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, 2001

	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 small business 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)

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 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,
	   2001    	   2000

Cash				$   144,651	$   144,597

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

Total Assets	$   144,651	$   144,597


	LIABILITIES AND PARTNER - (DEFICIT)

Accounts payable	$     8,000	$    13,900

Management fee payable	10,000	0

Payable to affiliates	528,586	528,586

Distribution payable	        642	        642

Total Liabilities	547,228	543,128

Partners? (Deficit):
General Partner - 5 Partnership units
    authorized, issued and outstanding	(341)	(337)

  Limited Partners - 5,830 Partnership units
    authorized, issued and outstanding	   (402,236)	   (398,194)
 				   (402,577)	   (398,531)

Total Liabilities and Partners?
(Deficit)	$   144,651	$   144,597





















Unaudited.  See accompanying notes.

	CAPITALIZATION AND PARTNERS? (DEFICIT)

	URBAN IMPROVEMENT FUND LIMITED ? 1972
	(A Limited Partnership)




	June 30,	December 31,
	   2001    	   2000
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, 2000	(4,730,889)	(4,730,889)

Loss for the six-month period
ended June 30, 2001	     (4,046)	          0
	 (6,237,577)	 (6,233,531)

Partners? (deficit) at end of period	$  (402,577)	$  (398,531)




























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,
	   2001   	   2000   	   2001   	   2000

Revenues								$  14,856	$     530	$  16,700	$   1,774

Cost and expenses:

Professional fees			4,000	4,000	8,000	8,000

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

Other expense					      800	    1,373	      800	    2,978
											14,800	15,373	28,800	30,978

Income (loss) before equity
	in income of Local Limited
	Partnerships					56	(14,843)	(12,100)	(29,204)


Equity in income of Local
	Limited Partnerships	    8,054	   28,500	    8,054	   28,500


Net income (loss)				$   8,110	$  13,657	$  (4,046)	$     (704)

Allocation of Net Income (Loss):

Net income (loss) allocated
  to General Partner	$       8	$      12	$      (4)	$      (1)

Net income (loss) allocated
  to Limited Partners	    8,102	   13,645	   (4,042)	     (703)

											$   8,110	$  13,657	$  (4,046)	$     (704)

Net income (loss) allocated
  to Limited Partners per
  Limited Partnership Unit
  (5,830 units outstanding
  at June 30, 2001 and 2000)	$       1	$       2	$      (1)	$        0












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,
	   2001   	   2000   	   2001   	   2000
CASH FLOWS FROM OPERATING
  ACTIVITIES:
Net loss								$   8,110	$  13,657	$  (4,046)	$    (704)
Adjustments to reconcile
  net loss to net cash
  used by operating
  activities:
      Increase (decrease) in
        accounts payable,
        management fees	(8,054)	(28,500)	(8,054)	(28,500)
        payable and payable
        to affiliates		    4,000	  (35,935)	    4,100	  (62,749)
          Total adjustments	(4,054)	(64,435)	(3,954)	(91,249)

  Net cash provided
    (used) by
    operating
    activities					    4,056	  (50,778)	   (8,000)	  (91,953)

CASH FLOWS FROM INVESTING
	ACTIVITIES:
		Distributions				    8,054	   28,500	    8,054	   28,500
			Net cash provided
				(used) by investing
				activities			    8,054	   28,500	    8,054	   28,500

NET INCREASE (DECREASE) IN
  CASH AND CASH EQUIVALENTS	12,110	(22,278)	54	(63,453)

CASH BALANCE AT BEGINNING OF
  PERIOD								  132,541	  193,958	  144,597	  235,133

CASH BALANCE AT END OF PERIOD 	$ 144,651	$ 171,680	$ 144,651	$  171,680















Unaudited.  See accompanying notes.

NOTES TO SUMMARIZE FINANCIAL INFORMATION
June 30, 2001

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, 2001, 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.

302:   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.

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.

Fair Value of Financial Instruments and Use of Estimates
The Partnership estimates that the aggregate fair value of all
financial instruments at June 30, 2001 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.

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.
For the three-month period ended June 30, 2001 and 2000, the minimum
Fee of $10,000 has been accrued.  At June 30, 2001, management fees
of $10,000 has been recorded as a liability 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.

The General Partner of the partnership is a corporation in which
Paul H. Pfleger has a one-hundred percent interest.  Partnership
Services, Inc. (PSI), another corporation in which Paul H. Pfleger
has a one-hundred percent interest, 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 became the General
        Partner in three of the Local Limited Partnerships in which the
        Partnership had investments.

			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,
        2001, 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, 2001	December 31, 2000
Capital contributions	$   556,642	$   556,642
	Distributions	(524,423)	(516,369)
	Equity in loss	(205,653)	(213,707)
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.

The Partnership has followed the practice of investing available
funds not used in the purchase of properties or in operations into
        short-term investments. 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 (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 $10,000 for
         the three-month period ended June 30, 2001 and 2000.

The components of the Partnership's equity in net income of the
Local Limited Partnerships for the three months and six months
ended June 30, 2001 and 2000, is summarized as follows:

Distributions received from partnerships
	With zero investments:
			  2001  	  2000

	  Lakewood Associates	$ 8,054	$     0
	  The Villages	      0	 28,500

			$ 8,054	$28,500

Liquidity
The Partnership's only source of cash flow is from distributions
from its investments 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 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.

At June 30, 2001, the Partnership had advances from the General
Partner of $528,586.  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 and
accrued management fees.  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 additional situations may arise
where it would be advantageous to the Partners 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 Partnership, 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
Partnership 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 made no material commitments for capital expenditures.

	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
             June 30, 2001.

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	July 31, 2001		/s/Michael Fulbright
			(Signature)
			By:  Michael Fulbright, Secretary



Date	July 31, 2001		/s/John M. Orehek
			(Signature)
				By: John M. Orehek, Senior Vice President




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