This Prospectus Supplement filed pursuant to Rule 424(b)(3)
Registration Number 333-17595
Registration Number 333-17595-01
PROSPECTUS SUPPLEMENT
This is a Supplement, dated February 7, 1997, to the
Prospectus, dated January 22, 1997, with respect to the resale of
2,990,000 6-1/2% Trust Convertible Preferred Securities
(liquidation amount $50 per Convertible Preferred Security) of
Insignia Financing I, guaranteed to the extent set forth therein
by, and convertible into the Common Stock of, Insignia Financial
Group, Inc. In order to reflect transfers of the Convertible
Preferred Securities, the table appearing on pages 56 and 57 in
the Prospectus under the caption "Selling Holders" is hereby
restated as follows:
The following table sets forth information with respect to
the Selling Holders and the respective number of Convertible
Preferred Securities beneficially owned by each Selling Holder
that may be offered pursuant to this Prospectus. Such
information has been obtained from the Selling Holders and the
Property Trustee.
Number of
Convertible
Preferred
Selling Holder Securities
______________ ____________
Amalga & Co. f/b/o SEIU . . . . . . . . . . . . . . . . . . . 900
Argent Classic Arbitrage Convertible Arbitrage
Fund, L.P. . . . . . . . . . . . . . . . . . . . . . 90,000
Argent Classic Convertible Arbitrage Fund
(Bermuda) L.P. . . . . . . . . . . . . . . . . . . . 43,850
Boston Co. f/b/o Kresge . . . . . . . . . . . . . . . . . . 8,800
Boston Co. f/b/o Common Fund. . . . . . . . . . . . . . . . 7,100
Boston Co. f/b/o Bush Value . . . . . . . . . . . . . . . . 4,200
Boston College Endowment. . . . . . . . . . . . . . . . . . 4,750
Cede & Co. f/b/o Donaldson. . . . . . . . . . . . . . . . . 2,250
Cede & Co. f/b/o Schwan's . . . . . . . . . . . . . . . . . 5,050
Cede & Co. f/b/o Sisters of St. Joseph. . . . . . . . . . . 1,800
Cede & Co. f/b/o State of Connecticut Combined
Investment Funds. . . . . . . . . . . . . . . . . . . 3,600
Commonwealth Life Insurance Company-
(Teamsters/Camden Non-Enhanced) . . . . . . . . . . . 25,000
Commonwealth Life Insurance-Stock TRAC (Teamsters I) . . . 25,000
Dean Witter Convertible Securities Trust. . . . . . . . . 100,000
Dean Witter Income Builder Fund. . . . . . . . . . . . . . 75,000
Delta Airlines Master Trust. . . . . . . . . . . . . . . . 38,400
Ell & Co. f/b/o Outboard Marine . . . . . . . . . . . . . . 9,000
Number of
Convertible
Preferred
Selling Holder Securities
______________ ____________
Ell & Co. f/b/o Monsanto Pension Plans . . . . . . . . . . 15,100
Ell & Co. f/b/o Oklahoma Law Ret . . . . . . . . . . . . . 2,950
Employers' Reinsurance Corporation . . . . . . . . . . . . 15,000
Emseg & Co. f/b/o Iowa State University . . . . . . . . . . 3,500
Fleet National Bank f/b/o City of New Haven . . . . . . . . 1,150
Froley, Revy Investment Company Inc.: ICI American
Holdings Pension c/o State Street Bank . . . . . . . . 4,000
Froley, Revy Investment Company Inc.: Zeneca Holdings
Pension c/o State Street Bank. . . . . . . . . . . . . 4,000
Froley, Revy Investment Company Inc.: Delaware State
Retirement Fund -- Froley, Revy c/o Mercantile
Safe Deposit . . . . . . . . . . . . . . . . . . . . . 9,700
Froley, Revy Investment Company Inc.: PRIM Board
c/o State Street Bank . . . . . . . . . . . . . . . . 15,000
Froley, Revy Investment Company Inc.: Oregon
Equity Fund c/o Wells Fargo Bank. . . . . . . . . . . 42,400
Froley, Revy Investment Company Inc.: Nalco
Chemical Retirement c/o The Northern Trust Company . . 1,700
Grace Brothers, Ltd. . . . . . . . . . . . . . . . . . . . 18,000
Hartford Fire Insurance Company . . . . . . . . . . . . . . 9,950
Highbridge Capital Corporation . . . . . . . . . . . . . . 50,000
Hughes Aircraft Company Master Retirement Trust. . . . . . 18,100
Husic Capital Management as a Discretionary Asset
Manager for the Ameritech Pension Plan under
an Investment Management Agreement dated
December 22, 1995 . . . . . . . . . . . . . . . . . . 60,000
Janus Capital Corporation: on behalf of Janus
Balanced Fund . . . . . . . . . . . . . . . . . . . . 47,117
Janus Capital Corporation: on behalf of Janus
Equity Income Fund. . . . . . . . . . . . . . . . . . 13,208
Janus Capital Corporation: on behalf of Janus
Aspen Series Balanced Portfolio. . . . . . . . . . . 11,484
Lincoln National Convertible Securities Fund . . . . . . . 43,050
Lincoln National Life Insurance. . . . . . . . . . . . . . 94,650
Lipper Convertibles, L.P. . . . . . . . . . . . . . . . . 173,500
Lucas & Co. f/b/o Iron Workers. . . . . . . . . . . . . . . 1,100
Museum of Fine Arts, Boston . . . . . . . . . . . . . . . . 2,000
New Hampshire State Retirement System. . . . . . . . . . . 12,575
New York Life Insurance Company . . . . . . . . . . . . . 150,000
OCM Convertible Limited Partnership . . . . . . . . . . . . 3,500
OCM Convertible Trust. . . . . . . . . . . . . . . . . . . 58,200
Pacific Mutual Life Insurance Co . . . . . . . . . . . . . 20,000
Pitt & Co. f/b/o Missouri State Employee's
Retirement System . . . . . . . . . . . . . . . . . . 24,900
Pitt & Co. f/b/o Tracor Inc.. . . . . . . . . . . . . . . . . 800
Pondwave & Co. f/b/o State of Connecticut Combined
Investment Fund . . . . . . . . . . . . . . . . . . . 45,000
Number of
Convertible
Preferred
Selling Holder Securities
______________ ____________
Promutual. . . . . . . . . . . . . . . . . . . . . . . . . 10,475
Putnam Balanced Retirement Fund . . . . . . . . . . . . . . 5,600
Putnam Convertible Income-Growth Trust . . . . . . . . . . 92,000
Putnam Convertible Opportunities and Income Trust . . . . . 9,180
Shepard Investments International, Ltd. . . . . . . . . . 104,000
Stark International . . . . . . . . . . . . . . . . . . . 104,000
State Employees Retirement Fund of the State of
Delaware. . . . . . . . . . . . . . . . . . . . . . . 14,500
The TCW Group, Inc. . . . . . . . . . . . . . . . . . . . 131,000
Tennessee Consolidated Retirement System . . . . . . . . . 80,000
Topworks & Co. f/b/o Montgomery County Employees . . . . . 11,500
Trussal & Co. f/b/o M.E.R.S. of Michigan . . . . . . . . . 21,900
United National Life Insurance. . . . . . . . . . . . . . . 1,650
Vanguard Convertible Securities Fund, Inc. . . . . . . . . 32,100
Weirton Trust. . . . . . . . . . . . . . . . . . . . . . . 10,650
Any other holder of Convertible Preferred Securities
or future transferee, pledgee, donee or other
successor of such holder . . . . . . . . . . . . . 945,111
-------
Total. . . . . . . . . . . . . . . . . . . . . . . 2,990,000
This Prospectus Supplement is dated February 7, 1997
