**UNITED STATESSECURITIES AND EXCHANGE COMMISIONWashington, D.C.  20549**

** **

**FORM 10-K**

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**ý** ANNUAL REPORTPURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

** **

**FOR THE FISCAL YEAR ENDEDDECEMBER 31, 2003**

 

**ASSISTEDHOUSING FUND L.P. I**(Exact name of registrantas specified in its charter)

** **

| **Washington**                                                  |   | **91-1391150**                                 |
|-----------------------------------------------------------------|--------|------------------------------------------------|
| (State or other jurisdiction of  incorporation or organization) |   | (I.R.S.   Employer Identification Number) |
|                                                            |   |                                           |
| **1301 Fifth Avenue, Suite 1330  Seattle, WA**                  |   | **98101**                                      |
| (Address of principal executive offices)                        |   | (Zip Code)                                     |

 

Registrant’s telephone number, including areacode:**(206) 461-3128**

 

Securities registered pursuant to Section12(b) of the Act:

**None**

 

Securities registered pursuant to Section12(g) of the Act:

**Unitsof Limited Partnership Interest**

** **

Indicate by check markwhether the registrant (1) has filed all reports required to be filed bySection 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding12 months (or for such shorter period that the registrant was required to filesuch reports), and (2) has been subject to such filing requirements for thepast 90 days.   YES ý  NO o.

 

Indicate by check mark ifdisclosure of delinquent filers pursuant to Item 405 of Regulation S-K is notcontained herein, and will not be contained, to the best of registrant’sknowledge, in definitive proxy or information statements incorporated byreference in Part III of this Form 10-K or any amendment to this Form 10-K. ý

 

Indicate by check mark whether the registrant is anaccelerated filer (as defined in Rule 12b-2 of the Act).   YES o   NO ý.

 

Documents Incorporated by Reference:

**None**

** **

** **

** **

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**ASSISTED HOUSING FUND L.P. I**

**2003 ANNUAL REPORT ON FORM 10-K**

**TABLE OF CONTENTS**

 
| **PART I**   |                                                                                                     |
|-------------------|----------------------------------------------------------------------------------------------------------|
|              | Item 1. Business                                                                                    |   |
|              | Overview                                                                                                 |   |
|              | Property  Partnerships                                                                                   |   |
|              | Regulatory  Compliance and Liquidity                                                                     |   |
|              | Item 2. Properties                                                                                  |   |
|              | Item 3. Legal Proceedings                                                                           |   |
|              | Item 4. Submission of Matters to a Vote of  Security Holders                                        |   |
| **PART II**  |                                                                                                     |
|              | Item 5. Market for Registrant’s Common  Equity and Related Securityholder Matters              |   |
|              | Item 6. Selected Financial Data                                                                     |   |
|              | Item 7. Management’s Discussion and  Analysis of Financial Condition and Results of Operations |   |
|              | Cautionary Statements                                                                                    |   |
|              | Results of Operations                                                                                    |   |
|              | Liquidity and Capital  Resources                                                                         |   |
|              | Regulatory Restrictions                                                                                  |   |
|              | Inflation                                                                                                |   |
|              | Tax Credits                                                                                              |   |
|              | Subsequent  Events                                                                                       |   |
|              | Factors  Affecting Results of Operations                                                                 |   |
|              | Item 7A. Quantitative and Qualitative  Disclosures about Market Risk                                |   |
|              | Item 8. Financial Statements and  Supplementary Data                                                |   |
|              | Item 9. Changes in and Disagreements with  Accountants on Accounting and Financial Disclosure       |   |
|              | Item 9A.                                                                                            | Controls and Procedures |   |
|              |                                                                                                     | Disclosure Controls and Procedures |   |
|              |                                                                                                     | Internal Control Over Financial Reporting |   |
|              |                                                                                                     | Critical Accounting Policies |   |
| **PART III** |                                                                                                     |
|              | Item 10. Directors and Executive Officers of  the Registrant                                             |   |
|              | Item 11. Executive Compensation                                                                          |   |
|              | Item 12. Security Ownership of Certain  Beneficial Owners and Management                                 |   |
|              | Item 13. Certain Relationships and Related  Transactions                                                 |   |
|              | Item 14. Principal Accounting Fees and  Services                                                         |   |
| **PART IV**  |                                                                                                     |
|              | Item 15. Exhibits, Financial Statement  Schedules and Reports on Form 8-K                      |   |
|              | Signatures                                                                                               |   |

 

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**PART I**

 

**Item1****.  Business**

 

**Overview**

 

AssistedHousing Fund L.P. I (Investor Partnership) is a limited partnership formed onNovember 2, 1987 and organized under the laws of the State of Washington.

 

TheInvestor Partnership’s general partner is Murphey Favre Properties, Inc.,(MFP), a wholly-owned subsidiary of Washington Mutual Bank (WMB), awholly-owned subsidiary of Washington Mutual, Inc.

 

TheInvestor Partnership raised $3,511,000 from the sale of 703 units of limitedpartnership through a public offering completed on April 14, 1989. The InvestorPartnership is solely engaged in the business of real estate investment.  Accordingly, a presentation of informationabout industry segments is not applicable and would not be material to anunderstanding of the Investor Partnership’s business taken as a whole.

 

TheInvestor Partnership invested, as a Limited Partner, in 11 limited partnerships(Property Partnerships) which developed, own, and operate residential apartmentcomplexes located in various locations across the country.  Each apartment complex benefits from severalforms of federal assistance programs and qualifies for low-income housing taxcredits (Tax Credits) pursuant to Section 42 of the Internal Revenue Code(Code).  There are 336 partners in theInvestor Partnership.

 

The investmentobjectives of the Investor Partnership include the following:

 

•                  providelimited partners with tax benefits from investing in the Investor Partnershipin the form of low-income housing tax credits under Section 42 of the Code,

 

•                  preserveand protect the Investor Partnership capital, and

 

•                  realizelong-term capital appreciation in the value of the properties upon the sale orrefinancing of the Property Partnerships properties.

 

Duringthe next year the properties will have completed the 15-year compliance period,thus eliminating the opportunity for an occurrence of a tax credit recaptureevent which may occur when there is a failure to comply with the requirementsof the Internal Revenue Service.  Aseach property completes the compliance period, the Investor Partnership mayexplore opportunities to sell or refinance the properties within the guidelinesallowed and permissions granted by the U.S. Department of Agriculture RuralDevelopment Agency, through its Rural Housing Service (RHS), under its mortgagenote agreements.  The sale of anyproperties will be determined individually on a case-by-case basis, and MFPcannot assure you that it will sell any of the properties, or if MFP does sellany of the properties, that the Investor Partnership will realize anymeaningful profit as a result of the sale.

 

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**PropertyPartnership****s**

 

TheProperty Partnerships own rental properties consisting of apartment projects occupiedby low- and moderate-income tenants. Duration of leases for occupancy in the properties is generally 12months.

 

Thefollowing table provides information regarding the Property Partnerships andtheir locations:

 
| **Property Partnership** |   | **Location**           |   | **Date  Interest Acquired** |   | **Number of  Apt. Units** |
|--------------------------|--------|------------------------|--------|-----------------------------|--------|---------------------------|
| 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                       |

Forinformation regarding placed in service dates, please see Schedule III.

 

Allof the projects owned by the respective Property Partnerships were financed andconstructed under Section 515 of the National Housing Act, as amended, and areadministered by RHS.  Under this RHSprogram, the Property Partnerships provide affordable housing to tenantssubject to regulation by RHS as to rental charges and operating methods.  Lower rental charges to tenants are recoveredby the respective Property Partnerships through an interest reduction programwhich reduces the effective interest rate over the lives of the respectivemortgages to 1 percent and a rental assistance program whereby RHS pays therespective Property Partnerships for a portion of qualified tenant rents.

 

EachProperty Partnership has as its Developer General Partner (DGP), one or moreindividuals or an entity not affiliated with the Investor Partnership orMFP.  In accordance with the PropertyPartnership agreements under which such entities are organized, the InvestorPartnership depends on the DGPs for the management of each PropertyPartnership.  See Management’sDiscussion and Analysis of the Financial Condition and Results of Operations inItem 7 for additional information regarding the Property Partnerships.  As of December 31, 2003, the PropertyPartnerships and their DGPs were as follows:

 
| **Property Partnership** |                                                                                         | **Developer  General Partner** |                                                            |
|--------------------------|----------------------------------------------------------------------------------------------|--------------------------------|-----------------------------------------------------------------|
|                     |                                                                                         |                           |                                                            |
| 1.                       | Fairview  Apartments Company Limited  Partnership (Fairview)                                 |                           | Rural  Housing Corporation                                      |   |
|                     |                                                                                         |                           |                                                            |   |
| 2.                       | Ionia  Limited Dividend Housing  Association Limited  Partnership (Ionia)                    |                           | Rural  Housing Corporation                                      |   |
|                     |                                                                                         |                           |                                                            |   |
| 3.                       | Logan  Apartments Company Limited  Partnership (Logan)                                       |                           | Rural  Housing Corporation  Thomas R. Runquist  Arthur H. Winer |   |
|                     |                                                                                         |                           |                                                            |   |
| 4.                       | Rolling  Brook II Limited Dividend  Housing Association Limited  Partnership (Rolling Brook) |                           | Rural  Housing Corporation                                      |   |

 

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| **Property Partnership** |                                                                                       | **Developer  General Partner** |                                   |
|--------------------------|--------------------------------------------------------------------------------------------|--------------------------------|----------------------------------------|
|                     |                                                                                       |                           |                                   |
| 5.                       | Wexford  Manor Limited Dividend  Housing Association Limited  Partnership (Wexford)        |                           | Rural  Housing Corporation             |   |
|                     |                                                                                       |                           |                                   |   |
| 6.                       | Blue Heron  Apartment Associates  Limited Partnership (Blue Heron)                         |                           | Dujardin  Development Co.              |   |
|                     |                                                                                       |                           |                                   |   |
| 7.                       | Glenwood  Apartment Associates Limited  Partnership (Glenwood)                             |                           | Dujardin  Development Co.              |   |
|                     |                                                                                       |                           |                                   |   |
| 8.                       | Pacific  Place Apartment Associates  Limited Partnership (Pacific Place)                   |                           | Dujardin  Development Co.              |   |
|                     |                                                                                       |                           |                                   |   |
| 9.                       | Cove Limited  Dividend Housing  Association Limited Partnership (Cove)                     |                           | Kenneth  & Lowell Werth            |   |
|                     |                                                                                       |                           |                                   |   |
| 10.                      | Washington  Street Limited Dividend  Housing Association Limited  Partnership (Washington) |                           | Kenneth  & Lowell Werth            |   |
|                     |                                                                                       |                           |                                   |   |
| 11.                      | Fayette  Hills Limited Partnership  (Fayette)                                              |                           | LeRoy  Eslinger and  Douglas E. Pauley |   |

 

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

 

**Regulatory Compliance and Liquidity**

 

Eachof the Property Partnerships has received an allocation of Tax Credits.  In general, the Tax Credit runs for tenyears from the date the property is placed in service.  The required holding period (CompliancePeriod) of the properties is 15 years. During these 15 years, the properties must satisfy rent restrictions,tenant income limitations and other requirements, as promulgated by theInternal Revenue Service, in order to maintain eligibility for the Tax Creditsat all times during the Compliance Period. Once a Property Partnership has become eligible for Tax Credits, it maylose such eligibility and suffer an event of recapture if its property fails toremain in compliance with the requirements. To date, none of the Property Partnerships has suffered an event of recaptureof Tax Credits. In addition, each of the properties must comply with theregulations of RHS to meet certain obligations of the mortgage notes held byRHS with respect to each of the properties.

 

In2003, reserve account deposits of Fairview, Logan, Rolling Brook and Wexfordfell short of the amounts required by RHS. In addition, Logan was $10,150 in arrears for property taxes due in 2002and $20,359 in arrears for property taxes due in 2003, which are violations ofRHS regulations.  Cove had overdueproperty taxes amounting to $1,138 at December 31, 2002 but was current atDecember 31, 2003.  Those PropertyPartnerships were in violation of RHS requirements and mortgage loan covenantsduring the year.  As a result ofviolations of RHS regulations in 2000 and 2001, RHS issued a Letter ofAcceleration on the mortgage note on the Logan property on August 29,2001.  However, RHS suspended furtherproceedings on October 11, 2001, based on preliminary agreements reached withthe Logan DGPs and the Logan property management agent.

 

During2003, RHS did not take action against any of the Property Partnerships thatwere not in compliance with its regulations. While RHS has not pursued any further action against Logan or initiatedany action against Cove with respect to its property taxes, we cannot assureyou that RHS will not take action against the Property

 

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Partnershipswhich are not in compliance with applicable regulations.  This could result in acceleration of aProperty Partnership’s mortgage note and ultimately in foreclosure on itsproperty.  The foreclosure on any of theproperties might result in the complete loss of that Property Partnership’sinvestment and might lead to a tax recapture event with respect to thatproperty, which would have a material adverse effect on the financial conditionof the Investor Partnership.

 

Eachof the Property Partnerships tries to maintain compliance with all of theapplicable regulations and each of those Property Partnerships that are not incompliance are taking steps to remedy their respective situations.  However, we cannot provide assurance thatall of the Property Partnerships will remain in compliance with all applicableregulations.  Accordingly, we cannot assureyou that RHS will not foreclose against any of the properties or that a taxrecapture event with respect to any of the properties will not occur.

 

**Item2****.  Properties**

 

TheInvestor Partnership owns limited partnership interests in the 11 Property Partnershipswhich own and operate properties, all of which benefit from some form offederal assistance program and which qualify for the Tax Credits added to theCode by the Tax Reform Act of 1986.

 

EachProperty Partnership has received an allocation of federal low-income housingtax credits under Section 42 of the Internal Revenue Code, administered by therespective state allocating agency. Under this program, housing provided by each Property Partnership issubject to additional monitoring of tenant eligibility by the respective stateallocating agency.

 

Theindividual Property Partnerships have loan agreements with and mortgage notesheld by RHS.  All mortgage notes have amaturity of 50 years and bear stated interest rates between 8.75% and 10.75%and have an effective interest rate of approximately 1% resulting fromparticipating in the RHS interest reduction program.  The mortgage notes are secured by the real estate, rents and anyprofits of the Property Partnerships.

 

Foradditional information regarding the properties of the Property Partnerships,please see Item 1.  Business—PropertyPartnerships.

 

**Item3****.  LegalProceedings**

 

In2001 and 2000, Arthur H. Winer (Winer), a DGP of Logan, did not comply with RHSregulations in handling project cash. This non-compliance was reported to appropriate authorities in2001.  Winer made multiple unauthorizedwithdrawals of project cash totaling $9,000 and $15,079, for personalbusiness.  Further, project bankaccounts, were also pledged.  As ofDecember 31, 2003 and 2002, pledged funds totaled $ 61,146 and $ 60,131,respectively.  As a result, RHS issued aLetter of Acceleration on the mortgage note on the Logan property on August 29,2001.  The mortgage note balance totaled$984,306 at December 31, 2003.  RHS suspendedfurther proceedings on October 11, 2001, based on preliminary agreementsreached with Logan’s other DGPs and the Logan property management agent.

 

OnFebruary 19, 2002, Winer filed a Chapter 7 Petition in Bankruptcy in the U.S.Bankruptcy Court for the Southern District of West Virginia, in Charleston, WV,triggering the “automatic stay” under the Bankruptcy Code, which precluded allactions to collect Winer debts, absent approval of the Bankruptcy Court,including the unauthorized withdrawals of project cash and pledging of projectbank accounts mentioned above.  Amongthese debts are funds from Logan totaling approximately $84,000 (the LoganDebts), comprised of operating and reserve account funds of approximately$60,000, tenant security deposit funds of approximately $9,000, and other fundsof approximately $15,000 that Winer used for personal business.  MFP, general partner of the InvestorPartnership, through outside bankruptcy counsel, and on behalf of Logan, fileda creditor’s claim against and also filed a Complaint to DetermineDischargeability of Debt and for Judgment to protect the claim for Logan debtfrom being dischargeable and to obtain a judgment against Winer for the amountof the creditor’s claim.  Winer filed anAnswer to the Complaint contesting its assertions.  The U.S. Trustee filed a Motion to Sell Personal Property Freeand Clear of All Liens and Encumbrances and to Allow Expenses (Trustee’sMotion) seeking, in part, to sell Winer’s partnership interest in Logan, freeof all liens and encumbrances, to Buckeye Community Hope Foundation, an Ohionon-profit corporation (Buckeye).  TheInvestor Partnership initially prepared and filed an

 

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Objectionto the Trustee’s Motion, but as result of further research and discussions, itwithdrew its Objection.  A hearing onthe Trustee’s Motion was scheduled for May 16, 2003, but was continued toAugust 15, 2003.

 

OnSeptember 23, 2003 (to be effective no earlier than October 3, 2003),the U.S. Bankruptcy Court (S.D. WV) signed an Order Granting Trustee’s MotionTo Sell [Etc.] Winer’s interest in Logan to Buckeye.  Upon completion of the sale (anticipated during the secondquarter of 2004), Buckeye will become a DGP in Logan and it will restore andreplenish assets misappropriated by Winer.

 

TheInvestor Partnership also filed a Motion for Summary Judgment (SJ Motion)against Winer, which was later modified, asking the Court to decide thequestion of the non-dischargeability of Winer’s debt to MFP based on thepleadings and evidence currently before it. No response to the Motion was received from the Petitioner.  The matter is pending awaiting thecompletion of the sale of Winer's interest in Logan to Buckeye.

 

TheInvestor Partnership also sent a demand letter to Thomas Runquist (Runquist)and Rural Housing Corporation (RHC), the other DGPs of Logan, requiring thatRunquist and RHC, who are jointly liable for the actions of Winer, reimburseLogan for its damages and costs sustained as a result of Winer’s improperactions.  A written response to thedemand letter was received from counsel for Runquist and RHC, acknowledging thedemand but declining to reimburse Logan for Winer’s improper actions.  The Investor Partnership will reply to theRunquist/RHC response letter after completion of the sale of Winer's interestsin Logan to Buckeye and Buckeye's replenishment of the assets of Logan taken byWiner.

 

Webelieve the claims by AHF and MFP are meritorious and that the cash balances ofLogan will be restored as a result of these claims.  However, litigation and legal disputes are inherentlyuncertain.  We cannot guarantee that AHFor MFP will prevail in their efforts, if the cash balances of the Loganproperty will be restored or if any cash will be recovered.  Any cash shortfalls at Logan that willrequire replenishment by the Investor Partnership will have an adverse effecton its financial position.  However, wecannot assure you that we will be successful in these efforts, which could havean adverse effect on the Logan Property Partnership and, as a result, theInvestor Partnership.

 

**Item4****.  Submissionof Matters to a Vote of Security Holders**

 

None

 

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**PART II**

 

**Item5****.  Market forthe Registrant’s Common Equity and Related Securityholder Matters**

 

TheRegistrant’s securities consist of 703 units of Limited Partnership Interest(Units), originally valued at $5,000 per unit. There is no market for the Units, and it is not anticipated that anypublic market is likely to develop in the future.  The Units may only be sold, assigned, exchanged or otherwisetransferred upon compliance with the terms of the Limited PartnershipAgreement.  As of the date of filing ofthis report, the Partnership has 335 limited partners and one general partner.

 

ThePartnership has not made any distributions to holders of the Units in 2001,2002 and 2003 and does not anticipate making any significant distributions inthe future.

 

**Item6.****  SelectedFinancial Data**

 

Thefollowing selected consolidated financial data should be read in conjunctionwith “Management’s Discussion and Analysis of Financial Condition and Resultsof Operations,” the Consolidated Financial Statements and Notes thereto andother financial information included elsewhere in this report.

 
|                                        |   | **Year Ended** |       | **Year Ended** |   | **Year Ended** |   | **Year Ended** |       | **Year Ended** |   |
|---------------------------------------------|--------|----------------|------------|----------------|--------|----------------|--------|----------------|------------|----------------|--------|
|                                        |   | **12/31/03**   |       | **12/31/02**   |   | **12/31/01**   |   | **12/31/00**   |       | **12/31/99**   |   |
| Rental  Revenue                             |   | $              | 1,722,508  |           | $      | 1,652,137      |   | $              | 1,608,923  |           | $      | 1,586,293 |   | $ | 1,540,441 |   |
| Interest  Revenue                           |   | 7,300          |       | 13,752         |   | 17,860         |   | 25,085         |       | 24,068         |   |
| Income  (Loss)                              |   | (634,318       | )          | (570,606       | )      | (518,516       | )      | (457,473       | )          | (513,222       | )      |
| Income  (Loss) Per Limited Partnership Unit |   | (902           | )          | (812           | )      | (738           | )      | (651           | )          | (730           | )      |
| Total Assets                                |   | 9,188,337      |       | 9,802,220      |   | 10,410,686     |   | 10,933,585     |       | 11,431,980     |   |
| Mortgage  Notes  Payable                    |   | $              | 12,215,065 |           | $      | 12,257,788     |   | $              | 12,296,564 |           | $      | 12,287,154 |   | $ | 12,319,268 |   |

 

**Item7****:  Management’sDiscussion and Analysis of Financial Condition and Results of Operations**

 

**Cautionary Statements**

 

This sectioncontains forward-looking statements, within the meaning of the PrivateSecurities Litigation Reform Act of 1995, which are not historical facts andpertain to the Investor Partnership’s future operating results.  The Investor Partnership intends suchforward-looking statements to be covered by the safe harbor provisions forforward-looking statements and is including this statement for purposes ofcomplying with these safe harbor provisions. These forward-looking statements include, but are not limited to,statements about the Investor Partnership’s plans, objectives, expectations andintentions and other statements contained in this report that are nothistorical facts.  When used in thisreport, the words “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,”“estimates,” or words of similar meaning, or future or conditional verbs suchas “will,” “would,” “should,” “could” or “may” are generally intended toidentify forward-looking statements.

 

Forward-lookingstatements provide the Investor Partnership’s expectations or predictions offuture conditions, events or results. They are not guarantees of future performance.  By their nature, forward-looking statements are subject to risksand uncertainties.  These statementsspeak only as of the date they are made. The Investor Partnership does not undertake to update forward-lookingstatements to reflect the impact of circumstances or events that arise afterthe date the forward-looking statements were made.  There are a number of factors, many of which are beyond theInvestor Partnership’s control that could cause actual conditions, events orresults to differ significantly from those described in the forward-lookingstatements.  Some of these factors areas follows:

 

•                  General businessand economic and real estate conditions may significantly affect the InvestorPartnership’s earnings;

 

•                  Our ability toeffectively manage or predict occupancy levels could adversely affect ourearnings.

 

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**Results of Operations**

 

Occupancy levels at theProperty Partnerships are monitored on a monthly basis and are one of the keyoperating factors for the Property Partnerships.   At December 31, 2003, three Property Partnerships were 100% occupied,six were in the 90% to 99% occupancy range, and two were in the 80% to 89%range.  There was no change fromDecember 31, 2002 occupancy levels. The lowest occupancy level for both yearswas 88%.

 

On a consolidated basisfor the Investor Partnership and its Property Partnerships, net loss for 2003,2002 and 2001 totaled $634,318, $570,606 and $518,516, respectively.  The net loss experienced in 2003 was 11.2%higher than that recorded in 2002. The net loss for 2002 was 10.1 % greaterthan that of 2001.  Net loss beforedepreciation for 2003 was $28,477, while net income before depreciation for2002 and 2001 was $29,878 and $70,293 with depreciation expense of $605,841,$600,484 and $589,439 in each of the same respective years.

 

Revenue totaled$1,797,354, $1,734,730 and $1,696,592 in 2003, 2002 and 2001,respectively.  The year-over-yearrevenue increase was 3.6% for 2003 and 2.2% for 2002.  During the years ended December 31, 2003, 2002 and 2001, rentalassistance revenue from RHS totaled $617,092, $554,587 and $508,019representing 36%, 34% and 32% of rent revenue, respectively.

 

Rental operatingexpenses for 2003, 2002 and 2001 were $2,379,192, $2,280,967 and $2,204,887,respectively, and represented year-over-year increases of 4.3% for 2003 and3.5% for 2002.  In 2003, the expense categoryexperiencing the largest increase was utilities which increased byapproximately $49,458 or 17.03% over 2002. This was due primarily to increase in water sewerand electric costs. Logan and Fayette had water leaks that contributed to theincrease in costs that were discovered and repaired in 2003.  Insurance increased in both 2003 and 2002reflecting higher insurance rates resulting from the September 11, 2001tragedy.

 

Increasing losses fromoperations amounted to $581,838, $546,237 and $508,295 for 2003, 2002 and 2001,respectively, as operating expense growth outpaced revenue growth in the sameperiods.  There can be no assurancesthat these financial results will improve. This combined with the liquidity issues at certain of the PropertyPartnerships (see Liquidity and Capital Resources) may affect the long termviability of the Property Partnerships.

 

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**Liquidity and Capital Resources**

 

AtDecember 31, 2003, the Investor Partnership’s operating cash totaled $5,700 andthe Property Partnerships’ operating cash totaled $177,487 for a combined totalof $183,187.  At December 31, 2002, thecash balance of $166,278 was comprised of $27,368 in the Investor Partnershipand $138,910 in the operating accounts of the Property Partnerships.

 

TheInvestor Partnership’s primary source of cash is distributions received fromthe Property Partnerships.  In 2003, theInvestor Partnership received cash distributions of $8,678 as compared to$10,746 in 2002.

 

Consolidatedoperational cash flows increased from $14,526 in 2002 to $43,466 in 2003.  Achieving positive operational cash flowcontinued to be an issue for a few of the Property Partnerships.  For 2003, two properties of the PropertyPartnerships recorded operational cash flow deficits compared with threeproperties in 2002.  Thoseproperties with negative cash flows in 2003 were Fairview and RollingBrook.  Seven of the 11 PropertyPartnerships experienced operating cash flows below those generated in 2002.

 

At December 31, 2003,Logan was $30,509 in arrears for property taxes due in 2003 and 2002.  While Cove and Washington Street made theirrequired reserve deposits in 2003, they are cumulatively behind $88,635 and$9,844, respectively, on their required reserve account balances.  The Cove and Washington Street reserveaccount balances at December 31, 2003 total $21,449 and $30,991,respectively.  The Cove and WashingtonStreet reserve account balances at December 31, 2003 may not be sufficient tofund necessary capital expenditures in the near and longer-term.

 

In violation of RHSregulations and mortgage loan covenants, the 2003 reserve account deposits ofFairview, Logan, Rolling Brook and Wexford fell short of the required amountsfor the year.  At December 31, 2003, thetotal reserve deposit shortfall for the 11 Property Partnerships amounted toapproximately $8,956.  During 2003 RHSdid not take action against any of the Property Partnerships that were not incompliance.

 

The precedingdescription of unfavorable liquidity conditions at some of the PropertyPartnerships at December 31, 2003 may indicate future difficulty in meetingcash requirements and/or action by RHS which would be unfavorable to thecontinued operation of the Property Partnerships.  All of the Property Partnerships made the required loan principaland interest payments due on their mortgage notes.

 

WhileRHS has not pursued any further action against Logan or initiated any actionwith respect to its overdue property taxes, there can be no assurance that RHSwill not take action against the Property Partnerships which are not incompliance with applicable regulations. This could result in acceleration of a Property Partnership’s mortgagenote and ultimately in foreclosure on its property.

 

Witheach of the properties having been in service for at least ten years, it isanticipated that funds will be required to maintain the condition of theproperties at a level which will provide adequate living conditions to thecurrent tenants and to attract future tenants, as well as maintain the value ofthe properties.  The funding for theseexpenditures must come from either operating cash flows or from authorizedreserve account withdrawals.  There isno assurance that these sources will be adequate to meet the maintenancerequirements of the properties.  Loganapplied to Rural Development for a Work-out Plan and Proposed RentIncrease.  However, RHS rejected thework out plan and proposed rent increase based on the lack of proper propertymaintenance.

 

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**RegulatoryRestrictions**

 

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

 

The tenants of all theproperties 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 incomerequirements, tenants must not earn more than 60% of the median income for theareas in which the properties are located. Seven of the 11 properties are further restricted to renting apartmentunits only to senior citizens.

 

Additional restrictionsinclude:

 

•                  propertiescannot be sold without prior approval of RHS,

 

•                  propertiescannot make more than an 8% cash distribution annually to its owner (asdescribed in Note 5 in the accompanying notes to consolidated financial statements),

 

•                  andproperties must remain under the low-income housing tax credit program for 15years to avoid any recapture of the low-income housing tax credits.  The 15 year compliance period for eachProperty partnership will end in the next one to two years.

 

Furthermore, pursuant toRHS loan agreements, RHS may refuse prepayment of the loans and require theproperties be used for the purpose of providing housing to eligible tenants fora minimum period of 20 years.

 

**Inflation**

 

Operating expenses andrental revenues of each property are subject to inflationary factors.  Low rates of inflation could result inrental revenues remaining constant or increasing at slower rates than inperiods of high inflation.  High ratesof inflation raise the operating expenses of the properties, and to the extentthe increased operating expenses are not passed on to the tenants by rentalincreases, the properties’ operations could be adversely affected. During thethree year period of 2001 through 2003 inflation has not been a significantfactor for the Property Partnerships’ operations.

 

**Tax Credits**

 

At December 31, 2003,2002 and 2001, tax credits equal to 0.06%, 0.06% and 0.22%, respectively, ofthe limited partners’ capital contributions have been generated.

 

**SubsequentEvents**

 

Noevents occurred subsequent to December 31, 2003 that are required to bedisclosed.  See “Item 3. LegalProceedings”

 for events expected to occur in 2004.

 

9

----

 

**Factors Affecting Results of Operations**

 

The operation of theProperty Partnerships will continue to be subject to competition from existingand future apartment complexes in the same geographical areas where theirproperties are located.  The successfuloperation of the Investor Partnership will depend on outside factors, most ofwhich are beyond the control of the Investor Partnership and which cannot bepredicted at this time. Such factors include general economic and real estatemarket conditions, both on a national basis and in those areas where theproperties are located; real estate tax rates; operating expenses; energy costsand government regulations.  Inaddition, other risks inherent in real estate investment may influence theultimate success of the Investor Partnership, including (1) possible reductionin rental incomes due to an inability to maintain high occupancy levels; (2)possible adverse changes in general economic conditions and adverse localconditions, such as competitive overbuilding, a decrease in employment or adversechanges in the real estate laws, including building codes; and (3) possiblefuture adoption of rent control legislation which would not permit increasedcosts to be passed onto the tenants in the form of rent increases or whichsuppresses the ability of the Property Partnerships to generate positiveoperating cash flows.  Since all of theProperty Partnerships benefit from some form of federal government assistance,the Investor Partnership is subject to the inherent risks in that areaincluding decreased subsidies, difficulties in finding suitable tenants andobtaining permission for rent increases. In addition, any Tax Credits allocated to limited partners of theInvestor Partnership are subject to recapture to the extent that a PropertyPartnership or any portion thereof ceases to qualify for the Tax Credits.  Other changes in federal and state incometax laws affecting real estate ownership or limited partnerships could have amaterial and adverse affect on the business of the Investor Partnership.

 

**Item 7A****. Quantitative and Qualitative DisclosuresAbout Market Risks**

 

The management of theInvestor Partnership does not believe that the operation of the InvestorPartnership and the Property Partnerships are materially affected by interestrates or other financial market risks at this time.  In the event of proposed future sale of any of the PropertyPartnerships’ properties, mortgage interest rates and availability of financingto potential buyers may have an impact on the selling opportunity.

 

**Item8****. Financial Statements and Supplementary Data**

 

The financial statementsof Assisted Housing Fund L.P. I as of December 31, 2003, 2002 and 2001,together with the independent auditors’ reports thereon, are filed herewith inPart IV, Item 15 of this Form 10-K.

 

**Item9****.  Changes inand Disagreements with Accountants on Accounting and Financial Disclosure**

 

None.

 

**Item 9A****. Controls and Procedures**

 

**DisclosureControls and Procedures**

** **

The InvestorPartnership’s management, under the direction of the Investor Partnership’sPresident and Treasurer, has evaluated the effectiveness of the InvestorPartnership’s disclosure controls and procedures as of the end of the periodcovered by this report.  Based on suchevaluation, the Investor Partnership’s President and Treasurer have concludedthat, as of the end of such period, the Investor Partnership’s disclosurecontrols and procedures are effective in recording, processing, summarizing andreporting, on a timely basis, information required to be disclosed by theInvestor Partnership in the reports that it files or submits under theSecurities Exchange Act of 1934.

 

The InvestorPartnership reviews and evaluates the design and effectiveness of itsdisclosure controls and procedures on an ongoing basis and improves its controlsand procedures over time and corrects any deficiencies that it maydiscover.  While the InvestorPartnership believes the present design of its disclosure controls andprocedures is effective, future events affecting the Investor Partnership’sbusiness may cause it to modify its disclosure controls and procedures.

 

**InternalControl Over Financial Reporting**

** **

There have notbeen any changes in Investor Partnership’s internal control over financialreporting during the fourth quarter of 2003 that have materially affected, orare reasonably likely to materially affect, the Investor Partnership’s internalcontrol over financial reporting.

 

**CriticalAccounting Policies**

 

ThePreparation of financial statements in accordance with accounting principlesgenerally accepted in the United States of America requires management to makea number of judgments, estimates and assumptions that affect the reportedamount of assets, liabilities, income and expenses in our ConsolidatedFinancial Statements and accompanying notes. We believe that the judgments, estimates and assumptions used in thepreparation of our Consolidated Financial Statements are appropriate given thefactual circumstances as of December 31, 2003.

 

The criticalaccounting policies are described in greater detail in the Note 1 to theConsolidated Financial Statements – Nature of Business and Summary ofSignificant Accounting Policies.

 

10

----

 

**PART III**

 

**Item10****. Directors and Executive Officers of the Registrant**

 

MFP is the generalpartner of the Investor Partnership. Assisted Housing Fund L.P.I. has no employees.

 

**Item11****. Executive Compensation**

 

Not applicable.

 

**Item12****. Security Ownership of Certain Beneficial Owners andManagement**

 
| **Title of  Class** |   | **Name and  Address of  Beneficial  Owner** |   | **Amount and  Nature of  Beneficial  Ownership** |   | **Percent  of Class** |   |
|---------------------|--------|---------------------------------------------|--------|--------------------------------------------------|--------|-----------------------|--------|
|                |   |                                        |   |                                             |   |                  |   |
| General             |   | Murphey  Favre                              |   |                                             | (1)    | 100                   | %      |
| Partner’s      |   | Properties,  Inc.                           |   |                                             |   |                  |   |
| Interest            |   | Suite 1330                                  |   |                                             |   |                  |   |
|                |   | 1301 Fifth  Avenue                          |   |                                             |   |                  |   |
|                |   | Seattle,  WA  98101                    |   |                                             |   |                  |   |

 

----

(1) The General Partner’sinterest is owned of record and beneficially by Murphey Favre Properties, Inc.Its capital interest as of December 31, 2003 is ($78,311).

 

**Item13.****Certain Relationships and Related Transactions**

 

The PropertyPartnerships have entered into some agreements with their respective DGPs oraffiliates under which the DGPs or affiliates receive compensation from,perform services for, or make loans to the Property Partnerships.  For specific information regarding thesearrangements, please see Note 2 of the Notes to Consolidated FinancialStatements, which are filed elsewhere in this report.

 

**Item 14****. Principal Accounting Fees and Services**

 

Total fees paid to ourauditors’ firm were comprised of the following:

 
|                    |   | **Year Ended  12/31/03** |   | **Year Ended  12/31/02** |   | **Year Ended  12/31/01** |   |
|-------------------------|--------|--------------------------|--------|--------------------------|--------|--------------------------|--------|
| Audit Services          |   | $                        | 42,500 |                     | $      | 25,150                   |   | $ | 20,152 |   |
| Audit Related Services  |   | 6,000                    |   | 6,302                    |   | 2,000                    |   |
| Tax Compliance Services |   | 5,000                    |   | 5,000                    |   | 5,000                    |   |
| Total                   |   | $                        | 53,500 |                     | $      | 36,452                   |   | $ | 27,152 |   |

 

11

----

 

**PART IV**

 

**Item15****. Exhibits, Consolidated Financial Statements,Schedules and Reports on Form 8-K**

 

**(a)  1. The following consolidated financialstatements of Assisted Housing Fund L.P. I and subsidiaries are incorporated byreference in Part II and are attached as pages 13 to 29.**

 
| Independent  Auditor’s Report                                                                                        |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                      |   |
| Consolidated  Balance Sheets as of December 31, 2003 and 2002                                                             |   |
|                                                                                                                      |   |
| Consolidated Statements of Operations for  each of the years ended  December 31, 2003, 2002,and 2001                      |   |
|                                                                                                                      |   |
| Consolidated Statements of Partners’ Equity  (Deficit) for each of  the years ended December 31, 2003, 2002 and 2001 |   |
|                                                                                                                      |   |
| Consolidated Statements of Cash Flows for  each of the years ended  December 31, 2003, 2002 and 2001                      |   |
|                                                                                                                      |   |
| Notes to Consolidated Financial Statements  for each of the years ended  December 31, 2003, 2002 and 2001                 |   |
|                                                                                                                      |   |
| **2.  Consolidated financial  statement schedules**                                                                  |   |
|                                                                                                                      |   |
| Independent  Auditor’s Report on Schedules                                                                           |   |
|                                                                                                                      |   |
| Schedule III  – Real Estate and Accumulated Depreciation                                                             |   |

 

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

 

12

----

 

**3. Exhibits:**

 
|   | 3      |   | Agreement of  Limited Partnership Assisted Housing Fund L.P. I (incorporated by reference  to Appendix C to the Registrant’s Registration Statement on Form S-11 |
|--------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                                  |   |   |
|   | 4      |   | Certification  of Unit of Limited Partnership (incorporated by reference to Appendix C to  the Registrant’s Registration Statement on Form S-11                  |
|   |   |   |                                                                                                                                                                  |   |   |
|   | 31(a)  |   | Certification  of the President of the General Partner Pursuant to Section 302 of the  Sarbanes- Oxley Act of 2002 (filed herewith)                                   |
|   |   |   |                                                                                                                                                                  |   |   |
|   | 32(b)  |   | Certification  of the Principal Accounting Officer of the General Partner Pursuant  to Section 302 of the Sarbanes-Oxley Act  of 2002 (filed herewith)           |
|   |   |   |                                                                                                                                                                  |   |   |
|   | 32(a)  |   | Certificate  of the President of the General Partner Pursuant to 18 U.S.C. Section 1350  (filed herewith)                                                             |
|   |   |   |                                                                                                                                                                  |   |   |
|   | 32(b)  |   | Certificate  of the Principal Accounting Officer of the General Partner Pursuant to 18  U.S.C. Section 1350 (filed herewith)                                          |

 

(b)No reports on Form 8K werefiled during 2003.

 

13

----

 

**SIGNATURES**

 

Pursuant to therequirements of Section 13 or 15(d) of the Securities and Exchange Act of 1934,the Registrant has duly caused this report to be signed on its behalf by theundersigned, thereunto duly authorized on March 30, 2004.

 

 
|   | **ASSISTED HOUSING FUND L.P. I** |
|--------|----------------------------------|
|   |                             |   |
|   |                             |   |
|   | By:                              | Murphey  Favre Properties, Inc. |
|   |                             | Its General  Partner |
|   |                             |   |
|   |                             |   |
|   | By:                              | /s/ Robert  K.  Stump |   |
|   |                             | Robert  K.  Stump |
|   |                             | Its  President |

 

Pursuant to therequirements of the Securities and Exchange Act of 1934, this report has beensigned below by the following persons on behalf of the Registrant and in thecapacities indicated on March 30, 2004.

 
| By:    | Murphey  Favre Properties, Inc.              |
|--------|----------------------------------------------|
|   |                                         |
|   |                                         |
| By:    | /s/ Brett J.  Atkinson                       |   |
|   | Brett J.  Atkinson                           |
|   | Its  Treasurer, Principal Accounting Officer |
|   |                                         |
|   |                                         |
| By:    | /s/ Edward  S. Robertson                     |   |
|   | Edward S. Robertson                          |
|   | Its Director                                 |
|   |                                         |
|   |                                         |
| By:    | /s/  Catharine E. Killien                    |   |
|   | Catharine E. Killien                         |
|   | Its Director                                 |
|   |                                         |
|   |                                         |
| By:    | /s/ David G.  Murphy                         |   |
|   | David G. Murphy                              |
|   | Its Director                                 |
|        |                                              |  |  |  |  |

 

14

----

 

 

ASSISTED HOUSING FUND L.P. IAND SUBSIDIARIES

 

CONSOLIDATED FINANCIAL STATEMENTSANDINDEPENDENT AUDITOR’S REPORT

 

FOR THE YEARS ENDED DECEMBER 31,2003, 2002, AND 2001

 

 

15

----

 

CONTENTS

 
| INDEPENDENT AUDITOR’S REPORT |                                                        |
|-----------------------------------|-------------------------------------------------------------|
|                              |                                                        |   |
| FINANCIAL  STATEMENTS:            |                                                        |
|                              |                                                        |   |
|                              | Consolidated Balance Sheets                                 |   |
|                              |                                                        |   |
|                              | Consolidated Statements of Operations                       |   |
|                              |                                                        |   |
|                              | Consolidated Statements of Partners’ Equity  (Deficit) |   |
|                              |                                                        |   |
|                              | Consolidated Statements of Cash Flows                       |   |
|                              |                                                        |   |
|                              | Notes to Consolidated Financial Statements                  |   |

 

16

----

 

**INDEPENDENT AUDITORS’ REPORT**

 

**Partners**

Assisted Housing Fund L.P. I

Seattle, Washington

 

**We have audited the accompanyingconsolidated balance sheets of Assisted Housing Fund L.P. I and itssubsidiaries, as of December 31, 2003 and 2002, and the related consolidatedstatements of operations, partners’ equity (deficit) and cash flows for theyears ended December 31, 2003, 2002 and 2001. These consolidated financial statements are the responsibility of thePartnership’s management.  Ourresponsibility is to express an opinion on these financial statements based onour audits.**

 

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

 

**In our opinion, the consolidatedfinancial statements referred to above present fairly, in all materialrespects, the financial position of Assisted Housing Fund L.P. I and itssubsidiaries, as of December 31, 2003 and 2002, and the results of theiroperations and cash flows for the years ended December 31, 2003, 2002 and 2001,in conformity with accounting principles generally accepted in the UnitedStates of America.**

 

 
| /s/ Blume  Loveridge & Co., PLLC |   |
|--------------------------------------|--------|
| Blume  Loveridge & Co., PLLC     |
| Bellevue,  Washington                |
| March 25,  2004                      |

 

17

----

 

**ASSISTED HOUSING FUND L.P. IAND SUBSIDIARIES**

 

**CONSOLIDATEDBALANCE SHEETS**

 
|                                                       |   | **December  31,** |       |
|------------------------------------------------------------|--------|-------------------|------------|
|                                                       |   | **2003**          |       | **2002** |   |
| **ASSETS**                                                 |   |              |       |   |   |
|                                                       |   |              |       |   |   |
| Rental property and equipment, at cost:                    |   |              |       |   |   |
| Buildings and equipment                                    |   | $                 | 16,055,005 |   | $ | 16,018,401 |   |
| Accumulated depreciation                                   |   | (8,565,223        | )          | (7,959,382 | ) |
|                                                       |   | 7,489,782         |       | 8,059,019 |   |
| Land                                                       |   | 723,111           |       | 723,111 |   |
|                                                       |   | 8,212,893         |       | 8,782,130 |   |
| Cash:                                                      |   |              |       |   |   |
| Rental operation (Note 5)                                  |   | 177,487           |       | 138,910 |   |
| Partnership                                                |   | 5,700             |       | 27,368 |   |
|                                                       |   | 183,187           |       | 166,278 |   |
| Restricted deposits:                                       |   |              |       |   |   |
| Tenant trust - security deposits                           |   | 122,048           |       | 119,646 |   |
| Reserve accounts, partially pledged (Note  3)              |   | 598,343           |       | 651,193 |   |
|                                                       |   | 720,391           |       | 770,839 |   |
| Other assets:                                              |   |              |       |   |   |
| Accounts receivable                                        |   | 32,068            |       | 39,779 |   |
| Accounts receivable - DGP (Note 2)                         |   | 24,079            |       | 24,079 |   |
| Prepaid expenses                                           |   | 15,719            |       | 19,115 |   |
|                                                       |   | 71,866            |       | 82,973 |   |
| **TOTAL ASSETS**                                           |   | $                 | 9,188,337  |   | $ | 9,802,220 |   |
|                                                       |   |              |       |   |   |
| **LIABILITIES**                                            |   |              |       |   |   |
| Mortgage notes payable (Note 4)                            |   | $                 | 12,215,065 |   | $ | 12,257,788 |   |
| Accounts payable                                           |   | 266,284           |       | 259,338 |   |
| Due to affiliates (Note 2)                                 |   | 798,510           |       | 740,768 |   |
| Accrued liabilities                                        |   | 141,530           |       | 111,491 |   |
| Security deposits payable                                  |   | 115,974           |       | 120,483 |   |
| **TOTAL LIABILITIES**                                      |   | 13,537,363        |       | 13,489,868 |   |
|                                                       |   |              |       |   |   |
| Commitments and contingencies (Note 6)                     |   |              |       |   |   |
|                                                       |   |              |       |   |   |
| Minority interests in property partnerships                |   | 361,389           |       | 388,449 |   |
|                                                       |   |              |       |   |   |
| **PARTNERS’ EQUITY (DEFICIT)**                        |   |              |       |   |   |
| Limited partners                                           |   | (4,632,104        | )          | (4,004,129 | ) |
| General partner                                            |   | (78,311           | )          | (71,968 | ) |
|                                                       |   | (4,710,415        | )          | (4,076,097 | ) |
| **TOTAL LIABILITIES AND PARTNERS’ EQUITY  (DEFICIT)** |   | $                 | 9,188,337  |   | $ | 9,802,220 |   |

 

Seeaccompanying notes to consolidated financial statements.

 

18

----

 

**ASSISTED HOUSING FUND L.P. IAND SUBSIDIARIES**

 

**CONSOLIDATEDSTATEMENTS OF OPERATIONS**

 
|                                                           |   | **Years Ended  December 31,** |      |
|----------------------------------------------------------------|--------|-------------------------------|-----------|
|                                                           |   | **2003**                      |      | **2002** |   | **2001** |   |
|                                                           |   |                          |      |   |   |   |   |
| **Revenue:**                                                   |   |                          |      |   |   |   |   |
| Rent                                                           |   | $                             | 1,722,508 |   | $ | 1,652,137 |   | $ | 1,608,923 |   |
| Miscellaneous                                                  |   | 74,846                        |      | 82,593 |   | 87,669 |   |
|                                                           |   | 1,797,354                     |      | 1,734,730 |   | 1,696,592 |   |
|                                                           |   |                          |      |   |   |   |   |
| **Rental operating expenses:**                                 |   |                          |      |   |   |   |   |
| Repairs and maintenance                                        |   | 348,902                       |      | 339,056 |   | 270,029 |   |
| Utilities                                                      |   | 339,954                       |      | 290,497 |   | 303,978 |   |
| General and operating                                          |   | 426,550                       |      | 419,494 |   | 425,722 |   |
| Taxes and insurance                                            |   | 349,903                       |      | 317,002 |   | 297,713 |   |
| Interest                                                       |   | 308,042                       |      | 314,434 |   | 318,006 |   |
| Depreciation                                                   |   | 605,841                       |      | 600,484 |   | 589,439 |   |
|                                                           |   | 2,379,192                     |      | 2,280,967 |   | 2,204,887 |   |
| **Loss from rental operations**                                |   | (581,838                      | )         | (546,237 | ) | (508,295 | ) |
|                                                           |   |                          |      |   |   |   |   |
| **Other income (expense):**                                    |   |                          |      |   |   |   |   |
| Interest earned on partnership cash                            |   | 57                            |      | 96 |   | 335 |   |
| Minority interest in operations                                |   | 26,980                        |      | 26,594 |   | 26,226 |   |
| General and administrative                                     |   | (79,517                       | )         | (51,059 | ) | (36,782 | ) |
|                                                           |   | (52,480                       | )         | (24,369 | ) | (10,221 | ) |
| **Net loss**                                                   |   | $                             | (634,318  | ) | $ | (570,606 | ) | $ | (518,516 | ) |
|                                                           |   |                          |      |   |   |   |   |
| Net loss per unit of limited partnership  interest (703 units) |   | $                             | (902      | ) | $ | (812 | ) | $ | (738 | ) |

 

See accompanying notes toconsolidated financial statements.

 

19

----

 

**ASSISTED HOUSING FUND L.P. IAND SUBSIDIARIES**

 

**CONSOLIDATEDSTATEMENTS OF PARTNERS’ EQUITY (DEFICIT)**

 
|                        |   | **Years Ended  December 31, 2003, 2002 and 2001** |       |
|-----------------------------|--------|---------------------------------------------------|------------|
|                        |   | **Limited  Partners**                             |       | **General  Partner** |   | **Total** |   |
|                        |   |                                              |       |   |   |   |   |
| Profit/loss percentage      |   | 99.0                                              | %          | 1.0 | % | 100.0 | % |
|                        |   |                                              |       |   |   |   |   |
| Balance - January 1, 2001   |   | $                                                 | (2,925,898 | ) | $ | (61,077 | ) | $ | (2,986,975 | ) |
| Net income (loss) for 2001  |   | (513,331                                          | )          | (5,185 | ) | (518,516 | ) |
|                        |   |                                              |       |   |   |   |   |
| Balance - December 31, 2001 |   | (3,439,229                                        | )          | (66,262 | ) | (3,505,491 | ) |
| Net income (loss) for 2002  |   | (564,900                                          | )          | (5,706 | ) | (570,606 | ) |
|                        |   |                                              |       |   |   |   |   |
| Balance - December 31, 2002 |   | $                                                 | (4,004,129 | ) | $ | (71,968 | ) | $ | (4,076,097 | ) |
| Net income (loss) for 2003  |   | (627,975                                          | )          | (6,343 | ) | (634,318 | ) |
|                        |   |                                              |       |   |   |   |   |
| Balance - December 31, 2003 |   | $                                                 | (4,632,104 | ) | $ | (78,311 | ) | $ | (4,710,415 | ) |

 

See accompanying notes toconsolidated financial statements.

 

20

----

 

**ASSISTED HOUSING FUND L.P. IAND SUBSIDIARIES**

 

**CONSOLIDATEDSTATEMENTS OF CASH FLOWS**

 
|                                                                         |   | **Years  Ended December 31,** |     |
|------------------------------------------------------------------------------|--------|-------------------------------|----------|
|                                                                         |   | **2003**                      |     | **2002** |   | **2001** |   |
|                                                                         |   |                          |     |   |   |   |   |
| **Cash flows from operating activities:**                                    |   |                          |     |   |   |   |   |
| Net loss                                                                     |   | $                             | (634,318 | ) | $ | (570,606 | ) | $ | (518,516 | ) |
| Adjustments to reconcile net loss to net  cash used in operating activities: |   |                          |     |   |   |   |   |
| Depreciation                                                                 |   | 605,841                       |     | 600,484 |   | 589,439 |   |
| Minority interests in operations                                             |   | (26,980                       | )        | (26,594 | ) | (26,226 | ) |
| Changes in certain assets and liabilities:                                   |   |                          |     |   |   |   |   |
| Accounts receivable                                                          |   | 7,711                         |     | (690 | ) | (9,129 | ) |
| Prepaid expenses                                                             |   | 3,396                         |     | (6,110 | ) | (3,881 | ) |
| Accounts payable                                                             |   | 6,946                         |     | (45,422 | ) | 567 |   |
| Due to affiliates                                                            |   | 57,742                        |     | 55,784 |   | 22,570 |   |
| Accrued liabilities                                                          |   | 30,039                        |     | 8,767 |   | (11,514 | ) |
| Tenant security deposits                                                     |   | (6,911                        | )        | (1,087 | ) | 5,778 |   |
|                                                                         |   |                          |     |   |   |   |   |
| Net cash provided by operating activities:                                   |   | 43,466                        |     | 14,526 |   | 49,088 |   |
|                                                                         |   |                          |     |   |   |   |   |
| **Cash flows from investing activities:**                                    |   |                          |     |   |   |   |   |
| Purchase of depreciable property                                             |   | (36,604                       | )        | (60,086 | ) | (122,055 | ) |
| Decrease in restricted deposits                                              |   | 52,850                        |     | 51,041 |   | 35,743 |   |
|                                                                         |   |                          |     |   |   |   |   |
| Net cash provided (used) in investing  activities:                           |   | 16,246                        |     | (9,045 | ) | (86,312 | ) |
|                                                                         |   |                          |     |   |   |   |   |
| **Cash flows from financing activities:**                                    |   |                          |     |   |   |   |   |
| Minority partners’ capital distributions                                |   | (80                           | )        | (95 | ) | (81 | ) |
| Loan proceeds                                                                |   |                          |     |   |   | 42,917 |   |
| Mortgage principal payments                                                  |   | (42,723                       | )        | (38,776 | ) | (33,507 | ) |
|                                                                         |   |                          |     |   |   |   |   |
| Net cash provided (used) in financing  activities:                           |   | (42,803                       | )        | (38,871 | ) | 9,329 |   |
|                                                                         |   |                          |     |   |   |   |   |
| Net increase (decrease) in cash                                              |   | 16,909                        |     | (33,390 | ) | (27,895 | ) |
|                                                                         |   |                          |     |   |   |   |   |
| Cash - beginning of year                                                     |   | 166,278                       |     | 199,668 |   | 227,563 |   |
|                                                                         |   |                          |     |   |   |   |   |
| Cash - end of year                                                           |   | $                             | 183,187  |   | $ | 166,278 |   | $ | 199,668 |   |
|                                                                         |   |                          |     |   |   |   |   |
| Supplemental disclosure of cash flow  information:                           |   |                          |     |   |   |   |   |
| Cash paid for interest                                                       |   | $                             | 319,338  |   | $ | 315,517 |   | $ | 314,617 |   |

 

See accompanying notes toconsolidated financial statements.

 

21

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**ASSISTED HOUSING FUND L.P. IAND SUBSIDIARIES**

**NOTES TO CONSOLIDATEDFINANCIAL STATEMENTS**

 

**Note 1 – Summary of Significant Accounting Policies**

 

*Nature of Business*

 

Assisted Housing Fund L.P. I (theInvestor Partnership) is a limited partnership which was organized November 2,1987 under the laws of the state of Washington to acquire limited partnershipinterests in other partnerships (the Property Partnerships), each of which hasbeen organized to develop or purchase a low- or moderate-income apartmentproject.  The Investor Partnership’sGeneral Partner is Murphey Favre Properties, Inc. (MFP), which is a wholly-ownedsubsidiary of Washington Mutual Bank (WMB), a wholly-owned subsidiary ofWashington Mutual, Inc.  At December 31,2003, 336 partners held the 703 units of limited partnership interestsoutstanding.

 

The Investor Partnership hasinvested as a limited partner in 11 Property Partnerships.  The developer of each apartment projectserves as the Developer General Partner (DGP) of the respective PropertyPartnership.

 

The properties owned by theProperty Partnerships are located in Michigan, Wisconsin, Ohio, West Virginiaand Washington.  The apartment projectswere financed and constructed under Section 515 of the National Housing Act, asamended (administered by U. S. Department of Agriculture Rural DevelopmentAgency, through its Rural Housing Service (RHS)).  Under this program, the Property Partnerships provide housing tolow- and moderate-income tenants.  Lowerrental charges to tenants are recovered by the Property Partnerships through aninterest reduction program which reduces the effective interest rate over thelives of the mortgages to 1 percent and a rental assistance program whereby RHSpays the Property Partnerships for a portion of qualified tenant rents.  Construction of the apartment projects beganbetween June, 1988 and May, 1990 and rental operations began between April,1989 and January, 1991.

 

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

 

During the years ended December 31,2003, 2002 and 2001, rental revenue from RHS totaled $617,092, $554,877 and$508,019, representing 36%, 34% and 32% of rent revenue, respectively.

 

20

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*Principles of Consolidation*

 

The financial statements includethe financial statements of the Investor Partnership and the following 11Property Partnerships in which it has invested as a limited partner:

 

Fairview Apartments CompanyLimited Partnership (Fairview)

Ionia Limited DividendHousing Association Limited Partnership (Ionia)

Logan Apartments CompanyLimited Partnership (Logan)

Rolling Brook II LimitedDividend Housing Association Limited Partnership (Rolling Brook)

Wexford Manor LimitedDividend Housing Association Limited Partnership (Wexford)

Blue Heron Apartment AssociatesLimited Partnership (Blue Heron)

Glenwood ApartmentAssociates Limited Partnership (Glenwood)

Pacific Place ApartmentAssociates Limited Partnership (Pacific Place)

Cove Limited DividendHousing Association Limited Partnership (Cove)

Washington Street LimitedDividend Housing Association Limited Partnership (Washington)

Fayette Hills LimitedPartnership (Fayette)

 

The financial statements arepresented on a consolidated basis because the Investor Partnership holdsapproximately 99 percent of the profit and loss interests and approximately 55percent of the equity interests in each Property Partnership.  Through an affiliate, who is a SpecialLimited Partner in each of the 11 Property Partnerships, the Investor Partnershipcontrols certain fundamental decisions affecting the operation of the PropertyPartnerships.  These fundamentaldecisions include significant purchases of assets, material borrowings orcreation of liens on the underlying properties, entering into materialcontracts, making tax elections and any act that would cause termination of theProperty Partnership.  All materialinter-partnership transactions and balances have been eliminated.  For the years ended December 31, 2003, 2002and 2001, net losses allocable to the minority partners were $26,980, $26,594and $26,226, respectively.

 

*Method of Accounting*

 

The accrual method of accounting isused for financial statement purposes.

 

*Cost Overruns*

 

The partnership agreements for theProperty Partnerships required the DGP’s to fund cost overruns on thedevelopment of the apartment projects. Such cost overruns, totaling $589,462, have been recorded as minorityinterests in Property Partnerships and have been included in the cost basis ofthe rental property.  All depreciationrelated thereto has been specially allocated to the respective DGP’s.

 

21

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*Depreciation*

 

Depreciation is computed forfinancial statement purposes using the straight-line method over the estimateduseful 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 beenincluded in the financial statements since income or loss of the InvestorPartnership is required to be reported by the respective partners on theirincome tax returns.

 

*Cash Equivalents*

 

For purposes of the statement ofcash flows, the Investor Partnership considers all investment instrumentspurchased with a maturity of three months or less to be cash equivalents.  At December 31, 2003 and 2002, there were nocash equivalents.

 

*Concentration of Credit*

 

The Property Partnerships maintaincash in bank deposit accounts which, at times, may exceed federally insuredlimits.  The Property Partnerships havenot experienced any losses in such accounts. Management believes the Property Partnerships are not exposed to anysignificant credit risk on cash in such bank deposit accounts.

 

*Estimates*

 

The preparation of financialstatements in conformity with accounting principles generally accepted in theUnited States of America requires management to make estimates and assumptionsthat affect certain reported amounts and disclosures.

 

22

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**Note 2 – Transactions with Affiliates**

 

In connection with the acquisitionand development of rental property and the management of both the rentalproperty and the Investor Partnership, the Investor Partnership and PropertyPartnerships have paid or accrued the following amounts to certain affiliates:

 
|                                                                       |   | **Years  Ended December 31,** |   |
|----------------------------------------------------------------------------|--------|-------------------------------|--------|
|                                                                       |   | **2003**                      |   | **2002** |   | **2001** |   |
| Murphey Favre Properties, Inc. –  partnership service fees            |   | $                             | 7,500  |   | $ | 7,500 |   | $ | 7,500 |   |
| Developer general partners and affiliates –  property management fees |   |                          | 95,687 |   | 96,431 |   | 95,718 |   |
| Partnership management fees                                                |   |                          | 2,515  |   | 2,684 |   | 1,765 |   |
| Property management fees payable at 12/31                                  |   |                          | 4,580  |   | 5,610 |   | 15,812 |   |
|                                                                            |        |                               |        |  |  |  |  |  |  |  |

 

Property management fees are paidout of rental operations.  Partnershipfees are payable from future sales of the properties, to the extent they arenot paid from distributions of rental operation cash (see Note 5).

 

Under the terms of managementservices agreements, seven of the 11 Property Partnerships have affiliates ofthe DGP’s which provide management services for the rental properties andreceive compensation for such services in amounts approximating 8.8% of rentalreceipts.  Three of the 11 PropertyPartnerships are co-managed by affiliates of the DGP’s which provide managementservices for the rental properties and receive compensation for such servicesin amounts approximating 2.1% of rental receipts.

 

As of December 31, 2003 and 2002,related party payables consisted of the following:

 
|                            |      | **2003** |    | **2002**    |       |
|---------------------------------|-----------|----------|---------|-------------|------------|
| Advances from DGPs              |      | $        | 201,784 |        | $          | 201,784 |   |
| Program management fees         |      | 326,726  |    | 326,726     |       |
| Partnership services fees       |      | 67,500   |    | 60,000      |       |
| Advances from MFP               |      | 201,525  |    | 151,283     |       |
| Advances from affiliates of DGP |      | 975      |    | 975         |       |
|                            | **TOTAL** |     | **$**   | **798,510** | ** ** | **$** | **740,768** | ** ** |
|                                 |           |          |         |             |            |  |  |  |

 

Advances from DGPs amounted to$201,784 at December 31, 2003. Terms of RHS Loan Agreements require each DGP toprovide interest-free advances of stipulated amounts as initial operatingcapital to the Property Partnerships. The balance includes $152,107 of such advances at December 31, 2003 and2002.  In addition, the balance includesDGP advances of $35,468 for land improvements and $14,209 to fund operatingdeficits. Advances from the DGPs may only be repaid from the proceeds of futuresales of the respective properties.

 

Program management fees due to MFPamounted to $326,726 and represent amounts accrued through December 31,1996.  No accruals have been recordedsince that date (see Note 6).  Partnershipservices fees are also payable to MFP and reflect accruals through December 31,2003 and 2002.  Partnership fees arepayable from future sales of the properties, to the extent they are not paidfrom distributions of rental operation cash (see Note 5).

 

During 2003 and 2002, MFP advanced$50,242 and $48,284, respectively, to the Investor Partnership foradministrative expenses.  These advancesbrought the balances due to MFP at December 31, 2003 and 2002 to $201,525 and$151,283, respectively.

 

23

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An affiliate of one of the DGPsadvanced $975 to the Property Partnership of the DGP. Advances made to one ofthe DGP’s during 2001 totaled $9,000. During 2000, advances to this same DGP totaled $15,079 (see Note 8).

 

The Investor Partnership maintainsdeposits with WMB in certain checking and money market accounts whichaggregated $5,700 and $27,368 at December 31, 2003 and 2002, respectively.  Interest earned on such deposits totaled$57, $96, and $335 during the years ended December 31, 2003, 2002 and 2001,respectively.

 

**Note 3 –Cash in Reserve Accounts**

 

The Loan Agreements between theProperty Partnerships and RHS require the Property Partnerships to deposit$127,196 annually into separate reserve accounts until the accounts reach$1,271,277.  Subject to RHS approval,these funds may be used for various purposes, as further described in the LoanAgreements.  Seven of the 11 PropertyPartnerships were in compliance with the minimum annual funding requirements asset forth by RHS for the year ended December 31, 2003, and 8 of the 11 PropertyPartnerships were in compliance with RHS minimum annual funding requirementsfor the year ended December 31, 2002. During 2003 reserve withdrawals were made at 11 of the 11 PropertyPartnerships and 9 of the Property Partnerships were in compliance with RHSrequirements. In 2002 reserve withdrawals were made at ten of the 11 PropertyPartnerships and were in compliance with RHS requirements.  The Logan DGP has pledged a portion of theLogan Reserves for his own use in violation of the Loan Agreement (see Note 6)

 

**Note 4 –Mortgage Notes Payable**

 

The mortgage notes are payable toRHS in monthly installments totaling $26,959. In accordance with provisions of Interest Credit Agreements, RHSprovides monthly interest credits totaling $69,129 which reduce the interestrates stated in the mortgage notes to effective rates of 1 percent over thelives of the mortgages.  Amortization ofprincipal is based on the stated rates of 8.75% to 10.75% under RHS’sPredetermined Amortization Schedule System (PASS).  The mortgage notes mature May, 2039 through March, 2040.  Substantially all of the rental property andequipment is pledged as collateral on the mortgages.  No partner is individually liable on the mortgage notes.

 

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

 

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

 
| **Year**                    |   | **Amount** |       |
|-----------------------------|--------|------------|------------|
| 2004                        |   | $          | 46,197     |   |
| 2005                        |   | 50,535     |       |
| 2006                        |   | 55,281     |       |
| 2007                        |   | 59,803     |       |
| 2008                        |   | 66,159     |       |
| 2009 – and later years |   | 11,937,090 |       |
|                        |   |       |       |
|                        |   | $          | 12,215,065 |   |

 

At December 31, 2003, Logan, Wexford,Rolling Brook II and Fairview were in non compliance with funding their reservedeposits.  Although Wexford, RollingBrook II and Fairview reserve balance totals are in compliance, the loancovenants state that annual deposits will be made.  At the time of this filing, no notice has been received from themortgage holder

 

24

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Additionally, Logan received aLetter of Acceleration of the Loan Account in 2001, although furtherproceedings were suspended in 2001 and have not been resumed.  In addition, Logan's real estate taxestotaling $30,509 were deliguent at December 31, 2003 which is a violation ofthe loan agreement.  At the time of thisfiling, no notice of default has been received regarding the delinquent realestate taxes.  The Logan mortgage notebalance at December 31, 2003 and 2002 totaled $984,306 and $987,180,respectively.

 

**Note 5 -Rental Operations Cash**

 

RHS regulations limit thedistribution of rental operation cash to a maximum of $38,090 annually.  Any distribution to the Investor Partnershipfrom rental operation cash is to be made in accordance with the respectivepartnership agreements.  Whether or nota Property Partnership makes any limited distribution is based on the resultsof its own operations and is at the discretion of the DGP.

 

**Note 6 –Guarantees and Contingencies**

 

*Guarantees*

 

Each of the DGP’s has made aguarantee to the respective Property Partnership that they will compensate thePartnership in the event the actual low-income housing tax credit is less than85% to 90% of the available credit. Through December 31, 2003, no payments havebeen made under these guarantee agreements.

 

*Contingencies*

 

The Investor Partnership has ceasedaccrual of the annual program management fee, payable in part to MFP.  Management has determined that the source ofpayment, a future sale or refinance of one or more of the PropertyPartnerships, may not be sufficient to pay fees accrued in excess of the $544,540payable at December 31, 1996.  Managementhas elected to treat fees for years subsequent to 1996 as a contingentliability.  At December 31, 2003 and2002 the contingent liability for program management fees totaled $521,618 and$447,102, respectively.

 

As discussed in Note 2, the LoganDGP owes Logan $24,079 for advances not in compliance with RHSregulations.  In addition the Logan DGPPledged Logan assets for his own use. As of December 31, 2003 and 2002, pledged funds totaled $61,146 and $60,131, respectively.  The Logan DGP is in the process of beingreplaced.  The replacement DGP isexpected to restore the advances and pledged accounts to Logan in 2004 when thetransfer is expected to occur. Accordingly, no adjustment has been made to the carrying value of theseassets.

 

25

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**INDEPENDENT AUDITORS’REPORT ON SCHEDULES**

 

Partners

Assisted HousingFund L.P. I

Seattle, Washington

 

We have audited theconsolidated financial statements of Assisted Housing Fund L.P. I and itssubsidiaries, as of and for the years ended December 31, 2003, 2002 and 2001listed under Item 15(a)1 hereof and have issued our report thereon dated March25, 2004 (which report is incorporated by reference elsewhere in this Form10-K).  In the course of our audits ofsuch financial statements, we have also audited the schedules listed under Item15(a)2 for the years ended December 31, 2003, 2002 and 2001. These schedulesare the responsibility of the Partnership’s management.  Our responsibility is to express an opinionbased on our audits.  In our opinion,these schedules present fairly, in all material respects, when read inconjunction with the related financial statements, the information therein setforth.

 

 
| /s/  Blume Loveridge & Co., PLLC |   |
|--------------------------------------|--------|
| Blume  Loveridge & Co., PLLC     |
| Bellevue,  Washington                |
| March  25, 2004                      |

 

26

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**ASSISTED HOUSING FUND L.P. IAND SUBSIDIARIES**

 

**SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION**

**Year Ended December 31, 2003**

 

 
| **COLUMN A**    |             | **COLUMN B**     |       | **COLUMN C**                      |   | **COLUMN D**           |   |
|-----------------|------------------|------------------|------------|-----------------------------------|--------|------------------------|--------|
|            |             |             |       |                              |   |                   |   |   |   | **Costs  Capitalized Subsequent to Acquisition** |   |
|            |             | **Encumbrances** |       | **Initial  Cost to Partnership**  |   |
| **Description** |             | **Land**         |       | **Buildings  & Improvements** |   | **Personal  Property** |   |
|            | **Improvements** |             |
| Fairview        |             | $                | 1,258,945  |                              | $      | 55,413                 |   |   |   |   |   | $ | 1,611,705 |   |
|            |             |             |       |                              |   |                   |   |   |   |   |   |
| Ionia           |             | 703,526          |       | 24,000                            |   |                   |   |   |   | 937,578 |   |
|            |             |             |       |                              |   |                   |   |   |   |   |   |
| Logan           |             | 984,306          |       | 55,129                            |   |                   |   |   |   | 1,220,097 |   |
|            |             |             |       |                              |   |                   |   |   |   |   |   |
| Rolling Brook   |             | 738,233          |       | 35,000                            |   |                   |   |   |   | 929,706 |   |
|            |             |             |       |                              |   |                   |   |   |   |   |   |
| Wexford         |             | 716,612          |       | 22,000                            |   |                   |   |   |   | 958,606 |   |
|            |             |             |       |                              |   |                   |   |   |   |   |   |
| Blue Heron      |             | 1,451,229        |       | 248,569                           |   |                   |   |   |   | 2,008,436 |   |
|            |             |             |       |                              |   |                   |   |   |   |   |   |
| Glenwood        |             | 1,420,623        |       | 145,000                           |   |                   |   |   |   | 1,788,187 |   |
|            |             |             |       |                              |   |                   |   |   |   |   |   |
| Pacific Place   |             | 749,052          |       | 30,000                            |   |                   |   |   |   | 1,005,590 |   |
|            |             |             |       |                              |   |                   |   |   |   |   |   |
| Cove            |             | 1,413,442        |       | 47,000                            |   |                   |   |   |   | 1,753,463 |   |
|            |             |             |       |                              |   |                   |   |   |   |   |   |
| Washington      |             | 750,634          |       | 8,000                             |   |                   |   |   |   | 890,594 |   |
|            |             |             |       |                              |   |                   |   |   |   |   |   |
| Fayette         |             | 2,028,463        |       | 53,000                            |   | 1,779,270              |   | 40,800 |   | 686,733 |   |
|            |             |             |       |                              |   |                   |   |   |   |   |   |
| AHF             |             |             |       |                              |   | 444,240                |   |   |   |   |   |
|            |             |             |       |                              |   |                   |   |   |   |   |   |
| Total           |             | $                | 12,215,064 |                              | $      | 723,111                |   | $ | 2,223,510 |   | $ | 40,800 |   | $ | 13,790,695 |   |
|                 |                  |                  |            |                                   |        |                        |        |  |  |  |  |  |  |  |  |  |

 

27

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**ASSISTED HOUSING FUND L.P.1 AND SUBSIDIARIES**

 

**SCHEDULE III-REAL ESTATE AND ACCUMULATEDDEPRECIATION (CONTINUED)**

**Year Ended December 31,2003**

 
| **COLUMN A**    |   | **COLUMN E**                                        |    | **COLUMN F**  |   | **COLUMN G**                                  |   | **COLUMN H** |      | **COLUMN I**                  |      |
|-----------------|--------|-----------------------------------------------------|---------|---------------|--------|-----------------------------------------------|--------|--------------|-----------|-------------------------------|-----------|
|            |   | **Gross  Amount at Which Carried at End of Period** |    |          |   |                                          |   |         |      |                          |      |
| **Description** |   | **Land**                                            |    | **Buildings** |   | **Land  Improvements and Personal Property.** |   | **Total**    |      | **Accumulated  Depreciation** |      | **Date of  Construction/Placed in Service** |   | **Date of  Acquisition** |   | **Life on  Which Depreciation in Latest Income Statement is Computed** |   |
| Fairview        |   | $                                                   | 55,413  |          | $      | 1,418,319                                     |   | 193,386      |      | $                             | 1,667,118 |   | $ | 861,525 |   | 13-Jun-90 |   | Various |   | 27.5/15/10/5 |   |
|            |   |                                                |    |          |   |                                          |   |         |      |                          |      |   |   |   |   |   |   |
| Ionia           |   | 24,000                                              |    | 817,506       |   | 120,072                                       |   | $            | 961,578   |                          | 501,930   |   | 08-Aug-90 |   | Various |   | 27.5/15/7/5 |   |
|            |   |                                                |    |          |   |                                          |   |         |      |                          |      |   |   |   |   |   |   |
| Logan           |   | 55,129                                              |    | 1,022,974     |   | 197,123                                       |   | $            | 1,275,226 |                          | 667,683   |   | 11-Jan-91 |   | Various |   | 27.5/15/10/5 |   |
|            |   |                                                |    |          |   |                                          |   |         |      |                          |      |   |   |   |   |   |   |
| Rolling Brook   |   | 35,000                                              |    | 794,263       |   | 135,443                                       |   | $            | 964,706   |                          | 521,686   |   | 08-Mar-90 |   | Various |   | 27.5/15/10/7 |   |
|            |   |                                                |    |          |   |                                          |   |         |      |                          |      |   |   |   |   |   |   |
| Wexford         |   | 22,000                                              |    | 815,821       |   | 142,785                                       |   | $            | 980,606   |                          | 533,519   |   | 21-Feb-90 |   | Various |   | 27.5/15/7/5 |   |
|            |   |                                                |    |          |   |                                          |   |         |      |                          |      |   |   |   |   |   |   |
| Blue Heron      |   | 248,569                                             |    | 1,890,967     |   | 117,469                                       |   | $            | 2,257,005 |                          | 1,038,211 |   | 01-May-90 |   | Various |   | 27.5/10/5 |   |
|            |   |                                                |    |          |   |                                          |   |         |      |                          |      |   |   |   |   |   |   |
| Glenwood        |   | 145,000                                             |    | 1,701,975     |   | 86,212                                        |   | $            | 1,933,187 |                          | 966,563   |   | 01-Apr-89 |   | Various |   | 27.5/10/7/5 |   |
|            |   |                                                |    |          |   |                                          |   |         |      |                          |      |   |   |   |   |   |   |
| Pacific Place   |   | 30,000                                              |    | 950,979       |   | 54,611                                        |   | $            | 1,035,590 |                          | 538,052   |   | 01-May-89 |   | Various |   | 27.5/15/5 |   |
|            |   |                                                |    |          |   |                                          |   |         |      |                          |      |   |   |   |   |   |   |
| Cove            |   | 47,000                                              |    | 1,635,278     |   | 118,185                                       |   | $            | 1,800,463 |                          | 912,890   |   | 01-Mar-90 |   | Various |   | 27.5/10/7/5 |   |
|            |   |                                                |    |          |   |                                          |   |         |      |                          |      |   |   |   |   |   |   |
| Washington      |   | 8,000                                               |    | 836,929       |   | 53,665                                        |   | $            | 898,594   |                          | 463,283   |   | 01-Jan-90 |   | Various |   | 27.5/10 |   |
|            |   |                                                |    |          |   |                                          |   |         |      |                          |      |   |   |   |   |   |   |
| Fayette         |   | 53,000                                              |    | 2,347,661     |   | 159,142                                       |   | $            | 2,559,803 |                          | 1,334,896 |   | 01-Dec-89 |   | Various |   | 27.5/19/15 |   |
|            |   |                                                |    |          |   |                                          |   |         |      |                          |      |   |   |   |   |   |   |
| AHF             |   |                                                |    | 444,240       |   |                                          |   | $            | 444,240   |                          | 224,985   |   |   |   | Various |   |   |   |
| Total           |   | $                                                   | 723,111 |          | $      | 14,676,912                                    |   | $            | 1,378,093 |                          | $         | 16,778,116 |   | $ | 8,565,223 |   |   |   |   |   |   |   |
|                 |        |                                                     |         |               |        |                                               |        |              |           |                               |           |  |  |  |  |  |  |  |  |  |  |  |

 

28

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**ASSISTED HOUSING FUND L.P. AND SUBSIDIARIES**

 

**SCHEDULE III- REAL ESTATE AND ACCUMULATEDDEPRECIATION (CONTINUED)**

**Year Ended December 31, 2003**

 
|                                 |   |                              |       |                              |   |                              |   |
|--------------------------------------|--------|-----------------------------------|------------|-----------------------------------|--------|-----------------------------------|--------|
| **REAL ESTATE**                      |   | **Year Ended  December 31, 2001** |       | **Year Ended  December 31, 2002** |   | **Year Ended  December 31, 2003** |   |
| Balance at beginning of period       |   | $                                 | 16,559,371 |                              | $      | 16,681,425                        |   | $ | 16,741,512 |   |
| Additions during period:             |   |                              |       |                              |   |                              |   |
| Property acquisitions                |   | 107,175                           |       | 52,727                            |   | 36,604                            |   |
| Acquisitions through foreclosure     |   | 0                                 |       | 0                                 |   | 0                                 |   |
| Other acquisitions                   |   | 0                                 |       | 0                                 |   | 0                                 |   |
| Improvements etc. (New Construction) |   | 14,879                            |       | 7,360                             |   | 0                                 |   |
| Other (Acquisition Cost)             |   | 0                                 |       | 0                                 |   | 0                                 |   |
|                                 |   | $                                 | 16,681,425 |                              | $      | 16,741,512                        |   | $ | 16,778,116 |   |
| Deductions during period:            |   |                              |       |                              |   |                              |   |
| Cost of real estate sold             |   | 0                                 |       | 0                                 |   | 0                                 |   |
| Other - retired fixed assets         |   | 0                                 |       | 0                                 |   | 0                                 |   |
| Balance at close of period           |   | $                                 | 16,681,425 |                              | $      | 16,741,512                        |   | $ | 16,778,116 |   |

 
| **ACCUMULATED**                      |   | **Year Ended  December 31, 2001** |      | **Year Ended  December 31, 2002** |   | **Year Ended  December 31, 2003** |   |
|--------------------------------------|--------|-----------------------------------|-----------|-----------------------------------|--------|-----------------------------------|--------|
| Balance at beginning of period       |   | $                                 | 6,769,459 |                              | $      | 7,358,898                         |   | $ | 7,959,382 |   |
|                                 |   |                              |      |                              |   |                              |   |
| Existing property:                   |   | 581,396                           |      | 594,953                           |   | 602,999                           |   |
| Depreciation on additions:           |   |                              |      |                              |   |                              |   |
| Property acquisitions                |   | 7,502                             |      | 5,264                             |   | 2,842                             |   |
| Acquisitions through foreclosure     |   | 0                                 |      | 0                                 |   | 0                                 |   |
| Other acquisitions                   |   | 0                                 |      | 0                                 |   | 0                                 |   |
| Improvements etc. (New Construction) |   | 541                               |      | 267                               |   |                              |   |
| Other (Acquisition Costs)            |   | 0                                 |      | 0                                 |   | 0                                 |   |
|                                 |   | $                                 | 7,358,898 |                              | $      | 7,959,382                         |   | $ | 8,565,223 |   |
| Depreciation on deductions:          |   |                              |      |                              |   |                              |   |
| Cost of real estate sold             |   | 0                                 |      | 0                                 |   | 0                                 |   |
| Other - retired fixed assets         |   | 0                                 |      | 0                                 |   | 0                                 |   |
| Balance at close of period           |   | $                                 | 7,358,898 |                              | $      | 7,959,382                         |   | $ | 8,565,223 |   |

 

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