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, 1998
    
                                    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
of 1934 during the preceding 12 months and (2) has been subject to such
filing requirements for the past 90 days.  Yes X        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>
                                    September 30,             December 31,
                                        1998                     1997

Cash                                 $   1,517                 $   7,247

Due from affiliates                     16,986                    30,255

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

  Total Assets                      $   18,503                $   37,502


                        LIABILITIES AND PARTNERS' (DEFICIT)

Accounts payable                    $    9,525                $      -0-

Management fee payable                 790,833                    790,833

Payable to affiliates                  558,586                    558,586

 Distribution payable                      641                        641

  Total Liabilities                  1,359,585                  1,350,060

Partners' (Deficit):
 General Partner - 5 Partnership
 units authorized, issued and 
 outstanding                            (1,161)                    (1,127)

 Limited Partners - 5,830 
 Partnership units authorized, 
 issued and outstanding             (1,339,921)                (1,311,431)
                                    (1,341,082)                (1,312,558)

  Total Liabilities and
  Partners' (Deficit)               $   18,503                 $   37,502
</TABLE>


Unaudited.  See accompanying notes.
<PAGE>

                 CAPITALIZATION AND PARTNERS' (DEFICIT)

                  URBAN IMPROVEMENT FUND LIMITED - 1972
                          (A Limited Partnership)

<TABLE>
<CAPTION>
<S>                                 <C>                        <C>
                                    September 30,              December 31,
                                        1998                       1997

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              (271,214)                   (271,214)

Accumulated loss through
 December 31, 1997                   (6,234,852)                 (6,234,852)

Loss for the nine-month period
 ended September 30, 1998               (28,524)                        -0-
                                     (6,263,376)                 (6,234,852)

Partners' (deficit) at end
 of period                          $(1,341,082)                $(1,312,558)
</TABLE>

Unaudited.  See accompanying notes
<PAGE>

                          STATEMENTS OF INCOME
                   URBAN IMPROVEMENT FUND LIMITED - 1972
                         (A Limited Partnership)

<TABLE>
<CAPTION>
<S>                         <C>            <C>        <C>           <C>
                            For the Three-Month       For the Nine-Month
                                Period Ended              Period Ended
                                September 30,             September 30,
                            1998           1997       1998          1997

Revenues                  $      13     $     -0-   $      13    $     424

Cost and expenses:

Professional fees             3,175        10,482       9,525        17,632

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

Other expenses                   34         5,156         851        24,326
                             13,209        25,638      40,376        71,958

Loss before equity
 in loss of Local
 Limited Partnerships       (13,196)      (25,638)    (40,363)      (71,534)

Equity in loss of
Local Limited 
Partnerships                 (4,145)       34,908      11,839        45,349

Net income (loss)         $ (17,341)    $   9,270   $ (28,524)    $ (26,185)

Allocation of Net Loss:

 Net income (loss)
 allocated to General
 Partner                  $     (15)    $        7  $     (25)    $     (23)

 Net income (loss)
 allocated to 
Limited Partners            (17,326)         9,263    (28,499)      (26,162)

                          $ (17,341)    $    9,270  $ (28,524)    $ (26,185)

Net loss allocated to
 Limited Partners per
 Limited  Partnership
 Unit (5,830 units out-
standing at September 30,
1998 and 1997)            $      (3)    $        2  $      (5)    $      (4)
</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>
                              For the Three-Month       For the Nine-Month
                                  Period Ended              Period Ended
                                  September 30,             September 30,
                              1998           1997       1998          1997
CASH FLOWS FROM
OPERATING ACTIVITIES:
 Net income (loss)         $ (17,341)      $  9,270   $(28,524)     $(26,185)
Adjustments to reconcile
net income (loss) to net
cash used by operating
activities:
Equity in income 
of local limited
partnerships                   4,145        (34,908)   (11,839)      (45,349)
Decrease (increase)
in receivable from
affiliates                     4,147            -0-     13,270           -0-
Increase (decrease) in
accounts payable, man-
agement fees payable
and payable to affiliates     13,175         (4,932)     9,524        (8,932)
 Total adjustments            21,467        (39,840)    10,955       (54,281)

  Net cash used by
  operating activities         4,126        (30,570)   (17,569)      (80,466)

CASH FLOWS FROM
INVESTING ACTIVITIES:
 Distributions                   -0-         30,148     23,369        30,148
 Net advances paid by
 local limited
 partnerships                 (4,145)         4,760    (11,530)       15,201
  Net cash provided
  by investing
  activities                  (4,145)        34,908     11,839        45,349

NET INCREASE 
(DECREASE) IN 
CASH AND CASH
 EQUIVALENTS                     (19)         4,338     (5,730)      (35,117)

CASH BALANCE
AT BEGINNING 
OF PERIOD                      1,536         19,608      7,247        59,063

CASH BALANCE 
AT END OF PERIOD           $   1,517       $ 23,946  $   1,517     $  23,946
</TABLE>


Unaudited.  See accompanying notes.
<PAGE>

             NOTES TO SUMMARIZE FINANCIAL INFORMATION
                         September 30, 1998

              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 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.

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
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.

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).  This fee was
not payable during the first six years unless annual tax deductions plus
cash distributions aggregated $550 per unit on a cumulative basis.  The
required level of tax deductions was not achieved; and, accordingly, the
fee was not paid for those years.  However, fees of $240,000 were
recorded as a liability to the General Partner.  Management fees totaling
$550,833 for subsequent years have been accrued to the General Partner
because cash flow was not sufficient to pay the fees.  The Partnership will
also pay the General Partner a liquidation fee for the sale of projects.
<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

                Angeles Apartments Associates, No. 1     December 1975

                Angeles Apartments Associates, No. 2     December 1975
</TABLE>

(1)  This property was sold through a resyndication during August, 1984.

Note 4 - Investments in Local Limited Partnerships - As of September 30,
1998 and 1997, the Partnership has investments in five 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.
<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>
                               September 30, 1998         December 31, 1997

Capital contributions              $ 1,054,287               $ 1,054,287

Distributions                         (540,348)                 (516,980)

Equity in loss                        (792,794)                 (804,632)

Advances                                11,506                       (24)

Unamortized costs of acquisitions      267,349                   267,349

                                   $       -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
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 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, 1998 and 1997.
<PAGE>

The components of the Partnership's equity in net income (loss) of the
local limited partnership for September 30, 1998 and 1997 is summarized
as follows:
<TABLE>
<CAPTION>
<S>                       <C>            <C>           <C>             <C>
                          For the Three-Month           For the Nine-Month
                             Period Ended                  Period Ended
                             September 30,                 September 30,
                          1998           1997           1998          1997

Distributions received
from Partnership with
zero investment:
 Lakewood
  Apartments           $    -0-      $     -0-       $     -0-     $   8,054
 Angeles II                 -0-            -0-          23,369        22,094
                            -0-            -0-          23,369        30,148

Repayment from
 (advances to)
 Partnerships with
 zero investment:
  Angeles I              (4,145)        34,908         (11,530)       15,201
                         (4,145)        34,908         (11,530)       15,201

                       $ (4,145)      $ 34,908       $  11,839     $  45,349
</TABLE>
<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, 1998.
<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 13, 1998                       Michael Fulbright
                                               (Signature)
                               By:  Michael Fulbright, Secretary



Date November 13, 1998                        John M. Orehek
                                                (Signature)
                               By: John M. Orehek, Senior Vice President

<PAGE>