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 September 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



                                September 30,    December 31,
                                    2002             2001

Cash                             $    56,974    $    97,757

Total Assets                     $    56,974    $    97,757


LIABILITIES AND PARTNERS' - (DEFICIT)

Accounts payable                 $         0    $     2,334

Advance from General Partner         528,586        528,586

Distribution payable                     642            642

Total Liabilities                    529,228        531,562

Partners' (Deficit):
General Partner - 5 Partnership
 units authorized, issued and
 outstanding                            (400)          (368)

Limited Partners - 5,830 Partner-
 ship units authorized, issued
 and outstanding                    (471,854)      (433,437)
                                    (472,254)      (433,805)

Total Liabilities and
 Partners'(deficit)              $    56,974    $    97,757




Unaudited.  See accompanying notes.

CAPITALIZATION AND PARTNERS' (DEFICIT)

URBAN IMPROVEMENT FUND LIMITED - 1972
(A Limited Partnership)




                                     September 30,   December 31,
                                         2002            2001
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, 2001                     (4,766,163)    (4,766,163)

Loss for the nine-month period
 ended September 30, 2002                (38,449)             0
                                      (6,307,254)    (6,268,805)

Partners' (deficit) at end
 of period                           $  (472,254)   $  (433,805)






Unaudited.  See accompanying notes

STATEMENTS OF INCOME

URBAN IMPROVEMENT FUND LIMITED - 1972
(A Limited Partnership)



                     For the Three-Month     For the Nine-Month
                        Period Ended            Period Ended
                        September 30,           September 30,
                       2002      2001        2002          2001

Revenues          $     146   $   1,093   $     575    $  17,793

Cost and expenses:

Professional fees     8,137       9,000      15,717       17,000

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

Other expense            28         634       1,263        1,434
                     18,165      19,634      46,980       48,434

Loss before
 Equity in
 loss of Local
 Limited
 Partnerships       (18,019)    (18,541)    (46,405)     (30,641)

Equity in
 income of
 Local Limited
 Partnerships             0           0       7,956        8,054

Net loss          $ (18,019)  $ (18,541)  $ (38,449)   $ (22,587)

Allocation of
 Net Loss:

Net loss
 allocated to
 General Partner        (15)        (16)        (34)         (20)

Net loss
 allocated to
 Limited Partners    (18,004)   (18,525)    (38,415)     (22,567)

                   $ (18,019) $ (18,541)  $ (38,449)   $ (22,587)

Net loss
 allocated to
 Limited Partners
 per Limited
 Partnership Unit
 (5,830 units out-
 standing at
 September 30,
 2002 and 2001)    $      (3) $      (3)   $     (7)   $      (4)



Unaudited.  See accompanying notes

STATEMENTS OF CASH FLOWS

URBAN IMPROVEMENT FUND LIMITED - 1972
(A Limited Partnership)



                    For the Three-Month      For the Nine-Month
                       Period Ended             Period Ended
                       September 30,            September 30,
                    2002         2001         2002         2001
CASH FLOWS FROM
 OPERATING
 ACTIVITIES:
  Net income
  (loss)        $ (18,019)   $ (18,541)   $ (38,449)   $ (22,587)
Adjustments to
 reconcile net
 income to net
 cash used by
 operating
 activities:
  Equity in
 income of
 local limited
 partnerships           0            0       (7,956)      (8,054)
Increase
 (decrease)
 in accounts
 payable,
 management
 fees payable
 and payable
 to affiliates    (13,999)       (8,000)     (2,334)      (3,900)
Total
 Adjustments      (13,999)       (8,000)    (10,290)     (11,954)

Net cash
 used by
 operating
 activities       (32,018)      (26,541)    (48,739)     (34,541)

CASH FLOWS
 FROM INVESTING
 ACTIVITIES:
  Distributions         0             0       7,956        8,054
  Net cash
 provided by
 investing
 activities             0             0       7,956        8,054

NET INCREASE
 (DECREASE) IN
 CASH AND CASH
 EQUIVALENTS      (32,018)      (26,541)    (40,783)     (26,487)

CASH BALANCE
 AT BEGINNING
 OF PERIOD         88,992       144,651      97,757      144,597

CASH BALANCE
 AT END
 OF PERIOD      $  56,974    $  118,110   $  56,974   $  118,110




Unaudited.  See accompanying notes.



NOTES TO SUMMARIZE FINANCIAL INFORMATION
September 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 September 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 September 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 September 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 September 30, 2002, the Partnership has recorded and paid
management fees of $30,000.

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
September 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:

                         September 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 September 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 September 30, 2002 and December 31, 2001, the Partnership had
advances from the General Partner of $528,586.  At September 30,
2002, the Partnership has recorded and paid management fees of
$30,000 to the General Partner.  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

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, 2002.


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  October 30, 2002             /s/Michael Fulbright
                                        (Signature)
                         By:  Michael Fulbright, Secretary



Date  October 30, 2002            /s/John M. Orehek
                                       (Signature)
                        By: John M. Orehek, Senior Vice President