**FORM 10-QSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.  20549**

** **(Mark One)

                                       QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)    x                                       OF THE SECURITIES EXCHANGE ACTOF 1934

For the quarterly period endedJuly 31, 2004 

OR

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

_______

For the transition periodfrom ___________to _________________________________________Commission file number__________________________________________________________

**First Hartford Corporation and Subsidiaries**(Address of principal executive offices)(Zip Codes)

(860) 646-6555(Registrant's telephone number, including area code)

  N/A(Former name, former address and former fiscal year,if changed since last report)

Indicate by check mark whether the Company (1) has filedall reports required to be filed by Section 13 or 15 (d) of the SecuritiesExchange Act of 1934 during the preceding 12 months, and (2) has been subjectto such filing requirements for the past 90 days.Yes   x                         No___Amendment_____________________________________________________________________

Amended effective November15, 2002; compliance and phase-in details in Release No. 33-8128 (¶86,724), 67 F.R. 58480Indicate by check markwhether the registrant is an accelerated filer (as defined in Rule 12b-2 of theExchange Act):Yes                  No  x   End of Amendment_______________________________________________________________

Indicate by check markwhether the registrant has filed all documents and reports required to be filedby Sections 12,13 or 15 (d) of the Securities Exchange Act of 1934 subsequentto the distribution of securities under a plan confirmed by a court.Yes   x             No____

APPLICABLE ONLY TO CORPORATE ISSUERS:

            Indicate the number of shares outstanding ofeach of the issuer's classes of common stock, as of the latest practicabledate.  3,089,985 shares of common stock as of July 31, 2004.

1

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**FIRST HARTFORD CORPORATION AND SUBSIDARIES**

**INDEX**

 

| **PART I. **       | ** FINANCIALINFORMATION **                                                                                                                                                                                                      | **PAGE**       |
|-------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|
|                    | ** **                                                                                                                                                                                                                                |           |
| Item 1.                 | FinancialStatements                                                                                                                                                                                                                       |           |
|                    |                                                                                                                                                                                                                                      |           |
|                    | ConsolidatedBalance Sheets -                           July31, 2004 (unaudited) and April 30, 2004 (audited)                     | 3 & 4      |
|                    |                                                                                                                                                                                                                                      |           |
|                    | ConsolidatedStatements of Operations and Comprehensive Loss                                                                                                                                                                               |           |
|                    |                       Forthe Three Months                                                                                   |           |
|                    |                       EndedJuly 31, 2004 and 2003 (unaudited)                                                               | 5              |
|                    |                                                                                                                                                                                                                                      |           |
|                    | ConsolidatedStatements of Cash Flows                                                                                                                                                                                                      |           |
|                    |                       Forthe Three Months                                                                                   |           |
|                    |                       EndedJuly 31, 2004 and 2003 (unaudited)                                                               | 6              |
|                    |                                                                                                                                                                                                                                      |           |
|                    | Notes to Consolidated Financial Statements                                                                                                                                                                                                | 7 - 9          |
|                    |                                                                                                                                                                                                                                      |           |
| Item 2.                 | Management's Discussion and Analysis                                                                                                                                                                                                      | 10 - 12        |
|                    |                                                                                                                                                                                                                                      |           |
| Item 3.                 | Quantitativeand Qualitative Disclosures                                                                                                                                                                                                   |           |
|                    |                                          About Market Risk | 12             |
|                    |                                                                                                                                                                                                                                      |           |
| Item 4.                 | Controls and Procedures                                                                                                                                                                                                                   | 13             |
|                    |                                                                                                                                                                                                                                      |           |
| **PART II  ** | **OTHERINFORMATION**                                                                                                                                                                                                                      |           |
|                    | ** **                                                                                                                                                                                                                                |           |
| Item 1.                 | Legal Proceedings                                                                                                                                                                                                                         | 14             |
|                    |                                                                                                                                                                                                                                      |           |
| Item 2.                 | Changesin Securities, use of Proceeds And Issuer Purchases of                                                                                                                                                                             |           |
|                    | Equity Securities                                                                                                                                                                                                                         | 14             |
|                    |                                                                                                                                                                                                                                      |           |
| Item 3.                 | Defaults Upon Senior Executives                                                                                                                                                                                                           | 14             |
|                    |                                                                                                                                                                                                                                      |           |
| Item 4.                 | Submission of Matters to a Vote Of Security Holders                                                                                                                                                                                       | 15             |
|                    |                                                                                                                                                                                                                                      |           |
| Item 5.                 | Other Information                                                                                                                                                                                                                         | 15             |
|                    |                                                                                                                                                                                                                                      |           |
| Item 6.                 | Exhibits and Reports on Form 8-K                                                                                                                                                                                                          | 17-23          |
|                    |                                                                                                                                                                                                                                      |           |
|                    | Signatures                                                                                                                                                                                                                                | 16,18,20,22,23 |

2

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**FIRST HARTFORD CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS**

**ASSETS**

|   | **July 31, 2004** | **April 30, 2004**   
(unaudited)

(audited)

Real Estate and equipment:
 
Developed properties
$25,204,179

$24,274,133

Equipment and leasehold improvements
       153,883

       120,931

 
25,358,062

24,395,064

Less accumulated depreciation  
    2,099,774

   1,933,189

 
23,258,288

22,461,875

Properties under construction and investment in    undeveloped properties
      952,309

              -0-

 
24,210,597

22,461,875

Cash
1,375,828

1,500,030

Investments in marketable securities
463,674

676,680

Accounts receivable, less allowance for doubtful    accounts of $31,600
473,413

911,901

 
Deposits, escrows, and prepaid and deferred expenses
1,896,701

2,489,014

 
Investment in affiliates
306,377

239,519

 
Due from related parties and affiliates
865,031

966,105

 
Deferred Tax Assets
       900,000

       900,000

 
$30,491,621

$30,145,124
   
=========
=========
 3

The accompanying notes are an integral part of theseconsolidated financial statements

**PART I - FINANCIAL INFORMATIONFIRST HARTFORD CORPORATION AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS**

**Liabilities and Shareholders Deficit**
**July 31, 2004**
**April 30, 2004**

**Liabilities:**

(unaudited)

(audited)

** **

**    **Mortgages, notes payable;

**         **Construction Loans

$6,871,914

$5,563,476

          Mortgages Payable

20,839,978

21,053,453

          Notes Payable -  Other

    1,522,332

    1,586,601

29,234,224

28,203,530

     Accounts Payable

910,490

1,737,212

     Accrued Liabilities

716,809

571,828

     Accrued cost of  derivatives

150,000

179,059

     Other Liabilities

538,325

560,998

     Deferred Income

197,945

78,654

     Due to related parties  and affiliated 

82,559

95,786

     Minority interest

        35,619

         19,179

31,865,971

31,446,246

** **

**Shareholder's Equity  (deficiency):**

** **

**    **Common Stock, $1 par; authorized 6,000,000          Shares; issued 3,322,213 shares, 3,089,985       outstanding

3,322,213

3,322,213

**    **Capital in excess of par

5,182,645

5,182,645

**    **Deficit

(7,542,419)

(7,450,371)

     Unearned stock  compensation

(250,521)

(291,146)

     Accumulated  comprehensive income

      (18,144)

           3,661

** **

693,774

767,002

** **

     Less 232,228 shares of  common stock held in         Treasury, at cost

     2,068,124

     2,068,124

  (1,374,351)

  (1,301,122)

$30,491,621

$30,145,124
   
=========
=========
The accompanying notes are an integral part of theseconsolidated financial statements

4

**FIRST HARTFORD CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS ANDCOMPREHENSIVE LOSS**(Unaudited)

                                                                                    **                                          **
   
** ThreeMonths Ended**
** **

**July  31, 2004**
**July  31, 2003**
(Restated)

**Revenues, Including  Related Party Respectively:**

**    **Sale of real estate

$128,500

$-0-

     Construction

97,889

87,292

     Rental income

1,080,894

363,928

     Management fee income

12,367

15,480

     Gain on derivatives

29,059

0

     Other

80,442

80,948

     Equity in earnings of  affiliates

    129,179

    106,731

1,558,330

654,379

** **

**Costs and Expenses:**

     Cost of sales, real estate

15,304

-0-

     Construction

6,745

6,044

     Operating, selling,  general and administrative

351,935

218,584

     Interest

330,772

192,599

     Depreciation and  amortization

202,207

57,727

     Selling, general and  administrative 

494,674

420,391

     Property taxes

    157,056

       37,995

 1,558,693

     933,340

Loss before discontinued  operation

(363)

(278,961)
**Discontinued Operation**       Gain on operations of shopping  center sold
             -0- 

       45,916
  Net loss before income tax
(363)

(233,045)
                State income tax provision
         4,995

         4,151
     Net loss before minority interest
(5,358)

(237,196)
                Minority interest
     (86,690)

                -0-
  Net loss
(92,048)

(237,196)
           Other comprehensive loss, net of taxes
     (21,805)

               -0-
           Net loss
($113,853)

($237,196)
   
========
========  Net loss per share
(0.04)

(0.08)
     Weighted average number of shares  outstanding
3,089,985

3,089,985

The accompanying notes are an integral part of theseconsolidated financial statements

5

**FIRST HARTFORD CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS**

**                                                                                   **                                **Three Months Ended**

July 31, 2004

July 31, 2003
   
       (Restated)

Cash flows from operating  activities:
      
     Net loss

($92,048)

($237,196)

Adjustments to reconcile  net loss to net cash provided by   (used in) operating activities:

     Depreciation

166,585

166,955

     Amortization

35,622

11,972

     Accrued potential  costs of derivatives

(29,059)

-0-

     Amortized unearned  stock compensation

40,625

-0-

Changes in assets and  liabilities       (Increase) decrease in:

     Accounts and notes  receivable, net

438,488

(401,395)

     Deposits, escrows,  prepaid and deferred expenses

556,691

(172,675)

     Increase (decrease)  in:       Accrued liabilities

144,981

(83,244)

     Undistributed minority  interest

16,440

-0-

     Other liabilities

(22,673)

54,240

     Deferred income

119,291

-0-

     Accounts payable

   (826,722)

    458,266

Net cash provided by (used  in) operating activities:

548,221

(253,077)
      
Cash Flow from investing  activities:

     Investment in  affiliates

(66,858)

728,170

     Investment in  marketable securities

191,201

-0-

     Purchase of equipment  and leasehold improvements

(32,952)

(2,643)

Payments For:

     Additions to new  property under construction

 (1,882,355)

     (49,097)

     Net cash provided by  (used in) investing activities

 (1,790,964)

      676,610
      
Cash flows from financing  activities:
      
     Proceeds from:

     Construction loan  payable

1,308,438

183,538

Principal payments on:

     Mortgage payable

(213,475)

330,591)

     Notes payable

(64,269)

(91,442)

     Advance from  (repayment to) related parties and        Affiliated  partnerships

       87,847

    (195,216)

Net cash provided by (used  in) financing activities

  1,118,541

  (4333,711)

Net decrease in cash and  cash equivalents

(124,202)

(10,178)

Cash and cash equivalents,  beginning of period

  1,500,030

        29,051

Cash and cash equivalents  at end of period

$1,375,828

$18,873
   
========
========
The accompanying notes are an integral part of theseconsolidated financial statements

6

**FIRST HARTFORD CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**Note 1: Summary of Significant Account Policies**

Description of Business

First Hartford Corporationand subsidiaries ("the Company") was incorporated in Maine in 1909, and isengaged in the purchase, development, ownership, management and sale of realestate.

Principles ofConsolidation

The accompanying financialstatements include the accounts of the Company, and its wholly ownedsubsidiaries.  All significant intercompany transactions and accounts have beeneliminated in the consolidated financial statements, including constructionrevenues and costs of development for the Company's own use (rental/futuresale).  Construction revenue from contracts between the Company and itsinvestment partnerships are shown net of the related construction costs.

Financial StatementPresentation

Because the Company isengaged in the development and sale of real estate in various states of construction,the operating cycle may extend beyond one year.  Accordingly, following theusual practice of the real estate industry, the accompanying consolidatedbalance sheets are unclassified.

ConstructionRevenue

Sincethe Company is primarily involved in the development of property for its ownuse, construction revenue is recorded upon the sale of a property built forthird parties.  Revenues from projects built for third parties are recognizedon the percentage-of-completion method of accounting, based on costs incurredto date in relation to total actual costs and estimated costs to complete. Revisions in costs and profit estimates are reflected in operations during theperiod in which the facts become known.  The Company provides for estimatedlosses on contracts in the period such losses become known.  There were noproperties built for sale to third parties during the period covered by thisreport.

Asubsidiary, Lead Tech, Inc., does lead and asbestos inspections and remediationand recognizes revenue as services are provided.

RentalRevenue - Rental revenue is comprised of base rent, reimbursements for certaincosts as provided in the lease agreements such as real estate taxes, utilities,insurance, common area maintenance charges and other recoverable costs.  Thereare no contingent rents during the period covered by this report.  

TheCompany leases certain real estate to tenants under leases that may includerenewal options.  In most cases, management expects that in the normal courseof business, leases will be renewed.  Therefore, in accordance with Statementof Financial Accounting Standards No. 13 "Accounting for Leases", rentalrevenue is recognized on a straight-line basis over the terms  of the respective leases.

 

7
****
**FIRST HARTFORD CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**Off Balance Sheet Risk:**

Duringthe reporting period, the Company had an amount in excess of $100,000 in asingle bank.  Amounts over $100,000 are not insured by the Federal DepositInsurance Corporation.  These balances fluctuate during the year and willusually exceed this $100,000 limit. Management regularly monitors the financialinstitution, together with its cash balances, and seeks to minimize thispotential risk.  

TheCompany maintains an account with a brokerage firm which had an amount greaterthan $500,000.  Amounts over $500,000 are not insured by the SecuritiesInvestor Protection Corporation.  Management regularly monitors the financialinstitution, together with its balances, and seeks to minimize this potentialrisk.  

**Investment InAffiliated Partnerships**

Inaccordance with ARB51, investments in entities in which the Company owns lessthan a 20% interest are carried at cost.  Distributions incurred from thoseentities are included in income.  Investments in entities in which the Companyhas a 20-50% interest are carried at cost adjusted for the Company'sproportionate share of their undistributed earnings or losses.  Distributionsreceived in excess of the Company's proportionate share of capital are appliedas a reduction of the cost of the investment.  

TheCompany currently has two unconsolidated operating partnerships:  The ShoppingCenter in Cranston, RI in which the Company owns a 25% interest and theShopping Center in Dover Township, NJ in which the Company owns a 50%interest.  Although the Company exercises significant influence, the Companydoes not control the operating and financial policies of these partnershipsand, therefore, are not consolidated in the financial statements.  Theseinvestments were recorded at cost and subsequently adjusted for gains, lossesand distributions.  If the carrying value of the investment is less than zero,the amount is recorded in other liabilities.

**Fair Value ofDerivative Instruments**

Inthe normal course of business, the Company is exposed to the effects ofinterest rate changes.  The Company limits its exposure with the use ofderivatives.  To mitigate the exposure to unexpected changes in interest rates,derivatives are used primarily to hedge against rate movements on some of theCompany's related debt.  Interest rate swap contracts that have been designatedand qualify as fair value hedging instruments are reported at fair value.  Thegain or loss on the derivative instrument as well as the offsetting gain orloss on the hedged item attributable to the hedged risk are recognized inearnings in the current period.

**Accounting For TheImpairment Or Disposal of Long-Lived Assets**

TheCompany has adopted Statement of Financial Accounting Standards (SFAS) No. 144,"Accounting for the Impairment or Disposal of Long-Lived Assets", whichestablished a single accounting model for the impairment or disposal oflong-lived assets including discontinued operations.  SFAS No. 144 requires thatthe operations related to properties that have been sold or properties that areintended to be sold be presented as discontinued operations in the ConsolidatedStatement of Operations and Comprehensive Loss for all periods presented, andproperties intended to be sold to be designated as "held for sale" on theConsolidated Balance Sheet.

 

8

**FIRST HARTFORD CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**Estimates**

Thepreparation of financial statements in conformity with accounting principlesgenerally accepted in the United States of America requires management to makeestimates and assumptions that affect the reported amount of assets andliabilities, and the disclosure of contingent assets and liabilities as of thedate of the financial statements, and the reported amounts of revenues andexpenses during the reporting period.  Actual results could differ from thoseestimates.

**Marketable Securities**

Inaccordance with SFAS No. 115 "Accounting for Certain Investments in Debt andEquity Securities" the Company determines the appropriate classification of itsinvestments in debt and equity securities at the time of purchase andre-evaluates such determination at each Balance Sheet date.  Debt securitiesfor which the Company does not have the intent to hold to maturity areclassified as available-for-sale, along with the Company's investment in equitysecurities.  Securities available-for-sale are carried at fair value, with theunrealized gains and losses reported in other comprehensive income (loss).

**Stock Compensation**

TheCompany applies Accounting Principles Board Opinion 25, "Accounting for StockIssued to Employees" ("APB 25") and related interpretations in accounting forits stock awards, and complies with the disclosure provisions of SFAS No. 123,"Accounting for Stock Based Compensation".  Under APB 25, compensation expenseis recognized over the vesting period to the extent that the fair market valueof the underlying common stock on the measurement date exceeds the exercise priceof the employee stock award.  

**Accounting Change**

TheCompany has adopted SFAS No. 144 "Accounting for the Impairment or Disposal ofLong-Lived Assets".  As a result, there is a requirement to restate the 2003financial statements to properly present discontinued operations.  There is noeffect to net income.

Inthe current year, in accordance with SFAS No. 13 "Accounting for Leases"; theCompany recognized lease rental revenue on a straight-line basis over the termsof the respective leases.  For the quarter ended July 31, 2003 the financialstatements have been restated to reflect an increase of $10,071 to rentalearnings of joint ventures.

**Note 2.  Employee StockOption Plan:**

On January 22, 2004, theshareholders approved a stock-option plan.  In February 2004, 250,000 optionswere granted to five employees, two of which are directors.  The options have atwo-year vesting period which were granted at $1.10 per share, representing thehighest bid price prior to the issuance of the options. The option gives theemployee the right to sell the shares back to the Company for $2.40 at the endof the vesting period.  During the quarter ended July 31, 2004, the Companyexpensed $40,625 related to the options.

 

9

**Item 2.           ** **FIRST HARTFORD CORPORATION ANDSUBSIDIARIES                        MANAGEMENT'SDISCUSSION AND ANALYSIS OF FINANCIAL                        CONDITIONAND RESULTS OF OPERATIONS**

The financial and businessanalysis below provides information which the Company believes is relevant toan assessment and understanding of the Company's consolidated financialposition and results of operations.  This financial and business analysisshould be read in conjunction with the consolidated financial statements andrelated notes.

The following discussion and certain other sections ofthis Report on Form 10-Q contain statements reflecting the Company's viewsabout its future performance and constitute "forward-looking statements" underthe Private Securities Litigation Reform Act of 1995.  These views may involverisks and uncertainties that are difficult to predict and may cause theCompany's actual results to differ materially from the results discussed insuch forward-looking statements.  Readers should consider how various factorsincluding changes in general economic conditions, cost of materials, interestrates and availability of funds, and the nature of competition andrelationships with key customers may affect the Company's performance.  TheCompany undertakes no obligation to update publicly any forward-lookingstatements, whether as a result of new information, future events or other.

**Critical Accounting Policies**

Thediscussion and analysis of financial condition and results of operations isbased upon the Consolidated Financial Statements contained in Item 1 in thisQuarterly Report.  The Consolidated Financial Statements include the accountsof the Company and its controlled affiliates.  The preparation of financialstatements in conformity with accounting principles generally accepted in theUnited States of America requires management to make estimates and assumptionsthat affect the reported amounts of assets and liabilities and the disclosureof contingent assets and liabilities as of the date of the financial statementsand the reported amounts of revenues and expenses for the reporting period. Actual results could differ from those estimates.

The estimates used in the preparation of the ConsolidatedFinancial Statements are described in Note 1 to the Consolidated FinancialStatements for the periods ended July 31, 2004 and 2003.  Certain significantaccounting policies are considered critical accounting policies due to theincreased level of assumptions used or estimates made in determining theirimpact on the Consolidated Financial Statements.  Management has reviewed thecritical accounting policies and estimates with the Company's Board ofDirectors.

 

10

**FIRST HARTFORD CORPORATION AND SUBSIDIARIESMANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIALCONDITION AND RESULTS OF OPERATIONS**

 

**Results of Operations**

The current quarter resulted in a loss of $113,853compared to a loss of $237,196 for the quarter ended July 31, 2003.

Thecurrent quarter includes the following:
-  Gain on the sale of real estate -$113,196. The company sold a small parcel of land it owned in New Mexico. Thequarter ended July 31, 2003 had none. 
-  Gain on derivatives - $29,059. The quarter ended July 31, 2003 had none. 
-  Increase of $22,448 in equity ofearnings of affiliates. 
-  Expense of $40,645 resulting fromamortization of unearned stock compensation.  The quarter ended July 31, 2003had none. 
-  Comprehensive loss of $21,805 netof taxes on marketable securities held for sale. The quarter ended July 31,2003 had none. 
-  Net earnings of $173,380 from theaffiliated consolidation partnership, of which $86,690 belongs to the minorityinterest. Those earnings did not exist prior to January 2004. 
-  Net earnings from the Company'sshopping center in West Springfield, Massachusetts were not material thisquarter as stores are still opening.  By October 31, 2004, the shopping centeris expected to be fully occupied and receiving rent. 
-  Legal costs of approximately$50,000 resulting from a shareholder suit. 

**Capital Resources and Liquidity**

Asreported in the Form 8K filed on August 9, 2004, the Company has startedconstruction of a new shopping center in Bangor, Maine.  At this point in timethe Company has not closed on the construction financing but management expectsa closing in 45 to 60 days.  The Company will be required to fund the initialcost which will amount to approximately $2.5 million in excess of the amountalready paid.  To accomplish this, the Company is negotiating two refinancingsthat will supply most of the funds needed.  

OnSeptember 2, 2004, the Company entered into a rate lock agreement with a lenderas a prelude to a closing on a mortgage for the West Springfield shoppingcenter.  To cancel the agreements with the original mortgagee, the Company willpay $940,000, which will be included in the mortgage and added to the cost. Themortgage is expected to close in September 2004.

Construction in the West Springfield shopping center isalmost complete.  All tenants are expected to be in place and paying rent priorto October 31, 2004.

11

**FIRST HARTFORD CORPORATION AND SUBSIDIARIESMANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIALCONDITION AND RESULTS OF OPERATIONS**

Thefollowing schedule outlines our long-term obligations as of July 31, 2004.

**Contractual Obligations**

**Total   **

**Less Than1 Year    **
**1 - 3 Years**

**3-5 Years**

**More Than5 Years   **
Long Term Debt

 28,322,000 (1)

 7,960,000

 5,475,000

14,511,000

376,000

Operating Lease

       210,000 (2)

       95,000

     115,000

Purchase Obligation

    8,043,000  (3)

  2,907,000

  5,136,000

_________

_________

$36,575,000

10,962,000

10,726,000

14,511,000

 376,000

(1)        Includes construction loan of $6.9million that will be converted to a mortgage loan (30 year amortization) in thecurrent quarter.

(2)        Shopping center in Bangor, Maineto be built on property leased until January 31, 2104.  For the period up toFebruary 1, 2006 (the project date of completion) the rent amounts to$210,000.  Thereafter, the annual rent is $400,000 with a .075% increase every5 years.  Only payments prior to February 1, 2006 are on this Schedule.  

(3)        Of this amount $7,858,000 arecontract obligations of building the Bangor shopping center.  

Although wary of rising interest rates, the possibilitiesof problems with major tenants, and major construction cost overruns, we feelour liquidity and capital resources are adequate to meet our needs.

**Item 3.                        QUANTITATIVEAND QUALITATIVE DISCLOSURE ABOUT MARKET RISK.**

Allphases of the real estate business are inherently speculative and intenselycompetitive with many enterprises, both large and small, engaged in businessessimilar to the Company's throughout the United States.  The success of theCompany, to a large extent, depends upon factors which may be beyond thecontrol of management.  Some of these factors are variable construction costs,the mortgage market, real estate taxes, income tax laws, governmentregulations, the commercial rental market and the economy.  The ability of theCompany to meet its debt service obligations and to operate profitably is alsodependent on its ability to attract tenants and to compete successfully withthe numerous other commercial properties available to prospective tenants.  Theability to attract tenants is dependent upon the changing character of theareas in which the Company's properties are located, the rate of newconstruction in those areas and the extent of present and future competition inthose areas.  The Company's holdings are becoming less diversified bothgeographically and in use and types of occupancy.

TheCompany's assets are concentrated mostly in the Northeast which creates ageographic diversification risk.  The Company presently has properties fromSouthern New Jersey and options for property as far north as Maine.

Thereal estate business does not experience "backlogs" as that term is generallyunderstood, nor is it seasonal.

Tothe Company's knowledge, its real estate business is not dependent upon asingle customer but there is a dependency on supermarkets for strip malls.  TheCompany has Stop & Shop, Price Rite and Big Y as such tenants.

12

**FIRST HARTFORD CORPORATION AND SUBSIDIARIESMANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIALCONDITION AND RESULTS OF OPERATIONS**

** **

**Item 4.                        CONTROLSAND PROCEDURES**

Our management, including ourchief executive officer and chief financial officer carried out an evaluationof the effectiveness of our disclosure controls and procedures as of July 31,2004, pursuant to Exchange Act Rules 13(a)-15(e) and 15(d)-15(e).  Based uponthat evaluation our chief executive officer and chief financial officer haveconcluded that as of such date, our disclosure controls and procedures in placeare adequate to ensure material information and other information requiringdisclosure is identified and communicated on a timely basis.  There were nosignificant changes in the registrant's internal controls or in other factors thatcould significantly affect these controls subsequent to the date of theirevaluation.

 

 

 

13

**FIRST HARTFORD CORPORATION AND SUBSIDIARIESOTHER INFORMATION**

**PART II          OTHER INFORMATION**

**Item 1.             LEGALPROCEEDINGS**

On January 29, 2004, a shareholder filed a Form 13D withthe Securities and Exchange Commission indicating that he controls over 19% ofthe Company shares.  That shareholder was Richard E. Kaplan, purportedly aresident of the Commonwealth of Massachusetts.  By Complaint dated February 27,2004, Mr. Kaplan, filed suit against the Company as case No. 04 10402 RCL inthe United States District Court in the District of Massachusetts.  The Companywas served with the complaint on March 2, 2004.  The complaint alleges that theproxy solicitation materials issued by the Company as a prelude to its annualmeeting on January 22, 2004, were false and/or misleading in certain respectsand also omitted certain material information.  As a result thereof, theplaintiff seeks to void the shareholder votes taken at the January 22, 2004shareholder meeting of the Company and have a new vote ordered based uponrevised proxy material which would be required to be issued by the Company. The only shareholder votes taken at the annual meeting were to re-elect thesame Board of Directors which had been serving the Company and to approve anEmployee Stock Option Plan.

TheCompany believes strongly that information in its proxy materials was neitherfalse nor misleading and that the lawsuit is without merit.

TheCompany is not aware of any other material legal proceedings which would needto be cited herein.

**Item 2.            CHANGES IN SECURITIES USE OFPROCEEDS AND ISSUER PURCHASES OF EQUITY SECURITIES**

(a)               Not Applicable.

(b)               Not Applicable.

(c)               Not Applicable.

(d)               Not Applicable.

**Item 3.                        DEFAULTSUPON SENIOR SECURITIES**

(a)               Not Applicable.

(b)               Not Applicable.  The Company hasnot declared any dividends.

**Item 4.                        SUBMISSIONOF MATTERS TO VOTE OF SECURITY HOLDERS**

(a)               Not Applicable.

(b)                NotApplicable.

 

14

**FIRST HARTFORD CORPORATION AND SUBSIDIARIESOTHER INFORMATION**

**Item 5.                        OTHERINFORMATION**

The Board of Directors has setDecember 9, 2004 as the date for the annual meeting of shareholders for thefiscal year ending April 30, 2004 ("fiscal 2004"). Because the date of the nextannual meeting has been advanced by more than 30 calendar days from the date oflast year's annual meeting, shareholders' proposals for inclusion in theCompany's proxy statement for the annual meeting of shareholders for fiscal2004 must be received no later than a reasonable time before the Company printsand mails its proxy material for such annual meeting. If a shareholder intendsto submit a proposal for consideration at the annual meeting by means otherthan the inclusion of the proposal in the Company's proxy statement for suchannual meeting, the shareholder must notify the Company of such intention nolater than a reasonable time before the Company prints and mails its proxymaterial for such annual meeting, or the proxies solicited by the management ofthe Company will confer discretionary authority upon the management to vote onany such matter. The Company anticipates mailing the proxy material for suchannual meeting on or about November 11, 2004.  

**Item 6.                        EXHIBITSAND REPORTS ON FORM 8-K**

                      
 a)Exhibits:
 
     Exhibit 31.1 
Certification ofChief Executive Officer, pursuant to Rule 13a-14(c) under the SecuritiesExchange Act of 1934.
     Exhibit 31.1 
Certification ofChief Financial Officer, pursuant to Rule 13a-14(c) under the SecuritiesExchange Act of 1934.
     Exhibit 32.1
Certification ofChief Executive Officer, pursuant to 18 U.S.C. Section 1350.
     Exhibit 32.1 
Certification ofChief Financial Officers, pursuant to 18 U.S.C. Section 1350.
    b)Form 8-K
Regulation FD DisclosuresRe: Construction of Police Station in  Cranston, RI.
     Form 8-K
Regulations FDDisclosure RE: Shopping Center in Bangor, Maine.
  
 

            

15

**SIGNATURES**

Pursuant to the requirements of the Securities ExchangeAct of 1934, the Registrant has duly caused this report to be signed on itsbehalf by the undersigned thereunto duly authorized.

FIRST HARTFORD CORPORATION AND SUBSIDIARIES

/s/ Stuart GreenwaldStuart GreenwaldTreasurerChief Financial(Duly Authorized Officer, PrincipalFinancial and Accounting Officer)

 

Date:    September 14, 2004

 

16

** **

**PART II - OTHERINFORMATION**

** **

** **

**Signatures**

Pursuantto the requirements of the Securities Exchange Act of 1934, the Registrant hasduly caused this report to be signed on its behalf by the undersigned thereuntoduly authorized.

                                                                        **FIRSTHARTFORD CORPORATION**

** **

**                                                                       /**s**/**StuartI. Greenwald                    **                                                                       **StuartI. Greenwald                                                                        Treasurer                                                                        ChiefFinancial Officer                                                                        (DulyAuthorized Officer, Principal                                                                        Financialand Accounting Officer)

 

**Date:**September 14, 2004

 

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