FORM 10-Q

               SECURITIES AND EXCHANGE COMMISSION
                     WASHINGTON, D.C.  20549


 X   Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange
 Act of 1934

For the quarterly period ended March 31, 1999 or

     Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934

For the transition period from               to

Commission File Number:  0-20737

             AMERICA FIRST APARTMENT INVESTORS, L.P.
     (Exact name of registrant as specified in its charter)

Delaware                                                47-0797793
(State or other jurisdiction                            (IRS Employer
of incorporation or organization)                       Identification No.)


Suite 400, 1004 Farnam Street, Omaha, Nebraska          68102
(Address of principal executive offices)                (Zip Code)


(402) 444-1630
(Registrant's telephone number, including area code)


     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (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



































<PAGE>                               - i -
Part I.  Financial Information
  Item 1.  Financial Statements
AMERICA FIRST APARTMENT INVESTORS, L.P.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

<TABLE>
<CAPTION>
                                                                                             March 31, 1999       Dec. 31, 1998
                                                                                             --------------      --------------
<S>                                                                                          <C>                 <C>
Assets
 Cash and temporary cash investments, at cost which
  approximates market value 								                                                         $   19,496,088	     $  19,694,420
 Investment in real estate, net of accumulated depreciation (Note 4)                            	98,999,897									99,915,375
 Other assets                                                                                    	2,192,473										1,908,591
                                                                                             --------------      --------------
                                                                                             $  120,688,458      $ 121,518,386 
                                                                                             ==============      ==============
Liabilities and Partners' Capital
 Liabilities                                                                                                                   
  Accounts payable and accrued expenses (Note 6)                                             $   	4,541,961      $   4,622,741
  Bonds and mortgage notes payable (Note 5)                                                     	56,426,670									56,600,662
  Distribution payable (Note 3)                                                                    	351,163												351,163
                                                                                             --------------      --------------
                                                                                                	61,319,794									61,574,566 
                                                                                             --------------      --------------
 Partners' Capital
  General Partner                                                                                    24,717													21,129
  Beneficial Unit Certificate Holders
  ($11.39 per BUC in 1999 and $11.50 in 1998)                                                  		59,343,947									59,922,691 
                                                                                             --------------      --------------
                                                                                               		59,368,664								 59,943,820 
                                                                                             --------------      --------------
                                                                                             $ 	120,688,458	     $ 121,518,386 
                                                                                             ==============      ==============

The accompanying notes are an integral part of the consolidated financial statements.
</TABLE>





































<PAGE>                               - 1 -
AMERICA FIRST APARTMENT INVESTORS, L.P.
CONSOLIDATED STATEMENTS OF INCOME 
(UNAUDITED)
<TABLE>
<CAPTION>
                                                                              															For the Three       For the Three   
                                                                         																					Months Ended       	Months Ended 
                                                                        																			 March 31, 1999      March 31, 1998 
                                                                         																			--------------      -------------- 
<S>                                                                      																			<C>                 <C>            
Income
 Rental income                                                           																			$ 	 4,584,250							$		 3,089,924   
 Mortgage bond investment income 								                                	   																					   -														  277,564   
 Interest income on temporary cash investments                                  																		168,602														74,350   
                                                                         																			--------------      -------------- 
                                                                           																				 4,752,852								 	 3,441,838   
                                                                         																			--------------      -------------- 
Expenses
 Real estate operating expenses                                              																			2,113,404											1,485,232   
 Depreciation                                                               																				  933,901											  614,274  
 Interest expense                                                           																				  793,736											  430,752  
 General and administrative expenses (Note 6)                               																			   433,478										   337,473  
                                                                         																			--------------      --------------
                                                                           																				 4,274,519										 2,867,731   
                                                                         																			--------------      -------------- 
Net income 											                                                  	     														$					478,333							$					574,107
                                                                         																			==============      ============== 

Net income allocated to:
 General Partner                                                         																			$     		14,122						$						11,884  
 BUC Holders                                                              																			  		  464,211												562,223  
                                                                         																			--------------      --------------  
                                                                         																			$ 		   478,333						$					574,107  
                                                                         																			==============      ==============  
						
Net income, basic and diluted, per BUC  							                          																			$        		.09						$								.11  
                                                                         																			==============      ============== 

Weighted average number of BUCs outstanding                               																			   	5,212,167										5,212,167  
                                                                         																			==============      ============== 

The accompanying notes are an integral part of the consolidated statements.
</TABLE>

































<PAGE>                               - 2 -

AMERICA FIRST APARTMENT INVESTORS, L.P.
CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL
FOR THE THREE MONTHS ENDED MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
                                                           General						Beneficial Unit	
                                                           Partner      Certificate Holders          Total
                                                    ---------------     ---------------     ---------------
<S>                                                 <C>                 <C>                 <C>
Partners' Capital 
Balance at December 31, 1998                                21,129          59,922,691          59,943,820
Net income                                                  14,122	           	464,211		          	478,333	
Cash distributions paid or accrued (Note 3)
 Income                                                    (10,534)        		 (109,054)        		 (119,588)
 Return of capital                                            -             		(933,901)       		  (933,901)
                                                    ---------------     ---------------     ---------------
Balance at March 31, 1999				                       $       24,717  			$  	 59,343,947    		$ 	 59,368,664
                                                    ===============     ===============     ===============

The accompanying notes are an integral part of the consolidated financial statements.
</TABLE>





















































<PAGE>                               - 3 -

AMERICA FIRST APARTMENT INVESTORS, L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
                                                                            																	 For the Three       For the Three
                                                                            																			Months Ended        Months Ended 
                                                                         																				March 31, 1999      March 31, 1998 
                                                                        																				---------------     ---------------
<S>                                                                     																				<C>                 <C>            
Cash flows from operating activities                                                                                           
 Net income 						                                                      																				$   	  478,333						$					574,107 
  Adjustments to reconcile net income to net cash 
   provided by operating activities
				Depreciation                                                             																				  933,901										  614,274  
    Amortization                                                               																				   -															 32,170  
    Increase in other assets                                        																														(283,882)										(187,218)  
    Increase in accounts payable and accrued expenses                          																				(80,780)										(232,087)  
                                                                        																				---------------     ---------------
 Net cash provided by operating activities                              																				    	1,047,572										  801,246  
                                                                        																				---------------     ---------------
Cash flows from investing activities
 Real estate capital improvements                                           																			  			(2,586)															(39) 
 Acquisition of real estate                                                																				  	 (15,837)							     (2,063) 
                                                                        																				---------------     ---------------
 Net cash used in investing activities                                  																			   		 	 (18,423)						      (2,102) 
                                                                        																				---------------     ---------------
Cash flows from financing activities
 Distributions paid                                                         																				(1,053,489)										(987,151) 
 Bond issuance and line of credit costs paid                                																							   -															(79,720) 
 Principal payments on bonds and mortgage notes payable                                   								(173,992)										(146,515) 
                                                                        																				---------------     ---------------
 Net cash used in financing activities 										                    																							  		(1,227,481)								(1,213,386)  
                                                                        																				---------------     --------------- 
Net decrease in cash and temporary cash investments 											             																				  (198,332)								  (414,242)  
Cash and temporary cash investments at beginning of period                  																	  	19,694,420										7,879,934  
                                                                        																				---------------     ---------------
Cash and temporary cash investments at end of period                    																				$   19,496,088						$		 7,465,692 
                                                                        																				===============     ===============
Supplemental disclosure of cash flow information:
 Cash paid during the year for interest                                 																				$      835,584						$				 314,360 
                                                                        																				===============     ===============

The accompanying notes are an integral part of the consolidated financial statements.
</TABLE>






























<PAGE>                               - 4 -
AMERICA FIRST APARTMENT INVESTORS, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1999
(UNAUDITED)

1. Organization

America First Apartment Investors, L.P. (the Partnership) was formed on March
7, 1996, under the Delaware Revised Uniform Limited Partnership Act for the
purpose of acquiring, holding, operating, selling or otherwise dealing with
multifamily residential properties and other types of commercial real estate
and interests therein.  The Partnership commenced operations on August 20,
1996, when it merged with America First Tax Exempt Mortgage Fund 2 Limited
Partnership (the Prior Partnership).  Under the terms of the merger agreement,
the Partnership was the surviving partnership and effectively took over the
operations of the Prior Partnership.  Unit holders of the Prior Partnership
received one Beneficial Unit Certificate (BUC) of the Partnership for each BUC
they held in the Prior Partnership as of the record date.  The Prior
Partnership was terminated under the provisions of the Prior Partnership's
Partnership Agreement.  The Partnership will terminate on December 31, 2016,
unless terminated earlier under the provisions of its Partnership Agreement.
The General Partner of the Partnership is America First Capital Associates
Limited Partnership Four (AFCA 4).

2. Summary of Significant Accounting Policies

 A) Financial Statement Presentation
    The consolidated financial statements include the accounts of the
    Partnership and its subsidiaries.  All significant intercompany
    transactions and accounts have been eliminated in consolidation.

    The consolidated financial statements of the Partnership are prepared
    without audit on the accrual basis of accounting in accordance with
    generally accepted accounting principles.  The consolidated financial
    statements should be read in conjunction with the consolidated and
    combined financial statements and notes thereto included in the
    Partnership's Annual Report on Form 10-K for the year ended December 31,
    1998.  In the opinion of management, all normal and recurring adjustments
    necessary to present fairly the financial position at March 31, 1999,
    and results of operations for all periods presented have been made.

    The preparation of financial statements in conformity with generally
    accepted accounting principles requires management to make estimates and
    assumptions that affect the reported amounts of assets and liabilities and
    disclosure of contingent assets and liabilities at the date of the
    financial statements and the reported amounts of revenues and expenses
    during the reporting period.  Actual results could differ from those
    estimates.

 B) Investment in Real Estate
				Each real estate property is recorded at the lower of the Partnership's 
				cost or fair value.  The fair value of the real estate is based on 
				management's best estimate of the net realizable value of the properties
			 which may differ from the ultimate values realized from these properties.
				The net realizable value of the properties is determined based on the 
				discounted estimated future cash flows from the properties, including 
				estimated sales proceeds.  The carrying	value of each property is 
				periodically reviewed and adjusted when there are significant declines in
			 the estimated net realizable value.  Declines in the net realizable value
			 are charged to income.

    Depreciation of real estate is based on the estimated useful life of the
    property (27-1/2 years on multifamily residential apartments and 31-1/2
    years on The Exchange at Palm Bay) using the straight-line method.
    Depreciation of real estate improvements on The Exchange at Palm Bay is
    based on the term of the related tenant lease using the straight-line
    method.









<PAGE>                               - 5 -

AMERICA FIRST APARTMENT INVESTORS, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1999
(UNAUDITED)
 
	C) Revenue Recognition
				The Partnership leases multifamily rental units under operating leases 
				with terms of one year or less.  Rental revenue is recognized as earned net 
				of any vacancy losses and rental concessions offered.  Rental income on 
				commercial property is recognized on a straight-line basis over the term 
				of each operating lease.    

 D) Income Taxes
    No provision has been made for income taxes since Beneficial Unit
    Certificate (BUC) Holders are required to report their share of the
    Partnership's taxable income for federal and state income tax purposes.

 E) Temporary Cash Investments
    Temporary cash investments are invested in short-term debt securities
    purchased with an original maturity of three months or less.

 F) Net Income per BUC
    Net income per BUC has been calculated based on the weighted average
    number of BUCs outstanding during each period presented.

 G) Reclassifications
				Certain prior period amounts have been reclassified to conform with the 
				current period classification.  

 H) New Accounting Pronouncement
				On January 1, 1999, the Partnership adopted Statement of Position 98-5,
			 "Reporting on the Costs of Start-Up Activities" (SOP 98-5).  SOP 98-5 
				requires costs of start-up activities and organization costs to be expensed
			 as incurred.  The adoption of SOP 98-5 did not have an impact on the
			 Partnership's financial statements.

3. Partnership Income, Expenses and Cash Distributions

The Partnership Agreement contains provisions for the distribution of Net
Operating Income, Net Sale Proceeds and Liquidation Proceeds and for the
allocation of income and expenses for tax purposes among AFCA 4 and BUC
Holders.

Cash distributions included in the financial statements represent the actual
cash distributions made during each period and the cash distributions accrued
at the end of each period.





























<PAGE>                               - 6 -
AMERICA FIRST APARTMENT INVESTORS, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1999
(UNAUDITED)

4. Investment in Real Estate

The Partnership's investment in real estate is comprised of the following:
<TABLE>
<CAPTION>
                                                                                                 Building
                                                               Number                                 and             Carrying
  Property Name                        Location               of Units   	         Land      Improvements               Amount
  ---------------------------------    --------------------   --------     -------------   ---------------    -----------------
  <S>                                  <C>                    <C>          <C>             <C>                <C>
  Covey at Fox Valley(1)               Aurora, IL                216       $  1,320,000    $   10,028,338     $     11,348,338
  The Exchange at Palm Bay             Palm Bay, FL           72,002(2)       1,296,002         3,995,670            5,291,672
  The Park at Fifty Eight(1)   	       Chattanooga, TN           196            231,113         4,122,226            4,353,339
  Shelby Heights(1)                    Bristol, TN               100            175,000         2,952,847            3,127,847
  Coral Point(1)                       Mesa, AZ                  336          2,240,000         8,960,000           11,200,000
  Park at Countryside(1)               Port Orange, FL           120            647,000         2,616,648            3,263,648
  The Retreat(3)                       Atlanta, GA               226          1,800,000         7,315,697            9,115,697
  Jackson Park Place(1)                Fresno, CA                296          1,400,000        10,709,534           12,109,534
  Park Trace Apartments(1)             Norcross, GA              260          2,246,000        11,789,810           14,035,810
		Littlestone at Village Green (1)					Gallatin, TN														200												508,000								10,055,528											10,563,528
		St. Andrews	at Westwood Apartments(1)Orlando, FL															259										1,617,200								14,262,540  				     15,879,740	
		The Hunt Apartments	(1)														Oklahoma City, OK									216												550,000									7,061,832												7,611,832
		Greenbriar Apartments	(1)												Tulsa, OK																	120												648,000									3,674,738												4,322,738
                                                                                                              -----------------
                                                                                                                   112,223,723
  Less accumulated depreciation                                                                                    (13,223,826)
                                                                                                              -----------------
  Balance at March 31, 1999                                                                               				$  		 98,999,897
                                                                                                              =================
</TABLE>
(1) Property is encumbered as described in Note 5.
(2) Represents square feet.
(3) Property serves as collateral for $12,200,000 of multifamily revenue
    refunding bonds issued on Jefferson Place.  The Partnership is an
    affiliate of the general partner of the partnership which owns Jefferson
    Place.



































<PAGE>                               - 7 -
AMERICA FIRST APARTMENT INVESTORS, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1999
(UNAUDITED)

5.  Bonds Payable and Mortgage Notes Payables

Bonds and mortgage notes payable were originated by the Partnership through the 
issuance of tax-exempt refunding bonds or were assumed by the Partnership in 
connection with the acquisition of multifamily housing properties.  Bonds and 
mortgage notes payable at March 31, 1999, consists of the following:

<TABLE>
<CAPTION>
                        Effective 		Final     
                        Interest  		Maturity                                      Annual            	         	Carrying
Collateral              Rate      		Date      Payment Schedule                    Payments    		      				       Amount	
----------------------- --------- 		--------  ----------------------------------- ---------------------   -------------
<S>                     <C>       		<C>       <C>                                 <C>                     <C>
Bonds Payable:
The Park at Fifty Eight   6.65%   		3/1/2021  semiannual payments of              range from $224,000     $  	2,570,000
 					    																																				principal and/or interest           to $228,000
                                      		      are due each March 1 and September 1

Shelby Heights and	       6.10%   		3/1/2022  semiannual payments of              range from $266,000         3,310,000	
 Park at Countryside               		         principal and/or interest           to $276,000
                                    		        are due each March 1 and September 1																								

Covey at Fox Valley       5.30%  			11/1/2007 semiannual payments of              $658,000 								        	 12,410,000
 and Park Trace Apartments         		         interest are due each May 1         
                                   		         and November 1

Jackson Park Place        5.80%  			12/1/2027 monthly payment of                  $611,901                   	8,368,503	
                                  		          principal and interest                                    
                                  		          are due the 1st of each month

Coral Point and 										4.96%  			3/1/2008		semiannual payments of 													$650,033																			13,090,000
	St Andrews at																																interest are due each																
	Westwood Apartments																										March 1 and September 1																																					-------------
																																																																																																													39,748,503

Mortgage Notes Payable:
Littlestone
	at Village Green									7.68%					9/15/2005	Monthly payment of 																		$542,921																			5,703,167
																																														principal and interest
																																														are due the 15th of each month

The Hunt Apartments							3.00%(1)		4/1/2020		Monthly payments of interest									interest only														6,930,000
																																														are due the 1st of each month

Greenbriar Apartments					3.15%(1)		3/15/2005	Monthly payments of interest									interest only														4,045,000
																																														are due the 15th of each month
																																														
																																																																																																										-------------
																																																																																																													16,678,167
                                                              																						                    			-------------
Balance at March 31, 1999				 																																														 			                    		 $ 				56,426,670	
																																																																																																											=============
(1) Weekly floating rate.  The mortgage note is also collateralized by cash 
				slightly in excess of the mortgage balance.
















<PAGE>                               - 8 -
AMERICA FIRST APARTMENT INVESTORS, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1999
(UNAUDITED)

6. Transactions with Related Parties

Substantially all of the Partnership's general and administrative expenses and 
certain costs capitalized by the Partnership are paid by AFCA 4 or an 
affiliate and reimbursed by the Partnership.  The amount of such expenses 
reimbursed to AFCA 4 for the three months ending March 31,1999 was $468,480.  
AFCA 4 or an affiliate also paid $30,855 (for the three months ended March 31, 
1999) in costs capitalized by the Partnership during 1999 which were 
reimbursed by the Partnership.  The capitalized costs were incurred in 
connection with the acquisition of real estate.  The reimbursed expenses are 
presented on a cash basis and do not reflect accruals made at quarter end.

Pursuant to the Limited Partnership Agreement, AFCA 4 is entitled to an 
administrative fee from the Partnership based on the original amount of the 
mortgage bonds which were foreclosed on by the Partnership and the purchase 
price of any additional properties acquired by the Partnership.  The amount of 
such fees paid to AFCA 4 for the three months ended March 31, 1999 was 
$167,737.

Pursuant to the terms of the Limited Partnership Agreement, AFCA 4 is entitled 
to receive a property acquisition fee from the Partnership in connection with 
the identification, evaluation and acquisition of additional properties and 
the financing thereof.  There were no acquisition fees incurred during the 
three months ended March 31, 1999.

An affiliate of AFCA 4 was retained to provide property management services 
for the multifamily properties owned by the Partnership.  The fees for 
services provided represent the lower of (i) costs incurred in providing 
management of the property, or (ii) customary fees for such services 
determined on a competitive basis and amounted to $205,426 for the three 
months ended March 31, 1999.

7. Subsequent Event

On April 27, 1999, the Partnership acquired Oakwell Farms Apartments, a 414- 
unit apartment complex located in Nashville, Tennessee.  The property was 
acquired for approximately $17.7 million and was financed with a 10-year 
mortgage loan in the amount of $12,975,000 bearing interest at 6.935% and with 
cash-on-hand.  
































<PAGE>                               - 9 -

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

Liquidity and Capital Resources

The Partnership's principal capital resources at March 31, 1999 consisted 
of twelve apartment complexes and one office/warehouse facility which had a 
combined depreciated cost of $98,999,897 as of that date.  The following table 
sets forth certain information regarding the Partnership's real estate as of 
March 31, 1999:


</TABLE>
<TABLE>
<CAPTION>
                                                                                          Number      Percentage
                                                                           Number       of Units        of Units
Property Name                          Location                          of Units       Occupied        Occupied
-------------------------------        -----------------------          ----------     ----------     -----------
<S>                                    <C>                              <C>            <C>            <C>
Jackson Park Place                     Fresno, CA                           296            293             99%
Covey at Fox Valley                    Aurora, IL                           216            214             99%
The Park at Fifty Eight                Chattanooga, TN                      196            194             99%
Shelby Heights                         Bristol, TN                          100             83             83%
Coral Point                            Mesa, AZ                             336            314             93%
Park at Countryside                    Port Orange, FL                      120            119             99%
The Retreat                            Atlanta, GA                          226            214             95%
Park Trace Apartments                  Norcross, GA                         260            235             90%
Littlestone at Village Green 										Gallatin, TN																									200												186													93%
St. Andrews at Westwood Apartments					Orlando, FL																										259												244													94%
The Hunt Apartments																				Oklahoma City, OK																				216												202													94%
Greenbriar Apartments																		Tulsa, OK																												120												114													95%
                                                                        ----------     ----------     -----------
                                                                          2,545          2,412             95%
                                                                        ==========     ==========     ===========
The Exchange at Palm Bay               Palm Bay, FL                      72,002(1)      44,300(1)          62%
                                                                        ==========     ==========     ===========
</TABLE>
(1) Represents square feet.

Four of the apartment complexes and the office/warehouse facility were 
acquired by the Partnership through a merger with America First Tax Exempt 
Mortgage Fund 2 Limited Partnership (the Prior Partnership) on August 20, 
1996.  The Partnership also acquired three tax-exempt mortgage bonds secured 
by additional apartment complexes as a result of the merger which were 
subsequently sold or otherwise disposed of.  Seven of the apartment complexes  
were purchased by the Partnership since the merger and one property was 
acquired through delivery of a deed in lieu of foreclosure of one of the 
former tax-exempt bonds that the Partnership held on such property.  

The principal sources of funds used by the Partnership to finance the 
acquisition of additional apartment complexes are:  (i) proceeds from the 
issuance of tax exempt mortgage bonds secured by the Partnership's existing 
and/or the acquired apartment complexes, (ii) the net proceeds from the sale 
or disposition of tax-exempt bonds acquired in the merger with the Prior 
Partnership and (iii) the assumption of existing indebtedness on properties 
acquired.

The Partnership has borrowed a total of $40,205,000 through the 
issuance of five tax-exempt mortgage bonds.  As of March 31, 1999, the 
aggregate outstanding principal balances of these bonds equaled $39,748,503.  
The principal of two of the bonds does not amortize and is due in full at 
maturity.  Maturity dates range from November 2007 to December 2027.  These 
bonds bear interest at rates ranging from 4.96% to 6.65% per annum.  Each bond 
is a "non-recourse" obligation that is secured by a first mortgage or deed of 
trust on one or two of the Partnership's apartment complexes.  Principal and 
interest payments on the bonds are made solely from the net cash flow and/or 
net sale or refinancing proceeds of the mortgaged properties.









<PAGE>                               - 10 - 

The Partnership has also assumed a taxable mortgage loan in connection with 
the acquisition of Littlestone at Village Green Apartments.  As of March 31, 
1999, the outstanding balance of this mortgage loan was $5,703,167.  This 
mortgage loan bears interest at the rate of 7.68% per annum.  In connection 
with the acquisition of The Hunt Apartments and Greenbriar Apartments, the 
Partnership assumed tax-exempt mortgage loans.  As of March 31, 1999, the 
aggregate outstanding balance of these mortgage loans was $10,975,000.  The 
mortgage loans bear interest at floating rates which were 3.00% and 3.15% at 
March 31, 1999.  

In addition to making property acquisitions, the Partnership requires cash to 
pay its operating expenses and for periodic distributions to its BUC holders.  
On April 1, 1999, the Partnership increased the annual distribution rate 
from $.80 per BUC ($.0667 per month) to $.85 per BUC ($.0708) effective with 
the April distribution payable in May.  The following table sets forth 
information regarding cash distributions paid to BUC holders during the 
periods shown:

Distributions

Cash distributions paid or accrued per BUC were as follows:
<TABLE>
<CAPTION>
                                                                                          For the Three         For the Three
                                                                                           Months Ended          Months Ended
                                                                                         March 31, 1999        March 31, 1998
                                                                                         ---------------       ---------------
<S>                                                                                      <C>                   <C>
Regular monthly distributions
	Income                                                                                  $        .0209       $         .0697
	Return of capital                                                                           					.1792                 .1178
                                                                                         ---------------       ---------------
                                                                                         $        .2001        $        .1875
                                                                                         ===============       ===============
Distributions
	Paid out of current and prior undistributed cash flow                                   $        .2001      $   		     .1875
                                                                                         ===============       ===============
</TABLE>

The principal sources of cash available for the payment of expenses and 
distributions are:  (i) net rental revenues generated by the Partnership's 
real estate, (ii) interest income earned on temporary investments and (iii) 
undistributed cash held by the Partnership.  Future distributions to BUC 
holders will depend on the amount of net rental income and interest income 
earned by the Partnership and the amount of undistributed cash.  The 
Partnership believes that cash-on-hand and cash provided by net rental income 
and interest income will be adequate to meet its projected short-term and 
long-term liquidity requirements.  Under the terms of its Partnership 
Agreement, the Partnership has the authority to enter into short-term and 
long-term debt financing arrangements.  However, the Partnership currently 
does not anticipate entering into such arrangements for purposes of paying 
expenses and making distributions.  However, in connection with the 
acquisition of additional real estate, the Partnership does expect to borrow 
additional amounts through the issuance of tax-exempt mortgage bonds or 
through the assumption of existing taxable mortgage debt.  The Partnership is 
not authorized to issue additional BUCs to meet short-term or long-term 
liquidity requirements.


















<PAGE>                               - 11 -

Asset Quality

It is the policy of the Partnership to make a periodic review of its real 
estate and adjust, when necessary, the carrying value of such real estate. 
Each real estate property held by the Partnership is recorded at the lower of 
cost or fair value.  Fair value is based on management's best estimate of the 
net realizable value of the properties.  The carrying value of each real 
estate property owned by the Partnership is adjusted when there are 
significant declines in the estimated net realizable value.

Internal property valuations and reviews performed during the three months 
ended March 31, 1999, indicated that the real estate recorded on the 
balance sheet at March 31, 1999, required no adjustments to the current 
carrying amount.

Results of Operations

The table below compares the results of operations for each period shown.

<TABLE>
<CAPTION>
                                                                        For the Three      	For the Three         	 	Increase
                                                                     	   Months Ended       	Months ended           (Decrease)
																																																																							March 31, 1999						March 31, 1998											From 1998
                                                                       ---------------     ---------------     ---------------
<S>                                                                    <C>                 <C>                 <C>
Rental income                                                          $    4,584,250      $    3,089,924      $    1,494,326
Mortgage bond investment income                                               			-          				 	277,564   			   	  (277,564)
Interest income on temporary cash investments                                 168,602            	 74,350           	  94,252
                                                                       ---------------     ---------------     ---------------
                                                                            4,752,852           3,441,838         		1,311,014
                                                                       ---------------     ---------------     ---------------
Real estate operating expenses                                              2,113,404           1,485,232             628,172
Depreciation                                                                  933,901             614,274           	 319,627
Interest expense                                                              793,736             430,752          	  362,984
General and administrative expenses                                           433,478             337,473            	 96,005
																																																																							---------------     ---------------     ---------------
                              																																													 4,274,519	          2,867,731        	  1,406,788
                                                                       ---------------     ---------------     ---------------
Net income                                                             $   			478,333    	  $     574,107    	$ 		    (95,774)
                                                                       ===============     ===============     ===============
</TABLE>

Rental income increased $1,494,326 for the three months ended March 31, 1999, 
compared to the same period in 1998. The increase is primarily attributable 
to:  (i) a $523,000 increase resulting from the acquisition of St. Andrews at 
Westwood Apartments in September 1998; (ii) a $381,000 increase resulting from 
the acquisition of Littlestone at Village Green in September 1998; (iii) a 
$286,000 increase resulting from the acquisition of The Hunt Apartments in 
December 1998; (iv) a $178,000 increase due to the acquisition of Greenbriar 
Apartments in December 1998, and (v) a $126,000 increase in rental income at 
the Partnership's other properties.

The Partnership earned $277,564 of mortgage bond investment income during the 
three months ended March 31, 1998.  Due to the sale of the tax-exempt bond 
secured by Avalon Ridge on May 1, 1998, the Partnership earned no such income 
during the three months ended March 31, 1999.  

Interest income on temporary cash investments increased $94,252 for the three 
months ended March 31, 1999, compared to the same period in 1998 due primarily 
to an increase in the average cash balance. The increase in the average cash 
balance is attributable primarily to the temporary investment of proceeds from 
the offerings of multifamily housing revenue refunding bonds and proceeds 
received from the disposition of the Avalon Ridge mortgage bond.

Real estate operating expenses increased $628,172 for the three months ended 
March 31, 1999, compared to the same period in 1998.  This increase is 
attributable to:  (i) a $233,000 increase resulting from the acquisition of 
St. Andrews at Westwood Apartments in September 1998; (ii) a $164,000 increase 
resulting from the acquisition of Littlestone at Village Green in September 
1998; (iii) a $100,000 increase resulting from the acquisition of The Hunt 
Apartments in December 1998; (iv) an $81,000 increase from the acquisition of 
Greenbriar Apartments in December 1998; and (v) a $50,000 increase in the real 
estate operating expenses at the Partnerships other properties.

<PAGE>                               - 12 -

Depreciation expense increased $319,627 for the three months ended March 31, 
1999, compared to the same period in 1998.  The increase is primarily 
attributable to:  (i) a $130,000 increase resulting from the acquisition of 
St. Andrews at Westwood Apartments in September 1998; (ii) a $93,000 increase 
resulting from the acquisition of Littlestone at Village Green in September 
1998; (iii) a $64,000 increase resulting from the acquisition of The Hunt 
Apartments in December 1998; and (iv) a $33,000 increase in depreciation 
expense from the acquisition of Greenbriar Apartments in December 1999.

Interest expense increased $362,984 for the three months ended March 31, 1999, 
compared to the same period in 1998 due to:  (i) interest of $171,000 incurred 
on bonds payable of $13,090,000 issued in April 1998; (ii) interest of 
$110,000 incurred on the mortgage note payable on Littlestone at Village 
Green; (iii) interest of $42,000 incurred on the mortgage note payable on 
Greenbriar Apartments; (iv) interest of $33,000 incurred on the mortgage note 
payable on The Hunt Apartments and (v) a $7,000 increase in interest expense 
on the Partnership's other debt obligations.  

General and administrative expenses for the three months ended March 31, 1999 
increased $96,005 compared to the same period of 1998.  This increase is 
primarily due to:  (i) an increase of approximately $56,000 in administrative 
fees resulting from the acquisition of additional properties during 1998, (ii) 
an increase of approximately $28,000 in salaries and related expenses, and  
(iii) an increase of $12,000 in other general and administrative expenses.

Year 2000

The Partnership does not own or operate its own computer system and owns no 
business or other equipment.  However, the operation of the Partnership's 
business relies on the computer system and other equipment maintained by 
America First Companies L.L.C., the parent company of its general partner 
("America First").  In addition, the Partnership has business relationships 
with a number of third parties whose ability to perform their obligations to 
the Partnership depend on such systems and equipment.  Some or all of these 
systems and equipment may be affected by the inability of certain computer 
programs and embedded circuitry to correctly recognize dates occurring after 
December 31, 1999.  America First has adopted a plan to deal with this 
so-called "Year 2000 problem" with respect to its information technology 
("IT") systems, non-IT systems and third party business relationships.

State of Readiness

The IT system maintained by America First consists primarily of personal 
computers, most of which are connected by a local area network.  All 
accounting and other record keeping functions relating to the Partnership that 
are conducted in house by America First are performed on this PC-LAN system.  
America First does not own or operate any "mainframe" computer systems.  The 
PC-LAN system runs software programs that America First believes are 
compatible with dates after December 31, 1999.  America First has engaged a 
third party computer consulting firm to review and test its PC-LAN system to 
ensure that it will function correctly after that date and expects that this 
process, along with any necessary remediation, will be completed by mid-1999.  
America First believes any Year 2000 problems relating to its IT systems will 
be resolved without significant operational difficulties.  However, there can 
be no assurance that testing will discover all potential Year 2000 problems or 
that it will not reveal unanticipated material problems with the America First 
IT systems that will need to be resolved.

Non-IT systems include embedded circuitry such as microcontrollers found in 
telephone equipment, security and alarm systems, copiers, fax machines, mail 
room equipment, heating and air conditioning systems and other infrastructure 
systems that are used by America First in connection with the operation of the 
Partnership's business.  America First is reviewing its non-IT systems along 
with the providers that service and maintain these systems, with initial 
emphasis being placed on those, such as telephone systems, which have been 
identified as necessary to America First's ability to conduct the operation of 
the Partnership's business activities.  America First expects that any 
necessary modification or replacement of such "mission critical" systems will 
be accomplished by mid-1999.






<PAGE>                               - 13 -

The Partnership has no control over the remediation efforts of third parties 
with which it has material business relationships and the failure of certain 
of these third parties to successfully remediate their Year 2000 issues could 
have a material adverse effect on the Partnership.  Accordingly, America First 
has undertaken the process of contacting each such third party to determine 
the state of their readiness for Year 2000.  Such parties include, but are not 
limited to, the Partnership's transfer and paying agent and the financial 
institutions with which the Partnership maintains accounts.  America First has 
received initial assurances from certain of these third parties that their 
ability to perform their obligations to the Partnership are not expected to be 
materially adversely affected by the Year 2000 problem.  America First will 
continue to request updated information from these material third parties in 
order to assess their Year 2000 readiness.  If a material third party vendor 
is unable to provide assurance to America First that it is, or will be, ready 
for Year 2000, America First intends to seek an alternative vendor to the 
extent practical.

Costs

All of the IT systems and non-IT systems used to conduct the Partnership's 
business operations are owned or leased by America First.  Under the terms of 
its partnership agreement, neither America First nor the Partnership's general 
partner may be reimbursed by the Partnership for expenses associated with 
their computer systems or other business equipment.  Therefore, the costs 
associated with the identification, remediation and testing of America First's 
IT and non-IT systems will be paid by America First rather than the 
Partnership.  The Partnership will bear its proportionate share of the costs 
associated with surveying the Year 2000 readiness of third parties.  However, 
the Partnership's share of the costs associated with these activities is 
expected to be insignificant.  Accordingly, the costs associated with 
addressing the Partnership's Year 2000 issues are not expected to have a 
material effect on the Partnership's results of operations, financial position 
or cash flow.

Year 2000 Risks

The Partnership's general partner believes that the most reasonably likely 
worst-case scenario will be that one or more of the third parties with which 
it has a material business relationship will not have successfully dealt with 
its Year 2000 issues and, as a result, is unable to provide services or 
otherwise perform its obligations to the Partnership.  For example, if the 
Partnership's transfer and paying agent experiences Year 2000-related 
difficulties, it may cause delays in making distributions to BUC holders or in 
the processing of trading of BUCs.  It is also possible that one or more of 
the IT and non-IT systems of America First will not function correctly, and 
that such problems may make it difficult to conduct necessary accounting and 
other record keeping functions for the Partnership.  However, based on 
currently available information, the general partner does not believe that 
there will be any protracted systemic failures of the IT or non-IT systems 
utilized by America First in connection with the operation of the 
Partnership's business.

Contingency Plans

Because of the progress which America First has made toward achieving Year 
2000 readiness, the Partnership has not made any specific contingency plans 
with respect to the IT and non-IT systems of America First.  In the event of a 
Year 2000 problem with its IT system, America First may be required to 
manually perform certain accounting and other record-keeping functions.  
America First plans to terminate the Partnership's relationships with material 
third party service providers that are not able to represent to America First 
that they will be able to successfully resolve their material Year 2000 issues 
in a timely manner.  However, the Partnership will not be able to terminate 
its relationships with certain third parties, who may experience Year 2000 
problems.  The Partnership has no specific contingency plans for dealing with 
Year 2000 problems experienced with these third parties.









<PAGE>                               - 14 -

All forecasts, estimates or other statements in this report relating to the 
Year 2000 readiness of the Partnership and its affiliates are based on 
information and assumptions about future events.  Such "forward-looking 
statements" are subject to various known and unknown risks and uncertainties 
that may cause actual events to differ from such statements.  Important 
factors upon which the Partnership's Year 2000 forward-looking statements are 
based include, but are not limited to, (a) the belief of America First that 
the software used in IT systems is already able to correctly read and 
interpret dates after December 31, 1999 and will require little or any 
remediation; (b) the ability to identify, repair or replace mission critical 
non-IT equipment in a timely manner, (c) third parties' remediation of their 
internal systems to be Year 2000 ready and their willingness to test their 
systems interfaces with those of America First, (d) no third party system 
failures causing material disruption of telecommunications, data transmission, 
payment networks, government services, utilities or other infrastructure, (e) 
no unexpected failures by third parties with which the Partnership has a 
material business relationship and (f) no material undiscovered flaws in 
America First's Year 2000 testing process.

Forward Looking Statements

This report contains forward looking statements that reflect management's
current beliefs and estimates of future economic circumstances, industry
conditions, the Partnership's performance and financial results.  All
statements, trend analysis and other information concerning possible or
assumed future results of operations of the Partnership and the real estate
investments it has made (including, but not limited to, the information
contained in "Management's Discussion and Analysis of Financial Condition and
Results of Operations"), constitute forward-looking statements.  BUC holders
and others should understand that these forward looking statements are subject
to numerous risks and uncertainties and a number of factors could affect the
future results of the Partnership and could cause those results to differ
materially from those expressed in the forward looking statements contained
herein.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.
There have been no material changes in the Partnership's market risk since 
December 31, 1998.





































<PAGE>                               - 15 -
PART II.  OTHER INFORMATION

     Item 6.   Exhibits and Reports on Form 8-K

          (a)  Exhibits

               3.   Articles of Incorporation and Bylaws of America First
                    Fiduciary Corporation Number Eight (incorporated by
                    reference to Form S-11 Registration Statement filed May 8,
                    1986, with the Securities and Exchange Commission by
                    America First Tax Exempt Mortgage Fund 2 Limited
                    Partnership (Commission File No. 33-5521)).

               4(a) Form of Certificate of Beneficial Unit Certificate
                    incorporated by reference to Exhibit 4.1 to Registration
                    Statement on Form S-4 (Commission File No. 333-2920) filed
                    by the Registrant on March 29, 1996).

               4(b) Agreement of Limited Partnership of the Registrant
                    (incorporated by reference to Exhibit 4(b) to Form 8-K
                    (Commission File No. 0-20737) filed by the Registrant on
                    August 23, 1996).

              10(a) Settlement Agreement among the Registrant and Jackson Park
                    Place, Artel Farms, Inc., and David A. Dyck dated April
                    11, 1997 (incorporated herein by reference to Form 10-Q
                    dated September 30, 1997 filed pursuant to Section 13 or
																			 15(d) of the Securities Exchange Act of 1934 by America
																			 First Apartment Investors, L.P. (Commission File No. 
																				0-20737)).

              10(b) $12,410,000 Promissory Note, dated December 11, 1997,
                    from Park Trace Apartments Limited Partnership to the City
                    of Aurora, Illinois (The Covey at Fox Valley Apartment
                    Project) Series 1997 (incorporated herein by reference to
                    Form 10-K dated December 31, 1997 filed pursuant to
                    Section 13 or 15(d) of the Securities Exchange Act of 1934
                    by America First Apartment Investors, L.P.  (Commission
                    File No. 0-20737)).

              10(c) Loan Agreement, dated December 1, 1997, between Park
                    Trace Apartments Limited Partnership and City of Aurora,
                    Illinois (The Covey at fox Valley Apartment Project)
                    Series 1997 (incorporated herein by reference to Form 10-K
                    dated December 31, 1997 filed pursuant to Section 13 or
                    15(d) of the Securities Exchange Act of 1934 by America
                    First Apartment Investors, L.P.  (Commission File No.
                    0-20737)).

              10(d) Indenture of Trust, dated December 1, 1997, between City
                    of Aurora, Illinois and UMB Bank, National Association
                    (The Covey at Fox Valley Apartment Project) Series 1997
                    (incorporated herein by reference to Form 10-K dated
                    December 31, 1997 filed pursuant to Section 13 or 15(d)
                    of the Securities Exchange Act of 1934 by America First
                    Apartment Investors, L.P.  (Commission File No.
                    0-20737)).

              10(e) $1,385,000 Promissory Note, dated April 2, 1998, from
                    Arizona Coral Point Apartments Limited Partnership to The
                    Industrial Development authority of the county of Maricopa
                    (Coral Point Apartments Project) Series 1998A and 1998B.
                    (incorporated herein by reference to Form 10-Q dated
																			 June	30, 1998 filed pursuant to Section 13 or 15(d) of the
																				Securities Exchange Act of 1934 by America First Apartment 
																				Investors, L.P. (Commission File No. 0-20737)) 

              10(f) $11,705,000 Promissory Note, dated April 2, 1998, from
                    Arizona Coral Point Apartments Limited Partnership to The
                    Industrial Development authority of the county of Maricopa
                    (Coral Point Apartments Project) Series 1998A and 1998B.
                    (incorporated herein by reference to Form 10-Q dated
																			 June	30, 1998 filed pursuant to Section 13 or 15(d) of the
																				Securities Exchange Act of 1934 by America First Apartment 
																				Investors, L.P. (Commission File No. 0-20737)) 

<PAGE>                              - 16 -

              10(g) Loan Agreement, dated March 1, 1998, between The
                    Industrial Development Authority of the County of Maricopa
                    and Arizona Coral Point Apartments Limited Partnership
                    (Coral Point Apartments Project) Series 1998A and 1998B.
                    (incorporated herein by reference to Form 10-Q dated
																			 June	30, 1998 filed pursuant to Section 13 or 15(d) of the
																				Securities Exchange Act of 1934 by America First Apartment 
																				Investors, L.P. (Commission File No. 0-20737)) 

              10(h) Indenture of Trust, dated March 1, 1998, between The
                    Industrial Development Authority of the County of Maricopa
                    and UMB Bank, N.A. (Coral Point Apartments Project) Series
                    1998A and 1998B.  (incorporated herein by reference to Form
																			 10-Q dated June	30, 1998 filed pursuant to Section 13 or
																				15(d) of the	Securities Exchange Act of 1934 by America 
																				First Apartment Investors, L.P. (Commission File No. 
																				0-20737)) 

														27.  	Financial Data Schedule
	
          (b)  Reports on Form 8-K

               The Registrant did not file a report on Form 8-K during 
               the quarter for which this report is filed.



















































<PAGE>                              - 17 -
	                                  SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

Dated:  May 12, 1999					     AMERICA FIRST APARTMENT INVESTORS, L.P.

                              By America First Capital
                                   Associates Limited
                                   Partnership Four, General
                                   Partner of the Registrant

                              By America First Companies L.L.C.,
                                   General Partner of America First Capital
                                   Associates Limited Partnership Four

                              By /s/ Michael Thesing
                                   Michael Thesing
                                   Vice President and Principal
                                   Financial Officer























































<PAGE>                               - 18 -