FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549



     [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

For the quarter ended   September 30, 1998


Commission file number    33-18756


                          ASSISTED HOUSING FUND L.P. I
             (Exact name of registrant as specified in its charter)

      Washington                                                 91-1391150
(State of organization)                                         (IRS Employer
                                                            Identification No.)




                1301 Fifth Avenue,  Suite 2200,  Seattle,  WA 98101  (Address of
              principal executive offices) (Zip code)


       Registrant's telephone number, including area code: (206) 461-4782


Securities registered pursuant to Section 12(b) of the Act:  None

Securities registered pursuant to Section 12(g) of the Act:



                      Units of Limited Partnership Interest
                                (Title of class)

     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



            The Exhibit Index appears at page 14. There are 15 pages.


<PAGE>
                                   Part I. Financial Information

Item 1.  Financial Statements
<TABLE>

                           ASSISTED HOUSING FUND L.P. I AND SUBSIDIARIES
                                          BALANCE SHEETS
<CAPTION>
                                             Sep 30,             December 31,
                                             1998                1997
                                             (Unaudited)
                                             -----------         ------------


                                     ASSETS
<S>                                          <C>                 <C>

Rental property and equipment, at cost:
   Buildings and equipment                   $15,726,936         $15,726,936
   Less accumulated depreciation              (5,310,157)         (4,905,719)
                                            -------------       -------------
                                              10,416,779          10,821,217
   Land                                          723,111             723,111
                                           -------------       -------------
                                              11,139,890          11,544,328

Cash and cash equivelents:
   Rental operation                              162,987             150,694
   Partnership operation                          13,262               8,195
                                                 -------             -------
                                                 176,249             158,889

Restricted deposits:
   Tenant trust - security deposits              107,060             103,562
   Reserve accounts                              669,248             644,775
                                             -----------          ----------
                                                 776,308             748,337

Other assets:
   Accounts receivable                            59,073              37,713
   Prepaid expenses                               12,022              25,609
   Organization and start-up costs                     -                  -
                                              ----------         -----------
                                                  71,095              63,322
                                             -----------         -----------
                                             $12,163,542         $12,514,876
                                           =============       =============
</TABLE>


                                       Continued on page 2A




See notes to financial statements        2
<PAGE>
<TABLE>
<CAPTION>


                           ASSISTED HOUSING FUND L.P. I AND SUBSIDIARIES
                                   BALANCE SHEETS - (CONTINUED)
<S>                                        <C>                  <C>

                                           Sept 30,           December 31,
                                           1998                   1997
                                           (Unaudited)
                                           -------------      -------------

                            LIABILITIES AND PARTNERS' EQUITY (DEFICIT)

Liabilities:
   Mortgage notes payable                  $12,352,718          $12,375,470
   LID assessment payable                       54,855               54,855
   Accounts payable                            247,023              215,951
   Due to affiliate                            584,311              622,375
   Accrued liabilities                         155,024              135,852
   Security deposits payable                   110,248              106,172
                                         -------------        -------------
                                            13,504,179           13,510,675

Minority interests in partnerships             500,614              519,852

Partners' equity (deficit):
  Limited partners                          (1,791,631)          (1,469,287)
  General partner                              (49,620)             (46,364)
                                          -------------        -------------
                                            (1,841,251)          (1,515,651)
                                          -------------        -------------
                                           $12,163,542          $12,514,876
                                         =============         =============
</TABLE>

See notes to Financial Statements    2A
<PAGE>


<TABLE>
<CAPTION>


                            ASSISTED HOUSING FUND L.P. I AND SUBSIDIARIES

                               STATEMENT OF PARTNERS' EQUITY (DEFICIT)




<S>                                <C>            <C>            <C>
                                   Limited        General
                                   Partners       Partner        Total
                                   -----------    ------------   ------------
Balance - December 31, 1989        3,127,029             63      3,127,092

Net income (loss) for 1990          (491,129)        (4,961)      (496,090)
                                  -----------    -----------   ------------
Balance - December 31, 1990        2,635,900         (4,898)     2,631,002

Net income (loss) for 1991          (586,906)        (5,928)      (592,834)
                                 ------------   ------------   ------------
Balance - December 31, 1991        2,048,994        (10,826)     2,038,168

Net income (loss) for 1992          (559,355)        (5,650)      (565,005)
                                 ------------   ------------   ------------
Balance - December 31, 1992        1,489,639        (16,476)     1,473,163

Net income (loss) for 1993          (612,230)        (6,184)      (618,414)
                                 ------------   ------------   ------------
Balance - December 31, 1993          877,409        (22,660)       854,749

Net income (loss) for 1994          (594,986)        (6,010)      (600,996)
                                 ------------   ------------   ------------
Balance - December 31, 1994          282,423        (28,670)       253,753

Net income (loss) for 1995          (609,192)        (6,153)      (615,345)
                                 ------------   ------------   ------------
Balance - December 31, 1995         (326,768)       (34,824)      (361,592)

Net income (loss) 1996              (612,521)        (6,187)      (618,708)
                                 ------------   ------------   ------------
Balance - December 31, 1996         (939,289)       (41,011)      (980,300)

Net income (loss) for 1997          (529,997)       (5,354)       (535,351)
                                 ------------   ------------   ------------
Balance - December 31, 1997       (1,469,287)      (46,364)     (1,515,651)

Net income (loss) for September 30,
     1998 (Unaudited)              (322,344)        (3,256)       (325,600)
                                 -----------     ----------    ------------
Balance - September 30, 1998
     (Unaudited)                 ($1,791,631)     ($49,620)    ($1,841,251)
                                 ============     =========    ============
</TABLE>


See notes to Financial Statements                 3

<PAGE>

<TABLE>
<CAPTION>

                                      ASSISTED HOUSING FUND L.P. I AND SUBSIDIARIES

                                                 STATEMENTS OF OPERATIONS
<S>                                <C>            <C>            <C>            <C>

                                   Quarter        Nine Months    Quarter        Nine Months
                                   Ended          Ended          Ended          Ended
                                   Sept 30,       Sept 30,       Sept 30,       Sept 30,
                                   1998           1998           1997           1997
                                   (Unaudited)    (Unaudited)    (Unaudited)    (Unaudited)
                                   -----------    -----------    -----------    -----------
Revenue:
   Rental                          $374,065       $1,119,942     $352,974       $1,061,038
   Miscellaneous                     14,183           40,386       18,768           55,953
                                   --------       ----------     --------       ----------
                                    388,248        1,160,328      371,742        1,116,991

Expenses:
   Operating & maintenance           72,554          194,748       51,926          147,600
   Utilities                         57,105          184,654       55,314          190,085
   General & administrative          81,362          265,775       84,434          256,986
   Taxes                             83,652          196,340       67,624          157,315
   Insurance                         13,995           28,145       15,518           34,168
   Interest on mortgage notes        66,802          215,521       73,784          219,517
   Depreciation                     117,044          404,435      180,629          470,005
   Miscellaneous                      3,095            3,955        1,763            7,540
                                  ----------    ------------     --------       ----------
                                    495,612        1,493,573      530,992        1,483,216

                                   (107,364)        (333,245)    (159,250)        (366,225)

Other income (expenses):
   Interest earned on escrow
    accounts & cash reserves             23             78             71              179
   Minority Interest                  6,345         19,154          6,877           19,505
   General & administrative          (2,411)       (11,587)        (1,927)         (30,693)
   Partnership management
    fees                                  0              0        (18,629)         (55,888)
   Amortization of organi-
    zation & start-up costs               0              0              0                0
                                 -----------      ---------      --------         --------
                                      3,957          7,645        (13,608)         (66,897)
                                 -----------      ---------      --------         --------
        Net income (loss)          (103,407)      (325,600)      (172,858)        (433,122)
                                 ===========    ===========      ========         ========

Net income (loss) per unit of
 limited partnership interest          (146)          (459)          (243)            (610)
                                 ===========    ===========      =========        =========

</TABLE>

See notes to Financial Statements     4

<PAGE>




<TABLE>
<CAPTION>
                  ASSISTED HOUSING FUND L.P. I AND SUBSIDIARIES

                            STATEMENTS OF CASH FLOWS
<S>                                               <C>              <C>

                                                  Nine Months      Nine Months
                                                  Ended            Ended
                                                  September 30,    September 30,
                                                  1998             1997
                                                  (Unaudited)      (Unaudited)
                                                 ------------     ----------
Cash flows from operating activities:
  Net Income (loss)                                 (325,600)        (433,122)
  Adjustments to reconcile net (loss) to net
      cash provided by operating activities:
    Depreciation                                     404,438          470,005
    Amortization of organization and
        start-up costs                                     0                0

    Minority interest in operations                  (19,154)         (19,504)
    Decrease (increase) in:
      Accounts receivable                            (21,360)         (23,287)
      Prepaid expenses                                13,587           (1,204)

    Increase (decrease) in:
      Accounts payable                                31,072            3,655
      Accrued liabilities                             19,172           66,860
      Due to affiliates                              (38,064)          54,226
                                                  -----------       ----------
  Net cash provided by operating activities           64,091          117,629

Cash flows from investing activities:
  Acquisition and construction of rental property          0           (8,968)
  Decrease (increase) in restricted deposits         (24,473)         (61,323)
  Security deposits payable                              578             (132)
                                                 ------------       ----------
  Net cash provided (used) in investing activities   (23,895)         (70,423)

Financing activities:
  Minority partners' capital contributions               (84)            (118)
  Mortgage principal payments                        (22,752)         (16,166)
                                                 ------------       ----------
  Net cash provided by financing activities          (22,836)         (16,284)
                                                 ------------       ----------
Net increase (decrease) in cash and cash equivalents  17,360           30,922
Cash and cash equivalents - beginning of year        158,889          146,318
                                                ------------        ----------
Cash and cash equivalents - end of period           $176,249         $177,240
                                                ============        ==========
Supplemental disclosure of cash flow information:
  Cash paid during the year for interest
      (net of amounts capitalized)                  $215,521         $219,517
                                                ============       ==========

</TABLE>

See notes to Financial Statements                     5

<PAGE>

                  ASSISTED HOUSING FUND L.P. I AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    For the Quarter Ended September 30, 1998

1.   General

Assisted Housing Fund L.P. I (the  Partnership) is a limited  partnership  which
was  organized  November  2, 1987 under the laws of the state of  Washington  to
acquire  limited  partnership  interests  in other  partnerships  (the  Property
Partnerships), each of which has been organized to develop or purchase a low- or
moderate-income  apartment complex. The Partnership's general partner is Murphey
Favre Properties,  Inc. (MFP), a wholly-owned subsidiary of WM Financial,  Inc.,
which is a wholly-owned subsidiary of Washington Mutual Bank (WMB).

The Partnership  completed its public offering of limited partnership  interests
and  commenced   operations  on  April  14,  1989.   Prior  to  that  date,  the
Partnership's  activities  consisted  solely of purchasing  limited  partnership
interests in Property  Partnerships which were in the development process. As of
December 31, 1997,  limited  partners held the 703 units of limited  partnership
interests outstanding.

The   Partnership   has  invested  as  a  limited  partner  in  eleven  Property
Partnerships.  The  developer of each  apartment  complex  serves as the general
partner  (DGP)  of  the  respective  Property   Partnership.   Additionally,   a
wholly-owned  subsidiary of MFP,  Murphey Favre Housing  Managers  (MFHM),  is a
special  limited  partner in each  Property  Partnership.  MFHM has the right to
oversee the  management of each Property  Partnership  and has certain  approval
rights over the actions of each DGP. The Partnership Agreement for each Property
Partnership sets forth the allocations of profits,  losses and  distributions of
net  cash  flow  from  operations  or from  sale or  refinancing  of the  rental
property.

The properties owned by the Property  Partnerships were financed and constructed
under  Section 515 of the  National  Housing  Act, as amended  (administered  by
Farmer's Home Administration,  now known as Rural Housing Services (RHS)). Under
this  program,   the  Property   Partnerships   provide   housing  to  low-  and
moderate-income  families.  Lower rental charges to tenants are recovered by the
Property  Partnerships  through an interest  reduction program which reduces the
effective  interest  rate over the  lives of the  mortgages  to 1 percent  and a
rental  assistance  program  whereby RHS pays the  Property  Partnerships  for a
portion of qualified tenant rents.

Construction of the rental properties began in June, 1988 and all were completed
by January 31, 1991. Rental operations began in April, 1989.
<PAGE>
2.   Summary of Significant Accounting Policies

a. The Partnership's  financial  statements are reported on a consolidated basis
with the Property  Partnerships in which it has invested because the Partnership
(as a limited  partner)  holds  approximately  99% profit and loss interests and
approximately  55% of the equity  interests  in each  Property  Partnership  and
because of the  aforementioned  rights of MFHM to restrict the authority of each
DGP.

The consolidated  financial statements,  include the financial statements of the
Partnership  and  eleven  Property  Partnerships:  Fairview  Apartments  Company
Limited  Partnership  (Fairview);  Ionia Limited  Dividend  Housing  Association
Limited  Partnership  (Ionia);  Logan  Apartments  Company  Limited  Partnership
(Logan);   Rolling  Brook  II  Limited  Dividend  Housing   Association  Limited
Partnership (Rolling Brook);  Wexford Manor Limited Dividend Housing Association
Limited  Partnership   (Wexford);   Blue  Heron  Apartment   Associates  Limited
Partnership (Blue Heron);  Glenwood  Apartment  Associates  Limited  Partnership
(Glenwood);  Pacific Place Apartment  Associates  Limited  Partnership  (Pacific
Place);  Cove Limited Dividend Housing  Association  Limited Partnership (Cove);
Washington  Street Limited  Dividend  Housing  Association  Limited  Partnership
(Washington); and, Fayette Hills Limited Partnership (Fayette).

All material  interpartnership  transactions  and balances have been eliminated.
The minority  partners'  interests  in the losses of the Property  Partnerships,
which  aggregate  $42,270 and $39,193 as of September  30, 1998 and December 31,
1997, respectively, are included in other income.

b. The accrual  method of  accounting is used for both  financial  statement and
income tax purposes.

c.  Rental  property  and  equipment  is stated at cost  including  interest  of
$387,000, capitalized during construction.

The partnership  agreements for the Property  Partnerships  require the DGP's to
fund cost overruns on the development of the rental properties.  As of September
30, 1998  and  December 31,  1997, $589,462  of such  cost  overruns  have  been
recorded as capital  contributions from DGP's and have been included in the cost
basis  of  the  rental  property.  All  depreciation  related  thereto  has been
specially allocated to the respective DGP's.

d.  Depreciation  is  computed  for  financial   statement  purposes  using  the
straight-line  method over the estimated  useful lives of the related  assets as
follows:

     Building shell and components.................... 27.5 years
     Land improvements.................................. 15 years
     Appliances......................................... 10 years
     Carpets and draperies.............................. 10 years

Depreciation    is    computed    for    income   tax    purposes    using   the
modified-accelerated-cost-recovery-system (MACRS).
<PAGE>
e. No income tax provision has been included in the financial  Statements  since
income or loss of a  Partnership  is required  to be reported by the  respective
partners on their income tax returns.

f. For  purposes of the  statement  of cash flows,  all  investment  instruments
purchased  with a maturity  of three  months or less are  considered  to be cash
equivalents.

g. Costs  aggregating  $71,921  incurred in  connection  with  organization  and
start-up of the partnerships  have been capitalized and are being amortized on a
straight-line basis over a five-year period.

h. Certain amounts as previously presented in the 1997 financial statements have
been reclassified to conform with the 1998 presentation.

i. The unaudited interim financial statements include all adjustments which are,
in the  opinion of  management,  necessary  to fairly  state the results for the
interim  periods  presented.  These  adjustments  are all of a normal  recurring
nature.

3.   Transactions with Affiliates

In connection with the offering of units of limited  partnership  interest,  the
acquisition  and  development of rental  property and the management of both the
rental property and the Partnership,  the Partnership and Property  Partnerships
have paid or accrued the following amounts to certain affiliates:

                                                  Quarter Ended     Year Ended
                                                  Sept 30, 1998    Dec 31, 1997

Murphey Favre Properties, Inc.
         Reimbursements, at cost                   $ 1,875           $  7,500

Developer general partners and affiliates
         Property management fees                   29,826            121,887

The Partnership maintains deposits in certain of WMB's interest-bearing accounts
which aggregated $13,262 and $8,195 at September 30, 1998 and December 31, 1997,
respectively.  Interest earned on such deposits  totaled $23 and $253 during the
quarter ended September 30, 1998 and year ended December 31, 1997, respectively.
Terms of the RHS Loan  Agreements  require  each  DGP to  provide  interest-free
advances of  stipulated  amounts as initial  operating  capital to the  Property
Partnerships.  Due to affiliates includes $152,107 and $152,107 of such advances
at September 30, 1998 and December 31, 1997, respectively,  which will be repaid
in two to five years upon  approval of RHS, or from the proceeds of future sales
of the respective  Properties.  The balance includes DGP advances of $35,468 for
land improvements and $14,209 to fund operating deficits.  The remaining balance
due to affiliates includes program management fees and reimbursements payable to
MFP.

 <PAGE>
Under the terms of  management  services
agreements,  affiliates of the DGP's provide management  services for the rental
properties and receive  compensation for such services in amounts  approximating
8% of gross rental revenue.

4.   Cash Held in Escrow Accounts

The partnership  agreements for the Property Partnerships require that specified
amounts be deposited by the  Partnership  into escrow  accounts.  Such funds are
released from escrow upon completion of certain  requirements in the development
of the  rental  properties  and paid to the  DGP's to  reduce  development  fees
payable.

5.   Cash in Reserve Accounts

The Loan  Agreements  between  the  Property  Partnerships  and RHS  require the
Property  Partnerships  to  deposit  into  separate  reserve  accounts  (savings
accounts)  $126,889 annually until the reserve accounts reach  $1,268,211.  With
the prior  approval of RHS,  these funds can be used for: (1) loan debt service,
if operating funds cannot meet these  obligations:  (2) repairs and replacements
caused by catastrophe or long-range depreciation; (3) improvements or extensions
to the buildings;  and, (4) any other reason RHS  determines  will promote or be
beneficial to the purpose of the loans.

6.   Mortgage Notes Payable

The  mortgage  notes are  payable to RHS in monthly  installments  stated in the
table below. In accordance with  provisions of Interest Credit  Agreements,  RHS
provides  monthly interest credits which reduce the interest rates stated in the
mortgage notes to effective  rates of 1 percent over the lives of the mortgages.
Amortization  of principal is based on the stated rates of 8.75% to 10.75% under
RHS's Predetermined  Amortization  Schedule System (PASS).  Substantially all of
the rental property and equipment is pledged as collateral on the mortgages.  No
partner is personally liable on the mortgage notes.

Amendments  enacted in 1979 and 1987 to Section 515 of the National  Housing Act
contain restrictive  provisions for prepayment of Section 515 loans. In summary,
RHS may refuse offers to prepay the mortgage notes and require that the projects
be used for the purpose of housing those  eligible,  as provided in Section 515,
for a period of 20 years. 
<PAGE>

The loan  balances,  net  monthly  payments,  and due  dates  for each  Property
Partnership are as follows:

                  Net Monthly         Loan Balance
                  Payment             Sept 30, 1998        Due Date

Fairview          $ 2,744             $ 1,277,566         April, 2040
Ionia               1,532                 713,691         October, 2040
Logan               2,142                 998,202         March, 2041
Rolling Brook       1,614                 750,149         June, 2040
Wexford             1,567                 728,268         April, 2040
Blue Heron          3,173               1,474,797         June, 2040
Glenwood            3,111               1,441,712         May, 2039
Pacific Place       1,632                 759,795         June, 2039
Cove                3,092               1,436,588         April, 2040
Washington          1,545                 717,771         May, 2040
Fayette             4,398               2,054,179         December, 2039
Total             $26,550             $12,352,718


Principal Payments on the mortgage notes for the next 5 years are as follows:

                  Year                            Amounts
                  1998                              4,092
                  1999                             29,361
                  2000                             32,115
                  2001                             35,113
                  2002                             38,422
                  2003 and later years         12,213,615
                                              $12,352,718


7.   Limited Distributions to Partner

Limited  distributions  payable from funds provided by rental  operations of the
Property  Partnerships  are limited by the Loan  Agreements to eight percent per
year of the Property  Partnerships'  initial  equity,  as determined by the RHS.
Current RHS regulations limit the distribution payments in any year to a maximum
of the annual distribution for the current year and the prior year. Distribution
payments  are  also  subject  to  approval  by  RHS.  Prerequisites  to  limited
distributions  being paid by each Property  Partnership  are: (a) funding of the
reserve account must be current and (b) the mortgage note must be current.
<PAGE>
8.   Contingencies

In  September,  1995 the city of  Winslow  issued a L.I.D.  assessment  for Blue
Heron's share of street and utility  improvements in the amount of $68,569.  The
assessment is payable in 10 equal annual installments  together with interest at
the rate of 6.25  percent.  At December 31,  1997,  the fair value of the L.I.D.
assessment approximates the amount recorded in the financial statements.

Principal payments on the assessment for the next 5 years are as follows:

                  Year                             Amounts
                  1998                               6,857
                  1999                               6,857
                  2000                               6,857
                  2001                               6,857
                  2002                               6,857
                  2003 and later years              20,570
                                                   $54,855

9.   Guarantees

Each of the  DGP's  has  made  certain  guarantees  to the  respective  Property
Partnership  which  include  the  following  : (i) the rental  property  will be
completed in accordance  with the approved plans and  specifications;  (ii) they
will fund construction cost overruns; (iii) they will fund operating deficits of

the  rental   property   through   December  31,  1991  or  1992,  by  providing
interest-free loans to the Property Partnership amounting to between $30,000 and
$50,000;  and, (iv) they will compensate the Partnership in the event the actual
low-income  housing tax credit is less than 85% to 90% of the available  credit.
Advances made  pursuant to this  guarantee  shall be repayable  from proceeds of
future sale or dissolution.

Item 2.  Management's Discussion and Analysis

Assisted  Housing  Fund  L.P. I  (the  Partnership)  is  a  limited  partnership
organized under the laws of the state of Washington.

The  Partnership  has  invested  as a limited  partner in eleven  other  limited
partnerships (Property Partnerships) which develop, own, and operate residential
apartment  complexes which benefit from some form of federal assistance programs
and which qualify for low-income  housing credits (Tax Credits)  pursuant to the
Internal Revenue Code by the Tax Reform Act of 1986.

The Partnership's  general partner is Murphey Favre  Properties,  Inc., (MFP), a
wholly-owned subsidiary of WM Financial, Inc. which is a wholly-owned subsidiary
of Washington Mutual Bank (WMB).

The Partnership completed its public offering of units of limited partnership on
April 14, 1989 with proceeds totaling  $3,511,000 through the sale of 703 units.
There are 331 limited partners and one General Partner in the Partnership.

Each Property  Partnership has, as its general partner,  one or more individuals
or an entity not affiliated  with the Partnership or MFP. In accordance with the
Partnership Agreements under which such entities are organized,  the Partnership
depends on the DGP's for the management of each Property Partnership.

During the  quarter,  management's  emphasis was on the  continued  operation of
eleven  properties placed in service.  The properties  maintained high levels of
occupancy.  At  September  30, 1998,  three  properties  were 100% occupied, six
properties were between 90% and 98% occupied,  and  two  properties were between
85% and 89% occupied. 
<PAGE> 
In 1997, one property located in the state of Michigan, had an
average occupancy of 80% which reduced cash flow.  Property  Management deferred
property  taxes which were  delinquent  at December 31,  1997.  During the first
quarter,  Property Management requested RHS approval for use of reserve funds to
pay the delinquent taxes. This property will continue to be closely monitored by
management.

Results of Operations

On a consolidated basis, net income before depreciation and amortization for the
third quarter 1998 was $12,114 compared  with net income before depreciation and
amortization  in  the third quarter of 1997 of $21,379.  Rental revenues for the
third  quarter  of 1998 were up 5.9% from the third quarter 1997 while the third
quarter 1998  expenses  including  depreciation  were down 7.1%  from the second
quarter 1997.

Liquidity and Capital Resources

The Partnership completed its public offering of units of limited partnership on
April 14, 1989, with proceeds totaling $3,511,000 from 339 limited partners. The
Partnership   invested  $2,542,000  of  offering  proceeds  in  eleven  Property
Partnerships.

Offering proceeds equal to $175,750 were reserved by the Partnership to fund its
operating  expenses.  As of  September  30,  1998,  the  cash  reserves  of  the
Partnership  totaled  $13,262.  It is expected that the Partnership will draw on
the reserves in future quarters to fund accounting and other operating  expenses
of the Partnership.  Nominal cash distributions  from the Property  Partnerships
will  supplement the cash reserves.  It is expected that all cash  distributions
received  from the Property  Partnerships  will be used to defray the  operating
expenses of the Partnership and thus it is not likely any  distribution  will be
made to the limited partners.

The  Partnership  is not  required to fund  additional  amounts to the  Property
Partnerships based on each Property Partnership  agreement.  Additionally,  each
Property  Partnership  is operated  as an  individual  project,  and without any
contractual  arrangements of any kind between the Property Partnerships.  In the
third  quarter  1998, three  properties generated  deficit  cash  flow and eight
generated  positive cash flow.  The deficits were funded by cash reserves of the
Property Partnerships.

Included in cash deposits on the  consolidated  balance  sheets were $13,262 and
$8,195,  held as deposits by the Partnership in Washington  Mutual Bank accounts
as of September 30, 1998 and December 31, 1997, respectively.  Washington Mutual
Bank is affiliated with MFP, the general partner of the Partnership.

There are no additional acquisitions nor any dispositions planned.


<PAGE>



                   PART II. OTHER INFORMATION

Except  for the  disclosures  set  forth  below,  all  items  under  Part II are
inapplicable or have a negative response and are therefore omitted.

Item 6.  Exhibits and Reports on Form 10-Q

     a.) Listing of Exhibits.

Exhibit                                     Incorporated by
No.                                         Reference From

3        Certificate of                     Exhibit C to Form S-11
         Limited Partnership                Registration Statement
                                            No. 91.1391150

10       Material Contracts                 Exhibit 10 to Form 10-K
                                            filed for year ended
                                            December 31, 1989

13       Annual Report to                   Exhibit 13 to Form 10-K
         Security Holders                   filed for year ended
                                            December 31, 1995


<PAGE>





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

Dated this 16th day of November, 1998.



               Assisted Housing Fund L.P. I
               By: Murphey Favre Properties, Inc.
               Its Managing General Partner



               Herbert F. Fox, Vice President /s/
               Herbert F. Fox, Vice President
               and Principal Financial Officer