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 June 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)
<TABLE>
<CAPTION>
                                 ASSETS

                                         June 30,         December 31,
                                           1998               1997
<S>                                   <C>                  <C>
Cash                                  $   1,536            $   7,247

Due from affiliates                      21,133               30,255

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

  Total Assets                       $   22,669           $   37,502


                     LIABILITIES AND PARTNERS' (DEFICIT)

Accounts payable                     $    6,350           $      -0-

Management fee payable                  780,833              790,833

Payable to affiliates                   558,586              558,586

Distribution payable                        641                  641

 Total Liabilities                    1,346,410            1,350,060
    
Partners' (Deficit):
General Partner - 5 Partnership
units authorized, issued and
outstanding                              (1,146)              (1,127)

Limited Partners - 5,830
Partnership units
authorized, issued
and outstanding                      (1,322,595)          (1,311,431)
                                     (1,323,741)          (1,312,558)

Total Liabilities and Partners'
(Deficit)                            $   22,669           $   37,502
</TABLE>

Unaudited.  See accompanying notes.
<PAGE>

                 CAPITALIZATION AND PARTNERS' (DEFICIT)

                  URBAN IMPROVEMENT FUND LIMITED - 1972
                           (A Limited Partnership)

<TABLE>
<CAPTION>
                                      June 30,                 December 31,
                                        1998                       1997
<S>                               <C>                           <C>
 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 six-month period
 ended June 30, 1998                  (11,183)                        -0-
                                   (6,246,035)                  (6,234,852)

 Partners' (deficit) at end
 of period                        $(1,323,741)                 $(1,312,558)
</TABLE>

Unaudited.  See accompanying notes
<PAGE>

                          STATEMENTS OF INCOME
                    URBAN IMPROVEMENT FUND LIMITED - 1972
                           (A Limited Partnership)
<TABLE>
<CAPTION>
                                For the Three-Month      For the Six-month
                                   Period Ended             Period Ended
                                     June 30,                 June 30,
                                1998          1997        1998          1997
<S>                         <C>            <C>         <C>           <C>
Revenues                    $     -0-      $      93   $     -0-     $   424
 Cost and expenses:

 Professional fees              3,175          3,405       6,350       7,150

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

 Other expenses                   817          9,452         817      19,170
                               13,992         22,857      27,167      46,320

Loss before equity
in loss of Local 
Limited Partnerships          (13,992)       (22,764)    (27,167)    (45,896)

Equity in loss of Local
Limited Partnerships           15,984         10,441      15,984      10,441

Net income (loss)           $   1,992      $ (12,323)  $ (11,183)  $ (35,455)

Allocation of Net Loss:

Net income (loss)
allocated  to 
General Partner             $       1     $      (10)  $     (10)  $     (30)

Net income (loss)
allocated to
Limited Partners                1,991        (12,313)     (11,173)    (35,425)

                            $   1,992     $  (12,323)   $ (11,183)  $ (35,455)
 
Net loss allocated to
Limited Partners per
Limited  Partnership
Unit (5,830 units out-
standing at June 30,
1998 and 1997)             $     -0-     $       (2)    $      (2)  $     (6)
</TABLE>


Unaudited.  See accompanying notes.
<PAGE>

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

<TABLE>
<CAPTION>
                           For the Three-Month      For the Six-month
                              Period Ended             Period Ended
                                 June 30,                 June 30,
                            1998         1997         1998       1997
<S>                      <C>           <C>          <C>        <C>
CASH FLOWS FROM 
OPERATING
ACTIVITIES:
Net income (loss)       $   1,992       $(12,323)   $(11,183)   $(35,455)
Adjustments to
reconcile net
income (loss) to
net cash used by
operating activities:
Equity in income of 
local limited partner-
ships                     (15,983)       (10,441)    (15,984)   (10,441)
Decrease (increase)
in  receivable from 
affiliates                  9,123            -0-       9,123        -0-
Increase (decrease)
in accounts payable,
management fees 
payable and payable
to affiliates             (16,827)          6,253      (3,651)    (4,000)
  Total adjustments       (23,687)         (4,188)    (10,512)   (14,441)

  Net cash used by
  operating activities    (21,695)        (16,511)    (21,695)   (49,896)

CASH FLOWS FROM
INVESTING ACTIVITIES:
Distributions              23,369          30,148      23,369     30,148 
Net advances paid
by local limited
partnerships               (7,385)        (19,707)     (7,385)   (19,707)
 Net cash provided
 by investing
 activities                15,984          10,441      15,984     10,441

NET INCREASE 
(DECREASE) IN
 CASH AND CASH
 EQUIVALENTS               (5,711)         (6,070)     (5,711)    39,455

CASH BALANCE 
AT BEGINNING
 OF PERIOD                 17,247          25,678       7,247     59,063

CASH BALANCE 
AT END OF
 PERIOD                 $   1,536       $  19,608  $   1,536   $  19,608
</TABLE>

Unaudited.  See accompanying notes.
<PAGE>

             NOTES TO SUMMARIZE FINANCIAL INFORMATION
                            June 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
$540,833 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>
                                                    Date PSI Became
     Local Limited Partnership                      General Partner

    (1)<F1> Alms Hill Apartments Limited             December 1977

     Angeles Apartments Associates, No. 1             December 1975

     Angeles Apartments Associates, No. 2              December 1975
<FN>
<F1>
(1)  This property was sold through a resyndication during August 1984.
</FN>
</TABLE>

Note 4 - Investments in Local Limited Partnerships - As of June 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>
                                 June 30, 1998          December 31, 1997
<S>                              <C>                       <C>
Capital contributions            $ 1,054,287               $ 1,054,287

Distributions                       (540,348)                 (516,980)

Equity in loss                      (788,649)                 (840,632)

Advances                               7,361                       (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 $20,000 for the
six-month period ended June 30, 1998 and 1997.
<PAGE>

The components of the Partnership's equity in net income (loss) of the
local limited partnership for June 30, 1998 and 1997 is summarized as
follows:
<TABLE>
<CAPTION>
                             For the Three-Month         For the Six-month
                                Period Ended                Period Ended
                                  June 30,                     June 30
                             1998          1997           1998         1997
<S>                        <C>         <C>            <C>          <C>        
Distributions received from
Partnership with zero
investment:
 Lakewood Apartments       $   -0-     $   8,054      $     -0-    $   8,054
 Angeles II                 23,369        22,094         23,369       22,094
                            23,369        30,148         23,369       30,148

Repayment from
(advances to)
Partnerships with
zero investment:
 Angeles I                  (7,385)      (19,707)        (7,385)     (19,707)
                            (7,385)      (19,707)        (7,385)     (19,707)

                          $ 15,984     $  10,441      $  15,984    $  10,441
</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 June 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 August 18, 1998                        Michael Fulbright
                                               (Signature)
                                    By:  Michael Fulbright, Secretary



Date August 18, 1998                           John M. Orehek
                                                  (Signature)
                                   By: John M. Orehek, Senior Vice President
<PAGE>