<PAGE>
                       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, 2001

                         Commission File Number 0-13808

                            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>


                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                               INDEX TO FORM 10-Q

                    FOR THE QUARTER ENDED SEPTEMBER 30, 2001

<TABLE>
<CAPTION>
<S>    <C>                                                                      <C>
PART I. FINANCIAL INFORMATION

       Item 1.  Financial Statements

             Balance Sheets, September 30, 2001 and December 31, 2000 ........   1

             Statements of Operations,
                   Nine and Three Months Ended September 30, 2001 and 2000....   2

             Statement of Partners' Deficiency,
                   Nine Months Ended September 30, 2001 ......................   3

             Statements of Cash Flow,
                   Nine Months Ended September 30, 2001 and 2000..............   4

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

       Item 2.  Management's Discussion and Analysis of Financial
                    Condition and Results of Operation........................  13


PART II.  OTHER INFORMATION

       Item 1.  Legal Proceedings.............................................  17

       Item 6.  Exhibits and Reports on Form 8-K..............................  17

       Signatures.............................................................  18
</TABLE>
<PAGE>

                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                                 BALANCE SHEETS

                    SEPTEMBER 30, 2001 AND DECEMBER 31, 2000

                                     ASSETS

<TABLE>
<CAPTION>
                                                        2001
                                                     (Unaudited)           2000
                                                   --------------    --------------
<S>                                                <C>               <C>
   INVESTMENTS IN LIMITED PARTNERSHIPS  (Note 2)   $           --    $           --

   CASH AND CASH EQUIVALENTS                               42,153           372,546

   DUE FROM ESCROW                                             --            15,000
                                                   --------------    --------------

             TOTAL ASSETS                          $       42,153    $      387,546
                                                   ==============    ==============

                      LIABILITIES AND PARTNERS' DEFICIENCY

   LIABILITIES:

        Notes payable (Notes 3 and 6)              $    4,600,000    $    4,600,000
        Accrued fees and expenses due general
            partners (Note 4)                           1,016,602         1,097,089
        Accrued interest payable (Notes 3 and 6)        6,779,611         6,451,861
        Accounts payable                                   89,829            69,855
                                                   --------------    --------------

                                                       12,486,042        12,218,805
                                                   --------------    --------------


   COMMITMENTS AND CONTINGENCIES
       (Notes 4 and 5)

   PARTNERS' DEFICIENCY:
        General partners                                 (375,186)         (369,060)
        Limited partners                              (12,068,703)      (11,462,199)
                                                   --------------    --------------

                                                      (12,443,889)      (11,831,259)
                                                   --------------    --------------
              TOTAL LIABILITIES AND PARTNERS'
                   DEFICIENCY                      $       42,153    $      387,546
                                                   ==============    ==============
</TABLE>


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


                                       1
<PAGE>

                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                            STATEMENTS OF OPERATIONS
             NINE AND THREE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                   Nine months       Three months      Nine months       Three months
                                                       ended             ended             ended            ended
                                                   Sept 30, 2001     Sept 30, 2001     Sept 30, 2000     Sept 30, 2000
                                                  --------------    --------------    --------------    --------------
<S>                                               <C>               <C>               <C>               <C>
INTEREST INCOME                                   $        7,315    $        1,288    $          150    $           --
                                                  --------------    --------------    --------------    --------------

OPERATING EXPENSES:
     Management fees - general partner (Note 4)          150,396            49,797           195,295            64,739
     General and administrative (Note 4)                  57,216            27,758            54,967            22,068
     Legal and accounting                                 64,195            18,906            72,724             2,700
     Interest (Notes 3)                                  327,750           109,250           327,750           109,250
                                                  --------------    --------------    --------------    --------------

       Total operating expenses                          599,557           205,711           650,736           198,757
                                                  --------------    --------------    --------------    --------------

LOSS FROM OPERATIONS                                    (592,242)         (204,423)         (650,586)         (198,757)

EQUITY IN LOSS OF LIMITED
    PARTNERSHIPS (Note 2)                                (96,589)               --                --                --

GAIN ON SALE OF LIMITED
     PARTNERSHIP INTEREST (Note 2)                        65,000                --           323,759                --

DISTRIBUTIONS FROM LIMITED
     PARTNERSHIPS RECOGNIZED
     AS INCOME (Note 2)                                   11,201                --           146,765            44,158
                                                  --------------    --------------    --------------    --------------


NET LOSS                                          $     (612,630)   $     (204,423)   $     (180,062)   $     (154,599)
                                                  ==============    ==============    ==============    ==============

NET LOSS PER LIMITED PARTNERSHIP
       INTEREST                                   $          (49)   $          (16)   $          (15)   $          (12)
                                                  ==============    ==============    ==============    ==============
</TABLE>


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


                                       2
<PAGE>

                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                        STATEMENT OF PARTNERS' DEFICIENCY
                      NINE MONTHS ENDED SEPTEMBER 30, 2001
                                   (Unaudited)



<TABLE>
<CAPTION>
                                      General         Limited
                                      Partners        Partners         Total
                                    ------------    ------------    ------------
<S>                                 <C>             <C>             <C>
PARTNERSHIP INTERESTS                                     12,368
                                                    ============


DEFICIENCY, January 1, 2001         $   (369,060)   $(11,462,199)   $(11,831,259)

     Net loss for the nine months
         ended September 30, 2001         (6,126)       (606,504)       (612,630)
                                    ------------    ------------    ------------

DEFICIENCY, September 30, 2001      $   (375,186)   $(12,068,703)   $(12,443,889)
                                    ============    ============    ============
</TABLE>





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


                                       3
<PAGE>

                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                            STATEMENTS OF CASH FLOWS
                  NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                          2001            2000
                                                                      ------------    ------------
<S>                                                                   <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:

    Net loss                                                          $   (612,630)   $   (180,062)
    Adjustments to reconcile net loss to net cash used in
       operating activities:
           Gain on sale of partnership interests                           (65,000)       (323,759)
           Equity in loss of Limited Partnership                            96,589              --
           Decrease in due from escrow                                      15,000              --
           Increase in accrued interest payable                            327,750         327,750
           Decrease in accrued fees and expenses
                   due general partners                                    (80,487)        (97,705)
           Increase in accounts payable                                     19,974          (1,175)
                                                                      ------------    ------------

                 Net cash used in operating activities                    (298,804)       (274,951)
                                                                      ------------    ------------

CASH FLOWS FROM INVESTING ACTIVITIES:

       Proceeds from sales of partnership interests                         65,000         323,759
       Advance to limited partnerships                                     (96,589)             --
                                                                      ------------    ------------

                Net cash (used in) provided by investing activities        (31,589)        323,759
                                                                      ------------    ------------

NET (DECREASE) INCREASE IN CASH AND
    CASH EQUIVALENTS                                                      (330,393)         48,808
                                                                      ------------    ------------

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                             372,546         817,796
                                                                      ------------    ------------

CASH AND CASH EQUIVALENTS, END OF PERIOD                              $     42,153    $    866,604
                                                                      ============    ============
</TABLE>


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



                                       4
<PAGE>


                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                          NOTES TO FINANCIAL STATEMENTS

                               SEPTEMBER 30, 2001

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, 2000. National Partnership Investments Corp. (NAPICO) is the
        managing general partner of 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, 2001 and the results of operations
        and changes in cash flows for the nine and three months then ended.

        ORGANIZATION

        Housing Programs Limited (the "Partnership"), formed under the
        California Uniform Limited Partnership Act, was organized on May 15,
        1984. The Partnership was formed to invest primarily in other limited
        partnerships which own or lease and operate federal, state or local
        government-assisted housing projects. The general partners of the
        Partnership are NAPICO, Coast Housing Investment Associates, a limited
        partnership, and Housing Programs Corporation II.

        The general partners have a 1 percent interest in profits and losses of
        the Partnership. The limited partners have the remaining 99 percent
        interest which is allocated in proportion to their respective individual
        investments. Casden Properties Inc. owns a 95.25% economic interest in
        NAPICO, with the balance owned by Casden Investment Corporation ("CIC").
        CIC, which is wholly owned by Alan I. Casden, owns 95% of the voting
        common stock of NAPICO.


                                       5
<PAGE>

                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                               SEPTEMBER 30, 2001


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

        On December 30, 1998, the Partnership sold its limited partnership
        interests in 7 local limited partnerships for net proceeds of $202,714
        to subsidiaries of Casden Properties Inc.

        BASIS OF PRESENTATION

        The accompanying financial statements have been prepared in conformity
        with accounting principles generally accepted in the United States of
        America.

        RECENT ACCOUNTING PRONOUNCEMENTS

        In July 2001, the Financial Accounting Standards Board issued SFAS No.
        141, "Business Combinations" and SFAS No. 142, "Goodwill and Other
        Intangible Assets." SFAS No. 141 was effective immediately and SFAS 142
        will be effective January 2002. The new standards are not expected to
        have a significant impact on the Partnership's financial statements.

        USE OF ESTIMATES

        The preparation of financial statements in conformity with accounting
        principles generally accepted in the United States of America 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.

        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
        account and amortized on a straight line basis over the estimated lives
        of the underlying assets, which is generally 30 years.


                                       6
<PAGE>

                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                               SEPTEMBER 30, 2001


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

        NET LOSS PER LIMITED PARTNERSHIP INTEREST

        Net loss per limited partnership interest was computed by dividing the
        limited partners' share of net loss by the number of limited partnership
        interests outstanding during the period. The number of limited
        partnership interests was 12,368 for all periods 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. The
        Partnership has its cash and cash equivalents on deposit with high
        credit quality financial institutions. Such cash and cash equivalents
        are in excess of the FDIC insurance limit.

        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 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

        As of September 30, 2001, the Partnership holds limited partnership
        interests in 10 limited partnerships, located in 5 different states. As
        of September 30, 2001, the limited partnerships own residential low
        income rental projects consisting of 1,685 apartment units. The mortgage
        loans of these projects are payable to or insured by various
        governmental agencies.

        The Partnership, as a limited partner, is entitled to 99 percent of the
        profits and losses of the limited partnerships.


                                       7
<PAGE>

                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                               SEPTEMBER 30, 2001


NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS (CONTINUED)

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

        The Partnership has no carrying value in investments in limited
        partnerships as of September 30, 2001.

        The following are unaudited combined estimated statements of operations
        for the nine and three months ended September 30, 2001 and 2000 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, 2001    Sept. 30, 2001    Sept. 30, 2000    Sept. 30, 2000
                        --------------    --------------    --------------    --------------
<S>                     <C>               <C>               <C>               <C>
INCOME

   Rental and Other     $    5,676,000    $    1,892,000    $    7,741,000    $    2,580,000
                        --------------    --------------    --------------    --------------

EXPENSES

   Depreciation              1,086,000           362,000         1,550,000           517,000
   Interest                    726,000           242,000         1,313,000           438,000
   Operating                 4,017,000         1,339,000         5,632,000         1,878,000
                        --------------    --------------    --------------    --------------

       Total expenses        5,829,000         1,943,000         8,495,000         2,833,000
                        --------------    --------------    --------------    --------------

            Net loss    $     (153,000)   $      (51,000)   $     (754,000)   $     (253,000)
                        ==============    ==============    ==============    ==============
</TABLE>

Under recently adopted law and policy, the United States Department of Housing
and Urban Development ("HUD") has determined not to renew the Housing Assistance
Payment ("HAP") Contracts on a long term basis on the existing terms. In
connection with renewals of the HAP Contracts under such new law and policy, the
amount of rental assistance payments under renewed HAP Contracts will be based
on market rentals instead of above market rentals, which may be the case under
existing HAP Contracts. The payments under the renewed HAP


                                       8
<PAGE>

                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                               SEPTEMBER 30, 2001


NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS (CONTINUED)

        Contracts may not be in an amount that would provide sufficient cash
        flow to permit owners of properties subject to HAP Contracts to meet the
        debt service requirements of existing loans insured by the Federal
        Housing Administration of HUD ("FHA") unless such mortgage loans are
        restructured. In order to address the reduction in payments under HAP
        Contracts as a result of this new policy, the Multi-family Assisted
        Housing Reform and Affordability Act of 1997 ("MAHRAA"), which was
        adopted in October 1997, provides for the restructuring of mortgage
        loans insured by the FHA with respect to properties subject to the
        Section 8 program. Under MAHRAA, an FHA-insured mortgage loan can be
        restructured into a first mortgage loan which will be amortized on a
        current basis and a low interest second mortgage loan payable to FHA
        which will only be payable on maturity of the first mortgage loan. This
        restructuring results in a reduction in annual debt service payable by
        the owner of the FHA-insured mortgage loan and is expected to result in
        an insurance payment from FHA to the holder of the FHA-insured loan due
        to the reduction in the principal amount. MAHRAA also phases out
        project-based subsidies on selected properties serving families not
        located in rental markets with limited supply, converting such subsidies
        to a tenant-based subsidy.

        When the HAP Contracts are subject to renewal, there can be no assurance
        that the local limited partnerships in which the Partnership has an
        investment will be permitted to restructure its mortgage indebtedness
        under MAHRAA. In addition, the economic impact on the Partnership of the
        combination of the reduced payments under the HAP Contracts and the
        restructuring of the existing FHA-insured mortgage loans under MAHRAA is
        uncertain.

        During the nine months ended September 30, 2001, the Partnership
        surrendered its interests in one limited partnership for a net payment
        of $65,000. The Partnership recognized a gain of $65,000 from the sale
        because it had no investment balance related to this partnership.

        In September 2001, a foreclosure action was filed by the holder of a
        note payable against one of the local partnerships into which the
        Partnership invested, NAPICO, and certain of its affiliates. The note
        payable is in the amount of $845,000 and was issued in connection with
        the acquisition of Cloverleaf Apartments (a 94-unit complex located in
        Indianapolis, Indiana) by the local partnership. The parties are
        involved in settlement discussions. The Partnership has no investment
        balance related to this limited partnership.


                                       9
<PAGE>

                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                               SEPTEMBER 30, 2001


NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS (CONTINUED)

        On December 30, 1998, the Partnership sold its limited partnership
        interests in 7 local limited partnerships to the Operating Partnership.
        The sale resulted in cash proceeds to the Partnership of $202,714 which
        was collected in 1999. In March 1999, the Partnership made cash
        distributions of $695,687 to the limited partners and $7,027 to the
        general partners, which included using proceeds from the sale of the
        partnership interests.

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 non-recourse
        notes payable of $4,600,000 to the sellers of the partnership interests,
        bearing interest at 9.5 percent per annum to the various sellers of the
        partnership interests. 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. The notes matured in
        December 1999, at which time all unpaid interest became due.

        Notes payable and related accrued interest payable aggregating
        $11,379,611 as of September 30, 2001 matured on December 31, 1999. Due
        to the Partnership's lack of cash and partners' deficiency, there is
        substantial doubt about its ability to satisfy these obligations, which
        would result in the possible foreclosure of the investments in the local
        limited partnerships. As a result, there is substantial doubt about the
        Partnerships' ability to continue as a going concern.

        Management is in process of attempting to negotiate extensions of the
        maturity dates on the notes payable.

NOTE 4 - FEES AND EXPENSES DUE TO GENERAL PARTNERS

        Under the terms of the Restated Certificate and Agreement of the Limited
        Partnership, the Partnership is obligated to the general partners for an
        annual management fee equal to 0.5 percent of the original 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.


                                       10
<PAGE>

                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                               SEPTEMBER 30, 2001


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

        The Partnership reimburses NAPICO for certain expenses. The expenses
        incurred to NAPICO was approximately $15,710 and $14,580 for the period
        ended September 30, 2001 and September 30, 2000, respectively.

        As of September 30, 2001, the fees and expenses of $1,016,602 due the
        general partners exceeded the Partnership's cash. 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.

NOTE 5 - CONTINGENCIES

        On August 27, 1998, two investors holding an aggregate of eight units of
        limited partnership interests in Real Estate Associates Limited III (an
        affiliated partnership in which NAPICO is the managing general partner)
        and two investors holding an aggregate of five units of limited
        partnership interest in Real Estate Associates Limited VI (another
        affiliated partnership in which NAPICO is the managing general partner)
        commenced an action in the United States District Court for the Central
        District of California against the Partnership, NAPICO and certain other
        affiliated entities. The complaint alleges that the defendants breached
        their fiduciary duty to the limited partners of certain NAPICO managed
        partnerships and made materially false and misleading statements in the
        consent solicitation statements sent to the limited partners of such
        partnerships relating to approval of the transfer of partnership
        interests in limited partnerships, owning certain of the properties, to
        affiliates of Casden Properties Inc., organized by an affiliate of
        NAPICO. The plaintiffs seek equitable relief, as well as compensatory
        damages and litigation related costs. On August 4, 1999, one investor
        holding one unit of limited partnership interest in the Partnership
        commenced a virtually identical action in the United States District
        Court for the Central District of California against the Partnership,
        NAPICO and certain other affiliated entities. The second action has been
        subsumed in the first action, which has been certified as a class
        action. NAPICO, the managing general partner of such partnerships, and
        the other defendants believe that the plaintiffs' claims are without
        merit and are contesting the actions vigorously.


                                       11
<PAGE>

                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                               SEPTEMBER 30, 2001


NOTE 5 -- CONTINGENCIES (CONTINUED)

        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. The carrying amount of other
        assets and liabilities reported on the balance sheets that require such
        disclosure approximate fair value due to their short-term maturity.



                                       12
<PAGE>

                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                               SEPTEMBER 30, 2001


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 on
        money market accounts and certificates of deposit 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 the Partnership's limited partners in any material
        amount. The Partnership made a distribution to the investors in March
        1999, which included using proceeds from disposition of its investments
        in certain limited partnerships.

        RESULTS OF OPERATIONS

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

        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.

        A recurring partnership expense is the annual management fee. The fee is
        payable to the General Partners of the Partnership and is calculated at
        .5 percent of the Partnership's invested assets. The management fee is
        paid to the General Partners for their continuing management of
        partnership affairs. The fee is payable beginning with the month
        following the Partnership's initial investment in a local limited
        partnership. Management fees were $150,396 and $195,000 for the nine
        months ended September 30, 2001 and 2000, respectively.


                                       13
<PAGE>

                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                               SEPTEMBER 30, 2001


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

        RESULTS OF OPERATIONS (CONTINUED)

        The Partnership is obligated on non-recourse notes payable of $4,600,000
        at September 30, 2001 and December 31, 2000, which bear interest at 9.5
        percent per annum and matured on December 31, 1999. The notes and
        related interest are payable from cash flow generated from operations of
        the related rental properties as defined in the notes. These obligations
        are collateralized by the Partnership's investments in the limited
        partnerships. Unpaid interest was due at maturity of the notes.

        Operating expenses, other than management fees and interest expense,
        consist of legal and accounting fees for services rendered to the
        Partnership and administrative expenses, which were generally consistent
        for periods presented. Legal and accounting fees were $64,195 and
        $72,724 for the nine months ended September 30, 2001 and 2000,
        respectively. General and administrative expenses were $57,216 and
        $54,967 for the nine months ended September 30, 2001 and 2000,
        respectively.

        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.

        Under recently adopted law and policy, the United States Department of
        Housing and Urban Development ("HUD") has determined not to renew the
        Housing Assistance Payment ("HAP") Contracts on a long term basis on the
        existing terms. In connection with renewals of the HAP Contracts under
        such new law and policy, the amount of rental assistance payments under
        renewed HAP Contracts will be based on market rentals instead of above
        market rentals, which may be the case under existing HAP Contracts. The
        payments under the renewed HAP Contracts may not be in an amount that
        would provide sufficient cash flow to permit owners of properties
        subject to HAP Contracts to meet the debt service requirements of
        existing loans insured by the Federal Housing Administration of HUD
        ("FHA") unless such mortgage loans are restructured. In order to address
        the reduction in payments under HAP Contracts as a result of this new
        policy, the Multi-family Assisted Housing Reform and Affordability Act
        of 1997


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<PAGE>

                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                               SEPTEMBER 30, 2001


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

        RESULTS OF OPERATION (CONTINUED)

        ("MAHRAA"), which was adopted in October 1997, provides for the
        restructuring of mortgage loans insured by the FHA with respect to
        properties subject to the Section 8 program. Under MAHRAA, an
        FHA-insured mortgage loan can be restructured into a first mortgage loan
        which will be amortized on a current basis and a low interest second
        mortgage loan payable to FHA which will only be payable on maturity of
        the first mortgage loan. This restructuring results in a reduction in
        annual debt service payable by the owner of the FHA-insured mortgage
        loan and is expected to result in an insurance payment from FHA to the
        holder of the FHA-insured loan due to the reduction in the principal
        amount. MAHRAA also phases out project-based subsidies on selected
        properties serving families not located in rental markets with limited
        supply, converting such subsidies to a tenant-based subsidy.

        When the HAP Contracts are subject to renewal, there can be no assurance
        that the local limited partnerships in which the Partnership has an
        investment will be permitted to restructure its mortgage indebtedness
        under MAHRAA. In addition, the economic impact on the Partnership of the
        combination of the reduced payments under the HAP Contracts and the
        restructuring of the existing FHA-insured mortgage loans under MAHRAA is
        uncertain.

        During the six months ended September 30, 2001, the Partnership
        surrendered its interests in one limited partnership for a net payment
        of $65,000. The Partnership recognized a gain of $65,000 from the sale
        because it had no investment balance related to this partnership.

        On December 30, 1998, the Partnership sold its limited partnership
        interests in 7 local limited partnerships to the subsidiaries of Casden
        Properties Inc. The sale resulted in cash proceeds to the Partnership of
        $202,714, which was collected in 1999. In March 1999, the Partnership
        made cash distributions of $695,687 to the limited partners and $7,027
        to the general partners, primarily using proceeds from the sale of the
        partnership interests.

        Notes payable and related accrued interest payable aggregating
        $11,379,611 as of September 30, 2001 matured on December 31, 1999. Due
        to the Partnership's lack of cash and partners' deficiency, there is
        substantial doubt about its ability to satisfy these obligations, which
        would


                                       15
<PAGE>

                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                               SEPTEMBER 30, 2001


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

        RESULTS OF OPERATION (CONTINUED)

        result in the possible foreclosure of the investments in the local
        limited partnerships. As a result, there is substantial doubt about the
        Partnerships' ability to continue as a going concern.

        Management is in process of attempting to negotiate extensions of the
        maturity dates on the notes payable.



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<PAGE>

                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                               SEPTEMBER 30, 2001

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

On August 27, 1998, two investors holding an aggregate of eight units of limited
partnership interests in Real Estate Associates Limited III (an affiliated
partnership in which NAPICO is the managing general partner) and two investors
holding an aggregate of five units of limited partnership interest in Real
Estate Associates Limited VI (another affiliated partnership in which NAPICO is
the managing general partner) commenced an action in the United States District
Court for the Central District of California against the Partnership, NAPICO and
certain other affiliated entities. The complaint alleges that the defendants
breached their fiduciary duty to the limited partners of certain NAPICO managed
partnerships and made materially false and misleading statements in the consent
solicitation statements sent to the limited partners of such partnerships
relating to approval of the transfer of partnership interests in limited
partnerships, owning certain of the properties, to affiliates of Casden
Properties Inc., organized by an affiliate of NAPICO. The plaintiffs seek
equitable relief, as well as compensatory damages and litigation related costs.
On August 4, 1999, one investor holding one unit of limited partnership interest
in the Partnership commenced a virtually identical action in the United States
District Court for the Central District of California against the Partnership,
NAPICO and certain other affiliated entities. The second action has been
subsumed in the first action, which has been certified as a class action.
NAPICO, the managing general partner of such partnerships, and the other
defendants believe that the plaintiffs' claims are without merit and are
contesting the actions vigorously.

As of September 30, 2001, 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 exhibits are required per the provision of Item 6 of regulation
            S-K and no reports on Form 8-K were filed during the quarter ended
            September 30, 2001.


                                       17
<PAGE>

                            HOUSING PROGRAMS LIMITED
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                               SEPTEMBER 30, 2001


                                   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


                                          /s/ Bruce Nelson
                                          --------------------------------------
                                          Bruce Nelson
                                          President


                                   Date:  November 13,2001
                                          --------------------------------------


                                          /s/ Brian H. Shuman
                                          --------------------------------------
                                          Brian H. Shuman
                                          Chief Financial Officer

                                   Date:  November 13,2001
                                          --------------------------------------


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