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 quarterly period ended                 September 30, 1997
                               -------------------------------------------------

                                       OR

[ ]  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                              0-18558
                       ---------------------------------------------------------

                          Northstar Income Fund-I, L.P.
                          -----------------------------
             (Exact name of registrant as specified in its charter)


       Delaware                                          84-1105225
-----------------------                     ------------------------------------
(State of organization)                     (I.R.S. Employer Identification No.)

 7175 West Jefferson Avenue, Suite 4000
         Lakewood, Colorado                                80235
----------------------------------------                ----------
(Address of principal executive offices)                (Zip Code)

        Registrant's telephone number, including area code (303) 980-1000
                                                           --------------

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. Yes   X    No      .
                                       -----     -----

                        Exhibit Index Appears on Page 11

                               Page 1 of 12 Pages


<PAGE>



                          NORTHSTAR INCOME FUND-I, L.P.

                          Quarterly Report on Form 10-Q
                              for the Quarter Ended
                               September 30, 1997


                                Table of Contents
                                -----------------


PART I.     FINANCIAL INFORMATION                                           PAGE
                                                                            ----

   Item 1.  Financial Statements (Unaudited)

            Balance Sheets-September 30, 1997 and December 31, 1996          3

            Statements of Income-Three and Nine months ended
            September 30, 1997 and 1996                                      4

            Statements of Cash Flows-Nine months ended
            September 30, 1997 and 1996                                      5

            Notes to Financial Statements                                    6

   Item 2.  Management's Discussion and Analysis of Financial
            Condition and Results of Operations                             7-10


PART II.    OTHER INFORMATION


   Item 1.  Legal Proceedings                                               11

   Item 6.  Exhibits and Reports on Form 8-K                                11

            Signature                                                       12

                                        2

<PAGE>



                          NORTHSTAR INCOME FUND-I, L.P.

                                 BALANCE SHEETS
                                   (Unaudited)


                                     ASSETS
                                                    September 30,   December 31,
                                                        1997           1996
                                                    -------------   ------------

Cash and cash equivalents                            $ 1,004,883    $ 2,456,349
Accounts receivable                                      297,717        278,149
Equipment held for sale or re-lease                      225,992        324,180
Net investment in direct finance leases                   53,793        131,963
Leased equipment, net                                    654,113      1,054,064
                                                     -----------    -----------

                  Total assets                       $ 2,236,498    $ 4,244,705
                                                     ===========    ===========


                        LIABILITIES AND PARTNERS' CAPITAL

LIABILITIES:
  Accounts payable and accrued liabilities           $   215,672    $   672,315
  Payable to affiliates                                    6,118         22,881
  Rents received in advance                                  710         18,188
  Distributions payable to partners                      204,537      1,317,168
                                                     -----------    -----------

                  Total liabilities                      427,037      2,030,552
                                                     -----------    -----------
PARTNERS' CAPITAL (DEFICIT):
  General partners                                      (578,739)      (578,739)
  Limited partners:
    Class A                                              395,826        790,910
    Class B                                            1,992,374      2,001,982
                                                     -----------    -----------

      Total partners' capital                          1,809,461      2,214,153
                                                     -----------    -----------

      Total liabilities and partners' capital        $ 2,236,498    $ 4,244,705
                                                     ===========    ===========


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

                                        3

<PAGE>



                          NORTHSTAR INCOME FUND-I L.P.

                              STATEMENTS OF INCOME
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                      Three months ended            Nine months ended
                                                         September 30,                 September 30,
                                                 ----------------------------    -----------------------------
                                                    1997            1996           1997             1996
                                                 -----------      -----------   ------------    -------------
<S>                                              <C>             <C>            <C>            <C>        
REVENUE:
   Operating lease rentals                        $  195,136      $  379,425     $  667,842     $ 1,259,049
   Direct financing lease income                       8,472          29,193         29,793         112,565
   Equipment sales margin                             52,504         211,354        144,410         478,455
   Interest income                                    12,691          18,483         40,538          96,821
                                                  ----------      ----------     ----------     -----------
         Total revenue                               268,803         638,455        882,583       1,946,890
                                                  ----------      ----------     ----------     -----------

EXPENSES:
   Depreciation and amortization                     138,758         272,832        429,565         929,493
   Provision for losses                                    -               -              -               -
   Management fees paid to general partners           11,916          18,832         37,460          66,115
   Direct services from general partners              15,934          14,281         46,216          50,433
   General and administrative                         35,493          32,047        150,592         206,777
                                                  ----------      ----------     ----------     -----------
         Total expenses                              202,101         337,992        663,833       1,252,818
                                                  ----------      ----------     ----------     -----------

NET INCOME                                        $   66,702      $  300,463     $  218,750     $   694,072
                                                  ==========      ==========     ==========     ===========
NET INCOME ALLOCATED:
   To the general partners                        $    7,158      $   47,447     $   21,821     $   111,458
   To the Class A limited partners                    55,471         235,710        183,460         542,766
   To the Class B limited partner                      4,073          17,306         13,469          39,848
                                                  ----------      ----------     ----------     -----------
                                                  $   66,702      $  300,463     $  218,750     $   694,072
                                                  ==========      ==========     ==========     ===========
   Net income per weighted average Class A
        limited partner unit outstanding          $      .53      $     2.25     $     1.75     $      5.18
                                                  ==========      ==========     ==========     ===========
   Weighted average Class A limited partner
        units outstanding                            104,802         104,802        104,802         104,802
                                                  ==========      ==========     ==========     ===========


</TABLE>


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

                                        4

<PAGE>



                          NORTHSTAR INCOME FUND-I, L.P.

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)


                                                        Nine months ended
                                                    ---------------------------
                                                           September 30,
                                                        1997           1996
                                                    ------------   ------------
NET CASH PROVIDED BY OPERATING ACTIVITIES           $    284,606   $  3,124,438
                                                    ------------   ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Distributions to partners                          (1,736,072)    (2,682,860)
                                                    ------------   ------------
Net cash used in financing activities                 (1,736,072)    (2,682,860)
                                                    ------------   ------------
NET (DECREASE) INCREASE IN CASH AND
  CASH EQUIVALENTS                                    (1,451,466)       441,578

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD       2,456,349      1,729,305
                                                    ------------  -------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD          $  1,004,883   $  2,170,883
                                                    ============   ============





















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

                                        5

<PAGE>



                          NORTHSTAR INCOME FUND-I, L.P.

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)


1.    Basis of Presentation
      ---------------------

      The  accompanying  unaudited  financial  statements  have been prepared in
      accordance  with  generally  accepted  accounting  principles  for interim
      financial  information and the instructions to Form 10-Q and Rule 10-01 of
      Regulation  S-X.  Accordingly,  they do not include all of the information
      and disclosures  required by generally accepted accounting  principles for
      annual financial statements.  In the opinion of the general partners,  all
      adjustments  (consisting only of normal recurring adjustments)  considered
      necessary for a fair presentation have been included. The balance sheet at
      December 31, 1996 has been derived from the audited  financial  statements
      included in the  Partnership's  1996 Form 10-K.  For further  information,
      refer to the financial  statements of Northstar  Income Fund-I,  L.P. (the
      "Partnership"),  and the related notes,  included within the Partnership's
      Annual  Report on Form 10-K for the year ended  December  31,  1996,  (the
      "1996 Form  10-K")  previously  filed  with the  Securities  and  Exchange
      Commission.



                                        6

<PAGE>



                          NORTHSTAR INCOME FUND-I, L.P.

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

Results of Operations
---------------------

Presented below are schedules  (prepared  solely to facilitate the discussion of
results of  operations  that  follows)  showing  condensed  statements of income
categories and analyses of changes in those  condensed  categories  derived from
the Statements of Income:

<TABLE>
<CAPTION>


                                   Condensed Statements                        Condensed Statements
                                       of Income for         The effect on       of Income for            The effect on
                                     the three months         net income         the nine months            net income
                                    ended September 30,       of changes      ended September 30,           of changes
                                 -------------------------     between       -------------------------       between
                                    1997          1996         periods          1997           1996          periods
                                 ----------    -----------  -------------    ----------     ----------    -------------

<S>                             <C>            <C>          <C>             <C>            <C>            <C>        
Leasing margin                   $   64,850     $ 135,786    $  (70,936)     $  268,070     $  442,121     $ (174,051)
Equipment sales margin               52,504       211,354      (158,850)        144,410        478,455       (334,045)
Interest income                      12,691        18,483        (5,792)         40,538         96,821        (56,283)
Management fees paid to
   general partners                 (11,916)      (18,832)        6,916         (37,460)       (66,115)        28,655
Direct services from
   general partners                 (15,934)      (14,281)       (1,653)        (46,216)       (50,433)         4,217
General and administrative          (35,493)      (32,047)       (3,446)       (150,592)      (206,777)        56,185
                                 ----------    ----------    ----------      ----------     ----------     ----------

Net income                       $   66,702     $ 300,463    $ (233,761)     $  218,750     $  694,072     $ (475,322)
                                 ==========     =========    ==========      ==========     ==========     ==========
</TABLE>

The  Partnership  is in its  liquidation  period as defined  in the  Partnership
Agreement  and,  as  expected,  the  Partnership  is not  purchasing  additional
equipment,  initial  leases are expiring and the  equipment is being  remarketed
(i.e.,  re-leased,  renewed  or  sold).  As a  result,  both  the  size  of  the
Partnership's  leasing portfolio and the amount of leasing revenue are declining
(referred to in this discussion as "portfolio run-off").

Leasing Margin

Leasing margin consists of the following:

<TABLE>
<CAPTION>

                                         Three months ended            Nine months ended
                                            September 30,                 September 30,
                                      -------------------------  ---------------------------
                                         1997           1996        1997           1996
                                      -----------   -----------  -----------    ------------

<S>                                  <C>           <C>          <C>             <C>        
Operating lease rentals               $  195,136    $  379,425   $  667,842      $ 1,259,049
Direct finance lease income                8,472        29,193       29,793          112,565
Depreciation and amortization           (138,758)     (272,832)    (429,565)        (929,493)
                                      ----------    ----------   ----------      -----------
   Leasing margin                     $   64,850    $  135,786   $  268,070      $   442,121
                                      ==========    ==========   ==========      ===========

   Leasing margin ratio                       32%           33%          38%              32%
                                              ==            ==           ==               ==
</TABLE>

                                        7

<PAGE>


                          NORTHSTAR INCOME FUND-I, L.P.

Item 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operations, continued


Results of Operations, continued
---------------------

LEASING MARGIN, continued

Leasing  margin  decreased and is expected to decrease  further,  primarily as a
result of portfolio run-off.

The ultimate rate of return on leases depends,  in part, on the general level of
interest  rates  at the  time  the  leases  are  originated,  as well as  future
equipment  values and on-going  lessee  creditworthiness.  Because leasing is an
alternative to financing equipment purchases with debt, lease rates tend to rise
and fall with  interest  rates  (although  lease rate  movements  generally  lag
interest rate changes in the capital markets). Interest rates declined from 1990
until the early part of 1994.  The lease  rates on  equipment  purchased  by the
Partnership during this period reflect this low interest rate environment.  This
will  result in  corresponding  reductions  in the  ultimate  overall  yields to
partners.  Annual average 5-year U.S.  Treasury  yields for the past seven years
were as follows:

Annual average 5-year U.S. Treasury Yield

         Year                               Yield
         ----                               -----

         1990                                8.37
         1991                                7.37
         1992                                6.19
         1993                                5.14
         1994                                6.69
         1995                                6.53
         1996                                6.18

EQUIPMENT SALES MARGIN

Equipment sales margin consists of the following:

                                Three months ended        Nine months ended
                                   September 30,             September 30,
                            ------------------------   -------------------------
                               1997         1996          1997          1996
                            ----------   -----------   -----------   -----------

Equipment sales revenue     $  65,250    $  754,575    $  239,136   $ 1,468,267
Cost of equipment sales       (12,746)     (543,221)      (94,726)     (989,812)
                            ---------    ----------    ----------   -----------
   Equipment sales margin   $  52,504    $  211,354    $  144,410   $   478,455
                            =========    ==========    ==========   ===========

                                        8

<PAGE>


                          NORTHSTAR INCOME FUND-I, L.P.

Item 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operations, continued


Results of Operations, continued
---------------------

EQUIPMENT SALES MARGIN, continued

The Partnership is in its liquidation period.  During the liquidation period, as
initial leases terminate,  the equipment is being remarketed (i.e., re-leased or
sold to either the  original  lessee or a third  party)  and,  accordingly,  the
timing and amount of equipment sales cannot be projected accurately.

INTEREST INCOME

The  decline  in  interest  income is due to  decreases  in cash  available  for
investment.

PROVISION FOR LOSSES

The  remarketing  of  equipment  for an amount  greater  than its book  value is
reported as  equipment  sales  margin (if the  equipment  is sold) or as leasing
margin  (if the  equipment  is  re-leased).  The  realization  of less  than the
carrying  value of  equipment  (which is typically  not known until  remarketing
subsequent  to the  initial  lease  termination  has  occurred)  is  recorded as
provision for losses.

Residual values are established equal to the estimated value to be received from
the equipment following termination of the lease. In estimating such values, the
Partnership considers all relevant facts regarding the equipment and the lessee,
including,  for  example,  the  likelihood  that the lessee  will  re-lease  the
equipment.  The nature of the  Partnership's  leasing  activities is that it has
credit  exposure and residual value exposure and,  accordingly,  in the ordinary
course of business,  it will incur losses from those exposures.  The Partnership
performs   ongoing   quarterly   assessments  of  its  assets  to  identify  any
other-than-temporary losses in value.

No provision for losses were recorded because no other-than-temporary  losses in
the value of equipment  were  identified  in the  quarterly  assessments  of the
Partnership's assets.

EXPENSES

Management fees paid to general partners,  direct services from general partners
and general  and  administrative  expenses  decreased  primarily  as a result of
portfolio run-off. General and administrative expenses for the nine months ended
September 30, 1996 included  $67,194  reimbursed to the CAI general  partner for
insurance costs related to prior years.




                                        9

<PAGE>


                          NORTHSTAR INCOME FUND-I, L.P.

Item 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operations, continued


Liquidity and Capital Resources
-------------------------------

The Partnership funds its activities  principally with cash from rents, interest
income and sale of off-lease equipment.  Available cash and cash reserves of the
Partnership  are  invested in interest  bearing  accounts  and  short-term  U.S.
government securities pending distributions to the partners.

During the nine months  ended  September  30,  1997,  the  Partnership  declared
distributions  to the  Partners  of  $623,441  (a  substantial  portion of which
constituted a return of capital).  Distributions  may be characterized  for tax,
accounting and economic purposes as a return of capital,  a return on capital or
both. The total return on capital over a leasing  partnership's life can only be
determined at the termination of the  Partnership  after all residual cash flows
(which include  proceeds from the re-leasing and sale of equipment after initial
lease terms expire) have been realized.  However,  as the general  partners have
represented   for  the  last  several  years,  a  substantial   portion  of  all
distributions to the partners is expected to be a return of capital.

The general  partners  currently  anticipate that the Partnership  will generate
cash flow from  operations  and  equipment  sales  during the  remainder of 1997
which,  when  added  to cash  and  cash  equivalents  on  hand,  should  provide
sufficient  cash to  enable  the  Partnership  to  meet  its  current  operating
requirements.

The general  partners have also  identified  what they believe to be an error in
the  allocation  of  taxable  income  provision  of the  Partnership  Agreement.
Specifically,  the general  partners  are not  allocated  income for entire cash
distributions  received resulting in a deficit capital account.  The status of a
potential change in the allocation of taxable income remains  unresolved pending
further  discussions  between  the CAI General  Partner  and the Lehman  General
Partner.

The Partnership anticipates that it will fund the remaining distributions to the
limited  partners (a  substantial  portion of which is  expected  to  constitute
returns of capital) out of cash from operations and cash from sales.  Because of
portfolio  runoff,  it is  anticipated  that cash from  operations  in 1997 will
decrease relative to cash from operations in 1996. Therefore, the Partnership is
not  expected  to have  sufficient  cash  available  in 1997 to fully  fund cash
distributions  to the Class A limited  partners at annualized  rates of 14% (see
discussion  below).  The Partnership is in its liquidation period (as defined in
the Partnership  Agreement) and distributions during the liquidation period will
be based upon cash availability and will vary. As the Partnership's equipment is
sold,  proceeds  from such sales will be  distributed  also.  Although it is the
general  partners'  current  intent is to sell the  Partnership's  equipment and
liquidate  the  Partnership  no later than December 31, 1997,  certain  on-going
litigation may cause the Partnership to remain active beyond this date.

The Class B distributions  of cash from operations are subordinated to the Class
A limited partners receiving distributions of cash from operations, as scheduled
in  the  Partnership  Agreement.  Therefore,  because  of  the  decrease  in the
distributions to the Class A limited partners  effective as of March 1994, CAII,
the sole Class B limited partner,  ceased  receiving  distributions of cash from
operations as of March 1994. The general partners currently anticipate that CAII
will receive  total future Class B  distributions  equal to less than 10% of the
Class B limited partner's capital shown on the accompanying Balance Sheets.

                                       10

<PAGE>



                          NORTHSTAR INCOME FUND-I, L.P.

                                    PART II.

                                OTHER INFORMATION



Item 1.    Legal Proceedings

           The Partnership is involved in routine legal  proceedings  incidental
           to the conduct of its business.  The general partners believe none of
           these legal  proceedings  will have a material  adverse effect on the
           financial condition or operations of the Partnership.  Other than the
           potential delay in the final liquidations.

Item 6.    Exhibits and Reports on Form 8-K

       (a) None

       (b) The  Partnership  did not file any  reports  on Form 8-K  during  the
           quarter ended September 30, 1997.


                                                        11

<PAGE>



                          NORTHSTAR INCOME FUND-I, L.P.

                                    Signature



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



                                      NORTHSTAR INCOME FUND-I, L.P.

                                      By:  CAI Equipment Leasing I Corp.


Dated:  November 12, 1997             By:  /s/Anthony M. DiPaolo
                                           ---------------------
                                           Anthony M. DiPaolo
                                           Senior Vice President


                                       12