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 August 31, 1999

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


                        Commission File Number 033-67536


                       AMERICAN DREAM ENTERTAINMENT, INC.
                       ---------------------------------
               (Exact name of registrant as specified in charter)



         Minnesota                                     59-3169033
         ---------                                     ----------
(State or other jurisdiction                          (IRS Employer
 of incorporation or organization)                  Identification No.)


1800 East Sahara Avenue, Suite 107, Las Vegas, Nevada                   89104
-----------------------------------------------------                   -----
      (Address of principal executive offices)                       (Zip Code)



       Registrant's telephone Number, including area code: (702) 734-7557

Securities registered pursuant to Section 12(b) of the Exchange Act: None

     Check  whether  the issuer (1) filed all  reports  required  to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing requirements for the past 90 days.

     [ X ] Yes [ ] No

     The number of shares  outstanding of the Issuer's Common Stock,  $.0001 Par
Value, as of September 28, 1999 was 17,980,000.

     Transitional Small Business Disclosure Format:

     [ ] Yes [ X ] No



                     FEDERAL AFFORDABLE HOUSING CORPORATION
                     --------------------------------------
         (Former name or former address, if changed since last report)


<PAGE>


                       American Dream Entertainment, Inc.
                 (f/k/a Federal Affordable Housing Corporation)

                                      Index







                                                                         Page
Part I - Financial Information                                           ----

Item 1. Financial Statements

    Balance Sheet -
        August 31, 1999................................................... 1

    Statements of Operations -
        Three months ended August 31, 1999 and 1998....................... 2

    Statements of Cash Flows -
        Three months ended August 31, 1999 and 1998....................... 3

    Notes to Financial Statements......................................... 4

Item 2. Management's Discussion and Analysis of Financial
        Condition and Results of Operations............................... 5

Part II - Other Information

Item 1. Legal Proceedings................................................. 6

Item 5. Other Information................................................. 6

Item 6. Exhibits and Reports on Form 8-K.................................. 6

         Signatures....................................................... 7

Exhibit 11................................................................ 8


<PAGE>


                       American Dream Entertainment, Inc.
                 (f/k/a Federal Affordable Housing Corporation)

                                  Balance Sheet

                                 August 31, 1999
                                   (Unaudited)


Assets
Current assets:
   Prepaid offering costs                          $              104,098
                                                      --------------------

Other assets:
   Trademark and license                                        5,501,600
   Deposits                                                           550
                                                      --------------------
                                                                5,502,150
                                                      --------------------


                                                   $            5,606,248
                                                      ====================



Liabilities and Stockholders' Deficit
Current liabilities:
   Due to stockholders                             $            5,748,587
   Accrued expenses                                               238,281
                                                      --------------------
Total current liabilities                                       5,986,868
                                                      --------------------


Stockholders' deficit:
   Common stock; $.0001 par value;
      50,000,000 shares authorized;
      17,980,000 shares issued and outstanding                     1,798
   Capital in excess of par value                                152,573
   Accumulated deficit                                          (534,991)
                                                     --------------------
Total stockholders' deficit                                     (380,620)
                                                     --------------------


                                                  $            5,606,248
                                                     ====================





See notes to financial statements.


                                        1
<PAGE>


                                    American Dream Entertainment, Inc.
                              (f/k/a Federal Affordable Housing Corporation)

                                         Statements of Operations
                                                (Unaudited)


<TABLE>
<CAPTION>


                                                                         For the Three Months Ended
                                                                                  August 31,
                                                                  ------------------------------------------
                                                                        1999                    1998
                                                                  -----------------       ------------------


<S>                                                           <C>                     <C>
Operating expenses:
      General and administrative expenses                      $          (130,539)    $             (4,784)
      Interest income                                                            -                    4,530
      Other income                                                               -                    2,229
                                                                  -----------------       ------------------
                                                                          (130,539)                   1,975
                                                                  -----------------       ------------------

Net income (loss)                                              $          (130,539)    $              1,975
                                                                  =================       ==================


Accumulated deficit - beginning of period                                 (404,452)                (154,572)
                                                                  -----------------       ------------------

Accumulated deficit - end of period                            $          (534,991)    $           (152,597)
                                                                  -----------------       ------------------


Income (loss) per common share                                 $             (0.01)    $               0.00
                                                                  =================       ==================


</TABLE>



See notes to financial statements.


                                        2
<PAGE>

<TABLE>
<CAPTION>
                                               American Dream Entertainment, Inc.
                                         (f/k/a Federal Affordable Housing Corporation)

                                                    Statements of Cash Flows
                                                          (Unaudited)





                                                                                                For the Three Months Ended
                                                                                                        August 31,
                                                                                           --------------------------------------
                                                                                                 1999                1998
                                                                                           -----------------   ------------------

<S>                                                                                    <C>                  <C>
Operating activities
        Net income (loss)                                                               $          (130,539) $             1,975
        Adjustments to reconcile net loss to net
          cash (used) provided by operating activities:
            Increase (decrease) in:
                 Accrued expenses                                                                    75,154                    -
                                                                                           -----------------   ------------------
        Total adjustments                                                                            75,154                    -
                                                                                           -----------------   ------------------
        Net cash (used) provided by operating activities                                            (55,385)               1,975
                                                                                           -----------------   ------------------

Investing activities
                                                                                                          -                    -
                                                                                           -----------------   ------------------
        Net cash (used) provided by investing activities                                                  -                    -
                                                                                           -----------------   ------------------

Financing activities
        Advances from stockholders                                                                   55,385                    -
                                                                                           -----------------   ------------------
        Net cash (used) provided by financing activities                                             55,385                    -
                                                                                           -----------------   ------------------

Net (decrease) increase in cash                                                                           -                1,975

Cash, beginning of quarter                                                                                -               68,214
                                                                                           -----------------   ------------------

Cash, end of quarter                                                                    $                 -  $            70,189
                                                                                           =================   ==================


</TABLE>


See notes to financial statements.


                                        3
<PAGE>

                       American Dream Entertainment, Inc.
                 (f/k/a Federal Affordable Housing Corporation)
                          Notes to Financial Statements
                                   (Unaudited)



Note 1 - Basis of presentation

The accompanying unaudited financial statements,  which are for interim periods,
do not include all  disclosures  provided  in the annual  financial  statements.
These  unaudited  financial  statements  should be read in conjunction  with the
financial  statements  and  the  footnotes  thereto  contained  in  the  Audited
Financial  Statements for the year ended May 31, 1999 and 1998 of American Dream
Entertainment, Inc.

In our opinion,  the accompanying  unaudited  financial  statements  contain all
adjustments  (which are of a normal and recurring  nature)  necessary for a fair
presentation  of the financial  statements.  The results of  operations  for the
three month period ended August 31, 1999 are not  necessarily  indicative of the
results to be expected for the full year.

Note 2 - Per share calculations

Per share data was computed by dividing net loss by the weighted  average number
of shares  outstanding  during the three month period ended August 31, 1999. The
weighted average shares  outstanding for the three month period ended August 31,
1999 was 17,980,000 as compared to 493,500 for the three months ended August 31,
1998.

Note 3 - Equity Transactions

Please refer to Audited Financial Statements  consisting of our balance sheet as
of May 31, 1999, and related  statements of operations,  changes in stockholders
equity,  and cash flows  ended May 31,  1999,  as  audited by Pender,  Newkirk &
Company, Certified Public Accountant.


                                       4
<PAGE>

                       AMERICAN DREAM ENTERTAINMENT, INC.
                 (f/k/a Federal Affordable Housing Corporation)


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The  statements  contained  in this Report on Form  10-QSB,  that are not purely
historical, are forward-looking information and statements within the meaning of
Section 27A of the  Securities  Act of 1933 and  Section  21E of the  Securities
Exchange Act of 1934.  These  include  statements  regarding  our  expectations,
intentions,   or  strategies   regarding  future  matters.  All  forward-looking
statements included in this document are based on information available to us on
the date hereof.  It is important to note that our actual  results  could differ
materially from those projected in such forward-looking  statements contained in
this Form 10-QSB. The forward-looking  statements contained here-in are based on
current expectations that involve numerous risks and uncertainties.  Assumptions
relating to the foregoing involve judgments  regarding,  among other things, our
ability to secure  financing  or  investment  for capital  expenditures,  future
economic and competitive market conditions,  and future business decisions.  All
these  matters are difficult or  impossible  to predict  accurately  and many of
which may be beyond our control.  Although  the we believe that the  assumptions
underlying our forward-looking statements are reasonable, any of the assumptions
could  be  inaccurate  and,  therefore,  there  can  be no  assurance  that  the
forward-looking  statements  included  in this  form  10-QSB  will  prove  to be
accurate.


GENERAL

American  Dream   Entertainment,   Inc.,  formerly  Federal  Affordable  Housing
Corporation,  acquired the exclusive  rights in the United States to exploit the
Media Property known as "Robin and The Dreamweavers" under a License and Royalty
Agreement  granted by Dreamweavers N.V. a Curacao Company that has developed the
"Robin and The  Dreamweavers"  concept.  This concept  consists of several media
products: an animated feature length show for television, an animated television
series,  a  soundtrack,  an Internet  Site and games,  a Robin  private label (a
fashion  label with designs  based upon the  character  of  "Robin"),  ancillary
merchandising  products  related  to the  video  games,  toys,  apparel,  school
supplies and cosmetic products.

There have been no revenues to date in the  animated  film  business and we have
incurred  significant  losses  associated  with the  promotion  of our  animated
feature film.  American Dream Entertainment does not expect to generate revenues
until  the  "Robin  and The  Dreamweavers"  project  is  completed  and  becomes
contractually   available  for   telecasting  or   exhibition.   The  amount  of
distribution and licensing revenues earned by American Dream  Entertainment will
be dependent  on, among other  things,  the timeline for the  completion  of the
project and its distribution by others.

Lou Scheimer  Productions  in Los Angeles,  California  has been engaged for the
production  of the "Robin and The  Dreamweavers"  feature  film and a twenty-six
episode television series. The release of the film is expected in February 2000.
Following  this feature film release,  we plan on releasing  the first  thirteen
episodes of the series in June 2000.  American Dream Entertainment has presented
its  "Robin  and The  Dreamweavers"  project  at  "MIPCOM"  in  Cannes,  France.
Subsequently,  we formed an agreement with Tempo Media,  of Copenhagen,  Denmark
for the  distribution of the television  production in the United States and the
United   Kingdom.   This  agreement   guarantees   revenues  of  $9,000,000  for
distribution in these two territories.


RESULTS OF OPERATIONS

Three  months  ended  August 31, 1999  compared to three months ended August 31,
1998

There were no revenues  for the three month  periods  ended  August 31, 1999 and
1998.

For the three month period ended August 31,  1999,  total  selling,  general and
administrative  expenses were $130,539 as compared to $4,784 for the same period
in 1998,  an  increase  of  $125,755.  This  increase  in  selling,  general and
administrative expenses is the result of promotional efforts associated with our
animated feature film and higher  professional  fees which were not pertinent in
the prior year period.

Interest income decreased from $4,530 in the three month period ended August 31,
1998 to -0- in the same period 1999.  This  interest  income was due to interest
earned on a mortgage  receivable  which was  transferred  to AAA  Homes,  Inc at
December 31, 1998, and subsequently the stock distributed to our shareholders of
record as of February 1, 1999.

                                       5
<PAGE>


Net loss was $130,539 for the three months ended August 31, 1999, as compared to
net  income of $1,975 for the  previous  period  ended  August  31,  1998.  This
increase  in net loss is  associated  with  promotional  efforts  related to our
animated  feature film. In addition,  there was no revenue or interest income in
the three month  period ended August 31, 1999 to absorb  selling,  general,  and
administrative expenses incurred during the period.


LIQUIDITY AND CAPITAL RESOURCES

Our  operations  are  currently  funded  through  advances made on our behalf by
Dreamweavers,   N.V.   Through  August  31,  1999,   Dreamweavers  has  advanced
approximately  $248,587  on  our  behalf.  These  amounts  primarily  relate  to
promotional costs and payments made to consultants,  advisors,  reimbursement of
travel expenses and lease expenses.  We are not presently generating  sufficient
revenues from operations to fund capital requirements.  Our ability to alleviate
our working  capital  deficit and obtain  capital  adequate to fund future costs
associated with  operations and expansion plans is dependent upon  Dreamweavers,
N.V. commitment to continue funding our operations, the private placement of our
securities and the realization of projected sales for our products.  There is no
assurance  that such  revenues  will be generated or that other  funding will be
available.


PART II - OTHER INFORMATION


ITEM 1. LEGAL PROCEEDINGS

American Dream Entertainment is not party to any material legal proceedings.

ITEM 5. OTHER INFORMATION

None

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

None

                                       6
<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.



Date:   October 15, 1999            By: /s/ Dirk W. Peschar
                                    -----------------------------
                                    Dirk W. Peschar, Principal Executive Officer
                                    and President




                                       7