UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-QSB

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

For the quarterly period ended June 30, 2002

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
(Exact name of small business issuer (Issuer) as specified in
its charter)

          California                             95-6398192
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)

Issuer's telephone number, including area code: (206) 622-9900


     Indicate by check mark whether the Issuer (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months and
(2) has been subject to such filing requirements for the past 90
days.  Yes   XX    No .


PART I - FINANCIAL INFORMATION

Item 1 - Financial Statements

BALANCE SHEETS

	URBAN IMPROVEMENT FUND LIMITED - 1972
	(A Limited Partnership)




	ASSETS



	June 30,	December 31,
	   2002    	   2001

Cash				$    88,992	$    97,757

	Total Assets	$    88,992	$    97,757



	LIABILITIES AND PARTNERS' - (DEFICIT)

Accounts payable	$     4,000	$     2,334

Management fee payable 	10,000	0

Advance from General Partner	528,586	528,586

Distribution payable	        642	        642

Total Liabilities	543,228	531,562

Partners' (Deficit):
General Partner - 5 Partnership units
    authorized, issued and outstanding	(385)	(368)

  Limited Partners - 5,830 Partnership units
    authorized, issued and outstanding	   (453,851)	   (433,437)
 				   (454,236)	   (433,805)

Total Liabilities and Partners'(deficit)	$    88,992	$    97,757





















Unaudited.  See accompanying notes.

	CAPITALIZATION AND PARTNERS' (DEFICIT)

	URBAN IMPROVEMENT FUND LIMITED - 1972
	(A Limited Partnership)




	June 30,	December 31,
	   2002    	   2001
General Partner Interest - 5 Partner-
ship 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, 2001	(4,766,163)	(4,766,163)

Loss for the six-month period
ended June 30, 2002	    (20,431)	          0
	 (6,289,236)	 (6,268,805)

Partners' (deficit) at end of period	$  (454,236)	$  (433,805)




























Unaudited.  See accompanying notes

STATEMENTS OF INCOME

	URBAN IMPROVEMENT FUND LIMITED - 1972
(A Limited Partnership)



	For the Three-Month	For the Six-Month
	      Period Ended      	      Period Ended
	        June 30,       	        June 30,
	   2002  	   2001  	   2002  	   2001

Revenues								$     169	$  14,856	$     429	$  16,700

Cost and expenses:

Professional fees			4,000	4,000	7,580	8,000

Management fee					10,000	10,000	20,000	20,000

Other expense					        1	      800	    1,236	      800
											14,001	14,800	28,816	28,800

Loss before equity in loss of
	Local Limited Partnerships	(13,832)	56	(28,387)	(12,100)

Equity in income of Local Limited
Partnerships						    7,956	    8,054	    7,956	    8,054

Net loss								$  (5,876)	$   8,110	$ (20,431)	$  (4,046)

Allocation of Net Loss:

Net loss allocated to
	General Partner			(5)	8	(20)	(4)

Net loss allocated to
	Limited Partners			   (5,871)	    8,102	  (20,411)	   (4,042)

											$  (5,876)	$   8,110	$ (20,431)	$  (4,046)

Net loss allocated to Limited
	Partners per Limited  Partner-
	ship Unit (5,830 units out-
	standing at June 30, 2002
	and 2001)						$      (1)	$      (1)	$     (3)	$      (1)





Unaudited.  See accompanying notes
STATEMENTS OF CASH FLOWS

URBAN IMPROVEMENT FUND LIMITED - 1972
(A Limited Partnership)



	For the Three-Month	For the Six-Month
	      Period Ended     	      Period Ended
	        June 30,       	        June 30,
											   2002   	   2001   	   2002   	   2001
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)		$  (5,876)	$   8,110	$ (20,431)	$  (4,046)
Adjustments to reconcile net
income to net cash used by
operating activities:
Equity in income of local
limited partnerships	(7,956)	(8,054)	(7,956)	(8,054)
Increase (decrease) in
accounts payable, manage-
ment fees payable and
payable to affiliates	    4,000	    4,000	   11,666	    4,100
  Total adjustments	   (3,956)	   (4,054)	    3,710	   (3,954)

    Net cash used by
      operating activities	   (9,832)	    4,056	  (16,721)	   (8,000)

CASH FLOWS FROM INVESTING ACTIVITIES:
Distributions				    7,956	     8,054	    7,956	    8,054
    Net cash provided by
      investing activities	7,956	8,054	7,956	8,054

NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS			(1,876)	12,110	(8,765)	54

CASH BALANCE AT BEGINNING OF
PERIOD								   90,868	   132,541	   97,757	   144,597

CASH BALANCE AT END OF PERIOD	$  88,992	$  144,651	$  88,992	$  144,651













Unaudited.  See accompanying notes.

NOTES TO SUMMARIZE FINANCIAL INFORMATION
June 30, 2002

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 - As of June 30, 2002, the Partnership
has investments in two active real estate limited partnerships
(Local Limited Partnerships); Since the Partnership, as a limited
partner, does not exercise control over the activities of the Local
Limited Partnerships in accordance with the Partnership agreements,
these investments are accounted for using the equity method. The
investment account represents the sum of the capital investment and
unamortized cost of acquisition less the Partnership's share in
losses since the date of acquisition.  The Partnership discontinues
recognizing losses and amortizing cost of acquisition under the
equity method when losses have been incurred which equal the cost of
the investment and the unamortized cost of acquisition in a
particular Local Limited Partnership, thus reducing the investment
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
year received.  Additional advances to a Local Limited Partnership,
after an investment is reduced to zero, are recognized as losses.

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 financial
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 discontinued when the investment is reduced to zero.

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 adjustments 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.

Fair Value of Financial Instruments and Use of Estimates

The Partnership estimates that the aggregate fair value of all
financial instruments at June 30, 2002 does not differ materially
from the aggregate carrying values of its financial instruments
recorded in the balance sheet.  These estimates are not necessarily
indicative of the amounts that the Partnership could realize in a
current market exchange.  The preparation of financial statements
requires the use of estimates and assumptions.  Actual results could
differ from those estimates.

Segment Reporting

SFAS No. 131, "Disclosure about Segments of an Enterprise and
Related Information" established standards for the way that public
business enterprises report information about operating segments in
annual financial statements and requires that those enterprises
report selected information about operating segments in interim
financial reports.  It also established standards for related
disclosures about products and services, geographic areas and major
customers.  The Partnership has only one reportable segment.  Due to
the very nature of the Partnership's operations, the General Partner
believes that segment-based disclosures will not result in a more
meaningful presentation than the financial statements as currently
presented.

Recent Accounting Pronouncements

In August 2001, the Financial Accounting Standards Board issued SFAS
No. 144, "Accounting for the Impairment or Disposal of Long-Lived
Assets."  SFAS No. 144 provides accounting guidance for financial
accounting and reporting for the impairment or disposal of long-
lived assets.  SFAS No. 144 supersedes SFAS No. 121, "Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to be
Disposed Of."  SFAS No. 144 is effective for fiscal years beginning
after December 15, 2001.  The General Partner does not anticipate
that its adoption will have a material effect on the financial
position or results of operations of the Partnership.

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.

Advances from General Partner

The General Partner made advances to the Partnership to fund
operations of the Local Limited Partnerships in the early years of
the Partnership.  The advances are non-interest bearing and due on
demand.  The balance at June 30, 2002 and  December 31, 2001 was
$528,586.

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 fifty percent of the Partnership's annual
net cash flow as defined, subject to an annual minimum of $40,000.
The Partnership recorded and paid an annual management fee expense
of $40,000 for the year ended December 31, 2001.  As of June 30,
2002, the Partnership has recorded management fee expense of $20,000
and paid $10,000 to the General Partner.

The Partnership will also pay the General Partner a liquidation fee
for the sale of projects.  The liquidation fee is the lesser of (i)
ten percent of the net proceeds to the Partnership from the sale of
a project(s) or (ii) one percent of the sales price plus three
percent of the net proceeds after deducting an amount sufficient to
pay long-term capital gains taxes.  No part of such fee shall accrue
or be paid unless:  (i) the limited partners' share of the proceeds
has been distributed to them, (ii) the limited partners shall have
first received an amount equal to their invested capital
attributable to the project(s) sold, and (iii) the limited partners
have received an amount sufficient to pay long-term capital gains
taxes from the sale of the project(s), if any, calculated at the
maximum rate then in effect.  No liquidation fees were paid to the
General Partner during 2001 and 2000.

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 to any
projects in which the Partnership has an interest.  No fees were
paid to PSI during 2001 and 2000.

			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

(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 June 30,
2002, 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 Partnership intends to
commit additional funds to the Local Limited Partnership.

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:

			June 30, 2002	December 31, 2001
Capital contributions	$   556,642	$   556,642
	Distributions	(532,379)	(524,423)
	Equity in loss	(197,697)	(205,653)
Advances	0	0
Unamortized costs of acquisitions	    173,434	   173,434
		$         0	$        0

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

This item should be read in conjunction with the financial statements
        and other items contained elsewhere in this report.

Liquidity

The Partnership's only source of cash flow is from distributions
from its investments in Local Limited Partnerships or the sale or
refinancing of the Local Limited Partnerships. There are no current
discussions with potential buyers or properties being actively
marketed.

The two Local Limited Partnerships have regulatory agreements which
restrict distributions to the computation of surplus cash.  The
computation of surplus cash is calculated by subtracting accounts
payable and accrued expenses from cash on hand at the end of the
year.

During the period 2001, cash distributions from Local Limited
Partnerships totaled $21,332 in 2001.  As of June 30, 2002, cash
distributions from Local Limited Partnerships totaled $7,956.  These
funds were utilized to fund operations and repay General Partner
Advances.  The General Partner anticipates it will receive adequate
distributions from the Local Limited Partnerships to maintain
operations.

At June 30, 2002 and December 31, 2001, the Partnership had advances
from the General Partner of $528,586.  At June 30, 2002, the
Partnership had management fees payable to the General Partner of
$10,000.  The Partnership has used excess cash to repay management
fees and these types of  obligations in the past, and the General
Partner expects to continue making payments as cash is available.

There is no guarantee that the Local Limited Partnerships will
generate sufficient cash flow to distribute to the Partnership
amounts sufficient to repay all advances.  If not repaid by cash
flow from operating, they will most likely be repaid with proceeds
from the sale or refinancing proceeds from the Local Limited
Partnerships.

Capital Resources

The General Partner believes that situations may arise where it
would be advantageous to the Partnership to exchange properties in a
tax-free transaction.  The Partnership's basis in its properties has
been reduced through depreciation deductions and other losses to
levels substantially below the amount of debt secured by the
properties.  Additionally, the rental properties owned and operated
by the Local Limited Partnerships have typically computed
depreciation for financial reporting purposes using the straight-
line method over the estimated economic useful life of the property.
For income tax reporting purposes, depreciation generally has been
computed over the same or shorter periods using accelerated methods.
As a result, the carrying values of the Partnership's investments in
Local Limited Partnerships are substantially greater for financial
reporting purposes than for income tax reporting purposes.  Upon
sale or other disposition of a property by the Local Limited
Partnership, the gain recognized by the Partnership for income tax
reporting purposes may be substantially greater than the gain
recorded for financial reporting purposes.  Accordingly, if the
Properties are sold, the Partners, in all likelihood, would
recognize taxable gain in excess of the cash available for
distribution.  If sale proceeds are reinvested in a manner which
permits the original sale to be treated as a like-kind exchange, the
Partners can defer this gain until the new property is sold.
Additionally, the Partnership will receive the benefit of any cash
flow or appreciation in value of the new property.  If reinvestments
were made, it is likely that the acquired properties would be
conventional, multi-family residential projects.

The Partnership has had inquiries about the sale or exchange of
properties in its portfolio.  During 1999, the Partnership sold
Angeles I and Angeles II.  These properties were not exchanged in a
tax free transaction.

The Partnership has made no material commitments for capital
expenditures.

	PART II - OTHER INFORMATION

Item 3 - Change In and Disagreements with Accountants
on Accounting and Financial Disclosure

As of February 8, 2002, Smith & Radigan, Certified Public
Accountants, LLC, the independent accountant previously engaged as
the principal accountant to audit the financial statements of Urban
Improvement Fund Limited - 1972 (the "Registrant," "Issuer" or the
"Partnership"), was terminated.  As of the same date, the firm of
Kenneth W. Bryant Certified Public Accountant was engaged to provide
the service for the Issuer.

The audit reports of Smith & Radigan, Certified Public Accountants,
LLC on the financial statements of the Partnership as of and for the
years ended December 31, 2000 and 1999 did not contain any adverse
opinion or disclaimer of opinion, nor were they qualified or
modified as to uncertainty, audit scope or accounting principles.

Kenneth W. Bryant was a former partner in Smith & Radigan, Certified
Public accountants, LLC while they were the principal auditors of
the Issuer.  Kenneth W. Bryant has formed a new firm and has been
engaged by the General Partner as the principal auditor of the
Issuer.

During the Partnership's two most recent fiscal years and any
subsequent interim period preceding the change, there were no
disagreements with the former accountants on any matter of
accounting principles or practices, financial statement disclosure,
or auditing scope or procedure, which disagreements, if not resolved
to the satisfaction of the former accountants, would have caused it
to make reference to the subject matter of the disagreements in
connection with its report.  The Issuer has provided a copy of this
disclosure to the former accountant, and the Issuer has received
from the former accountant, a letter addressed to the Securities and
Exchange Commission stating whether it agrees with the statements
made by the Issuer.  This letter is filed as an Exhibit to this
report.

There have been no disagreements with accountants on any matters
of accounting principles or practices or financial statement
disclosure.

Items 1 through 3 not applicable

Item 4 - Exhibits and Reports on Form 8-K

(a) Exhibits

Report on Form 8-K filed during the first quarter
of 2002 - Change of Accountants

Letter from former accountant, addressed to the
Commission stating that they agree with the statements
made by the Partnership in the Form 8-K.



SIGNATURES




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







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



Date  August 1, 2002              /s/Michael Fulbright
                                    (Signature)
                   By:  Michael Fulbright, Secretary



Date  August 1, 2002            /s/John M. Orehek
                                   (Signature)
                   By: John M. Orehek, Senior Vice President