FORM 10-K

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

     [X]  ANNUAL  REPORT  PURSUANT  TO  SECTION  13 OR 15(d)  OF THE  SECURITIES
          EXCHANGE ACT OF 1934

For the fiscal year ended  December 31, 2000

                                       OR

     [ ]  TRANSITION  REPORT  PURSUANT TO SECTION 13 OR 15(d) OF THE  SECURITIES
          EXCHANGE ACT OF 1934

For the transition period from                      to

Commission file number    33-18756


                          ASSISTED HOUSING FUND L.P. I
             (Exact name of registrant as specified in its charter)

     Washington                                      91-1391150
(State of organization)                     IRS Employer Identification No.)


                1301 Fifth Avenue,  Suite 2204,  Seattle,  WA 98101  (Address of
                principal executive offices) (Zip code)

Registrant's telephone number, including area code: (206) 461-4782

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

                                (Title of class)

         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

               The Exhibit Index appears at page 18. There are 18 pages.

<PAGE>

                                     PART I

Item 1. Business

Assisted Housing Fund L.P. I (the Partnership) is a limited  partnership  formed
on November 2, 1987 and organized under the laws of the State of Washington.

The  Partnership  raised  $3,511,000  from  the  sale of 703  units  of  limited
partnership  through  a  public  offering  completed  on  April  14,  1989.  The
Partnership   has  invested  as  a  limited  partner  in  eleven  other  limited
partnerships (Property Partnerships) which develop, own, and operate residential
apartment  complexes  located in small towns across the country.  Each apartment
complex benefits from several forms of federal assistance programs and qualifies
for low-income  housing credits (Tax Credits)  pursuant to the Internal  Revenue
Code by the Tax Reform Act of 1986. There are 334 partners in the Partnership.

The Partnership's  general partner is Murphey Favre  Properties,  Inc., (MFP), a
wholly-owned subsidiary of WM Financial, Inc. which is a wholly-owned subsidiary
of  Washington  Mutual Bank (WMB),  a wholly-  owned  subsidiary  of  Washington
Mutual, Inc.

Table A on page 4 lists the Property  Partnerships  in which the Partnership has
invested.  Item 7 of this Report  contains other  significant  information  with
respect to such Property Partnerships.

Each Property Partnership has, as its general partner  (developer),  one or more
individuals  or an  entity  not  affiliated  with  the  Partnership  or MFP.  In
accordance  with the  Partnership  Agreements  under  which  such  entities  are
organized,  the Partnership depends on the developers for the management of each
Property  Partnership.  As of December 31, 2000, the Property  Partnerships  and
their developers were:

<PAGE>

PROPERTY PARTNERSHIP                         DEVELOPER GENERAL PARTNER

 1.  Fairview Apartments Company Limited     Rural Housing Corporation
     Partnership (Fairview)

 2.  Ionia Limited Divided Housing           Rural Housing Corporation
     Association (LDHA) Limited
     Partnership (Ionia)

 3.  Logan Apartments Company Limited        Rural Housing Corporation and
     Partnership (Logan)                     Arthur H. Winer

 4.  Rolling Brook II LDHA Limited           Rural Housing Corporation
     Partnership (Rolling Brook)

 5.  Wexford Manor LDHA Limited              Rural Housing Corporation
     Partnership (Wexford)

 6.  Blue Heron Apartment Associates         Dujardin Development Co.
     Limited Partnership (Blue Heron)

 7.  Glenwood Apartment Associates Limited   Dujardin Development Co.
     Partnership (Glenwood)

 8.  Pacific Place Apartment Associates      Dujardin Development Co.
     Limited Partnership (Pacific Place)

 9.  Cove LDHA Limited Partnership (Cove)    Kenneth & Lowell Werth

10.  Washington Street LDHA Limited          Kenneth & Lowell Werth
     Partnership (Washington)

11.  Fayette Hills Limited Partnership       LeRoy Eslinger and
     (Fayette)                               Douglas E. Pauley


A wholly-owned  subsidiary of MFP, Murphey Favre Housing  Managers (MFHM),  is a
special  limited partner in each Property  Partnership and has certain  approval
rights over the actions by the developers of the Property Partnerships.

<PAGE>

                                     Table A

                                SELECTED PROPERTY

                                PARTNERSHIP DATA

<TABLE>
<CAPTION>

Property                                   Date Interest        Number of
Partnerships      Location                 Acquired             Apt. Units
<S>               <C>                      <C>                     <C>

Fairview          Plymouth, WI             December 1, 1989        40
Ionia             Ionia, MI                December 1, 1989        24
Logan             Logan, OH                December 1, 1989        32
Rolling Brook     Algonac, MI              December 1, 1989        24
Wexford           Onsted, MI               December 1, 1989        24
Blue Heron        Bainbridge Island, WA    March 20, 1989          40
Glenwood          Lake Stevens, WA         June 1, 1988            46
Pacific Place     South Bend, WA           October 4, 1988         24
Cove              Big Rapids, MI           July 12, 1989           48
Washington        Perry, MI                July 12, 1989           24
Fayette           Fayetteville, WV         December 1, 1989        68
                                                                 ----
                                                                             394

</TABLE>
<PAGE>

Item 2. Properties

Rental   property   consists  of   apartment   projects   renting  to  low-  and
moderate-income tenants.

As of December 31, 2000, the Property  Partnerships had placed rental properties
into operation in the following locations:

                                                Date Placed

                               Location In Service

                       Plymouth, WI             June 13, 1990
                       Ionia, MI                August 8, 1990
                       Logan, OH                January 11, 1991
                       Algonac, MI              March 8, 1990
                       Onsted, MI               February 21, 1990
                       Bainbridge Island, WA    May 1, 1990
                       Lake Stevens, WA         April 1, 1989
                       South Bend, WA           May 1, 1989
                       Big Rapids, MI           March 1, 1990
                       Perry, MI                January 1, 1990
                       Fayetteville, WV         December 1, 1989

Item 3. Legal Proceedings

None

Item 4. Submission of Matters to a Vote of Security Holders.

None

                                     PART II

Item 5.  Market for  the  Registrant's  Securities  and  Related Security Holder
Matters

The  Registrant's  securities  consist  of  703  units  of  Limited  Partnership
Interest,  valued at $5,000 per unit,  for which  there is no market.  Units may
only be sold, assigned,  exchanged or otherwise transferred upon compliance with
the terms of the Limited Partnership Agreement.

As of the  date of  filing  of this  report,  the  Partnership  has 334  limited
partners and one general partner.

The Partnership has not made any  distributions  in 1998, 1999 and 2000 and does
not anticipate making any significant distributions in the future.

<PAGE>

Item 6.  Selected Financial Data

<TABLE>
<CAPTION>

                    Year Ended     Year Ended     Year Ended     Year Ended     Year Ended
                    12/31/00       12/31/99       12/31/98       12/31/97       12/31/96
<S>                <C>            <C>            <C>            <C>            <C>

Rental Revenue      $ 1,586,293    $ 1,540,441    $ 1,505,575    $ 1,448,422    $ 1,415,977


Interest
Revenue                  25,085         24,068         24,835         24,538         21,800


Income (Loss)          (457,473)      (513,222)      (500,629)      (535,351)      (618,708)

Income (Loss)
per Limited
Partnership
Unit                       (644)          (723)          (705)          (754)          (871)


Total Assets         10,933,585     11,431,980     11,949,410     12,514,876     13,022,213

Mortgage Notes
Payable

                    $12,287,154    $12,319,268     12,348,628    $12,375,470    $12,399,750
</TABLE>

Item  7.   Management's  Discussion  and  Analysis of  Financial  Condition  and
Results of Operations

During the year,  management's emphasis was on the continued operation of eleven
properties.  At December 31, 2000, five properties were 100% occupied, four were
between 91% and 98% occupied and two were between 73% and 75% occupied.

Several properties continue to have cash flow problems. Fayette, located in West
Virginia,  continues  to have  high  vacancy  related  to  local  rental  market
conditions. Real estate taxes were delinquent at December 31, 2000.

Cove, located in Michigan, also had delinquent real estate taxes at December 31,
2000, although operations improved during 2000. Management expects operations to
improve sufficiently in 2001 to allow taxes to be paid timely.

During 2000, RHS advanced funds to Washington  Street,  located in Michigan,  to
pay  delinquent  real estate taxes of $42,917.  The advance will be added to the
mortgage  note and  reamortized  in 2001.  RHS has  provided  additional  rental
assistance  to the  project,  which  should  improve  occupancy  and support the
increased rents necessary to make the increased mortgage payments.

Fairview,  located in Wisconsin, has experienced increased vacancies due to less
demand for  low-income  housing  in its market  area.  Management  continues  to
aggressively market the project.

The developer general partner of Logan, located in Ohio, did not comply with RHS
regulations  regarding the handling of project cash during 2000. These instances
of  non-compliance  were reported to the appropriate  authorities  subsequent to
December 31, 2000. In addition,  subsequent  to December 31, 2000,  the DGP made
two unauthorized withdrawals of project cash totaling $20,511. MFP and the other
general partners of Logan are considering  proceedings to remove and replace the
administrative general partner.

The  properties  are located in rural towns with  populations of 14,000 or less.
Five  properties are located in Michigan,  three in Washington,  and one each in
Ohio,  West Virginia and Wisconsin.  The properties  range in size from 24 to 68
units for a total portfolio of 394 units.

Results of Operations

On a consolidated  basis, net income (loss) before  depreciation for 2000, 1999,
and 1998 was $147,092, $122,277, and $134,348, respectively. Rental revenues for
2000 were up 2.9% compared to increases of 2.3% from 1998 to 1999, and 3.9% from
1997 to 1998. Rental operation expenses for 2000, including  depreciation,  were
down 0.1% over 1999, while rental operation  expenses,  including  depreciation,
for 1999 and 1998 were up 2.9% and 0.5% over 1998 and 1997, respectively.

The Partnership paid $23,500,  $23,000 and $22,690,  in accounting  expenses for
the Partnership for 2000, 1999, and 1998, respectively.

Interest  revenue for 2000 increased 4.2% from 1999 and decreased 3.1% from 1998
to 1999.

<PAGE>

Liquidity and Capital Resources

The Partnership completed its public offering of units of limited partnership on
April 14, 1989, with proceeds totaling $3,511,000 from 339 limited partners.  As
of December 31,  1999,  the  Partnership  had  invested  $2,542,000  of offering
proceeds in eleven Property Partnerships.

Offering proceeds equal to $175,750 were reserved by the Partnership to fund its
operating  expenses.  As  of  December  31,  2000,  the  cash  reserves  of  the
Partnership  totaled  $13,148.  It is expected that the Partnership will draw on
the reserves in future years to fund accounting and other operating  expenses of
the Partnership.  Nominal cash distributions from the Property Partnerships will
supplement  the cash  reserves.  In 2000, the  Partnership  received  $13,255 in
distributions from the Property  Partnerships.  The expectation is that all cash
distributions received from the Property Partnerships will be used to defray the
operating expenses of the Partnership and thus it is not likely any distribution
will be made to the limited partners.

The  Partnership  is not  required to fund  additional  amounts to the  Property
Partnerships based on each Property Partnership  agreement.  Additionally,  each
Property  Partnership  is operated  as an  individual  project,  and without any
contractual arrangements of any kind between the Property Partnerships. In 2000,
nine  properties  generated  positive  cash  flow and two  properties  generated
deficit cash flow. The deficits were funded from rental  operating cash and from
authorized withdrawals from the reserve accounts.

As of December 31, 2000, one developer general partner had advanced $14,209 to a
Property  Partnership  under the deficit  funding  agreement in place during the
guarantee  period.  The guarantee  periods ended in 1991 and 1992. The developer
general partners are no longer obligated to fund operating deficits.

The Property  Partnerships  financed  construction  with a  combination  of bank
financing and funds from the Partnership. The permanent loans for the properties
were  provided by the Farmers Home  Administration,  now known as Rural  Housing
Service  (RHS),  under  Section  515 of the  National  Housing  Act of 1949,  as
amended.  RHS  provides an interest  credit to the Property  Partnerships  which
reduces  the  interest  rates  stated in the  mortgage  notes to an  effective 1
percent rate over the lives of the mortgages. All property loans are current.

Capital expenditures on the properties are expected to increase over the initial
years'  capital  expenses  due  to  the  natural  aging  process  of  the  newly
constructed (10 properties) or newly  rehabilitated (1 property) projects at the
time of the formation of the Partnership.  As part of RHS loan  requirements,  a
reserve account is funded at an annual rate of 1% of the original  property loan
balance until the balance equals 10% of the original loan balance.  Additions to
reserve  accounts are funded from property  operations and are  established  for
future capital expenditures.

 <PAGE>

Included in cash deposits on the  consolidated  balance  sheets were $13,148 and
$25,101 held as deposits by the  Partnership  in WMB accounts as of December 31,
2000 and 1999,  respectively.  As discussed in Part I, Item 1, WMB is affiliated
with MFP.

There are no additional acquisitions nor any dispositions planned.

Regulatory Restrictions

Because the properties are operated under RHS loans and benefit from the federal
low-income housing tax credit program, the properties are restricted as to their
use and must comply with the requirements of the respective federal programs.

The tenants of all the properties  must be tax credit and RHS eligible  tenants.
It is management's goal to have all units, except for managers' units,  occupied
by  tax  credit  eligible   tenants.   In  order  to  meet  established   income
requirements,  tenants must not earn more than 60% of the median  income for the
areas in which the  properties are located.  Seven of the eleven  properties are
further restricted to renting apartment units only to senior citizens.

Additionally,  the properties  cannot be sold without prior approval of the RHS,
cannot  make  more  than an 8%  cash  distribution  annually  to its  owner  (as
described in Note 6 to the Partnership's financial statements),  and must remain
under  the  low-income  housing  tax  credit  program  for 15 years to avoid any
recapture of the low-income  housing tax credits.  Furthermore,  pursuant to RHS
loan  agreements,  RHS may  refuse  prepayment  of the  loans  and  require  the
properties be used for the purpose of providing  housing to eligible tenants for
a minimum period of 20 years.

Inflation

Operating  expenses  and  rental  revenues  of  each  property  are  subject  to
inflationary  factors.  Low rates of inflation  could result in rental  revenues
remaining  constant  or  increasing  at slower  rates  than in  periods  of high
inflation.  High  rates  of  inflation  raise  the  operating  expenses  of  the
properties, and to the extent the increased operating expenses are not passed on
to the tenants by rental increases, the properties' operation could be adversely
affected.

<PAGE>

Tax Credit

As of December 31, 2000, 1999, and 1998, tax credits equal to 5.86%,  13.26% and
15.17%,  respectively,  of the limited partners' capital contributions have been
generated.

Item 8. Financial Statements and Supplementary Data

The  financial  statements  of Assisted  Housing  Fund L.P. I as of December 31,
2000, 1999, and 1998,  together with the independent  auditors' reports thereon,
are filed herewith in Part IV, Item 14 of this Form 10-K.

Item  9.  Changes  in  and  Disagreements  with  Accountants  on Accounting  and
Financial Disclosure

None.



                                    PART III

Item 10. Directors and Executive Officers of the Registrant

Murphey  Favre  Properties,  Inc. (MFP) is  the managing  general partner of the
Partnership. The Registrant has no employees.


Item 11. Executive Compensation

Name of Individual      Capacities

  or Number of           in Which                    Cash
 Persons in Group         Served                 Compensation


                                       Year Ended   Year Ended   Year Ended
                                       12/31/00     12/31/99     12/31/98



     None

<PAGE>

Item 12. Security Ownership of Certain Beneficial Owners and Management

                  Name and                  Amount and
                  Address of                Nature of

Title of          Beneficial                Beneficial            Percent
Class             Owner                     Owner                 of Class

General           Murphey Favre             (1)                   100%
Partner's         Properties, Inc.
Interest          Suite 2204
                  1301 Fifth Avenue
                  Seattle, WA  98101

(1) The  General  Partner's  interest  is owned of record  and  beneficially  by
Murphey Favre  Properties,  Inc. Its capital interest as of December 31, 2000 is
($61,077).

Item 13. Certain Relationships and Related Transactions

The  Property  Partnerships  have  entered  into  certain  agreements  with  the
developer or its affiliates under which the developer or its affiliates  receive
compensation,  perform services, or make loans. Note 2 of the Notes to Financial
Statements,  which are filed in Part IV,  Item 14 of this  Form  10-K,  provides
additional information pertaining to the individual Property Partnerships.

<PAGE>

                                     PART IV

Item 14. Exhibits, Financial Statements, Schedules, and Reports on Form 8-K

(a)          1. The following financial statements of Assisted Housing Fund L.P.
             I and subsidiaries are incorporated by reference in Part II and are
             attached as pages 1 to 13 of Exhibit 13.

                                 Page of Annual

                                                                          Report

              Independent Auditor's Report..........................       1

              Balance Sheets as of December 31, 2000 and 1999.......       2

              Statements of Operations for each of the years ended
              December 31, 2000, 1999 and 1998......................       3

              Statements of Partners' Equity (Deficit) for each of
              the years ended December 31, 2000, 1999 and 1998......       4

              Statements of Cash Flows for each of the years ended
              December 31, 2000, 1999 and 1998......................       5

              Notes to Financial Statements for each of the years
              ended December 31, 2000, 1999 and 1998...............      6-12

              2.  Financial statement schedules                Page of Form 10-K

              Independent Auditor's Report on Schedules.............      13

              Schedule III - Real Estate and Accumulated

              Depreciation..........................................    14-16

              All other  schedules for which provision is made in the applicable
              accounting  regulations of the Securities and Exchange  Commission
              are omitted because either they are not applicable or the required
              information is shown in the financial statements or notes thereto.

               3.  Exhibits:  All  exhibits  to this  report  are  listed in the
               Schedule Index at page 17.

(b) No reports on Form 8K were filed during 2000.

<PAGE>

                                   SIGNATURES

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

                          ASSISTED HOUSING FUND L.P. I
                                   Registrant

By:  Murphey Favre Properties, Inc.
     Its Managing General Partner




By:              Herbert F. Fox /s/          Date:    3/31/2001
              Herbert F. Fox, Vice President
              and Principal Financial Officer

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

By:           Murphey Favre Properties, Inc.



By:              Kerry K. Killinger /s/         Date:    3/31/2001
              Kerry K. Killinger
                Its Director

By:              David G. Murphy /s/            Date:     3/31/2001
              David G. Murphy
                Its Director

<PAGE>

                    INDEPENDENT AUDITOR'S REPORT ON SCHEDULES




Partners
Assisted Housing Fund L.P. I
Seattle, Washington

We have audited the consolidated  financial  statements of Assisted Housing Fund
L.P. I and its  subsidiaries,  as of and for the years ended  December 31, 2000,
1999 and 1998 listed under Item 14(a)1 hereof and have issued our report thereon
dated March 26, 2001 (which  report is  incorporated  by reference  elsewhere in
this Form 10-K).  In the course of our audits of such financial  statements,  we
have also  audited the  schedules  listed  under Item 14(a)2 for the years ended
December 31, 2000, 1999 and 1998. These schedules are the  responsibility of the
Partnership's  management.  Our responsibility is to express an opinion based on
our audits.  In our opinion,  these schedules  present  fairly,  in all material
respects,  when read in conjunction with the related financial  statements,  the
information therein set forth.

Blume Loveridge & Co., PLLC
Bellevue, Washington
March 26, 2001

<PAGE>

                           ASSISTED HOUSING FUND LP I
             SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
                          Year Ended December 31, 2000

<TABLE>
<CAPTION>

      COLUMN A           COLUMN B                        COLUMN C                        COLUMN D
--------------------------------------------------------------------------------------------------------
                                                                                     Costs Capitalized
                                                                                        Subsequent

    Description        Encumbrances              Initial Cost to Partnership          to Acquisition
--------------------------------------------------------------------------------------------------------
<S>                      <C>              <C>          <C>            <C>               <C>

                                                     Buildings &      Personal
                                           Land      Improvements     Property       Improvements
                                       -----------------------------------------------------------------
Fairview                 $ 1,270,643      $ 55,413                                      $ 1,580,336

Ionia                        709,912        24,000                                          925,267

Logan                        993,035        55,129                                        1,210,185

Rolling Brook                745,700        35,000                                          927,015

Wexford                      723,916        22,000                                          949,507

Blue Heron                 1,466,021       248,569                                        1,622,709

Glenwood                   1,435,457       145,000                                        1,600,735

Pacific Place                755,827        30,000                                          898,768

Cove                       1,428,290        47,000                                        1,735,328

Washington                   713,450         8,000                                          880,536

Fayette                    2,044,903        53,000     $1,779,270     $40,800               652,102

AHF                                                       444,240
                     -----------------------------------------------------------------------------------

Total                    $12,287,154     $723,111     $2,223,510     $40,800           $12,982,488
                     ===================================================================================
Construction in

  Progress                        $0                                                             $0
                     ==================                                             ====================
</TABLE>
<PAGE>

                           ASSISTED HOUSING FUND LP I
             SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
                    (Continued) Year Ended December 31, 2000
                                     <TABLE>

<CAPTION>

     COLUMN A                    COLUMN E                                   COLUMN F      COLUMN G       COLUMN H     COLUMN I
---------------------------------------------------------------------------------------------------------------------------------
    Description        Gross Amount at Which Carried at End of Period      Accumulated     Date of       Date of       Life on
                                                                          Depreciation  Construction   Acquisition      Which
                                                                                                                     Depreciation

                                                                                                                      in Latest
                                                                                                                       Income

                                                                                                                      Statement
                                                                                                                     is Computed

---------------------------------------------------------------------------------------------------------------------------------
<S>                  <C>         <C>            <C>           <C>            <C>           <C>           <C>          <C>

                     Land        Buildings       Land            Total
                                              Improvements
                                              and Personal
                                                Property

                     ------------------------------------------------------
Fairview             $ 55,413    $ 1,418,319    $  162,017    $ 1,635,749    $  683,907    13-Jun-90                  27.5/15/10

Ionia                $ 24,000        812,947       112,320        949,267       397,443    08-Aug-90                  27.5/15/10/7

Logan                $ 55,129      1,022,974       187,211      1,265,314       521,153    11-Jan-91                  27.5/15/10

Rolling Brook        $ 35,000        794,263       132,752        962,015       415,765    08-Mar-90                  27.5/15/10/7

Wexford              $ 22,000        815,821       133,686        971,507       431,013    21-Feb-90                  27.5/15/10

Blue Heron           $248,569      1,890,967        90,217      2,229,753       813,460    01-May-90                  27.5/10

Glenwood             $145,000      1,701,975        52,678      1,899,653       772,634    01-Apr-89                  27.5/10/7

Pacific Place        $ 30,000        943,619        32,219      1,005,838       423,831    01-May-89                  27.5/10/7

Cove                 $ 47,000      1,635,278       100,050      1,782,328       720,541    01-Mar-90                  27.5/10/7

Washington           $  8,000        842,461        38,075        888,536       366,863    01-Jan-90                  27.5/10

Fayette              $ 53,000      2,344,141       128,031      2,525,172     1,046,330    01-Dec-89                  27.5/15/10/7

AHF                  $      0        444,240                      444,240       176,519                  Various
                     ------------------------------------------------------------------
Total                $723,111    $14,667,005    $1,169,256    $16,559,372    $6,769,459
                     ====================================================================
Construction in

  Progress                                                              0
                                                            ==============
</TABLE>
<PAGE>

                           ASSISTED HOUSING FUND LP I
             SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
                    (Continued) Year Ended December 31, 2000


<TABLE>
<CAPTION>

                                                  Year Ended                 Year Ended                 Year Ended
REAL ESTATE                                    December 31, 1998        December 31, 1999        December 31, 2000
-----------------------------------------------------------------------------------------------------------------------
<S>                                         <C>        <C>            <C>        <C>           <C>        <C>
Balance at beginning of period                          $16,450,047               $16,492,085              $16,513,492
  Additions during period:
    Property acquisitions                    $     0                   $     0                  $     0
    Acquisitions through foreclosure               0                         0                        0
    Other acquisitions                             0                         0                        0
    Improvements etc. (New Construction)      42,038                    32,707                   45,880
       Other (Acquisition Cost)                    0                         0                        0
                                            ---------------------------------------------------------------------------
                                                        $16,492,085               $16,524,792              $16,559,372
    Deductions during period:
       Cost of real estate sold              $     0                   $     0                  $     0
       Other - retired fixed assets                0                    11,300                        0
                                            ---------------------------------------------------------------------------
    Balance at close of period                          $16,492,085               $16,513,492              $16,559,372
                                                        ===========               ===========              ===========
</TABLE>

<TABLE>
<CAPTION>

                                                  Year Ended                 Year Ended                 Year Ended
ACCUMULATED DEPRECIATION                       December 31, 1998         December 31, 1999          December 31, 2000
----------------------------------------------------------------------------------------------------------------------
<S>                                         <C>        <C>              <C>        <C>           <C>        <C>
Balance at beginning of period                         $4,905,719                  $5,540,696                $6,164,895

  Existing property:                                      634,977                     635,499                   604,564
  Depreciation on additions:
    Property acquisitions                   $    0                      $0                       $0
    Acquisitions through foreclosure             0                       0                        0
    Other acquisitions                           0                       0                        0
    Improvements etc. (New Construction)         0                       0                        0
    Other (Acquisition Costs)                    0                       0                        0
                                            --------------------------------------------------------------------------
                                                       $5,540,696                  $6,176,195                $6,769,459
  Depreciation on deductions:
    Cost of real estate sold                $    0                      $0                       $0
    Other - retired fixed assets                 0              0   11,300                        0                   0
                                            --------------------------------------------------------------------------
Balance at close of period                             $5,540,696               $6,164,895                  $6,769,459
                                                       ==========               ==========                  ==========
</TABLE>
<PAGE>

Exhibit                                             Incorporated by
No.                                                 Reference From

 3       Certificate of Limited Partnership         Exhibit C to Form S-11
                             Registration Statement

                                 No. 91-1391150

13       Annual Report to Security Holders          Attached hereto
<PAGE>

                          ASSISTED HOUSING FUND L.P. I
                                AND SUBSIDIARIES

                        CONSOLIDATED FINANCIAL STATEMENTS

                                       AND

                          INDEPENDENT AUDITOR'S REPORT

                        FOR THE YEARS ENDED DECEMBER 31,
                              2000, 1999, AND 1998

<PAGE>

                                    CONTENTS

                                                                            Page

INDEPENDENT AUDITOR'S REPORT.......................................      1

FINANCIAL STATEMENTS:

Consolidated Balance Sheets........................................      2

Consolidated Statements of Operations..............................      3

Consolidated Statements of Partners' Equity (Deficit)..............      4

Consolidated Statements of Cash Flows..............................      5

Notes to Financial Statements.......................................    6-12
<PAGE>

                          INDEPENDENT AUDITOR'S REPORT

Partners
Assisted Housing Fund L.P. I
Seattle, Washington

We have audited the accompanying consolidated balance sheets of Assisted Housing
Fund L.P. I and its  subsidiaries,  as of December  31,  2000 and 1999,  and the
related  consolidated  statements of operations,  partners' equity (deficit) and
cash  flows for the  years  ended  December  31,  2000,  1999,  and 1998.  These
financial statements are the responsibility of the Partnership's management. Our
responsibility  is to express an opinion on these financial  statements based on
our audits.

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

In our opinion, the consolidated  financial statements referred to above present
fairly,  in all material  respects,  the financial  position of Assisted Housing
Fund L.P. I and its  subsidiaries,  as of December  31,  2000 and 1999,  and the
results of their  operations  and cash flows for the years  ended  December  31,
2000,  1999,  and  1998,  in  conformity  with  generally  accepted   accounting
principles.

Blume Loveridge & Co., PLLC
Bellevue, Washington
March 26, 2001

<PAGE>

                  ASSISTED HOUSING FUND L.P. I AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>

                                                     December 31,
                                              2000                   1999

                                  ASSETS

<S>                                          <C>                   <C>

Rental property and equipment, at cost:

    Buildings and equipment                   $15,836,260           $15,790,381
    Accumulated depreciation                   (6,769,459)           (6,164,895)
                                              -----------            -----------
                                                9,066,801             9,625,486
    Land                                          723,111               723,111
                                              -----------            -----------
                                                9,789,912            10,348,597

Cash:
    Rental operation                              214,415               190,299
    Partnership                                    13,148                25,101
                                              -----------            -----------
                                                  227,563               215,400

Restricted deposits:
    Tenant trust - security deposits              114,970               116,122
    Reserve accounts                              737,977               699,706
                                              -----------            -----------
                                                  852,947               815,828

Other assets:
    Accounts receivable                            36,411                36,304
    Accounts receivable - DGP's                    17,628                 1,072
    Prepaid expenses                                9,124                14,779
                                              -----------            -----------
                                                   63,163                52,155
                                              -----------            -----------

                                              $10,933,585           $11,431,980
                                             ============           ============

</TABLE>

                              Continued on page 2A.

                                     Page 2

<PAGE>

                  ASSISTED HOUSING FUND L.P. I AND SUBSIDIARIES

                    CONSOLIDATED BALANCE SHEETS - (CONTINUED)

<TABLE>
<CAPTION>

                                                     December 31,
                                              2000                   1999

                   LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
<S>                                          <C>                    <C>

Liabilities:
    Mortgage notes payable                    $12,287,154           $12,319,268
    Assessment payable                                  -                41,141
    Accounts payable                              306,143               249,143
    Due to affiliates                             660,464               640,961
    Accrued liabilities                           114,238               129,615
    Security deposits payable                     111,116               113,902
                                              -----------           -----------
                                               13,479,115            13,494,030

Minority interests in property
   partnerships                                   441,445               467,452

Contingency

Partners' equity (deficit):
    Limited partners                           (2,925,898)           (2,473,000)
    General partner                               (61,077)              (56,502)
                                              -----------           -----------
                                               (2,986,975)           (2,529,502)
                                              -----------           -----------

                                              $10,933,585           $11,431,980
                                              ===========           ===========

</TABLE>

                 See accompanying notes to financial statements.

                                     Page 2A

<PAGE>

                  ASSISTED HOUSING FUND L.P. I AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>

                                         Years Ended December 31,
                                      2000             1999             1998
<S>                                <C>                <C>            <C>
Revenue:
    Rent                            $1,586,293       $1,540,441      $1,505,575
    Miscellaneous                       89,741           79,864          73,344
                                   ----------       -----------      ----------
                                     1,676,034        1,620,305       1,578,919

Expenses:
    Operating and maintenance          254,907          274,252         235,793
    Utilities                          277,937          262,656         243,754
    General and administrative         390,368          364,916         359,323
    Taxes and insurance                279,440          268,517         270,871
    Interest                           317,916          318,595         319,192
    Depreciation                       604,564          635,499         634,977
                                   -----------        ---------      ----------
                                     2,125,132        2,124,435       2,063,910
                                   -----------        ---------      ----------

                                      (449,098)        (504,130)       (484,991)
Other revenues (expenses):
    Interest earned on
       partnership cash                    504            414                92
    Minority interest
       in operations                    25,642         26,206            26,022
    Accounting and auditing            (23,500)       (23,000)          (22,690)
    General and administrative          (8,030)        (8,862)          (13,685)
    Incentive management fees           (2,991)          (870)           (2,434)
    Miscellaneous                                      (2,980)           (2,943)
                                     ----------     ----------       ----------
                                        (8,375)        (9,092)          (15,638)
                                     ----------     ----------       ----------

       Net income (loss)            $ (457,473)     $(513,222)       $ (500,629)
                                    ===========     ==========       ==========

       Net income (loss) per
         unit of limited
         partnership interest       $     (644)     $    (723)       $     (705)
                                    ==========      =========       ==========
</TABLE>

                 See accompanying notes to financial statements.

                                     Page 3

<PAGE>

                  ASSISTED HOUSING FUND L.P. I AND SUBSIDIARIES

              CONSOLIDATED STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

                  Years Ended December 31, 2000, 1999, and 1998

<TABLE>
<CAPTION>

                                   Limited          General
                                   Partners         Partner         Total
<S>                                <C>              <C>             <C>

Profit/loss percentage               99.0%             1.0%          100.0%
                                   ===========      ========        =========

Balance - January 1, 1998           (1,469,287)     $(46,364)       $(1,515,651)

Net income (loss) for 1998            (495,623)       (5,006)          (500,629)
                                   -----------      --------        -----------
Balance - December 31, 1998         (1,964,910)      (51,370)        (2,016,280)

Net income (loss) for 1999            (508,090)       (5,132)          (513,222)
                                   -----------      --------        -----------
Balance - December 31, 1999        $(2,473,000)      (56,502)        (2,529,502)

Net income (loss) for 2000            (452,898)       (4,575)          (457,473)
                                   -----------      --------        -----------
Balance - December 31, 2000        $(2,925,898)     $(61,077)       $(2,986,975)
                                   ===========      ========        ===========

</TABLE>

                 See accompanying notes to financial statements.

                                     Page 4

<PAGE>

                  ASSISTED HOUSING FUND L.P. I AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                           Increase (Decrease) in Cash

<TABLE>
<CAPTION>

                                            Years Ended December 31,
                                        2000          1999          1998
<S>                                     <C>           <C>           <C>
Cash flows from operating activities:
    Net income (loss)                    $(457,473)    $(513,222)     $(500,629)
    Adjustments to reconcile net
        income (loss) to net cash
        provided by operating
        activities:
    Depreciation                           604,564       635,499        634,977
    Minority interests in
        operations                         (25,642)      (26,206)       (26,022)
    Changes in certain assets
        and liabilities:
      Accounts receivable                  (16,663)        2,010          2,436
      Prepaid expenses                       5,655        (7,012)        13,733
      Accounts payable                      57,000        (2,529)        (8,989)
      Accrued liabilities                  (15,377)       21,689        (27,926)
      Due to affiliates                     19,503        31,861         31,435
      Security deposits                     (1,634)         (777)        (4,053)
                                         ---------      ---------     ---------

    Net cash provided by
        operating activities               169,933       141,313        114,962

Cash flows from investing activities:

    Purchase of depreciable
        property                           (45,879)      (32,707)       (42,038)
    Deposits to reserve accounts          (160,236)     (142,031)      (158,018)
    Withdrawals from

      reserve accounts                     121,965       121,098        124,020
                                          --------       -------      ---------

    Net cash provided (used) by
           investing activities            (84,150)      (53,640)       (76,036)
</TABLE>

                              Continued on page 5A.

                                     Page 5

<PAGE>

                  ASSISTED HOUSING FUND L.P. I AND SUBSIDIARIES

               CONSOLIDATED STATEMENTS OF CASH FLOWS - (CONTINUED)
                           Increase (Decrease) in Cash

<TABLE>
<CAPTION>

                                        Years Ended December 31,
                                    2000          1999          1998
<S>                                 <C>           <C>           <C>

Cash flows from financing activities:
    Minority partners' capital
          contributions              $   (365)    $     (88)    $     (84)
    Mortgage principal payments       (32,144)      (29,360)      (26,842)
    Assessment principal payments     (41,141)       (6,857)       (6,857)
                                     --------      --------       -------
    Net cash provided (used) by
          financing activities        (73,620)      (36,305)      (33,783)
                                     --------      --------      --------

    Net increase in cash               12,163        51,368         5,143

    Cash - beginning of year          215,400       164,032       158,889
                                     --------      --------      --------

    Cash - end of year               $227,563      $215,400      $164,032
                                     ========      ========      ========


Supplemental disclosure of cash flow information:

    Cash paid for interest           $318,573       $318,806      $319,363
                                     ========      ========      ========

    Fixed assets retired

       (fully depreciated)           $      -      $ 11,300      $      -
                                     ========      ========      ========
</TABLE>

                 See accompanying notes to financial statements.

                                     Page 5A

<PAGE>
                  ASSISTED HOUSING FUND L.P. I AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1 - NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING
              POLICIES

Nature of Business
Assisted Housing Fund L.P. I (the  Partnership) is a limited  partnership  which
was  organized  November  2, 1987 under the laws of the state of  Washington  to
acquire  limited  partnership  interests  in other  partnerships  (the  Property
Partnerships), each of which has been organized to develop or purchase a low- or
moderate-income  apartment project. The Partnership's general partner is Murphey
Favre Properties,  Inc. (MFP), a wholly-owned subsidiary of WM Financial,  Inc.,
which  is  a  wholly-owned   subsidiary  of  Washington  Mutual  Bank  (WMB),  a
wholly-owned  subsidiary of Washington Mutual, Inc. As of December 31, 2000, 334
limited   partners  held  the  703  units  of  limited   partnership   interests
outstanding.

The   Partnership   has  invested  as  a  limited  partner  in  eleven  Property
Partnerships.  The  developer of each  apartment  project  serves as the general
partner (DGP) of the respective Property Partnership.

The  properties  owned by the  Property  Partnerships  are located in  Michigan,
Wisconsin,  Ohio,  West Virginia and  Washington.  The  apartment  projects were
financed  and  constructed  under  Section 515 of the  National  Housing Act, as
amended  (administered  by the U.S.  Department  of  Agriculture,  Rural Housing
Service (RHS)). Under this program, the Property Partnerships provide housing to
low- and moderate-income  tenants. Lower rental charges to tenants are recovered
by the Property Partnerships through an interest reduction program which reduces
the  effective  interest rate over the lives of the mortgages to 1 percent and a
rental  assistance  program  whereby RHS pays the  Property  Partnerships  for a
portion of qualified tenant rents.  Construction of the apartment projects began
between June, 1988 and May, 1990 and rental operations began between April, 1989
and February, 1991.

Additionally,  in exchange for an allocation of federal  low-income  housing tax
credits under Section 42 of the Internal Revenue Code, each Property Partnership
has entered into an agreement with an agency of the state in which the apartment
project is located,  whereby the Property Partnership has agreed to maintain all
apartment units as both rent restricted and occupied by low-income tenants for a
minimum period of 15 years.

During the years ended December 31, 2000,  1999,  and 1998,  rental revenue from
RHS totaled $482,617,  $462,125,  and $451,730,  representing 28.8 percent, 28.5
percent, and 28.6 percent of total revenue, respectively.

                                     Page 6

<PAGE>
                  ASSISTED HOUSING FUND L.P. I AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1 - NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING
              POLICIES - (CONTINUED)

Principles of Consolidation
The financial statements include the financial statements of the Partnership and
the following eleven Property Partnerships in which it has invested as a limited
partner:

       Fairview Apartments Company Limited Partnership (Fairview)
       Ionia Limited Dividend Housing Association Limited Partnership (Ionia)
       Logan Apartments Company Limited Partnership (Logan)
       Rolling Brook II Limited Dividend Housing Association Limited Partnership
        (Rolling Brook)
       Wexford Manor Limited Dividend Housing Association Limited Partnership
        (Wexford)
       Blue Heron Apartment Associates Limited Partnership (Blue Heron)
       Glenwood Apartment Associates Limited Partnership (Glenwood)
       Pacific Place Apartment Associates Limited Partnership (Pacific Place)
       Cove Limited Dividend Housing Association Limited Partnership (Cove)
       Washington Street Limited Dividend Housing Association Limited
        Partnership (Washington)
       Fayette Hills Limited Partnership (Fayette)

The  financial  statements  are  presented on a  consolidated  basis because the
Partnership holds  approximately 99 percent of the profit and loss interests and
approximately 55 percent of the equity  interests in each Property  Partnership.
Through  an  affiliate,  who is a  special  limited  partner  in  each of the 11
Property  Partnerships,  the Partnership controls certain fundamental  decisions
affecting  the  operation  of  the  Property  Partnerships.   These  fundamental
decisions  include  significant  purchases  of assets,  material  borrowings  or
creation  of  liens  on  the  underlying  properties,   entering  into  material
contracts,  making tax elections and any act that would cause termination of the
Property Partnership.  All material  interpartnership  transactions and balances
have been eliminated.  For the years ended December 31, 2000, 1999 and 1998, net
losses allocable to the minority  partners were $25,642,  $26,206,  and $26,022,
respectively.

Method of Accounting
The accrual method of accounting is used for financial statement purposes.


                                     Page 7

<PAGE>
                  ASSISTED HOUSING FUND L.P. I AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1 - NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING
              POLICIES - (CONTINUED)

Cost Overruns
The partnership  agreements for the Property  Partnerships required the DGP's to
fund cost  overruns on the  development  of the  apartment  projects.  Such cost
overruns,  totaling  $589,462,  have been  recorded  as  minority  interests  in
property  partnerships  and have been  included  in the cost basis of the rental
property.  All depreciation  related thereto has been specially allocated to the
respective DGP's.

Depreciation
Depreciation   is  computed  for   financial   statement   purposes   using  the
straight-line  method over the estimated  useful lives of the related  assets as
follows:

       Building shell and components.............. 27.5 years
       Land improvements...... ..................... 15 years
       Appliances............................... 5 - 10 years
       Carpets and draperies.................... 5 - 10 years

Income Taxes
No income tax  provision has been  included in the  financial  statements  since
income or loss of a  Partnership  is required  to be reported by the  respective
partners on their income tax returns.

Cash Equivalents
For  purposes  of the  statement  of  cash  flows,  all  investment  instruments
purchased  with a maturity  of three  months or less are  considered  to be cash
equivalents. At December 31, 2000 and 1999, there were no cash equivalents.

Concentration of Credit
The Property  Partnerships  maintain  cash in bank deposit  accounts  which,  at
times, may exceed federally insured limits.  The Property  Partnerships have not
experienced  any  losses in such  accounts.  Management  believes  the  Property
Partnerships are not exposed to any significant credit risk on cash in such bank
deposit accounts.

Estimates
The preparation of financial  statements in conformity  with generally  accepted
accounting  principles requires management to make estimates and assumption that
affect certain reported amounts and disclosures.



                                     Page 8

<PAGE>
                  ASSISTED HOUSING FUND L.P. I AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1 - NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING
            POLICIES - (CONTINUED)

Reclassification
Certain amounts as previously  presented have been  reclassified to conform with
the current year presentation.

NOTE 2 - TRANSACTIONS WITH AFFILIATES

In connection  with the  acquisition  and development of rental property and the
management of both the rental property and the Partnership,  the Partnership and
Property  Partnerships  have paid or accrued  the  following  amounts to certain
affiliates:

                                       Years Ended December 31,
                                  2000              1999                1998

Murphey Favre Properties, Inc. -
    partnership services fee     $  7,500          $  7,500            $  7,500
Developer general partners and
    affiliates - property
    management fees              $ 95,609          $ 95,594            $124,027


As of December 31, 2000 and 1999, related party payables consisted of the
following:
                                              2000               1999

         Advances from DGP's                  $213,257           $201,784
         Partnership management fees           326,726            326,726
         Partnership services fees              45,000             37,500
         Advances from general partner          75,481             74,951

                                               $660,464           $640,961

During  2000  and  1999,  the  general   partner   advanced  $530  and  $24,361,
respectively, to the Partnership for administrative expenses.

The Partnership maintains deposits in certain of WMB's interest-bearing accounts
which   aggregated   $13,148  and  $25,101  at  December   31,  2000  and  1999,
respectively.  Interest  earned on such  deposits  totaled $504,  $414,  and $92
during the years ended December 31, 2000, 1999 and 1998, respectively.






                                     Page 9

<PAGE>
                  ASSISTED HOUSING FUND L.P. I AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 2 - TRANSACTIONS WITH AFFILIATES - (CONTINUED)

Terms of the RHS Loan  Agreements  require  each  DGP to  provide  interest-free
advances of  stipulated  amounts as initial  operating  capital to the  Property
Partnerships.  Due to affiliates  includes $152,107 of such advances at December
31, 2000 and 1999. In addition,  these balances  include DGP advances of $35,468
for land improvements and $14,209 to fund operating  deficits.  Advances made to
one of the DGP's during 2000 totaled  $15,079,  while funds advanced by the same
DGP to the Property  Partnership  totaled $11,473 (see Note 9). The remainder of
the balances include property management fees and reimbursements  payable to MFP
for partnership services and administration.

Advances  from the DGPs may only be repaid from the  proceeds of future sales of
the  respective  properties.  Property  management  fees are paid out of  rental
operations. Partnership fees are payable from future sales of the properties, to
the extent they are not paid from  distributions  of rental operation cash (Note
6).

Under the terms of management services agreements,  seven of the eleven Property
Partnerships have affiliates of the DGP's which provide management  services for
the rental  properties  and receive  compensation  for such  services in amounts
approximating 8.4% of rental receipts. Three of the eleven Property Partnerships
are co-managed by affiliates of the DGP's which provide management  services for
the rental  properties  and receive  compensation  for such  services in amounts
approximating 2.8% of rental receipts.

NOTE 3 - CASH IN RESERVE ACCOUNTS

The Loan  Agreements  between  the  Property  Partnerships  and RHS  require the
Property  Partnerships  to  deposit  $126,889  annually  into  separate  reserve
accounts until the reserve accounts reach  $1,268,211.  Subject to RHS approval,
these funds may be used for various  purposes,  as further described in the Loan
Agreements.  Ten of the eleven Property  Partnerships are in compliance with the
minimum  annual  funding  requirements  as set  forth by RHS for the year  ended
December 31, 2000. All of the Property  Partnerships  were in compliance for the
year ended December 31, 1999. Reserve  withdrawals at ten of the eleven Property
Partnerships were made in compliance with RHS requirements (see Note 9).






                                     Page 10

<PAGE>


                  ASSISTED HOUSING FUND L.P. I AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 4 - MORTGAGE NOTES PAYABLE

The mortgage notes are payable to RHS in monthly installments  totaling $26,550.
In  accordance  with  provisions  of Interest  Credit  Agreements,  RHS provides
monthly interest credits totaling $69,199 which reduce the interest rates stated
in the  mortgage  notes to  effective  rates of 1 percent  over the lives of the
mortgages.  Amortization  of  principal is based on the stated rates of 8.75% to
10.75%  under RHS's  Predetermined  Amortization  Schedule  System  (PASS).  The
mortgage notes mature May, 2039 through January, 2040.  Substantially all of the
rental  property and  equipment is pledged as collateral  on the  mortgages.  No
partner is individually liable on the mortgage notes.

The mortgage notes are regulated by the U.S.  Government and therefore,  have no
market price. Accordingly, management has determined that users of the financial
statements  would  derive  no  benefit  from  any  estimate  of fair  value  and
performing such an analysis would not be practicable.

Principal payments on the mortgage notes for the next 5 years are as follows:

                           Year                   Amounts

                           2001                   $    35,128
                           2002                        38,422
                           2003                        42,029
                           2004                        46,303
                           2005                        50,294
                           2006 and later years    12,074,978

                                                  $12,287,154

NOTE 5 - ASSESSMENT PAYABLE

In September,  1995, the city of Bainbridge Island issued an assessment for Blue
Heron's share of street and utility  improvements in the amount of $68,569.  The
assessment was payable in 10 equal annual installments together with interest at
the rate of 5.6 percent.  During  2000,  funds were  withdrawn  from the reserve
account and the balance of the assessment was paid in full.







                                     Page 11

<PAGE>
                  ASSISTED HOUSING FUND L.P. I AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 6 - RENTAL OPERATION CASH

RHS regulations  limit the distribution of rental operation cash to a maximum of
$38,090 annually. Any distribution to the Partnership from rental operation cash
is to be made in accordance with the respective partnership agreements.  Whether
or not a Property  Partnership  makes any limited  distribution  is based on the
results of its own operations and is at the discretion of the DGP.

NOTE 7 - GUARANTEES

Each of the DGP's has made a guarantee to the  respective  Property  Partnership
that they will  compensate the  Partnership  in the event the actual  low-income
housing  tax  credit is less than 85% to 90% of the  available  credit.  Through
December 31, 2000, no payments have been made under these guarantee agreements.

NOTE 8 - CONTINGENCY

The Partnership has ceased accrual of the annual partnership administration fee,
payable in part to the  general  partner.  Management  has  determined  that the
source of payment,  a future sale or  refinance  of one or more of the  Property
Partnerships,  may not be  sufficient  to pay  fees  accrued  in  excess  of the
$544,540 payable at December 31, 1996.  Management has elected to treat fees for
years  subsequent  to 1996 as a contingent  liability.  At December 31, 2000 and
1999 the  contingent  liability  for  partnership  administration  fees  totaled
$298,068 and $223,551, respectively.

NOTE 9 - SUBSEQUENT EVENTS

The DGP of Logan did not comply with RHS  regulations  regarding the handling of
project cash during 2000. These instances of non-compliance were reported to the
appropriate authorities subsequent to December 31, 2000. In addition, subsequent
to December 31, 2000, the DGP made multiple unauthorized  withdrawals of project
cash  totaling  $20,511.  Also,  project  bank  accounts  have been  pledged  in
violation of RHS  regulations.  MFP and the other general  partners of Logan are
considering proceedings to remove and replace the DGP.







                                     Page 12

<PAGE>