<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549


                                    FORM 10-Q


                Quarterly Report Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

                For the Quarterly Period Ended SEPTEMBER 30, 1997

                         Commission File Number 2-92352

                            HOUSING PROGRAMS LIMITED
                       (A California Limited Partnership)

                  I.R.S. Employer Identification No. 95-3906167

                         9090 WILSHIRE BLVD., SUITE 201
                           BEVERLY HILLS, CALIF. 90211

                         Registrant's Telephone Number,
                       Including Area Code (310) 278-2191


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


                                  Yes [X] No [ ]



<PAGE>   2

                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                               INDEX TO FORM 10-Q

                    FOR THE QUARTER ENDED SEPTEMBER 30, 1997


<TABLE>
<CAPTION>


PART I.  FINANCIAL INFORMATION

<S>                                                                          <C>
    Item 1.  Financial Statements

              Balance Sheets, September 30, 1997 and December 31, 1996 .......1

              Statements of Operations,
                 Nine and Three Months Ended September 30, 1997 and 1996......2

              Statement of Partners' Deficiency,
                 Nine Months Ended September 30, 1997 ........................3

              Statements of Cash Flow,
                 Nine Months Ended September 30, 1997 and 1996................4

              Notes to Financial Statements ..................................5

    Item 2.  Management's Discussion and Analysis of Financial
                 Condition and Results of Operation..........................10


PART II.  OTHER INFORMATION

    Item 1.  Legal Proceedings...............................................12

    Item 6.  Exhibits and Reports on Form 8-K................................12

    Signatures...............................................................13

</TABLE>



<PAGE>   3

                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                                 BALANCE SHEETS

                    SEPTEMBER 30, 1997 AND DECEMBER 31, 1996

<TABLE>
<CAPTION>

                                     ASSETS
                                                                    1997             1996
                                                                 (Unaudited)       (Audited)
                                                                ------------      ------------

<S>                                                             <C>               <C> 
INVESTMENTS IN LIMITED PARTNERSHIPS
    (Notes 1 and 2)                                             $ 13,185,509      $ 14,364,056

CASH AND CASH EQUIVALENTS (Note 1)                                 1,197,882           948,476

OTHER ASSETS                                                          64,299                --
                                                                ------------      ------------
          TOTAL ASSETS                                          $ 14,447,690      $ 15,312,532
                                                                ============      ============

                      LIABILITIES AND PARTNERS' DEFICIENCY

LIABILITIES:
     Notes payable (Notes 3 and 6)                              $  8,669,743      $ 10,169,743
     Accrued interest payable (Notes 3 and 6)                      9,732,857        10,811,557
     Accrued fees and expenses due general
         partners (Note 4)                                         1,549,401         1,317,044
     Accounts payable                                                 20,226            30,905
                                                                ------------      ------------
                                                                  19,972,227        22,329,249
                                                                ------------      ------------
COMMITMENTS AND CONTINGENCIES (Notes 2, 4 and 5)

PARTNERS' DEFICIENCY:
     General partners                                               (305,991)         (320,913)
     Limited partners                                             (5,218,546)       (6,695,804)
                                                                ------------      ------------
                                                                  (5,524,537)       (7,016,717)
                                                                ------------      ------------
           TOTAL LIABILITIES AND PARTNERS'
                DEFICIENCY                                      $ 14,447,690      $ 15,312,532
                                                                ============      ============
</TABLE>


   The accompanying notes are an integral part of these financial statements.



                                       1

<PAGE>   4
                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                            STATEMENTS OF OPERATIONS

             NINE AND THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996

                                   (Unaudited)
<TABLE>
<CAPTION>


                                                      Nine months     Three months     Nine months      Three months
                                                         ended           ended            ended            ended
                                                    Sept. 30, 1997   Sept. 30, 1997   Sept. 30, 1996   Sept. 30, 1996
                                                    --------------   --------------   --------------   --------------

<S>                                                 <C>                 <C>              <C>              <C>        
INTEREST INCOME                                        $    41,582      $    16,586      $    29,565      $    10,002

OPERATING EXPENSES:
     Management fees - general partner (Note 4)            382,354          119,029          394,988          131,663
     General and administrative (Note 4)                    56,771           24,639           37,544           13,779
     Legal and accounting (Note 4)                          96,058           21,434           92,305           23,953
     Interest (Notes 3 and 4)                              711,469          205,906          774,551          252,781
                                                       -----------      -----------      -----------      -----------

             Total operating expenses                    1,246,652          371,008        1,299,388          422,176
                                                       -----------      -----------      -----------      -----------

LOSS FROM OPERATIONS                                    (1,205,070)        (354,422)      (1,269,823)        (412,174)

DISTRIBUTIONS FROM LIMITED
     PARTNERSHIPS RECOGNIZED
     AS INCOME                                             439,020               --          164,647           19,246

EQUITY IN INCOME OF LIMITED
     PARTNERSHIPS AND AMORTIZATION
     OF ACQUISITION COSTS (Note 2)                         109,134           36,378          114,000           38,000
                                                       -----------      -----------      -----------      -----------

NET LOSS BEFORE EXTRAORDINARY GAIN                     $  (656,916)     $  (318,044)     $  (991,176)     $  (354,928)
                                                       ===========      ===========      ===========      ===========

NET LOSS PER LIMITED PARTNERSHIP INTEREST
     BEFORE EXTRAORDINARY GAIN                         $       (53)     $       (26)     $       (80)     $       (29)
                                                       ===========      ===========      ===========      ===========

EXTRAORDINARY GAIN -
    DEBT FORGIVENESS (NOTE 3)                            2,149,096               --               --               --
                                                       -----------      -----------      -----------      -----------

NET INCOME (LOSS)                                      $ 1,492,180      $  (318,044)     $  (991,176)     $  (354,928)
                                                       ===========      ===========      ===========      ===========

NET INCOME (LOSS) PER LIMITED PARTNERSHIP
     INTEREST                                          $       121      $       (26)     $       (80)     $       (29)
                                                       ===========      ===========      ===========      ===========
</TABLE>



   The accompanying notes are an integral part of these financial statements.



                                       2

<PAGE>   5
                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                        STATEMENT OF PARTNERS' DEFICIENCY

                      NINE MONTHS ENDED SEPTEMBER 30, 1997

                                   (Unaudited)
<TABLE>
<CAPTION>



                                          General          Limited
                                          Partners        Partners           Total
                                        -----------      ------------     -----------

<S>                                    <C>               <C>              <C>  
PARTNERSHIP INTERESTS
     September 30, 1997                                       12,368
                                                         ===========

DEFICIENCY, January 1, 1997             $  (320,913)     $(6,695,804)     $(7,016,717)

     Net income for the nine months
     ended September 30, 1997                14,922        1,477,258        1,492,180
                                        -----------      -----------      -----------

DEFICIENCY, September 30, 1997          $  (305,991)     $(5,218,546)     $(5,524,537)
                                        ===========      ===========      ===========
</TABLE>




   The accompanying notes are an integral part of these financial statements.


                                       3

<PAGE>   6
                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                            STATEMENTS OF CASH FLOWS

                  NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996

                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                          1997             1996
                                                                      -----------      -----------

<S>                                                                   <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net income (loss)                                                    $ 1,492,180      $  (991,176)
 Adjustments to reconcile net income (loss) to net cash (used in)
  provided by operating activities:
   Equity in income of limited partnerships
    and amortization of acquisition costs                                (109,134)        (114,000)
   Decrease in notes payable                                           (1,500,000)              --
   Decrease in accrued interest payable                                (1,078,700)         694,230
   Increase in accrued fees and expenses due general partners             232,357          244,986
   Increase in other assets                                               (64,299)
   Decrease in accounts payable                                           (10,679)         (10,952)
                                                                      -----------      -----------

     Net cash provided by (used in) operating activities               (1,038,275)        (176,912)
                                                                      -----------      -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Distributions from limited partnerships
   recognized as a return of capital                                    1,287,681          172,140
                                                                      -----------      -----------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                      249,406           (4,772)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                            948,476          595,330
                                                                      -----------      -----------

CASH AND CASH EQUIVALENTS, END OF PERIOD                              $ 1,197,882      $   590,558
                                                                      ===========      ===========

NON-CASH INVESTING AND  FINANCING ACTIVITIES:

  Repayment of debt by lower-tier partnership
    and forgiveness of debt.                                            3,150,696               --
                                                                      ===========      ===========
</TABLE>



   The accompanying notes are an integral part of these financial statements.

                                       4

<PAGE>   7

                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                          NOTES TO FINANCIAL STATEMENTS

                               SEPTEMBER 30, 1997


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

        GENERAL

        The information contained in the following notes to the financial
        statements is condensed from that which would appear in the annual
        audited financial statements; accordingly, the financial statements
        included herein should be reviewed in conjunction with the financial
        statements and related notes thereto contained in the Housing Programs
        Limited (the "Partnership") annual report for the year ended December
        31, 1996. National Partnership Investments Corp. ("NAPICO") is a general
        partner for the Partnership. Accounting measurements at interim dates
        inherently involve greater reliance on estimates than at year end. The
        results of operations for the interim period presented are not
        necessarily indicative of the results for the entire year.

        In the opinion of NAPICO, the accompanying unaudited financial
        statements contain all adjustments (consisting primarily of normal
        recurring accruals) necessary to present fairly the financial position
        of the Partnership at September 30, 1997 and the results of operations
        for the nine and three months then ended and changes in cash flows for
        the nine months then ended.

        ORGANIZATION

        The Partnership is a limited partnership which was formed under the laws
        of the State of California on May 15, 1984. On September 12, 1984, the
        Partnership offered 3,000 units consisting of 6,000 limited partnership
        interests and warrants to purchase a maximum of 6,000 additional limited
        partnership interests through a public offering .

        The general partners of the Partnership are NAPICO, Housing Programs
        Corporation II and Coast Housing Investment Associates ("CHIA"). LB I
        Group Inc. owns 100 percent of the stock of Housing Programs Corporation
        II. Casden Investment Corp. owns 100 percent of NAPICO's stock. CHIA is
        a limited partnership formed under the California Limited Partnership
        Act and consists of Messrs. Nicholas G. Ciriello, general partner and
        Charles H. Boxenbaum, limited partner. Mr. Boxenbaum is currently the
        chief executive officer of NAPICO. The business of the Partnership is
        conducted primarily by its general partners as the Partnership has no
        employees of its own.

        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 reported amounts of revenues and expenses
        during the reporting period. Actual results could differ from those
        estimates.


                                       5
<PAGE>   8



                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                               SEPTEMBER 30, 1997


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

        METHOD OF ACCOUNTING FOR INVESTMENT IN LIMITED PARTNERSHIPS

        The investments in local limited partnerships are accounted for on the
        equity method. Acquisition, selection fees and other costs related to
        the acquisition of the projects have been capitalized to the investment
        accounts.

        NET INCOME (LOSS) PER LIMITED PARTNERSHIP INTEREST

        Net income (loss) per limited partnership interest was computed by
        dividing the limited partners' share of net income (loss) by the number
        of limited partnership interests outstanding during the year. The number
        of limited partnership interests was 12,368 for all years presented.

        CASH AND CASH EQUIVALENTS

        Cash and cash equivalents consist of cash and bank certificates of
        deposit with an original maturity of three months or less.

        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.

        IMPAIRMENT OF LONG-LIVED ASSETS

        The Partnership adopted Statement of Financial Accounting Standards No.
        121, Account for the Improvement of Long-Lived Assets and for Long-Lived
        Assets To Be Disposed Of as of January 1, 1996 without a significant
        effect on its financial statements. The Partnership reviews long-lived
        assets to determine if there has been any permanent impairment whenever
        events or changes in circumstances indicate that the carrying amount of
        the asset may not be recoverable. If the sum of the expected future cash
        flows is less than the carrying amount of the assets, the Partnership
        recognizes an impairment loss.

NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS

        The Partnership holds indirect interests in 17 properties, as the sole
        limited partner in various limited partnerships. The 17 lower-tier
        limited partnerships own residential rental projects consisting of a
        total of 2,542 apartment units. The mortgage loans encumbering these
        projects are insured by various governmental agencies.


                                       6
<PAGE>   9


                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                               SEPTEMBER 30, 1997


NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS (CONTINUED)

        The Partnership, as a limited partner, is entitled to 99 percent of the
        income and losses of the lower-tier limited partnerships.

        The Partnership's allocated portion of equity in losses from the
        lower-tier limited partnerships is recognized in the financial
        statements of the Partnership until the Partnership's investment account
        in the applicable lower-tier limited partnership is reduced to a zero
        balance. Losses incurred after the investment account is reduced to zero
        are not recognized.

        Distributions from the limited partnerships are treated as a reduction
        of capital until the Partnership's investment account balance in the
        applicable lower-tier limited partnership has been reduced to the lesser
        of zero or a negative amount equal to future capital contributions
        required to be made by the Partnership to the applicable lower-tier
        limited partnership. Subsequent distributions are treated as income.

        The following is a summary of the Partnership's investment in lower-tier
        limited partnerships for the nine months ended September 30, 1997:
<TABLE>
<CAPTION>

<S>                                                      <C>                       
        Balance, beginning of period                     $ 14,364,056              
        Amortization of acquisition costs                     (28,866)
        Equity in income of limited partnerships              138,000
        Distribution recognized as return of capital       (1,287,681)
                                                         ------------          
        Balance, end of period                           $ 13,185,509
                                                         ============
</TABLE>


        The following are unaudited combined estimated statements of operations
        for the nine and three months ended September 30, 1997 and 1996 for the
        limited partnerships in which the Partnership has investments:
<TABLE>
<CAPTION>


                            Nine months      Three months       Nine months      Three months
                               ended             ended             ended             ended
                          Sept. 30, 1997    Sept. 30, 1997    Sept. 30, 1996    Sept. 30, 1996
                          --------------    --------------    --------------    --------------
<S>                      <C>               <C>               <C>               <C>   
INCOME
   Rental and Other       $   13,452,000    $    4,484,000    $   12,849,000    $    4,283,000

EXPENSES
   Depreciation                2,649,000           883,000         2,643,000           881,000
   Interest                    2,730,000           910,000         2,781,000           927,000
   Operating                   8,946,000         2,982,000         8,469,000         2,823,000
                          --------------    --------------    --------------    --------------

       Total expenses         14,325,000         4,775,000        13,893,000         4,631,000
                          --------------    --------------    --------------    --------------

NET LOSS                  $     (873,000)   $     (291,000)   $   (1,044,000)   $     (348,000)
                          ==============    ==============    ==============    ==============
</TABLE>



                                       7
<PAGE>   10


                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                               SEPTEMBER 30, 1997

NOTE 3 - NOTES PAYABLE

         Certain of the Partnership's investments involved purchases of
         partnership interests from partners who subsequently withdrew from the
         operating partnership. The Partnership is obligated for various
         non-recourse notes payable in the aggregate amount of $8,669,743,
         bearing interest at 9.5 percent per annum to the various sellers of the
         partnership interests. The notes have principal maturity dates ranging
         from December 31, 1999 to December 2001 or upon sale or refinancing of
         the underlying partnership properties. These obligations and the
         related interest are collateralized by the Partnership's investment in
         the investee limited partnerships and are payable only out of cash
         distributions from the investee partnerships, as defined in the notes.
         Unpaid interest is due at maturity of the notes.

         During the nine months ended September 30, 1997, the lower-tier
         partnership that owns Deep Lake Hermitage Apartments consummated the
         sale of the apartment complex for $4,800,000. There were two notes
         payable by the Partnership to sellers of interests in the lower-tier
         partnership that owns the Deep Lake Hermitage property in the original
         aggregate principal amount of $1,500,000, which were secured by the
         Partnership's interest in the local limited partnership. The notes were
         payable in full on October 31, 1996, but were extended to allow
         sufficient time to sell the property. The notes in the principal amount
         of $1,500,000 had accrued interest of $1,650,696, for a total amount
         due of $3,150,696. The Partnership entered into an agreement with the
         note holders, who accepted a reduced payment of $1,000,000 in full
         satisfaction of all obligations, in order to enable the sale of
         property. This was paid by the lower tier partnership from proceeds of
         the sale. In addition, the apartment complex had a first mortgage note
         of approximately $3,500,000 which was paid off from proceeds of the
         sale. The Partnership recognized an extraordinary gain of $2,149,096
         from the forgiveness of the debt.

NOTE 4 - FEES AND EXPENSES DUE TO GENERAL PARTNERS

         Under the terms of the Partnership's Restated Certificate and Agreement
         of Limited Partnership, the Partnership is obligated to the general
         partners for an annual management fee equal to 0.5 percent of the
         invested assets of the limited partnerships. Invested assets is defined
         as the costs of acquiring project interests including the proportionate
         amount of the mortgage loans related to the Partnership's interests in
         the capital accounts of the respective limited partnerships. For the
         nine months ended September 30, 1997 and 1996, the amount accrued was
         $382,354 and $394,988, respectively.

         The Partnership also reimburses NAPICO for certain expenses. The
         reimbursement to NAPICO was $0, and $9,948 for the nine months ended
         September 30, 1997 and 1996, respectively, and is included in operating
         expenses.

                                       8

<PAGE>   11


                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                               SEPTEMBER 30, 1997


NOTE 4 - FEES AND EXPENSES DUE TO GENERAL PARTNERS (CONTINUED)

         As of September 30, 1997, the fees and expenses due the general
         partners exceeded the Partnership's cash and cash equivalents and short
         term investments. The general partners, during the forthcoming year,
         will not demand payment of amounts due in excess of such cash or such
         that the Partnership would not have sufficient operating cash; however,
         the Partnership will remain liable for all such amounts.

         An affiliate of NAPICO is the general partner in ten of the limited
         partnerships, and another affiliate receives property management fees
         of approximately 5 to 6 percent of revenues from five of the ten
         partnerships. For the nine months ended September 30, 1997 and 1996,
         approximately $167,182 and $179,400, respectively, was paid to the
         NAPICO affiliate for property management fees.

         Pursuant to a Memorandum of Understanding entered into on August 11,
         1995, the Partnership paid interest of $16,207 on May 1, 1996 to an
         affiliate of NAPICO, that served as the management company for
         properties owned by the Partnership. The interest relates to funds
         advanced to the Partnership by the master disbursement account
         maintained by the management company. In addition, the Partnership on
         May 1, 1996 reimbursed Housing Programs Corporation II $15,000 for
         professional fees, which were paid on behalf of the Partnership in
         connection with issues raised in the Memorandum of Understanding.

NOTE 5 - CONTINGENCIES

         NAPICO is a plaintiff in various lawsuits and has also been named as
         defendant in other lawsuits arising from transactions in the ordinary
         course of business. In the opinion of NAPICO, the claims will not
         result in any material liability to the Partnership.

NOTE 6 - FAIR VALUE OF FINANCIAL INSTRUMENTS

         Statement of Financial Accounting Standards No. 107, "Disclosure about
         Fair Value of Financial Instruments," requires disclosure of fair value
         information about financial instruments, when it is practicable to
         estimate that value. The notes payable are collateralized by the
         Partnership's investments in investee limited partnerships and are
         payable only out of cash distributions from the investee partnerships.
         The cash flow generated by operations of the investee limited
         partnerships, which account for the Partnership's primary source of
         revenues, are subject to various government rules, regulations and
         restrictions which make it impracticable to estimate the fair value of
         the notes payable and related accrued interest. The carrying amount of
         other assets and liabilities reported on the balance sheets that
         require such disclosure approximates fair value due to their short-term
         maturity.


                                       9


<PAGE>   12



                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                               SEPTEMBER 30, 1997



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

         LIQUIDITY AND CAPITAL RESOURCES

         The Partnership's primary sources of funds include interest income
         earned from investing available cash and distributions from limited
         partnerships in which the Partnership has invested. It is not expected
         that any of the local limited partnerships in which the Partnership has
         invested will generate cash flow sufficient to provide for
         distributions to limited partners in any material amount.

         RESULTS OF OPERATIONS

         Partnership revenues consist primarily of interest income earned on
         certificates of deposit and other temporary investment of funds. The
         Partnership may also receive distributions from the lower-tier limited
         partnerships in which it has invested.

         Operating expenses of the Partnership consist of recurring general and
         administrative expenses, professional fees for services rendered to the
         Partnership and accrued interest on the notes payable. In addition, an
         annual Partnership management fee in an amount equal to .5 percent of
         invested assets is payable to the general partners.

         The Partnership accounts for its investments in the local limited
         partnerships on the equity method, thereby adjusting its investment
         balance by its proportionate share of the income or loss of the local
         limited partnerships. Losses incurred after the limited partnership
         investment account is reduced to zero are not recognized.

         Distributions received from limited partnerships are recognized as
         return of capital until the investment balance has been reduced to zero
         or to a negative amount equal to future capital contributions required.
         Subsequent distributions received are recognized as income.

         Except for certificates of deposit and money market funds, the
         Partnership's investments consist entirely of interests in other
         limited partnerships owning government assisted housing projects.
         Available cash is invested to provide interest income as reflected in
         the statements of operations. These funds can be converted to cash to
         meet obligations as they arise. The Partnership intends to continue
         investing available funds in this manner.

         During the nine months ended September 30, 1997, the lower-tier
         partnership that owns Deep Lake Hermitage Apartments consummated the
         sale of the apartment complex for $4,800,000. There were two notes
         payable by the Partnership to sellers of interests in the lower-tier
         partnership that owns the Deep Lake Hermitage property in the original
         aggregate principal amount of $1,500,000, which were secured by the
         Partnership's interest in the local limited partnership. The notes were
         payable in full on October



                                       10
<PAGE>   13

                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                               SEPTEMBER 30, 1997


ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND 
            RESULTS OF OPERATIONS (CONTINUED)

         RESULTS OF OPERATION (CONTINUED)

         31, 1996, but were extended to allow sufficient time to sell the
         property. The notes in the principal amount of $1,500,000 had accrued
         interest of $1,650,696, for a total amount due of $3,150,696. The
         Partnership entered into an agreement with the note holders, who
         accepted a reduced payment of $1,000,000 in full satisfaction of all
         obligations, in order to enable the sale of property. This was paid by
         the lower tier partnership from proceeds of the sale.

         In addition, the apartment complex had a first mortgage note of
         approximately $3,500,000 which was paid off from proceeds of the sale.
         The Partnership recognized an extraordinary gain of $2,149,096 from the
         forgiveness of the debt.

         Partnership entered into an agreement with the note holders, who
         accepted a reduced payment of $1,000,000 in full satisfaction of all
         obligations, in order to enable the sale of property. This was paid by
         the lower tier partnership from proceeds of the sale. In addition, the
         apartment complex had a first mortgage note of approximately $3,500,000
         which was paid off from proceeds of the sale. The Partnership
         recognized an extraordinary gain of $2,149,096 from the forgiveness of
         the debt.



                                       11
<PAGE>   14


                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                               SEPTEMBER 30, 1997


PART II.   OTHER INFORMATION

ITEM 1.    LEGAL PROCEEDINGS

As of September 30, 1997, NAPICO was a plaintiff or defendant in several
lawsuits. None of these suits are related to the Partnership. In the opinion of
NAPICO, the claims will not result in any material liability to the Partnership.


ITEM 6.    EXHIBITS AND REPORTS ON FORM 8-K

           (a) No reports on Form 8-K were filed during the quarter ended
               September 30, 1997.


                                       12

<PAGE>   15


                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                               SEPTEMBER 30, 1997


                                   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.


                            HOUSING PROGRAMS LIMITED 
                            (a California limited partnership)



                            By: National Partnership Investments Corp. 
                                General Partner




                                ------------------------------------------------
                                Bruce Nelson 
                                President



                            Date:
                                 -----------------------------------------------




                                ------------------------------------------------
                                Charles H. Boxenbaum 
                                Chief Executive Officer



                            Date:
                                 -----------------------------------------------


                                       13