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, 1996


[ ] 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


               210 South Street, 7th Floor, Boston, MA 02111-2725
                 (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 12


<PAGE>





                  LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP
                      (A Massachusetts Limited Partnership)

                                      INDEX



                                                                           Page
                                                                      
Part I:  Financial Information                                        
                                                                      
Financial Statements:                                                 
                                                                      
        Balance Sheets, September 30, 1996 and December 31, 1995            3-4
                                                                      
        Statements of Operations for the Three Months                 
          Ended September 30, 1996, and 1995 and the Nine Months              5
          Ended September 30, 1996 and 1995                           
                                                                      
        Statements of Cash Flows for the Nine Months Ended            
          September 30, 1996, and 1995                                        6
                                                                      
        Notes to Financial Statements                                       7-9
                                                                      
Management's Discussion and Analysis of Financial Condition           
        and Results of Operations                                         10-11
                                                                   































                                        2

<PAGE>




                  LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP
                      (A Massachusetts Limited Partnership)

                                 BALANCE SHEETS


                                             (Unaudited)           (Audited)
                                         September 30, 1996    December 31, 1995
                                         ------------------    -----------------

Assets

Current assets:

    Cash and cash equivalents                   $  175,942           $  293,331
                                                                
    Other current assets                                97                  108
                                                ----------           ----------
                                                                
        Total current assets                       176,039              293,439
                                                                
Long-term notes and accrued interest                            
    receivable                                     119,721              111,850
                                                                
Investments in local limited                                    
    partnerships                                 2,320,563            2,559,088
                                                ----------           ----------
                                                                
        Total assets                            $2,616,323           $2,964,377
                                                ==========           ==========
                                                               
























                                   (continued)

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


                                        3

<PAGE>




                  LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP
                      (A Massachusetts Limited Partnership)

                           BALANCE SHEETS (continued)


                                               (Unaudited)         (Audited)
                                           September 30, 1996  December 31, 1995
                                           ------------------  -----------------

Liabilities and Partners' Deficit

Current liabilities:
    Accounts payable to affiliates               $    62,274        $    88,771
    Accounts payable                                   1,004               -
    Accrued expense                                    1,150             15,650
    Accrued interest payable                         494,541            304,628
                                                 -----------        -----------

        Total current liabilities                    558,969            409,049

Purchase money notes                               9,075,646          8,151,571
                                                 -----------        -----------

        Total liabilities                          9,634,615          8,560,620
                                                 -----------        -----------

Partners' deficit:
    General partners:
        Capital contributions                          4,202              4,202
        Accumulated losses                          (170,974)          (156,753)
                                                 -----------        -----------
                                                    (166,772)          (152,551)
                                                 -----------        -----------

    Limited partners (21,576 Units):
        Capital contributions (net of
          offering costs of $1,134,440)            9,649,520          9,649,520
        Accumulated losses                       (16,501,040)       (15,093,212)
                                                 -----------        -----------
                                                  (6,851,520)        (5,443,692)
                                                 -----------        -----------

        Total partners' deficit                   (7,018,292)        (5,596,243)
                                                 -----------        -----------

        Total liabilities and partners'
           deficit                               $ 2,616,323        $ 2,964,377
                                                 ===========        ===========
















   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 Nine Months Ended
                                                        September 30,                     September 30,
                                              -------------------------------      ------------------------
                                              1996               1995              1996                1995
                                              ----               -----             ----                ----

<S>                                           <C>               <C>                <C>             <C>          
Interest income                               $    6,076        $    7,176         $     20,648    $     25,350

Expenses:

  Interest expense                               480,631           403,018            1,404,540       1,142,487

  General and administrative expense              29,085            19,735               87,717          97,348
                                               ---------        ----------         ------------    ------------

    Total expenses                               509,716           422,753            1,492,257       1,239,835
                                               ---------        ----------         ------------    ------------

Loss before equity in local
  limited partnership operations                (503,640)         (415,577)          (1,471,609)     (1,214,485)
                                              ----------        ----------         ------------    ------------

Equity in income (loss) of local
  limited partnership investments                 38,750           (12,446)              49,560          23,524
                                              ----------        ----------         ------------    ------------

Net loss                                      $ (464,890)       $ (428,023)        $ (1,422,049)   $ (1,190,961)
                                              ==========        ==========         ============    ============

Net loss per Limited  Partnership  Unit,
based on 21,576 Units  outstanding  at
September 30, 1996 and 21,616 units
outstanding at September 30, 1995             $   (21.33)       $   (19.61)        $     (65.25)   $     (54.55)
                                              ==========        ==========         ============    ============
</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 Nine Months Ended
                                                                                                      September 30,
                                                                                      --------------------------------------
                                                                                      1996                              1995
                                                                                      ----                              ----

<S>                                                                                  <C>                               <C>   
Cash flows from operating activities:
    Cash distributions from local limited partnerships                                 $ 288,086                         $  316,819
    Interest payments on purchase money notes                                           (290,553)                          (316,109)
    Cash paid for Partnership administration expenses                                   (127,711)                           (88,551)
    Interest received                                                                     12,789                             15,686
                                                                                      ----------                       ------------
      Net cash used in operating activities                                             (117,389)                           (72,155)
                                                                                      ----------                       ------------

Net decrease in cash and cash equivalents                                               (117,389)                           (72,155)

Cash and cash equivalents at:
    Beginning of period                                                                  293,331                            293,255
                                                                                       ---------                       ------------
    End of period                                                                      $ 175,942                          $ 221,000
                                                                                       =========                       ============


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

Net loss                                                                             $(1,422,049)                       $(1,190,961)
Adjustments to reconcile net loss to net
    cash used in operating activities:
        Share of income of local limited partnership investments                         (49,560)                           (23,524)
        Cash distributions from local limited partnerships                               288,086                            316,819
        Interest expense added to purchase money notes, net of discount amortization     924,074                            746,247
        Interest income added to long-term notes receivable, net of discount
          amortization, and interest received                                             (7,871)                           (10,653)
        Decrease (increase) in other current assets                                           11                            (38,882)
        (Decrease) increase in:
          Accrued interest payable                                                       189,913                             80,131
          Accounts payable to affiliates                                                 (26,497)                            48,668
          Accounts payable                                                                 1,004                               -
          Accrued expenses                                                               (14,500)                              -
                                                                                     -----------                       ------------

        Net cash used in operating activities                                        $  (117,389)                      $    (72,155)
                                                                                     ===========                       ============
</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 September 30,
1996. 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  Annual Report for the year
ended December 31, 1995.


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,
                                                    1996              1995
                                                -----------        ------------

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                     (3,793,287)         (3,842,845)

    Cash distributions received from Local
        Limited Partnerships                     (3,253,954)         (2,965,871)
                                                -----------        ------------

Investments in Local Limited Partnerships      $  2,320,563        $  2,559,088
                                               ============        ============









                                   (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 Nine Months Ended
                                                     September 30,
                                             -----------------------------
                                             1996                     1995
                                             ----                     ----

Rental and other income                   $3,890,563                $3,808,310
Expenses:
    Operating expenses                     2,464,566                 2,353,649
    Interest expense                         908,248                   928,703
    Depreciation and amortization            713,563                   713,563
                                          ----------                ----------
       Total expenses                      4,086,377                 3,995,915
                                          ----------                ----------

Net loss                                 $  (195,814)              $  (187,605)
                                         ===========               ===========

Partnership's share of net loss          $  (190,318)              $  (186,111)
                                         ===========               ===========

Other partners' share
    of net income (loss)                  $   (5,496)               $   (1,494)
                                          ==========                ==========


        The  differences  between the  Partnership's  share of income  (loss) in
Local  Limited  Partnership   investments  in  the  Partnership's  Statement  of
Operations  for the nine months ended  September 30, 1996 and 1995 and the share
of loss  in the  above  Summarized  Statements  of  Operations  consists  of the
Partnership's unrecorded share of losses as follows:

                                                     For the Nine Months Ended
                                                          September 30,
                                                    --------------------------
                                                    1996                 1995
                                                    ----                 ----
Share of income (loss) in Local Limited
    Partnership Investments in the
    Partnership's Statement of Operations         $ 49,560             $ 23,524

Partnership's share of loss in the above
    summarized Statements of Operations           (190,318)            (186,111)
                                                  --------            ---------
        Difference                                $239,878             $209,635
                                                  ========             ========

Unrecorded losses:
Linden Park                                       $165,293             $152,035
Brierwood Ltd.                                      21,709               13,435
Brierwood II, Ltd.                                   9,032                4,753
Pine Forest Apartments, Ltd.                        24,902               39,412
Surry Manor                                         18,942                    -
                                                 ---------             --------
    Total                                         $239,878             $209,635
                                                  ========             ========



                                   (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., and Surry Manor until
its related  investment was reduced to zero.  Subsequent to that point, any cash
distributions  received  from  these  five  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.


4.      Transactions with Affiliates

        During  the  nine  months  ended   September  30,  1996,  and  1995  the
Partnership  recognized general and administrative  expenses owed to the current
or predecessor Managing General Partner, as follows:
                                                1996              1995
                                                ----              ----
Reimbursement of Partnership
  administration expenses                     $36,234           $33,463
Partnership management fees                    37,500            37,500

        As of  September  30,  1996 and 1995,  accounts  payable  to  affiliates
totalling  $62,274  and  $54,870,  respectively,   represent  amounts  owed  for
reimbursements  of Partnership  administration  expenses of $11,774 and $17,370,
respectively,   and   partnership   management  fees  of  $50,500  and  $37,500,
respectively.


5.  Statement of Distributable Cash from Operations

        Distributable  Cash From  Operations for the nine months ended September
30, 1996, as defined in Section 17 of the Partnership Agreement, is as follows:

Interest income per Statement of Operations                       $  20,648

Less:  Interest income added to long-term notes
         receivable, net of discount amortization                   (11,863)

       General and administrative expenses per
         Statement of Operations                                    (87,717)
                                                                   --------
Cash from Operations, as defined                                    (78,932)
                                                                   --------
Distributable Cash from Operations, as defined                     $      -
                                                                   ========





                                        9

<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

  The aggregate  outstanding principal amount of and accrued and unpaid interest
on the Purchase Money Note obligations of the  Partnership,  as of September 30,
1996, was approximately $14,862,203.  The aggregate outstanding principal amount
of the  Purchase  Money  Notes  reported  on  the  Partnership's  Balance  Sheet
($9,075,646  at  September  30,  1996),  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  September  30,  1996,  the unpaid  principal  amount of and accrued and
unpaid interest on the Linden Park Associates Limited Partnership Notes equalled
$2,757,011.

  At September 30, 1996, the  Partnership's had reserves of $175,942 in cash and
cash equivalents.

  In 1996, the Partnership received $4,623 of interest payments on the long-term
purchase money notes of Linden Park Associates  Limited  Partnership held by the
Partnership,  and accrued unpaid interest of $108,958. As of September 30, 1996,
the outstanding  balance of principal and accrued and unpaid interest receivable
on these notes amounted to $282,761.

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  $1,422,049  in the first nine
months of 1996 from  $1,190,961 in the first nine months of 1995  primarily as a
result of the increase in the Partnership's interest expense.

       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  $4,702 to $20,648 in the first nine months of
1996 from the first nine months of 1995.  This decrease is  attributable to both
lower interest rates and lower cash balances.






                                       10

<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 $1,404,540 in the first
nine  months of 1996 from  $1,142,487  in the first  nine  months of 1995.  Such
increase is  attributable  to the accrual of interest  under the Purchase  Money
Notes.

       The  Partnership's  equity  in  income  (loss)  from  the  Local  Limited
Partnerships  was  $49,560 in the first nine  months of 1996 and  $23,524 in the
first nine months of 1995. The Partnership's  share of total net losses reported
from the Local Limited  Partnerships  increased by $4,207.  However,  losses not
recorded by the Partnership  from five Local Limited  Partnerships,  because its
related investment amount in such partnerships had already been reduced to zero,
increased  by  $30,243,  resulting  in a  net  increase  of  $26,036  in  income
recognized.




                                       11

<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
                                                President and CEO


                                    By:         TNG Properties Inc.
                                                Managing General Partner



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


Date:     November 12, 1996


                                       12