FORM 10-KSB--ANNUAL OR TRANSITIONAL REPORT
                           UNDER SECTION 13 OR 15(D)

                                  FORM 10-KSB
(Mark One)
[X]ANNUAL REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF
   1934 [No Fee Required]

                  For the fiscal year ended December 31, 1998

[ ]TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
   OF 1934 [No Fee Required]

                   For the transition period from          to

                         Commission file number 0-13530

                    DAVIDSON DIVERSIFIED REAL ESTATE I, L.P.
                 (Name of small business issuer in its charter)

         Delaware                                             62-1181565
(State or other jurisdiction of                            (I.R.S. Employer
incorporation or organization)                            Identification No.)

    55 Beattie Place, P.O. Box 1089
      Greenville, South Carolina                                   29602
(Address of principal executive offices)                        (Zip Code)

                    Issuer's telephone number (864) 239-1000

         Securities registered under Section 12(b) of the Exchange Act:

                                      None

         Securities registered under Section 12(g) of the Exchange Act:

                     Units of Limited Partnership Interest
                                (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 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 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:  $3,035,000

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, 1998.  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






                                     PART I


ITEM 1.  DESCRIPTION OF BUSINESS

Davidson Diversified Real Estate I, L.P. (the "Registrant" or "Partnership") is
a Delaware limited partnership organized in January 1983.  The general partners
of the Partnership are Davidson Diversified Properties, Inc., a Tennessee
corporation ("Managing General Partner"); Diversified Equities, Limited, a
Tennessee limited partnership ("Associate General Partner"); and David W. Talley
("Individual General Partner") (collectively, the "General Partners").  The
Managing General Partner was wholly owned by MAE GP Corporation ("MAE").
Effective February 25, 1998, MAE GP was merged into Insignia Properties Trust
("IPT"), a subsidiary of Apartment Investment and Management Company ("AIMCO").
Thus, the Managing General Partner is now wholly-owned by AIMCO. The Partnership
Agreement provides that the Partnership is to terminate on December 31, 2007
unless terminated prior to such date.

The offering of the Partnership's limited partnership units ("Units") commenced
on November 16, 1983, and terminated on September 14, 1984.  The Partnership
received gross proceeds from the offering of $15,008,000 and net proceeds of
$13,507,200.  Since its initial offering, the Registrant has not received, nor
are limited partners required to make additional capital contributions.

The Partnership's business is to own and operate existing real estate properties
for investment. The Partnership does not engage in any foreign operations nor
derive any income from foreign sources.  All of the net proceeds of the offering
were invested in six properties, four of which have since been sold or
foreclosed upon.  The Partnership continues to own and operate two of the
properties.  See "Item 2. Description of Properties," below for a description of
the Partnership's remaining properties.

The Partnership receives income from its properties and is responsible for
operating expenses, capital improvements and debt service payments under
mortgage obligations secured by the properties.  The Partnership financed its
properties primarily through non-recourse debt.  Therefore, in the event of
default, the lender can generally only look to the subject property for recovery
of amounts due.

The Partnership has no employees.  Management and administrative services are
provided by the Managing General Partner and agents retained by the Managing
General Partner. An affiliate of the Managing General Partner, provided such
management services for the years ended December 31, 1998 and 1997.

Both the income and expenses of operating the properties owned by the
Partnership are subject to factors outside of the Partnership's control, such as
over-supply of similar properties resulting from over-building, increases in
unemployment or population shifts, reduced availability of permanent mortgage
funds, changes in zoning laws, or changes in patterns or needs of users.  In
addition, there are risks inherent in owning and operating residential
properties because such properties are susceptible to the impact of economic and
other conditions outside of the control of the Partnership.

There have been, and it is possible there may be other, Federal, state and local
legislation and regulations enacted relating to the protection of the
environment. The Partnership is unable to predict the extent, if any, to which
such new legislation or regulations might occur and the degree to which such
existing or new legislation or regulations might adversely affect the properties
owned by the Partnership.

The Partnership monitors its properties for evidence of pollutants, toxins and
other dangerous substances, including the presence of asbestos.  In certain
cases, environmental testing has been performed which resulted in no material
adverse conditions or liabilities.  In no case has the Partnership received
notice that it is a potentially responsible party with respect to an
environmental clean up site.

The real estate business in which the Partnership is engaged is highly
competitive. There are other residential properties within the market area of
the Partnership's properties.  The number and quality of competitive properties,
including those which may be managed by an affiliate of the Managing General
Partner, in such market area could have a material effect on the rental market
for the apartments at the Partnership's properties and the rents that may be
charged for such apartments.  While the Managing General Partner and its
affiliates are a significant factor in the United States in the apartment
industry, competition for apartments is local.  In addition, various limited
partnerships have been formed by the Managing General Partner and/or affiliates
to engage in business which may be competitive with the Partnership.

Transfer of Control

Pursuant to a series of transactions which closed on October 1, 1998 and
February 26, 1999, Insignia Financial Group, Inc. and Insignia Properties Trust
merged into Apartment Investment and Management Company, a publicly traded real
estate investment trust, with AIMCO being the surviving corporation (the
"Insignia Merger").  As a result, AIMCO ultimately acquired a 100% ownership
interest in Insignia Properties Trust ("IPT"), the entity which controls the
Managing General Partner.  The Managing General Partner does not believe that
this transaction will have a material effect on the affairs and operations of
the Partnership.

ITEM 2.  DESCRIPTION OF PROPERTIES

The following table sets forth the Partnership's investments in properties:

                        Date of
Property               Purchase     Type of Ownership        Use

Versailles on the Lake 04/05/84  Fee ownership subject    Apartment
  Ft. Wayne, Indiana             to first and second      156 units
                                 mortgages.

Ashley Woods           07/31/84  Fee ownership subject    Apartment
  Cincinnati, Ohio               to first mortgage. (1)   352 units

(1)  Property is held by a Limited Liability Company of which the
     Registrant owns 100%.

SCHEDULE OF PROPERTIES:

Set forth below for each of the Registrant's properties is the gross carrying
value, accumulated depreciation, depreciable life, method of depreciation and
Federal tax basis.


                          Gross

                        Carrying   Accumulated   Useful             Federal

Property                  Value    Depreciation   Life   Method    Tax Basis

                            (in thousands)                      (in thousands)


Versailles on the Lake   $ 4,529    $ 2,551     5-25 yrs   S/L     $ 1,118


Ashley Woods               9,309      4,665     5-25 yrs   S/L       3,427


                         $13,838    $ 7,216                        $ 4,545


See "Note A" of the consolidated financial statements included in "Item 7.
Financial Statements" for a description of the Partnership's depreciation
policy.

SCHEDULE OF PROPERTY INDEBTEDNESS:

The following table sets forth certain information relating to the loans
encumbering the Registrant's properties.


                         Principal                                  Principal

                         Balance At   Stated                         Balance

                        December 31, Interest  Period   Maturity      Due At

Property                    1998       Rate   Amortized   Date     Maturity (2)

                       (in thousands)                             (in thousands)

Versailles on the Lake

  1st mortgage           $ 2,448       7.60%  21.42 yrs 11/15/02    $ 2,071

  2nd mortgage                88       7.60%     (1)    11/15/02         88


Ashley Woods               7,923       7.29%   30 yrs   12/01/04      7,334


                          10,459                                     $9,493

Less unamortized

  discounts                  (92)


Total                    $10,367


(1)  The loan requires interest only payments.

(2)  See "Item 7. Financial Statements - Note D" for information with respect to
     the Registrant's ability to prepay the loans and other specific details
     about the loans.

The Partnership exercised an interest rate buy-down option for Versailles on the
Lake reducing the stated rate from 8.76% to 7.60% during 1992.  The fee for the
interest rate reduction was approximately $205,000 and is being amortized as a
loan discount using the effective interest method over the term of the loans.
The discount fee is reflected as a reduction of the mortgage notes payable and
increases the effective rate of the debt to 8.76%.

RENTAL RATES AND OCCUPANCY:

Average annual rental rates and occupancy for 1998 and 1997 for each property:


                             Average Annual            Average

                              Rental Rates            Occupancy

                               (per unit)

Property                     1998       1997       1998       1997


Versailles on the Lake    $5,920     $5,847        86%        95%

Ashley Woods               6,577      6,321        89%        90%


The Managing General Partner attributes the decrease in occupancy at Versailles
on the Lake to softening of the local rental market as a result of increased
home purchases and increased competition from surrounding properties.

As noted under "Item 1. Description of Business", the real estate industry is
highly competitive.  All of the properties of the Partnership are subject to
competition from other residential apartment complexes in the area.  The
Managing General Partner believes that all of the properties are adequately
insured. Each property is an apartment complex which leases units for lease
terms of one year or less.  No residential tenant leases 10% or more of the
available space. All of the properties are in good physical condition, subject
to normal depreciation and deterioration as is typical for assets of this type
and age.

REAL ESTATE TAXES AND RATES:

Real estate taxes and rates in 1998 for each property were:

                                      1998           1998

                                      Taxes          Rate

                                 (in thousands)


  Versailles on the Lake             $  84*          9.08%

  Ashley Woods                         171           5.44%


*Amount per 1997 billings.  Taxes are paid a year in arrears.

CAPITAL IMPROVEMENTS:

Versailles on the Lake

During 1998, the Partnership completed approximately $147,000 of capital
improvements at the property, consisting primarily of water heaters, carpet
replacement, appliances and balcony upgrades.  These improvements were funded
from the Partnership's operating cash flow.  Based on a report received from an
independent third party consultant analyzing necessary exterior improvements and
estimates made by the Managing General Partner on interior improvements, it is
estimated that the property requires approximately $427,000 of capital
improvements over the near term.  Capital improvements planned for 1999 consist
of interior and exterior building improvements.  These improvements are budgeted
for, but not limited to, approximately $277,000.

Ashley Woods

During 1998, the Partnership completed approximately $801,000 of capital
improvements at the property, consisting primarily of perimeter fencing, roof
replacement, land improvements, carpet, vinyl and tile replacement, siding and
window replacement.  These improvements were funded from the Partnership's
reserves and operating cash flow.  Based on a report received from an
independent third party consultant analyzing necessary exterior improvements and
estimates made by the Managing General Partner on interior improvements, it is
estimated that the property requires approximately $939,000 of capital
improvements over the near term.  Capital improvements planned for 1999 consist
of interior and exterior building improvements.  These improvements are budgeted
for, but not limited to, approximately $365,000.

The capital improvements planned for 1999 at the Partnership's properties will
be made only to the extent of cash available from operations and Partnership
reserves.

ITEM 3.  LEGAL PROCEEDINGS

In March 1998, several putative unit holders of limited partnership units of the
Partnership commenced an action entitled Rosalie Nuanes, et al. v. Insignia
Financial Group, Inc., et al. in the Superior Court of the State of California
for the County of San Mateo.  The plaintiffs named as defendants, among others,
the Partnership, the Managing General Partner and several of their affiliated
partnerships and corporate entities.  The complaint purports to assert claims on
behalf of a class of limited partners and derivatively on behalf of a number of
limited partnerships (including the Partnership) which are named as nominal
defendants, challenging the acquisition by Insignia and entities which were, at
the time, affiliates of Insignia ("Insignia Affiliates") of interests in certain
general partner entities, past tender offers by Insignia Affiliates as well as a
recently announced agreement between Insignia and AIMCO.  The complaint seeks
monetary damages and equitable relief, including judicial dissolution of the
Partnership. On June 25, 1998, the Managing General Partner filed a motion
seeking dismissal of the action. In lieu of responding to the motion, the
plaintiffs have filed an amended complaint. The Managing General Partner has
filed demurrers to the amended complaint, which were heard during February 1999.
No ruling on such demurrers has been received.  The Managing General Partner
does not anticipate that costs associated with this case, if any, to be material
to the Partnership's overall operations.

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


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

During the quarter ended December 31, 1998, no matters were submitted to a vote
of Unit holders through the solicitation of proxies or otherwise.




                                    PART II


ITEM 5.  MARKET FOR PARTNERSHIP EQUITY AND RELATED PARTNER MATTERS

The Partnership, a publicly held limited partnership, offered and sold 751.84
Limited Partnership Units aggregating $15,008,000.  As of December 31, 1998,
there were 1,029 holders of record owning an aggregate of 751.59 Units.
Affiliates of the Managing General Partner owned 106.90 Units or 14.233% at
December 31, 1998.

A distribution of $900,000 ($1,197.46 per limited partnership unit) was made to
the limited partners during the year ended December 31, 1998.  This distribution
represented a portion of the net proceeds from the mortgage refinancing of
Ashley Woods Apartments during 1997. Distributions from operations for the year
ended December 31, 1997 were approximately $201,000 ($254.13 per limited
partnership unit).  Future cash distributions will depend on the levels of net
cash generated from operations, property sales or refinancings and the
availability of cash reserves.  The Partnership's distribution policy will be
reviewed on a quarterly basis.  There can be no assurance, however, that the
Partnership will generate sufficient funds from operations after required
capital expenditures to permit distributions to its partners in 1999 or
subsequent periods.

ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The matters discussed in this Form 10-KSB contain certain forward-looking
statements and involve risks and uncertainties (including changing market
conditions, competitive and regulatory matters, etc.) detailed in the disclosure
contained in this Form 10-KSB and the other filings with the Securities and
Exchange Commission made by the Registrant from time to time.  The discussion of
the Registrant's business and results of operations, including forward-looking
statements pertaining to such matters, does not take into account the effects of
any changes to the Registrant's business and results of operation.  Accordingly,
actual results could differ materially from those projected in the forward-
looking statements as a result of a number of factors, including those
identified herein.

This item should be read in conjunction with the consolidated financial
statements and other items contained elsewhere in this report.

Results of Operations

The Partnership realized a loss of approximately $184,000 for the year ended
December 31, 1998 compared to a loss before extraordinary item of approximately
$27,000 for the year ended December 31, 1997.  The increase in loss for the year
ended December 31, 1998 is primarily due to a slight decrease in total income
coupled with an increase in total expenses.  Total income decreased due to
decreased rental revenue partially offset by increased other income.  Rental
revenue decreased primarily due to increased concession costs at both
properties.  Decreased occupancy at both properties was offset by increased
average rental rates.  Other income increased due to higher average cash
balances during the year due to the refinancing of Ashley Woods in November
1997.

Total expenses increased due to increased operating expenses, property tax
expense and general and administrative expenses.  Partially offsetting these
increases was decreased interest expense.  Operating expenses increased
primarily due to increases in contract exterminating and contract painting costs
at Ashley Woods.  Property tax expense for Ashley Woods increased due to a tax
rate increase.  General and administrative expense increased due primarily to
higher expense reimbursements.  Included in general and administrative expenses
at both December 31, 1998 and 1997, are reimbursements to the Managing General
Partner allowed under the Partnership Agreement associated with its management
of the Partnership.  Costs associated with the quarterly and annual
communications with investors and regulatory agencies and the annual audit
required by the Partnership Agreement are also included.  The reduction in
interest expense was due to the refinancing of Ashley Woods in November 1997.

On November 20, 1997, the Partnership refinanced the debt encumbering Ashley
Woods. The refinancing replaced indebtedness of approximately $5,941,000 with a
new mortgage in the amount of $8,000,000.  The new mortgage carries a stated
interest rate of 7.29% and is amortized over 30 years. Payments of approximately
$55,000 are due on the first day of each month until maturity at which time a
balloon payment of approximately $7,334,000 is due.  Total loan costs related to
the refinancing were approximately $170,000.  As a result of the refinancing,
the Partnership recorded an extraordinary loss in 1997 on early extinguishment
of debt of approximately $145,000, as a result of the payment of prepayment
penalties and the write off of the remaining unamortized loan costs.

As part of the ongoing business plan of the Partnership, the Managing General
Partner monitors the rental market environment of each of its investment
properties to assess the feasibility of increasing rents, maintaining or
increasing occupancy levels and protecting the Partnership from increases in
expenses.  As part of this plan, the Managing General Partner attempts to
protect the Partnership from the burden of inflation-related increases in
expenses by increasing rents and maintaining a high overall occupancy level.
However, due to changing market conditions, which can result in the use of
rental concessions and rental reductions to offset softening market conditions,
there is no guarantee that the Managing General Partner will be able to sustain
such a plan.

Liquidity and Capital Resources

At December 31, 1998 the Partnership had cash and cash equivalents of
approximately $338,000 compared to approximately $1,976,000 at December 31,
1997.  The decrease in cash and cash equivalents is due to approximately
$1,065,000 of cash used in investing activities and approximately $1,074,000 of
cash used in financing activities, which was partially offset by approximately
$501,000 of cash provided by operating activities. Cash used in investing
activities consisted primarily of property improvements and replacements and to
a lesser extent, net deposits to escrow accounts maintained by the mortgage
lender.  Cash used in financing activities consisted primarily of partner
distributions and, to a lesser extent, of payments of principal made on the
mortgages encumbering the Registrant's properties and additional loan costs paid
for the refinancing at Ashley Woods.  The Registrant invests its working capital
reserves in a money market account.

The sufficiency of existing liquid assets to meet future liquidity and capital
expenditure requirements is directly related to the level of capital
expenditures required at the properties to adequately maintain the physical
assets and other operating needs of the Registrant and to comply with Federal,
state, and local legal and regulatory requirements.  The Registrant has
budgeted, but is not limited to, approximately $ 642,000 in capital improvements
for all of the Registrant's properties in 1999. Budgeted capital improvements at
Versailles on the Lake include interior and exterior building improvements.
Budgeted capital improvements at Ashley Woods include interior and exterior
building improvements.  The capital expenditures will be incurred only if cash
is available from operations or from Partnership reserves.  To the extent that
such budgeted capital improvements are completed, the Registrant's distributable
cash flow, if any, may be adversely affected at least in the short term.

The Registrant's current assets are thought to be sufficient for any near-term
needs (exclusive of capital improvements) of the Registrant.  The mortgage
indebtedness of approximately $10,367,000, net of discount, is amortized over
periods ranging from approximately 21 to 30 years with balloon payments due in
2002 and 2004.  The Managing General Partner will attempt to refinance such
indebtedness and/or sell the properties prior to such maturity date.  If the
property cannot be refinanced or sold for a sufficient amount, the Registrant
will risk losing such property through foreclosure.

A cash distribution of $900,000 was made during the year ended December 31,
1998.  This distribution represented a portion of the net proceeds from the
mortgage refinancing of Ashley Woods.  Distributions from operations of
approximately $201,000 were made during the year ended December 31, 1997.  The
Partnership's distribution policy will be reviewed on a quarterly basis.  There
can be no assurance, however, that the Partnership will generate sufficient
funds from operations after required capital improvements to permit
distributions to its partners in 1999 or subsequent periods.

Year 2000 Compliance

General Description of the Year 2000 Issue and the Nature and Effects of the
Year 2000 on Information Technology (IT) and Non-IT Systems

The Year 2000 issue is the result of computer programs being written using two
digits rather than four digits to define the applicable year.  The Partnership
is dependent upon the Managing General Partner and its affiliates for management
and administrative services ("Managing Agent").  Any of the computer programs or
hardware that have date-sensitive software or embedded chips may recognize a
date using "00" as the year 1900 rather than the year 2000.  This could result
in a system failure or miscalculations causing disruptions of operations,
including, among other things, a temporary inability to process transactions,
send invoices, or engage in similar normal business activities.

Over the past two years, the Managing Agent has determined that it will be
required to modify or replace significant portions of its software and certain
hardware so that those systems will properly utilize dates beyond December 31,
1999.  The Managing Agent presently believes that with modifications or
replacements of existing software and certain hardware, the Year 2000 issue can
be mitigated.  However, if such modifications and replacements are not made or
not completed in time, the Year 2000 issue could have a material impact on the
operations of the Partnership.

The Managing Agent's plan to resolve Year 2000 issues involves four Phases:
assessment, remediation, testing, and implementation.  To date, the Managing
Agent has fully completed its assessment of all the information systems that
could be significantly affected by the Year 2000, and has begun the remediation,
testing and implementation phases on both hardware and software systems.
Assessments are continuing in regards to embedded systems.  The status of each
is detailed below.

Status of Progress in Becoming Year 2000 Compliant, Including Timetable for
Completion of Each Remaining Phase

Computer Hardware:

During 1997 and 1998, the Managing Agent identified all of the computer systems
at risk and formulated a plan to repair or replace each of the affected systems.
In August 1998, the mainframe system used by the Managing Agent became fully
functional.  In addition to the mainframe, PC-based network servers and routers
and desktop PCs were analyzed for compliance.  The Managing Agent has begun to
replace each of the non-compliant network connections and desktop PCs and, as of
December 31, 1998, had completed approximately 75% of this effort.

The total cost to the Managing Agent to replace the PC-based network servers,
routers and desktop PCs is expected to be approximately $1.5 million of which
$1.3 million has been incurred to date.  The remaining network connections and
desktop PCs are expected to be upgraded to Year 2000 compliant systems by March
31, 1999.

Computer software:

The Managing Agent utilizes a combination of off-the-shelf, commercially
available software programs as well as custom-written programs that are designed
to fit specific needs.  Both of these types of programs were studied, and
implementation plans written and executed with the intent of repairing or
replacing any non-compliant software programs.

During 1998, the Managing Agent began converting the existing property
management and rent collection systems to its management properties Year 2000
compliant systems.  The estimated additional costs to convert such systems at
all properties, is $200,000, and the implementation and the testing process is
expected to be completed by March 31, 1999.

The final software area is the office software and server operating systems.
The Managing Agent has upgraded all non-compliant office software systems on
each PC and has upgraded 80% of the server operating systems.  The remaining
server operating systems are planned to be upgraded to be Year 2000 compliant by
March 31, 1999.

Operating Equipment:

The Managing Agent has operating equipment, primarily at the property sites,
which needed to be evaluated for Year 2000 compliance.  In September 1997, the
Managing Agent began taking a census and inventory of embedded systems
(including those devices that use time to control systems and machines at
specific properties, for example elevators, heating, ventilating, and air
conditioning systems, security and alarm systems, etc.).

The Managing Agent has chosen to focus its attention mainly upon security
systems, elevators, heating, ventilating and air conditioning systems, telephone
systems and switches, and sprinkler systems.  While this area is the most
difficult to fully research adequately, management has not yet found any major
non-compliance issues that put the Managing Agent at risk financially or
operationally.  The Managing Agent intends to have a third-party conduct an
audit of these systems and report their findings by March 31, 1999.

Any of the above operating equipment that has been found to be non-compliant to
date has been replaced or repaired.  To date, these have consisted only of
security systems and phone systems.  As of December 31, 1998 the Managing Agent
has evaluated approximately 86% of the operating equipment for the Year 2000
compliance.

The total cost incurred for all properties managed by the Managing Agent as of
December 31, 1998 to replace or repair the operating equipment was approximately
$400,000.  The Managing Agent estimates the cost to replace or repair any
remaining operating equipment is approximately $325,000, which is expected to be
completed by April 30, 1999.

The Managing Agent continues to have "awareness campaigns" throughout the
organization designed to raise awareness and report any possible compliance
issues regarding operating equipment within our enterprise.

Nature and Level of Importance of Third Parties and Their Exposure to the Year
2000

The Managing Agent continues to conduct surveys of its banking and other vendor
relationships to assess risks regarding their Year 2000 readiness.  The Managing
Agent has banking relationships with three major financial institutions, all of
which have indicated their compliance efforts will be complete before May 1999.
The Managing Agent has updated data transmission standards with two of the three
financial institutions.  The Managing Agent's contingency plan in this regard is
to move accounts from any institution that cannot be certified Year 2000
compliant by June 1, 1999.

The Partnership does not rely heavily on any single vendor for goods and
services, and does not have significant suppliers and subcontractors who share
information systems (external agent).  To date the Partnership is not aware of
any external agent with a Year 2000 compliance issue that would materially
impact the Partnership's results of operations, liquidity, or capital resources.
However, the Partnership has no means of ensuring that external agents will be
Year 2000 compliant.

The Managing Agent does not believe that the inability of external agents to
complete their Year 2000 remediation process in a timely manner will have a
material impact on the financial position or results of operations of the
Partnership.  However, the effect of non-compliance by external agents is not
readily determinable.

Costs to Address Year 2000

The total cost of the Year 2000 project to the Managing Agent is estimated at
$3.5 million and is being funded from operating cash flows.  To date, the
Managing Agent has incurred approximately $2.8 million ($0.6 million expensed
and $2.2 million capitalized for new systems and equipment) related to all
phases of the Year 2000 project.  Of the total remaining project costs,
approximately $0.5 million is attributable to the purchase of new software and
operating equipment, which will be capitalized.  The remaining $0.2 million
relates to repair of hardware and software and will be expensed as incurred.
The Partnership's portion of these costs are not material.

Risks Associated with the Year 2000

The Managing Agent believes it has an effective program in place to resolve the
Year 2000 issue in a timely manner.  As noted above, the Managing Agent has not
yet completed all necessary phases of the Year 2000 program.  In the event that
the Managing Agent does not complete any additional phases, certain worst case
scenarios could occur.  The worst case scenarios could include elevators,
security and heating, ventilating and air conditioning systems that read
incorrect dates and operate with incorrect schedules (e.g., elevators will
operate on Monday as if it were Sunday). Although such a change would be
annoying to residents, it is not business critical.

In addition, disruptions in the economy generally resulting from Year 2000
issues could also adversely affect the Partnership.  The Partnership could be
subject to litigation for, among other things, computer system failures,
equipment shutdowns or failure to properly date business records.  The amount of
potential liability and lost revenue cannot be reasonably estimated at this
time.

Contingency Plans Associated with the Year 2000

The Managing Agent has contingency plans for certain critical applications and
is working on such plans for others.  These contingency plans involve, among
other actions, manual workarounds and selecting new relationships for such
activities as banking relationships and elevator operating systems.




ITEM 7.  FINANCIAL STATEMENTS


DAVIDSON DIVERSIFIED REAL ESTATE I, L.P.


LIST OF FINANCIAL STATEMENTS



Report of Ernst & Young LLP, Independent Auditors

Consolidated Balance Sheet - December 31, 1998

Consolidated Statements of Operations - Years ended December 31, 1998 and 1997

Consolidated Statement of Changes in Partners' Deficit - Years ended December
  31, 1998 and 1997

Consolidated Statements of Cash Flows - Years ended December 31, 1998 and 1997

Notes to Consolidated Financial Statements








               Report of Ernst & Young LLP, Independent Auditors



The Partners
Davidson Diversified Real Estate I, L.P.


We have audited the accompanying consolidated balance sheet of Davidson
Diversified Real Estate I, L.P. as of December 31, 1998, and the related
consolidated statements of operations, changes in partners' deficit and cash
flows for each of the two years in the period ended December 31, 1998.  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 conducted our audits in accordance with generally accepted auditing
standards. 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 the
Partnership's management, as well as evaluating the overall financial statement
presentation.  We believe that our audits provide a reasonable basis for our
opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the consolidated financial position of Davidson
Diversified Real Estate I, L.P. at December 31, 1998, and the consolidated
results of its operations and its cash flows for each of the two years in the
period ended December 31, 1998, in conformity with generally accepted accounting
principles.


                                                            /S/ERNST & YOUNG LLP


Greenville, South Carolina
March 3, 1999





                    DAVIDSON DIVERSIFIED REAL ESTATE I, L.P.

                           CONSOLIDATED BALANCE SHEET
                        (in thousands, except unit data)

                               December 31, 1998


Assets

  Cash and cash equivalents                                      $   338

  Receivables and deposits                                           195

  Restricted escrows                                                 909

  Other assets                                                       196

  Investment properties (Notes D and G):

    Land                                            $ 1,072

    Buildings and related personal property          12,766

                                                     13,838

    Less accumulated depreciation                    (7,216)       6,622


                                                                 $ 8,260



Liabilities and Partners' Deficit


Liabilities

  Accounts payable                                               $    54

  Tenant security deposit liabilities                                 73

  Accrued property taxes                                             266

  Other liabilities                                                  117

  Due to affiliate (Note C)                                          321

  Mortgage notes payable (Note D)                                 10,367


Partners' Deficit

  General partners'                                 $  (123)

  Limited partners' (751.59 units

    issued and outstanding)                          (2,815)      (2,938)


                                                                 $ 8,260


          See Accompanying Notes to Consolidated Financial Statements




                    DAVIDSON DIVERSIFIED REAL ESTATE I, L.P.

                     CONSOLIDATED STATEMENTS OF OPERATIONS
                        (in thousands, except unit data)



                                                      Years Ended December 31,

                                                          1998       1997

Revenues:

  Rental income                                        $   2,783  $   2,822

  Other income                                               252        217

       Total revenues                                      3,035      3,039


Expenses:

  Operating                                                1,365      1,280

  General and administrative                                 140        112

  Depreciation                                               603        565

  Interest                                                   832        860

  Property taxes                                             279        249

       Total expenses                                      3,219      3,066



Loss before extraordinary item                              (184)       (27)


Extraordinary loss on early extinguishment

  of debt (Note D)                                            --       (145)


Net loss                                               $    (184) $    (172)


Net loss allocated to general partners (5%)            $      (9) $      (9)

Net loss allocated to limited partners (95%)                (175)      (163)


                                                       $    (184) $    (172)


Net loss per limited partnership unit:


Loss before extraordinary item                         $ (232.84) $  (33.59)

Extraordinary loss on early extinguishment of debt            --    (183.28)

Net loss                                               $ (232.84) $ (216.87)


Distributions per limited partner unit                 $1,197.46  $  254.13


          See Accompanying Notes to Consolidated Financial Statements








                    DAVIDSON DIVERSIFIED REAL ESTATE I, L.P.

             CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' DEFICIT
                        (in thousands, except unit data)



                                   Limited

                                 Partnership    General     Limited

                                    Units      Partners    Partners     Total


Original capital contributions     751.84     $     1     $15,008     $15,009


Partners' deficit at

 December 31, 1996                 751.59     $   (95)    $(1,386)    $(1,481)


Distribution to partners               --         (10)       (191)       (201)


Net loss for the year ended


 December 31, 1997                     --          (9)       (163)       (172)


Partners' deficit at

 December 31, 1997                 751.59     $  (114)    $(1,740)    $(1,854)


Distribution to partners               --          --        (900)       (900)


Net loss for the year ended

 December 31, 1998                     --          (9)       (175)       (184)


Partners' deficit at

 December 31, 1998                 751.59     $  (123)    $(2,815)    $(2,938)


          See Accompanying Notes to Consolidated Financial Statements




                    DAVIDSON DIVERSIFIED REAL ESTATE I, L.P.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (in thousands)



                                                        Years Ended December 31,

                                                          1998      1997

Cash flows from operating activities:

  Net loss                                              $  (184)  $  (172)

  Adjustments to reconcile net loss to

    net cash provided by operating activities:

    Depreciation                                            603       565

    Amortization of discounts and loan costs                 54        64

    Loss on disposal                                         49        --

    Extraordinary loss on early extinguishment of debt       --       145

    Change in accounts:

      Receivables and deposits                              (78)      122

      Other assets                                           19        (5)

      Accounts payable                                       22       (13)

      Tenant security deposit liabilities                   (16)       (2)

      Accrued property taxes                                 16         9

      Other liabilities                                      16       (36)


        Net cash provided by operating activities           501       677



Cash flows from investing activities:

  Property improvements and replacements                   (948)     (308)

  Net deposits to restricted escrows                       (117)     (563)


        Net cash used in investing activities            (1,065)     (871)


Cash flows from financing activities:

  Payments on mortgage notes payable                       (158)     (111)

  Repayment of mortgage note payable                         --    (5,941)

  Proceeds from refinancing                                  --     8,000

  Payment of loan costs                                     (16)     (154)

  Distributions to partners                                (900)     (201)

  Debt extinguishment costs                                  --       (60)


         Net cash (used in) provided by financing

           activities                                    (1,074)    1,533


Net (decrease) increase in cash and

  cash equivalents                                       (1,638)    1,339


Cash and cash equivalents at beginning of year            1,976       637


Cash and cash equivalents at end of year                $   338   $ 1,976


Supplemental disclosure of cash flow information:

  Cash paid for interest                                $   777   $   798


          See Accompanying Notes to Consolidated Financial Statements





                    DAVIDSON DIVERSIFIED REAL ESTATE I, L.P.

                   Notes to Consolidated Financial Statements

                               December 31, 1998


NOTE A - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Organization:  Davidson Diversified Real Estate I, L.P. (the "Partnership" or
"Registrant") is a Delaware limited partnership organized on January 14, 1983,
to acquire and operate residential real estate properties.  As of December 31,
1998, the Partnership operates two residential properties located in Cincinnati,
Ohio and Ft. Wayne, Indiana.  The Partnership's managing general partner is
Davidson Diversified Properties, Inc., (the "Managing General Partner").  The
Managing General Partner is a subsidiary of Apartment Investment and Management
Company ("AIMCO"), (See "Note B - Transfer of Control").  The directors and
officers of the Managing General Partner also serve as executive officers of
AIMCO.  The Partnership Agreement provides that the Partnership is to terminate
on December 31, 2007 unless terminated prior to such date.

Principles of Consolidation:  During the third quarter of 1997, Ashley Woods
Associates L.P. was restructured into a limited liability company known as
Ashley Woods L.L.C. ("Ashley Woods"). Davidson Diversified Real Estate I owns
100% of the new entity.  As a result, the Partnership consolidates its interest
in Ashley Woods whereby all accounts of Ashley Woods are included in the
consolidated financial statements of the Partnership with intercompany accounts
being eliminated.

Allocations to Partners:  Net earnings (loss) of the Partnership and taxable
income (loss) are allocated 95% to the limited partners and 5% to the general
partners. Distributions of available cash (cash flow) are allocated among the
limited partners and the general partners in accordance with the agreement of
limited partnership.

Allocation of net income for tax purposes, arising from the occurrence of a sale
or refinancing shall be allocated as follows:

 First, an amount equal to the aggregate deficit in the capital accounts of the
 general and limited partners having deficits in their capital accounts shall
 be allocated to each such partner in the same ratio as the deficit such
 partner's capital account bears to the aggregate of all such partner's
 deficits.

 Second, to the limited partners in an amount equal to the cash distributed to
 them from a sale or refinancing.

 Third, the remainder, if any, 5% to the general partners and 95% to the
 limited partners.

Distributions of cash from sales or refinancings shall be distributed in the
following order of priority:

 First, to the limited partners, an amount which when added to all prior
 distributions of cash from sales or refinancings shall equal their original
 invested capital, plus an amount which, when added to all prior distributions
 to the limited partners (excluding distributions which are deducted in the
 calculation of adjusted invested capital), will equal 8% per annum cumulative
 noncompounded on their adjusted invested capital, commencing the last day of
 the calendar quarter in which each limited partner is admitted to the
 Partnership through the date of payment.

 Second, to an affiliate of the general partners, an amount equal to its
 subordinated real estate commission, which fee is equal to the lesser of (i)
 3% of the gross sales price of a property or (ii) one-half of the competitive
 commission, as defined, but may only be paid after the limited partners have
 received their priority distributions as discussed in the previous paragraph.

 Third, 85% of the remaining cash from sales or refinancings to the limited
 partners and 15% of the remaining cash from sales or refinancings to the
 general partners.

Depreciation:  Depreciation is provided by the straight-line method over the
estimated lives of the investment properties and related personal property.  For
Federal income tax purposes, the accelerated cost recovery method is used (1)
for real property over 18 years for additions after March 15, 1984, and before
May 9, 1985, and 19 years for additions after May 8, 1985, and before January 1,
1987, and (2) for personal property over 5 years for additions prior to January
1, 1987.  As a result of the Tax Reform Act of 1986, for additions after
December 31, 1986, the modified accelerated cost recovery method is used for
depreciation of (1) real property additions over 27 1/2 years, and (2) personal
property additions over 7 years.

Investment Properties:  Investment properties consist of two apartment complexes
and are stated at cost.  Acquisition fees are capitalized as a cost of real
estate. In accordance with Statement of Financial Accounting Standards ("SFAS")
No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to be Disposed Of", the Partnership records impairment losses on long-
lived assets used in operations when events and circumstances indicate that the
assets might be impaired and the undiscounted cash flows estimated to be
generated by those assets are less than the carrying amounts of those assets.
For the years ended December 31, 1998 and 1997, no adjustments for impairment of
value were necessary.

Cash and Cash Equivalents:  Includes cash on hand and in banks, money market
funds and certificates of deposit with original maturities less than 90 days. At
certain times, the amount of cash deposited at a bank may exceed the limit on
insured deposits.

Tenant Security Deposits:  The Partnership requires security deposits from
lessees for the duration of the lease, and such deposits are included in
receivables and deposits. Deposits are refunded when the tenant vacates,
provided the tenant has not damaged its space and is current on its rental
payments.

Use of Estimates:  The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.

Advertising:  The Partnership expenses the costs of advertising as incurred.
Advertising expense, included in operating expenses, was approximately $45,000
and $42,000 for the years ended December 31, 1998 and 1997, respectively.

Restricted Escrows:

 Reserve Account:  The Partnership has a general reserve account for Versailles
 to cover necessary repairs and replacements of existing improvements, debt
 service, out-of-pocket expenses incurred for ordinary and necessary
 administrative tasks, and payment of real property taxes and insurance
 premiums.  At December 31, 1998, this reserve totaled approximately $175,000.

 Capital Reserve:  At the time of the refinancing of Ashley Woods' mortgage
 note payable during 1997, approximately $626,000 of the proceeds were
 designated for "capital improvements escrows" for certain capital
 improvements. At December 31, 1998 this reserve balance totaled approximately
 $629,000 including interest earned on the balance.

 Replacement Reserve:  At the time of the refinancing of Ashley Woods' mortgage
 note during 1997, a replacement reserve was established.  The Registrant is
 required to deposit approximately $8,000 per month in this reserve account by
 the mortgage lender in order to complete listed capital improvements and
 replacements.  At December 31, 1998 this reserve balance totaled approximately
 $104,000.

Loan Costs:  At December 31, 1998, loan costs of approximately $283,000, net of
accumulated amortization of approximately $92,000, are included in other assets
and are being amortized on a straight-line basis as interest expense over the
term of the respective loans.

Leases:  The Partnership generally leases apartment units for twelve-month terms
or less. The Partnership recognizes income as earned on its leases.  In
addition, it is the Partnership's policy to offer rental concessions during
periods of declining occupancy or in response to heavy competition from other
similar complexes in the area. Concessions are charged against rental income as
incurred.

Fair Value of Financial Instruments: SFAS No. 107, "Disclosures about Derivative
Financial Instruments", as amended by SFAS No. 119 "Disclosures about Derivative
Financial Instruments and Fair Value of Financial Instruments" requires
disclosure of fair value information about financial instruments, whether or not
recognized in the balance sheet, for which it is practicable to estimate fair
value.  Fair value is defined in the SFAS as the amount at which the instruments
could be exchanged in a current transaction between willing parties, other than
in a forced or liquidation sale.  The Partnership believes that the carrying
amount of its financial instruments (except for long term debt) approximates
their fair value due to the short term maturity of these instruments.  The fair
value of the Partnership's long term debt, after discounting the scheduled loan
payments to maturity, approximates its carrying balance.

Reclassifications:  Certain reclassifications have been made to the 1997
balances to conform to the 1998 presentation.

Segment Reporting:  In June 1997, the Financial Accounting Standards Board
issued SFAS No. 131, Disclosure about Segments of an Enterprise and Related
Information ("Statement 131"), which is effective for years beginning after
December 15, 1997.  Statement 131 established standards for the way that public
business enterprises report information about operating segments in annual
financial statements and requires that those enterprises report selected
information about operating segments in interim financial reports.  It also
establishes standards for related disclosures about products and services,
geographic areas, and major customers.  See "Note H" for required disclosure.

NOTE B - TRANSFER OF CONTROL

Pursuant to a series of transactions which closed on October 1, 1998 and
February 26, 1999, Insignia Financial Group, Inc. and Insignia Properties Trust
merged into Apartment Investment and Management Company, a publicly traded real
estate investment trust, with AIMCO being the surviving corporation (the
"Insignia Merger").  As a result, AIMCO ultimately acquired a 100% ownership
interest in Insignia Properties Trust ("IPT"), the entity which controls the
Managing General Partner.  The Managing General Partner does not believe that
this transaction will have a material effect on the affairs and operations of
the Partnership.

NOTE C - DUE TO AFFILIATE

The Partnership is liable to a company affiliated with the Managing General
Partner through common ownership for real estate commissions in the amounts of
$125,000 for Revere Village and $196,000 for Essex which were sold in previous
years.  Payment of the commissions will not be made to the affiliated company
until each limited partner has received a payment equal to their original
invested capital, plus 8% per annum cumulative non-compounded on their adjusted
invested capital commencing on the last day of the calendar quarter in which
each limited partner was admitted to the Partnership through the date of
payment.

NOTE D - MORTGAGE NOTES PAYABLE

The principle terms of mortgage notes payable are as follows:


                        Principal    Monthly                        Principal

                        Balance At   Payment    Stated               Balance

                       December 31, Including  Interest Maturity     Due At

Property                   1998      Interest    Rate     Date      Maturity

                           (in thousands)                        (in thousands)


Versailles on the Lake

 2nd trust deed,

 1st mortgage            $ 2,448    $  22        7.60%  11/15/02     $ 2,071

 2nd mortgage                 88        1(1)     7.60%  11/15/02          88


Ashley Woods               7,923       55       7.29%   12/01/04       7,334

                          10,459    $  78                            $ 9,493

Less unamortized

 discounts                   (92)


Totals                   $10,367



(1)  Interest only payments

On November 20, 1997, the Partnership refinanced the debt encumbering Ashley
Woods. The refinancing replaced indebtedness of approximately $5,941,000 with a
new mortgage in the amount of $8,000,000.  The new mortgage carries a stated
interest rate of 7.29% and is amortized over 30 years.  Payments of
approximately $55,000 are due on the first day of each month until maturity.
Loan costs related to the refinancing were approximately $170,000.  As a result
of the refinancing, the Partnership recorded an extraordinary loss on early
extinguishment of debt of approximately $145,000, due to the payment of
prepayment penalties and the write off of the remaining unamortized loan costs
on the previous mortgage.

The mortgage notes payable are nonrecourse and are secured by the related
property and improvements of the Partnership and by pledge of revenues from the
apartment properties.  The notes require prepayment penalties if repaid prior to
maturity and prohibit resale of the properties subject to existing indebtedness.

The Partnership exercised an interest rate buy-down option for Versailles on the
Lake reducing the stated rate from 8.76% to 7.60% during 1992.  The fee for the
interest rate reduction was approximately $205,000 and is being amortized as a
loan discount using the effective interest method over the term of the loans.
The discount fee is reflected as a reduction of the mortgage notes payable and
increases the effective rate of the debt to 8.76%.

Scheduled principal payments of mortgage notes payable subsequent to December
31, 1998, are as follows (in thousands):

           1999              $  170

           2000                 184

           2001                 198

           2002               2,354

           2003                 110

        Thereafter            7,443

                            $10,459


NOTE E - INCOME TAXES

The Partnership received a ruling from the Internal Revenue Service that it is
to be classified as a partnership for Federal income tax purposes.  Accordingly,
no provision for income taxes is made in the consolidated financial statements
of the Partnership. Taxable income or loss of the Partnership is reported in the
income tax returns of its partners.

The following is a reconciliation of reported net loss and Federal taxable loss
(in thousands, except per unit data):


                                        1998         1997


Net loss as reported                $   (184)    $   (172)

Add (deduct)

  Depreciation differences                30           33

  Unearned income                        (31)          65

  Disposal of fixed assets                49           --

  Miscellaneous                           30          (40)


Federal taxable loss                $   (106)    $   (114)


Federal taxable loss

per limited partnership unit        $(133.92)    $(144.09)


The following is a reconciliation between the Partnership's reported amounts and
Federal tax basis of net assets and liabilities at December 31, 1998 (in
thousands):


Net liabilities as reported                            $(2,938)

Differences in basis of assets and liabilities:

Buildings and Land                                         250

Accumulated depreciation                                (2,327)

Other                                                      483

Net liabilities - Federal tax basis                    $(4,532)


NOTE F - TRANSACTIONS WITH AFFILIATED PARTIES

The Partnership has no employees and is dependent on the Managing General
Partner and its affiliates for the management and administration of all
partnership activities. Affiliates of the Managing General Partner provide
property management and asset management services to the Partnership.  The
Partnership Agreement provides for payments to affiliates for property
management services based on a percentage of revenue and for reimbursement of
certain expenses incurred by affiliates on behalf of the Partnership. The
following payments were paid to affiliates of the Managing General Partner
during each of the years ended December 31, 1998 and 1997 (in thousands):


                                                     1998        1997


Property management fees (included in

 operating expenses)                                 $152        $151


Reimbursement for services of affiliates,

 (included in investment properties,

 general and administrative expenses and

 operating expenses) (1)                              117          80


(1)  Included in reimbursements for services of affiliates is approximately
     $27,000 and $5,000 of construction oversight reimbursements in 1998 and
     1997, respectively.



Additionally, the Partnership paid approximately $4,000 and $33,000 during the
years ended December 31, 1998 and 1997 respectively, to affiliates of the
Managing General Partner for reimbursements of costs related to the refinancing
of Ashley Woods in November 1997.  These costs were capitalized as loan costs
and are being amortized over the term of the loan.

During the years ended December 31, 1998 and 1997, affiliates of the Managing
General Partner were entitled to receive 5% of gross receipts from all of
Registrant's properties as compensation for providing property management
services.  The Registrant paid to such affiliates $152,000 and $151,000 for the
years ended December 31, 1998 and 1997 respectively.

An affiliate of the Managing General Partner received reimbursement of
accountable administrative expenses amounting to approximately $117,000 and
$80,000 for years ended December 31, 1998 and 1997, respectively.

On August 27, 1998, an affiliate of the Managing General Partner (the
"Purchaser") commenced a tender offer for limited partnership interest in the
Partnership.  The Purchaser offered to purchase up to 140 of the outstanding
Units at a purchase price of $4,000 per Unit, net to the seller in cash.  In the
fourth quarter of 1998, the Purchaser closed the tender offer and acquired
89.150 Units of limited partnership interest.  AIMCO currently owns, through its
affiliates, a total of 106.90 limited partnership units or 14.223%.
Consequently, AIMCO could be in a position to significantly influence all voting
decisions with respect to the Registrant.  Under the Partnership Agreement, unit
holders holding a majority of the Units are entitled to take action with respect
to a variety of matters.  When voting on matters, AIMCO would in all likelihood
vote the Units it acquired in a manner favorable to the interest of the Managing
General Partner because of their affiliation with the Managing General Partner.

For the period January 1, 1997 to August 31, 1997, the Partnership insured its
properties under a master policy through an agency affiliated with the Managing
General Partner with an insurer unaffiliated with the Managing General Partner.
An affiliate of the Managing General Partner acquired, in the acquisition of a
business, certain financial obligations from an insurance agency which was later
acquired by the agent who placed the master policy.  The agent assumed the
financial obligations to the affiliate of the Managing General Partner which
receives payments on these obligations from the agent.  The amount of the
Partnership's insurance premiums accruing to the benefit of the affiliate of the
Managing General Partner by virtue of the agent's obligations was not
significant.

On September 26, 1997, an affiliate of the Managing General Partner purchased
Lehman Brothers' Class "D" subordinated bonds of SASCO, 1992 - M1.  These bonds
are secured by 55 multi-family apartment mortgage loan pairs held in Trust,
including Versailles on the Lake Apartments owned by the Partnership.

NOTE G - REAL ESTATE AND ACCUMULATED DEPRECIATION


                                           Initial Cost

                                          To Partnership

                                          (in thousands)


                                                    Buildings        Cost

                                                   and Related   Capitalized

                                                     Personal   Subsequent to

Description                Encumbrances     Land     Property    Acquisition

                          (in thousands)                        (in thousands)


Versailles on the Lake       $ 2,536     $   191   $ 3,847        $   491


Ashley Woods                   7,923         881     5,815          2,613


Totals                       $10,459     $ 1,072   $ 9,662        $ 3,104



<TABLE>
<CAPTION>



                    Gross Amount At Which Carried

                        At December 31, 1998

                            (in thousands)

                               Buildings

                                  And                           Date of

                               Personal           Accumulated  Construc-   Date   Depreciable

Description             Land   Property   Total  Depreciation    tion    Acquired Life-Years

<S>                    <C>     <C>       <C>     <C>           <C>       <C>      <C>

Versailles on the Lake $   191 $ 4,338   $ 4,529   $ 2,551       1970     04/84      5-25

Ashley Woods               881   8,428     9,309     4,665       1971     07/84      5-25


     Totals            $ 1,072 $12,766   $13,838   $ 7,216



</TABLE>

Reconciliation of "Real Estate and Accumulated Depreciation" (in thousands):


                                    Year Ended December 31,

                                      1997           1997

Investment Properties


Balance at beginning of year         $13,002        $12,694

 Property improvements                   948            308

 Property disposal                      (112)            --

Balance at end of year               $13,838        $13,002


Accumulated Depreciation


Balance at beginning of year         $ 6,676        $ 6,111

 Depreciation expense                    603            565

 Property disposal                       (63)            --

Balance at end of year               $ 7 216        $ 6,676


The aggregate cost of the real estate for Federal income tax purposes at
December 31, 1998 and 1997, is approximately $14,088,000 and $13,139,000,
respectively.  The accumulated depreciation taken for Federal income tax
purposes at December 31, 1998 and 1997, is approximately $9,543,000 and
$8,971,000, respectively.

NOTE H - SEGMENT INFORMATION

Description of the types of products and services from which the reportable
segment derives its revenues:  As defined by SFAS No. 131, "Disclosures about
Segments of an Enterprise and Related Information", the Partnership has one
reportable segment: residential properties.  The Partnership's residential
property segment consists of two apartment complexes in two states in the United
States.  The Partnership rents apartment units to people for terms that are
typically twelve months or less.

Measurement of segment profit or loss:  The Partnership evaluates performance
based on net income.  The accounting policies of the reportable segment are the
same as those described in the summary of significant accounting policies.

Factors management used to identify the enterprise's reportable segment:  The
Partnership's reportable segment consists of investment properties that offer
similar products and services.  Although each of the investment properties is
managed separately, they have been aggregated into one segment as they provide
services with similar types of products and customers.

Segment information for the years 1998 and 1997 is shown in the tables below (in
thousands).  The "Other" column includes partnership administration related
items and income and expense not allocated to the reportable segment.

1998
                                       Residential    Other        Totals
Rental income                            $2,783       $  --        $2,783
Other income                                214          38           252
Interest expense                            832          --           832
Depreciation                                603          --           603
General and administrative expense           --         140           140
Segment loss                                (82)       (102)         (184)
Total assets                              7,970         290         8,260
Capital expenditures for investment
properties                                  948          --           948

1997
                                       Residential     Other        Totals
Rental income                            $2,822       $   --       $2,822
Other income                                197           20          217
Interest expense                            860           --          860
Depreciation                                565           --          565
General and administrative expense           --          112          112
Loss on extraordinary item                 (145)          --         (145)
Segment loss                                (80)         (92)        (172)
Total assets                              7,750        1,694        9,444
Capital expenditures for investment
properties                                  308           --          308

NOTE I - LEGAL PROCEEDINGS

In March 1998, several putative unit holders of limited partnership units of the
Partnership commenced an action entitled Rosalie Nuanes, et al. v. Insignia
Financial Group, Inc., et al. in the Superior Court of the State of California
for the County of San Mateo.  The plaintiffs named as defendants, among others,
the Partnership, the Managing General Partner and several of their affiliated
partnerships and corporate entities.  The complaint purports to assert claims on
behalf of a class of limited partners and derivatively on behalf of a number of
limited partnerships (including the Partnership) which are named as nominal
defendants, challenging the acquisition by Insignia and entities which were, at
the time, affiliates of Insignia ("Insignia Affiliates") of interests in certain
general partner entities, past tender offers by Insignia Affiliates as well as a
recently announced agreement between Insignia and AIMCO.  The complaint seeks
monetary damages and equitable relief, including judicial dissolution of the
Partnership. On June 25, 1998, the Managing General Partner filed a motion
seeking dismissal of the action. In lieu of responding to the motion, the
plaintiffs have filed an amended complaint. The Managing General Partner has
filed demurrers to the amended complaint which were heard during February 1999.
No ruling on such demurrers has been received.  The Managing General Partner
does not anticipate that costs associated with this case, if any, to be material
to the Partnership's overall operations.

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

ITEM 8.CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
       FINANCIAL DISCLOSURE

         None


                                    PART III


ITEM 9.DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS, COMPLIANCE
       WITH SECTION 16(A) OF THE EXCHANGE ACT

Davidson Diversified Real Estate I, L.P. (the "Partnership" or "Registrant") has
no officers or directors.  Davidson Diversified Properties, Inc. (the "Managing
General Partner") manages and controls the Partnership and has general
responsibility and authority in all matters affecting its business.

The names of the directors and executive officers of the Managing General
Partner, their ages and the nature of all positions presently held by them are
set forth below. There are no family relationships between or among any officers
and directors.

Name                  Age   Position

Patrick J. Foye       41    Executive Vice President and Director

Timothy R. Garrick    42    Vice President - Accounting and Director

Patrick J. Foye has been Executive Vice President and Director of the Managing
General Partner since October 1, 1998.  Mr. Foye has served as Executive Vice
President of AIMCO since May 1998.  Prior to joining AIMCO, Mr. Foye was a
partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP from 1989 to
1998 and was Managing Partner of the firm's Brussels, Budapest and Moscow
offices from 1992 through 1994.  Mr. Foye is also Deputy Chairman of the Long
Island Power Authority and serves as a member of the New York State
Privatization Council.  He received a B.A. from Fordham College and a J.D. from
Fordham University Law School.

Timothy R. Garrick has served as Vice President-Accounting of AIMCO and Vice
President-Accounting and Director of the Managing General Partner since October
1, 1998.  Prior to that date, Mr. Garrick served as Vice President-Accounting
Services of Insignia Financial Group since June of 1997.  From 1992 until June
of 1997, Mr. Garrick served as Vice President of Partnership Accounting and from
1990 to 1992 as an Asset Manager for Insignia Financial Group.  From 1984 to
1990, Mr. Garrick served in various capacities with U.S. Shelter Corporation.
From 1979 to 1984, Mr. Garrick worked on the audit staff of Ernst & Whinney.
Mr. Garrick received his B.S. Degree from the University of South Carolina and
is a Certified Public Accountant.

ITEM 10. EXECUTIVE COMPENSATION

The Partnership was not required to and did not pay any remuneration to officers
and/or directors of the Managing General Partner during 1998 or 1997.  See "Item
12. Certain Relationships and Related Transactions" below for a discussion of
compensation and reimbursements paid to the general partners and certain
affiliates.

ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

Except as noted below, no person or entity was known by the Registrant to be the
beneficial owners of more than 5% of the Limited Partnership Units of the
Registrant as of December 31, 1998.

                                          Number
Entity                                   of Units      Percentage

Cooper River Properties, LLC              89.15          11.862%

Insignia Properties LP                    17.50           2.328%

Davidson Diversified Properties, Inc.       .25            .033%


Cooper River Properties, L.L.C., Insignia Properties, L.P., and Davidson
Diversified Properties, Inc. are indirectly ultimately owned by AIMCO.  Their
business address is 55 Beattie Place, Greenville, SC 29602.

As of December 31, 1998, no director or officer of the Managing General Partner
owns, nor do the directors or officers as a group own any of the Partnership's
Units.  No such director or officer had any right to acquire beneficial
ownership of additional Units of the Partnership.

On October 1, 1998, Insignia Financial Group, Inc. merged into AIMCO, a real
estate investment trust, whose Class A Common Shares are listed on the New York
Stock Exchange.  As a result of such merger, AIMCO and AIMCO Properties, L.P., a
Deleware limited partnership and the operating partnership of AIMCO ("AIMCO OP")
acquired indirect control of the Managing General Partner.  AIMCO and its
affiliates currently own 14.223% of the partnership interests in the
Partnership.  AIMCO is presently considering whether it will engage in an
exchange offer to acquire additional limited partnership interests in the
Partnership for cash or preferred units or common units of limited partnership
interests in AIMCO OP.  While such an exchange offer is possible, no definite
plans exist as to when or whether to commence such an exchange offer, or as to
the terms of any such exchange offer, and it is possible that none will occur.

A registration statement relating to these securities has been filed with the
Securities and Exchange Commission but has not yet become effective.  These
securities may not be sold nor may offers to buy be accepted prior to the time
the registration statement becomes effective.  This Form 10-KSB shall not
constitute an offer to sell or the solicitation of an offer to buy nor shall
there by any sale of these securities in any state in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such state.

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

The Managing General Partner received a cash distribution of approximately
$10,000 from operations during the fiscal year ended December 31, 1997.  For a
description of the share of cash distributions from operations, if any, to which
the general partners are entitled, reference is made to "Item 7 Financial
Statements - Note A - Allocation of Cash Distributions and Allocation of
Profits, Gain, and Losses".

The Partnership has no employees and is dependent on the Managing General
Partner and its affiliates for the management and administration of all
partnership activities. Affiliates of the Managing General Partner provide
property management and asset management services to the Partnership.  The
Partnership Agreement provides for payments to affiliates for property
management services based on a percentage of revenue and for reimbursement of
certain expenses incurred by affiliates on behalf of the Partnership. The
following payments were paid to affiliates of the Managing General Partner
during each of the years ended December 31, 1998 and 1997 (in thousands):


                                                       1998        1997


Property management fees                               $152        $151

Reimbursement for services of affiliates (1)            117          80


(1)  Included in reimbursements for services of affiliates is approximately
     $27,000 and $5,000 of construction oversight reimbursements in 1998 and
     1997, respectively.

Additionally, the Partnership paid approximately $4,000 and $33,000 during the
years ended December 31, 1998 and 1997 respectively, to affiliates of the
Managing General Partner for reimbursements of costs related to the refinancing
of Ashley Woods in November 1997.  These costs were capitalized as loan costs
and are being amortized over the term of the loan.

During the years ended December 31, 1998 and 1997, affiliates of the Managing
General Partner were entitled to receive 5% of gross receipts from all of
Registrant's properties as compensation for providing property management
services.  The Registrant paid to such affiliates $152,000 and $151,000 for the
years ended December 31, 1998 and 1997 respectively.

An affiliate of the Managing General Partner received reimbursement of
accountable administrative expenses amounting to approximately $117,000 and
$80,000 for years ended December 31, 1998 and 1997, respectively.

On August 27, 1998, an affiliate of the Managing General Partner (the
"Purchaser") commenced a tender offer for limited partnership interest in the
Partnership.  The Purchaser offered to purchase up to 140 of the outstanding
Units at a purchase price of $4,000 per Unit, net to the seller in cash.  In the
fourth quarter of 1998, the Purchaser closed the tender offer and acquired
89.150 Units of limited partnership interest.  AIMCO currently owns, through its
affiliates, a total of 106.90 limited partnership units or 14.223%.
Consequently, AIMCO could be in a position to significantly influence all voting
decisions with respect to the Registrant.  Under the Partnership Agreement, unit
holders holding a majority of the Units are entitled to take action with respect
to a variety of matters.  When voting on matters, AIMCO would in all likelihood
vote the Units it acquired in a manner favorable to the interest of the Managing
General Partner because of their affiliation with the Managing General Partner.

For the period January 1, 1997 to August 31, 1997, the Partnership insured its
properties under a master policy through an agency affiliated with the Managing
General Partner with an insurer unaffiliated with the Managing General Partners.
An affiliate of the Managing General Partner acquired, in the acquisition of a
business, certain financial obligations from an insurance agency which was later
acquired by the agent who placed the master policy.  The agent assumed the
financial obligations to the affiliate of the Managing General Partner which
receives payments on these obligations from the agent.  The amount of the
Partnership's insurance premiums accruing to the benefit of the affiliate of the
Managing General Partner by virtue of the agent's obligations was not
significant.

On September 26, 1997, an affiliate of the Managing General Partner purchased
Lehman Brothers' Class "D" subordinated bonds of SASCO, 1992 - M1.  These bonds
are secured by 55 multi-family apartment mortgage loan pairs held in Trust,
including Versailles on the Lake Apartments owned by the Partnership.

ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K

(a)    Exhibits:

       See Exhibit Index contained herein.

(b)    Reports on Form 8-K filed during the fourth quarter of 1998:

       Current Report on Form 8-K dated on October 1, 1998, and filed on
       October 16, 1998, disclosing change in control of the Partnership from
       Insignia   Financial Group, Inc. to AIMCO.




                                   SIGNATURES


In accordance with Section 13 or 15(d) of the Exchange Act, the Partnership
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.



                         DAVIDSON DIVERSIFIED REAL ESTATE I, L.P.
                         By: Davidson Diversified Properties, Inc.,
                             Its Managing General Partner


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


                         By: /s/ Timothy R. Garrick
                             Timothy R. Garrick
                             Vice President - Accounting


                         Date: March 29, 1999


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


/s/ Patrick J. Foye        Executive Vice President      Date: March 29, 1999
Patrick J. Foye            and Director

/s/ Timothy R. Garrick     Vice President - Accounting   Date: March 29, 1999
Timothy R. Garrick         and Director




                                 EXHIBIT INDEX

Exhibit

2         Agreement and Plan of Merger, dated as of October 1, 1998, by and
          between AIMCO and IPT; incorporated by reference to Exhibit 2.1 filed
          with Registrant's Current Report on Form 8-K dated October 1, 1998.

3A        Partnership Agreement dated January 14, 1983 is incorporated by
          reference to Exhibit A to the Prospectus of the Partnership dated
          November 16, 1983 as filed with the Commission pursuant to Rule 424(b)
          under the Act.

3B        Amendment No. 1 dated January 1, 1986 to the Partnership Agreement is
          incorporated by reference to Exhibit 3B to the Partnership's Annual
          Report on Form 10-K for the fiscal year ended December 31, 1985.

4         Certificate of Limited Partnership dated December 2, 1982 is
          incorporated by reference to Exhibit 4 to the Partnership's Annual
          Report on Form 10-K for the fiscal year ended December 31, 1987.

4A        Certificate of Amendment of Certificate of Limited Partnership dated
          March B4, 1983 is incorporated by reference to Exhibit 4A to the
          Partnership's Annual Report on Form 10-K for the fiscal year ended
          December 31, 1987.

4B        Restated Certificate of Limited Partnership dated June 8, 1983 is
          incorporated by reference to Exhibit 4B to the Partnership's Annual
          Report on Form 10-K for the fiscal year ended December 31, 1987.

4C        Amended and Restated Certificate of Limited Partnership dated January
          1, 1986 is incorporated by reference to Exhibit 4C to the
          Partnership's Annual Report on form 10-K for the fiscal year ended
          December 31, 1987.

10A       Agent's Agreement dated November 1, 1983 between the Partnership and
          Harvey Freeman & Sons, Inc. is incorporated by reference to Exhibit
          10B to the Partnership's Annual Report on Form 10-K for the fiscal
          year ended December 31, 1983.

10B       Agreement Among Agents dated November 1, 1983 by and among Harvey
          Freeman & Sons, Inc., Harvey Freeman & Sons, Inc. of Arkansas, Harvey
          Freeman & Sons, Inc. of Florida, Harvey Freeman & Sons, Inc. of
          Georgia, Harvey Freeman & Sons, Inc. of Indiana, Harvey Freeman &
          Sons, Inc. of Kentucky, Harvey Freeman & Sons, Inc. of Mississippi,
          Harvey Freeman & Sons, Inc. of North Carolina, Harvey Freeman and
          Sons, Inc. of Ohio and Harvey Freeman & Sons, Inc. of South Carolina
          is incorporated by reference to Exhibit 10C to the Partnership's
          Annual Report on Form 10-K for the fiscal year ended December 31,
          1983.

10C       Acquisition and Disposition Services Agreement dated October 3, 1983
          between the Partnership and Criswell Freeman Company is incorporated
          by reference to Exhibit 10D to the Partnership's Annual Report on Form
          10-K for the fiscal year ended December 31, 1983.

10D       Contract for Sale of Real Estate for Versailles on the Lake dated
          March 16, 1984 between Versailles on the Lake Associates, an Illinois
          limited partnership and Tennessee Trust Company, Trustee, is
          incorporated by reference to Exhibit 10(b) to the Partnership's
          Current Report on Form 8-K dated April 4, 1984.

10E       Assignment of Contract for Sale dated April 2, 1984 between Tennessee
          Trust Company, Trustee, and the Partnership (relating to Versailles on
          the Lake Apartments) is incorporated by reference to Exhibit 10L to
          the Partnership's Annual Report on Form 10-K for the fiscal year ended
          December 31, 1984.

10F       Note dated November 19, 1984 executed by the Partnership payable to
          American Fletcher National Bank and Trust Company relating to
          Versailles on the Lake Apartments is incorporated by reference to
          Exhibit 10W to the Partnership's Annual Report on Form 10-K for the
          fiscal year ended December 31, 1985.

10G       Real Estate Mortgage, Assignment of Rents and Security Agreement dated
          November 19, 1984 executed by the Partnership payable to American
          Fletcher National Bank and Trust Company relating to Versailles on the
          Lake is incorporated by reference to Exhibit 10EE to the Partnership's
          Annual Report on Form 10-K for the fiscal year ended December 31,
          1985.

10H       Memorandum of Understanding among SEC Realty Corp., Tennessee
          Properties, L.P., Freeman Mortgage Corporation, J. Richard Freeman, W.
          Criswell Freeman and Jacques-Miller Properties, Inc. is incorporated
          by reference to Exhibit 10BB to the Partnership's Annual Report on
          Form 10-K for the fiscal year ended December 31, 1988.

10I       Partnership Administration and Consultation Agreement among Freeman
          Properties, Inc., Freeman Diversified Properties, Inc., Residual
          Equities Limited and Jacques-Miller Properties, Inc. is incorporated
          by reference to Exhibit 10CC to the Partnership's Annual Report on
          Form 10-K for the fiscal year ended December 31, 1988.

10J       Partnership Agreement of Ashley Woods Associates dated May 16, 1990
          owned 99.9% by the Partnership relating to refinancing of Ashley Woods
          Apartments is incorporated by reference to Exhibit 10EE to the
          Partnership's Annual Report on Form 10-K for the fiscal year ended
          December 31, 1991.

10K       Multifamily Note with Addendum dated June 14, 1990 executed by Ashley
          Woods Associates payable to PW Funding Inc. relating to Ashley Woods
          Apartments is incorporated by reference to Exhibit 10FF to the
          Partnership's Annual Report on Form 10-K for the fiscal year ended
          December 31, 1991.

10L       Multifamily Open-end Mortgage with Rider dated June 14, 1990 executed
          by Ashley Woods Associates in favor of PW Funding Inc. relating to
          Ashley Woods Apartments is incorporated by reference to Exhibit 10GG
          to the Partnership's Annual Report on Form 10-K for the fiscal year
          ended December 31, 1991.

10M       Termination Agreement, dated December 31, 1991 among Jacques-Miller,
          Inc., Jacques-Miller Property Management, Davidson Diversified
          Properties, Inc., and Supar, Inc. is incorporated by reference to
          Exhibit 10HH to the Partnership's Annual Report on Form 10-K for the
          fiscal year ended December 31, 1991.

10N       Assignment of Limited Partnership Interest of Freeman Equities,
          Limited, dated December 31, 1991 between Davidson Diversified
          Properties, Inc. and Insignia Jacques-Miller, L.P. is incorporated by
          reference to Exhibit 10II to the Partnership's Annual Report on Form
          10-K for the fiscal year ended December 31, 1991.

10O       Assignment of General Partner Interests of Freeman Equities, Limited,
          dated December 31, 1991 between Davidson Diversified Properties, Inc.
          and MAE GP Corporation is incorporated by reference to Exhibit 10JJ to
          the Partnership's Annual Report on Form 10-K for the fiscal year ended
          December 31, 1991.

10P       Stock certificate, dated December 31, 1991 showing ownership of 1,000
          shares of Davidson Diversified Properties, Inc. by MAE GP Corporation
          is incorporated by reference to Exhibit 10KK to the Partnership's
          Annual Report on Form 10-K for the fiscal year ended December 31,
          1991.

10Q       Contracts related to refinancing of debt:

          (a)  First Deed of Trust and Security Agreement dated October 28, 1992
          between Davidson Diversified Real Estate I, Limited Partnership and
          First Commonwealth Realty Credit Corporation, a Virginia Corporation,
          securing Versailles on the Lake is incorporated by reference to
          Exhibit 10Q (a) to the Partnership's Annual Report on Form 10-KSB for
          the fiscal year ended December 31, 1992.

          (b)  Second Deed of Trust and Security Agreement dated October 28,
          1992 between Davidson Diversified Real Estate I, Limited Partnership
          and First Commonwealth Realty Credit Corporation, a Virginia
          Corporation, securing Versailles on the Lake is incorporated by
          reference to Exhibit 10Q (b) to the Partnership's Annual Report on
          Form 10-KSB for the fiscal year ended December 31, 1992.

          (c)  First Assignment of Leases and Rents dated October 28, 1992
          between Davidson Diversified Real Estate I, Limited Partnership and
          First Commonwealth Realty Credit Corporation, a Virginia Corporation,
          securing Versailles on the Lake is incorporated by reference to
          Exhibit 10Q (c) to the Partnership's Annual Report on Form 10-KSB for
          the fiscal year ended December 31, 1992.

          (d)  Second Assignment of Leases and Rents dated October 28, 1992
          between Davidson Diversified Real Estate, I Limited Partnership and
          First Commonwealth Realty Credit Corporation, a Virginia Corporation,
          securing Versailles on the Lake is incorporated by reference to
          Exhibit 10Q (d) to the Partnership's Annual Report on Form 10-KSB for
          the fiscal year ended December 31, 1992.

          (e)  First Deed of Trust Note dated October 28, 1992 between Davidson
          Diversified Real Estate I Limited Partnership and First Commonwealth
          Realty Credit Corporation, relating to Versailles on the Lake is
          incorporated by reference to Exhibit 10Q (e) to the Partnership's
          Annual Report on Form 10-KSB for the fiscal year ended December 31,
          1992.

          (f)  Second Deed of Trust Note dated October 28, 1992 between Davidson
          Diversified Real Estate I, Limited Partnership and First Commonwealth
          Realty Credit Corporation relating to Versailles on the Lake is
          incorporated by reference to Exhibit 10Q (f) to the Partnership's
          Annual Report on Form 10-KSB for the fiscal year ended December 31,
          1992.

10R       Promissory Note dated November 20, 1997, by and between Ashley Woods,
          L.L.C., a South Carolina limited liability company, and Lehman
          Brothers Holdings, Inc., a Delaware corporation.

16        Letter from the Partnership's former independent accountant regarding
          its concurrence with the statements made by the Partnership is
          incorporated by reference to the exhibit filed with Form 8-K dated
          September 30, 1992.

27        Financial Data Schedule