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, 1997


[ ] 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, September 30, 1997 and December 31, 1996          3-4

        Statements of Operations for the Three Months
          Ended September 30, 1997, and 1996 and the Nine Months
          Ended September 30, 1997 and 1996                                 5

        Statements of Cash Flows for the Nine Months Ended
          September 30, 1997, and 1996                                      6

        Notes to Financial Statements                                     7-9

Item 2. Management's Discussion and Analysis of Financial
        Condition and Results of Operations                             10-11



<PAGE>
<TABLE>
<CAPTION>

                  LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP
                      (A Massachusetts Limited Partnership)

                                 BALANCE SHEETS


                                             (Unaudited)                 (Audited)
                                         September 30, 1997          December 31, 1996
                                         -------------------         -----------------
<S>                                      <C>                         <C>
Assets

Current assets:

    Cash and cash equivalents               $   69,034                  $  163,915
                                                                       
    Other current assets                             0                          31
                                            ----------                  ----------
                                                                       
        Total current assets                    69,034                     163,946
                                                                       
Long-term notes and accrued interest                                   
    receivable                                 139,531                     127,668
                                                                       
Investments in local limited                                           
    partnerships                             2,132,096                   2,295,189
                                            ----------                  ----------
        Total assets                        $2,340,661                  $2,586,803
                                            ==========                  ==========
                                                                    
                                      

                                   (continued)

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

                                        3

<PAGE>

<CAPTION>

                      LIBERTY HOUSING PARTNERS LIMITED PARTNERSHIP
                         (A Massachusetts Limited Partnership)

                               BALANCE SHEETS (continued)


                                             (Unaudited)                 (Audited)
                                         September 30, 1997          December 31, 1996
                                         -------------------         -----------------
<S>                                     <C>                         <C>
Liabilities and Partners' Deficit

Current liabilities:
  Accounts payable to affiliates          $     50,776                $     58,271 
  Accounts payable                               3,792                       1,000
  Accrued expense                                 --                        15,600
  Accrued interest payable                     478,286                     385,901
                                          ------------                ------------
                                                                    
    Total current liabilities                  532,854                     460,772
                                                                    
Purchase money notes                        10,843,413                   9,684,281
                                          ------------                ------------
                                                                    
    Total liabilities                       11,376,267                  10,145,053
                                          ------------                ------------                              
Partners' deficit:                                                  
  General partners:                                               
    Capital contributions                        4,202                       4,202
    Capital distributions                          (22)                       --
    Accumulated losses                        (191,125)                   (176,373)
                                          ------------                ------------
                                              (186,945)                   (172,171)
                                          ------------                ------------                     
  Limited partners (21,576 Units):                                
    Capital contributions (net of                                   
      offering costs of $1,134,440)          9,649,520                   9,649,520
    Capital distributions                       (2,211)                       --
    Accumulated losses                     (18,495,970)                (17,035,599)
                                          ------------                ------------
                                            (8,848,661)                 (7,386,079)
                                          ------------                ------------
                                                                    
    Total partners' deficit                 (9,035,606)                 (7,558,250)
                                          ------------                ------------                                
    Total liabilities and partners'                                 
       deficit                            $  2,340,661                $  2,586,803
                                          ============                ============
</TABLE>
                                                        

      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 Month Ended 
                                             September 30,                      September 30,
                                    ---------------------------         ---------------------------
                                                                       
                                         1997           1996                  1997            1996
                                         ----           ----                  ----            ----
                                                                       
<S>                                 <C>            <C>                   <C>            <C>        
Interest income                     $    11,082    $     6,076           $    37,661    $    20,648
                                                                       
Expenses:                                                              
                                                                       
   Interest expense                     568,723        480,631             1,621,465      1,404,540
                                                                       
General and administrative                                             
   expense                               33,250         29,085               100,407         87,717
                                    -----------    -----------           -----------    -----------
                                                                       
Total expenses                          601,973        509,716             1,721,872      1,492,257
                                    -----------    -----------           -----------    -----------     
Loss before equity in local                                            
   limited partnership operations      (590,891)      (503,640)           (1,684,211)    (1,471,609)
                                    -----------    -----------           -----------    -----------
Equity in income (loss) of local                                       
   limited partnership investments      124,227         38,750               209,087         49,560
                                    -----------    -----------           -----------    -----------         
                                                                       
Net Loss                            $  (466,664)   $  (464,890)          $(1,475,124)   $(1,422,049)
                                    ===========    ===========           ===========    ===========
Net loss per Limited Partnership
 Unit, based on 21,576 Units
 outstanding in the first nine
 months of 1997 and 1996            $    (21.41)   $    (21.33)          $    (67.69)   $    (65.25)
                                    ===========    ===========           ===========    ===========




             The accompanying notes are an integral part of these financial statements.
</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,
                                                                          ----------------------------
                                                                               1997            1996
                                                                               ----            ----
<S>                                                                      <C>            <C>
Cash flows from operating activities:
  Cash distributions from local limited
    partnerships                                                           $   369,947    $   288,086
  Interest payments on purchase money notes                                   (369,947)      (290,553)
  Cash paid for Partnership administration
    expenses                                                                  (120,710)      (127,711)
  Interest received                                                             25,829         12,789                          
    Net cash provided by                                                   -----------    -----------     
         operating activities                                                  (94,881)      (117,389)
                                                                           -----------    -----------

Net decrease in cash and
  cash equivalents                                                             (94,881)      (117,389)

Cash and cash equivalents at:
  Beginning of period                                                          163,915        293,331
                                                                           -----------    -----------
  End of period                                                            $    69,034    $   175,942
                                                                           ===========    ===========

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

Net loss                                                                   $(1,475,123)   $(1,422,049)
Adjustments to reconcile net loss to net
  cash used in operating activities:
    Share of income of local limited                
      partnership investments                                                 (209,087)       (49,560)
    Cash distributions from local limited           
      partnerships                                                             369,947        288,086
    Interest expense added to purchase money        
      notes, net of discount amortization                                    1,159,132        924,074
    Interest income added to long-term              
      notes receivable, net of discount             
      amortization, and interest received                                      (11,863)        (7,871)
    Decrease (increase) in other current assets                                     31             11
    (Decrease) increase in:                         
      Accrued interest payable                                                  92,385        189,913
      Accounts payable to affiliates                                            (7,495)       (26,497)
      Accounts payable                                                           2,792          1,004
      Accrued expenses                                                         (15,600)       (14,500
    Net cash used by operating                                             -----------    -----------         
       activities                                                          $   (94,881)   $  (117,389)
                                                                           ===========    ===========


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

</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,
1997. 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, 1996.


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,
                                                  1997           1996
                                             ------------   -------------

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                    (3,631,432)    (3,818,174)
                                           
  Cash distributions received from Local   
      Limited Partnerships                    (3,626,621)    (3,254,441)
                                           
  Cash distributions received from Local   
      Limited Partnerships recognized as   
      investment income                           22,345           --
                                             -----------    -----------
                                         
Investments in Local Limited Partnerships    $ 2,132,096    $ 2,295,189
                                             ===========    ===========

                                   (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,
                                           --------------------------
                                               1997           1996
                                               ----           ----

Rental and other income                    $ 4,335,015   $ 3,890,563
Expenses:
    Operating expenses                       2,733,215     2,464,566
    Interest expense                           776,828       908,248
    Depreciation and amortization              726,139       713,563
                                           -----------   -----------
      Total expenses                         4,236,182     4,086,377
                                           -----------   -----------

Net income(loss)                           $    98,833   $  (195,814)
                                           ===========   ===========

Partnership's share of net income (loss)   $    98,750   $  (190,318)
                                           ===========   ===========

Other partners' share
    of net income (loss)                   $        83   $    (5,496)
                                           ===========   ===========

        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, 1997 and 1996 and the share
of net loss in the above  Summarized  Statements of  Operations  consists of the
following:
<TABLE>
<CAPTION>
                                                                      For the Nine Months Ended
                                                                            September 30,
                                                                 ---------------------------------
                                                                   1997                   1996
                                                                   ----                    ----
<S>                                                             <C>                     <C>
Share of income (loss) in Local Limited
    Partnership Investments in the
    Partnership's Statement of Operations                        $ 209,087               $  49,560
                                                                                        
Partnership's share of income (loss) in the above                                       
    summarized Statements of Operations                             98,750                (190,318)
                                                                 ---------               ---------
        Difference                                               $ 110,337               $ 239,878
                                                                 =========               =========
Partnership's unrecorded share of losses:                                               
    Linden Park                                                  $  36,666               $ 165,293
    Brierwood Ltd.                                                  14,061                  21,709
    Brierwood II, Ltd.                                               3,967                   9,032
    Pine Forest Apartments, Ltd.                                    17,703                  24,902
    Surry Manor                                                     15,595                  18,942
    Glendale Manor                                                    --                      --
                                                                 ---------               ---------
        Subtotal unrecorded losses                                  87,992                 239,878
Cash Distributions from Glendale Manor                                                  
    recorded as investment income                                   22,345                    --
                                                                 ---------               ---------
                                                                                        
        Total                                                    $ 110,337               $ 239,878
                                                                 =========               =========
</TABLE>
                                   (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  $2,233 during the first nine
months  of 1997 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,  1997,  and  1996  the
Partnership recognized general and administrative  expenses owed to the Managing
General Partner, as follows:

                                               1997                1996
                                               ----                ----
Reimbursement of Partnership
  administration expenses                    $45,004             $36,234
Partnership management fees                   37,500              37,500

        As of September  30, 1997 and December  31,  1996,  accounts  payable to
affiliates totalling $50,776 and $62,274,  respectively,  represent amounts owed
for reimbursements of Partnership administration expenses of $8,005 and $11,774,
respectively,   and   partnership   management  fees  of  $42,771  and  $50,500,
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, 1997, as defined in Section 17 of the Partnership Agreement, is as follows:

Interest income per Statement of Operations                  $  37,661

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

       General and administrative expenses per
         Statement of Operations                              (100,407)
                                                             ---------
Cash from Operations, as defined                               (74,609)
                                                             ---------
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
September  30,1997,  was approximately  $15,275,706.  The aggregate  outstanding
principal  amount of the  Purchase  Money Notes  reported  on the  Partnership's
Balance Sheet ($10,843,413 at September 30, 1997),  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, 1997, the unpaid  principal amount of and accrued and
unpaid interest on the Linden Park Associates Limited Partnership Notes equalled
$2,454,066.

         At September 30, 1997, the  Partnership had reserves of $69,034 in cash
and cash equivalents. Accrued interest totaling $369,947 due on certain Purchase
Money Notes was received and distributed in the second quarter of 1997.

         In 1997, the Partnership accrued interest of $11,732 on the Linden Park
Associates  Limited  Partnership  Notes  held by the  Partnership  and  received
$20,280 of interest  payments on these  notes.  As of September  30,  1997,  the
outstanding  balance of principal and accrued and unpaid interest  receivable on
these notes amounted to $250,659.

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  $1,475,124  in the first nine
months of 1997 from  $1,422,049 in the first nine months of 1996  primarily as a
result of the increase in the Partnership's interest expense of $216,925, net of
the increase in income of local limited  partnership  investments  recognized of
$159,527.

         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  increased  $17,013 to $37,661 in the first nine months of
1997  compared  to $20,648 in the first nine  months of 1996.  This  increase is
primarily  attributable  to  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 $1,621,465 in the first
nine  months of 1997 from  $1,404,540  in the first  nine  months of 1996.  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  $209,087  in the first  nine  months of 1997 and  $49,560 in the first nine
months of 1996.  The $159,527  increase in income  recognized  in the first nine
months of 1997 is attributable to an increase in the Partnership's  share of net
income  recorded of  $137,182,  plus the  recognition  of  investment  income of
$22,345 from a cash  distribution  from Glendale  Manor which would have reduced
its investment amount balance 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.


                                   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: November 13, 1997