<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1996
COMMISSION FILE NUMBER 0-13465
NATIONAL HOUSING PARTNERSHIP REALTY FUND I
(A MARYLAND LIMITED PARTNERSHIP)
(Exact name of registrant as specified in its charter)
MARYLAND 52-1358879
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
8065 LEESBURG PIKE
SUITE 400
VIENNA, VIRGINIA 22182-2738
(Address of principal executive offices)
(Zip Code)
(703) 394-2400
(Registrant's telephone number, including area code)
1225 EYE STREET, N.W.
WASHINGTON, D.C. 20005
(Former name, former address and former fiscal year,
if changed since last report.)
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
------ ------
<PAGE> 2
PART 1 - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
NATIONAL HOUSING PARTNERSHIP REALTY FUND I
(A MARYLAND LIMITED PARTNERSHIP)
STATEMENTS OF FINANCIAL POSITION
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
-------------------- --------------------
ASSETS
------
<S> <C> <C>
Cash and cash equivalents $ 45,930 $ 356
Distribution receivable 11,957 11,957
Investments in and advances to
Local Limited Partnerships (Note 2) 818,974 -
------- --------
$876,861 $ 12,313
======= ========
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
------------------------------------------
Liabilities:
Administrative and reporting fee
payable to General Partner (Note 3) 700,376 657,180
Due to General Partner 9,911 -
Accrued expenses 20,683 42,761
------- --------
730,970 699,941
------- --------
Partners' equity (deficit):
General Partner -- The National
Housing Partnership (NHP) (93,906) (102,241)
Original Limited Partner --
1133 Fifteenth Street Associates (98,806) (107,141)
Other Limited Partners -- 11,519
investment units 338,603 (478,246)
------- --------
145,891 (687,628)
------- --------
$876,861 $ 12,313
======= ========
</TABLE>
See notes to financial statements.
-1-
<PAGE> 3
NATIONAL HOUSING PARTNERSHIP REALTY FUND I
(A MARYLAND LIMITED PARTNERSHIP)
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
1996 1995 1996 1995
------------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
REVENUES:
Share of income from Local Limited
Partnerships $ 11,469 $ - $ 11,469 $ -
Distributions and repayments received
in excess of investment in and
advances to Local Limited Partnerships 83,616 - 83,616 -
Interest income 24,278 112 24,613 771
------- -------- ------- --------
119,363 112 119,698 771
------- -------- ------- --------
COSTS AND EXPENSES:
Administrative and reporting fees
to General Partner (Note 3) 21,598 21,598 43,196 43,196
Other operating expenses 11,373 13,234 27,016 24,731
------- -------- ------- --------
32,971 34,832 70,212 67,927
------- -------- ------- --------
NET PROFIT (LOSS) BEFORE
EXTRAORDINARY ITEM 86,392 (34,720) 49,486 (67,156)
EXTRAORDINARY ITEM - SHARE OF
GAIN ON EXTINGUISHMENT OF DEBT 784,033 - 784,033 -
------- -------- ------- --------
NET PROFIT (LOSS) $870,425 $ (34,720) $833,519 $ (67,156)
======= ======== ======= ========
NET PROFIT (LOSS) BEFORE
EXTRAORDINARY ITEM ASSIGNABLE
TO LIMITED PARTNERS $ 84,664 $ (34,024) $ 48,496 $ (65,812)
EXTRAORDINARY ITEM - GAIN ON
EXTINGUISHMENT OF DEBT
ASSIGNABLE TO LIMITED PARTNERS 768,353 - 768,353 -
------- -------- ------- --------
NET PROFIT (LOSS) ASSIGNABLE TO
LIMITED PARTNERS $853,017 $ (34,024) $816,849 $ (65,812)
======= ======== ======= ========
NET PROFIT (LOSS) BEFORE
EXTRAORDINARY ITEM PER LIMITED
PARTNERSHIP INTEREST $ 7 $ (3) $ 4 $ (6)
EXTRAORDINARY ITEM - GAIN ON
EXTINGUISHMENT OF DEBT PER
LIMITED PARTNERSHIP INTEREST 67 - 67 -
------- -------- ------- --------
NET PROFIT (LOSS) PER LIMITED
PARTNERSHIP INTEREST $ 74 $ (3) $ 71 $ (6)
======= ======== ======= ========
</TABLE>
See notes to financial statements.
-2-
<PAGE> 4
NATIONAL HOUSING PARTNERSHIP REALTY FUND I
(A MARYLAND LIMITED PARTNERSHIP)
STATEMENT OF PARTNER'S EQUITY (DEFICIT)
<TABLE>
<CAPTION>
The National 1133
Housing Fifteenth Other
Partnership Street Limited
(NHP) Associates Partners Total
------------- ---------- -------- -----
<S> <C> <C> <C> <C>
Deficit at January 1, 1996 $(102,241) $(107,141) $(478,246) $(687,628)
Net profit -- six months ended
June 30, 1996 8,335 8,335 816,849 833,519
-------- -------- -------- --------
Equity (deficit) at June 30, 1996 $ (93,906) $ (98,806) $ 338,603 $ 145,891
======== ======== ======== ========
Percentage interest at
June 30, 1996 1% 1% 98% 100%
======== ======== ======== ========
(A) (B) (C)
</TABLE>
(A) General Partner
(B) Original Limited Partner
(C) Consists of 11,519 investments units of 0.0085% held by 1,114 investors
See notes to financial statements.
-3-
<PAGE> 5
NATIONAL HOUSING PARTNERSHIP REALTY FUND I
(A MARYLAND LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Six Months
Ended June 30,
----------------------------------------------
1996 1995
----- ----
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Distributions received in excess of investment
in and advances to Local Limited Partnerships $ 47,004 $ -
Interest received 24,613 771
Operating expenses paid (49,094) (40,231)
--------- -------
Net cash provided by (used in) operating activities 22,523 (39,460)
--------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Advances to Local Limited Partnerships (23,472) -
Repayment of loans to Local Limited Partnerships 36,612 -
--------- -------
Net cash provided by investing activities 13,140 -
CASH FLOWS FROM FINANCIAL ACTIVITIES:
Advances from General Partner 9,911 -
--------- -------
Net increase (decrease) in cash and cash
equivalents 45,574 (39,460)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 356 47,636
--------- -------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 45,930 $ 8,176
========= =======
RECONCILIATION OF NET PROFIT (LOSS) TO NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Net profit (loss) 833,519 $(67,156)
--------- -------
Adjustments to reconcile net loss to net cash
used in operating activities:
Share of income from Local Limited Partnerships (11,469)
Share of gain on extinguishment of debt (784,033)
Repayment of advances to Local Limited Partnerships (36,612)
Increase in administrative and reporting fees payable 43,196 43,196
Decrease in other accrued expenses (22,078) (15,500)
--------- -------
Total adjustments (810,996) 27,696
--------- -------
Net cash provided by (used in) operating activities $ 22,523 $(39,460)
========= =======
</TABLE>
See notes to financial statements.
-4-
<PAGE> 6
NATIONAL HOUSING PARTNERSHIP REALTY FUND I
(A MARYLAND LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
(1) ACCOUNTING POLICIES
ORGANIZATION
National Housing Partnership Realty Fund I (the "Partnership") is a
limited partnership organized under the laws of the State of Maryland
under the Maryland Revised Uniform Limited Partnership Act on October
21, 1983. The Partnership was formed for the purpose of raising
capital by offering and selling limited partnership interests and then
investing in limited partnerships ("Local Limited Partnerships"), each
of which owns and operates an existing rental housing project which is
financed and/or operated with one or more forms of rental assistance
or financial assistance from the U.S. Department of Housing and Urban
Development ("HUD").
The General Partner raised capital for the Partnership by offering and
selling to additional limited partners 11,519 investment units at a
price of $1,000 per unit. The Partnership acquired limited partnership
interests ranging from 98% to 99% in ten Local Limited Partnerships,
each of which was organized to acquire and operate an existing rental
housing project.
BASIS OF PRESENTATION
The accompanying unaudited interim financial statements reflect all
adjustments which are, in the opinion of management, necessary to a
fair statement of the financial condition and results of operations
for the interim periods presented. All such adjustments are of a
normal and recurring nature.
While the General Partner believes that the disclosures presented are
adequate to make the information not misleading, it is suggested that
these financial statements be read in conjunction with the financial
statements and notes included in NHP Realty Fund I's Annual Report
filed in Form 10-K for the year ended December 31, 1995.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that effect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ
from those estimates.
-5-
<PAGE> 7
NATIONAL HOUSING PARTNERSHIP REALTY FUND I
(A MARYLAND LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
(2) INVESTMENTS IN AND ADVANCES TO LOCAL LIMITED PARTNERSHIPS
The Partnership owns a 98% limited partnership interest in Gates Mills
I Limited Partnership and 99% limited partnership interests in nine
other Local Limited Partnerships. Because the Partnership, as a
limited partner, does not exercise control over the activities of the
Local Limited Partnerships in accordance with the partnership
agreements, the investments in Local Limited Partnerships are
accounted for using the equity method. Thus, the investments (and the
advances made to the Local Limited Partnerships as discussed below)
are carried at cost less the Partnership's share of the Local Limited
Partnerships' losses and distributions. However, because the
Partnership is not legally liable for the obligations of the Local
Limited Partnerships, and is not otherwise committed to provide
additional support to them, it does not recognize losses once its
investments, reduced for its share of losses and cash distributions,
reach zero in each of the individual Local Limited Partnerships. As of
December 31, 1995, investments in all ten of the Local Limited
Partnerships had been reduced to zero. However, during the six months
ended June 30, 1996, Forest Green and Village Green Limited
Partnerships completed discounted buyout agreements for early
settlement of their deferred acquisition notes and related accrued
interest payable, resulting in gains of $1,367,662 and $1,378,734,
respectively, for the two Local Limited Partnerships. As a result, the
Partnership has recorded its share of income and gain on
extinguishment of debt, net of previously unrecorded losses of
$1,934,899, in the two Local Limited Partnerships which amounted to
$11,469 and $784,033, respectively, for the six months ended June 30,
1996. The Partnership did not recognize $1,120,563 and $665,651 of
losses, from the eight and ten Local Limited Partnerships during the
six months ended June 30, 1996 and 1995, respectively. As of June 30,
1996 and December 31, 1995, the Partnership has not recognized a total
of $12,116,357 and $12,930,693, respectively, of its allocated share
of cumulative losses from the Local Limited Partnerships in which its
investment is zero.
Advances made by the Partnership to the individual Local Limited
Partnerships are considered part of the Partnership's investment in
Local Limited Partnerships. When advances are made, they are charged
to operations as a loss on investment in the Local Limited Partnership
using previously unrecognized cumulative losses. As discussed above,
due to the cumulative losses incurred by the Local Limited
Partnerships, the aggregate balance of investments in and advances to
Local Limited Partnerships has been reduced to zero at June 30, 1996
and December 31, 1995, for eight and ten Local Limited Partnerships,
respectively. To the extent these advances are repaid by the Local
Limited Partnerships in the future, the repayments will be credited as
distributions and repayments received in excess of investment in Local
Limited Partnerships. These advances are carried as a payable to the
Partnership by the Local Limited Partnerships.
-6-
<PAGE> 8
NATIONAL HOUSING PARTNERSHIP REALTY FUND I
(A MARYLAND LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
During the six months ended June 30, 1996, the Partnership advanced
$23,472 to Village Green Local Limited Partnership to complete a
discounted buyout agreement for early settlement of the property's
deferred acquisition note and accrued interest payable. No advances
were made by the Partnership during the six months ended June 30,
1995. During the six months ended June 30, 1996, repayments of
advances of $36,612 and accrued interest of $24,277 were received from
two Local Limited Partnerships. These repayments were credited as
distributions and repayments received in excess of investment in Local
Limited Partnerships. No repayments of advances were made to the
Partnership during the six months ended June 30, 1995. The combined
amount carried as due to the Partnership by the Local Limited
Partnerships was $379,590 as of June 30, 1996.
The following are combined statements of operations for the three
months and six months ended June 30, 1996 and 1995, respectively, of
the Local Limited Partnerships in which the Partnership has invested.
The statements are compiled from financial statements of the Local
Limited Partnerships, prepared on the accrual basis of accounting, as
supplied by the management agents of the projects, and are unaudited.
-7-
<PAGE> 9
NATIONAL HOUSING PARTNERSHIP REALTY FUND I
(A MARYLAND LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
COMBINED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
----------------------------------- --------------------------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Rental income $ 1,837,637 $ 1,812,967 $ 3,636,725 $ 3,599,500
Other income 86,109 76,939 167,267 124,191
---------- ---------- ---------- ----------
Total income 1,923,746 1,889,906 3,803,992 3,723,691
---------- ---------- ---------- ----------
Operating expenses 1,333,119 1,164,106 2,569,154 2,314,677
Interest, taxes and
insurance 875,399 835,949 1,765,233 1,508,296
Depreciation 303,392 270,313 591,406 574,339
---------- ---------- ---------- ----------
Total expenses 2,511,910 2,270,368 4,925,793 4,397,312
---------- ---------- ---------- ----------
Net loss before
extraordinary item (588,164) (380,462) (1,121,801) (673,621)
Gain on extinguishment
of debt 2,746,396 - 2,746,396 -
---------- ---------- ---------- ----------
Net profit (loss) $ 2,158,232 $ (380,462) $ 1,624,595 $ (673,621)
========== ========== ========== ==========
National Housing
Partnership Realty
Fund I share of
profits (losses) $ 2,137,384 $ (376,061) $ 1,609,838 $ (665,651)
========== ========== ========== ==========
</TABLE>
(3) TRANSACTIONS WITH THE GENERAL PARTNER
During the six month periods ended June 30, 1996 and 1995, the
Partnership accrued administrative and reporting fees payable to the
General Partner in the amount of $43,196 for services provided to the
Partnership. No payments for these fees were made during each of the
respective periods. The amount due the General Partner by the
Partnership was $700,376 and $657,180 at June 30, 1996 and December 31,
1995, respectively.
-8-
<PAGE> 10
NATIONAL HOUSING PARTNERSHIP REALTY FUND I
(A MARYLAND LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
During the six months ended June 30, 1996, the General Partner advanced
$9,911 to the Partnership to fund operating expenses. the amount owed
to the General Partner by the Partnership for operating advances was
$9,911 at June 30, 1996. Interest is charged on borrowings at the Chase
Manhattan Bank rate of prime plus 2%. Accrued interest on this loan as
of June 30, 1996 totaled $183.
The advances and accrued administrative and reporting fees payable to
the General Partner will be paid only as cash flow permits or from the
sale or refinancing of one or more of the underlying properties of the
Local Limited Partnerships.
-9-
<PAGE> 11
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
NATIONAL HOUSING PARTNERSHIP REALTY FUND I
(A MARYLAND LIMITED PARTNERSHIP)
LIQUIDITY AND CAPITAL RESOURCES
The properties in which the Partnership has invested, through its investments
in the Local Limited Partnerships, receive one or more forms of assistance from
Federal, state or local governments or agencies. As a result, the Local Limited
Partnerships' ability to transfer funds either to the Partnership or among
themselves in the form of cash distributions, loans or advances is generally
restricted by these government-assistance programs. These restrictions,
however, are not expected to impact the Partnership's ability to meet its cash
obligations.
Net cash provided by operations for the six months ended June 30, 1996 was
$22,523 as compared to cash used in operations of $39,460 for the six months
ended June 30, 1995. The increase in cash provided by operations resulted from
an increase in distributions received in excess of investment in and advances
to Local Limited Partnerships and an increase in interest income partially
offset by an increase in operating expenses paid during the six months ended
June 30, 1996 compared to the six months ended June 30, 1995.
During the six months ended June 30, 1996, the Partnership advanced $23,472 to
Village Green Local Limited Partnership to complete a discounted buyout
agreement for early settlement of the property's deferred acquisition note and
accrued interest payable. No advances were made by the Partnership during the
six months ended June 30, 1995. During the six months ended June 30, 1996,
repayments of advances of $36,612 and accrued interest of $24,277 were received
from two Local Limited Partnerships. These repayments were credited as
distributions and repayments received in excess of investment in Local Limited
Partnerships. No repayments of advances were made to the Partnership during the
six months ended June 30, 1995. The combined amount carried as due to the
Partnership by the Local Limited Partnerships was $379,590 as of June 30, 1996.
Distributions received from Local Limited Partnerships represent the
Partnership's proportionate share of the excess cash available for distribution
from the Local Limited Partnerships. As a result of the use of the equity
method of accounting for the Partnership's investments, as of June 30, 1996,
investments in eight of the ten Local Limited Partnerships had been reduced to
zero. For these investments, cash distributions received are recorded in
income as distributions received in excess of investment in Local Limited
Partnerships. There were no cash distributions during the six months ended June
30, 1995. Cash distributions of $47,004 from two Local Limited Partnerships
were received during the six months ended June 30, 1996. The receipt of
distributions in future quarters and years is dependent upon the operations of
the underlying properties of the Local Limited Partnerships.
-10-
<PAGE> 12
NATIONAL HOUSING PARTNERSHIP REALTY FUND I
(A MARYLAND LIMITED PARTNERSHIP)
MANAGEMENT S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Cash and cash equivalents amounted to $45,930 at June 30, 1996. The ability of
the Partnership to meet its on-going cash requirements, in excess of cash on
hand at June 30, 1996, is dependent upon the future receipt of distributions
from the Local Limited Partnerships or proceeds from sales or refinancing of
one or more of the underlying properties of the Local Limited Partnerships.
Cash on hand at June 30, 1996, plus any distributions from the underlying
operations of the combined Local Limited Partnerships is expected to adequately
fund the operations of the Partnership in the current year. However, there can
be no assurance that future distributions will be adequate to fund the
operations beyond the current year.
The Partnership currently owes the General Partner $700,376 for administrative
and reporting services performed. The payment of the unpaid administrative and
reporting fees will most likely result from the sale or refinancing of the
underlying properties of the Local Limited Partnerships, rather than through
recurring operations.
National Corporation for Housing Partnerships was a significant participant in
the drafting and passage of the Low Income Housing Preservation and Resident
Homeownership Act of 1990 (LIHPRHA). LIHPRHA creates a procedure under which
owners of properties assisted under the HUD Section 236 or 221(d)(3) program
may be eligible to receive financial incentives in return for agreeing to
extend their property's use as low income housing. When the appropriation for
the Department of Housing and Urban Development (which administers LIHPRHA) for
the 1996 fiscal year was approved, funding for the program was limited. The
appropriation for LIHPRHA for fiscal year 1996 was recently exhausted. None of
the Local Limited Partnerships received incentives under the program. At this
point, it is not clear whether LIHPRHA will receive funding from Congress in
future fiscal years. Even if the program receives funding, it is not certain
that any of the Local Limited Partnerships will receive incentives under
LIHPRHA.
All the Local Limited Partnerships in which the Partnership has invested carry
deferred acquisition notes due to the original owners of the Properties. In the
event of a default on these notes, the noteholders would assume ownership of
both NHP's and the Partnership's interests in the Local Limited Partnerships.
Notes related to the acquisition of Fairmeadows and Southridge had final
maturity dates in 1994, and the notes related to Gates Mills and Hurbell IV had
1994 due dates but were extended for five years. All of the other notes have
final maturity dates between 1997 and 1999.
The Fairmeadows and Southridge notes finally matured on September 24, 1994 and
October 18, 1994, respectively. The noteholders have not yet formally declared
the notes in default. The General Partner has been negotiating with the
noteholders to extend the maturity date of the notes. To date, these
negotiations have been unsuccessful. Should no agreement be reached, and the
-11-
<PAGE> 13
NATIONAL HOUSING PARTNERSHIP REALTY FUND I
(A MARYLAND LIMITED PARTNERSHIP)
MANAGEMENT S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
noteholders declare the notes in default and proceed to foreclose, the
Partnership may lose its interest in these Local Limited Partnerships. A loss
of interest in these Local Limited Partnerships may cause the partners in the
Partnership to incur adverse tax consequences. Such tax consequences will be
dependent on each partner's individual tax situation. The General Partner is
continuing efforts to renegotiate these notes. There can be no assurance that
the General Partner will be successful in its efforts to renegotiate the terms
of these notes.
On October 2, 1995, Village Green and Forest Green Limited Partnerships entered
into Note Purchase and Sale Agreements ("Agreements") for the discounted
purchase of the deferred acquisition notes due to the original owners of these
Properties. The Agreements require two installment payments totaling $175,000
for the purchase of each of the notes. The initial installment payments of
$120,000 each were made upon execution of the Agreements. The final
installments of $55,000 each were paid on May 1, 1996.
The Forest Green Local Limited Partnership paid the final installment with
surplus cash generated during 1995. The final installment for the Village Green
Local Limited Partnership was made with $21,201 of surplus cash generated
during 1995 and by obtaining partner loans from the Partnership and the General
Partner of $23,472 and $237, respectively. As a result of the payment of the
final installments, the balances of the total deferred acquisition notes
payable and related accrued interest have been reduced to zero, resulting in
gains on extinguishment of debt of $1,367,662 and $1,378,734 for Forest Green
and Village Green Limited Partnerships, respectively, for the six months ended
June 30, 1996.
RESULTS OF OPERATIONS
The Partnership has invested as a limited partner in Local Limited Partnerships
which operate ten rental housing properties. In prior years, results of
operations of NHP Realty Fund I were significantly impacted by the
Partnership's share of the losses of the Local Limited Partnerships. These
losses included depreciation and accrued deferred acquisition note interest
expense which are noncash in nature. Because the investments in and advances to
Local Limited Partnerships have been reduced to zero in prior years, the
Partnership's share of the operations of the Local Limited Partnerships is no
longer being recorded. However, during the six months ended June 30, 1996,
Forest Green and Village Green Limited Partnerships completed discounted buyout
agreements for early settlement of their deferred acquisition notes and related
accrued interest payable, resulting in gains of $1,367,662 and $1,378,734,
respectively, for the two Local Limited Partnerships. As a result, the
Partnership has recorded its share of income and gain on extinguishment of debt
of $11,469 and $784,033, respectively, net of previously unrecorded losses, in
the two Local Limited Partnerships for the six months ended June 30, 1996.
-12-
<PAGE> 14
NATIONAL HOUSING PARTNERSHIP REALTY FUND I
(A MARYLAND LIMITED PARTNERSHIP)
MANAGEMENT S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The Partnership realized a net profit before extraordinary item of $49,486 for
the six months ended June 30, 1996, compared to a net loss of $67,156 for the
six months ended September 30, 1995. Net profit before extraordinary item per
unit of limited partnership interest was $4 compared to a net loss per unit of
$6 for the 11,519 units outstanding for both periods. The increase in net
profit before extraordinary item was primarily due to the increases in share of
income from Local Limited Partnerships, distributions received in excess of
investment in and advances to Local Limited Partnerships and interest income.
Additionally, the Partnership recognized a gain from extinguishment of debt of
$784,033 due to the early settlement of the deferred acquisition notes for
Village Green and Forest Green during the six months ended June 30, 1996. There
was no such gain recognized during the six months ended June 30, 1995. The
Partnership did not recognize $1,120,563 of its allocated share of losses
before extraordinary item from the eight Local Limited Partnerships for the six
months ended June 30, 1996, as the Partnership's net carrying basis in these
Partnerships had been reduced to zero. The Partnership's share of operating
losses from the Local Limited Partnerships, if not limited to its investment
account balance, would have increased $443,443 between periods, primarily due
to an increase in operating expenses and interest accrued on deferred
acquisition notes for Fairmeadows and Southridge Limited Partnerships.
-13-
<PAGE> 15
SIGNATURES
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.
NATIONAL HOUSING PARTNERSHIP REALTY FUND I
------------------------------------------
(Registrant)
By: The National Housing Partnership,
its sole General Partner
By: National Corporation for Housing
Partnerships, its sole General Partner
August 5, 1996 By: /s/
- -------------- -----------------------------------------
Jeffrey J. Ochs
As Vice President and Chief Accounting
Officer
-14-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 45,930
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 57,887
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 876,861
<CURRENT-LIABILITIES> 730,970
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 145,891
<TOTAL-LIABILITY-AND-EQUITY> 876,861
<SALES> 0
<TOTAL-REVENUES> 119,698
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 70,212
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 49,486
<INCOME-TAX> 0
<INCOME-CONTINUING> 49,486
<DISCONTINUED> 0
<EXTRAORDINARY> 784,033
<CHANGES> 0
<NET-INCOME> 833,519
<EPS-PRIMARY> 71
<EPS-DILUTED> 71
</TABLE>
