior to the filing  date of this
      annual report (the "Evaluation Date"); and


      c) Presented in this annual report our conclusions about the effectiveness
      of the disclosure  controls and  procedures  based on our evaluation as of
      the Evaluation Date;


5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
registrant's   board  of  directors  (or  persons   performing   the  equivalent
functions):


      a) All  significant  deficiencies  in the design or  operation of internal
      controls which could adversely affect the registrant's  ability to record,
      process,  summarize and report  financial data and have identified for the
      registrant's auditors any material weaknesses in internal controls; and


      b) Any fraud,  whether or not material,  that involves management or other
      employees  who  have  a  significant  role  in the  registrant's  internal
      controls; and


6. The  registrant's  other  certifying  officers  and I have  indicated in this
annual report whether or not there were significant changes in internal controls
or in other factors that could significantly affect internal controls subsequent
to the date of our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.


Date: March 31, 2003

                              /s/Paul J. McAuliffe
                                Paul J. McAuliffe
                                    Executive Vice President and Chief Financial
                                    Officer of National  Corporation for Housing
                                    Partnerships,   equivalent   of  the   chief
                                    financial officer of the Partnership

Exhibit 99


                          Certification of CEO and CFO
                       Pursuant to 18 U.S.C. Section 1350,
                             As Adopted Pursuant to
                  Section 906 of the Sarbanes-Oxley Act of 2002



In  connection  with the  Annual  Report  on Form  10-KSB  of  National  Housing
Partnership Realty Fund I (the  "Partnership"),  for the year ended December 31,
2002 as filed with the  Securities  and Exchange  Commission  on the date hereof
(the  "Report"),  Patrick  J. Foye,  as the  equivalent  of the chief  executive
officer of the  Partnership,  and Paul J.  McAuliffe,  as the  equivalent of the
chief financial officer of the Partnership,  each hereby certifies,  pursuant to
18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002, that, to the best of his knowledge:

(1)  The Report fully complies with the  requirements  of Section 13(a) or 15(d)
     of the Securities Exchange Act of 1934; and

(2)  The information  contained in the Report fairly  presents,  in all material
     respects,  the  financial  condition  and  results  of  operations  of  the
     Partnership.


                                    /s/Patrick J. Foye
                              Name: Patrick J. Foye
                              Date: March 31, 2003


                                    /s/Paul J. McAuliffe
                              Name: Paul J. McAuliffe
                              Date: March 31, 2003

This  certification  accompanies  the  Report  pursuant  to  Section  906 of the
Sarbanes-Oxley  Act of 2002 and shall not,  except to the extent required by the
Sarbanes-Oxley  Act of 2002, be deemed filed by the  Partnership for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended.

                                  EXHIBIT 99.1

                   NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                              FINANCIAL STATEMENTS

                 FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001


                          Independent Auditors' Report


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

We have audited the  accompanying  combined  balance  sheet of the Local Limited
Partnerships  in  which  National  Housing   Partnership   Realty  Fund  I  (the
Partnership) holds a limited  partnership  interest as of December 31, 2002, and
the related combined statements of operations, partners' deficit, and cash flows
for each of the two years in the period ended December 31, 2002.  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 five Local  Limited
Partnerships) for the year ended December 31, 2002 which reflect total assets of
45% of combined  total  assets as of December  31,  2002,  and net losses  which
reflect  $283,000 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 six Local Limited  Partnerships)  for the year
ended December 31, 2001 which reflect $323,000 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  Partnership  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, 2002, and the combined  results of their operations and their
cash flows for each of the two years in the period  ended  December  31, 2002 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.

As discussed in Note 1 to the  financial  statements,  in 2002 the Local Limited
Partnerships  adopted  Statement  of  Financial  Accounting  Standards  No.  144
"Accounting  for the Impairment or Disposal of Long-Lived  Assets" and Statement
of Financial  Accounting Standards No. 145 "Rescission of FASB Statements No. 4,
44, and 64." As a result,  the accompanying  combined  financial  statements for
2001,  referred  to above,  have been  restated  to conform to the  presentation
adopted in 2002 in accordance with accounting  principles  generally accepted in
the United States.


                                                           /s/Ernst & Young  LLP
Indianapolis, Indiana
March 7, 2003

                          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, 2002,
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, 2002,  and the results of its  operations  and its 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 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.

In  accordance  with  Government  Auditing  Standards,  we have also  issued our
reports  dated  February  22,  2003 on our  consideration  of Hurbell IV Limited
Partnership's  internal  control and on our tests of its compliance with certain
provisions  of laws,  regulations,  contracts  and grants.  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.

The accompanying  supplemental  information  (shown on pages 15-19) is presented
for the purposes of additional  analysis and is not a required part of the basic
financial  statements of Hurbell IV Limited  Partnership.  Such  information has
been  subjected  to the  auditing  procedures  applied in the audit of the basic
financial  statements  and, in our  opinion,  is fairly  stated in all  material
respects in relation to the financial statements taken as a whole.

                                                               /s/ SR Allen, LLC


Atlanta, Georgia
February 22, 2003

                          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

                          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, 2002, 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, 2002, 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.

In accordance with Government  Auditing  Standards,  and the "Consolidated Audit
Guide for Audits of HUD Programs", we have also issued reports dated January 15,
2003,  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.

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 24 through 29
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.

                                                   /s/Reznick Fedder & Silverman
Bethesda, Maryland
January 15, 2003

                          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

                                  EXHIBIT 99.1

                   NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                           LOCAL LIMITED PARTNERSHIPS

                             COMBINED BALANCE SHEET


                                December 31, 2002
                                 (in thousands)

                                        ASSETS
Cash and cash equivalents                                           $ 378
Accounts receivable, net (Note 2)                                        72
Tenants' security deposits held in trust funds                          109
Prepaid taxes and insurance                                              81
Deposits                                                                 59
Mortgage escrow deposits (Note 5)                                     1,411
Rental property, net (Notes 4, 5, and 9)                             11,717
                                                                   $ 13,827


                          LIABILITIES AND PARTNERS' DEFICIT
Accounts payable and accrued expenses:
  Trade payables                                                    $ 220
  Accrued real estate taxes                                             131
  Due to partners (Notes 7 and 10)                                      465
  Accrued interest on partner loans (Note 7)                            122
                                                                        938

Tenants' security deposits payable                                      106
Notes payable (Note 6)                                                5,014
Accrued interest on notes payable (Note 6)                            9,045
Mortgage notes payable (Note 5)                                       5,311
Partners' deficit                                                    (6,587)
                                                                   $ 13,827

                       See Accompanying Notes to Financial Statements


                                  EXHIBIT 99.1

                   NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                           LOCAL LIMITED PARTNERSHIPS

                        COMBINED STATEMENTS OF OPERATIONS
                                 (in thousands)

<TABLE>
<CAPTION>

                                                              Years Ended December 31,
                                                                  2002         2001
REVENUES:                                                                   (Restated)
<S>                   <C>                                       <C>          <C>
  Rental income (Note 3)                                        $ 3,255      $ 3,135
  Interest income                                                    30           57
  Other income                                                      269          188
                                                                  3,554        3,380
EXPENSES:
  Administrative expenses (Note 10)                                 886          904
  Operating and maintenance expenses                                778          727
  Utilities and maintenance expenses                                544          592
  Depreciation (Note 1)                                             641          606
  Taxes and insurance                                               572          500
  Financial expenses - primarily interest (Note 5)                   41           32
  Interest on notes payable (Notes 6 and 7)                         514          523
  Annual partnership administrative fees to General
    Partner (Note 7)                                                 38           38
  Impairment loss on rental property (Note 9)                        --          128
                                                                  4,014        4,050

  Loss from continuing operations                                  (460)        (670)
  Gain from sale of discontinued operations (Notes 1 and 13)      1,215          268
  Gain from discontinued operations (Notes 1 and 13)                 10        2,582
  NET INCOME (Note 8)                                            $ 765       $ 2,180

                       See Accompanying Notes to Financial Statements
</TABLE>

                                  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, 2001          $(11,565)    $  (204)      $   (54)     $(11,823)

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

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

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

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

Net income (loss)                        759           8            (2)          765

Deficit at December 31, 2002         $ (6,382)    $ (146)      $   (59)     $ (6,587)

Percentage interest at
  December 31, 2002 and 2001         (A)            (B)         (C)

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

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

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

                       See Accompanying Notes to Financial Statements
</TABLE>

                                  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,
                                                                  2002            2001
CASH FLOWS FROM OPERATING ACTIVITIES:
  Receipts:
<S>                                                           <C>              <C>
   Rental receipts                                            $ 3,843          $ 4,583
   Interest receipts                                               71              129
   Other operating receipts                                       270              270
   Entity receipts:
     Miscellaneous receipts                                        --                2
   Total receipts                                               4,184            4,984
  Disbursements:
   Administrative                                                (287)            (680)
   Management fees                                               (406)            (398)
   Utilities paid                                                (627)            (954)
   Salaries and wages                                            (685)            (777)
   Operating and maintenance                                     (517)            (528)
   Real estate taxes                                             (275)            (387)
   Property insurance                                            (214)            (115)
   Miscellaneous taxes and insurance                             (162)            (191)
   Tenant security deposits                                       (24)              (1)
   Other operating disbursements                                  (31)             (30)
   Interest on mortgage                                            (6)              --
   Mortgage insurance premium                                     (32)             (35)
   Miscellaneous financial                                        (10)              (3)
   Entity disbursements:
     Interest on notes payable                                    (10)            (198)
     Miscellaneous disbursements                                 (141)            (197)
   Total disbursements                                         (3,427)          (4,494)
Net cash provided by operating activities                         757              490
CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds from disposals of rental properties                  3,389            2,686
  Net change in mortgage escrow deposits                          (20)           1,351
  Net purchase of fixed assets                                   (356)            (561)
  Other investing                                                 (28)             (10)
Net cash provided by investing activities                       2,985            3,466

                       See Accompanying Notes to Financial Statements
</TABLE>

                   NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                           LOCAL LIMITED PARTNERSHIPS

                  COMBINED STATEMENTS OF CASH FLOWS - CONTINUED
                                 (in thousands)

<TABLE>
<CAPTION>

                                                                Years Ended December 31,
                                                                  2002            2001
CASH FLOWS FROM FINANCING ACTIVITIES:
<S>                                                            <C>              <C>
  Repayments of mortgage notes payable                         (1,076)          (1,293)
  Payment in satisfaction of notes payable and                 (2,131)          (1,700)
     accrued interest
  Payments of mortgage notes payable                             (430)            (454)
  Distributions to partners                                        --             (429)
  Proceeds from loans or notes payable                              1               39
  Principal payments on loan or notes payable                     (49)            (351)
  Other financing                                                  (1)              25
Net cash used in financing activities                          (3,686)          (4,163)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS               56             (207)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                      322              529
CASH AND CASH EQUIVALENTS, END OF YEAR                       $    378         $    322

                       See Accompanying Notes to Financial Statements
</TABLE>

                                  EXHIBIT 99.1

                   NATIONAL HOUSING PARTNERSHIP REALTY FUND I

                           LOCAL LIMITED PARTNERSHIPS

                  COMBINED STATEMENTS OF CASH FLOWS (Continued)

                                 (in thousands)
<TABLE>
<CAPTION>



                                                                Years Ended December 31,
                                                                  2002            2001
reconciliation of net INCOME to net cash provided
  BY OPERATING ACTIVITIES:

<S>                                                            <C>              <C>
  Net income                                                   $   765          $ 2,180
  Adjustments to reconcile net income to net cash
   provided by operating activities:
   Depreciation                                                    787              835
   Gain from sale of discontinued operations                    (1,215)            (268)
   Gain on forgiveness of debt                                    (100)          (2,836)
   Impairment loss on rental property                               --              128
   Changes in operating assets and liabilities:
     Tenants accounts receivable                                     4                1
     Accounts receivable - other                                    25              292
     Accrued receivables                                            (8)              12
     Prepaid expenses                                              (19)               9
     Cash restricted for tenant security deposits                    1               88
     Accounts payable trade                                         (3)            (325)
     Accrued liabilities                                             6              (53)
     Accrued interest - notes payable                              605              614
     Tenant security deposits held in trust                        (25)             (17)
     Prepaid revenue                                               (14)              (1)
     Transfer of operating cash to new owner                        --              (83)
     Entity liability accounts                                     (52)             (86)

  Total adjustments                                                 (8)          (1,690)

NET CASH PROVIDED BY OPERATING ACTIVITIES                      $   757          $   490

SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY:
  Net write-off of assets and liabilities
  to reflect sale and foreclosure, respectively, and
  treated as a liquidation and transfer of partnership
  interest, respectively                                       $   185          $ 2,720

                       See Accompanying Notes to Financial Statements
</TABLE>

                                  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 four  Local
Limited  Partnerships  and a 98% interest in one Local  Limited  Partnership  at
December 31, 2002.

On June 3, 1997,  Apartment Investment and Management Company, a publicly traded
real estate  investment  trust ("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 2002 and 2001.

      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  (rental property sold December 16,
      2002 and  partnership  liquidated  in 2002) 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.

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 Partnership  adopted SFAS No. 144 effective January
1, 2002. As a result,  the accompanying  combined  statements of operations have
been restated as of January 1, 2001, to reflect the gain on sale and  operations
of Northgate Village Limited  Partnership and Southward  Limited  Partnership as
gain  from  sale  of  discontinued   operations  and  income  from  discontinued
operations,  respectively,  due to their sales in  December  2002 and June 2001,
respectively.

In April 2002,  the Financial  Accounting  Standards  Board issued SFAS No. 145,
"Rescission of FASB  Statements  No. 4, 44 and 64". SFAS No. 4 "Reporting  Gains
and Losses from Extinguishment of Debt," required that all gains and losses from
extinguishment  of  debt  be  aggregated  and,  if  material,  classified  as an
extraordinary item. SFAS No. 145 rescinds SFAS No. 4, and accordingly, gains and
losses from extinguishment of debt should only be classified as extraordinary if
they are  unusual in nature and occur  infrequently.  Neither of these  criteria
applies to the Partnership. SFAS No. 145 is effective for fiscal years beginning
after May 15, 2002 with early adoption an option.  The Partnership  adopted SFAS
No.  145  effective  April 1,  2002.  As a  result,  the  accompanying  combined
statements of operations  have been restated to reflect the gains on forgiveness
of debt of Northgate Village Limited Partnership, Southward Limited Partnership,
and Southridge  Apartments  Limited  Partnership  as a income from  discontinued
operations, due to their sales in 2002, 2001, and 2000, respectively.

2. ACCOUNTS RECEIVABLE

Accounts receivable consist of the following:

                                                December 31, 2002
                                                 (in thousands)
Net tenant accounts receivable                        $ 10
Housing assistance receivable (see Note 3)               34
Accounts receivable - interest                           10
Interest reduction payment receivable                     8
Accounts and notes receivable - operations               10

Net accounts receivable                               $ 72

3. HOUSING ASSISTANCE AGREEMENTS

The Federal  Housing  Administration  (FHA) has  contracted  with the five 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 year.  Each Local Limited  Partnership  had an
agreement in effect during 2002. The Local Limited Partnerships received a total
of  approximately  $2,083,000 and  $2,312,000 in the form of housing  assistance
payments during 2002 and 2001, respectively,  which is included in Rental Income
and gain from discontinued operations 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 644 units, or 91% 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.  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

2003                      477                74%                    67%
2004                      167                26%                    24%
Total                     644               100%                    91%

Of the units (644 in total)  receiving  rent  subsidies  from Section 8, 477 the
units have their  contracts  expiring  during the year ending December 31, 2003.
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, 2002
                                               (in thousands)

Land                                              $ 1,583
Buildings and improvements                          17,640
Equipment and furniture                              1,414
                                                    20,637

Less accumulated depreciation                       (8,920)

Net rental property                               $ 11,717

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):

          2003                 $ 399
          2004                   430
          2005                   463
          2006                   499
          2007                   529
       Thereafter              2,991
                              $5,311

6. NOTES PAYABLE

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

These notes matured as follows:

<TABLE>
<CAPTION>

Local Partnership                             Due Date   Note Amount  Accrued Interest
                                                                (in thousands)
<S>                                           <C>  <C>     <C>            <C>
San Jose Limited Partnership                  8/29/99*     $ 1,699        $ 3,119
Gates Mills I Limited Partnership             10/1/99*        2,667          4,866
Hurbell IV Limited Partnership                11/9/99*          648          1,060

Total Delinquent                                           $ 5,014        $ 9,045
</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.

7. DUE TO PARTNERS

The Local Limited  Partnerships  accrued annual partnership  administration fees
payable to the General Partner of  approximately  $45,000 and $64,000 during the
years ended December 31, 2002 and 2001, respectively. Payments of these fees are
made to the General  Partner from surplus cash  available  for  distribution  to
partners  pursuant to HUD regulations.  During the years ended December 31, 2002
and  2001,  the Local  Limited  Partnerships  paid  approximately  $128,000  and
$162,000,  respectively.  The  accumulated  fees  owed to NHP are  approximately
$222,000 at December 31, 2002.

During the years ended December 31, 2002 and 2001, the General Partner  advanced
approximately  $1,000 and  $39,000 to one and four Local  Limited  Partnerships,
respectively,  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 the year
ended December 31, 2002, two Local Limited  Partnership made principal  payments
to the General Partners of approximately $43,000. During the year ended December
31,  2001,  three Local  Limited  Partnerships  made  principal  payments to the
General  Partner  of  approximately  $351,000  and  approximately  $180,000  was
forgiven.  At December 31, 2002, the balance owed to the General  Partner by the
Local Limited Partnerships was approximately $89,000, including accrued interest
of approximately $19,000.  Interest on these advances is charged at a rate equal
to the Chase Manhattan Bank prime interest rate plus 2% or 6.25% at December 31,
2002.

During the years ended  December 31, 2002 and 2001, no advances were made by the
Partnership  to the Local  Limited  Partnerships.  Repayment  of an  advance  of
approximately  $6,000 and accrued interest of approximately  $3,000 was received
from one Local  Limited  Partnership  during the year ended  December  31, 2002.
Accrued  interest of  approximately  $15,000 was received from one Local Limited
Partnership  during the year ended  December 31, 2001. At December 31, 2002, the
Partnership's working capital advances to Local Limited Partnerships amounted to
approximately  $78,000.  Accrued interest on the  Partnership's  working capital
advances to Local Limited  Partnerships was  approximately  $103,000 at December
31, 2002.  Interest is charged at the Chase Manhattan Bank rate of prime plus 2%
or 6.25% at December 31, 2002.

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. 144 "Accounting for the
Impairment or Disposal of Long-Lived  Assets"  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 the year ended December 31, 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. No impairment losses
were recorded during the year ended December 31, 2002.

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, 2002. Should a Local
Limited  Partnership  be forced to  dispose of any of its  properties,  it could
incur a loss.

10. RELATED-PARTY TRANSACTIONS

An affiliate of the General  Partner,  NHP Management  Company  ("NHPMC") is the
project  management agent for the projects operated by four of the Local Limited
Partnerships.  NHPMC and other affiliates of NCHP earned approximately  $344,000
and $398,000 from the Local Limited Partnerships for management fees provided to
the Local  Limited  Partnerships  during the years ended  December  31, 2002 and
2001,  respectively.  During the year ended  December 31,  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 year
additions to fixed assets.  This fee is payable from surplus  cash.  This fee of
approximately  $10,000 and $72,000  for the years  ended  December  31, 2002 and
2001,  respectively,  has  been  capitalized  as part of  fixed  assets  for the
respective Local Limited Partnership.

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,  2002 and 2001 were  approximately
$490,000 and $594,000, 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  the year  ended  December  31,  2002 and 2001,  the  affiliate  received
approximately   $61,000  and   $65,000,   respectively,   for  these   services.
Additionally, in 2002 and 2001, approximately $15,000 was paid to this affiliate
for accounting services and approximately $13,000 and $10,000, respectively, was
paid to another affiliate for painting services.

During the year ended  December  31, 2002,  the General  Partner was entitled to
reimbursement of accountable  administrative  expenses of approximately  $39,000
from one Local Limited Partnership. There were no such reimbursements during the
year ended December 31, 2001.

11. GOING CONCERN

Certain  of the  Local  Limited  Partnership's  notes  payable  are  past due at
December  31,  2002,  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 the year ended December 31, 2002,  Northgate Village Limited  Partnership
entered into a sales agreement with an unaffiliated  third party for the sale of
Northgate Village Apartments.  The closing occurred on December 16, 2002, with a
sale price of $3,500,000.  Net proceeds of approximately $3,389,000 were used to
repay the mortgage  encumbering  the  property  and the holder  ("AIMCO") of the
Northgate  Village note  received  payment of  approximately  $2,131,000.  It is
expected that  additional  payments will be made in 2003 on the note,  which was
secured by the Partnership's interest in the Local Limited Partnership, and that
AIMCO will forgive the remaining unpaid balance.  The Local Limited  Partnership
recognized a gain on the sale of approximately $1,215,000,  which is included in
gain from sale of  discontinued  operations,  and a gain on debt  forgiveness of
approximately $100,000, which is included in gain from discontinued operations.

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 year. The specific impact of
the tax  consequences is dependent upon each specific  partner's  individual tax
situation.

During the year ended December 31, 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,  which is  included  in gain from sale of  discontinued
operations,  and a gain on debt forgiveness of approximately $2,656,000 in 2001,
which is included in gain from discontinued operations.

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.  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.

14. SUBSEQUENT EVENTS

On  January  3,  2003,  Forest  Green  Limited  Partnership  sold  Forest  Green
Apartments to an unaffiliated  third party for a gross sale price of $1,725,000.
The Local  Limited  Partnership  used a portion of the proceeds from the sale of
the  property to pay off the debt  encumbering  the  property  of  approximately
$720,000.

On January  3, 2003,  Village  Green  Limited  Partnership  sold  Village  Green
Apartments to an unaffiliated  third party for a gross sale price of $1,725,000.
The Local  Limited  Partnership  used a portion of the proceeds from the sale of
the  property to pay off the debt  encumbering  the  property  of  approximately
$522,000.