UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10QSB

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

For the quarterly period ended September 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

                                     September 30,   December 31,
                                         2002            2001

Cash and cash equivalents            $ 1,387,269     $   179,382
Investments in and advances to
 Local Limited Partnerships
 accounted for on the equity method    9,861,567       9,690,364

Total Assets                         $11,248,836     $ 9,869,746


LIABILITIES AND PARTNERS' CAPITAL


Accounts payable                     $    11,180     $    25,180
Distribution payable                       2,096           2,096
                                          13,276          27,276

Partners' Capital:
 General Partner - 115 Partnership
 Units authorized, issued and
 Outstanding                             112,355          98,425

 Limited Partners - 11,394
 Partnership units
 authorized, issued
 and outstanding                      11,123,205       9,744,045
                                      11,235,560       9,842,470

Total Liabilities and
 Partners' Capital                   $11,248,836     $ 9,869,746



Unaudited.  See accompanying notes.



CAPITALIZATION AND PARTNERS' CAPITAL

URBAN IMPROVEMENT FUND LIMITED - 1974
(A Limited Partnership)



                                 September 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 nine-month
 period ended
 September 30, 2002                1,393,090                  0
                                    (283,632)        (1,676,722)

Partners' Capital at End
 of Period                       $11,235,560        $ 9,842,470



Unaudited.  See accompanying notes.



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

                   For the Three-Month      For the Nine-month
                      Period Ended             Period Ended
                      September 30,            September 30,
                    2002        2001         2002        2001

Revenues        $   4,676   $       80   $    5,482   $     564

Cost and
 expenses:

Professional
 Fees               6,500        5,000       17,517      15,050

Management fee     14,255       14,255       42,765      42,765

Other expenses        477        2,245        6,372      16,869

Amortization        1,129        1,050        2,135       3,150
                   22,361       22,550       68,789      77,834

Loss before
 equity of
 Local Limited
 Partnerships     (17,685)     (22,470)     (63,307)     (77,270)
Equity in net
 income of Local
 Limited
 Partnerships   1,022,500      (90,000)   1,456,397     (119,423)

Net Income
 (loss)        $1,004,815   $ (112,470)  $1,393,090   $ (196,693)

Allocation of
 net income:

Net income
 (loss)
 allocated
 to General
 Partner       $   10,048   $   (1,116)  $   13,930   $   (1,966)

Net income
 (loss)
 allocated
 to Limited
 Partners         994,767      (111,354)  1,379,160     (194,727)

              $ 1,004,815    $ (112,470) $1,393,090   $ (196,693)

Net income
 (loss)
 allocated
 to Limited
 Partners per
 Limited
 Partner-
 ships
 Unit (11,394
 units out-
 standing at
 September 30,
 2002 and
 2001)       $        87    $      (10)  $      122  $      (17)



Unaudited.  See accompanying notes.

STATEMENTS OF CASH FLOWS

URBAN IMPROVEMENT FUND LIMITED - 1974
(A Limited Partnership)



                       For the Three-Month    For the Nine-month
                          Period Ended           Period Ended
                          September 30,          September 30,
                        2002       2001        2002        2001
CASH FLOWS
 FROM OPERATING
 ACTIVITIES:
Net income
 (loss)        $ 1,004,815  $ (112,470)  $ 1,393,090  $ (196,693)
 Adjustments
 to reconcile
 net income
 to net cash
 used by
 operating
 activities:
Amortization
 of initial
 and rent-up
 fees                1,129       1,050        2,135        3,150
Equity in net
 (income)
 loss of
 local limited
 partnerships   (1,022,500)     90,000   (1,456,397)     119,423
Increase
 (decrease) in
 Trade accounts
 Payable and
 Accrued
 management
 fees              (19,255)     17,755      (14,000)      61,847
Total
 adjustments    (1,040,626)    108,805   (1,468,262)     184,420
Net cash
 used by
 operating
 activities        (35,811)     (3,665)     (75,172)     (12,273)

CASH FLOWS
 FROM INVESTING
 ACTIVITIES:
Distribution
 Received        1,272,406           0    1,283,059        7,077
Net advances
 repaid by
 limited
 partnerships            0       3,086            0        3,086
Net cash
 provided by
 investing
 activities      1,272,406       3,086    1,283,059       10,163

NET INCREASE
 (DECREASE) IN
 CASH AND CASH
 EQUIVALENTS     1,236,595        (579)   1,207,887       (2,110)

CASH BALANCE
 AT BEGINNING
 OF PERIOD         150,674      11,060      179,382       12,591

CASH BALANCE
 AT END
 OF PERIOD     $ 1,387,269    $ 10,481  $ 1,387,269    $  10,481




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 September 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
September 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:

                          September 30, 2002    December 31, 2001

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

Distributions                 (4,653,798)           (3,370,740)

Equity in losses               5,224,716             3,768,320

Advances                         166,256               166,256

Unamortized costs
 of acquisitions                 550,935               553,070

                             $ 9,861,567           $ 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 nine months ended
September 30, 2002 and 2001.

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

                      For the Three-Month     For the Nine-month
                         Period Ended           Period Ended
                         September 30,          September 30,
                       2002       2001         2002        2001
Income (loss from
 Investments with
 non-zero investment:
  Norway Housing   $ (322,862) $       0    $(210,662) $       0
  Notre Dame           91,900    (70,000)     235,100    (67,500)
  Capitol Hill        107,056     25,000       87,353     75,000
  Monatiquot
   Village Associates  74,000    (45,000)     272,200   (134,000)
Distributions from
 Zero investments:
  51st and King             0          0            0      7,077
  Norway Housing    1,072,406          0    1,072,406          0

                   $1,022,500  $ (90,000)  $1,456,397  $(119,423)

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

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 September 30, 2002.


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 30, 2002        /s/Michael Fulbright
                                (Signature)
                       By:  Michael Fulbright, Secretary





Date  October 30, 2002       /s/John M. Orehek
                                (Signature)
                       By: John M. Orehek, Senior Vice President