UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-QSB

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

For the quarterly period ended June 30, 2002

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 small business issuer (Issuer) 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)

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


Indicate by check mark whether the issuer (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

                                        June 30,    December 31,
                                          2002           2001

Cash and cash equivalents            $   150,674     $   179,382
 Investments in and advances
  to Local Limited Partnerships
  accounted for on the equity
  method                              10,112,602      9,690,364

Total Assets                         $10,263,276    $ 9,869,746


LIABILITIES AND PARTNERS' CAPITAL


Accounts payable                     $    16,180    $    25,180
Management fee payable                    14,255              0
Distribution payable                       2,096          2,096
                                          32,531         27,276

Partners' Capital:
 General Partner - 115 Partnership
  units authorized, issued and
  outstanding                            102,307         98,425

 Limited Partners - 11,394
  Partnership units
  authorized, issued and
  outstanding                         10,128,438      9,744,045
                                      10,230,745      9,842,470

Total Liabilities and
  Partners' Capital                  $10,263,276    $ 9,869,746





Unaudited.  See accompanying notes.


CAPITALIZATION AND PARTNERS' CAPITAL

URBAN IMPROVEMENT FUND LIMITED - 1974
(A Limited Partnership)



                                          June 30,      December 31,
                                            2002           2001
General Partner Interest -
  115 Partnership units issued
  and outstanding                      $   115,192   $   115,192

Limited Partners' Interest -
  11,394 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               (2,681,501)    (2,681,501)

Accumulated earnings through
  December 31, 2001                      2,319,818      2,319,818

Income for six-month period
  Ended June 30, 2002                      388,275              0
                                        (1,288,447)    (1,676,722)

Partners' Capital at End of Period     $10,230,745    $ 9,842,470








Unaudited.  See accompanying notes.

STATEMENTS OF INCOME
URBAN IMPROVEMENT FUND LIMITED - 1974
(A Limited Partnership)

                       For the Three-Month   For the Six-Month
                          Period Ended          Period Ended
                            June 30,               June 30,
                        2002        2001        2002        2001

Revenues             $     299   $       45   $      807  $     485

Cost and expenses:

Professional fees        5,762        5,000       11,017     10,050

Management fee          14,255       14,255       28,510     28,510

Other expenses           5,089       11,851        5,896     14,624

Amortization               503        1,050        1,006      2,100
                        25,609       32,156       46,429     55,284

Loss before equity
 of Local Limited
 Partnerships          (25,310)     (32,111)     (45,622)    (54,799)
Equity in net income
 of Local Limited
 Partnerships          191,800      (41,223)     433,897     (29,423)

Net Income (loss)   $ (166,490)  $  (73,334)  $  388,275  $  (84,222)

Allocation of net
 income:

Net income (loss)
 Allocated to General
 Partner            $       16   $      (73)  $       38  $      (84)

Net income (loss)
 Allocated to
 Limited Partners      166,474      (73,261)     388,237     (84,138)

                   $   166,490   $  (73,334)  $  388,275  $  (84,222)

Net income (loss)
 Allocated to Limited
 Partners per Limited
 Partnerships Unit
 (11,394 units out-
 standing at June 30,
 2002 and 2001)    $         1   $       (7)  $        3  $       (8)





Unaudited.  See accompanying notes.

STATEMENTS OF CASH FLOWS

URBAN IMPROVEMENT FUND LIMITED - 1974
(A Limited Partnership)



                       For the Three-Month   For the Six-Month
                          Period Ended          Period Ended
                            June 30,               June 30,
                        2002        2001        2002        2001

CASH FLOWS FROM
 OPERATING
 ACTIVITIES:
  Net income
 (loss)             $  166,490   $  (73,334)   $ 388,275   $  (84,222)
  Adjustments to
  Reconcile net
  income to net
  cash used by
  operating
  activities:
  Amortization of
  Initial and rent-
  up fees                   503       1,050       1,006         2,100
  Equity in net
  income of local
  limited partner-
  ships                (191,800)     41,223    (433,897)       29,423
  Increase (decrease)
  In Trade accounts
  Payable and accrued
  Management fees         4,999      30,335       5,255       44,091
  Total adjustments     186,298      72,608    (427,636)      75,614
    Net cash used
    By operating
    activities          (19,808)       (726)    (39,361)      (8,608)

CASH FLOWS FROM
 INVESTING
 ACTIVITIES:
  Distribution
  Received                    0       7,077      10,653        7,077
    Net cash
    provided by
    investing
    activities                0       7,077      10,653        7,077

NET INCREASE
 (DECREASE) IN
 CASH AND CASH
 EQUIVALENTS            (19,808)      6,351     (28,708)      (1,531)

CASH BALANCE
 AT BEGINNING
 OF PERIOD              170,482       4,709     179,382       12,591

CASH BALANCE
 AT END OF
 PERIOD                $150,674    $ 11,060    $150,674    $  11,060





Unaudited.  See accompanying notes.


NOTES TO SUMMARIZE FINANCIAL INFORMATION

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 - As of June 30, 2002, the Partnership
has investments in nine active real estate limited partnerships
(Local Limited Partnerships).  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.  The
investment account represents the sum of the capital investment and
unamortized cost of acquisition 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 losses have been incurred which equal the cost of the
investment and the unamortized cost of acquisition in a particular
Local Limited Partnership, thus reducing the investment 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 year
received.  Additional advances to a Local Limited Partnership, after
an investment is reduced to zero, are recognized as losses.

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.

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.

Fair Value of Financial Instruments and Use of Estimates

The Partnership estimates that the aggregate fair value of all
financial instruments at March 31, 2002 does not differ materially
from the aggregate carrying values of its financial instruments
recorded in the balance sheet.  These estimates are not necessarily
indicative of the amounts that the Partnership could realize in a
current market exchange.  The preparation of financial statements
requires the use of estimates and assumptions.  Actual results could
differ from those estimates.

Segment Reporting

SFAS No. 131, "Disclosure about Segments of an Enterprise and Related
Information" established standards for the way that public business
enterprises report information about operating segments in annual
financial statements and requires that those enterprises report
selected information about operating segments in interim financial
reports.  It also established standards for related disclosures about
products and services, geographic areas and major customers.  The
Partnership has only one reportable segment.  Due to the very nature
of the Partnership's operations, the General Partner believes that
segment-based disclosures will not result in a more meaningful
presentation than the financial statements as currently presented.

Recent Accounting Pronouncements

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

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 $180,000.  (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.)
In 2001 and 2000, the minimum annual management fee of $57,020 was
earned and recorded as an expense of the Partnership.  The Partnership
will also pay the General Partner a liquidation fee for the sale of
projects.  The liquidation fee is the lesser of (i) ten percent of the
net proceeds to the Partnership from the sale of a project(s) or (ii)
one percent of the sales price plus three percent of the net proceeds
after deducting an amount sufficient to pay long-term capital gains
taxes.
No part of such fee shall accrue or be paid unless:  (i) the Limited
Partners' share of the proceeds has been distributed to them, (ii) the
Limited Partners shall have first received an amount equal to their
invested capital attributable to the project(s) sold, and (iii) the
Limited Partners have received an amount sufficient to pay long-term
capital gains taxes from the sale of the project(s), if any,
calculated at the maximum rate then in effect.

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.  No fees were paid
to PSI during 2001 or 2000.  In addition, as shown in the following
table, PSI has become the General Partner in three of the Local
Limited Partnerships in which the Partnership has or had 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 June 30,
2002, 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 investments in Local Limited Partnerships are
comprised of:

                                  June 30, 2002    December 31, 2001

Capital contributions              $ 8,573,458        $ 8,573,458

Distributions                       (3,381,393)        (3,370,740)

Equity in losses                     4,202,217          3,768,320

Advances                               166,256            166,256

Unamortized costs of acquisitions      552,064            553,070

                                   $10,112,602        $ 9,690,364

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 $180,000 (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 June 30, 2002 and 2001.

The components of the Partnership's equity in income of the Local
Limited Partnerships for the six months ended June 30, 2002 and 2001,
is summarized as follows:

	For the Three-Month	For the Six-Month
	      Period Ended    	     Period Ended
	       June 30,       	       June 30,
	  2002   	   2001  	  2002   	   2001
Income (loss from
 Investments with non-
 zero investment:
  Norway Housing      $  56,100   $       0   $ 112,200   $       0
  Notre Dame             48,500     (70,300)    143,200       2,500
  Capitol Hill                0      25,000     (19,703)     50,000
  Monatiquot
  Village
  Associates             87,200      (3,000)    198,200     (89,000)
Distributions from
 Zero investments:
  51st and King               0       7,077           0       7,077

                      $ 191,800   $ (41,223)  $ 433,897   $ (29,423)

Liquidity

The Partnership's only source of cash flow is from distributions
from its investments in Local Limited Partnerships or the sale or
refinancing of the Local Limited Partnerships.  There are no current
        discussions with potential buyers or properties being actively
marketed.

Seven of the Local Limited Partnerships have regulatory agreements
which restrict distributions to the computation of surplus cash.  The
computation of surplus cash is calculated by subtracting accounts
payable and accrued expenses from cash on hand at the end of the
year.  Monatiquot Village Associates and Notre Dame Apartments
have no restriction on distributions and their General Partner is an
affiliate of the General Partner of the Issuer.

The distributions in 2001 were $294,562.  The General Partner
anticipates it will receive adequate distributions from the Local
Limited Partnerships to maintain operations.

There is no guarantee that the Local Limited Partnerships will
generate sufficient cash flow to distribute to the Partnership amounts
sufficient to repay all advances.  If not repaid by cash flow from
operating, they will most likely be repaid with proceeds from the sale
or refinancing proceeds from the Local Limited Partnerships.

Capital Resources

The General Partner believes that situations may arise where it would
be advantageous to the Partnership to exchange properties in a tax-
free transaction.  The Partnership's basis in its properties has been
reduced through depreciation deductions and other losses to levels
substantially below the amount of debt secured by the properties.
Additionally, the rental properties owned and operated by the Local
Limited Partnerships have typically computed depreciation for
financial reporting purposes using the straight-line method over the
estimated economic useful life of the property.  For income tax
reporting  purposes, depreciation generally has been computed over the
same or shorter periods using accelerated methods.  As a result, the
carrying values of the Partnership's investments in Local Limited
Partnerships are substantially greater for financial reporting
purposes than for income tax reporting purposes.  Upon sale or other
disposition of a property by the Local Limited Partnership, the gain
recognized by the Partnership for income tax reporting purposes may be
substantially greater than the gain recorded for financial reporting
purposes.

Accordingly, if the properties are sold, the Partnership may recognize
taxable gain in excess of the cash available for distribution.  If
sale proceeds are reinvested in a manner which permits the original
sale to be treated as a like-kind exchange, the Partnership can defer
this gain until the new property is sold.  Additionally, the
Partnership will receive the benefit of any cash flow or appreciation
in value of the new property.  If reinvestments are made, it is likely
that the acquired properties will be conventional, multi-family
residential projects.  Notre Dame Apartments and Monatiquot Village
Associates exchanged their real estate in tax-free exchanges.

The partnership has made no material commitments for capital
expenditures.

PART II - OTHER INFORMATION

Item 3 - Change In and Disagreements with Accountants
on Accounting and Financial Disclosure

As of February 8, 2002, Smith & Radigan, Certified Public Accountants,
LLC, the independent accountant previously engaged as the principal
accountant to audit the financial statements of Urban Improvement
Fund Limited - 1972 (the "Registrant," "Issuer" or the "Partnership"),
was terminated.  As of the same date, the firm of Kenneth W. Bryant
Certified Public Accountant was engaged to provide the service for the
Issuer.

The audit reports of Smith & Radigan, Certified Public Accountants,
LLC on the financial statements of the Partnership as of and for the
years ended December 31, 2000 and 1999 did not contain any adverse
opinion or disclaimer of opinion, nor were they qualified or modified
as to uncertainty, audit scope or accounting principles.  Kenneth W.
Bryant was a former partner in Smith & Radigan, Certified Public
Accountants, LLC while they were the principal auditors of the Issuer.
Kenneth W. Bryant has formed a new firm and has been engaged by the
General Partner as the principal auditor of the Issuer.

During the Partnership's two most recent fiscal years and any
subsequent interim period preceding the change, there were no
disagreements with the former accountants on any matter of accounting
principles or practices, financial statement disclosure, or auditing
scope or procedure, which disagreements, if not resolved to the
satisfaction of the former accountants, would have caused it to make
reference to the subject matter of the disagreements in connection
with its report.

The Issuer has provided a copy of this disclosure to the former
accountant, and the Issuer has received from the former accountant,
a letter addressed to the Securities and Exchange Commission stating
whether it agrees with the statements made by the Issuer.  This letter
is filed as an Exhibit to this report.

There have been no disagreements with accountants on any matters of
accounting principles or practices or financial statement disclosure.

Items 1 through 3 not applicable


	SIGNATURES


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


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





Date:  October 3, 2002             /s/Michael Fulbright
                                      (Signature)
                          By:  Michael Fulbright, Secretary





Date:  October 3, 2002             /s/John M. Orehek
                                       (Signature)
                           By: John M. Orehek, Senior Vice President