UNITED STATES

                SECURITIES AND EXCHANGE COMMISSION

                       Washington, D.C. 20549

                              FORM 10-Q

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

            For the quarterly period ended September 30, 2000

                                  OR

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

       For the transition period from _________ to ________.

                  Commission File Number 2-43162

                 URBAN IMPROVEMENT FUND LIMITED - 1972
          (Exact name of registrant as specified in its charter)

          California                                        95-6448384
State or other jurisdiction of                            (I.R.S. Employer
incorporation or organization                             Identification No.)

1201 Third Avenue, Suite 5400, Seattle, Washington          98101-3076
     (Address of principal executive offices)               (ZIP code)

Registrant=s telephone number, including area code:      (206) 622-9900


Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of1934 during the preceding 12 months and (2) has been subject to such filing
requirements for the past 90 days.  Yes XX    No
<PAGE>

                    PART I - FINANCIAL INFORMATION

                     Item 1 - Financial Statements

                            BALANCE SHEETS

                  URBAN IMPROVEMENT FUND LIMITED - 1972
                        (A Limited Partnership)

                                   ASSETS
<TABLE>
<CAPTION>
<S>
<C>                                   <C>                     <C>
                                      September 30,           December 31,
                                          2000                    1999

Cash                                  $   153,713             $   235,133

Investments in and advances to
 Local Limited Partnerships
 accounted for on the equity
 method                                       -0-                     -0-

   Total Assets                       $   153,713              $  235,133


                            LIABILITIES AND PARTNER - (DEFICIT)

Accounts payable                      $     6,000              $      -0-

Management fee payable                        -0-                     833

Payable to affiliates                     528,586                 568,567

Distribution payable                          642                  40,577

 Total Liabilities                        535,228                 609,977

Partners' (Deficit):
 General Partner - 5 Partnership
 units authorized, issued and
 outstanding                                 (305)                   (316)

Limited Partners - 5,830
 Partnership units
 authorized, issued
 and outstanding                         (381,210)               (374,528)
                                         (381,515)               (374,844)

Total Liabilities and
 Partners' (Deficit)                  $   153,713              $  235,133
</TABLE>


Unaudited.  See accompanying notes.
<PAGE>

                 CAPITALIZATION AND PARTNERS' (DEFICIT)

                 URBAN IMPROVEMENT FUND LIMITED - 1972
                         (A Limited Partnership)
<TABLE>
<CAPTION>
<S>
<C>                             <C>                             <C>
                                September 30,                   December 31,
                                    2000                            1999

General Partner Interest -
 5 Partnership units issued
 and outstanding                $     5,000                     $     5,000

Limited Partners' Interest -
 5,830  Partnership units
 issued and outstanding           5,830,000                       5,830,000

   Total                          5,835,000                       5,835,000

Offering Expenses                  (641,492)                       (641,492)

Distributions to partners          (861,150)                       (861,150)

Accumulated loss through
 December 31, 1999               (4,707,202)                     (4,707,202)

Loss for the nine-month
 period ended September
 30, 2000                            (6,671)                            -0-
                                 (6,216,515)                     (6,209,844)

Partners' (deficit) at
 end of period                  $  (381,515)                     $ (374,844)
</TABLE>


Unaudited.  See accompanying notes
<PAGE>

                                STATEMENTS OF INCOME
                       URBAN IMPROVEMENT FUND LIMITED - 1972
                                (A Limited Partnership)
<TABLE>
<CAPTION>
<S>
<C>                          <C>           <C>           <C>           <C>
                             For the Three-Month          For the Nine-month
                                Period Ended                 Period Ended
                                September 30,                September 30,
                             2000          1999          2000          1999

Revenues                 $     855     $     -0-      $   2,629    $     417

Cost and expenses:

 Professional fees           4,019         5,000         12,019       15,000

 Management fee             10,000        10,000         30,000       30,000

 Other expenses                858           -0-          3,835          136
                            14,877        15,000         45,854       45,136

Loss before equity in
 loss of Local Limited
 Partnerships              (14,022)      (15,000)       (43,225)     (44,719)

Equity in loss of Local
 Limited Partnerships        8,054     1,658,635         36,554    1,641,623

Net income (loss)         $ (5,968)   $1,643,635       $ (6,671)  $1,596,904

Allocation of Net Loss:

 Net income (loss)
 allocated to General
 Partner                  $     (5)   $    1,423       $     (6)  $    1,383

 Net income (loss)
 allocated to Limited
 Partners                    (5,963)   1,642,212         (6,665)   1,595,521

                           $ (5,968   $1,643,635       $ (6,671)  $1,596,904

Net income (loss) allocated
 to Limited Partners per
 Limited  Partnership Unit
 (5,830 units outstanding
 at September 30, 2000
 and 1999)                 $     (1)  $      282       $     (1)  $     274
</TABLE>



Unaudited.  See accompanying notes.
<PAGE>

                        STATEMENTS OF CASH FLOWS
                 URBAN IMPROVEMENT FUND LIMITED - 1972
                         (A Limited Partnership)
<TABLE>
<CAPTION>
<S>
<C>                      <C>           <C>           <C>            <C>
                         For the Three-Month          For the Nine-month
                            Period Ended                 Period Ended
                            September 30,                September 30,
                         2000           1999          2000           1999

CASH FLOWS FROM
 OPERATING ACTIVITIES:
  Net income (loss)      $ (5,968)    $1,643,635      $ (6,671)   $1,596,904
  Adjustments to
  reconcile net
  income (loss)
  to net cash
  used by operating
  activities:
  Equity in income
  of local
  limited
  partnerships             (8,054)    (1,658,635)      (36,554)   (1,641,623)
 Decrease (increase)
 in distribution
 receivable                   -0-     (1,658,635)          -0-    (1,626,300)
 Decrease in receivable
 from affiliates              -0-            -0-           -0-        15,335
 Increase (decrease)
 in accounts payable,
 management fees
 payable and payable
 to affiliates             (12,000)        14,850       (74,749)       13,302
  Total adjustments        (20,054)    (3,302,420)     (111,303)   (3,239,286)

 Net cash provided
 (used) by operating
 activities                (26,022)    (1,658,785)     (117,974)   (1,642,382)

CASH FLOWS FROM
 INVESTING ACTIVITIES:
 Distributions               8,054      1,619,610        36,554     1,627,556
 Net advances paid
 to by local limited
 partnerships                  -0-         39,025           -0-        14,067
  Net cash provided
  (used) by investing
  activities                 8,054      1,658,635        36,554     1,641,623

NET DECREASE IN CASH
 AND CASH EQUIVALENTS      (17,968)          (150)      (81,420)         (759)

CASH BALANCE AT
 BEGINNING OF PERIOD       171,681            567       235,133         1,176

CASH BALANCE AT
 END OF PERIOD           $ 153,713      $     417     $ 153,713    $      417
</TABLE>


Unaudited.  See accompanying notes.
<PAGE>

              NOTES TO SUMMARIZE FINANCIAL INFORMATION
                        September 30, 2000

               URBAN IMPROVEMENT FUND LIMITED - 1972
                      (A Limited Partnership)

Note 1 - Organization - Urban Improvement Fund Limited (the Partnership)
was formed under the California Uniform Limited Partnership Act on February 22,
1972, for the principal purpose of investing in other limited partnerships
(Local Limited Partnerships), which own federal and state-assisted housing
projects.  The Partnership issued 5,830 units of limited partnership interest
pursuant to a public offering of such units which terminated on December 31,
1972.  The Partnership also issued five units of general partnership interest
to Interfinancial Real Estate Management Company (the General Partner).  For
income tax and financial reporting purposes, profits and losses are allocated
 .08659 percent to the General Partner and 99.91341 percent to the Limited
Partners.

Note 2 - Method of Accounting - Initial rent-up fees paid by the Partnership
to the General Partner, deducted when paid for income tax purposes, are
capitalized as acquisition costs of the Local Limited Partnerships for finan-
cial reporting purposes.  These costs and other costs of acquisition are
amortized using the straight-line method over the lives (fifteen to forty
years) of the Local Limited Partnership Properties.  Amortization is discon-
tinued when the investment is reduced to zero.

Repayment of advances and cash distributions by the Local Limited Partnerships,
after the Partnership investment has been reduced to zero, are recognized as
income by the Partnership in the period received.  Additional advances to Local
Limited Partnership, after an investment is reduced to zero, are recognized as
losses in the period paid.
<PAGE>

The unaudited interim financial statements furnished in this report reflect all
adjustments which are, in the opinion of management, necessary to a fair
statement of the results for the interim periods presented.  All such adjust-
ments are of a normal recurring nature.

Taxes on Income
No provision for taxes on income is required since all taxable income or
loss of the Partnership is allocated to the partners for inclusion in their
respective tax returns.

Cash Equivalents
Marketable securities that are highly liquid and have maturities of three
months or less at the date of purchase are classified as cash equivalents.

Note 3 - Management of Urban Improvement Fund Limited
Under the terms of the Limited Partnership Agreement (as amended), the
Partnership is required to pay the General Partner an annual management fee
equal to three tenths of one percent of invested assets or $64,325 (the fee
will not be more than fifty percent of the Partnership's annual net cash flow
as defined, subject to an annual minimum of $40,000).  At December 31, 1998,
management fees totaling $800,833 had been accrued to the General Partner
because cash flow was not sufficient to pay the fees.  During 1999, the
Partnership recorded management fee expense of $40,000.  Due to the cash
flow generated from the sale of Angeles Apartment Associates, No. 1 and No. 2,
the Partnership paid management fees of $840,000 which included the entire
balance of accrued fees at December 31, 1998.
<PAGE>

The General Partner of the partnership is a corporation in which Paul H.
Pfleger has a majority interest.  Partnership Services, Inc. (PSI), another
corporation in which Paul H. Pfleger is a majority shareholder, has contracted
with the General Partner and the Partnership to provide certain management and
other services in any projects in which the Partnership has an interest.  In
addition, as shown in the following table, PSI has become the General Partner
in three of the Local Limited Partnerships in which the Partnership has
investments.
<TABLE>
<CAPTION>
<S>
          <C>                                             <C>
                                                          Date PSI Became
          Local Limited Partnership                       General Partner

   (1) Alms Hill Apartments Limited                        December 1977
   (2) Angeles Apartments Associates, No. 1                December 1975
   (2) Angeles Apartments Associates, No. 2                December 1975
</TABLE>

(1)  This property was sold through a resyndication during 1984.
(2)  These properties were sold during 1999.

Note 4 - Investments in Local Limited Partnerships - As of September 30, 2000,
the Partnership has investments in two active real estate Limited Partnerships
(Local Limited Partnerships), which are accounted for on the equity method.
The investment account represents the sum of the capital investment, advances
and unamortized costs of acquisition less the Partnership's share of losses
since the date of acquisition.  The Partnership discontinues recognizing losses
and amortizing cost of acquisition under the equity method when the investment
in a particular Local Limited Partnership is reduced to zero unless the Part-
nership intends to commit additional funds to the Local Limited Partnership.
<PAGE>

The Partnership has an investment in one Limited Partnership that sold its real
estate during 1984.  This Partnership (Alms Hill Apartments, Ltd.) holds a note
receivable for a portion of the sales proceeds.

The investment in Local Limited Partnerships is comprised of:
<TABLE>
<CAPTION>
<S>
<C>                             <C>                       <C>
                                September 30, 2000        December 31, 1999

Capital contributions              $   556,642                $   556,642
Distributions                         (516,369)                  (479,815)
Equity in loss                        (213,707)                  (250,261)
Advances                                   -0-                        -0-
Unamortized costs of acquisitions      173,434                    173,434
                                   $       -0-                $       -0-
</TABLE>

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

The Partnership has followed the practice of investing available funds not
used in the purchase of properties or in operations into short-term invest-
ments.  Revenues resulted from such short-term investments.  The Partnership
is dependent upon interest earned and the distributions and repayment of
advances from Local Limited Partners for cash flow.

Under the terms of the Limited Partnership Agreement (as amended), the
Partnership is required to pay the General Partner an annual management fee
equal to three tenths of one percent of invested assets or $64,325 (the fee
will not be more than fifty percent of the Partnership's annual net cash flow
as defined, subject to an annual minimum of $40,000).  The Partnership
recorded management fee expense of $30,000 for the nine-month period ended
September 30, 2000 and 1999.
<PAGE>

                          PART II - OTHER INFORMATION

Items 1 through 5 not applicable
Item 6 Exhibits and Reports on Form 8-K
       a) None
       b) The registrant has not filed a report on Form 8-K during the quarter
          ending September 30, 2000.
<PAGE>

                                SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

                                      URBAN IMPROVEMENT FUND LIMITED - 1972
                                                   (Registrant)
                                 By:  Interfinancial Real Estate Management
                                      Company, General Partner



Date  November 14, 2000                     Michael Fulbright
                                               (Signature)
                                  By:  Michael Fulbright, Secretary



Date  November 14, 2000                       John M. Orehek
                                                (Signature)
                                  By: John M. Orehek, Senior Vice President