UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q


(Mark One)
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
    Exchange Act of 1934


For the period ended  September 30, 2000


[ ] 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  0-13520


                  LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP
             (Exact name of registrant as specified in its charter)


             Massachusetts                              04-2828131
     (State or other jurisdiction of                (I.R.S. Employer
       incorporation or organization)                Identification No.)


100 Second Avenue,  Needham, MA                                 02494
(Address of principal executive offices)                     (Zip Code)


Registrant's telephone number, including area code  (781) 444-5251


                   Former address, if changed from last report


     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Sections 13 or 15(d) of the  Securities  Exchange Act of
1934  during  the  preceding  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

                            Exhibits Index on Page 16

                                  Page 1 of 17

<PAGE>



                  LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP
                      (A Massachusetts Limited Partnership)

                                      INDEX




                                                                       Page
                                                                       ----

Part I:  Financial Information

Item 1. Financial Statements:

        Balance Sheets, September 30, 2000 and December 31, 1999        3-4

        Statements of Operations for the Nine Months
          Ended September 30, 2000 and 1999                               5

        Statements of Cash Flows for the Nine Months Ended
          September 30, 2000, and 1999                                    6

        Notes to Financial Statements                                  7-10

Item 2. Management's Discussion and Analysis of Financial
        Condition and Results of Operations                           11-15

Part II: Other Information

Item 3. Defaults Upon Senior Securities                                 16

Item 6. Exhibits and Reports on Form 8-K                                16


                                       2

<PAGE>
<TABLE>
<CAPTION>

                  LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP
                      (A Massachusetts Limited Partnership)

                                 BALANCE SHEETS


                                                     (Unaudited)           (Audited)
                                                 September 30, 2000    December 31, 1999
                                                 ------------------    -----------------
<S>                                               <C>                    <C>
Assets

Current assets:

  Cash and cash equivalents                        $    311,549           $    526,940

  State tax refund receivable                           211,271                     --
  Deferred legal fees                                    49,447                 40,109
                                                   ------------           ------------

    Total current assets                                572,267                567,049


  Investments in local limited
      partnerships                                      885,066              1,475,083
                                                   ------------           ------------

    Total assets                                   $  1,457,333           $  2,042,132
                                                   ============           ============




                                       (continued)

                                            3
<PAGE>
<CAPTION>

                  LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP
                      (A Massachusetts Limited Partnership)

                                BALANCE SHEETS (continued)


                                                     (Unaudited)           (Audited)
                                                 September 30, 2000    December 31, 1999
                                                 ------------------    -----------------
<S>                                               <C>                    <C>
Liabilities and Partners' Deficit

Current liabilities:
  Purchase Money Notes, current maturities         $ 10,586,936           $ 12,436,808
  Accounts payable to affiliates                        261,771                188,272
  Accounts payable                                           --                  1,565
  Accrued expenses                                       51,968                 98,597
  Accrued interest payable                              138,038                141,318
                                                   ------------           ------------

    Total current liabilities                        11,038,713             12,866,560

Purchase money notes, net of current maturities              --                648,199
                                                   ------------           ------------

    Total liabilities                                11,038,713             13,514,759
                                                   ------------           ------------

Contingencies                                                --                     --

Partners' deficit:
  General partners:
    Capital contributions                                 4,202                  4,202
    Capital distributions                                  (159)                  (128)
    Accumulated losses                                 (191,946)              (210,889)
                                                   ------------           ------------
                                                       (187,903)              (206,815)
                                                   ------------           ------------

  Limited partners (21,566 Units at
      September 30, 2000 and December 31, 1999):
    Capital contributions (net of
      offering costs of $1,134,440)                   9,649,520              9,649,520
    Capital distributions                              (465,762)              (462,706)
    Accumulated losses                              (18,577,235)           (20,452,626)
                                                   ------------           ------------
                                                     (9,393,477)           (11,265,812)
                                                   ------------           ------------

    Total partners' deficit                          (9,581,380)           (11,472,627)
                                                   ------------           ------------

    Total liabilities and partners'
      deficit                                      $  1,457,333           $  2,042,132
                                                   ============           ============

<FN>
        The accompanying notes are an integral part of these financial statements.
</FN>
</TABLE>

                                            4

<PAGE>
<TABLE>
<CAPTION>

                                 LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP
                                     (A Massachusetts Limited Partnership)

                                           STATEMENTS OF OPERATIONS
                                                  (Unaudited)

                                            For the Three Months Ended            For the Nine Months Ended
                                                   September 30,                         September 30,
                                            --------------------------            -------------------------

                                             2000              1999                  2000            1999
                                             ----              ----                  ----            ----

<S>                                         <C>               <C>                 <C>              <C>
Interest income                              $3,733            $6,402              $13,899          $101,042
                                          ---------          --------           ----------        ----------


Expenses:
 Interest expense                           201,690           356,272              560,962         1,491,615
 general and
 administrative expenses                     42,511            32,672              100,501            99,030
                                          ---------          --------           ----------        ----------

Total expenses                              244,201           388,944              661,463         1,590,645
                                          ---------          --------           ----------        ----------

Loss before equity in local
limited partnership investments
and Extraordinary items                    (240,468)         (382,542)            (647,564)       (1,489,603)

Equity in income of Local
Limited Partnership
investments                                 (12,011)            6,408              109,599            78,777
                                          ---------          --------           ----------        ----------

Net Loss before
extraordinary items                        (252,479)         (376,134)            (537,965)       (1,410,826)

Extraordinary items:
gain on sale of investments
in Local Limited Partnerships                (1,800)          344,472            2,432,299         2,998,579
                                          ---------          --------           ----------        ----------

Net income (loss)                         $(254,279)         $(31,662)          $1,894,334        $1,587,753
                                          =========          ========           ==========        ==========
Units used in computing
basic net income(loss) per
Limited Partnership Unit                     21,566            21,566               21,566            21,566
                                          =========          ========           ==========        ==========

Basic loss per Limited
Partnership Unit before
extraordinary items                         $(11.59)          $(17.27)             $(24.70)          $(64.76)
                                          =========          ========           ==========        ==========

Basic net income (loss) per
Limited Partnership Unit                    $(11.67)           $(1.45)              $86.96            $72.89
                                          =========          ========           ==========        ==========


<FN>
                  The accompanying notes are an integral part of these financial statements.
</FN>
</TABLE>

                                                      5

<PAGE>
<TABLE>
<CAPTION>
                                       LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP
                                           (A Massachusetts Limited Partnership)

                                                 STATEMENTS OF CASH FLOWS
                                                        (Unaudited)

                                                                                            For the Nine Months Ended
                                                                                                 September 30,
                                                                                      -----------------------------------

                                                                                          2000                   1999
                                                                                          ----                   ----
<S>                                                                                  <C>                    <C>
Cash flows from operating activities:
  Cash distributions from Local Limited
   Partnerships                                                                       $   129,618            $   251,371
  Interest payment on purchase money notes                                               (123,760)              (245,730)
  Uncashed interest payments on purchase
   money notes from prior years                                                                --                    841
  Cash paid for general and administration expenses                                       (47,567)              (123,067)
  Interest received                                                                        13,899                 19,287
                                                                                      -----------            -----------
    Net cash used by operating activities                                                 (27,810)               (97,298)
                                                                                      -----------            -----------

Cash Flows from financing activity:
  Principal and accrued interest received upon repayment
     of Linden Park Apartments notes receivable                                                --                241,058
  Deemed capital distributions in respect of state taxes
     withheld by Local Limited Partnerships                                                (3,087)                (5,641)
                                                                                      -----------            -----------
    Net cash provided by (used in) financing activities                                    (3,087)               235,417
                                                                                      -----------            -----------
Cash Flows from investing activities:
  Cash proceeds from sale of investments in
   Local Limited Partnerships                                                             100,000                879,411
  Closing costs                                                                           (56,352)               (77,416)
  Cash paid for deferred legal fees                                                       (16,871)                    --
  Capital distributions to limited partners                                                    --               (449,999)
  Estimated state taxes paid from proceeds from sale of
   investments in Local Limited Partnerships                                             (211,271)                    --
                                                                                      -----------            -----------
    Net cash provided (used) by investing activities                                     (184,494)               351,996
                                                                                      -----------            -----------

Net increase (decrease) in cash and cash equivalents                                     (215,391)               490,115

Cash and cash equivalents at:
  Beginning of period                                                                     526,940                 42,284
                                                                                      -----------            -----------
  End of period                                                                       $   311,549            $   532,399
                                                                                      ===========            ===========

Reconciliation of net loss before extraordinary items to net cash used by operating
activities:

Net loss before extraordinary items                                                   $  (537,965)           $(1,410,826)
Adjustments to reconcile net loss to net
  cash used by operating activities:
    Share of income of Local Limited
      Partnership investments                                                            (109,599)               (78,777)
    Cash distributions from Local Limited
      Partnerships                                                                        129,618                251,371
    Interest expense added to purchase money
      notes, net of discount amortization                                                 440,482              1,462,940
    Interest income added to long-term
      notes receivable, net of discount
      amortization, and interest received                                                      --                (81,755)
    (Decrease) increase in:
      Accrued interest payable                                                             (3,280)              (216,213)
      Accounts payable to affiliates                                                       73,499                 (9,498)
      Accounts payable                                                                     (1,565)                (1,040)
      Accrued expenses                                                                    (19,000)               (13,500)
                                                                                      -----------            -----------
    Net cash provided by operating activities                                         $   (27,810)           $   (97,298)
                                                                                      ===========            ===========

<FN>
                        The accompanying notes are an integral part of these financial statements.
</FN>
</TABLE>

                                                            6
<PAGE>

                  LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP
                      (A Massachusetts Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)

1.      Organization of Partnership

        Liberty Housing Partners Limited  Partnership  (the  "Partnership")  was
formed under the Massachusetts Uniform Limited Partnership Act on March 20, 1984
for the primary purpose of investing in other limited partnerships which own and
operate government  assisted  multi-family  rental housing complexes (the "Local
Limited Partnerships").


2.      Significant Accounting Policies

        In the  opinion  of the  General  Partner,  the  accompanying  unaudited
financial  statements  contain all normal  recurring  adjustments  necessary  to
present  fairly the financial  position of the  Partnership  as of September 30,
2000. The financial statements,  which do not include all of the information and
footnote  disclosures  required by  generally  accepted  accounting  principles,
should  be  read  in  conjunction  with  the  Partnership's   audited  financial
statements for the year ended December 31, 1999.


3.      Investments in Local Limited Partnerships

        The following is a summary of  cumulative  activity for  investments  in
Local Limited Partnerships since their dates of acquisition:

                                               (Unaudited)         (Audited)
                                              September 30,       December 31,
                                                   2000               1999
                                              -------------       ------------

Total acquisition cost to the Partnership      $ 9,356,379         $ 9,356,379

    Additional capital contributed by the
        Partnership                                 11,425              11,425

    Partnership's share of losses of Local
        Limited Partnerships                    (3,343,091)         (3,450,761)

    Cash distributions received from Local
        Limited Partnerships                    (4,199,189)         (4,069,602)

    Cash distributions received from Local
        Limited Partnerships recognized as
        investment income                           95,060              93,162

    Value of Local
        Limited Partnership investments sold    (1,035,518)           (465,520)
                                               -----------         -----------

Investments in Local Limited Partnerships      $   885,066         $ 1,475,083
                                               ===========         ===========


                                   (Continued)

                                       7
<PAGE>

                  LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP
                      (A Massachusetts Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)

3.  Investments in Local Limited Partnerships, continued

     Summarized financial information from the combined statements of operations
of Local Limited  Partnerships  for the periods owned by the  Partnership  is as
follows:

                                               For the Nine Months Ended
                                                      September 30,
                                             -----------------------------
                                                2000              1999
                                                ----              ----

Rental and other income                      $ 2,409,534      $ 3,547,197
Expenses:
  Operating expenses                           1,521,499        2,304,171
  Interest expense                               432,016          660,498
  Depreciation and amortization                  439,605          647,948
                                             -----------      -----------
    Total expenses                             2,393,120        3,612,617
                                             -----------      -----------

Net income (loss)                            $    16,414      $   (65,420)
                                             ===========      ===========

Partnership's share of net income (loss)     $    18,888      $   (63,113)
                                             ===========      ===========

Other partners' share of net income (loss)   $    (2,474)     $    (2,307)
                                             ===========      ===========

        The  differences  between  the  Partnership's  share of  income in Local
Limited Partnership investments in the Partnership's Statement of Operations for
the nine months  ended  September  30, 2000 and 1999 and the share of net income
(loss)  in  the  above  Summarized  Statements  of  Operations  consists  of the
following:

                                                     For the Nine Months Ended
                                                           September 30,
                                                    --------------------------
                                                       2000             1999
                                                       ----             ----
Share of income in Local Limited
  Partnership Investments in the
  Partnership's Statement of Operations              $ 109,599       $  78,777
Partnership's share of income (loss) in the
  above summarized Statements of Operations             18,888         (63,113)
                                                     ---------       ---------
           Difference                                $  90,711       $ 141,890
                                                     =========       =========

Partnership's unrecorded share of losses (income):
  Linden Park                                        $      --       $  54,521
  Brierwood Ltd.                                         8,133          17,409
  Brierwood II, Ltd.                                    18,087          10,666
  Pine Forest Apartments, Ltd.                          32,254          14,354
  Surry Manor                                           17,011          37,331
  Glendale Manor                                         6,092              --
  Meadowwood                                             7,206              --

Prior year loss carry forward applied
 against 1999 net income
  Meadowwood                                                --          (7,255)
  Glendale Manor                                            --          (4,138)
                                                     ---------       ---------
       Subtotal                                         88,783         122,888
Cash Distributions
 recorded as investment income                           1,928          19,002
                                                     ---------       ---------

Total                                                $  90,711       $ 141,890
                                                     =========       =========

                                   (Continued)

                                       8
<PAGE>

                  LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP

                      (A Massachusetts Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)


3.  Investments in Local Limited Partnerships, continued

        The  Partnership  recorded  its  share  of  losses  in  Brierwood  Ltd.,
Brierwood II, Ltd., Pine Forest  Apartments,  Ltd., Surry Manor,  Glendale Manor
and  Meadowwood,  LTD.,  until  its  related  investment  was  reduced  to zero.
Subsequent  to  that  point,   further   losses  were  suspended  and  any  cash
distributions  received  from  these  six  partnerships  have  been  or  will be
recognized  as  investment  income  rather than as a reduction in  Investment in
Local Limited  Partnerships on the Partnership's  Balance Sheet. The Partnership
is not obligated to make additional capital contributions to fund the deficit in
its capital accounts in these Local Limited Partnerships.

        Certain Local Limited  Partnerships  have made payments on behalf of the
Partnership for non-resident  state  withholding  taxes in accordance with state
income tax  regulations.  These  amounts  totaling  $3,087 during the first nine
months  of 2000 have  been  treated  as  distributions  from the  Local  Limited
Partnerships  and a  distribution  to the partners of Liberty  Housing  Partners
Limited Partnership.


4.  Transactions with Affiliates

        During  the  nine  months  ended   September  30,  2000,  and  1999  the
Partnership recognized general and administrative  expenses owed to the Managing
General Partner, as follows:
                                                 2000            1999
                                                 ----            ----
Reimbursement of Partnership
  administration expenses                      $36,000         $37,023
Partnership management fees                     37,500          37,500

        As of September  30, 2000,  and December 31, 1999,  accounts  payable to
affiliates totaling $261,771 and $188,272, respectively,  represent amounts owed
for  reimbursements  of  Partnership  administration  expenses of  $132,000  and
$96,001,  respectively, and partnership management fees of $129,771 and $92,271,
respectively.


                                   (Continued)

                                       9
<PAGE>



                  LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP
                      (A Massachusetts Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)


5.  Statement of Distributable Cash from Operations

        Distributable  Cash From  Operations for the nine months ended September
30, 2000, as defined in Section 17 of the Partnership Agreement, is as follows:

Interest income per Statement of Operations            $  13,899

Less: General and administrative expenses per
         Statement of Operations                        (100,501)
                                                       ---------

Cash from Operations, as defined                         (86,602)
                                                       ---------


Distributable Cash from Operations, as defined         $      --
                                                       =========


                                       10

<PAGE>

                  LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP
                      (A Massachusetts Limited Partnership)

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

Liquidity and Capital Resources

       Disposition of Investments

       On February 1, 2000, the  Partnership  sold its 98% interest as a limited
partner (the  "Partnership  Interest") in Osuna Apartments  Company ("Osuna") to
the Sovereign  Management  Corporation,  the company retained by Osuna to manage
its apartment  complex (the  "Purchaser").  In consideration for the sale of the
Partnership  Interest,  the  Partnership  received a net cash purchase  price of
$100,000.  In connection  with the sale, the holders of the Purchase Money Notes
(the "Notes")  issued by the  Partnership in connection  with its acquisition of
the  Partnership  Interest  released the  Partnership  from all  liabilities  in
connection  with  the  Notes.  After  transaction   expenses,   the  Partnership
recognized a gain estimated to be $2,432,299 on the sale of the investment.

       As of  September  30,  2000 eight  series of the  Purchase  Money  Notes,
relating to  Fuquay-Varina  Homes for the  Elderly,  Ltd.,  Oxford Homes for the
Elderly,   Ltd.,  Williamston  Homes  for  the  Elderly,  Ltd.,  Glendale  Manor
Apartments,  Austintown  Associates,  Meadowwood Ltd.,  Brierwood Ltd., and Pine
Forest Apartments, Ltd. had matured and were in default. The remaining series of
Purchase  Money Notes,  relating to Surry Manor,  Ltd.  matures on July 9, 2001.
None of the series of Purchase Money Notes is cross-defaulted to the others, nor
are the series of Purchase Money Notes cross-collateralized in any manner.

       The  aggregate  outstanding  principal  amount of and  accrued and unpaid
interest  on the  Purchase  Money Note  obligations  of the  Partnership,  as of
September 30, 2000, was $10,586,936. The outstanding obligations are expected to
increase  annually as interest  continues  to accrue  under the  Purchase  Money
Notes. As of September 30, 2000 there is no unamortized  discount balance on the
Purchase Money Notes. The unamortized  discount was written off in 1999 and 2000
on those Purchase Money Notes that matured in 1999 and 2000, respectively.

       The decrease in Purchase Money Note obligations from December 31, 1999 to
September 30, 2000 reflects  $2,938,554 in Purchase Money Note  obligations from
which  the  Partnership  was  released  in  connection  with  the  sale  of  the
Partnership's interest in Osuna, net of interest accrued and discount amortized.

       Management  does not believe that the principal and accrued  interest due
on  these  notes  can be  realized  or  supported  by the  current  value of the
respective properties,  through either a sale or refinancing.  The Partnership's
interests in these Local Limited  Partnerships  were pledged as security for the
Partnership's obligations under the respective Purchase Money Notes.

                                       11
<PAGE>

                  LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP
                      (A Massachusetts Limited Partnership)

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS


Liquidity and Capital Resources, continued


The sale or other  disposition by the  Partnership of its interests in the Local
Limited Partnerships,  including in connection with a foreclosure of the pledged
security,  is likely to result in recapture of previously  claimed tax losses to
the Partnership  and may have other adverse tax  consequences to the Partnership
and to the Limited Partners. Such recapture may cause some or all of the Limited
Partners to have taxable income from the Partnership  without cash distributions
from  the  Partnership  with  which  to  satisfy  the  tax  liability  resulting
therefrom.

       The liquidity of the Local Limited  Partnerships in which the Partnership
has  invested  is  dependent  on the  ability of the  respective  Local  Limited
Partnerships,  which own and operate  government  assisted  multi-family  rental
housing complexes,  to generate cash flow sufficient to fund operations and debt
service and to maintain  working  capital  reserves.  Each of the Local  Limited
Partnerships  is regulated by government  agencies which require monthly funding
of certain  operating and capital  improvements  reserves and which regulate the
amount of cash to be  distributed  to owners.  Each Local Limited  Partnership's
source of funds is rental income received from tenants and government subsidies.

       Certain of the Local Limited  Partnerships receive rental income pursuant
to Section 8 rental  assistance  contracts which expire at various times through
March 2005. Under the Multifamily  Assisted Housing and Reform and Affordability
Act  (MAHRAA) of 1997,  as amended,  Congress  set forth the  legislation  for a
permanent  "mark-to-market" program and provided for permanent authority for the
renewal of Section 8 Contracts.  Owners with Section 8 contracts  expiring after
September  30, 1998 are subject to the  provisions  of MAHRAA.  On September 11,
1998, HUD issued an interim rule to provide  clarification of the implementation
of the  mark-to-market  program.  Since then, revised guidance has been provided
through  various HUD housing  notices,  most recently HUD housing  notice 99-36,
which addresses project-based Section 8 contracts expiring in fiscal year 2000.

       Under this  notice,  project  owners have  several  options for Section 8
contract  renewals,  depending  on the type of project and rent  level.  Options
include  marking rents up to market,  renewing other  contracts with rents at or
below market, referring projects to the Office of Multifamily Housing Assistance
Restructuring  (OMHAR) for  mark-to-market  or "OMHAR lite"  renewals,  renewing
contracts  that are exempted  from  referral to OMHAR,  renewing  contracts  for
portfolio re-engineering demonstration and preservation projects, and opting out
of the Section 8 program.  Owners must submit  their  option to HUD at least 120
days before  expiration of their contract.  Each option contains  specific rules
and procedures that must be followed to comply with the  requirements of housing
notice 99-36.

                                       12
<PAGE>

                  LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP
                      (A Massachusetts Limited Partnership)

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS


Liquidity and Capital Resources, continued

       As such,  each Local Limited  Partnership may choose to either opt out of
the Section 8 program, request mortgage restructuring and renewal of the Section
8  contract,  or request  renewal of the  Section 8  contract  without  mortgage
restructuring.  Each option contains a specific set of rules and procedures that
must be followed in order to comply with the requirements of MAHRAA. The general
partner  of  Williamston  Homes  received a five year  renewal  to March,  2005,
subject to annual Federal  appropriation of funds. The remaining  properties are
working with HUD to renew their existing contracts for two to five year periods.

       The Partnership  cannot reasonably  predict  legislative  initiatives and
governmental  budget  negotiations,  the  outcome  of which  could  result  in a
reduction  in funds  available  for the various  federal and state  administered
housing programs  including the Section 8 program.  Such changes could adversely
affect the future net  operating  income  and debt  structure  of certain  Local
Limited Partnerships currently receiving such subsidy or similar subsidies.

       Management  currently  anticipates  selling the Partnership's 98% limited
partnership  interests in  Fuquay-Varina,  Oxford Homes and Williamston Homes to
the general  partner of these  partnerships  or his affiliate for  approximately
$150,000 plus the assumption of the related Purchase Money Note obligations. The
sale of these  interests  requires  consent from all the related  Purchase Money
Note  holders.   Such  consents  have  been  requested  and,   although  certain
documentation  remains  outstanding,  management believes that unanimous consent
has been obtained.  Management  anticipates  closing these  transactions  in the
fourth quarter of 2000.

       Management  entered into an agreement  with the local general  partner of
Austintown   Associates  to  sell  the  Partnership's  98%  limited  partnership
interest,  subject,  among other things,  to the consent of the related Purchase
Money Note  holders.  A meeting with the Purchase  Money Note holders to discuss
this  transaction  was held in November  1999. The  Partnership  did not receive
unanimous  consent of the  Purchase  Money Note holders  and,  accordingly,  the
agreement  expired  on April 1,  2000.  On  September  15,  2000  certain of the
Purchase  Money Note  holders  commenced  an action in the Court of Common Pleas
Mahoning  County,  Ohio  seeking,  among other  things,  to  foreclose  upon the
Partnership's  pledge of its 98%  limited  partnership  interest  in  Austintown
Associates.

       Management has also entered into agreements to sell the Partnership's 94%
interests in Brierwood, Brierwood II, Pine Forest and Meadowwood Apartments. The
Partnership  would receive only a nominal cash payment in  connection  with each
sale and,  following the sale,  the Purchase  Money Notes would be exchanged for
pro  rata  shares  of the  related  94%  partnership  interest.  The sale of the
Partnership's interests in Brierwood, Pine Forest and Meadowwood Apartments also
requires consent from all the related Purchase Money Note holders. Such consents
have been requested.  Management presently anticipates the consummation of these
transactions in the fourth quarter of 2000.

       The  Partnership  has  commenced  discussions  with the local manager for
Surry Manor,  Ltd. and Glendale Manor  Apartments to purchase the  Partnership's
interests in those partnerships.  Management  presently expects to enter into an
Agreement in the fourth  quarter of 2000 to sell the  Partnership's  98% limited
Partnership  Interests in Surry Manor, Ltd. and Glendale Manor  Apartments.  The
sale of these interest will require consent from all the related  Purchase Money
Note holders.

                                       13
<PAGE>

                  LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP
                      (A Massachusetts Limited Partnership)

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS


Liquidity and Capital Resources, continued

       No  assurance  can  be  given  that  the  Partnership  will  be  able  to
successfully  conclude any of the above  transactions.  If Partnership funds are
insufficient  to pay when due the  Purchase  Money  Notes,  the  holders  of the
Purchase  Money  Notes  will have the right to  foreclose  on the  Partnership's
respective  interests  in the  Local  Limited  Partnerships.  The  sale or other
disposition   by  the   Partnership  of  its  interests  in  the  Local  Limited
Partnerships,  including in  connection  with such a  foreclosure,  is likely to
result in recapture of previously  claimed tax losses to the Partnership and may
have other adverse tax  consequences to the Partnership and to the Unit holders.
Such  recapture may cause some or all of the Unit holders to have taxable income
from the Partnership  without cash distributions from the Partnership with which
to satisfy the tax liability resulting therefrom.

       At  September  30,  2000,  the   Partnership  had  total  cash  and  cash
equivalents of $311,549,  which  consisted of funds  segregated  pursuant to the
terms of the  consulting  agreement  with the  General  Partner  of Linden  Park
Associates of $146,158 and cash reserves of $165,391.  The reserves include $841
representing  uncashed checks issued to certain  Purchase Money Note holders for
interest due under their notes. This amount is also included in accrued interest
payable. The increase in cash reserves compared to $120,946 at December 31, 1999
was primarily funded from the proceeds of the sale of the Partnership's interest
in Osuna Apartments.

       Estimated  state taxes  totaling  $211,271 were paid from the proceeds of
the sale of the  Partnership's  investments  in Fiddlers Creek  Apartments.  The
Partnership has  subsequently  reevaluated this obligation and has applied for a
refund of amounts previously remitted.

       The only  sources of  Partnership  funds are (i)  distributions  from the
Local Limited Partnerships (substantially all of which are presently required to
be applied to payment of interest  accruing on the Purchase  Money  Notes),  and
(ii) Partnership reserves.

Partnership Operations

       The Partnership is engaged solely in the business of owning  interests in
the Local Limited  Partnerships rather than the direct ownership of real estate.
As  discussed   above,  the  Partnership  is  currently  in  various  stages  of
negotiations to sell its interests in the remaining local limited  partnerships.
If the  Partnership  is successful  in disposing of its  remaining  investments,
management presently intends to wind up the Partnership's  operations by the end
of the Year 2001.

       The  Partnership's  net loss  before  extraordinary  items  decreased  to
$537,965  in the first  nine  months of 2000 from  $1,410,826  in the first nine
months  of 1999  primarily  as a result  of the  decrease  in the  Partnership's
interest expense of $930,653.

                                       14
<PAGE>

                  LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP
                      (A Massachusetts Limited Partnership)

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS


Partnership Operations, continued

        On  February  1,  2000  the  Partnership  sold its  investment  in Osuna
Apartments.  The  Partnership  realized a net gain of $2,432,299,  determined as
follows:

Cash received                                               $   100,000
Forgiveness of Purchase Money Notes                           2,938,554
Less: Investment in Osuna Apartments                           (569,998)
Less: Consulting fees paid in connection with
      the disposition                                           (26,924)
Less: Professional fees                                          (9,333)
                                                            -----------
Gain on sale of investment in Osuna Apartments Company      $ 2,432,299
                                                            ===========

       In the first  nine  months of 2000,  the  Partnership's  interest  income
reflects  interest  earned on reserves  of $13,899.  In the first nine months of
1999, interest income totaling $101,042 consisted of interest earned on reserves
of $9,102 and  interest  net of discount  amortization  on the  long-term  notes
receivable of $17,416 and the write off of the unamortized discount of $74,524.

       The  Partnership's  interest  expense  decreased to $560,962 in the first
nine  months  of 2000 from  $1,491,615  in the first  nine  months of 1999.  The
decrease is  attributable to the decrease in discount  amortization  included in
interest  expense of $787,028  and the  reduction of interest  accrued  totaling
$143,625 due to the sales of the Fiddlers Creek  investment and Osuna Apartments
Company,  which included the assumption or release of the related Purchase Money
Notes, on May 28, 1999 and February 1, 2000, respectively.

       The  Partnership's  equity in income from the Local Limited  Partnerships
was  $109,599  in the first  nine  months of 2000 and  $78,777 in the first nine
months of 1999.

                                       15

<PAGE>
                                     Part II
                                Other Information

Item 1.  Legal Proceedings.

On  September 15 2000,  James P. Manchi and Robert P. Baker  commenced an action
against the  Partnership in the Court of Common Pleas,  Mahoning  County,  Ohio.
Messrs.  Manchi and Baker are  holders of  Purchase  Money  Notes  issued by the
Partnership in connection with the  acquisition of its  partnership  interest in
Austintown Associates. The remaining holders of Purchase Money Notes relating to
Austintown  Associates  were joined as  involuntary  plaintiffs in the action by
Messrs.  Manchi and Baker. The complaint was subsequently  amended on October 4,
2000. The  plaintiffs  seek a declaration of the rights of the parties under the
Purchase Money Notes and related pledge  agreements,  a judgment in favor of the
holders  for the  monies due under the  Purchase  Money  Notes (to be  satisfied
through  sale  of  the  partnership  interest  in  Austintown   Associates),   a
declaration of an event of default under the related  pledge  agreements and the
appointment of a receiver to supervise the sale of the partnership interest. The
Partnership does not presently intend to contest this action.

Item 3. Defaults Upon Senior Securities.

        On  September  29,  1999  the  Purchase  Money  Notes   outstanding  for
Fuquay-Varina,  Oxford Homes and Williamston  Homes matured.  The amounts due at
maturity  under  these  non-recourse  obligations  consisted  of  $2,015,000  in
aggregate  principal amount and $530,961 in accrued and unpaid  interest.  As of
September  30, 2000,  the  aggregate  arrearages  under these notes  amounted to
$2,616,439.

        The  Purchase  Money  Notes   outstanding  for  Austintown   Associates,
Meadowwood Ltd,  Brierwood Ltd. and Pine Forest matured on October 30, 1999. The
amounts  due at maturity  under  these  non-recourse  obligations  consisted  of
$2,830,000 in aggregate  principal  amount and  $3,608,251 in accrued and unpaid
interest.  As of September 30, 2000, the aggregate  arrearages under these notes
amounted to $6,667,096.

On August 29, 2000 the  Purchase  Money Notes  outstanding  for  Glendale  Manor
Apartments  matured.  The  amounts  due at  maturity  under  these  non-recourse
obligations  consisted of $450,000 in aggregate principal amount and $224,979 in
accrued and unpaid interest.  As of September 30, 2000, the aggregate arrearages
under these notes amounted to $678,577.


                                       16

<PAGE>

                                   SIGNATURES


        Pursuant to the requirements 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.


                                   LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP

                                   By: TNG Properties Inc.
                                       Managing General Partner



                                   By: /s/  Michael A. Stoller
                                       Michael A. Stoller
                                       President and CEO


                                   By: TNG Properties Inc.
                                       Managing General Partner



                                   By: /s/ Wilma R. Brooks
                                       Wilma R. Brooks
                                       Chief Financial Officer


Date:   11/13/00