UNITED STATES

                    SECURITIES AND EXCHANGE COMMISSION

                               Washington, D.C. 20549

                                    FORM 10-Q

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

              For the quarterly period ended September 30, 1997

                                    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>
<S>                                                <C>                 <C>
                                          September 30,         December 31,
                                                                                1997                              1996
Cash                                       $   23,946          $   59,063
 
Accounts Receivable                             4,932                 -0-

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

  Total Assets                             $   28,878          $   59,063 


                     LIABILITIES AND PARTNERS' (DEFICIT)

Accounts payable                           $      -0-         $     4,000

Management fee payable                        780,833             780,833 
 
Payable to affiliates                         558,586             558,586 

Distribution payable                              641                 641 

  Total Liabilities                         1,340,060           1,344,060 

Partners' (Deficit):
 General Partner - 5 Partnership
 units authorized, issued and
 outstanding                                   (1,135)             (1,103)

Limited Partners - 5,830 Partnership
 units  authorized, issued and
 outstanding                               (1,310,047)         (1,283,894)
                                           (1,311,182)         (1,284,997)

 Total Liabilities and Partners'
  (Deficit)                                $   28,878          $   59,063 
</TABLE>



Unaudited.  See accompanying notes.

<PAGE>
                      CAPITALIZATION AND PARTNERS' (DEFICIT)

                      URBAN IMPROVEMENT FUND LIMITED  - 1972

                            (A Limited Partnership)

<TABLE>
<S>
                                                     <C>                <C>
                                            September 30,        December 31,
                                                1997                 1996

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, 1996                         (6,207,291)         (6,207,291)

Loss for the nine-month period
  ended September 30, 1997                     (26,185)                -0- 
                                            (6,233,476)         (6,207,291)

Partners' (deficit) at end
 of period                                 $(1,311,182)        $(1,284,997)
</TABLE>


Unaudited.  See accompanying notesSTATEMENTS OF INCOME

<PAGE>
                      URBAN IMPROVEMENT FUND LIMITED   1972
                             (A Limited Partnership)
<TABLE>
<S>
                                            <C>                          <C>
                             For the Three-Month           For the Nine-Month 
                                 Period Ended                 Period Ended
                                 September 30,                September 30,
                             1997           1996           1997          1996

Revenues                 $    -0-       $     519       $     424     $  1,122 

Cost and expenses:

 Professional fees          10,482          3,804          17,632       17,954 

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

 Other expenses              5,156            -0-          24,326          -0- 
                            25,638         13,804          71,958       47,954 

Loss before equity in
income (loss)
of Local Limited
Partnerships               (25,638)       (13,285)        (71,534)     (46,832)

Equity in income (loss)
  of Local
  Limited Partnerships      34,908            -0-          45,349       74,478 

Net income (loss)          $ 9,270      $ (13,285)      $ (26,185)    $ 27,646 

Allocation of Net Loss:

 Net income (loss)
 allocated to General
 Partner                  $      7     $      (11)      $     (23)   $     24 

 Net income (loss)
 allocated to Limited
 Partners                    9,263        (13,274)        (26,162)     27,622 

                           $ 9,270      $ (13,285)      $ (26,185)   $ 27,646 

Net loss allocated
 to Limited  Partners
 per Limited  Partner-
 ship Unit (5,830 units
 outstanding at
 September 30,
 1997 and 1996)           $      2      $      (2)      $      (4)    $     5 
</TABLE>


Unaudited.  See accompanying notes.STATEMENTS OF CASH FLOWS

<PAGE>
                     URBAN IMPROVEMENT FUND LIMITED  - 1972
                             (A Limited Partnership)
<TABLE>
<S>
                                            <C>                       <C>
                                 For the Three-Month      For the Nine-Month 
                                    Period Ended             Period Ended
                                    September 30,            September 30,
                                1997            1996     1997           1996

CASH FLOWS FROM
OPERATING ACTIVITIES:
 Net income (loss)           $ 9,270       $ (13,285)  $(26,185)      $27,646 
 Adjustments to recon-
 cile net income (loss)
 to net cash used by
 operating activities:
  Equity in income of
  local limited partner-
  ships                      (34,908)           -0-     (45,349)      (74,478)
  Increase (decrease)
  in accounts payable,
  management fees pay-
  able and payable to
  affiliates                  (4,932)           -0-      (8,932)       10,000 
    Total adjustments        (39,840)           -0-     (54,281)      (64,478)

      Net cash used by
      operating activities   (30,570)       (13,285)    (80,466)      (36,832)

CASH FLOWS FROM
  INVESTING ACTIVITIES:
    Distributions             30,148            -0-      30,148        53,955 
    Net advances paid by
    local limited partner-
    ships                      4,760            -0-      15,201        20,523 
      Net cash provided
       by investing
       activities             34,908            -0-      45,349        74,478 

NET INCREASE (DECREASE)
  IN CASH AND CASH
  EQUIVALENTS                  4,338        (13,285)    (35,117)       37,646 

CASH BALANCE AT
  BEGINNING OF PERIOD         19,608         51,574      59,063           643 


CASH BALANCE AT END
  OF PERIOD                 $ 23,946       $ 38,289    $ 23,946      $ 38,289 
</TABLE>

Unaudited.  See accompanying notes.

<PAGE>
                      NOTES TO SUMMARIZE FINANCIAL INFORMATION
                                  September 30, 1997

                      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 partner-
ships (Local Limited Partnerships), which own federal and state-assisted
housing projects.  The Partnership issued 5,830 units of limited partner-
ship 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 Partner-
ship 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 distributins by 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>
<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,
1997 and 1996, the Partnership has investments in five active real estate
Limited Partnership (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 additinal 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>
<S>
                                                   <C>                   <C>
                                    September 30, 1997     December 31, 1996

Capital contributions                  $  1,954,289           $  1,954,289

Distributions                              (516,980)              (486,833)

Equity in loss                           (1,815,290)            (1,860,639)

Advances                                    (11,628)                 3,574

Unamortized costs of acquisitions           389,609                389,609

                                       $        -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, 1997 and 1996.

<PAGE>

The components of the Partnership's equity in net income (loss) of the
local limited partnership for September 30, 1997 and 1996 is summarized
as follows:

<TABLE>
<S>
                              <C>                                     <C>
                             For the Three-Month        For the Nine-Month 
                                Period Ended               Period Ended
                                September 30,              September 30,
                             1997           1996        1997          1996

Distributions received
from Partnership with
zero investment:
  Lakewood Apartments       $  -0-        $   -0-    $   8,054    $   8,054 
  Angeles II                   -0-            -0-       22,094       45,901 
                               -0-            -0-       30,148       53,955 

Repayment from (advances
to) Partnerships with
zero investment:
  Angeles I                 34,908            -0-       15,201       20,523 
                            34,908            -0-       15,201       20,523 

                          $ 34,908         $  -0-    $  45,349     $ 74,478 
</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, 1997.


<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  December 9, 1997 

       Michael Fulbright
         (Signature)                             
By:  Michael Fulbright, Secretary           

Date  December 9. 1997

       John M. Orehek
         (Signature)                             
By: John M. Orehek, Senior Vice President