<PAGE>

                                 UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                   FORM 10-Q

                  QUARTERLY REPORT UNDER SECTION 13 or 15 (d)
                    of the Securities Exchange Act of 1934
                   for the quarter ended September 30, 2001

                            Commission File Number
                                    0-17669
                                    -------

                  NATIONAL HOUSING TRUST LIMITED PARTNERSHIP
                       (A Delaware Limited Partnership)

                 I.R.S. Employer Identification No. 04-2981989
                                                    ----------

                   2335 North Bank Drive, Columbus, OH 43220
      Registrant's Telephone Number, Including Area Code: (614) 451-9929

       Securities Registered Pursuant to Section 12(b) of the Act: None
          Securities Registered Pursuant to Section 12(g) of the Act:

                     Units of Limited Partnership Interest

     Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

                                Yes  X  No___
                                    ---

                                       1
<PAGE>

                  NATIONAL HOUSING TRUST LIMITED PARTNERSHIP
                        A DELAWARE LIMITED PARTNERSHIP
                         September 30, 2001 FORM 10-Q

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
PART I FINANCIAL INFORMATION                                                                   PAGE NO.
----------------------------                                                                   --------
<S>                                                                                            <C>
Item 1.  Unaudited Combined Financial Statements

    Combined Balance Sheets...................................................................    3

    Combined Statements of Operations ........................................................    5

    Combined Statements of Cash Flows.........................................................    7

    Notes to Combined Financial Statements....................................................    8

Item 2.  Management's Discussion and Analysis of
         Financial Condition and Results
         of Operations........................................................................    9

Item 3.  Quantitative and Qualitative Disclosures about Market Risk ..........................   13

PART II OTHER INFORMATION
-------------------------

    Other Information.........................................................................   14

    Signatures................................................................................   15
</TABLE>

                                       2
<PAGE>

                   NATIONAL HOUSING TRUST LIMITED PARTNERSHIP
            AND ITS SUBSTANTIALLY WHOLLY-OWNED OPERATING PARTNERSHIPS
  COMBINED BALANCE SHEETS SEPTEMBER 30, 2001 (UNAUDITED) AND DECEMBER 31, 2000
                                 (In Thousands)

<TABLE>
<CAPTION>
                                                       September 30    December 31
ASSETS                                                     2001           2000
----------------------------------------------         ------------   ------------
<S>                                                    <C>            <C>
Current Assets:
   Cash and cash equivalents                           $        549   $        858
   Tenants' security deposits                                   496            441
   Mortgage escrow deposits                                     858            581
   Prepaid expenses and other assets                          1,575            934
                                                       ------------   ------------
      Total current assets                                    3,478          2,814
                                                       ------------   ------------


Restricted Cash:                                              6,665          6,077
                                                       ------------   ------------

Rental property held for sale:                                2,500          2,500
                                                       ------------   ------------

Rental property:
   Buildings and improvements                                65,143         64,827
   Furniture and equipment                                    2,373          2,373
                                                       ------------   ------------
                                                             67,516         67,200
    Less accumulated depreciation                           (29,233)       (27,295)
                                                       ------------   ------------
                                                             38,283         39,905
   Land                                                       3,097          3,097
                                                       ------------   ------------
                                                             41,380         43,002
                                                       ------------   ------------

      Total assets                                     $     54,023   $     54,393
                                                       ============   ============
</TABLE>

                     The accompanying notes are an integral
                   part of the combined financial statements.

                                       3
<PAGE>

                  NATIONAL HOUSING TRUST LIMITED PARTNERSHIP
           AND ITS SUBSTANTIALLY WHOLLY-OWNED OPERATING PARTNERSHIPS
                      COMBINED BALANCE SHEETS, CONTINUED
                    (In Thousands, except Investment Units)

<TABLE>
<CAPTION>
LIABILITIES AND PARTNERS' CAPITAL                        September 30   December 31
                                                             2001           2000
------------------------------------------------------   -----------    -----------
                                                          (Unaudited)
<S>                                                      <C>            <C>
Current liabilities:
   Accounts payable and accrued expenses                 $     3,472    $     2,817
   Rents received in advance                                      54             57
   Deposits held                                                 458            471
   Accrued interest on mortgage notes payable                    212            224
   Current maturities of term debt                             1,174          1,174
                                                         -----------    -----------

      Total current liabilities                                5,370          4,743
                                                         -----------    -----------

Term debt, less current maturities:
   Mortgage notes payable                                     35,468         38,275
   Promissory notes, including accrued
     interest payable                                         36,713         32,703
                                                         -----------    -----------
                                                              72,181         70,978
                                                         -----------    -----------

Partners' capital:
   General Partners:
     NHT, Inc.                                                   (29)           (27)
     Other Operating General Partners                           (196)          (175)

   Limited partners:
     Issued and outstanding 1,014,668
      investment units                                       (23,303)       (21,126)
                                                         -----------    -----------

                                                             (23,528)       (21,328)
                                                         -----------    -----------

      Total liabilities and partners' capital            $    54,023    $    54,393
                                                         ===========    ===========
</TABLE>

                     The accompanying notes are an integral
                   part of the combined financial statements.

                                       4
<PAGE>

                  NATIONAL HOUSING TRUST LIMITED PARTNERSHIP
           AND ITS SUBSTANTIALLY WHOLLY-OWNED OPERATING PARTNERSHIPS
                 COMBINED STATEMENTS OF OPERATIONS (UNAUDITED)
            FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
                    (In Thousands, except per Unit Amounts)

                                                      2001            2000
                                                   ----------      ----------
Revenues:
  Rental revenues                                  $    3,170      $    2,933
  Other income                                            155             133
                                                   ----------      ----------

    Total revenues                                      3,325           3,066
                                                   ----------      ----------

Expenses:
  Administration                                          434             375
  Operating and maintenance                               623             847
  Management fees                                         393             235
  Partnership asset management fees                        84              82
  Utilities                                               341             335
  Taxes and insurance                                     418             402
  Depreciation and amortization                           642             703
                                                   ----------      ----------

    Total expenses                                      2,935           2,979
                                                   ----------      ----------

    Income (loss) from rental operations                  390              87
                                                   ----------      ----------

Other revenues and (expenses):
  Interest income                                          99              96
  Interest expense                                       (862)           (890)
                                                   ----------      ----------


     Net loss                                      $     (373)     $     (707)
                                                   ==========      ==========


Net loss per limited partnership unit              $    (0.36)     $    (0.70)
                                                   ==========      ==========

                     The accompanying notes are an integral
                   part of the combined financial statements.

                                       5
<PAGE>

                  NATIONAL HOUSING TRUST LIMITED PARTNERSHIP
           AND ITS SUBSTANTIALLY WHOLLY-OWNED OPERATING PARTNERSHIPS
                 COMBINED STATEMENTS OF OPERATIONS (UNAUDITED)
             FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
                    (In Thousands, except per Unit Amounts)

                                                      2001            2000
                                                   ----------      ----------
Revenues:
  Rental revenues                                  $    9,229      $    8,698
  Other income                                            378             361
                                                   ----------      ----------

    Total revenues                                      9,607           9,059
                                                   ----------      ----------

Expenses:
  Administration                                        1,443           1,316
  Operating and maintenance                             2,019           2,245
  Management fees                                         962             771
  Partnership asset management fees                       253             245
  Utilities                                             1,308           1,069
  Taxes and insurance                                   1,370           1,322
  Depreciation and amortization                         1,926           2,113
                                                   ----------      ----------

    Total expenses                                      9,281           9,081
                                                   ----------      ----------

    Income (loss) from rental operations                  326             (22)
                                                   ----------      ----------

Other revenues and (expenses):
  Interest income                                         185             174
  Interest expense                                     (2,712)         (2,632)
                                                   ----------      ----------

                                                   $   (2,201)     $   (2,480)
     Net loss                                      ==========      ==========


Net loss per limited partnership unit              $    (2.17)     $    (2.44)
                                                   ==========      ==========

                     The accompanying notes are an integral
                   part of the combined financial statements.

                                       6
<PAGE>

                  NATIONAL HOUSING TRUST LIMITED PARTNERSHIP
           AND ITS SUBSTANTIALLY WHOLLY-OWNED OPERATING PARTNERSHIPS
                 COMBINED STATEMENTS OF CASH FLOWS (UNAUDITED)
             FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
                                (In Thousands)

                                                             2001        2000
                                                          ----------  ----------
Cash flows from operating activities:
     Net loss                                             $  (2,201)  $  (2,480)
     Adjustments to reconcile net loss to net cash
     provided by operating activities:
          Depreciation and amortization                       1,926       2,113
          Accrued interest on promissory notes                1,442       1,268
     Changes in operating assets and liabilities:
          Increase (Decrease) in deposits, prepaids and
              other assets                                     (961)       (333)
          Increase in accounts payable
              and accrued expenses                              656         892
          Decrease in other current liabilities                 (28)       (143)
                                                          ---------   ---------
Cash provided by operations                                     834       1,317
                                                          ---------   ---------

Investing activities:
     Additions to buildings, furniture and
      equipment, net                                           (316)       (435)
     Deposits to restricted cash, net                          (588)        (72)
                                                          ---------   ---------
      Cash used for investing activities                       (904)       (507)
                                                          ---------   ---------

Financing Activities:
     General partners cash distributions                          -
    Additions to term debt                                      650          42
    Payments of term debt                                      (889)       (795)
                                                          ---------   ---------
     Net cash used for financing activities                    (239)       (753)
                                                          ---------   ---------

Increase in cash and cash equivalents                          (309)         57

Cash and cash equivalents beginning of year                     858         914
                                                          ---------   ---------

Cash and cash equivalents end of period                   $     549   $     971
                                                          =========   =========


Supplemental schedule of non-cash investing and
 financing activities:
 Liabilities reclassified by the lender from term
 debt to promissory note (paid out of cash flow) debt         2,567           -
                                                          ---------   ---------

                    The accompanying notes are an integral
                  part of the combined financial statements.

                                       7
<PAGE>

                NATIONAL HOUSING TRUST LIMITED PARTNERSHIP AND
             ITS SUBSTANTIALLY WHOLLY OWNED OPERATING PARTNERSHIPS
                                  (UNAUDITED)
                    NOTES TO COMBINED FINANCIAL STATEMENTS

NOTE A--BASIS OF PRESENTATION

The accompanying combined financial statements include the accounts of National
Housing Trust Limited Partnership (Investment Partnership) and the Operating
Partnerships in which it has acquired significant limited partnership interests.

The information furnished reflects all adjustments (all of which were of a
normal recurring nature) which are, in the opinion of management, necessary to
fairly present the combined financial position, results of operations, and cash
flows on a consistent basis.

The accompanying unaudited combined financial statements are presented in
accordance with the requirements for Form 10-Q and consequently do not include
all disclosures normally required by generally accepted accounting principles.
Reference should be made to the Partnership's 2000 Annual Report on Form 10-K
for additional disclosures including a summary of the Partnership's accounting
policies which are not significantly different.

                                       8
<PAGE>

ITEM 2    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
          RESULTS OF OPERATIONS

General
-------

In 1988, the Investment Partnership raised $20,293,000 in gross proceeds through
a public offering. After paying the selling, offering and organization expenses
of the offering, the Investment Partnership had $17,249,000 in net proceeds. Of
the net proceeds, $260,000 was deposited in the Investment Partnership reserve
and $16,989,000 was invested in 31 Operating Partnerships. The 31 Operating
Partnerships that were acquired own low-income housing developments eligible for
the low-income housing tax credit. One of the Properties was also eligible for
the historic rehabilitation tax credit. The 31 acquisitions occurred from
October 1988 through March 1990. Two Operating Partnerships were liquidated in
1998, having paid remaining Operating Partnership liabilities out of available
Operating Partnership cash. Any cash in excess of liabilities was distributed to
the Partnership. No distributions were made to Unit holders. The Springchase
Apartments Limited Partnership was dissolved in 1999. The Trinidad Apartments
Limited Partnership is expected to be dissolved once all litigation has been
resolved.

Each Operating Partnership's Property qualifies for the LIHTC. The LIHTC was
created by the 1986 Tax Reform Act and is governed by Section 42 of the Internal
Revenue Code. In order for a Property to qualify for the LIHTC, the Property
must be utilized as a low-income property for 15 years before it can be sold.
The General Partner anticipates the Properties will be sold in the years 2003
through 2008. The Investment Partnership serves as a conduit of the Operating
Partnerships' tax credits, passive losses, portfolio income and other tax
information to the holders of Units of limited partnership interest in the
Investment Partnership (the "Unit holders"). The LIHTCs are allocated to the
Unit holders for 10 years after a property has been placed in service and rented
up. The tax credits were first allocated to Unit holders in 1988 and are
anticipated to continue until 2001. The Investment Partnership elected a special
option available in 1990 to accelerate the LIHTC for individuals who had an
interest in the Investment Partnership before October 26, 1990. Qualifying Unit
holders received a tax credit of 150% of the LIHTC otherwise allowable for the
first tax year ending December 31, 1990. The remaining tax credit available for
1991 and subsequent tax years is being reduced on a pro rata basis by the amount
of the 1990 increased credit. Non-qualifying Unit holders will receive the
original unaccelerated tax credit for the remaining qualifying tax years of
their investment.

An analysis of future tax credits anticipated based upon current information and
assuming no changes in the Operating Partnerships indicates an estimate of
future tax credits for the qualifying Unit holders who received the 1990
acceleration to be as follows: approximately $ .19 of credit per unit for the
year ending December 31, 2001.

In certain respects government-assisted housing complexes differ from
conventional housing complexes. These include (a) greater financing leverage
than is usual in conventional complexes, (b) review of compliance with
construction and other standards and (c) various contingency reserves required
in connection with such government assistance programs. Government-assisted
housing is also subject to special conditions and risks including, but not
limited to, (a) general surveillance by the appropriate governmental assistance
agency, which may include the application of rental and other guidelines
affecting tenant eligibility, operating costs and rental levels, (b) maintenance
of a reserve fund for replacements in an amount paid concurrently with
amortization of the mortgage and in addition to payments of principal and
interest, restricted such that withdrawals from the fund are subject to the
prior approval of the appropriate governmental assistance agency, (c) compliance
with the HUD regulations regarding management of the premises, (d) limitations
on salability, as contained in regulatory agreements with the appropriate
governmental assistance agency, (e) limitations on rent increases, and (f) the
uncertain effects of changes in complex rules and regulations governing such
government-assisted programs, or changes in the manner in which those
regulations are interpreted.

Government assistance payments may be reduced in the event that a project rents
less than 100% of its units eligible for rental subsidies to qualified low
income tenants. HUD generally elects to reduce subsidies only in the event that
occupancy levels for qualified tenants drop below 95% for a period of two years.
Finally, HUD commitments are subject to HUD's appropriation of federal funds
sufficient to meet its obligations in any given year. At the present time,
certain legislative initiatives and governmental budget negotiations could
result in a reduction of funds available for the various HUD-administered
housing programs and could also result in new limitations on subsidized rent
levels. This in turn could adversely impact the net operating income generated
by the Properties.

                                       9
<PAGE>

Real property investments are subject to varying degrees of risk. Revenues and
property values may be adversely affected by the general economic climate, the
local economic climate and local real estate conditions, including (i) the
perceptions of prospective tenants of the attractiveness of the property; (ii)
the ability to retain qualified individuals to provide adequate management and
maintenance of the property; (iii) the inability to collect rent due to
bankruptcy or insolvency of tenants or otherwise; and (iv) increased operating
costs. Real estate values may also be adversely affected by such factors as
applicable laws, including tax laws, interest rates levels and the availability
of financing.

The availability of a pool of qualified and interested buyers for the Investment
Partnership's remaining assets is critical to the Investment Partnership's
ability to realize the fair market values of such properties at the time of
their final dispositions. Demand by buyers of multi-family apartment properties
is affected by many factors, including the size, quality, age, condition and
location of the subject property, potential environmental liability concerns,
the existing debt structure, the liquidity in the debt and equity markets for
asset acquisitions, the general level of market interest rates and the general
and local economic climates. In addition, because of the government restrictions
on rental revenues and the related capital expenditure reserve requirements and
cash flow distribution limitations, there are a limited number of potential
buyers in the market for government subsidized, low-income housing properties
such as the Investment Partnership has invested in. Furthermore, the current
uncertainty regarding potential future reductions in the level of federal
government assistance for these programs may further restrict the Properties'
marketability.

The Properties are subject to substantial debt, in many cases including seller
financing on which interest has accrued since the Investment Partnership
invested in the Properties. Most of the Properties are dependent upon continuing
government subsidies. In addition, many of the Properties are located in market
areas that would not support current rents. Finally, most of the Properties are
subject to use restrictions that limit their use to low-income housing beyond
the end of the tax credit compliance period.

The ownership structure of the Investment Partnership's investments through
Operating Partnerships could adversely impact the timing of the Investment
Partnership's planned dispositions of its remaining assets and the amount of
proceeds received from such dispositions. It is possible that the general
partners of the Operating Partnerships could have economic or business interests
which are inconsistent with those of the Investment Partnership. Given the
limited rights which the Investment Partnership has under the terms of the
Operating Partnership agreements, any conflict between the partners could result
in delays in completing a sale of the related operating property and could lead
to an impairment in the marketability of the property to third parties for
purposes of achieving the highest possible sale price.

For these and other reasons, in Management's judgment, upon sale of many of the
Properties, it is likely that sale proceeds will not be in excess of the debt
financing, liabilities of the Operating Partnership, the expenses of sale and
liabilities of the Investment Partnership, therefore, it is likely that the sale
proceeds will not be sufficient to make any distribution to the Unit holders
and, depending on the Unit holders tax situation, the Unit holder may incur tax
liability without cash distributions to pay the taxes resulting from those
sales.

Properties
----------

As of September 30, 2001, average occupancy of the Properties was 94%.

The financial performance of the Operating Partnerships will be impacted by the
competition from comparable properties in their local market areas. The
occupancy levels achievable at the Properties and the rental rates at the
non-subsidized Properties are largely a function of supply and demand in the
markets. In many markets across the country, development of new multi-family
properties has increased significantly over the past two years. Existing
apartment properties in such markets could be expected to experience increased
vacancy levels, declines in effective rental rates and, in some cases, declines
in estimated market values as a result of the increased competition. There are
no assurances that these competitive pressures will not adversely affect the
operations and/or market values of the Operating Partnerships in the future and,
in particular, subsequent to the expiration of any existing subsidy agreements.

A Detroit, Michigan Property
----------------------------
During 1998, an impairment loss in the amount of $4,100,000 was recorded with
respect to the Research Park project in Detroit, Michigan, which is owned by one
of the Operating Partnerships. The loss was recorded under the requirements of
Financial Accounting Standards Board Statement No. 121 ("SFAS No. 121"),
"Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to
Be Disposed Of". SFAS No. 121 requires impairment losses to be recognized for
long-lived assets used in operations when indicators of impairment are present
and the undiscounted cash

                                       10
<PAGE>

flows are not sufficient to recover the assets' carrying amount. Indicators
present during 1998 for this Operating Partnership include cash flow from
operations that was less than the debt service on the property; however, debt
service was paid by allowing trade payables to become larger and more
delinquent. Therefore, an assessment was done to evaluate the undiscounted cash
flows, which were not sufficient to recover the assets' carrying amount. Based
on this assessment, an impairment loss of $4,100,000 was recognized to reduce
the carrying amount of the property to its estimated fair value of $4,300,000.
During 1999, the property continued to have cash flow problems relating to
higher than desired vacancy and high maintenance costs. Effective June 1, 1999,
a new management company was hired for the property. In addition, the Managing
General Partner continues to negotiate with the Michigan State Housing
Development Authority to work out a solution to enable the property to generate
positive cash flow. During 2000 and 2001, the property continues to have cash
flow difficulties. At this time, there is no assurance as to how these matters
will be resolved.

A Greenville, Michigan Property
-------------------------------
A Greenville, Michigan Property has experienced continuing cash flow deficits.
The property has not adequately funded reserves for taxes, insurance and
replacement reserves and is deficient in the payment of real estate taxes. The
Managing General Partner has tried working with the Rural Development Authority
to resolve the cash flow problems; however, these problems continue to be
unresolved. As a part of a work-out strategy, the Managing General Partner has
entered into a purchase and sale contract to sell the property . This was
approved by the Partnership as Limited Partner of the Operating Partnership and
is slated to close in December. Since this property is being sold prior to the
end of the 15-year compliance period, the credits must be bonded. Bonds have
been approved but the price of the bonds to be paid out of the sale proceeds is
yet to be determined. The property to date continues to have cash flow
difficulties.

A Gaylord, Michigan Property
----------------------------
A Gaylord, Michigan Property has experienced a need for maintenance and repairs
in excess of the available reserves and operating cash flow. The City of Gaylord
has issued a letter requiring the repairs be performed. The Managing General
Partner has tried working with the Rural Development Authority to attempt to
resolve problems; however, these problems continue to be unresolved. As a part
of a work-out strategy, the Managing General Partner has entered into a purchase
and sale contract to sell the property. This was approved by the Partnership as
Limited Partner of the Operating Partnership and is slated to close in late
November. Since the property is being sold prior to the end of the 15-year
compliance period, the credits must be bonded. Bonds have been approved but the
price of the bonds to be paid out of the sale proceeds is yet to be determined.
The property continues to date to have cash flow difficulties.

Four Oklahoma Properties
------------------------
The four Oklahoma Properties have completed the HUD Restructuring Mark to Market
Program (See further detail in Liquidity and Capital Resources). Additional debt
was added to the property provided by HUD, funding the additional replacement
reserves for the capital replacement project. In addition the debt was
restructured by HUD into two pieces -a term debt piece and a promissory note
piece paid out of cash flows. Starting in 2001, a nine month capital improvement
project began, as part of this agreement, all the costs will be covered by the
replacement reserve. This project is taking longer than expected and now is
projected to be completed in eighteen months rather than nine.

Other Property Issues
---------------------
At September 30, 2001, five other properties have cash flow difficulties, these
properties continue to run at the edge of break-even with a slight change in
occupancy or operating cost causing a slight cash flow problem. Nine properties
located in the Midwest have had higher than normal energy costs for the first
three quarters of 2001, which as created some cash flow shortages. Many of the
properties in the portfolio continue to operate at the edge of break-even,
incurring cash flow difficulties whenever there are reductions in occupancy or
increased operating and utility expenses.

Liquidity and Capital Resources
-------------------------------
Liquidity is defined as an entity's ability to meet its current and long-term
financial obligations. If a Property were to lose its governmental rent,
interest subsidy or mortgage insurance, the Operating Partnership holding such
Property might be unable to fund expenses on an ongoing basis.

Liquidity shortfalls might be covered by federal governmental subsidy programs,
by state and local agencies, or by funds from the Investment Partnership
reserves, although there is no assurance that such sources would be available
or, if available, sufficient to cover any liquidity shortfall. A liquidity
shortfall, for whatever reason, might result in a sale,

                                       11
<PAGE>

refinancing, or foreclosure of the Property, any one of which could have
material adverse tax consequences to a Unit holder, including a partial
recapture of previously allocated LIHTCs.

Material changes have been made and additional changes have been proposed by
various Members of Congress and the Clinton Administration in the programs of
HUD. The Multifamily Assisted Housing Reform and Affordability Act of 1997,
Public Law 105-65, effective October 1, 1997, established a debt restructuring
program applicable to all HUD-Insured projects with rents above those of
comparable properties in local markets. Under the program, subsided rent levels
generally are reduced to market levels and the debt may be restructured into two
or three mortgages. The first mortgage loan is set at a level supportable by the
lower subsidized rents, and the second and third mortgage loans are payable only
out of cash flow after other approved expenses and sale or refinancing proceeds.
In many cases, rent subsidies will become tenant-based, meaning that the
subsidies may move with the tenants. However, for certain projects, such as
those that predominately serve elderly or disabled families or are located in
markets with an inadequate supply of affordable housing, the rent subsidies may
continue to be project-based.

HUD has entered into contracts to carry out the restructuring with state housing
finance agencies and others ("Participating Administrative Entities" or "PAEs").
The PAEs have authority to set rents above the comparable rents for only 20% of
their inventory each year. These rents will be based on approved project
budgets, and are capped at 120% of FMRs, except for up to 5% of the inventory,
which can have budget-based rents above 120% of FMRs based on a showing of
special need. Owners who have engaged in adverse financial or managerial actions
are barred from participating in the restructuring program.

The Operating Partnerships own eleven Properties whose Section 8 contracts have
expired or will expire in fiscal year 2001, and are not subject to optional
renewal by the owner. The General Partner expects that Section 8 contracts for
all of these Properties will be renewed by HUD at current levels until at least
the end of fiscal year 2001, although there can be no assurance that HUD will do
so. Four of these properties have rents in excess of 100% of HUD-established
fair market rents. Four of these properties are subject to the mark to market
program in the process of restructuring with HUD (See Four Oklahoma Properties).
Currently, the Managing General Partner and HUD have agreed on a restructuring
proposal that provides for rehabilitation, a reduction of rents and a
corresponding reduction of debt service. Although it is not anticipated,
additional projects may become subject to the restructuring program. The General
Partner will work with the general partners of the Operating Partnerships to
seek to renew all expiring Section 8 contracts, and if required or appropriate,
to participate in the program to restructure loans and rent subsidies. Of the
Investment Partnership's remaining projected LIHTCs, approximately 4% are
attributable to these Operating Partnerships.

Restructuring could affect demand for and cash flow of many of the Properties,
as well as potentially create debt forgiveness taxable income. Moreover, a shift
to tenant-based subsidies could lead over time to lower occupancies and lower
rents, adversely affecting cash flow. The General Partner is monitoring the
development of HUD policy guidance and legislation. The General Partner is
unable to predict with certainty the impact of HUD program restructuring on the
Operating Partnerships, but it is possible that a restructuring could have a
material adverse effect on one or more of the Operating Partnerships, which in
turn could have a material adverse effect on the Investment Partnership.

At September 30, 2001 restricted cash was $6,665,000. The restricted cash was
composed of the Investment Partnership reserve of $571,000 and Operating
Partnership reserves of $6,094,000. Deposits and withdrawals from Operating
Partnership reserves are generally regulated by a governing federal, state or
local agency. Investment Partnership reserves are available to fund repairs and
maintenance as well as operational expenses, while the reserves maintained by an
Operating Partnership are typically available only for the Property owned by
such Operating Partnership. Historically, the Investment Partnership reserve has
been available to fund obligations of the Investment Partnership, including the
management fee payable by the Investment Partnership to the General Partner. As
of December 31, 2000 the General Partner voluntarily deferred payment of
$876,000 of its supervisory and program management fee. The General Partner is
under no obligation to continue to defer this fee, and there can be no assurance
that the Investment Partnership reserve will be sufficient to satisfy the
liquidity requirements of any given Operating Partnership in the event that the
reserves of such Operating Partnership are insufficient for this purpose.

Low-income housing projects frequently generate limited cash flow and,
therefore, the potential for cash flow deficits exists. The General Partner does
not anticipate that the Investment Partnership will distribute cash to Unit
holders in circumstances other than refinancing or disposition of its
investments in the Operating Partnerships. Moreover, especially in light of the
reduced availability of subsidies and the consequent reduction in market value
of the Properties, there can be no assurance of cash distributions in the event
of refinancing or disposition. Unit holders could be faced

                                       12
<PAGE>

with an obligation to pay taxes as a result of disposition of the Properties but
no cash distributions with which to pay those taxes.

Results of Operations
---------------------

The September 30, 2001 net loss of $2,201,000 decreased 11.3% from the September
30, 2000 net loss of $2,480,000. The reasons for the differences are discussed
below.

Total revenue increased $548,000 (6.0%) when comparing the nine months ended
September 30, 2001 and 2000.

Total expenses exclusive of depreciation and interest for the nine months ended
September 30, 2001 and 2000 were $7,355,000 and $6,968,000, respectively. The
$387,000 (5.5%) increase in expenses between 2001 and 2000 primarily relates to
an increase in administrative expenses of $127,000 (9.6%), a decrease in
operating and maintenance expenses of $226,000 (10.1%), an increase in
management fees of $191,000 (24.8%), and an increase in utility expenses of
$239,000 (22.4%). The increase in administrative expenses in 2001 relates to an
increase in management salaries for some of the operating partnerships. The
decrease in operating and maintenance expenses relates to an increase in the
prior year (2000) renovation and replacement expenses for three properties as
compares to an average amount for 2001. The increase in management fees relates
to three properties being able to pay an incentive management fee in 2001. The
increase in utility expenses relates to a general increase in energy costs for
seven of the Midwest properties.

In recent years rental income, after the HUD rent adjustments, has not been
increasing at a rate equivalent to increases in expenses (excluding depreciation
and interest). To date, inflation has not had a significant impact on the
Partnerships' combined operations. However, rent levels of the Properties are
generally limited by the requirements of the low-income housing tax credit and
are subject to strict governmental regulation. In the event of significant
inflation, including increases in the price of utilities resulting from general
increases in the cost of energy, the Operating Partnerships may be unable to
increase rents sufficiently to compensate for increases in expenses. Due to the
changes in HUD programs, future increases in subsidy income may be limited.

Other
-----

The Operating Partnerships carry comprehensive liability, fire, flood, extended
coverage and rental loss insurance with respect to their properties with insured
limits and policy specifications that management believes are customary for
similar properties. There are, however, certain types of losses (generally of a
catastrophic nature such as wars, floods or earthquakes) which may be either
uninsurable, or, in management's judgment, not economically insurable. Should an
uninsured loss occur, the Investment Partnership could lose both its invested
capital in and anticipated profits from the affected property.

Under various federal, state and local environmental laws, ordinances and
regulations, a current or previous owner or operator of real property may become
liable for the costs of the investigation, removal and remediation of hazardous
or toxic substances on, under, in or migrating from such property. Such laws
often impose liability without regard to whether the owner or operator knew of,
or was responsible for, the presence of such hazardous or toxic substances. The
Investment Partnership is not aware of any notification by any private party or
governmental authority of any non-compliance, liability or other claim in
connection with environmental conditions at any of its Properties that it
believes will involve any expenditure which would be material to the Investment
Partnership, nor is the Investment Partnership aware of any environmental
condition with respect to any of its Properties that it believes will involve
any such material expenditure. However, there can be no assurance that any
non-compliance, liability, claim or expenditure will not arise in the future.

ITEM 3    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

None

                                       13
<PAGE>

PART II. OTHER INFORMATION
--------------------------

ITEM 1.                  LEGAL PROCEEDINGS

                         None

ITEM 2.                  CHANGES IN SECURITIES

                         None

ITEM 3.                  DEFAULTS UPON SENIOR SECURITIES

                         None

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

                         None

ITEM 5.                  OTHER INFORMATION

                         None

ITEM 6.                  EXHIBITS AND REPORTS ON FORM 8-K

                         None

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<PAGE>

                                  SIGNATURES

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


                           National Housing Trust Limited Partnership
                           ------------------------------------------
                                          (Registrant)



Date  November 13, 2001              By /s/ James A. Bowman.
      ----------------------------      --------------------------
                                        James A. Bowman
                                        President, NHT, Inc.


Date  November 13, 2001              By /s/ Susan E. Basting.
      ----------------------------      --------------------------
                                        Susan E. Basting
                                        Treasurer, NHT, Inc.

                                       15