UNITED STATES

                           SECURITIES AND EXCHANGE COMMISSION

                                Washington, D.C. 20549

                                             FORM 10-Q

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

                       For the quarterly period ended March 31, 1997

                                            OR

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

            For the transition period from _________ to ________.

                          Commission File Number 0-8071

                    URBAN IMPROVEMENT FUND LIMITED 1974        
           (Exact name of registrant as specified in its charter)

               California                                   95-6504946     
         State or other jurisdiction of                  (I.R.S. Employer   
        incorporation or organization                   Identification No.)

     1201 Third Avenue, Suite 5400, Seattle, Washington      98101 3076    
     (Address of principal executive offices)                (ZIP code)    

Registrant's telephone number, including area code:   (206) 622-9900  


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

                           PART I   FINANCIAL INFORMATION

                           Item 1   Financial Statements

                                 BALANCE SHEETS

                       URBAN IMPROVEMENT FUND LIMITED 1974
                              (A Limited Partnership)


                                       ASSETS

                                                 March 31,       December 31, 
                                                   1997              1996

Cash and cash equivalents                       $1,407,126       $1,394,990 
Investments in and advances to 
  Local Limited Partnerships
  accounted for on the equity method             1,212,708        1,161,695 

         Total Assets                           $2,619,834       $2,556,685 



                         LIABILITIES AND PARTNERS' CAPITAL


Accounts payable                               $     3,577      $       47 
Management fee payable                              14,255          28,510 
Distribution payable                                 2,096           2,096 
                                                    19,928          30,653 

Partners' Capital:
  General Partner   115 Partnership units
    authorized, issued and outstanding              25,999          25,260 

  Limited Partners   11,404 Partnership units
    authorized, issued and outstanding           2,573,907       2,500,772 
                                                 2,599,906       2,526,032 

Total Liabilities and Partners' Capital         $2,619,834      $2,556,685 


Unaudited.  See accompanying notes.

                        CAPITALIZATION AND PARTNERS' CAPITAL

                        URBAN IMPROVEMENT FUND LIMITED 1974
                               (A Limited Partnership)


                                               March 31,        December 31, 
                                                 1997               1996
General Partner Interest   115 Partner-
  ship units issued and outstanding         $   115,192        $   115,192 

Limited Partners' Interest   11,404
         Partnership units issued and
         outstanding                         11,404,000         11,404,000 
                                             11,519,192         11,519,192 

Offering Expenses                            (1,315,039)        (1,315,039)

Distributions to Partners                    (1,181,501)        (1,181,501)

Accumulated loss through
  December 31, 1996                          (6,496,620)        (6,496,620)

Income for three month period ended
  March 31, 1997                                 73,874                -0- 

                                             (6,422,746)        (6,496,620)

Partners' Capital at End of Period          $ 2,599,906        $ 2,526,032 

Unaudited.  See accompanying notes.

                              STATEMENTS OF INCOME

                      URBAN IMPROVEMENT FUND LIMITED   1974
                             (A Limited Partnership)
                                                       For the Three-Month
                                                           Period Ended
                                                             March 31,
                                                        1997            1996

Revenues                                             $ 14,089         $ 22,906 

Cost and expenses:

   Professional fees                                    3,577           4,098 

   Management fee                                      14,255          14,255 

   Amortization                                           833             833 

   Other expenses                                           7             -0- 
                                                       18,672          19,186 
Income (loss) before equity in income
  of Local Limited Partnerships                        (4,583)          3,720 
Equity in net income of Local Limited
  Partnerships                                         78,457          53,679 

Net Income                                          $  73,874       $  57,399 

Allocation of net income:

  Net income allocated to General Partner           $     739       $     574 

  Net income allocated to Limited Partners             73,135          56,825 
                                                    $  73,874       $  57,399 

Net income allocated to Limited Partners per 
  Limited Partnerships Unit (11,404 units
  outstanding at March 31, 1997 and 1996)           $       6       $       5 

Unaudited.  See accompanying notes.

                              STATEMENTS OF CASH FLOWS

                       URBAN IMPROVEMENT FUND LIMITED   1974
                               (A Limited Partnership)

                                                       For the Three Month
                                                          Period Ended
                                                             March 31,
                                                      1997               1996

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                       $  73,874         $  57,399 
  Adjustments to reconcile net income to net
    cash used by operating activities:
   Amortization of initial and rent-up fees              833               833 
     Equity in net income of local 
     limited partnerships                            (78,457)          (53,679)
   Increase (decrease) in trade accounts
     payable and accrued management fees             (10,723)            3,577
       Total adjustments                             (88,347)          (49,269)
             Net cash used by operating activities   (14,473)            8,130 

CASH FLOWS FROM INVESTING ACTIVITIES:
         Net advances paid by limited partnerships    26,609           19,594 
             Net cash used by investing activities    26,690           19,594 

NET INCREASE IN CASH AND CASH EQUIVALENTS             12,136           27,724 

CASH BALANCE AT BEGINNING OF PERIOD                1,394,990        1,303,161 

CASH BALANCE AT END OF PERIOD                     $1,407,126       $1,330,885 

Unaudited.  See accompanying notes.

                     NOTES TO SUMMARIZE FINANCIAL INFORMATION
                                   March 31, 1996             

                      URBAN IMPROVEMENT FUND LIMITED   1974
                              (A Limited Partnership)

Note 1   Organization   Urban Improvement Fund Limited (the Partnership) was
formed under the California Uniform Limited Partnership Act on January 13, 1974,
for the principal purpose of investing in other limited partnerships (Local
Limited Partnerships), which own federal and state-assisted housing projects.
The Partnership issued 11,404 units of limited partnership interest pursuant to
a public offering of such units which terminated on December 31, 1974.  The
Partnership also issued 115 units of general partnership interest to
Interfinancial Real Estate Management Company (the General Partner).  

The Urban Improvement Fund Limited 1974 prospectus, dated July 23, 1974,
specified that the General Partner will have at least a one percent interest in
profits, losses and special allocations, and the limited partners will share the
remainder of the interest in profits, losses and special allocations in
proportion to their respective units of limited partnership interests.  It is
the General Partners' intention to allocate, for income tax and financial
reporting purposes, the profits, losses and special allocations in the ratio of
ninety-nine percent to the limited partners and one percent to the General
Partner.

Note 2   Method of accounting   Initial rent-up fees paid by the Partnership to
the General Partner, deducted when paid for income tax purposes, are capitalized
as acquisition costs of the Local Limited Partnerships for financial reporting
purposes.  These costs and other costs of acquisition are amortized using the  
straight-line method over the lives (fifteen to forty years) of the Local
Limited Partnership Properties.  Amortization is discontinued when the
investment is reduced to zero.

Repayment of advances and cash distributions by the Local Limited Partnerships
after the Partnership investment has been reduced to zero are recognized as
income by the Partnership in the period received.  Additional advances to Local
Limited Partnership after an investment is reduced to zero are recognized as
losses in the period paid.

The unaudited interim financial statements furnished in this report reflect all
adjustments which are, in the opinion of management, necessary to a fair
statement of the results for the interim periods presented.  All such
adjustments are of a normal recurring nature.

Taxes on Income

No provision for taxes on income is required since all taxable income or loss
of the Partnership is allocated to the partners for inclusion in their
respective tax returns.

Cash Equivalents

Marketable securities that are highly liquid and have maturities of three
months or less at the date of purchase are classified as cash equivalents.

Management of Urban Improvement Fund Limited 1974

Under the terms of the Limited Partnership Agreement, the Partnership is
required to pay the General Partner an annual management fee equal to one-
quarter of one percent of invested assets or $146,065 (the fee will not be more
than fifty percent of the Partnership's annual net cash flow, as defined,
subject to an annual minimum of $57,020).  The Partnership will also pay the
General Partner a liquidation fee for the sale of projects.

The General Partner of the Partnership is a corporation in which Paul H. Pfleger
owns a majority interest.  Partnership Services, Inc. (PSI), another corporation
in which Paul H. Pfleger is a majority shareholder, has contracted with the
General Partner and the Partnership to provide certain management and other
services to any projects in which the Partnership has an interest.  In addition,
as shown in the following table, PSI has become the General Partner in two of
the Local Limited Partnerships in which the Partnership has investments: 

                                                     Date PSI Became
    Local Limited Partnership                        General Partner

     Notre Dame Apartments                           March 1977
     Capitol Hill Associates                         December 1978

Note 3   Investments in Local Limited Partnerships   As of March 31, 1997 and
1996, the Partnership has investments in nine active real estate Limited
Partnerships (Local Limited Partnerships), which are accounted for on the equity
method.  The investment account represents the sum of the capital investment and
unamortized costs of acquisitions less the Partnership's share in losses since
the date of acquisition.  The Partnership discontinues recognizing losses and
amortizing cost of acquisition under the equity method when the investment in a
particular Local Limited Partnership is reduced to zero unless the Partnership
intends to commit additional funds to the Local Limited Partnership.

The Partnership has an investment in one Limited Partnership that sold its real
estate during 1984.  This Partnership (Elk Grove Elderly) holds a note
receivable for a portion of the sales proceeds.  The investments in Local
Limited Partnerships are comprised of:

                                      March 31, 1997        December 31, 1996

Capital contributions                   $ 7,280,364            $ 7,280,364
 
Distributions                            (4,332,806)            (4,332,804)

Equity in losses                         (2,798,939)            (2,877,396)

Advances                                    155,899                182,509

Unamortized costs of acquisitions           908,190                909,022

                                        $ 1,212,708            $ 1,161,695



                  Item 2   Management's Discussion and Analysis of
                   Financial Condition and Results of Operations

The Partnership has followed the practice of investing available funds not used
in the purchase of properties or in operations into short-term investments. 
Interest income resulted from such short-term investments.  The Partnership is
dependent upon interest earned and the distributions and repayment of advances
from Local Limited Partners for cash flow.

Under the terms of the Limited Partnership Agreement, the Partnership is
required to pay the General Partner an annual management fee equal to  one-
quarter of one percent of invested assets or $146,065 (the fee will not be more
than fifty percent of the Partnership's annual net cash flow as defined, subject
to an annual minimum of $57,020).  The Partnership recorded management fee
expense of $14,255 for the three months ended March 31, 1997 and 1996.

The components of the Partnership's equity in income of the Local Limited
Partnerships for March 31, 1997 and 1996, is summarized as follows:

                                                    For the Three Month
                                                       Period Ended
                                                        March 31,      
                                                      1997          1996

Income from investments with non-zero investment:
    Notre Dame                                    $ 51,848        $ 33,808

Repayment from partnerships with zero investment:
    Capitol Hill                                    26,609          19,871

                                                  $ 78,457        $ 53,679

                                PART II   OTHER INFORMATION

Items 1 through 5 not applicable

Item 6 Exhibits and Reports on Form 8-K

    a) None

    b) The registrant has not filed a report on Form 8-K during the quarter 
ending March 31, 1997.

                                    SIGNATURES


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



URBAN IMPROVEMENT FUND LIMITED   1974
            (Registrant)
By:  Interfinancial Real Estate Management
Company, General Partner




Date 08-26-97
                                                                  
(Signature)
By:  Michael Fulbright, Secretary         



Date 08-26-97
                                                                  
(Signature)
By:  John M. Orehek, Senior Vice President