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, 1996
                                    --------------------------------------------

                                       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, 1996


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

PART I.       FINANCIAL INFORMATION                                        PAGE
                                                                           ----

    Item 1.   Financial Statements (Unaudited)

              Balance Sheets-September 30, 1996 and
                December 31, 1995                                           3

              Statements of Income-Three and Nine months ended
              September 30, 1996 and 1995                                   4

              Statements of Cash Flows-Nine months ended
              September 30, 1996 and 1995                                   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)


                                                     September 30,  December 31,
                                                        1996           1995
                                                     -------------  ------------

                                     ASSETS

Cash and cash equivalents                            $2,170,883      $1,729,305
Accounts receivable, net                                259,130         350,017
Net investment in direct finance leases                 392,041         686,540
Leased equipment, net                                 1,858,205       3,929,530
                                                     ----------      ----------

                  Total assets                       $4,680,259      $6,695,392
                                                     ==========      ==========



                        LIABILITIES AND PARTNERS' CAPITAL

LIABILITIES:
  Accounts payable and accrued liabilities           $   241,072    $   234,234
  Payable to affiliates                                    8,006         10,470
  Rents and sale proceeds received in advance             36,155         66,876
  Distributions payable to partners                    1,355,629        853,980
                                                     -----------    -----------

                  Total liabilities                    1,640,862      1,165,560
                                                     -----------    -----------

PARTNERS' CAPITAL (DEFICIT):
  General partners                                      (578,739)      (578,739)
  Limited partners:
    Class A                                            1,557,057      3,945,652
    Class B                                            2,061,079      2,162,919
                                                     -----------    -----------

  Total partners' capital                              3,039,397      5,529,832
                                                     -----------    -----------

  Total liabilities and partners' capital            $ 4,680,259    $ 6,695,392
                                                     ===========    ===========



   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,
                                                 -------------------------------   ----------------------------
                                                     1996               1995          1996             1995
                                                 ------------      -------------   ----------       -----------
<S>                                              <C>               <C>             <C>               <C>
REVENUE:
   Operating lease rentals                       $  379,425        $  881,447      $1,259,049        $2,399,117
   Direct financing lease income                     29,193            37,095         112,565           107,495
   Equipment sales margin                           211,354            77,416         478,455           165,077
   Interest income                                   18,483            36,039          96,821           106,094
   Other income                                           -           355,889               -           355,889
                                                 ----------        ----------      ----------        ----------
         Total revenue                              638,455         1,387,886       1,946,890         3,133,672
                                                 ----------        ----------      ----------        ----------

EXPENSES:
   Depreciation and amortization                    272,832           545,539         929,493         1,670,314
   Provision for losses                                   -                 -               -                 -
   Management fees paid to general partners          18,832            43,253          66,115           105,343
   Direct services from general partners             14,281            13,899          50,433            49,198
   General and administrative                        32,047            29,747         206,777           111,404
                                                 ----------        ----------      ----------        ----------
         Total expenses                             337,992           632,438       1,252,818         1,936,259
                                                 ----------        ----------      ----------        ----------

NET INCOME                                       $  300,463        $  755,448      $  694,072        $1,197,413
                                                 ==========        ==========      ==========        ==========

NET INCOME ALLOCATED:
   To the general partners                       $   47,447        $   63,767      $  111,458        $  135,355
   To the Class A limited partners                  235,710           644,375         542,766           989,421
   To the Class B limited partner                    17,306            47,306          39,848            72,637
                                                 ----------        ----------      ----------        ----------
                                                 $  300,463        $  755,448      $  694,072        $1,197,413
                                                 ==========        ==========      ==========        ==========

   Net income per weighted average Class A
        limited partner unit outstanding         $     2.25        $     6.15      $     5.18        $     9.44
                                                 ==========        ==========      ==========        ==========

   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, September 30,
                                                          1996         1995
                                                     ------------- -------------

NET CASH PROVIDED BY OPERATING ACTIVITIES            $ 3,124,438    $ 3,750,595
                                                     -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Distributions to partners                          (2,682,860)    (3,946,798)
                                                     -----------    -----------
Net cash used in financing activities                 (2,682,860)    (3,946,798)
                                                     -----------    -----------

NET INCREASE (DECREASE) IN CASH AND CASH
  EQUIVALENTS                                            441,578       (196,203)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD       1,729,305      2,923,146
                                                     -----------    -----------

CASH AND CASH EQUIVALENTS AT END OF PERIOD           $ 2,170,883    $ 2,726,943
                                                     ===========    ===========





















   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, 1995 has been derived from the audited  financial  statements
      included in the  Partnership's  1995 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,  1995,  (the
      "1995 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 of                         Condensed Statements of
                                Income for the three months    The effect on     Income for the nine months       The effect on
                                    ended September 30,        net income of        ended September 30,           net income of
                               ----------------------------   changes between   ----------------------------     changes between
                                   1996           1995            periods           1996           1995              periods
                               ------------   -------------  ----------------   ------------    ------------     ---------------
<S>                           <C>               <C>             <C>             <C>             <C>               <C>
Leasing margin                $   135,786       $ 373,003       $ (237,217)     $  442,121      $   836,298       $ (394,177)
Equipment sales margin            211,354          77,416          133,938         478,455          165,077          313,378
Interest income                    18,483          36,039          (17,556)         96,821          106,094           (9,273)
Other income                            -         355,889         (355,889)              -          355,889         (355,889)
Management fees paid to
   general partners               (18,832)        (43,253)          24,421         (66,115)        (105,343)          39,228
Direct services from general
    partners                      (14,281)        (13,899)            (382)        (50,433)         (49,198)          (1,235)
General and administrative        (32,047)        (29,747)          (2,300)       (206,777)        (111,404)         (95,373)
Provision for losses                    -               -                -               -                -                -
                              -----------       ---------       ----------      ----------      -----------       ----------

Net income                    $   300,463       $ 755,448       $ (454,985)     $  694,072      $ 1,197,413       $ (503,341)
                              ===========       =========       ==========      ==========      ===========       ==========

</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,
                                ----------------------------    ----------------------------
                                    1996           1995             1996           1995
                                ------------   -------------    ------------    ------------

<S>                             <C>             <C>             <C>             <C>
Operating lease rentals         $   379,425     $   881,447     $ 1,259,049     $ 2,399,117
Direct financing lease income        29,193          37,095         112,565         107,495
Depreciation and amortization      (272,832)       (545,539)       (929,493)     (1,670,314)
                                -----------     -----------     -----------     -----------

   Leasing margin               $   135,786     $   373,003     $   442,121     $   836,298
                                ===========     ===========     ===========     ===========

   Leasing margin ratio                  33%             41%             32%             33%
                                ===========     ===========     ===========     ===========
</TABLE>


                                        7

<PAGE>


NORTHSTAR INCOME FUND-I, L.P.

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


LEASING MARGIN, continued

Leasing margin decreased,  and is expected to decrease  further,  primarily as a
result of portfolio run-off.  Leasing margin ratio decreased  primarily due to a
decline in remarketing revenue from month-to-month rentals.  Remarketing revenue
(including  month-to-month  rentals)  will  normally vary as initial lease terms
expire. If the variance is large enough, it can disproportionately influence the
leasing margin ratio.

The ultimate rate of return on leases depends,  in part, on the general level of
interest  rates at the time the leases  are  originated.  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 during this
period  reflect  this  low  interest  rate  environment.  This  will  result  in
corresponding reductions in the ultimate overall yields to partners.


EQUIPMENT SALES MARGIN

Equipment sales margin consists of the following:

<TABLE>
<CAPTION>

                                      Three months ended             Nine months ended
                                        September 30,                   September 30,
                                ----------------------------    ---------------------------
                                    1996           1995             1996           1995
                                ------------   -------------    ------------    -----------

<S>                             <C>             <C>             <C>             <C>
Equipment sales revenue         $   754,575     $   377,803     $ 1,468,267     $  533,558
Cost of equipment sales            (543,221)       (300,387)       (989,812)      (368,481)
                                -----------     -----------     -----------     ----------

   Equipment sales margin       $   211,354    $     77,416    $    478,455     $  165,077
                                ===========    ============    ============     ==========

</TABLE>

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.


OTHER INCOME

Other income  realized  during third quarter 1995 consisted of the collection of
previously charged-off accounts receivable from Financial News Network.



                                        8

<PAGE>


                          NORTHSTAR INCOME FUND-I, L.P.

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


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 provisions  for losses were recorded  during either the three and nine months
ended  September  30,  1996 or the  corresponding  periods  in 1995  because  no
other-than-temporary  losses in the value of equipment  were  identified  in the
quarterly assessments of the Partnership's assets.

EXPENSES

General  and  administrative  expenses  increased  primarily  due to (i) $67,194
reimbursed  to the CAI  general  partner  during  the  second  quarter  1996 for
insurance  costs  related  to prior  years and (ii)  shipping  costs  related to
certain equipment returned to the Partnership.

Management fees decreased primarily as a result of portfolio run-off.

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,  1996,  the  Partnership  declared
distributions  to the Partners of  $3,184,508  (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.

                                        9

<PAGE>


                          NORTHSTAR INCOME FUND-I, L.P.

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


Liquidity and Capital Resources, continued
-------------------------------

The general  partners  currently  anticipate that the Partnership  will generate
cash flow from operations and equipment  sales during 1996 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 as shown in the
balance  sheet.  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 1996  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
during the remainder of 1996.  Because of portfolio  runoff,  it is  anticipated
that cash from operations in 1996 will decrease relative to cash from operations
in 1995.  Therefore,  the  Partnership is not expected to have  sufficient  cash
available  in 1996 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).
Distributions during the liquidation period will be based upon cash availability
and will vary. The General Partner's current intent is to sell the Partnership's
equipment and liquidate the  Partnership no later than December 31, 1997. As the
Partnership's  equipment is sold,  proceeds from such sales will be  distributed
also.

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 (i.e., 14%). 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  of less than 25% 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.

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, 1996.


                                       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 1, 1996         By:  /s/John E. Christensen
                                     ----------------------
                                     John E. Christensen
                                     Senior Vice President,
                                     Chief Administrative Officer and Director


                                       12