SECURITIES AND EXCHANGE COMMISSION
                   WASHINGTON, D.C. 20549


                          FORM 10-Q


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



              For Quarter Ended March 31, 2003
              Commission File Number 33-19316


       Qualified Housing Partners Limited Partnership


   (Exact name of registrant as specified in its charter)

        North Carolina                      56-1589469
 (State or other jurisdiction            (I.R.S. Employer
incorporation or organization)        Identification Number)

                          Suite 220
                     4700 Homewood Court
                Raleigh, North Carolina 27609
     (Address of principal executive offices)(Zip Code)

  Registrant's telephone number, including area code:
                        (919)787-4243


Indicate by a 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 such shorter period the registrant has
been required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days.  Yes  X               No

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

Indicate by check mark whether the registrant is an accelerated filer (as
defined by Rule 12b-2 of the Act.).  Yes                  No  X

As of December 31, 2002, there were 8,673 units of limited partnership
interests in registrant outstanding, $1,000 per unit, and the aggregate
value of such units was $8,673,000.  Of such units, 8,653 having an
aggregate value of $8,653,000, were held by limited partners deemed
by the registrant to be non-affiliates.



                           PART I

                    FINANCIAL INFORMATION
       QUALIFIED HOUSING PARTNERS LIMITED PARTNERSHIP





Item 1:  Financial Statements

     - Unaudited Consolidated Balance Sheets

     - Unaudited Consolidated Statements of Income and
       Expenses

     - Unaudited Consolidated Statements of Cash Flows

     - Unaudited Cash Available for Distribution and
       Reserves

     - Unaudited Notes to Financial Statements




Item 2:  Management's Discussion

     - Liquidity and Capital Resources

     - Results of Operations

     - Tax Credits




Item 4:  Controls and Procedures

Within the 90 days prior to the date of this report, the
Partnership carried out an evaluation under the supervision
and with the participation of the Partnership's management,
including the Partnership's Chief Executive Officer and Chief
Financial Officer, of the effectiveness of the design and
operation of the Partnership's disclosure controls and procedures
pursuant to Securities Exchange Act Rule 13a-14. Based upon that
evaluation, the Chief Executive Officer and Chief Financial
Officer concluded that the Partnership's disclosure controls
and procedures are effective in timely alerting them to material
information relating to the Partnership required to be included
in the Partnership's periodic SEC Filings. There were no
significant changes in the Partnership's internal controls or
in other factors that could significantly affect these controls
subsequent to the date of their evaluation.



QUALIFIED HOUSING PARTNERS LIMITED PARTNERSHIP

CONSOLIDATED BALANCE SHEETS
March 31, 2003 and December 31, 2002

                                             03/31/03      12/31/02
                                            (Unaudited)
ASSETS
Rental Properties
  Land                                       $1,326,402     $1,326,402
  Buildings                                  34,682,855     34,654,470
  Furniture & Fixtures                        2,152,319      2,147,070

                                             38,161,576     38,127,942

Accumulated Depreciation                    (12,811,360)   (12,590,134)

                                             25,350,216     25,537,808

Cash                                            212,667        211,526
Other Assets                                  2,134,807      2,206,104

TOTAL ASSETS                                $27,697,690    $27,955,438



LIABILITIES AND PARTNERS' CAPITAL

Liabilities Applicable to Rental
     Properties                             $24,456,892    $24,578,133
Other Liabilities                             1,230,480      1,260,483

Total Liabilities                            25,687,372     25,838,616

Minority Interests in Subsidiary
     Operating Partnerships                   1,700,771      1,701,471

Partners' Capital                               309,547        415,351

TOTAL LIABILITIES AND PARTNERS'
     CAPITAL                                $27,697,690    $27,955,438



See accompanying notes.












CONSOLIDATED STATEMENTS OF INCOME AND EXPENSES
Three Months Ended March 31, 2003 and 2002
(Unaudited)

                                            01/01/03-     01/01/02-
                                            03/31/03      03/31/02

Revenue
     Rent                                $1,008,307       $959,680
     Other                                   20,207         30,650

                                          1,028,514        990,330

Rental Expense
     Interest                               149,428        158,615
     Depreciation                           221,225        221,572
     Repairs and Maintenance                257,863        247,203
     Utilities                               92,401         91,889
     Real Estate Taxes                       94,467         94,262
     Management Fees                        115,172        116,604
     Advertising                              1,958          2,661
     Other                                  160,057        144,255

                                          1,092,571      1,077,061

Loss from Rental Activities                 (64,057)       (89,731)

Other Income (Expenses)
     Interest Income                             14             91
     Management Fees                        (21,141)       (21,141)
     Administrative Costs                   (21,267)       (19,160)

Loss Before Deducting Minority
  Interests in Subsidiary Operating
  Partnerships                             (106,451)      (126,941)

Minority Interests in Losses of
  Subsidiary Operating Partnerships             647            876

     Net Loss                             ($105,804)     ($126,065)

Net Loss Allocated to General Partners      ($1,058)       ($1,261)

Net Loss Allocated to Limited Partners     (104,746)      (124,804)

     Net Loss                             ($105,804)     ($126,065)


Net Loss per Limited Partnership Unit       ($12.08)       ($14.39)


Average Number of Limited Partnership
  Units Outstanding                           8,673          8,673



See accompanying notes.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended March 31, 2003 and 2002
(Unaudited)

                                              01/01/03-      01/01/02-
                                              03/31/03       03/31/02

Cash Flows from Operating Activities
  Net Loss                                   ($105,804)     ($126,065)

Adjustments to Reconcile Net Loss
  To Net Cash Provided by Operating
  Activities:
     Depreciation                              221,225        221,572
     Minority Interest in Losses of
       Subsidiary Operating Partnerships          (647)          (876)
     Other                                      41,295          1,986

Net Cash Provided by Operating Activities      156,069         96,617

Cash Flows from Investing Activities
     Purchases of Buildings and Equipment      (33,634)        (1,077)

Net Cash Used by Investing Activities          (33,634)        (1,077)

Cash Flows from Financing Activities
     Principal Payments on Borrowings         (121,241)      (111,217)
     Return of Equity to Minority Investors        (53)           (60)

Net Cash Used by Financing Activities         (121,294)      (111,277)

Net Increase (Decrease) in Cash                  1,141        (15,737)
     Cash Beginning                            211,526        327,416
     Cash Ending                              $212,667       $311,679



See accompanying notes.



















NOTES TO FINANCIAL STATEMENTS (Unaudited)

Note A - Basis of Presentation

The  unaudited  consolidated financial  statements  included
herein  have been prepared in accordance with the rules  and
regulations  of the Securities and Exchange Commission.   In
the  opinion  of the Partnership, all adjustments which  are
considered necessary for a fair statement of the results for
the interim periods have been made; all such adjustments are
of a normal recurring nature.

These   consolidated financial  statements,  which  do  not
include   all disclosures  included  in the annual
consolidated financial  statements, should   be   read  in
conjunction  with  the  consolidated financial  statements
and notes  thereto  included  in  the Partnership's latest
annual report on Form 10-K.

The  results  of  operations  for  the  three  months  ended
March 31,  2003 are not necessarily indicative  of  the
results to be achieved for the year.

Note B - Net Loss Per Limited Partnership Unit

Net  loss per limited partnership Unit is based upon the net
loss allocated to the limited partners and is computed using
the number of Units outstanding of 8,673.

Note C - Liabilities Applicable to Rental Properties

Liabilities applicable to rental properties at March 31,
2003 consist of $24,456,892 of permanent mortgage loans  to
Subsidiary Operating Partnerships.

Note D - Related Party Transactions

The  accompanying consolidated financial statements  reflect
transactions  between  Qualified  Housing  Partners  Limited
Partnership  ("QHP") and its general partners or  affiliates
and  between  the various Subsidiary Operating  Partnerships
and their general partners or affiliates.

Frederick  Investment  Corporation,  the  Managing   General
Partner  of QHP, is a general or special limited partner  in
each   of   the  Operating  Partnerships.   Each   Operating
Partnership also has one or more other general partners (the
"Local  General  Partners").   Following  is  a  summary  of
related  party  transactions  for  the  three  months  ended
March 31, 2003.

                                  QHP General    Local General
Items Paid or Payable              Partners        Partners

Management Fees                     $21,000        $106,000

Reimbursable Operating Expenses      $9,100              $0
MANAGEMENT'S DISCUSSION

Liquidity and Capital Resources

Net  of  the  Subsidiary  Operating Partnerships,  QHP  held
approximately  $24,000  in cash and  liquid  investments  at
March 31, 2003.  These assets will be held  as  working
capital.

At  March 31, 2003, there were 645 holders  of  limited
partnership Units.


Results of Operations

The  Partnership's  loss from rental  activities,  including
depreciation, during the first quarter of 2003 is $64,057 as
compared with a loss of $86,731 for the same period in 2002.
Revenue increased as a result of many properties receiving
rent increases in the first quarter.  Maintenance expenses
continue to increase as the properties age.  Other Expenses
were up due to rising property insurance costs.  Other
variances were a result of normal business fluctuations.


Tax Credits

One of the Partnership's primary investment objectives, the
generation of tax benefits through Low Income Housing Tax
Credits, has been substantially fulfilled.  The majority of
the apartment units stopped producing tax credits in 1999.
The ten-year tax credit period for the final two properties
expired in the first quarter of 2000.  A small number of
apartment units are generating tax credits over a
fifteen-year period rather than the ten years.  This will
produce an insignificant amount of tax credits through 2003.





















                           PART II

                      OTHER INFORMATION


Item 1.   Legal Proceedings

               None

Item 2.   Changes in Securities

               None

Item 3.   Defaults upon Senior Securities

               None

Item 4.   Submission of Matters to a Vote of Security Holders

               None

Item 5.   Other Information

               None

Item 6.   Exhibits and Reports on Form 8-K

               (a)  Exhibits
                    4  The Partnership Agreement is Exhibit A
                       to the Prospectus that is part of the
                       Registration Statement on Form S-11,
                       Number 33-19316 and effective May 20,
                       1988, the final form of which was filed
                       on May 20, 1988 pursuant to Rule 424(b),
                       and is incorporated herein by reference.

               (b)  Reports
                    No reports on Form 8-K were filed for the
                    quarter ended March 31, 2003.


















SIGNATURES


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



                            Frederick Investment Corporation
                            A General Partner



Date:   May 13, 2003        By:  /s/ George F. Marshall
                                 George F. Marshall, President
                                 (Chief Executive Officer)



Date:   May 13, 2003        By:  /s/ Jenny C. Petri
                                 Jenny C. Petri, Vice President
                                 (Chief Financial Officer)



Date:   May 13, 2003        By:  /s/ George F. Marshall
                                 George F. Marshall
                                 A General Partner




























CERTIFICATION OF CHIEF EXECUTIVE OFFICER

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(18 U.S.C.ss.1350)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(18 U.S.C.ss.1350), the undersigned, George F. Marshall,
Chief Executive Officer of Qualified Housing Partners
Limited Partnership, a North Carolina limited partnership,
does hereby certify, to his knowledge, that:

The Quarterly Report on Form 10-Q for the period ended
March 31, 2003 of the Partnership (the "Report")
fully complies with the requirements of Section 13(a)
or 15(d) of the Securities Exchange Act of 1934, and
the information contained in the Report fairly presents,
in all material respects, the financial condition and
results of operations of the Partnership.



Date:   May 13, 2003        By:  /s/ George F. Marshall
                                 George F. Marshall
                                 General Partner
                                 (Chief Executive Officer)



CERTIFICATION OF CHIEF FINANCIAL OFFICER

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(18 U.S.C.ss.1350)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(18 U.S.C.ss.1350), the undersigned, Jenny C. Petri,
Chief Financial Officer of Qualified Housing Partners
Limited Partnership, a North Carolina limited partnership,
does hereby certify, to her knowledge, that:

The Quarterly Report on Form 10-Q for the period ended
March 31, 2003 of the Partnership (the "Report")
fully complies with the requirements of Section 13(a)
or 15(d) of the Securities Exchange Act of 1934, and
the information contained in the Report fairly presents,
in all material respects, the financial condition and
results of operations of the Partnership.

                            FREDERICK INVESTMENT CORPORATION


Date:   May 13, 2003        By:  /s/ Jenny C. Petri
                                 Jenny C. Petri, Vice President
                                 (Chief Financial Officer)




CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

Section 302 Certification

I, George F. Marshall, certify that:

I have reviewed this quarterly report on Form 10-Q of Qualified
Housing Partners Limited Partnership, a North Carolina limited
partnership (the "registrant");

Based on my knowledge, this quarterly report does not contain
any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light
of the circumstances under which such statements were made,
not misleading with respect to the period covered by this
quarterly report;

Based on my knowledge, the financial statements, and other
financial information included in this quarterly report,
fairly present in all material respects the financial condition,
results of operations and cash flows of the registrant as of,
and for, the periods presented in this quarterly report;

The registrant's other certifying officer and I are responsible
for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-14 and 15d-14)
for the registrant and have:

     designed such disclosure controls and procedures to
     ensure that material information relating to the
     registrant, is made known to us by others within
     those entities, particularly during the period in
     which this quarterly report is being prepared;

     evaluated the effectiveness of the registrant's
     disclosure controls and procedures as of a date
     within 90 days prior to the filing date of this
     quarterly report (the "Evaluation Date"); and

     presented in this quarterly report our conclusions
     about the effectiveness of the disclosure controls
     and procedures based on our evaluation as of the
     Evaluation Date;

The registrant's other certifying officer and I have disclosed,
based on our most recent evaluation, to the registrant's auditors
and the audit committee of the registrant's board of directors
(or persons performing the equivalent functions):

     all significant deficiencies in the design or
     operation of internal controls which could
     adversely affect the registrant's ability to
     record, process, summarize and report financial
     data and have identified for the registrant's
     auditors any material weaknesses in internal
     controls; and

     any fraud, whether or not material, that involves
     management or other employees who have a significant
     role in the registrant's internal controls; and

The registrant's other certifying officer and I have indicated
in this quarterly report whether or not there were significant
changes in internal controls or in other factors that could
significantly affect internal controls subsequent to the date
of our most recent evaluation, including any corrective actions
with regard to significant deficiencies and material weaknesses.



Date:   May 13, 2003        By:  /s/ George F. Marshall
                                 George F. Marshall, General Partner
                                 Chief Executive Officer









































CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

Section 302 Certification

I, Jenny C. Petri, certify that:

I have reviewed this quarterly report on Form 10-Q of Qualified
Housing Partners Limited Partnership, a North Carolina limited
partnership (the "registrant");

Based on my knowledge, this quarterly report does not contain
any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light
of the circumstances under which such statements were made,
not misleading with respect to the period covered by this
quarterly report;

Based on my knowledge, the financial statements, and other
financial information included in this quarterly report,
fairly present in all material respects the financial condition,
results of operations and cash flows of the registrant as of,
and for, the periods presented in this quarterly report;

The registrant's other certifying officer and I are responsible
for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-14 and 15d-14)
for the registrant and have:

     designed such disclosure controls and procedures to
     ensure that material information relating to the
     registrant, is made known to us by others within
     those entities, particularly during the period in
     which this quarterly report is being prepared;

     evaluated the effectiveness of the registrant's
     disclosure controls and procedures as of a date
     within 90 days prior to the filing date of this
     quarterly report (the "Evaluation Date"); and

     presented in this quarterly report our conclusions
     about the effectiveness of the disclosure controls
     and procedures based on our evaluation as of the
     Evaluation Date;

The registrant's other certifying officer and I have disclosed,
based on our most recent evaluation, to the registrant's auditors
and the audit committee of the registrant's board of directors
(or persons performing the equivalent functions):

     all significant deficiencies in the design or
     operation of internal controls which could
     adversely affect the registrant's ability to
     record, process, summarize and report financial
     data and have identified for the registrant's
     auditors any material weaknesses in internal
     controls; and

     any fraud, whether or not material, that involves
     management or other employees who have a significant
     role in the registrant's internal controls; and

The registrant's other certifying officer and I have indicated
in this quarterly report whether or not there were significant
changes in internal controls or in other factors that could
significantly affect internal controls subsequent to the date
of our most recent evaluation, including any corrective actions
with regard to significant deficiencies and material weaknesses.

                                 FREDERICK INVESTMENT CORPORATION

Date:   May 13, 2003        By:  /s/ Jenny C. Petri
                                 Jenny C. Petri, Vice President
                                 (Chief Financial Officer)