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     June 30, 1998


[ ] 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.)


 27 Christina Street, Suite 203, Newton, MA                02161
(Address of principal executive offices)                 (Zip Code)


Registrant's telephone number, including area code  (617) 244-2242



                   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

                              There are no Exhibits

                                  Page 1 of 13

<PAGE>

                  LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP
                      (A Massachusetts Limited Partnership)

                                      INDEX



                                                                      Page

Part I:  Financial Information

Item 1. Financial Statements:

        Balance Sheets, June 30, 1998 and December 31, 1997           3-4

        Statements of Operations for the Three Months
          Ended June 30, 1998, and 1997 and the Six Months
          Ended June 30, 1998 and 1997                                  5

        Statements of Cash Flows for the Six Months Ended
          June 30, 1998, and 1997                                       6

        Notes to Financial Statements                                7-10

Item 2. Management's Discussion and Analysis of Financial
        Condition and Results of Operations                         11-12




                                       2


<PAGE>

                  LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP
                      (A Massachusetts Limited Partnership)

                                 BALANCE SHEETS


                                            (Unaudited)           (Audited)
                                           June 30, 1998      December 31, 1997
                                           -------------      -----------------
                                                           
Assets                                                     
                                                           
Current assets:                                            
                                                           
    Cash and cash equivalents                 $   56,260        $   65,685
                                              ----------        ----------
                                                           
        Total current assets                      56,260            65,685
                                                           
Long-term notes and accrued interest                       
    receivable                                   151,394           143,485
                                                           
Investments in local limited                               
    partnerships                               1,859,567         2,019,775
                                              ----------        ----------
                                                           
        Total assets                          $2,067,221        $2,228,945
                                              ==========        ==========
                                                           
                                                          


                                   (continued)

                                       3
<PAGE>
                  LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP
                      (A Massachusetts Limited Partnership)

                           BALANCE SHEETS (continued)


                                               (Unaudited)        (Audited)
                                             June 30, 1998    December 31, 1997
                                             --------------   -----------------

Liabilities and Partners' Deficit

Current liabilities:
    Accounts payable to affiliates            $    124,273     $     75,271
    Accounts payable                                 5,375            1,410
    Accrued expense                                   --             16,000
    Accrued interest payable                       351,987          370,165
                                              ------------     ------------

        Total current liabilities                  481,635          462,846

Purchase money notes                            12,641,492       11,544,195
                                              ------------     ------------

        Total liabilities                       13,123,127       12,007,041
                                              ------------     ------------

Partners' deficit:
    General partners:
        Capital contributions                        4,202            4,202
        Capital distributions                          (28)             (22)
        Accumulated losses                        (211,322)        (198,550)
                                              ------------     ------------
                                                  (207,148)        (194,370)
                                              ------------     ------------

    Limited partners  (21,566 Units at
          June 30, 1998 and 21,576 Units
          at December 31, 1997):
        Capital contributions (net of
          offering costs of $1,134,440)          9,649,520        9,649,520
        Capital distributions                       (2,771)          (2,211)
        Accumulated losses                     (20,495,507)     (19,231,035)
                                              ------------     ------------
                                               (10,848,758)      (9,583,726)
                                              ------------     ------------

        Total partners' deficit                (11,055,906)      (9,778,096)
                                              ------------     ------------

        Total liabilities and partners'
           deficit                            $  2,067,221     $  2,228,945
                                              ============     ============


   The accompanying notes are an integral part of these financial statements.

                                       4

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

                                  STATEMENTS OF OPERATIONS
                                        (Unaudited)


                                   For the Three Months Ended   For the Six Months Ended
                                            June 30,                     June 30,
                                  --------------------------    --------------------------

                                       1998           1997           1998           1997
                                       ----           ----           ----           ----

<S>                              <C>            <C>            <C>            <C>        
Interest income                   $     8,426    $     9,352    $    20,710    $    26,579
                                  -----------    -----------    -----------    -----------
Expenses:
  Interest expense                    642,294        538,074      1,265,737      1,052,742
  General and administrative
    expense                            28,450         36,420         59,192         67,156
                                  -----------    -----------    -----------    -----------
Total expenses                        670,744        574,494      1,324,929      1,119,898
                                  -----------    -----------    -----------    -----------
Loss before equity in local
  limited partnership operations     (662,318)      (565,142)    (1,304,219)    (1,093,319)
Equity in income (loss) of
  local limited partnership
  investments                         (76,216)        35,354         26,975         84,860
                                  -----------    -----------    -----------    -----------

Net Loss                          $  (738,534)   $  (529,788)   $(1,277,244)   $(1,008,459)
                                  ===========    ===========    ===========    ===========
Basic net loss per Limited
  Partnership Unit                $    (33.90)   $    (24.31)   $    (58.62)   $    (46.27)
                                  ===========    ===========    ===========    ===========

Units used in computing basic
  net loss per Limited                 21,566         21,576         21,571         21,576
  Partnership Unit                ===========    ===========    ===========    ===========
</TABLE>




   The accompanying notes are an integral part of these financial statements.

                                       5

<PAGE>
<TABLE>
<CAPTION>

                           LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP
                               (A Massachusetts Limited Partnership)

                                     STATEMENTS OF CASH FLOWS
                                            (Unaudited)

                                                                         For the Six Months Ended
                                                                                 June 30,
                                                                       ---------------------------
                                                                            1998          1997
                                                                            ----          ----
<S>                                                                  <C>             <C>
Cash flows from operating activities:
  Cash distributions from local limited
    partnerships                                                       $   187,183    $   369,947
  Interest payments on purchase money notes                               (186,617)      (369,947)
  Cash paid for Partnership administration
    expenses                                                               (22,225)       (90,393)
  Interest received                                                         12,800         18,653
                                                                       -----------    -----------
    Net cash used in
      operating activities                                                  (8,859)       (71,740)
                                                                       -----------    -----------

Cash Flows from financing activity:
  Capital distributions                                                       (566)          --
                                                                       -----------    -----------
  Net cash used by financing
    activity                                                                  (566)          --
                                                                       -----------    -----------

Net decrease in cash and cash equivalents                                   (9,425)       (71,740)

Cash and cash equivalents at:
  Beginning of period                                                       65,685        163,915
                                                                       -----------    -----------
  End of period                                                        $    56,260    $    92,175
                                                                       ===========    ===========

Reconciliation of net loss to net cash used in operating activities:

Net loss                                                               $(1,277,244)   $(1,008,459)
Adjustments to reconcile net loss to net
  cash used in operating activities:
    Share of income of local limited
      partnership investments                                              (26,975)       (84,860)
    Cash distributions from local limited
      partnerships                                                         187,183        369,947
    Interest expense added to purchase money
      notes, net of discount amortization                                1,097,297        590,410
    Interest income added to long-term
      notes receivable, net of discount
      amortization, and interest received                                   (7,909)        (7,909)
    Increase in other current assets                                          --              (17)
    (Decrease) increase in:
       Accrued interest payable                                            (18,178)        92,385
       Accounts payable to affiliates                                       49,002        (11,500)
       Accounts payable                                                      3,965          3,863
       Accrued expenses                                                    (16,000)       (15,600)
                                                                       -----------    -----------

    Net cash used in operating
      activities                                                       $    (8,859)   $   (71,740)
                                                                       ===========    ===========
</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                       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 June 30, 1998.
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, 1997.

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)
                                               June 30,          December 31,
                                                 1998                1997
                                             -----------         ------------

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                  (3,768,593)         (3,744,473)
                                                                
    Cash distributions received from Local                      
        Limited Partnerships                  (3,790,739)         (3,603,556)
                                                                
    Cash distributions received from Local                      
        Limited Partnerships recognized as                      
        investment income                         51,095                --
                                             -----------         -----------
                                                                
Investments in Local Limited Partnerships    $ 1,859,567         $ 2,019,775
                                             ===========         ===========
                                                             
                                   (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 all Local Limited Partnerships is as follows:

                                              For the Six Months Ended
                                                       June 30,
                                             --------------------------
                                                 1998            1997
                                                 ----            ----

Rental and other income                      $ 2,731,973    $ 2,720,631
Expenses:
    Operating expenses                         1,884,244      1,730,564
    Interest expense                             506,946        517,885
    Depreciation and amortization                488,655        483,766
                                             -----------    -----------
        Total expenses                         2,879,845      2,732,215
                                             -----------    -----------

Net income(loss)                             $  (147,872)   $   (11,584)
                                             ===========    ===========

Partnership's share of net income (loss)     $  (146,643)   $   (11,223)
                                             ===========    ===========

Other partners' share of net income (loss)   $    (1,229)   $      (361)
                                             ===========    ===========

         The  differences  between  the  Partnership's  share of income in Local
Limited Partnership investments in the Partnership's Statement of Operations for
the six  months  ended  June 30,  1998 and 1997 and the share of net loss in the
above Summarized Statements of Operations consists of the following:

                                                For the Six Months Ended
                                                       June 30,
                                                ------------------------
                                                  1998          1997
                                                ---------    ---------
Share of income in Local Limited
    Partnership Investments in the
    Partnership's Statement of Operations       $  26,975    $  84,860

Partnership's share of income (loss) in the
    above summarized Statements of Operations    (146,643)     (11,223)
                                                ---------    ---------
        Difference                              $ 173,618    $  96,083
                                                =========    =========
Partnership's unrecorded share of losses:
    Linden Park                                 $  44,297    $  27,486
    Brierwood Ltd.                                 12,989        9,711
    Brierwood II, Ltd.                              3,416        3,023
    Pine Forest Apartments, Ltd.                   13,066        9,614
    Surry Manor                                    30,733       14,129
    Glendale Manor                                 18,022         --
                                                ---------    ---------
        Subtotal unrecorded losses                122,523       63,963

Cash Distributions
    recorded as investment income                  51,095       32,120
                                                ---------    ---------
        Total                                   $ 173,618    $  96,083
                                                =========    =========

                                   (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 Linden Park, Brierwood
Ltd., Brierwood II, Ltd., Pine Forest Apartments, Ltd., Surry Manor and Glendale
Manor  until its related  investment  was  reduced to zero.  Subsequent  to that
point, 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 $566 during the first six months
of 1998 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 six months  ended June 30,  1998,  and 1997 the  Partnership
recognized  general and  administrative  expenses  owed to the Managing  General
Partner, as follows:

                                          1998      1997
                                          ----      ----
Reimbursement of Partnership
  administration expenses               $24,026   $29,176
Partnership management fees              25,000    25,000

        As of  June  30,  1998  and  December  31,  1997,  accounts  payable  to
affiliates totaling $124,273 and $75,271,  respectively,  represent amounts owed
for  reimbursements  of  Partnership  administration  expenses  of  $44,002  and
$20,000,  respectively,  and partnership management fees of $80,271 and $55,271,
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 six months  ended June 30,
1998, as defined in Section 17 of the Partnership Agreement, is as follows:

Interest income per Statement of Operations                   $ 20,710

Less:  Interest income added to long-term notes
         receivable, net of discount amortization               (7,909)

       General and administrative expenses per
         Statement of Operations                               (59,192)
                                                              --------
Cash from Operations, as defined                               (46,391)
                                                              --------

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

         The aggregate  outstanding  principal  amount of and accrued and unpaid
interest on the Purchase Money Note obligations of the  Partnership,  as of June
30,1998,  was approximately  $15,338,599.  The aggregate  outstanding  principal
amount of the Purchase Money Notes reported on the  Partnership's  Balance Sheet
($12,641,492  at June 30, 1998),  reflects a discount using an imputed  interest
rate of approximately  21%, which was applied to the face amount of the notes on
the  respective  investment  purchase  dates and which is used to  calculate  an
annual  interest  accrued  in  accordance  with  generally  accepted  accounting
principles that will equate to the legal obligation  expected at maturity of the
notes.

       As of June 30,  1998,  the unpaid  principal  amount of and  accrued  and
unpaid interest on the Linden Park Associates Limited  Partnership Notes equaled
$2,412,743.

       At June 30,  1998,  the  Partnership  had reserves of $56,260 in cash and
cash  equivalents.  Accrued interest  totaling  $186,617 due on certain Purchase
Money  Notes  from  distributions   received  from  the  related  Local  Limited
Partnerships was distributed in the second quarter of 1998.

         In 1998, the Partnership accrued interest of $19,475 on the Linden Park
Associates  Limited  Partnership  Notes  held by the  Partnership  and  received
$11,566  of  interest  payments  on  these  notes.  As of  June  30,  1998,  the
outstanding  balance of principal and accrued and unpaid interest  receivable on
these notes amounted to $243,347, prior to unamortized discount of $91,953.

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.

       The  Partnership's  net loss  increased  to  $1,277,244  in the first six
months of 1998 from  $1,008,459  in the first six months of 1997  primarily as a
result of the increase in the  Partnership's  interest expense of $212,995,  and
the decrease in income of local limited  partnership  investments  recognized of
$57,885.

         The Partnership's  interest income reflects interest earned on reserves
and interest  net of discount  amortization  on the long term notes  receivable.
Total  interest  income  decreased  $5,869 to $20,710 in the first six months of
1998  compared  to  $26,579 in the first six months of 1997.  This  decrease  is
attributable  to lower cash  balances  maintained by the  Partnership  and lower
interest  payments  received on the Linden Park Associates  Limited  Partnership
Notes held by the Partnership.

                                       11
<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


         The Partnership's interest expense increased to $1,265,737 in the first
six  months  of 1998 from  $1,052,742  in the  first  six  months of 1997.  Such
increase is  attributable  to the accrual of interest  under the Purchase  Money
Notes.

         The Partnership's  equity in income from the Local Limited Partnerships
was  $26,975 in the first six months of 1998 and $84,860 in the first six months
of 1997.  The $57,885  decrease in income  recognized in the first six months of
1998 is  attributable  to an increase of $76,859 in the  Partnership's  recorded
share of the net loss of the Local Limited  Partnerships,  net of an increase of
$18,975 in cash  distributions  which would have reduced the related  investment
balances below zero. The increase in net loss of the Local Limited  Partnerships
is  attributable  principally  to an  increase  in the  expenses  for repairs at
certain of the Local Limited Partnerships.

                                       12
<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: August 10, 1998



                                       13