<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

                QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

For the Quarter Ended June 30, 2006                 Commission File No. 0-15940

              UNIPROP MANUFACTURED HOUSING COMMUNITIES INCOME FUND,
                         A MICHIGAN LIMITED PARTNERSHIP
             (Exact name of registrant as specified in its charter)

            MICHIGAN                                          38-2593067
(State or other jurisdiction of                            (I.R.S. employer
 incorporation or organization)                         identification number)

                  280 DAINES STREET, BIRMINGHAM, MICHIGAN 48009
               (Address of principal executive offices) (Zip Code)

                                 (248) 645-9220
              (Registrant's telephone number, including area code)

           Securities registered pursuant to Section 12(g) of the Act:
             $1,000 per unit, units of limited partnership interest

      Indicate by check mark whether the registrant (1) has filed all reports
      required to be filed by Section 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. Yes [X] No [ ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-Q or any amendment to this
Form 10-Q [ ]

Indicate by check mark whether the Registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer. See definition of "accelerated
filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check
one):

 Large Accelerated Filer [ ]  Accelerated filer [ ]  Non-accelerated filer [X]

Indicate by check mark whether the Registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act) Yes [ ] No [X]

<PAGE>

             UNIPROP MANUFACTURED HOUSING COMMUNITIES INCOME FUND,
                         A MICHIGAN LIMITED PARTNERSHIP

                                      INDEX

<TABLE>
<CAPTION>
                                                                                Page
                                                                                ----
<S>                                                                             <C>
PART I       FINANCIAL INFORMATION

  ITEM 1.    FINANCIAL STATEMENTS

             Balance Sheets
             June 30, 2006 (Unaudited) and
             December 31, 2005                                                     3

             Statements of Operations
             Six months ended June 30, 2006 and 2005
             Three months ended June 30, 2006
             and 2005 (Unaudited)                                                  4

             Statement of Partner's Equity (Deficit)
             Six months ended June 30, 2006 (Unaudited)                            4

             Statements of Cash Flows
             Six months ended June 30, 2006
             and 2005 (Unaudited)                                                  5

             Notes to Financial Statements
             June 30, 2006 (Unaudited)                                             6

  ITEM 1A.   RISK FACTORS                                                          7

  ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS
             OF FINANCIAL CONDITION AND RESULTS
             OF OPERATIONS                                                         9

  ITEM 3.    QUANTITATIVE AND QUALITATIVE
             DISCLOSURES ABOUT MARKET RISK                                        12

  ITEM 4.    CONTROLS AND PROCEDURES                                              13

  PART II    OTHER INFORMATION
  ITEM 1.    LEGAL PROCEEDINGS                                                    14

  ITEM 6.    EXHIBITS                                                             14
</TABLE>

<PAGE>

              UNIPROP MANUFACTURED HOUSING COMMUNITIES INCOME FUND
                         A MICHIGAN LIMITED PARTNERSHIP

                                 BALANCE SHEETS

<TABLE>
<CAPTION>
ASSETS                                     JUNE 30, 2006     DECEMBER 31, 2005
                                           -------------     -----------------
                                            (UNAUDITED)
<S>                                        <C>               <C>
Properties:
  Land                                     $   5,280,000     $       5,280,000
  Buildings and Improvements                  26,587,747            26,509,706
  Furniture and Fixtures                         254,619               241,169
                                           -------------     -----------------
                                              32,122,366            32,030,875

  Less Accumulated Depreciation              (15,972,229)          (15,504,359)
                                           -------------     -----------------
                                              16,150,137            16,526,516

Cash And Cash Equivalents                         95,450               554,668
Cash - Security Escrow                           305,158               305,158
Unamortized Finance Costs                         65,548               108,548
Manufactured Homes and Improvements               36,569               996,878
Other Assets                                   1,122,903               602,787
                                           -------------     -----------------

Total Assets                               $  17,775,765     $      19,094,555
                                           -------------     -----------------
</TABLE>

<TABLE>
<CAPTION>
LIABILITIES AND PARTNERS' DEFICIT          JUNE 30, 2006     DECEMBER 31, 2005
                                           -------------     -----------------
                                            (UNAUDITED)
<S>                                        <C>               <C>
Note Payable-Bank                          $   1,322,500     $       1,397,500
Accounts Payable                                 182,700               695,415
Other Liabilities                              1,028,984               676,551
Note Payable-Affiliate                            85,717               920,714
Mortgage Payable                              30,531,659            30,762,766
                                           -------------     -----------------

Total Liabilities                          $  33,151,560     $      34,452,946

Partners' Equity (Deficit):
  General Partner                             (6,009,433)           (5,800,252)
  Class A Limited Partners                   (10,924,311)          (10,920,514)
  Class B Limited Partners                     1,557,949             1,362,375
                                           -------------     -----------------

Total Partners' Deficit                      (15,375,795)          (15,358,391)
                                           -------------     -----------------

Total Liabilities And
  Partners' Deficit                        $  17,775,765     $      19,094,555
                                           -------------     -----------------
</TABLE>

                        See Notes to Financial Statements

                                        3
<PAGE>

              UNIPROP MANUFACTURED HOUSING COMMUNITIES INCOME FUND
                         A MICHIGAN LIMITED PARTNERSHIP

<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS                                          SIX MONTHS ENDED                    THREE MONTHS ENDED
(UNAUDITED)                                               JUNE 30, 2006     JUNE 30, 2005     JUNE 30, 2006     JUNE 30, 2005
                                                          -------------     -------------     -------------     -------------
<S>                                                       <C>               <C>               <C>               <C>
Revenue:
  Rental Revenue                                          $   3,783,632     $   3,830,880     $   1,948,236     $   1,892,533
  Home Sale Revenue                                             954,654         1,111,634                 0           716,934
  Other Revenue                                                 825,885           215,699           417,925           112,437
                                                          -------------     -------------     -------------     -------------

Total Income                                              $   5,564,171     $   5,158,213     $   2,366,161     $   2,721,904
                                                          -------------     -------------     -------------     -------------

Operating Expenses:
  Administrative Expenses
  (Including $219,070, $201,698, $111,727 and $99,888
  in Property Management Fees Paid to An Affiliate for
  the Six and Three Month Period Ended June 30, 2006
  and 2005, respectively)                                     1,082,607           985,824           417,142           483,372
  Property Taxes                                                503,580           488,067           251,787           243,759
  Utilities                                                     312,342           278,032           150,693           136,811
  Property Operations                                           569,891           606,265           279,597           293,949
  Depreciation And Amortization                                 467,870           464,283           235,933           231,884
  Interest                                                    1,405,075         1,332,830           708,445           669,946
  Home Sale Expense                                             983,085         1,050,723           (21,371)          651,653
                                                          -------------     -------------     -------------     -------------

Total Operating Expenses                                  $   5,324,450     $   5,206,024     $   2,022,226     $   2,711,374
                                                          -------------     -------------     -------------     -------------

Net Income (Loss)                                         $     239,721     ($     47,811)    $     343,935     $      10,530
                                                          -------------     -------------     -------------     -------------

Income (Loss) Per Limited Partnership Unit:
  Class A                                                 $       (0.19)    $       (7.81)    $        5.85     $       (2.98)
  Class B                                                 $       20.02     $       12.25     $       16.04     $        7.03

Distribution Per Limited Partnership Unit
  Class A                                                 $        0.00     $        6.00     $        0.00     $        3.00
  Class B                                                 $        0.00     $        6.00     $        0.00     $        3.00

Weighted Average Number Of Limited
  Partnership Units Outstanding
   Class A                                                       20,230            20,230            20,230            20,230
   Class B                                                        9,770             9,770             9,770             9,770
</TABLE>

STATEMENT OF PARTNERS' EQUITY (DEFICIT) (UNAUDITED)

<TABLE>
<CAPTION>
                                                              TOTAL         GENERAL PARTNER     CLASS A LIMITED     CLASS B LIMITED
                                                          -------------     ---------------     ---------------     ---------------
<S>                                                       <C>               <C>                 <C>                 <C>
Balance as of January 1, 2006                             $ (15,358,391)    $    (5,800,252)    $   (10,920,514)    $     1,362,375
Net Income (Loss)                                               239,721              47,944              (3,797)            195,574
Distributions                                                  (257,125)           (257,125)                  0                   0
                                                          -------------       -------------       -------------       -------------
BALANCE AS OF JUNE 30, 2006                                 (15,375,795)         (6,009,433)        (10,924,311)          1,557,949
                                                          -------------       -------------       -------------       -------------
</TABLE>


                       See Notes to Financial Statements


                                        4
<PAGE>

              UNIPROP MANUFACTURED HOUSING COMMUNITIES INCOME FUND
                         A MICHIGAN LIMITED PARTNERSHIP

STATEMENTS OF CASH FLOWS
(UNAUDITED)

<TABLE>
<CAPTION>
                                                                    SIX MONTHS ENDED
                                                             JUNE 30, 2006      JUNE 30, 2005
                                                             -------------      -------------
<S>                                                          <C>                <C>
Cash Flows From Operating Activities:
  Net Income (Loss)                                          $     239,721      ($     47,811)
                                                             -------------      -------------

Adjustments To Reconcile Net (Loss)
 To Net Cash Provided By
  Operating Activities:
  Depreciation                                                     467,870            464,283
  Amortization                                                      43,000             43,000
  Decrease in Homes and Improvements                               204,130            110,848
  Increase In Other Assets                                        (520,116)          (427,177)
  (Decrease) Increase In Accounts Payable                         (512,715)            12,917
  Increase In Other Liabilities                                    352,433            340,795
                                                             -------------      -------------

Total Adjustments:                                                  34,602            544,666
                                                             -------------      -------------

   Net Cash Provided By Operating Activities                       274,323            496,855
                                                             -------------      -------------

Cash Flows Used In Investing Activities:
      Capital Expenditures                                         (91,491)          (179,903)
                                                             -------------      -------------

Cash Flows From Financing Activities:
      (Payments) Net Borrowing on Line of Credit                   (75,000)           365,000
      Distributions To Partners                                   (257,125)          (545,000)
      (Payments) Proceeds from Note Payable - Affiliate            (78,818)            12,314
      Principal Payments on Mortgage                              (231,107)          (212,976)
                                                             -------------      -------------

  Net Cash Used In Financing Activities                           (642,050)          (380,662)
                                                             -------------      -------------

Decrease In Cash and Equivalents                                  (459,218)           (63,710)

Cash and Cash Equivalents, Beginning                               554,668            200,760
                                                             -------------      -------------

Cash and Cash Equivalents, Ending                            $      95,450      $     137,050
                                                             -------------      -------------
</TABLE>

                        See Notes to Financial Statements

                                        5
<PAGE>

             UNIPROP MANUFACTURED HOUSING COMMUNITIES INCOME FUND,
                         A MICHIGAN LIMITED PARTNERSHIP

                          NOTES TO FINANCIAL STATEMENTS
                            June 30, 2006 (Unaudited)

1.    BASIS OF PRESENTATION:

The accompanying unaudited 2006 financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-Q and Article 10 of Regulation
S-X. Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been
included. The balance sheet at December 31, 2005 has been derived from the
audited financial statements at that date. Operating results for the three and
six months ended June 30, 2006 are not necessarily indicative of the results
that may be expected for the year ending December 31, 2006, or for any other
interim period. For further information, refer to the consolidated financial
statements and footnotes thereto included in the Partnership's Form 10-K for the
year ended December 31, 2005.

2.    RELATED PARTY TRANSACTION

On February 28, 2006, the Partnership sold its manufactured home inventory to an
affiliate of the General Partner for its fair market value of $875,197. The fair
market value was determined using The Manufactured Housing Appraisal Guide of
the National Automobile Dealers Association, as well as, comparables in each
market. Proceeds of the sale were used to pay off the $756,179 line of credit
with the buyer, Uniprop Homes, Inc., and the balance of $119,019 was received in
cash.

3.    CONTINGENCIES

A group of current residents, on March 4, 2005 filed a class action lawsuit in
the Circuit Court of Oakland County against the Partnership and the General
Partner of the Partnership claiming that the Old Dutch Farms community did not
honor its obligations with respect to operating various aspects of the
community. The class action status of the Plaintiffs was denied by the court. A
number of residents did choose to pursue their claims individually. The
Partnership had negotiated a settlement with the individual resident group and
attorneys of $71,000. However, the Partnership has negotiated a reduced
settlement of $48,000, of which $23,000 was paid on May 26, 2006. The remaining
balance of $25,000, due to legal counsel, was accrued in June 2006, payable in
3rd quarter, 2006.

                                      -6-
<PAGE>

ITEM 1A. RISK FACTORS

                FACTORS THAT MAY AFFECT FUTURE OPERATING RESULTS

The following risks and uncertainties could cause our business, financial
condition or results of operations to be materially adversely affected. In that
case, we might not be able to pay distributions on our Units, the net asset
values of the Units could decline, and a Unit holder might lose all or a portion
of its investment.

      1.    REAL ESTATE INVESTMENTS. The Partnership's investments are subject
            to the same risks generally incident to the ownership of real estate
            including: the uncertainty of cash flow to meet fixed or variable
            obligations, adverse changes in economic conditions, changes in the
            investment climate for real estate, adverse changes in local market
            conditions, changes in interest rates and the availability of
            mortgage funds or chattel financing, changes in real estate tax
            rates, governmental rules and regulations, acts of God and the
            inability to attract or retain residential tenants.

            Residential real estate, including manufactured housing communities,
            is subject to adverse housing pattern changes and uses, vandalism,
            rent controls, rising operating costs and adverse changes in local
            market conditions such as a decrease in demand for residential
            housing due to a decrease in employment. State governments also
            often regulate the relationship between manufactured housing
            community owners and residents.

      2.    THE GENERAL PARTNER AND ITS AFFILIATES HAVE CONFLICTS OF INTEREST.
            Although the General Partner has a fiduciary duty to manage the
            Partnership in a manner beneficial to the Unit holders, the
            directors and officers of the General Partner have a fiduciary duty
            to manage the General Partner in a manner beneficial to its owners.
            Furthermore, certain directors and officers of the General Partner
            are directors or officers of affiliates of the General Partner.
            Conflicts of interest may arise between the General Partner and its
            affiliates and the Unit holders. As a result of these conflicts, the
            General Partner may favor its own interests and the interests of its
            affiliates over the interests of the Unit holders.

      3.    RELIANCE ON GENERAL PARTNER'S DIRECTION AND MANAGEMENT OF THE
            PROPERTIES. The success of the Partnership will, to a large extent,
            depend on the quality of the management of the Properties by the
            General Partner and affiliates of the General Partner and their
            collective judgment with respect to the operation, financing and
            disposition of the Properties. To the extent that the General
            Partner and its affiliates are unable to hire and retain quality
            management talent, the Partnership's financial results and
            operations may be adversely affected.

                                      -7-
<PAGE>

      4.    FEDERAL INCOME TAX RISKS. Federal income tax considerations will
            affect materially the economic consequences of an investment in the
            Properties. The tax consequences of the Partnership's activities are
            complex and subject to many uncertainties. Changes in the federal
            income tax laws or regulations may adversely affect the
            Partnership's financial results and its ability to make
            distributions to the Unit holders. Additionally, the tax benefits
            enjoyed by the Unit holders may be reduced or eliminated.

      5.    LIMITED LIQUIDITY OF THE UNITS. The transfer of Units is subject to
            certain limitations. The public market for such Units is limited.
            Unit Holders may not be able to liquidate their investment promptly
            or at favorable prices, if at all.

      6.    COMPETITION. The business of owning and operating residential
            manufactured housing communities is highly competitive. The
            Partnership competes with a number of established communities having
            greater financial resources. Moreover, there has been a trend for
            manufactured housing community residents to purchase home sites
            either collectively or individually. Finally, the popularity and
            affordability of site built homes has also increased in recent years
            while the availability of chattel financing has decreased. These
            trends have resulted in increased competition for tenants to occupy
            the Partnership properties.

      7.    MANAGEMENT AND CONTROL OF PARTNERSHIP AFFAIRS. The General Partner
            is vested with full authority as to the general management and
            supervision of the business affairs of the Partnership. The Unit
            Holders do not have the right to participate in the management of
            the Partnership or its operations. However, the vote of Unit Holders
            holding more than 50% of the outstanding interests is required to:
            (a) amend the Partnership Agreement; (b) approve or disprove the
            sale in one, or a series of, transactions of all or substantially
            all of the assets of the Partnership; (c) dissolve the Partnership;
            (d) remove the General Partner; or (e) approve certain actions by
            the General Partner that the Consultant recommends against.

      8.    UNINSURED LOSSES. The Partnership carries comprehensive insurance,
            including liability, fire and extended coverage, and rent loss
            insurance which is customarily obtained for real estate projects.
            There are certain types of losses, however, that may be uninsurable
            or not economically insurable such as certain damage caused by a
            hurricane. If such losses were to be incurred, the financial
            position and operations of the Partnership as well as the
            Partnership's ability to make distributions would be adversely
            affected.

                                       -8-
<PAGE>

      9.    ENVIRONMENTAL MATTERS. Because the Partnership deals with real
            estate, it is subject to various federal, state and local
            environmental laws, rules and regulations. Changes in such laws,
            rules and regulations may cause the Partnership to incur increased
            costs of compliance which may have a material adverse effect on the
            operations of the Partnership and its ability to make distributions
            to Unit holders.

      10.   NO GUARANTEE OF DISTRIBUTIONS. The General Partner may withhold cash
            for extended periods of time if such cash is necessary to build cash
            reserves or for the conduct of the Partnership's business. A Unit
            holder will be required to pay federal income taxes, and, in some
            cases, state and local income taxes on the Unit holder's share of
            the Partnership's taxable income, whether or not cash distributions
            are made by the Partnership. A Unit holder may not receive cash
            distributions from the Partnership equal to the holder's share of
            taxable income or even equal to the tax liability that results from
            the Unit holder's share of the Partnership's taxable income.

      11.   THE PARTNERSHIP MAY NOT BE ABLE TO GENERATE SUFFICIENT WORKING
            CAPITAL TO FUND ITS OPERATIONS. There can be no assurance that the
            Partnership will generate sufficient working capital from operations
            to operate the business or to fund distributions. Further, there can
            be no assurance that the Partnership will be able to borrow
            additional funds on terms favorable to the Partnership, if at all,
            to meet unanticipated working capital needs or to make distributions
            to the Unit holders.

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

Capital Resources

The Partnership's capital resources consist primarily of its four manufactured
housing communities. On March 25, 1997 the Partnership borrowed $33,500,000 from
Nomura Asset Capital Corporation (the "Financing"). It secured the Financing by
placing liens on its four communities. As a result of the Financing, the
Partnership distributed $30,000,000 to the Limited Partners, which represented a
full return of the original capital contributions of $1,000 per unit.

On February 28, 2006, the Partnership sold its manufactured home inventory to an
affiliate of the General Partner for its fair market value of $875,197. The fair
market value was determined using The Manufactured Housing Appraisal Guide of
the National Automobile Dealers Association, as well as, comparables in each
market. The consideration for the sale was used to reduce the $756,179 line of
credit with the buyer, Uniprop Homes, Inc., and the balance of $119,019 was
received in cash.

                                       -9-
<PAGE>

Liquidity

As a result of the Financing, the Partnership's four properties are mortgaged.
At the time of the Financing, the aggregate principal amount due under the four
mortgage notes was $33,500,000 and the aggregate fair market value of the
Partnership's mortgaged properties was $53,200,000. The Partnership expects to
meet its short-term liquidity needs generally through its working capital
provided by operating activities.

The Partnership's long-term liquidity is based, in part, upon its investment
strategy. The properties owned by the Partnership were anticipated to be held
for seven to ten years after their acquisition. All of the properties have been
owned by the Partnership more than ten years. The General Partner may elect to
have the Partnership own the properties for as long as, in the opinion of the
General Partner, it is in the best interest of the Partnership to do so. As of
June 30, 2006, the Partnership's cash balance amounted to $95,450. The level of
cash balance maintained is at the discretion of the General Partner.

The Partnership has a renewable $1,000,000 line of credit with National City
Bank of Michigan/Illinois. The interest rate floats at 180 basis points above 1
month LIBOR which was 7.135% at June 30, 2006. As of June 30, 2006 the
outstanding balance of this credit facility was $660,000.

The Partnership has an unsecured term note with National City Bank of the
Midwest for $750,000, requiring monthly payments of $12,500 plus interest at
LIBOR plus 1.80% which was 7.135% at June 30, 2006 and is due on October 19,
2010. This term note was established for the cost of the sewer connection at Old
Dutch Farms. The outstanding balance under this agreement was $662,500 at June
30, 2006.

The quarterly Partnership Management Distribution due to the General Partner
during the first quarter results was $157,125, or one-fourth of 1.0% of the most
recent appraised value of the properties held by the Partnership ($62,850,000 x
1/4 %= $157,125).

The General Partner has continued to suspend payment of the Incentive Management
Distribution during this quarter.

                                      -10-
<PAGE>

Results of Operations

OVERALL, as illustrated in the tables below, the four properties had a combined
average occupancy of 68% at the end of June 2006, versus 75% a year ago. The
average monthly rent in June 2006 was approximately $499; compared to the $488
average monthly rent in June 2005 (average rent not a weighted average).

<TABLE>
<CAPTION>
                               Total      Occupied    Occupancy    Average*
                              Capacity      Sites        Rate         Rent
<S>                           <C>         <C>         <C>          <C>
Aztec Estates                     645         489        76%       $    543
Kings Manor                       314         272        87             550
Old Dutch Farms                   293         136        46             450
Park of the Four Seasons          572         368        64             454
                              -------     -------     -----        --------
Total on 6/30/06:               1,824       1,265        68%       $    499
Total on 6/30/05:               1,824       1,366        75%       $    488
</TABLE>

* Not  a weighted average

<TABLE>
<CAPTION>
                                   GROSS REVENUE         NET INCOME (LOSS)         GROSS REVENUE         NET INCOME (LOSS)
                                THREE MONTHS ENDED      THREE MONTHS ENDED        SIX MONTHS ENDED       SIX MONTHS ENDED
                             -----------------------  ----------------------  -----------------------  ----------------------
                               06/30/06    06/30/05    06/30/06    06/30/05    06/30/06     06/30/05    06/30/06    06/30/05
                             -----------  ----------  ----------  ----------  ----------  -----------  ----------  ----------
<S>                          <C>          <C>         <C>         <C>         <C>         <C>          <C>         <C>
Aztec Estates                $ 1,133,837  $  996,818  $  705,898  $  418,320  $2,511,478  $ 1,963,265  $1,237,674  $  771,676
Kings Manor                      554,779     829,971     402,983     348,974   1,356,128    1,421,339     766,617     633,435
Old Dutch Farms                  189,456     290,859     142,008      83,588     590,890      543,552     107,070     179,296
Park of the Four Seasons         480,376     600,245     256,942     303,772   1,094,218    1,223,875     501,978     635,490
                             -----------  ----------  ----------  ----------  ----------  -----------  ----------  ----------
                               2,358,448   2,717,893   1,507,831   1,154,654   5,552,714    5,152,031   2,613,339   2,219,897
Partnership
   Management                      7,713       4,011     (91,276)    (84,181)     11,457        6,182    (243,991)   (168,091)

Other
Expenses                                                (128,242)   (158,113)                            (256,682)   (302,504)

Interest Expense                                        (708,445)   (669,946)                          (1,405,075) (1,332,830)

Depreciation                                            (235,933)   (231,884)                            (467,870)   (464,283)

TOTAL:                       $ 2,366,161 $ 2,721,904  $  343,935  $   10,530  $5,564,171  $ 5,158,213  $  239,721  $  (47,811)

</TABLE>

                                      -11-
<PAGE>

COMPARISON OF THREE MONTHS ENDED JUNE 30, 2006 TO THREE MONTHS ENDED JUNE 30,
2005

Gross revenues decreased $355,743 to $2,366,161 in 2006, as compared to
$2,721,904 in 2005. The decrease was the result of the elimination of home sale
activities due to the sale of the home inventory to Uniprop Homes, Inc., as
previously discussed.

As described in the Statements of Operations, total operating expenses were
$689,148 lower, moving from $2,711,374 in 2005 to $2,022,226. The decrease was
also due to the elimination of home sale activities due to the sale of the home
inventory to Uniprop Homes, Inc.

As a result of the aforementioned factors, the Partnership had net income of
$343,935 for the second quarter of 2006 compared to $10,530 for the same quarter
of the prior year.

COMPARISON OF SIX MONTHS ENDED JUNE 30, 2006 TO SIX MONTHS ENDED JUNE 30, 2005

Gross revenues increased $405,958 to $5,564,171 in 2006, as compared to
$5,158,213 in 2005. The increase was mainly due to other income from FEMA at
Aztec Estates, and insurance proceeds for rebuilding the community center at
Kings Manor due to hurricane Wilma.

As described in the Statements of Operations, total operating expenses were
$118,426 higher, moving from $5,206,024 in 2005 to $5,324,450 in 2006. The
increase was mainly due to higher wages to manage the increased occupancy
relating to FEMA at Aztec Estates, and clean up of hurricane Wilma at both Aztec
Estates and Kings Manor.

As a result of the aforementioned factors, the Partnership had net income of
$239,721 for the first six months of 2006 compared to a net loss of $47,811 for
the same period of the prior year.

ITEM 3.

                          QUANTITATIVE AND QUALITATIVE
                          DISCLOSURES ABOUT MARKET RISK

The Partnership is exposed to interest rate rise primarily through its borrowing
activities. There is inherent roll over risk for borrowings as they mature and
are renewed at current market rates. The extent of this risk is not quantifiable
or predictable because of the variability of future interest rates and the
Partnership's future financing requirements.

      Note Payable: At June 30, 2006, the Partnership had a note payable
outstanding in the amount of $30,531,659. Interest on this note is at a fixed
annual rate of 8.24% through July 2007.

                                      -12-
<PAGE>
      Line-of-Credit: At June 30, 2006 the Partnership owed $660,000 under its
line-of-credit agreement, whereby interest is charged at a variable rate of
1.80% in excess of One Month LIBOR which was 7.135% as of June 30, 2006.

      Term-Note: The Partnership has obtained an unsecured term note with
National City Bank of the Midwest for $750,000, requiring monthly payments of
$12,500 plus interest at LIBOR plus 1.80% which was 7.135% at June 30, 2006 and
is due on October 19, 2010. This term note was established for the cost of the
sewer connection at Old Dutch Farms. The outstanding balance under this
agreement was $662,500 at June 30, 2006.

      Note Payable - Affiliate: The Partnership has an unsecured note with an
affiliated entity that expires in January 2011 used for financing the purchase
of managers' homes. Interest on the outstanding balance is charged at a fixed
rate of 12%. The outstanding balance under this agreement was $85,717 as of June
30, 2006.

A 10% adverse change in interest rates of the portion of the Partnership's debt
bearing interest at variable rates would result in an increase in interest
expense of less than $10,000 annually.

The Partnership does not enter into financial instruments transactions for
trading or other speculative purposes or to manage its interest rate exposure.

ITEM 4. CONTROLS AND PROCEDURES

As of the end of the period covered by this report, the Partnership carried out
an evaluation, under the supervision and with the participation of the Principal
Executive Officer and the Principal Financial Officer, of the effectiveness of
the design and operation of our disclosure controls and procedures pursuant to
Exchange Act Rule 13a-15. Based upon, and as of the date of, this evaluation,
the Principal Executive Officer and the Principal Financial Officer concluded
that our disclosure controls and procedures are effective to ensure that
information required to be disclosed in the quarterly report is recorded,
processed, summarized and reported as and when required.

There was no change in the Partnership's internal controls over financial
reporting that occurred during the most recent completed quarter that has
materially affected, or is reasonably likely to materially affect, the
Partnership's internal control over financial reporting.

                                      -13-
<PAGE>

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDING

See Note 3 of the Notes to Unaudited Financial Statements for information
concerning legal proceedings.

ITEM 6. EXHIBITS

EXHIBIT 31.1    Principal Executive Officer Certification pursuant to Rule
                13a-14(a)/15d- 14(a) of The Securities and Exchange Act of 1934,
                as amended

EXHIBIT 31.2    Principal Financial Officer Certification pursuant to Rule
                13a-14(a)/15d- 14(a) of The Securities and Exchange Act of 1934,
                as amended

EXHIBIT 32.1    Certifications pursuant to 18 U.S C. Section 1350, as adopted
                pursuant to Section 906 of the Sarbanes -Oxley Act of 2002.

                                      -14-
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                   Uniprop Manufactured Housing
                                   Communities Income Fund,
                                   A Michigan Limited Partnership

                               BY: P.I. Associates Limited Partnership,
                                   A Michigan Limited Partnership,
                                   its General Partner

                               BY: /s/ Paul M. Zlotoff
                                   ---------------------------------------------
                                   Paul M. Zlotoff, General Partner

                               BY: /s/ Joel Schwartz
                                   ---------------------------------------------
                                   Joel Schwartz, Principal Financial Officer

Dated: August 11, 2006

<PAGE>

                                  EXHIBIT INDEX

<TABLE>
<CAPTION>
EXHIBIT NO.                         EXHIBIT DESCRIPTION
------------    ----------------------------------------------------------------
<S>             <C>
EXHIBIT 31.1    Principal Executive Officer Certification pursuant to Rule
                13a-14(a)/15d- 14(a) of The Securities and Exchange Act of 1934,
                as amended

EXHIBIT 31.2    Principal Financial Officer Certification pursuant to Rule
                13a-14(a)/15d- 14(a) of The Securities and Exchange Act of 1934,
                as amended

EXHIBIT 32.1    Certifications pursuant to 18 U.S C. Section 1350, as adopted
                pursuant to Section 906 of the Sarbanes -Oxley Act of 2002.
</TABLE>