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     March 31, 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, March 31, 1998 and December 31, 1997            3-4

        Statements of Operations for the Three Months
          Ended March 31, 1998, and 1997                                  5

        Statements of Cash Flows for the Three Months Ended
          March 31, 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)
                                         March 31, 1998      December 31, 1997
                                         ---------------     -----------------
 
Assets

Current assets:

    Cash and cash equivalents               $  258,194           $   65,685
                                            ----------           ----------
                                                                 
                                                                 
        Total current assets                   258,194               65,685
                                                                 
Long-term notes and accrued interest                             
    receivable                                 147,440              143,485
                                                                 
Investments in local limited                                     
    partnerships                             1,935,783            2,019,775
                                            ----------           ----------
                                                                 
        Total assets                        $2,341,417           $2,228,945
                                            ==========           ==========
                                                           









                                   (continued)

                                       3
<PAGE>

                  LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP
                      (A Massachusetts Limited Partnership)

                           BALANCE SHEETS (continued)


                                           (Unaudited)           (Audited)
                                         March 31, 1998      December 31, 1997
                                         ---------------     -----------------

Liabilities and Partners' Deficit

Current liabilities:
    Accounts payable to affiliates        $     99,774          $     75,271 
    Accounts payable                            21,212                 1,410
    Accrued expense                               --                  16,000
    Accrued interest payable                   370,165               370,165
                                          ------------          ------------
                                                             
        Total current liabilities              491,151               462,846
                                                             
Purchase money notes                        12,167,638            11,544,195
                                          ------------          ------------ 
        Total liabilities                   12,658,789            12,007,041
                                          ------------          ------------
                                                             
Partners' deficit:                                           
    General partners:                                        
        Capital contributions                    4,202                 4,202
        Capital distributions                      (28)                  (22)
        Accumulated losses                    (203,937)             (198,550)
                                          ------------          ------------
                                              (199,763)             (194,370)
                                          ------------          ------------
                                                             
    Limited partners (21,576 Units):                         
        Capital contributions (net of                        
          offering costs of $1,134,440)      9,649,520             9,649,520
        Capital distributions                   (2,771)               (2,211)
        Accumulated losses                 (19,764,358)          (19,231,035)
                                          ------------          ------------
                                           (10,117,609)           (9,583,726)
                                          ------------          ------------
                                                             
        Total partners' deficit            (10,317,372)           (9,778,096)
                                          ------------          ------------
                                                             
        Total liabilities and partners'                      
           deficit                        $  2,341,417          $  2,228,945
                                          ============          ============
                                                       


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


                                       4

<PAGE>

                  LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP
                      (A Massachusetts Limited Partnership)

                            STATEMENTS OF OPERATIONS
                                   (Unaudited)


                                                 For the Three Months Ended
                                                          March 31,
                                               -----------------------------
                                                   1998             1997
                                                   ----             ----
Interest income                                $  12,284        $  17,227 
Expenses:                                                       
   Interest expense                              623,443          514,668
General and administrative                                      
   expense                                        30,742           30,736
                                               ---------        --------- 
Total expenses                                   654,185          545,404
                                               ---------        ---------
Loss before equity in local                                     
   limited partnership operations               (641,901)        (528,177)
                                               ---------        ---------
Equity in income of local                                       
   limited partnership                                          
   investments                                   103,191           49,506
                                               ---------        ---------
                                                                
                                               $(538,710)       $(478,671)
                                               =========        ========= 
Net loss per Limited Partnership Unit,                          
based on 21,576 Units outstanding in the                        
first three months of 1998 and 1997            $  (24.72)       $  (21.96)
                                               =========        ========= 
                                                            


   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 Three Months Ended
                                                                                March 31,
                                                                        ---------------------------
                                                                            1998           1997
                                                                            ----           ----
<S>                                                                       <C>          <C>
Cash flows from operating activities:
    Cash distributions from local limited
     partnerships                                                          $ 187,183    $ 369,947
    Cash paid for Partnership administration
     expenses                                                                 (2,437)     (30,236)
    Interest received                                                          8,329       13,216
                                                                           ---------    ---------
      Net cash provided by
           operating activities                                              193,075      352,927
                                                                           ---------    ---------

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

Net increase in cash and
     cash equivalents                                                        192,509      352,927

Cash and cash equivalents at:
    Beginning of period                                                       65,685      163,915
                                                                           ---------    ---------
    End of period                                                          $ 258,194    $ 516,842
                                                                           =========    =========

Reconciliation of net loss to net cash provided by operating activities:

Net loss                                                                   $(538,710)   $(478,671)
Adjustments to reconcile net loss to net
    cash used in operating activities:
        Share of income of local limited
          partnership investments                                           (103,191)     (49,506)
        Cash distributions from local limited
          partnerships                                                       187,183      369,947
        Interest expense added to purchase money
          notes, net of discount amortization                                623,443      514,668
        Interest income added to long-term
          notes receivable, net of discount
          amortization, and interest received                                 (3,955)      (3,954)
        Decrease (increase) in other current assets                             --            (57)
        (Decrease) increase in:
           Accounts payable to affiliates                                     24,503          500
           Accounts payable                                                   19,802         --
           Accrued expenses                                                  (16,000)        --
                                                                           ---------    ---------

        Net cash provided by operating
           activities                                                      $ 193,075    $ 352,927
                                                                           =========    =========
</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 March 31, 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)
                                                      March 31,     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                         (3,692,377)     (3,744,473)

    Cash distributions received from Local
        Limited Partnerships                         (3,813,804)     (3,603,556)

    Cash distributions received from Local
        Limited Partnerships recognized as
        investment income                                74,160            --
                                                    -----------     -----------

Investments in Local Limited Partnerships          $  1,935,783     $ 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 Three Months Ended
                                                             March 31,
                                                   ---------------------------
                                                       1998             1997
                                                       ----             ----

Rental and other income                             $ 1,365,510     $ 1,325,511
Expenses:
    Operating expenses                                  857,567         857,679
    Interest expense                                    253,473         258,943
    Depreciation and amortization                       244,491         242,047
                                                    -----------     -----------
      Total expenses                                  1,355,531       1,358,699
                                                    -----------     -----------

Net income(loss)                                    $     9,979     $   (33,158)
                                                    ===========     ===========

Partnership's share of net income (loss)            $     9,714     $   (32,893)
                                                    ===========     ===========

Other partners' share of net income (loss)          $       265     $      (265)
                                                    ===========     ===========

         The  differences  between  the  Partnership's  share of income in Local
Limited Partnership investments in the Partnership's Statement of Operations for
the  three  months  ended  March 31,  1998 and 1997 and the share of net  income
(loss)  in  the  above  Summarized  Statements  of  Operations  consists  of the
following:

                                                      For the Three Months Ended
                                                              March 31,
                                                      --------------------------
                                                          1998          1997
                                                          ----          ----
Share of income in Local Limited
    Partnership Investments in the
    Partnership's Statement of Operations              $103,191        $ 49,506 
                                                                     
Partnership's share of income (loss) in the                          
    above summarized Statements of Operations             9,714         (32,893)
                                                       --------        --------
        Difference                                     $ 93,477        $ 82,399
                                                       ========        ========
Partnership's unrecorded share of losses:                            
    Linden Park                                        $ 23,999        $ 30,398
    Brierwood Ltd.                                        7,558           2,069
    Brierwood II, Ltd.                                    1,723           1,304
    Pine Forest Apartments, Ltd.                          6,105             415
    Surry Manor                                             887          14,007
    Glendale Manor                                        2,110           2,086
                                                       --------        --------
        Subtotal unrecorded losses                       42,382          50,279
                                                                     
Cash Distributions                                                   
    recorded as investment income                        51,095          32,120
                                                       --------        --------
        Total                                          $ 93,477        $ 82,399
                                                       ========        ========
                                                                  
                                   (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 three
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 three months ended March 31, 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                    $12,003         $13,375
Partnership management fees                   12,500          12,500
                                                     
         As of March  31,  1998 and  December  31,  1997,  accounts  payable  to
affiliates  totaling $99,774 and $75,271,  respectively,  represent amounts owed
for  reimbursements  of  Partnership  administration  expenses  of  $32,003  and
$20,000,  respectively,  and partnership management fees of $67,771 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 three months ended March 31,
1998, as defined in Section 17 of the Partnership Agreement, is as follows:

Interest income per Statement of Operations                 $12,284

Less:  Interest income added to long-term notes
         receivable, net of discount amortization            (3,955)

       General and administrative expenses per
         Statement of Operations                            (30,742)
                                                            --------

Cash from Operations, as defined                            (22,413)
                                                            --------

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 March
31,1998,  was approximately  $15,311,175.  The aggregate  outstanding  principal
amount of the Purchase Money Notes reported on the  Partnership's  Balance Sheet
($12,167,638 at March 31, 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 March 31, 1998,  the unpaid  principal  amount of and accrued and
unpaid interest on the Linden Park Associates Limited  Partnership Notes equaled
$2,411,664.

         At March 31,  1998,  the  Partnership  had  reserves of  $71,577.  This
consists of cash and cash equivalents of $258,194 less accrued interest totaling
$186,617 due on certain  Purchase Money Notes from  distributions  received from
the related Local Limited Partnerships.

         In 1998, the Partnership accrued interest of $11,732 on the Linden Park
Associates Limited Partnership Notes held by the Partnership and received $7,777
of interest  payments on these  notes.  As of March 31,  1998,  the  outstanding
balance of principal and accrued and unpaid  interest  receivable on these notes
amounted to $243,226, prior to unamortized discount of $95,786.

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 $538,710 in the first three
months of 1998 from  $478,671 in the first three  months of 1997  primarily as a
result of the increase in the Partnership's interest expense of $108,775, net of
the increase in income of local limited  partnership  investments  recognized of
$53,685.

         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  $4,943 to $12,284 in the first three months of
1998  compared to $17,227 in the first three  months of 1997.  This  decrease is
attributable to lower interest  payments  received on the Linden Park Associates
Limited Partnership Notes held by the Partnership and due to lower cash balances
maintained 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 $623,443 in the first
three  months of 1998 from  $514,668  in the first  three  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  $103,191 in the first  three  months of 1998 and $49,506 in the first three
months of 1997.  The $53,685  increase in income  recognized  in the first three
months of 1998 is  attributable  to an increase of $34,710 in the  Partnership's
recorded  share of the net  income of the Local  Limited  Partnerships,  plus an
increase of $18,975 in cash  distributions  which would have reduced the related
investment balances below zero.


                                       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.


                                 IBERTY 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:  May 13, 1998