<PAGE>
 
                      SECURITIES AND EXCHANGE COMMISSION

                            Washington, D.C.  20549


                                   FORM 10-K

                    Annual Report Under Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

                    For the Year Ended December 31, 1994

                         Commission File Number 2-39494

                           AMERICAN HOUSING PARTNERS

                        A California Limited Partnership

                 I.R.S. Employer Identification No. 95-6345278

      12100 Wilshire Boulevard, Suite 1400, Los Angeles, California  90025

       Registrant's Telephone Number, Including Area Code (310) 207-0704

      Securities Registered Pursuant to Section 12(b) or 12(g) of the Act:

                                      NONE

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed with the Commission by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding twelve months (or 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 ___  No  X
                                            ---

The registrant is a limited partnership and therefore has no voting stock.  As
of December 31, 1994, 7,005 limited partnership interests ("Interests") were
outstanding, which had been issued originally in 1971.  The Interests are not
currently traded on any market.  Therefore, no market selling price and no
average bid or asked prices exist for the 60 days prior to the date of filing.
<PAGE>
 
                               TABLE OF CONTENTS

<TABLE> 
<CAPTION> 
                                                                            Page
 
PART I.
<S>                                                                         <C>
Item 1.        Business                                                       1
                                                                              
Item 2.        Properties                                                     3
                                                                              
Item 3.        Legal Proceedings                                              4
                                                                             
Item 4.        Submission of Matters to a Vote of Security Holders            6
                                                                             
                                                                             
PART II.                                                                     
                                                                             
Item 5.        Market for the Registrant's Partnership Interests              7
                                                                             
Item 6.        Selected Financial Data                                        8
                                                                             
Item 7.        Management's Discussion and Analysis of                        8
               Financial Condition and Results of Operations                 
                                                                             
Item 8.        Financial Statements and Supplementary Data                    9
                                                                              
Item 9.        Changes in and Disagreements with Accountants                  9
               on Accounting and Financial Disclosure                        
                                                                             
                                                                             
PART III.                                                                    
                                                                             
Item 10.       Directors and Executive Officers of the Registrant            10
                                                                             
Item 11.       Executive Compensation                                        11
                                                                             
Item 12.       Partnership Interest Ownership of Certain                     11
               Beneficial Owners and Management                              
                                                                             
Item 13.       Certain Relationships and Related Transactions                11
                                                                             
                                                                             
PART IV.                                                                     
                                                                             
Item 14.       Exhibits, Financial Statement Schedules                       12
               and Reports on Form 8-K
</TABLE>
<PAGE>
 
                                     PART I

ITEM 1. BUSINESS

     American Housing Partners ("AHP"), a California limited partnership, was
formed on June 7, 1971, to invest through local limited partnerships in
government assisted multi-family housing developments ("Projects" or 
"Government-Assisted Properties"). Each local limited partnership owns,
individually, a single low to moderate income multi-family housing project which
is subsidized and/or mortgage-insured by the federal government. During 1994,
and as of December 31, 1994, AHP held interests in five local limited
partnerships which own and operate a Project. The general partner of AHP is NIDC
Managers, Inc., a Delaware corporation ("NIDMI" or "the General Partner"). See
Item 12 "Partnership Interest Ownership of Certain Beneficial Owners and
Management".

     In order to stimulate private investment in low and moderate income
housing of the types in which AHP has invested, the federal government has
provided investors with significant ownership incentives, including interest
subsidies, rent supplements, mortgage insurance and other measures, with the
intent of reducing the risks and providing the investors/owners with certain tax
benefits, plus limited cash distributions and the possibility of long-term
capital gains. However, there are significant risks inherent in this type of
housing. Long-term investments in real estate limit the ability of AHP to vary
its portfolio in response to changing economic, financial and investment
conditions, and such investments are subject to changes in economic
circumstances and housing patterns, rising operating costs and vacancies, rent
controls and collection difficulties, costs and availability of energy, as well
as other factors which normally affect real estate values. In addition, these
projects usually involve greater management burdens and operating expenses than
conventional housing projects.

     AHP's Projects were typically initiated by private developers who optioned
or acquired the sites and applied for Federal Housing Administration (FHA)
mortgage insurance and subsidies. AHP became the sole limited partner in local
limited partnerships formed to become the owners of such Projects. As a limited
partner, AHP's liability for obligations of the local limited partnership is
limited to its investment. The developer typically became the managing general
partner of the local limited partnership, with responsibility for developing,
constructing, maintaining, operating and managing the Project. Generally, NIDC
Housing Corporation, a Delaware corporation ("NIDHC"), or NIDC Asset Management,
Inc., a Delaware corporation ("NIDAM"), is a co-general partner of each local
limited partnership. As such, NIDHC or NIDAM has the right to participate in
certain decisions that affect AHP's investment in the local limited partnership.
NIDHC and NIDAM also have the right to replace the developer as the managing
general partner of the local limited partnership and to assume day-to-day
operational control of the local limited partnership's affairs upon the
occurrence of certain events considered adverse to AHP's investment. NIDHC and
NIDAM are affiliates of NIDMI. See Item 12 "Partnership Interest Ownership of
Certain Beneficial Owners and Management".

                                      -1-
<PAGE>
 
     Although each of the Projects in which AHP holds an indirect interest
must compete in the marketplace for tenants, the receipt of interest subsidies
and rent supplements from the federal government make it possible to offer these
dwelling units to tenants with low and moderate income at prices below the
market rate for comparable dwelling units in the area.

     During 1994, the Projects operated, in the aggregate, with positive cash
flow. The distributions from the local limited partnerships are limited by the
Projects' regulatory agreements with HUD or other similar state agencies, to 6%
per annum of the original equity provided to the Project (as determined by HUD),
payable only when cash is available as determined by a formula provided by HUD.
Of the distributions payable to AHP and the general partners of the local
limited partnerships at December 31, 1994, a portion is currently payable and
the remainder is deferred until there is available cash.

     In 1983, AHP adopted a policy of selling the Projects in which it holds an
interest (through the local limited partnership) when such sale can be made on
satisfactory terms and deemed in the best interest of the partners of AHP. This
policy resulted in two Project sales in 1983, four Project sales in 1984, one
Project sale in 1985 and three Project sales in 1989. Of the 20 Projects in
which AHP held an interest through its ownership of local limited partnerships
(19 originally and one acquired), five remain and one, Woodwork Apartments,
which was sold in 1985, still has not had a final closing. See Item 2.
Properties and Item 3. Legal Proceedings. Due to certain partnership amendments
approved by the limited partners in December 1984, NIDMI has been granted
additional discretion to consummate the sale of the remaining Projects in which
AHP holds an interest.

     In addition the term of AHP under its original Partnership Agreement
expired on December 31, 1993, and has not been renewed.  AHP, has, therefore
been operating since January 1, 1994 as a partnership in dissolution.  As such,
AHP cannot acquire new properties or other assets and NIDMI has been obliged to
bring about the orderly liquidation of the Partnership, and the distribution of
its assets to its Partners.  Consequently, NIDMI has continued in its efforts to
finalize the sale of the remaining Projects in which AHP holds an interest.
 
     NIDMI has been unable to find buyers for interests which continue to be
controlled by others at prices sufficient to justify their disposition.. Sale of
any Project is subject to the approval of all general partners of the local
limited partnership as well as approval of any such transfer by HUD. Because
either such approval, if not forthcoming, could (as has previously happened)
delay or block the sale of any Project owned by that partnership, any attempt to
sell an investment has had to be limited to sale of AHP's interest in a local
limited partnership.

     NIDMI has, nevertheless, taken steps to determine the liquidation value of
the portfolio. NIDMI has tried to (a) evaluate each property, and (b) assign a
value to the Partnership's interest in such property or the debt secured
directly or indirectly by such property utilizing a variety of means including
an expert review of the evaluation methodologies used. The General Partner has
asked the managing general partners of those local limited partnerships still
owning properties to make offers to the Partnership and have similarly sought
offers from the managing general partners of the partnerships owing money to

                                      -2-
<PAGE>
 
the remaining local limited partnerships to purchase the wraparound notes and
partnership interest.
 
     While some properties have sufficient value and marketability to create the
possibility, at least that AHP's interest therein could be sold for a reasonable
price, other assets may not be readily marketable. For some properties, there
may be no buyer whatsoever. While NIDMI has delayed liquidation of AHP because
of the difficulty in disposing of assets it does not believe that it can or
should delay further, since the Partnership's term has expired.

     The General Partner will, therefore, sell AHP's assets for the best price
available and distribute the proceeds of the sale to the partners. If some sales
cannot be completed by that date or some properties cannot be disposed of at
all, NIDMI will acquire the unsold assets in order to permit the liquidation and
termination of before the beginning of the 1999 tax year.

ITEM 2. PROPERTIES

     AHP holds interests as a limited partner in local limited partnerships that
have developed, own, and operate government-assisted multi-family housing
developments. See Item 1. Business. The properties were developed from the
proceeds of mortgage loans obtained by the local limited partnerships to provide
affordable housing to the low and moderate income groups.

      The five Projects are composed primarily of garden and townhouse type
apartments representing 518 units located in four states.  The typical Project
includes a mix of 1, 2, and 3 bedroom units, laundry facilities and parking
areas, with some projects containing a playground and/or swimming pool.  The
individual units include all normal amenities with most including automatic
dishwasher and air conditioning.

      In 1983, AHP adopted a policy of selling the Projects in which it holds an
interest (through the local limited partnership) when such sale can be made on
satisfactory terms and deemed in the best interest of the partners of AHP. See
Item 1. Business.

     AHP sold its Partnership interest in 3 Projects in 1989. Set forth below is
a schedule as of December 31, 1994 of Projects owned by local limited
partnerships in which AHP is a limited partner, together with the current
occupancy status of each Project.

                                      -3-
<PAGE>
 
<TABLE>
<CAPTION>
============================================================================================================

                                     SCHEDULE OF PROJECTS OWNED BY LOCAL LIMITED PARTNERSHIPS
                                                  IN WHICH AHP HAS AN INVESTMENT
 
  Name & Location     No. Units  Project Type      Insured and/or             Units      Units Occupied/
                                                  Subsidized Under         Authorized    Percentage Total
                                                                            For Rental         Units
                                                                            Assistance
                                                                             Section 8
============================================================================================================
<S>                   <C>        <C>              <C>                      <C>           <C>           <C>
Jennifer Apts.           50         Garden        FHA Sec. 236                    30         50        100%
Columbus, OH                    
                                
Milham Meadows I        102         Garden        FHA Sec. 236                    45        126         84%
Portage, MI              48       Townhouse       Michigan State 
                                                  Housing Devel Auth
                                
Pine Villa               50         Garden        FHA Sec.236                     40         50        100%
Spokane, WA                     
                                
Tanglewood Terrace      196         Garden        FHA Sec. 221(d)(4)              *         163         83%
Texarkana, TX                   
                                
Woodhaven Apts.          72         Garden        FHA Sec. 221(d)(4)              *          72        100%
Spokane, WA
</TABLE>

*  RENTS DECONTROLLED IN 1984.

ITEM 3. LEGAL PROCEEDINGS

     The 1991 Report contained a description of a series of administrative and
legal proceedings relating to disputes between the Department of Housing and
Urban Development ("HUD") and Associated Financial Corporation ("AFC") and its
affiliates (collectively, the "AFC Group"). Members of the AFC Group include
both General Partners of the Partnership and general partners of the Operating
Partnerships. The information relating to such proceedings, contained on pages 4
through 30 of the 1991 Report, is incorporated herein by this reference.

     In April, 1994, members of the AFC Group entered into a comprehensive
settlement agreement with HUD (the "Settlement Agreement") on terms which the
General Partners believe are decisively favorable to the AFC Group. Under the
Settlement Agreement, all of HUD's administrative proceedings against members of
the AFC Group, including those relating to the dispute regarding Westport
Housing Corporation, were dismissed on terms which do not permit HUD to
reinstitute any of the proceedings, and HUD agreed to refrain from using any of
the facts it alleged in the administrative proceedings or other facts relating
to the current condition of the properties owned by members of the AFC Group in
any future administrative proceedings. HUD also terminated the 1992 suspension
and proposed debarment of the members of the AFC Group, including the General
Partners. Under the Settlement Agreement, members of the AFC Group will regain
the unrestricted right to participate in HUD programs and otherwise do business
with HUD with respect to Government Assisted Properties.

                                      -4-
<PAGE>
 
     As described on pages 6-9 of the 1991 Report, which pages are incorporated
herein by this reference, the various partnerships affiliated with the AFC Group
and others initiated an actions against HUD officials in United States District
Court in January, 1993. In one case involving the Germano Partnership, the
District Court judge granted to the plaintiffs substantially all the relief they
had requested, including requiring HUD to renew its Section 8 Housing Assistance
Payments Contract ("HAP Contract") with the Germano Partnership. The plaintiffs
in three similar District Court actions, described or referred to on pages 9-12
of the 1991 Report and each involving a property owned by a member of the AFC
Group, also obtained substantially all the relief they sought, including in each
case renewing an existing HAP Contract or entering into a new HAP Contract.
After obtaining the relief they sought, the plaintiffs in the District Court
actions consented to dismissals of the actions.

     In view of the favorable results they had obtained in the District Court
actions, plaintiffs in the four actions filed petitions for attorney's fees
against HUD. Under the Settlement Agreement, HUD agreed to pay a total of
approximately $167,500 to plaintiffs in the District Court actions, and the
plaintiffs agreed to move for dismissal of their petitions for attorney's fees.

     The 1991 Report contained a description of a civil action relating to Tyler
House, a Government-Assisted Property in which affiliates of the General
Partners had invested. See pages 24 and 29 of the 1991 Report, which information
is incorporated herein by this reference. As indicated therein, the defendants
appealed the judgments based upon the verdict against them. The appellate court
subsequently denied the defendants' appeal, and the defendants then duly
satisfied the judgment. The General Partners' prediction that the judgment would
not interfere with the performance by the General Partner of its duties to the
Partnership and that the Partnership would not be adversely affected by the
result in the litigation proved to be correct.

     On May 8, 1997, the United States filed an action against Associated
Financial Corporation, certain members of the AFC Group, including Messrs. Ross
and Rozet, and others, in the United States District Court for the Northern
District of California charging that the defendants were wrongfully
participating in the fees earned by the management agent for several properties
(not including any of the properties invested in by the Partnership) and had not
disclosed this arrangement and, thus, were violating provisions of the
applicable regulatory agreements and other agreements governing the subject
properties. The Complaint did, however, allege that the defendants made certain
false claims regarding the condition of the Sierra Nevada property. Defendants
filed an answer on August 11, 1997, denying the material allegations of the
Complaint, and asserting various separate and additional defenses.

     The government filed an amended complaint on March 2, 1998, adding
additional defendants none of whom are part of the AFC Group and added a claim
that the defendants, including the new defendants made false claims in
connection with the obtaining of insurance for various HUD-insured properties.
The defendants have filed answers to the First Amended Complaint, again denying
the material allegations of the Complaint and asserting various separate and
additional defenses.

     While substantial document discovery has been completed, the defendants
intend to move to compel significant delivery from the government of substantial
additional

                                      -5-
<PAGE>
 
documentation. Deposition discovery is in its early stages. Given the defendants
need to obtain significant additional discovery, counsel can offer no opinion as
to the outcome of the litigation at this time.

      The General Partner believes that when all of the facts are presented
to an impartial judge, the defendants will be exonerated. However, the complaint
contains serious allegations against the defendants and every effort will be
made to show that the government is wrong in bringing the lawsuit. At this time,
the general partner does not believe that there will be any material adverse
affect to the Partnership and the operation of its investments, much like the
previous litigation with HUD described above.

Woodbrook Apartments

      A suit was commenced in January, 1976, in the New York Supreme Court by
Woodbrook Houses Associates against Hercoform Marketing (the general
contractor), Tiffany-Armstrong (the architect), Beardsley and Beardsley (site
engineers) and Seaboard Surety Company (the general contractor's insurer) to
recover damages for construction deficiencies. The cost of correcting these
deficiencies and the additional expenses caused by these deficiencies is
estimated to exceed $700,000. The general contractor has interposed
counterclaims in the amount of $58,000. Because of the complexity of this
lawsuit, legal counsel cannot express an opinion on its probable outcome. As a
condition of the sale of Woodbrook Apartments, primary responsibility to pursue
this matter shifted to the new owners, CPY Partnership. However, the Registrant
continues to be involved in the case and will share in the case and will share
in any ultimate award or settlement obtained by Woodbrook Houses Associates.

     A suit involving Woodbrook Apartments was commenced on January 11, 1983 in
the New York Supreme Court by K-Line Windows, Inc. against Mayzan Management
Corporation (the on-site management company for Woodbrook Apartments) and NIDAM.
The action is based upon a claim for an unpaid contract sum for the installation
of storm windows at the project. On September 4, 1984, a summary judgment was
granted to the plaintiff in the amount of $56,877. The defendants have
interposed various motions to delay execution of this judgment. Settlement
negotiations are presently underway to resolve this judgment. As a condition of
the sale of Woodbrook Apartments, CPY Partnership agreed to assume full
financial responsibility for the settlement of this suit although NIDAM remains
a defendant in this action.

     At this time, it appears that neither of the two foregoing lawsuits is
being actively pursued by any party to either suit.

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

     No matter was submitted during the fourth quarter of the fiscal year ending
December 31, 1994 to a vote of security holders.

                                      -6-
<PAGE>
 
                                    PART II

ITEM 5. MARKET FOR THE REGISTRANT'S PARTNERSHIP INTERESTS

     AHP partnership interests are not actively traded and no public trading
market exists.  From time to time, a sale of the partnership interests is made
at a price negotiated between the buyer and seller.  The transactions are
handled through a limited number of broker-dealers.

     As of December 31, 1994 there were 5 general partner interests held by
NIDMI and 7,005 limited partner interests held by 517 limited partners.  This
figure is based upon the number of record holders as reported by the
Registrant's transfer agent.

     During 1990 one cash distribution was made.  On September 3, 1990, $576,923
was distributed to partners of record as of December 29, 1989.

     During 1991 no cash distributions were made.

     During 1992 no cash distributions were made.
 
     During 1993 no cash distributions were made.
 
     During 1994 no cash distributions were made.
 

                                      -7-
<PAGE>
 
ITEM 6. SELECTED FINANCIAL DATA

     The following summary of selected financial data should be read in
conjunction with Item 14, herein, which also includes a summary of AHP's
significant accounting policies.

<TABLE>
<CAPTION>
============================================================================================================
FOR THE YEAR                1994              1993              1992              1991               1990
ENDED DEC. 31:
<S>                       <C>               <C>               <C>               <C>                <C>
Interest and                2,533               -0-               -0-                301            17,851
other income
 
Distributions             559,041            62,409            15,756             26,487            41,012
in excess of
investment
 
Income (Loss)             369,769           (10,878)          (59,407)          (135,081)          (27,946)
from operations
 
Net earnings              369,769           (10,878)          (59,407)          (135,081)          (27,946)
(loss)
 
Net earnings                52.75             (1.55)            (8.47)            (19.27)            (3.99)
(loss) per
partnership
interest
 
AT YEAR END:
 
Total assets            9,851,368         9,725,524         9,884,036         10,118,280        10,507,582
 
Long-term debt         10,874,083        11,026,594        11,226,698         11,438,190        11,692,462
 
Partners'              (1,064,198)       (1,433,967)       (1,423,089)        (1,363,682)       (1,228,601)
deficit
 
Deficit per               (151.81)          (204.56)          (203.01)           (194.53)          (175.26)
partnership
interest
 
Distributions                 -0-               -0-               -0-                -0-                82
per
partnership
Interest
 
Number of                     517               509               505                501               497
limited
partners

============================================================================================================
</TABLE>

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATION.
 
RESULTS OF OPERATIONS:

     Payments received in 1994, 1993 and 1992 on notes receivable resulting from
project sales in prior years were limited to the amounts required to service the
underlying HUD mortgages on these projects. The Partnership also received
surplus cash distributions of

                                      -8-
<PAGE>
 
$559,041, $62,409 and $15,756 for 1994, 1993, and 1992, respectively. For income
tax purposes, AHP's share of net interest income recognized on the notes
receivable was $152,511 for 1994, compared with $200,104 and $211,492 for 1993
and 1992, respectively. For financial statement purposes, as the sales are
accounted for under the cost recovery method, all interest income is deferred
until the cost of the respective property is recovered.

     Total revenue generated in 1994 was $561,574 compared with $62,409 and
$15,756 for 1993 and 1992, respectively.  For all three years, distributions
received from partnerships in which AHP holds interests represent more than 99%
of total revenue.  For income tax purposes, cash distributions received are
treated as offsets to investment.

     Total expenses for 1994 were $191,805, compared with $73,287 and $75,163
for 1993 and 1992, respectively, an increase of 162% from 1993 to 1994 and a
decrease of 2% from 1992 and 1993.  The increase in 1994 compared to 1993 is
mainly due to an increase in professional fees of $130,500 paid to a company
affiliated with the general partner for asset management and preservation
services.

     Net income for 1994 was $369,769 compared to net losses of $10,878 and
$59,407 for 1993 and 1992, respectively.

LIQUIDITY AND CAPITAL RESOURCES:

     Although the Partnership is actively seeking to divest itself of projects
in which it has investments, the financial health and operating prospects of the
remaining projects is still viable.  Distributions of cash are still being
received from the remaining projects, and the Partnership continues to receive
proceeds from the prior sales.  There are currently no appreciable problems with
projects owned by partnerships in which AHP holds interests.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

     The financial statements together with the auditors' report thereon are set
forth at the pages indicated in Item 14 (a)(1) and (2).

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
        FINANCIAL DISCLOSURE.

     None

                                      -9-
<PAGE>
 
                                   PART III

ITEM 10. DIRECTORS AND OFFICERS OF THE REGISTRANT

     AHP has no officers or directors.  The officers and directors of NIDMI (the
General Partner) are as follows:

          NAME                     POSITION

          Deane Earl Ross          Director, President and Treasurer

          A. Bruce Rozet           Director and Chief Executive Officer

          Suzanne Magnuson         Secretary

     The following biographical information is presented for the officers and
directors of NIDMI.

     Mr. Ross has been a principal officer of the Associated Financial
Corporation ("AFC") group of companies, including affiliates of the General
Partner, since the inception of a predecessor corporation, Oakdale Corporation,
a California corporation (which is now a wholly-owned subsidiary), in 1973. The
AFC organization, including certain predecessors, has been continuously engaged
in the field of government-assisted low to moderate income housing developments
since its inception.

     Mr. Ross is a real estate executive with more than 35 years' experience in
the field of government-assisted housing.  In 1987, he testified before the U.S.
Senate Committee on Banking, Housing and Urban Affairs on matters relating to
housing legislation.  Mr. Ross earned a Bachelor's Degree in Real Estate &
Finance from the Wharton School of Finance & Commerce of the University of
Pennsylvania.

     Mr. Rozet has been Chairman of the Board of Associated Financial
Corporation and certain of its Affiliates, including AFC Capital Corporation,
since 1984, except for a brief period from August 1985 to February 1986.
Concurrently, from 1975 until 1987, he was also Chairman of the Board of
National Development Services Corporation, a California corporation engaged in
providing consulting services principally relating to the financial structuring
of government-assisted, low to moderate income housing developments.

     Mr. Rozet has been a financier for more than 25 years with substantial
experience in the field of real estate,  most significantly relating to
government subsidized multi-family residential housing.  Since 1972, Mr. Rozet
has been involved in the equity financing of approximately 500 government-
assisted apartment developments relating to approximately 50,000 apartment
units.  Mr. Rozet has served on a task force for the U.S. Department of Housing
and Urban Development formed to aid HUD personnel in the development and
implementation of advanced processing procedures.  Mr. Rozet has also provided
consulting services to Congressional staff personnel with respect to housing
legislation.  In 1988, Mr. Rozet testified before the U.S. House of
Representatives Committee on Ways and Means on matters relating to the Low
Income Housing Tax Credit.

                                      -10-
<PAGE>
 
     Mr. Rozet earned a Bachelor of Science Degree in Industrial Engineering
from Pennsylvania State University and completed graduate studies in Corporate
Finance and Strategic Planning at the University of California at Los Angeles
(UCLA).

     Ms. Magnuson is Secretary of National Palisades Corporation and has been an
executive officer to certain of its affiliates and predecessors since 1977.  In
June, 1987, Ms. Magnuson became Secretary of NIDMI.

ITEM 11. EXECUTIVE COMPENSATION

     AHP has no executive officers. No person acting in such capacity received
compensation in 1994 directly or indirectly from AHP.

ITEM 12. PARTNERSHIP INTEREST OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
         MANAGEMENT

     No person is known to own beneficially in excess of five percent of the
outstanding partnership interests of AHP. NIDMI, the General Partner, holds five
non-voting General Partnership Interests and five voting Limited Partnership
Interests. NIDMI is beneficially owned by A. Bruce Rozet and Deane Earl Ross,
who are the Directors and executive officers of NIDMI.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

     NIDAM earned management fees of $50,000 during 1994 from AHP, which
represents 9.3% of NIDAM's total revenue during 1994. NIDAM and NIDHC are
general partners in the local limited partnerships in which AHP has invested. A.
Bruce Rozet and Deane Earl Ross, the Directors of NIDMI, beneficially own and
are executive officers of NIDAM and NIDHC.

                                      -11-
<PAGE>
 
                                    PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K:

 (a) The following documents are filed as part of this report:

     (1) Financial Statements:
                                                                     PAGE
 
         Report of Independent Certified Public Accountants           F-1
         Balance Sheets - December 31, 1994 and 1993                  F-2
         Statements of Operations for the Three Years
             Ended December 31, 1994                                  F-3
         Statements of Partners' Deficit for the
             Three Years Ended December 31, 1994                      F-4
         Statements of Cash Flows for the Three Years
             Ended December 31, 1994                                  F-5
         Notes to the Financial Statements                            F-6

     (2) Financial Statement Schedules:
 
         Report of Independent Certified Public Accountants           S-1
 
         Schedule IV
            Amounts Due from Related Parties                          S-2
 
         Schedule XI
            Real Estate and Accumulated Depreciation of
            Limited Partnerships in which the Partnership
            has an Investment                                         S-5
 
         Schedule XII
            Mortgage Loans on Real Estate                             S-8
 
         Schedule XIII
            Investments in and Advances to Limited Partnerships       S-11

All other schedules are omitted because they are not applicable or the required
information is shown in the financial statements or notes thereto.

(b) Reports on Form 8-K

No reports on Form 8-K were filed by AHP during the last quarter of fiscal year
1994.

                                      -12-
<PAGE>
 
                                  SIGNATURES

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


                                AMERICAN HOUSING PARTNERS
                                a California limited partnership

                                By:  NIDC Managers, Inc.
                                     General Partner


Date: July 16, 1998             By: /s/ Deane Earl Ross
                                    -------------------------------------------
                                    Deane Earl Ross
                                    President and Director

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the registrant and
in the capacities and on the dates indicated.


Date: July 16, 1998             By: /s/ A. Bruce Rozet
                                    -------------------------------------------
                                    A. Bruce Rozet, Chairman of the Board and
                                    Chief Executive Officer of NIDC Managers,
                                    Inc.


Date: July 16, 1998             By: /s/ Deane Earl Ross
                                    -------------------------------------------
                                    Deane Earl Ross, Director, President and
                                    Treasurer (Chief Financial Officer and Chief
                                    Accounting Officer) of NIDC Managers, Inc.

                                      -13-
<PAGE>
 
        [LETTERHEAD OF BAY SHERMAN CRAIG & GOLDSTEIN, LLP APPEARS HERE]


              Report of Independent Certified Public Accountants
              --------------------------------------------------


To the Partners
American Housing Partners


We have audited the accompanying balance sheets of American Housing Partners (a
California limited partnership) as of December 31, 1994 and 1993 and the related
statements of operations, partners' deficit and cash flows for each of the three
years in the period ended December 31, 1994. These financial statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audits. We did not audit
the financial statements of certain limited partnerships in which the
Partnership has an investment, the statements of which reflect total assets and
revenues constituting 100% of the combined totals of the limited partnerships in
the years presented. These statements were audited by other auditors, whose
reports thereon have been furnished to us and our opinion, insofar as it relates
to the amounts included in Note C for those limited partnerships, is based
solely upon the reports of the other auditors.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits and the reports of the other auditors provide a
reasonable basis for our opinion.

In our opinion, based on our audits and the reports of the other auditors, the
financial statements referred to above present fairly, in all material respects,
the financial position of American Housing Partners as of December 31, 1994 and
1993 and the results of its operations and its cash flows for each of the three
years in the period ended December 31, 1994, in conformity with generally
accepted accounting principles.

/s/ Bay Sherman Craig & Goldstein, LLP

Los Angeles, California
July 24, 1997, except for Note I,
 as to which the date is July 7, 1998

                                      F-1
<PAGE>
 
                           AMERICAN HOUSING PARTNERS

                                BALANCE SHEETS

                                 DECEMBER 31,

<TABLE> 
<CAPTION> 
                     ASSETS
                                                      1994          1993
                                                  -----------    -----------
<S>                                               <C>            <C>
Cash                                              $    17,267    $    42,492
Notes receivable, deferred cash
 payments and accrued interest
 from related parties - Net of
 deferred gain and deferred
 interest income (Notes A, B
 and D)                                             9,530,521      9,683,032
Due from affiliates (Note H)                          303,580              -
Investments in and advances to limited
 partnerships (Notes A and C)                               -              -
                                                  -----------    -----------
 
                                                  $ 9,851,368    $ 9,725,524
                                                  ===========    ===========


   LIABILITIES AND PARTNERS' DEFICIT
 
Accounts payable                                  $    40,703    $    45,117
Due to asset management company                           780         87,780
Mortgages payable (Note D)                         10,330,318     10,482,829
Loans payable (Note D)                                543,765        543,765
                                                  -----------    -----------
                                                   10,915,566     11,159,491
                                                  -----------    -----------
 
Contingent liability (Note I)
 
Partners' deficit (Note J):
 Limited partners                                  (1,063,440)    (1,432,945)
 General partner                                         (758)        (1,022)
                                                  -----------    -----------
                                                   (1,064,198)    (1,433,967)
                                                  -----------    -----------
 
                                                  $ 9,851,368    $ 9,725,524
                                                  ===========    ===========
</TABLE>

See notes to the financial statements.

                                      F-2
<PAGE>
 
                           AMERICAN HOUSING PARTNERS

                           STATEMENTS OF OPERATIONS

                           YEARS ENDED DECEMBER 31,

<TABLE> 
<CAPTION> 
                                          1994       1993        1992
                                        --------   --------    --------
<S>                                     <C>        <C>         <C>
REVENUES:
  Distributions in excess of
    investment (Note C)                 $559,041   $ 62,409    $ 15,756
  Interest                                 2,533          -           -
                                        --------   --------    --------
                                         561,574     62,409      15,756
                                        --------   --------    --------
 
EXPENSES:
  Management fees (Note E)                50,000     50,000      50,000
  Professional fees (Note G)             137,186     18,886      17,639
  Communication with partners              2,987      2,088       2,911
  Miscellaneous                            1,632      2,313       4,613
                                        --------   --------    --------
                                         191,805     73,287      75,163
                                        --------   --------    --------
 
 
NET INCOME (LOSS) (Notes A
 and F)                                 $369,769   $(10,878)   $(59,407)
                                        ========   ========    ========
 
Net income (loss) per
 partnership unit (based
 upon 7,010 units)                      $  52.75   $  (1.55)   $  (8.47)
                                        ========   ========    ========
</TABLE>

See notes to the financial statements.

                                      F-3

<PAGE>
 
                           AMERICAN HOUSING PARTNERS

                        STATEMENTS OF PARTNERS' DEFICIT

                 YEARS ENDED DECEMBER 31, 1994, 1993 AND 1992

<TABLE> 
<CAPTION>
                                                                      Limited       General
                                                  Total               Partners      Partner
                                               -----------          ------------    --------  
<S>                                            <C>                  <C>             <C>                                          
Partnership units throughout
  the period                                         7,010                7,005           5
                                               ===========          ===========     =======
 
Balance, January 1, 1992                       $(1,363,682)         $(1,362,710)    $  (972)
 
Net loss                                           (59,407)             (59,365)        (42)
                                               -----------          -----------     -------
 
Balance, December 31, 1992                      (1,423,089)          (1,422,075)     (1,014)
 
Net loss                                           (10,878)             (10,870)         (8)
                                               -----------          -----------     -------
 
Balance, December 31, 1993                      (1,433,967)          (1,432,945)     (1,022)
 
Net income                                         369,769              369,505         264
                                               -----------          -----------     -------
 
Balance, December 31, 1994                     $(1,064,198)         $(1,063,440)    $  (758)
                                               ===========          ===========     =======
</TABLE>

See notes to the financial statements.

                                      F-4
<PAGE>
 
                           AMERICAN HOUSING PARTNERS

                           STATEMENTS OF CASH FLOWS

                           YEARS ENDED DECEMBER 31,



<TABLE>
<CAPTION>
                                             1994       1993        1992
                                         ----------  ---------  ----------
<S>                                      <C>         <C>        <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net income (loss)                       $ 369,769   $(10,878)   $(59,407)
 Adjustments to reconcile net
  income (loss) to net cash provided
  by (used in) operating activities:
   Due to asset management
     company                                     -          -      18,678
   Increase (decrease) in:
     Accounts payable                       (4,414)     2,470      (1,125)
     Management fee payable                (87,000)    50,000      37,000
                                         ---------   --------    --------
       Net cash provided by (used
         in) operating activities          278,355     41,592      (4,854)
                                         ---------   --------    --------
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 Loans to affiliates                      (303,580)         -           -
                                         ---------   --------    --------
 
       Net cash used in
         investing activities             (303,580)         -           -
                                         ---------   --------    --------
 
NET INCREASE (DECREASE) IN CASH            (25,225)    41,592      (4,854)
 
Cash at beginning of year                   42,492        900       5,754
                                         ---------   --------    --------
 
Cash at end of year                      $  17,267   $ 42,492    $    900
                                         =========   ========    ========
</TABLE>

Noncash investing and financing activities:
  Principal payments on mortgages payable were made by buyers on behalf of the
  Partnership totaling $152,511, $200,104 and $211,492 during the years ended
  December 31, 1994, 1993 and 1992, respectively.

See notes to the financial statements.

                                      F-5
<PAGE>
 
                           AMERICAN HOUSING PARTNERS

                       NOTES TO THE FINANCIAL STATEMENTS

                       DECEMBER 31, 1994, 1993 AND 1992



A.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

    A summary of the significant accounting policies consistently applied in the
    preparation of the accompanying financial statements follows.

    (1)   Organization and Line of Business

    American Housing Partners (the Partnership) was formed as a limited
    partnership on June 7, 1971 under the laws of the State of California, with
    its general partner, NIDC Managers, Inc. (NIDMI), owning five partnership
    interests and the initial limited partner owning five partnership interests.
    On August 31, 1971, the Partnership issued 7,000 partnership interests to
    limited partners through a public offering.

    The Partnership is engaged primarily in investing in limited partnerships
    that own and operate government-assisted, multi-family, residential rental
    projects.  The general partners of the limited partnerships generally are
    affiliates of NIDMI.

    The accompanying financial statements include only the assets, liabilities,
    results of operations and cash flows which relate to the Partnership, and
    not those attributable to the partners' individual activities.

    (2)   Investments in Limited Partnerships

    The Partnership uses the equity method to account for its investments in
    limited partnerships. Accordingly, for financial statement purposes, when
    the carrying value of the investment has been reduced to zero, the
    Partnership discontinues recognizing its share of the limited partnerships'
    losses and recognizes cash distributions as income when received.

    (3)   Revenue Recognition

    Gains on the sale of investments in limited partnerships are accounted for
    using the cost recovery method.  Under this method, no gain is recognized
    until cash payments by the buyers to the Partnership exceed the
    Partnership's investments in the limited partnerships sold and all accrued
    interest has been received.

                                      F-6
<PAGE>
 
                           AMERICAN HOUSING PARTNERS

                 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

                       DECEMBER 31, 1994, 1993 AND 1992



A.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):

    (4)   Income Taxes

    No provision has been made for income taxes in the accompanying financial
    statements since such taxes, if any, are the liability of the individual
    partners.

    (5)   Cash Equivalents

    The Partnership considers all highly liquid debt instruments purchased with
    a maturity of three months or less to be cash equivalents.

    (6)   Use of Estimates

    The preparation of financial statements in conformity with generally
    accepted accounting principles requires management to make estimates and
    assumptions that affect the 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.  SALES OF INVESTMENTS IN LIMITED PARTNERSHIPS TO RELATED PARTIES

    Prior to 1985, six limited partnerships in which the Partnership had an
    interest disposed of the multi-family, HUD-regulated, residential rental
    projects and certain other assets and liabilities owned by them. The
    projects were sold for various sales prices consisting of cash down
    payments, deferred cash payments due in future annual installments and the
    remainder due in the form of nonrecourse all-inclusive residual notes
    receivable. The residual notes, which include the unpaid principal balances
    of the related underlying HUD mortgages, bear interest at 14% per annum and
    are collateralized by the various purchasers' partnership interests. The
    residual notes contain provisions which limit the accrual of interest if the
    sum of the unpaid principal plus accrued interest exceeds the appraised
    value of the respective project at specified dates. Based on values
    determined by management, the accrual of interest on two residual notes was
    suspended as of January 1, 1992. All unpaid principal and interest is due in
    full through 2024.

                                      F-7
<PAGE>
 
                           AMERICAN HOUSING PARTNERS

                 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

                       DECEMBER 31, 1994, 1993 AND 1992



B.  SALES OF INVESTMENTS IN LIMITED PARTNERSHIPS TO RELATED PARTIES
      (CONTINUED)

    The sales were made to partnerships whose general partners currently are
    affiliates of the general partner of the Partnership (two purchasing
    partnerships were related prior to 1985 and the remaining four partnerships
    became related during 1986). Concurrent with the sales, the Partnership was
    assigned its share of the selling limited partnerships' rights and
    beneficial interests in and to the resulting residual notes receivable and
    the related underlying HUD mortgages, and also loans payable to the former
    managing general partners (Note D), none of which were assumed by the
    purchasers. In 1985, the Partnership was assigned its share of the remaining
    assets of the limited partnerships.

    Additionally, in 1982, the Partnership and an unaffiliated individual sold
    their entire interest in a limited partnership to a partnership whose
    general partner is an affiliate of the general partner of the Partnership.
    The Partnership sold its interest for $823,000, of which $400,000 was
    received in cash and the remaining $423,000 is in the form of a note
    receivable, bearing interest at 19.5% per annum, due in 2002. The note is
    collateralized by the purchaser's partnership interest. Under the sales
    agreement, the individual will receive the next $800,000 in cash;
    thereafter, the additional payments will be split one-third to the
    Partnership and two-thirds to the individual.

    Under the terms of all the sales agreements, the purchasers' obligations to
    make payments on the notes receivable are limited to the purchasers' share
    of the allowable surplus cash distributions (as defined by HUD) received
    from the projects.  These distributions may not exceed the aggregate of
    $89,758 annually, plus prior allowable distributions.  No surplus cash
    distributions were received by the Partnership from the projects in 1992,
    1993 and 1994.  Aggregate allowable distributions were $1,270,428 at
    December 31, 1994.  The purchasers are also obligated to make the payments
    on the related underlying HUD mortgages payable (Note D).

                                      F-8
<PAGE>
 
                           AMERICAN HOUSING PARTNERS

                 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

                       DECEMBER 31, 1994, 1993 AND 1992


B.  SALES OF INVESTMENTS IN LIMITED PARTNERSHIPS TO RELATED PARTIES (CONTINUED)

    Amounts due from the related parties in connection with these sales are
    summarized as follows:

<TABLE> 
<CAPTION> 
                                                 1994            1993
                                             ------------    ------------
     <S>                                     <C>             <C>
     Deferred cash payments due in
      various installments through
      1987.  At December 31, 1987,
      all remaining payments became
      delinquent                             $    499,066    $    499,066
 
     All-inclusive residual notes
      receivable                               18,253,525      18,253,525
 
     Note receivable                              423,000         423,000
 
     Accrued interest receivable               14,790,903      14,036,910
 
     Deferred gain on sales                    (7,756,342)     (7,756,342)
 
     Deferred interest income                 (16,679,631)    (15,773,127)
                                             ------------    ------------
 
                                             $  9,530,521    $  9,683,032
                                             ============    ============
</TABLE>

                                      F-9
<PAGE>
 
                           AMERICAN HOUSING PARTNERS

                 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

                       DECEMBER 31, 1994, 1993 AND 1992


C.  INVESTMENTS IN AND ADVANCES TO LIMITED PARTNERSHIPS

    The Partnership owns partnership interests in the following limited
    partnerships, each of which owns and operates a multi-family residential
    rental project:

      Homestead Limited Dividend Housing Association
      Pine Villa Associates
      Tanglewood Terrace, Ltd.
      Woodhaven Apartments Associates
      Columbia - Jennifer, Ltd.

    The projects are regulated by HUD as to the rent charges and operating
    methods. The mortgage loan obligations of the limited partnerships are
    insured by HUD and the interest payments are subsidized by HUD under
    Sections 221(d)(4) and 236 of the National Housing Act. As the limited
    partner, the Partnership is generally entitled to 99% of the profits and
    losses and varying lesser percentages of the proceeds from the sale or
    refinancing of the projects of each limited partnership in which it has
    invested.

    The following is a summary of the changes in the investments in and advances
    to the limited partnerships in which the Partnership had an equity interest:

<TABLE>
<CAPTION>
                                                1994           1993
                                             ---------      ---------
      <S>                                    <C>            <C>
      Balance, beginning of year             $       -      $       -
 
      Distributions from limited
       partnerships:
        Total distributions received          (559,041)       (62,409)
        Distributions received in
         excess of carrying values
         of the investments                    559,041         62,409
                                             ---------      ---------
                                                     -              -  
                                             ---------      ---------

      Equity in net income of
       limited partnerships:
        Net income                             113,323        181,604
        Net income not recognized
         as the carrying values
         of the investments are
         at zero                              (113,323)      (181,604)
                                             ---------      ---------
 
      Net income recognized                          -              -
                                             ---------      ---------
 
      Balance, end of year                   $       -      $       -
                                             =========      =========
</TABLE>

                                      F-10
<PAGE>
 
                           AMERICAN HOUSING PARTNERS                           

                 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

                        DECEMBER 31, 1994, 1993 AND 1992



C.   INVESTMENTS IN AND ADVANCES TO LIMITED PARTNERSHIPS (CONTINUED)

     Summarized balance sheets and statements of operations for the limited
     partnerships in which the Partnership has an equity interest are as
     follows:

                                 BALANCE SHEETS

<TABLE>
<CAPTION>
              ASSETS                         1994              1993      
                                       ----------------  ----------------
     <S>                               <C>               <C>            
     Property and equipment, at cost:                                   
      Buildings, equipment and                                          
      furnishings                          $13,110,917       $10,499,957
       Less accumulated                                                 
        depreciation                         8,133,960         7,835,801
                                           -----------       -----------
                                             4,976,957         2,664,156
     Land                                      654,951           549,951
                                           -----------       -----------
                                             5,631,908         3,214,107
     Cash                                      252,945           201,281
     Other assets                            1,589,494         1,068,726
                                           -----------       -----------
                                                                        
                                           $ 7,474,347       $ 4,484,114
                                           ===========       ===========
        LIABILITIES AND PARTNERS'                                       
          DEFICIT                                                       
                                                                        
     Mortgages payable                     $ 9,865,564       $ 6,369,284
     Other liabilities                       1,165,972           720,459
                                           -----------       -----------
                                            11,031,536         7,089,743
     Partners' deficit                      (3,557,189)       (2,605,629)
                                           -----------       -----------
                                                                        
                                           $ 7,474,347       $ 4,484,114
                                           ===========       ===========
                                                                        
     Partnership's share of                                             
      partners' deficit                    $(2,951,528)      $(2,510,474)
                                                                        
     Cumulative cash distributions                                      
      and losses from limited                                           
      partnerships in excess of the                                     
      Partnership's investment               2,951,528         2,510,474
                                           -----------       -----------
     Investments in and advances                                        
      to limited partnerships              $         -       $         -
                                           ===========       =========== 
</TABLE>

                                     F-11
<PAGE>
 
                           AMERICAN HOUSING PARTNERS

                 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

                        DECEMBER 31, 1994, 1993 AND 1992



C.   INVESTMENTS IN AND ADVANCES TO LIMITED PARTNERSHIPS (CONTINUED)



                            STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                1994         1993         1992   
                             -----------  -----------  -----------
     <S>                     <C>          <C>          <C>       
     Revenues:                                                   
      Rental                 $2,253,936   $2,153,535   $2,097,614
      Other                     246,714      247,338      229,489
                             ----------   ----------   ----------
                              2,500,650    2,400,873    2,327,103
                             ----------   ----------   ----------
                                                                 
     Expenses:                                                   
      Operating               1,663,419    1,588,469    1,570,951
      Depreciation              304,135      264,440      331,406
      Interest                  418,361      364,797      374,609
                             ----------   ----------   ----------
                              2,385,915    2,217,706    2,276,966
                             ----------   ----------   ----------
                                                                 
         NET INCOME          $  114,735   $  183,167   $   50,137
                             ==========   ==========   ==========
     Partnership's share                                         
       of net income         $  113,323   $  181,604   $   50,130
                                                                 
     Net income not                                              
       recognized as the                                         
       carrying values                                           
       of the investments                                        
       have been reduced                                         
       to zero                 (113,323)    (181,604)     (50,130)
                             ----------   ----------   ---------- 
     Equity in net income                                         
       of limited                                                 
       partnerships                                               
       recognized            $        -   $        -   $        - 
                             ==========   ==========   ==========  
</TABLE> 

                                     F-12
<PAGE>
 
                           AMERICAN HOUSING PARTNERS

                 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

                       DECEMBER 31, 1994, 1993 AND 1992



D.  MORTGAGES AND LOANS PAYABLE

    As discussed in Note B, the Partnership was assigned interests in certain
    underlying HUD mortgages on the multi-family residential rental projects
    disposed of by limited partnerships in which the Partnership had an
    investment. Responsibility for servicing the HUD mortgages remains with the
    sellers. The Partnership's share of the mortgages is due in various monthly
    installments totaling $80,953, including interest at 7% per annum, through
    October, 2014. The mortgages are collateralized by the apartment projects
    and are held by the Federal National Mortgage Association and insured by
    HUD.

    The following is a schedule of the Partnership's share of future maturities
    of the underlying HUD mortgages payable:

<TABLE>
<CAPTION>
          Years ending                               
          December 31,                               
          ------------                               
          <S>                            <C>         
           1995                          $ 5,080,082 
           1996                              152,003 
           1997                              162,749 
           1998                              174,512 
           1999                              187,409 
           Thereafter                      4,573,563 
                                         ----------- 
                                         $10,330,318 
                                         ===========  
</TABLE> 

    HUD took possession of the property owned by one of the limited partnerships
    effective November 1, 1994 and commenced foreclosure proceedings. As a
    result, the entire debt balance of $5,131,595 is included in the 1995 total
    in the table above. The foreclosure was completed in 1996.

    The Partnership was also assigned interests in certain loans, aggregating
    $543,765 at December 31, 1994 and December 31, 1993. The loans are payable
    to the prior managing general partners of the limited partnerships in which
    the Partnership had an investment and were not assumed by the purchasers.
    The loans were originally made to finance construction costs that exceeded
    the original partners' capital contributions and the proceeds from the
    related HUD mortgages. Theses loans are non-interest bearing and are payable
    based upon certain liquidation provisions in the various limited partnership
    agreements.

                                     F-13
<PAGE>
 
                           AMERICAN HOUSING PARTNERS

                 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

                       DECEMBER 31, 1994, 1993 AND 1992



E.  MANAGEMENT AND LIQUIDATION FEES PAYABLE

    The Partnership entered into a management contract with NIDC Asset
    Management, Inc. (NIDAM), an affiliate of the general partner of the
    Partnership, for the performance of certain services. The contract expired
    December 31, 1993, and was terminable at any time by the Partnership with at
    least 60 days written notice. Under the management contract, NIDAM pays the
    general and administrative expenses of the Partnership, except for legal and
    accounting expenses and the cost of communicating with the limited partners.
    NIDAM earns an annual management fee based on the average annual tax
    deductions plus cash distributions per partnership interest, which can range
    from one-tenth to one-quarter of one percent of the Partnership's invested
    assets (defined as the Partnership's investment in and its share of the
    mortgage debt of the limited partnerships in which it has invested). The
    minimum management fee is $50,000 per year.

    Additionally, the management contract provides that NIDAM is entitled to a
    liquidation fee from the sale of projects by the limited partnerships (to
    other than affiliates of the management company), once the requisite
    approval for a total or partial liquidation has been obtained. No
    liquidation fees were paid in 1992, 1993 and 1994. 

                                     F-14
<PAGE>
 
                           AMERICAN HOUSING PARTNERS

                 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

                       DECEMBER 31, 1994, 1993 AND 1992



F.  FEDERAL TAXABLE INCOME

    The following is a reconciliation between the net income (loss) per the
    financial statements and the net earnings for federal income tax purposes:
    
<TABLE>
<CAPTION>
                                        1994        1993        1992
                                     ----------  ----------  ----------
    <S>                              <C>         <C>         <C> 
    Net income (loss),
     financial statement
     basis                           $ 369,769   $(10,878)   $(59,407)
 
    Equity in income
     of limited partnerships
     recognized for tax
     purposes but not
     recognized for
     financial statement
     purposes because the
     carrying values of the
     investments have been
     reduced to zero                   212,131    194,357     154,576
 
    Distributions in excess
     of investments in and
     advances to limited
     partnerships                     (559,041)   (62,409)    (15,756)

    Gains recognized on
     sales of investments
     in limited partner-
     ships for tax
     purposes but deferred
     for financial
     statement purposes                      -          -       2,365
</TABLE>

                                     F-15
<PAGE>
 
                           AMERICAN HOUSING PARTNERS

                 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

                       DECEMBER 31, 1994, 1993 AND 1992



F.   FEDERAL TAXABLE INCOME (CONTINUED)

<TABLE>
<CAPTION>
                                     1994      1993      1992
                                   --------  --------  --------
       <S>                         <C>       <C>       <C>
 
       Net interest income
         recognized on
         residual notes
         receivable for tax
         purposes but deferred
         for financial
         statement purposes         152,511   200,104   211,492
 
       Other                              -     6,059     2,625
                                   --------  --------  -------- 
 
       Net income, federal
         income tax basis          $175,370  $327,233  $295,895
                                   ========  ========  ========
 
       Federal tax basis net
         income per
         partnership unit
         (based upon 7,010
         units)                    $  25.02  $  46.68  $  42.21
                                   ========  ========  ========
</TABLE>

G.   RELATED PARTY TRANSACTIONS

     During the year ended December 31, 1994, the Partnership paid fees to a
     company affiliated with the general partner for asset management and
     preservation services in the amount of $130,500.

H.   DUE FROM AFFILIATES

     The Partnership has loaned funds to certain affiliated entities. The
     balance receivable as of December 31, 1994 is comprised of the following:

<TABLE> 
           <S>                               <C> 
           Advances                          $301,047
           Accrued interest                     2,533
                                             --------

                                             $303,580
                                             ========
</TABLE> 

                                      F-16
<PAGE>
 
                           AMERICAN HOUSING PARTNERS

                 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

                       DECEMBER 31, 1994, 1993 AND 1992



I.   CONTINGENT LIABILITY

     On May 8, 1997, the United States filed an action against Associated
     Financial Corporation ("AFC") and its affiliates (collectively, the "AFC
     Group") and others, in the United States District Court for the Northern
     District of California charging that the defendants were wrongfully
     participating in the fees earned by the management agent for several
     properties (not including any of the properties invested in by the
     Partnership) and had not disclosed this arrangement and, thus, were
     violating provisions of the applicable regulatory agreements and other
     agreements governing the subject properties. The Complaint did, however,
     allege that the defendants made certain false claims regarding the
     condition of one property in which the Partnership had an interest in a
     deferred cash payment receivable, an all-inclusive residual note receivable
     and accrued interest receivable and was obligated on an underlying mortgage
     payable. This property was lost through foreclosure in January, 1996 and,
     as a result, the Partnership lost its interest in these items. Defendants
     filed an answer on August 11, 1997, denying the material allegations of the
     Complaint, and asserting various separate and additional defenses.

     The government filed an amended complaint on March 2, 1998, adding
     additional defendants none of whom are part of the AFC Group and added a
     claim that the defendants, including the new defendants, made false claims
     in connection with the obtaining of insurance for various HUD-insured
     properties. The defendants have filed answers to the First Amended
     Complaint, again denying the material allegations of the Complaint and
     asserting various separate and additional defenses.

     While substantial document discovery has been completed, the defendants
     intend to move to compel significant delivery from the government of
     substantial additional documentation. Deposition discovery is in its early
     stages. Given the defendants' need to obtain significant additional
     discovery, counsel can offer no opinion as to the outcome of the litigation
     at this time.

                                      F-17
<PAGE>
 
                           AMERICAN HOUSING PARTNERS

                 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

                       DECEMBER 31, 1994, 1993 AND 1992



I.   CONTINGENT LIABILITY (Continued)

     The general partner believes that when all of the facts are presented to an
     impartial judge, the defendants will be exonerated. However, the complaint
     contains serious allegations against the defendants and every effort will
     be made to show that the government is wrong in bringing the lawsuit. At
     this time, the general partner does not believe that there will be any
     material adverse effect to the Partnership and the operation of its
     investments.

J.   PARTNERSHIP STATUS

     The term of the Partnership, under its original Partnership Agreement,
     expired on December 31, 1993 and has not been renewed. As a result, the
     Partnership has been operating since January 1, 1994 as a partnership in
     dissolution. Therefore, no new properties or other assets can be acquired
     and the general partner has been obligated to bring about the orderly
     liquidation of the Partnership and the distribution of its assets to its
     partners. The general partner has delayed liquidation of the Partnership
     because of difficulty in disposing of the assets, but it does not believe
     that the liquidation should be delayed further.

     The general partner will, therefore, sell the assets for the best price
     available and distribute the proceeds to the partners. If some assets
     cannot be disposed of, the general partner will acquire them in order to
     permit the liquidation and termination of the Partnership by December 31,
     1998.

                                      F-18
<PAGE>
 
        [LETTERHEAD OF BAY SHERMAN CRAIG & GOLDSTEIN, LLP APPEARS HERE]

        Report of Independent Certified Public Accountants on Schedules
        ---------------------------------------------------------------



The Partners
American Housing Partners

In connection with our audits of the financial statements of American Housing
Partners referred to in our report dated July 24, 1997, which is included in
Part II of this Form 10-K, we did not audit the financial statements of certain
limited partnerships in which the Partnership has an investment, the statements
of which reflect total assets and revenues constituting 100% of the combined
totals of the limited partnerships in the years presented.  Such statements were
audited by other auditors, whose reports thereon have been furnished to us.
Insofar as the information presented on Schedules IV, XI, XII and XIII as of
December 31, 1994 and 1993 and for each of the three years in the period ended
December 31, 1994 relates to these limited partnerships, our opinion is based
solely upon the reports of other auditors.  In our opinion, based on our audits
and the reports of other auditors, these schedules present fairly, in all
material respects, the information required to be set forth therein.


/s/ Bay Sherman Craig & Goldstein, LLP

Los Angeles, California
July 24, 1997

                                      S-1
<PAGE>

                                                                     SCHEDULE IV
 
                           AMERICAN HOUSING PARTNERS

                        AMOUNTS DUE FROM RELATED PARTIES

                          YEAR ENDED DECEMBER 31, 1994


<TABLE> 
<CAPTION>                                
                                                    Balance at                   Reductions         Balance at
                                                    January 1,                       and           Decemebr 31,       
           Partnerships                               1994         Additions       Payments            1994          
--------------------------------------             -----------     ----------     ----------       -----------      
<S>                                                <C>             <C>             <C>             <C> 
Deferred Cash Payments Receivable:                        
   Country Acres Limited Partnership               $    6,582      $       -      $       -        $     6,582          
   Northview Limited Partnership                            -      ----------     ----------       -----------         
   Sierra Nevada Apartments, Ltd. I                   338,778              -              -            338,778         
   Springwater Limited Partnership                          -      ----------     ----------       -----------         
   Sunflower Park Limited Partnership                 137,000              -              -            137,000         
   Thunderbird Apartments, Ltd. I                      16,706              -              -             16,706         
                                                    ----------     ----------     ----------       -----------         
                                                      499,066              -              -            499,066         
                                                    ----------     ----------     ----------       -----------          

14% All-inclusive Notes Receivable:                
   Country Acres Limited Partnership                2,375,000              -              -          2,375,000                
   Northview Limited Partnership                    1,875,000              -              -          1,875,000                
   Sierra Nevada Apartments, Ltd. I                 6,549,300              -              -          6,549,300                
   Springwater Limited Partnership                  2,810,100              -              -          2,810,100                
   Sunflower Park Limited Partnership               2,269,125              -              -          2,269,125                
   Thunderbird Apartments, Ltd. I                   2,375,000              -              -          2,375,000                
                                                   -----------     ----------     ----------       -----------                
                                                   18,253,525              -              -         18,253,525                
                                                   -----------     ----------     ----------       -----------                 
19.5% Note Receivable:                                423,000              -              -            423,000   
                                                   -----------     ----------     ----------       -----------  
   Wesbak Housing Fund I, Ltd.                                                                                  

Accrued Interest Receivable:                                                                                   
   Country Acres Limited Partnership                2,141,709        332,500       (106,796)         2,367,413  
   Northview Limited Partnership                    1,677,321        262,500        (77,175)         1,862,646                   
   Sierra Nevada Apartments, Ltd. I                 3,084,498              -       (238,353)         2,846,145   
   Springwater Limited Partnership                  2,552,913        393,414       (119,067)         2,827,260 
   Sunflower Park Limited Partnership               1,341,314              -       (108,015)         1,233,299 
   Thunderbird Apartments, Ltd. I                   2,290,577        332,500              -          2,623,077 
   Wesbak Housing Fund I, Ltd.                        948,578         82,485              -          1,031,063 
                                                   -----------     ----------     ----------        ----------  
Deferred Gain and Interest Income:                 14,036,910      1,403,399       (649,406)        14,790,903               
                                                   ----------      ----------     ----------        ----------

   Country Acres Limited Partnership               (3,515,358)      (253,262)             -         (3,786,620)                
   Northview Limited Partnership                   (2,975,192)      (203,445)             -         (3,178,637)               
   Sierra Nevada Apartments, Ltd. I                (5,093,559)       (54,598)       238,353         (4,909,804)                 
   Springwater Limited Partnership                 (4,225,792)      (301,660)             -         (4,527,452)                
   Sunflower Park Limited Partnership              (2,894,904)       (24,922)       108,015         (2,811,811)    
   Thunderbird Apartments, Ltd. I                  (3,453,086)      (332,500)             -         (3,785,586)        
   Wesbak Housing Fund I, Ltd.                     (1,371,578)       (82,485)             -         (1,454,063)                
                                                  ------------    -----------     ----------       ------------                
                                                  (23,529,469)    (1,252,872)       346,368        (24,435,973)  
                                                  ------------    -----------     ----------       ------------          

                                                  $ 9,683,032     $  150,527      $(303,038)       $ 9,530,521                 
                                                  ============    ===========     ==========       ============   
</TABLE> 
                                                  
                                      S-2
<PAGE>
 
                           AMERICAN HOUSING PARTNERS

                       AMOUNTS DUE FROM RELATED PARTIES

                         YEAR ENDED DECEMBER 31, 1994

                                                                     SCHEDULE IV

<TABLE> 
<CAPTION> 
                                                                       Balance at                 Reductions   Balance at
                                                                       January 1,                    and      December 31,
            Partnerships                                                  1993       Additions     Payments       1993
---------------------------------------                               ------------   ----------  -----------  ------------
<S>                                                                   <C>            <C>         <C>          <C> 
Deferred Cash Payments Receivable:                                    
   Country Acres Limited Partnership                                  $     6,582    $           $            $     6,582  
   Northview Limited Partnership                                                -             -           -             -  
   Sierra Nevada Apartments, Ltd. I                                       338,778             -           -       338,778  
   Springwater Limited Partnership                                              -             -           -             -  
   Sunflower Park Limited Partnership                                     137,000             -           -       137,000  
   Thunderbird Apartments, Ltd. I                                          16,706             -           -        16,706  
                                                                      -----------    ----------  ----------   -----------  
                                                                          499,066             -           -       499,066  
                                                                      -----------    ----------  ----------   -----------   

14% All-inclusive Notes Receivable:                                                                                           
   Country Acres Limited Partnership                                    2,375,000             -           -     2,375,000     
   Northview Limited Partnership                                        1,875,000             -           -     1,875,000     
   Sierra Nevada Apartments, Ltd. I                                     6,549,300             -           -     6,549,300     
   Springwater Limited Partnership                                      2,810,100             -           -     2,810,100     
   Sunflower Park Limited Partnership                                   2,269,125             -           -     2,269,125     
   Thunderbird Apartments, Ltd. I                                       2,375,000             -           -     2,375,000     
                                                                      -----------    ----------  ----------   -----------     
                                                                       18,253,525             -           -    18,253,525     
                                                                      -----------    ----------  ----------   -----------     
19.5% Note Receivable:                                                
   Wesbak Housing Fund I, Ltd.                                            423,000             -           -       423,000 
                                                                      -----------    ----------  ----------    ----------

Accrued Interest Receivable:                                            1,924,984       332,500    (115,775)    2,141,709
   Country Acres Limited Partnership                                    1,492,092       262,500     (77,271)    1,677,321
   Northview Limited Partnership                                        3,561,204             -    (476,706)    3,084,498
   Sierra Nevada Apartments, Ltd. I                                     2,293,924       393,414    (134,425)    2,552,913
   Springwater Limited Partnership                                      1,449,466             -    (108,152)    1,341,314
   Sunflower Park Limited Partnership                                   1,979,766       332,500     (21,689)    2,290,577
   Thunderbird Apartments, Ltd. I                                         866,093        82,485           -       948,578
                                                                     ------------    ----------    --------    ----------
   Wesbak Housing Fund I, Ltd.                                         13,567,529     1,403,399    (934,018)   14,036,910
                                                                     ------------    ----------    --------    ---------- 
Deferred Gain and Interest Income:                                     (3,272,934)     (242,424)          -    (3,515,358) 
   Country Acres Limited Partnership                                   (2,773,065)     (202,127)          -    (2,975,192) 
   Northview Limited Partnership                                       (5,466,622)     (103,643)    476,706    (5,093,559) 
   Sierra Nevada Apartments, Ltd. I                                    (3,941,332)     (284,460)          -    (4,225,792)
   Springwater Limited Partnership                                     (2,979,814)      (23,242)    108,152    (2,894,904)
   Sunflower Park Limited Partnership                                  (3,137,124)     (315,962)          -    (3,453,086)
   Thunderbird Apartments, Ltd. I                                      (1,289,093)      (82,485)          -    (1,371,578)
                                                                     ------------    ----------    --------   ----------- 
   Wesbak Housing Fund I, Ltd.                                        (22,859,984)   (1,254,343)    584,858   (23,529,469)
                                                                     ------------    ----------    --------   -----------   
                                                                                                
                                                                      $ 9,883,136   $   149,056   $(349,160)  $ 9,683,032  
                                                                      ===========    ==========   =========   ===========
</TABLE> 
                                                                    

                                      S-3
<PAGE>
 
                                                                     SCHEDULE IV

                           AMERICAN HOUSING PARTNERS

                 AMOUNTS DUE FROM RELATED PARTIES - CONTINUED

                         YEAR ENDED DECEMBER 31, 1992

<TABLE> 
<CAPTION> 
                                                   Balance at                              Reductions               Balance at   
                                                   January 1,                                 and                   December 31  
           Partnerships                              1994              Additions            Payments                   1994      
---------------------------------------           ----------          -----------         ------------             ------------  
<S>                                               <C>                 <C>                 <C>                      <C>           
Deferred Cash Payments Receivable:     
   Country Acres Limited Partnership              $     6,582          $         -         $          -             $      6,582 
   Northview Limited Partnership                            -                    -                    -                        - 
   Sierra Nevada Apartments, Ltd. I                   338,778                    -                    -                  338,778 
   Springwater Limited Partnership                          -                    -                    -                        -
   Sunflower Park Limited Partnership                 137,000                    -                    -                  137,000  
   Thunderbird Apartments, Ltd. I                      16,706                    -                    -                   16,706  
                                                  -----------          -----------         ------------             ------------  
                                                      499,066                    -                    -                  499,066  
                                                  -----------          -----------         ------------             ------------  

14% All-inclusive Notes Receivable:                                                                                              
   Country Acres Limited Partnership                2,375,000                    -                    -                2,375,000 
   Northview Limited Partnership                    1,875,000                    -                    -                1,875,000 
   Sierra Nevada Apartments, Ltd. I                 6,549,300                    -                    -                6,549,300 
   Springwater Limited Partnership                  2,810,100                    -                    -                2,810,100 
   Sunflower Park Limited Partnership               2,269,125                    -                    -                2,269,125 
   Thunderbird Apartments, Ltd. I                   2,375,000                    -                    -                2,375,000 
                                                  -----------          -----------         ------------              ----------- 
                                                   18,253,525                    -                    -               18,253,525 
                                                  -----------          -----------         ------------              ----------- 

19.5% Note Receivable:                                                                                                           
   Wesbak Housing Fund I, Ltd.                        423,000                    -                    -                  423,000 
                                                  -----------          -----------         ------------              -----------  

Accrued Interest Receivable:                                                                                                       
   Country Acres Limited Partnership                1,699,705              332,500             (107,221)               1,924,984 
   Northview Limited Partnership                    1,318,151              262,500              (88,559)               1,492,092 
   Sierra Nevada Apartments, Ltd. I                 4,038,471                    -             (477,267)               3,561,204 
   Springwater Limited Partnership                  2,019,867              393,414             (119,357)               2,293,924 
   Sunflower Park Limited Partnership               1,557,744                    -             (108,278)               1,449,466 
   Thunderbird Apartments, Ltd. I                   1,777,573              332,500             (130,307)               1,979,766 
   Wesbak Housing Fund I, Ltd.                        783,608               82,485                    -                  866,093 
                                                  -----------          -----------         ------------              -----------  
                                                   13,195,119            1,403,399           (1,030,989)              13,567,529 
                                                  -----------          -----------         ------------              -----------  
                                                                                                                                  
Deferred Gain and Interest Income:                                                                                                
   Country Acres Limited Partnership               (3,023,688)            (249,246)                   -               (3,272,934)
   Northview Limited Partnership                   (2,583,365)            (189,700)                   -               (2,773,065)
   Sierra Nevada Apartments, Ltd. I                (5,847,233)             (96,656)             477,267               (5,466,622)
   Springwater Limited Partnership                 (3,643,521)            (297,811)                   -               (3,941,332)
   Sunflower Park Limited Partnership              (3,066,417)             (21,675)             108,278               (2,979,814)
   Thunderbird Apartments, Ltd. I                  (2,905,250)            (231,874)                   -               (3,137,124)
   Wesbak Housing Fund I, Ltd.                     (1,206,608)             (82,485)                   -               (1,289,093)
                                                  -----------          -----------         ------------              -----------  
                                                  (22,276,082)          (1,169,447)             585,545              (22,859,984)
                                                  -----------          -----------         ------------              -----------  
                                                                                                                                  
                                                  $10,094,628          $   233,952         $   (445,444)             $ 9,883,136 
                                                  ===========          ===========         ============              ===========   
</TABLE> 
         
                                      S-4
<PAGE>

                                                                     SCHEDULE XI

 
                           AMERICAN HOUSING PARTNERS

              REAL ESTATE AND ACCUMULATED DEPRECIATION OF LIMITED
            PARTNERSHIPS IN WHICH THE PARTNERSHIP HAS AN INVESTMENT

                               DECEMBER 31, 1994

<TABLE>
<CAPTION>
                                                                               Land,             
                                                                               Buildings,        
                                                                               Equipment,        
                                                        Initial Cost to        and Furnish-        Amount at Which Carried at       
                                                        Partnership            ings Costs               Close of Period 
                                                   -------------------------                  ------------------------------------
                         Number -                                Buildings,    Capitalized                Buildings               
                         Type of     Outstanding                 Equipment,    Since                      Equipment,              
Partnership/Location    Apartments    Mortgage         Land      Furnishings   Completion       Land      Furnishings       Total 
----------------------  ----------   -----------   -----------   -----------   ------------   ---------   -----------    ----------
<S>                     <C>          <C>           <C>           <C>           <C>            <C>         <C>            <C> 
  Columbia-Jennifer,    50-Garden     $  721,558      $ 21,907    $1,011,149  $        -       $  21,907     1,011,149   $ 1,033,056
    Ltd; Columbus, OH                                                                                                               
                                                                                                                                    
  Homestead Limited     102-Garden     5,719,459       196,866     2,694,378     2,983,923       354,253     5,520,914     5,875,167
    Dividend Housing    48-Town-                                                                                                    
    Association;        house                                                                                                       
    Portage, MI                                                                                                                     
                                                                                                                                    
  Pine Villa            50-Garden        555,119        46,334       789,603       379,423        68,276     1,147,084     1,215,360
    Associates;                                                                                                                     
    Spokane, WA                                                                                                                     
                                                                                                                                    
  Tanglewood Terrace,   196-Garden     1,768,220        91,733     2,856,587       502,643        91,733     3,359,230     3,450,963
    Ltd; Texarkana, TX                                                                                                              
                                                                                                                                   
  Woodhaven Apartments  72-Garden      1,101,208        79,768     1,698,994       412,560       118,782     2,072,540     2,191,322
    Associates;                                                                                                                    
    Spokane, WA                                                                                                                    
                                      -----------   ----------    -----------  ------------   ----------   -----------   -----------
                                                                                                                                   
                                      $9,865,564      $436,608    $9,050,711    $4,278,549    $  654,951   $13,110,917   $13,765,868
                                      ===========   ==========    ===========  ============   ===========  ===========   ===========

<CAPTION>                                                         
                                                               Lives
                                                               on Which      
                                                               Depreciation  
                                                               in Latest     
                                                               Statement of   
                               Accumulated    Construction     Operations    
Partnership/Location           Depreciation      Period        is Computed    
----------------------         ------------    -----------     ------------- 
<S>                            <C>             <C>             <C>      
  Columbia-Jennifer,            $648,128       1975-1976           8-33         
    Ltd; Columbus, OH                                                 
                                                                      
  Homestead Limited            2,503,118       1971-1972           4-33  
    Dividend Housing                                                  
    Association;                                                      
    Portage, MI               
                              
  Pine Villa                     802,407       1971-1972           5-33   
    Associates;                                                           
    Spokane, WA                                                           
                                                                            
  Tanglewood Terrace,          2,612,233       1971-1973           5-33                           
    Ltd; Texarkana, TX                                                    
                              
  Woodhaven Apartments         1,568,074       1972-1973           5-36             
    Associates;                                                                     
    Spokane, WA                                                                 
                              ---------- 
                                         
                              $8,133,960 
                              ==========
</TABLE> 
                                                                         
See notes to the schedule.                                                  
                                                                          
                                      S-5




                                              
                                               
    
    
    


      
      
   

















 
                        
               
                
<PAGE>
 
                           AMERICAN HOUSING PARTNERS

                             NOTES TO THE SCHEDULE                   SCHEDULE XI

              REAL ESTATE AND ACCUMULATED DEPRECIATION OF LIMITED
            PARTNERSHIPS IN WHICH THE PARTNERSHIP HAS AN INVESTMENT

                 YEARS ENDED DECEMBER 31, 1994, 1993 AND 1992



1. Each limited partnership owns and operates a multi-family, HUD-regulated,
   residential housing project.  During the related construction stage, all
   costs of developing the projects were included in construction-in-progress.
   Upon substantial completion, the costs were reclassified to building and
   improvements.

2. The aggregate cost of land, buildings, equipment and furnishings for federal
   income tax purposes at December 31, 1994, 1993 and 1992 is $12,907,474,
   $10,442,034 and $10,336,557, respectively.

3. Investments in property and equipment:

<TABLE>
   <S>                                       <C>
   Cost:
          Balance, January 1, 1992           $10,745,295
 
          Additions                              218,174
 
          Retirements                            (19,036)
                                             -----------
 
          Balance, December 31, 1992          10,944,433
 
          Additions                              105,475
 
          Retirements                                  -
                                             -----------
 
          Balance, December 31, 1993          11,049,908
 
          Additions                            2,725,779
 
          Retirements                             (9,819)
                                             -----------
 
          Balance, December 31, 1994         $13,765,868
                                             ===========
</TABLE>

                                      S-6
<PAGE>
 
                           AMERICAN HOUSING PARTNERS

                             NOTES TO THE SCHEDULE - CONTINUED       SCHEDULE XI

              REAL ESTATE AND ACCUMULATED DEPRECIATION OF LIMITED
            PARTNERSHIPS IN WHICH THE PARTNERSHIP HAS AN INVESTMENT

                 YEARS ENDED DECEMBER 31, 1994, 1993 AND 1992



3. Investments in property and equipment (Continued):

<TABLE>
   <S>                                                 <C> 
   Accumulated depreciation:                 
 
          Balance, January 1, 1992                     $7,254,452
 
          Depreciation charged to expense during
           the year                                       331,406
 
          Retirements                                     (14,497)
                                                       ----------
 
          Balance, December 31, 1992                    7,571,361
 
          Depreciation charged to expense during
           the year                                       264,440
 
          Retirements                                           -
                                                       ----------
 
          Balance, December 31, 1993                    7,835,801
 
          Depreciation charged to expense during
           the year                                       304,135
 
          Retirements                                      (5,976)
                                                       ----------
 
          Balance, December 31, 1994                   $8,133,960
                                                       ==========
</TABLE>

                                      S-7
<PAGE>
 
                                                                    SCHEDULE XII

                           AMERICAN HOUSING PARTNERS

                         MORTGAGE LOANS ON REAL ESTATE

                               DECEMBER 31, 1994



HUD insured first mortgages, interests in which were assigned to the Partnership
upon sale of the real estate by the selling limited partnerships:

<TABLE> 
<CAPTION> 
                                                                           (1)          (1)             (1)
                                                         Final            Monthly       Face             Carrying
                                  Type of    Interest   Maturity         Payments      Amount of        Amount of
     Partnership/Location        Property      Rate       Date          to Maturity    Mortgages        Mortgages
-----------------------------   -----------  --------  ---------------  -----------  ---------------   ------------ 
<S>                             <C>          <C>       <C>              <C>          <C>               <C>    
Country Acres Apartments; 
La Porte, Indiana                Apartments      7%    February, 2013      $ 8,473   $ 1,352,230       $ 1,043,817  
                                                                                                                    
Northview Gardens Apartments;                                                                                       
Henry County, Virginia           Apartments      7%    June, 2014            6,115       984,000           779,494  
                                                                                                                    
Sierra Nevada Arms;                                                                                                 
Las Vegas, Nevada                Apartments      7%    July, 2014           37,724     6,070,500         4,875,015  
                                                                                                                    
Springwater Apartments;                                                                                             
Denver, Colorado                 Apartments      7%    October, 2014         9,434     1,510,120         1,212,157  
                                                                                                                    
Sunflower Park Apartments;                                                                                          
Kansas City, Kansas              Apartments      7%    September, 2014       8,558     1,377,225         1,097,501  
                                                                                                                    
Thunderbird Apartments;                                                                                             
Las Vegas, Nevada                Apartments      7%    December, 2012       10,649     1,659,365         1,322,334  
                                                                           -------   -----------       -----------
                                                                           $80,953   $12,953,440       $10,330,318 
                                                                           =======   ===========       ===========  
</TABLE> 

(1)  Partnership's share   

See notes to the schedule.

                                      S-8
<PAGE>
 
                                                                    SCHEDULE XII

                           AMERICAN HOUSING PARTNERS

                   MORTGAGE LOANS ON REAL ESTATE - CONTINUED

                               DECEMBER 31, 1994


HUD insured first mortgages on properties owned by limited partnerships in which
the Partnership has an investment:

<TABLE> 
<CAPTION> 
                                                                                                             (1)           (1)     
                                                                                            Final          Monthly         Face    
                                                             Type of       Interest       Maturity        Payments       Amount of 
            Partnership/Location                             Property        Rate           Date         to Maturity     Mortgages 
-----------------------------------------------------      ------------    --------    ---------------   ----------     -----------
<S>                                                        <C>             <C>         <C>               <C>            <C> 
Columbia-Jennifer, Ltd.; Columbus, Ohio                    Apartments          7%      September, 2016      $ 5,390     $  867,400 
                                                                                                                                  
Homestead Limited Dividend Housing Association;                                                                                   
 Portage, Michigan                                         Apartments        6.5%      January, 2013         16,378      2,935,400 
                                                                                                                                  
Pine Villa Associates; Spokane, Washington                 Apartments          8%      May, 2012              4,930        709,000 
                                                                                                                                  
Tanglewood Terrace, Ltd.; Texarkana, Texas                 Apartments          7%      September, 2013       14,391      2,315,800 
                                                                                                                                  
Woodhaven Apartments Associates; Spokane, Washington       Apartments          7%      November, 2013         8,765      1,410,500 
                                                                                                            -------     ---------- 
                                                                                                                                  
                                                                                                            $49,854     $8,238,100 
                                                                                                            =======     ========== 

HUD insured second mortgages on properties owned by limited 
partnerships in which the Partnership has an investment:                                    

Homestead Limited Dividend Housing Association;                             
 Portage, Michigan                                         Apartments       8.75%      January, 2013        $36,367     $4,835,000
                                                                                                            =======     ==========
                                                                                                                       
<CAPTION> 
                                                                                    (1)     
                                                                                 Carrying  
                                                             Type of             Amount of 
            Partnership/Location                             Property            Mortgages 
-----------------------------------------------------      ------------         ---------- 
<S>                                                        <C>                  <C>        
Columbia-Jennifer, Ltd.; Columbus, Ohio                    Apartments           $  721,558 
                                                                                           
Homestead Limited Dividend Housing Association;                                            
 Portage, Michigan                                         Apartments            2,060,177 
                                                                                           
Pine Villa Associates; Spokane, Washington                 Apartments              555,119 
                                                                                           
Tanglewood Terrace, Ltd.; Texarkana, Texas                 Apartments            1,768,220 
                                                                                           
Woodhaven Apartments Associates; Spokane, Washington       Apartments            1,101,208 
                                                                                ---------- 
                                                                                           
                                                                                $6,206,282 
                                                                                ========== 
                                                                                           
                                                                                           
HUD insured second mortgages on properties owned by limited 
partnerships in which the Partnership has an investment:                                                   
                                                                                           
Homestead Limited Dividend Housing Association;                                            
 Portage, Michigan                                         Apartments           $3,659,282 
                                                                                ========== 
                                                                                           
                                                                      Total     $9,865,564 
                                                                                ==========  
</TABLE> 

(1)  100% amounts; Partnership's share is generally 99%. 

See notes to the schedule.
                                                                            
                                      S-9
                                                                            
<PAGE>
 
                           AMERICAN HOUSING PARTNERS

                             NOTES TO THE SCHEDULE                  SCHEDULE XII

                   MORTGAGE LOANS ON REAL ESTATE - CONTINUED

                               DECEMBER 31, 1994


1.   Each limited partnership in which the Partnership has an investment owns an
     apartment project financed with a HUD-insured mortgage.  Six of these
     limited partnerships sold their properties for cash and all-inclusive
     residual notes receivable, while remaining directly liable under the HUD
     mortgage.  These limited partnerships assigned the residual notes
     receivable and the underlying HUD mortgages to their partners, including
     the Partnership.

2.   The total federal income tax basis is the same as the carrying amounts in
     the schedule.

3.   Carrying amount of the mortgage loans:

<TABLE>
<CAPTION>
                                                                   (2)          
                                                             Mortgage Loans     
                                              (1)              of Limited       
                                           Mortgage           Partnerships      
                                         Loans Assigned       in Which the      
                                            to the           Partnership Has    
                                           Partnership        an Investment     
                                         --------------      ---------------    
     <S>                                 <C>                 <C>                
     Balance at January 1, 1992          $10,894,425          $6,657,535 
                                                                                
     Payments on principal during                                               
      the year                              (211,492)           (140,264) 
                                         -----------          ----------
                                                                                
     Balance at December 31, 1992         10,682,933           6,517,271  
                                                                                
     Payments on principal during                                               
      the year                              (200,104)           (147,987)
                                         -----------          ---------- 
                                                                                
     Balance at December 31, 1993         10,482,829           6,369,284
                                                                                
     Borrowings during the year                    -           3,659,282   
                                                                                
     Payments on principal during                                               
      the year                              (152,511)          (163,002) 
                                         -----------         ---------- 
                                                                                
     Balance at December 31, 1994        $10,330,318         $9,865,564  
                                         ===========         ========== 
</TABLE>

     (1)  Partnership's share

     (2)  100% amounts; Partnership's share is generally 99%.

                                      S-10
<PAGE>
 
                                                                   SCHEDULE XIII

                           AMERICAN HOUSING PARTNERS

              INVESTMENTS IN AND ADVANCES TO LIMITED PARTNERSHIPS

                         YEAR ENDED DECEMBER 31, 1994



The following schedule summarizes the cumulative equity in net income and losses
and cash distributions not recorded in the investments in and advances to
limited partnerships account, as the carrying values of the investments are at
zero:

<TABLE>
<CAPTION>
                                                                                                                     (1)
                                 % of        % of Interest     Balance                              Equity in       Cash  
                                Ownership      in Profit       January      Adjust-     Invest-    Net Income     Distri- 
    Limited Partnership         Interest       and Losses      1, 1994      ments       ments       (Losses)      butions 
----------------------------  -----------   --------------  -----------   ---------   ---------   -----------   --------- 
<S>                           <C>           <C>             <C>           <C>         <C>         <C>           <C>       
Columbia-Jennifer, Ltd.          98.98%          98.98%     $  (207,413)  $      -    $       -   $   (8,014)   $       - 
Homestead Limited Dividend                                                                                                
 Housing Associates              99.00           99.00         (444,627)    (1,586)           -       22,403     (552,791)
Pine Villa Associates            98.52           99.00         (254,085)         -            -       95,318            - 
Tanglewood Terrace, Ltd.         99.00           99.00       (1,064,374)         -            -      (54,283)           - 
Woodhaven Apartments                                                                                                      
 Associates                      95.00           99.00         (539,975)         -            -       57,899            - 
                                                            -----------   ---------   ---------   ----------    --------- 
                                                                                                                          
                                                            $(2,510,474)  $ (1,586)   $       -   $  113,323    $(552,791)
                                                            ===========   =========   =========   ==========    =========

<CAPTION> 
                                                                                
                                     Balance        
                                    December    
    Limited Partnership             31, 1994    
----------------------------       -----------     
<S>                                <C>         
Columbia-Jennifer, Ltd.            $  (215,427)
Homestead Limited Dividend                                                
 Housing Associates                   (976,601)
Pine Villa Associates                 (158,767)
Tanglewood Terrace, Ltd.            (1,118,657)
Woodhaven Apartments                  
 Associates                           (482,076)
                                   ----------- 
             
                                   $(2,951,528) 
                                   ===========
</TABLE> 

(1)  Distributions in excess of investment    $  (559,041)
     Repayment of advance to Homestead
      previously written off                        6,250
                                              -----------
 
     Cash Distributions                       $   552,791
                                              ===========

                                      S-11