Capital Resources

The Partnership's capital resources consist primarily of its four manufactured housing communities. On March 25, 1997 the Partnership borrowed $33,500,000 from Nomura Asset Capital Corporation (the "Financing"). It secured the Financing by placing liens on its four communities. As a result of the Financing, the Partnership distributed $30,000,000 to the Limited Partners, which represented a full return of the original capital contributions of $1,000 per unit.

Liquidity

As a result of the Financing, the Partnership's four properties are mortgaged. At the time of the Financing, the aggregate principal amount due under the four mortgage notes was $33,500,000 and the aggregate fair market value of the Partnership's mortgaged properties was $53,200,000. The Partnership expects to meet its short-term liquidity needs generally through its working capital provided by operating activities.

The Partnership's long-term liquidity is based, in part, upon its investment strategy. The properties owned by the Partnership were anticipated to be held for seven to ten years after their acquisition. All of the properties have been owned by the Partnership more than ten years. The General Partner may elect to have the Partnership own the properties for as long as, in the opinion of the General Partner, it is in the best interest of the Partnership to do so.

The Partnership has a renewable $1,000,000 line of credit with National City Bank of Michigan/Illinois (formerly First of America Bank). The interest rate, on such line of credit, floats 180 basis points above 1 month LIBOR, which on June 30, 2002 was 3.312%. The sole purpose of the line of credit is to purchase new and used homes to be used as model homes offered for sale within the Partnership's communities. Over the past three years, sales of the new and used model homes has been growing and the General Partner believes that continuing the model home program is in the best interest of the Partnership. As of June 30, 2002 the outstanding balance on the line of credit was $195,755. Because the Partnership's cash reserves have remained stable over the past several quarters, the General Partner has elected to continue paying down the line of credit in order to minimize interest costs.

Net Cash from Operations available for aggregate distributions to all Partners in UMHCIF during the quarter ended June 30, 2002 amounted to $553,851.

The amount available during the same period in 2001 was $493,760. Net Cash from Operations is meant to be a supplemental measure of the Partnership's operating performance. Net Cash from Operations is defined as net income computed in accordance with generally accepted accounting principles ("GAAP"), plus real estate related depreciation and amortization.

Net Cash from Operations does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of cash available to fund cash needs. Net Cash from Operations should not be considered as an alternative to net income as the primary indicator of the Partnership's operating performance nor as an alternative to cash flow as a measure of liquidity.

The quarterly Partnership Management Distribution paid to the General Partner during the third quarter based on second quarter results was $146,750, or one-fourth of 1.0% of the most recent appraised value of the properties held by the Partnership ($58,700,000 x .01 = $587,000 / 4 = $146,750).

The cash available after payment of the Partnership Management Distribution amounted to $407,101. From this amount, the General Partner elected to make a total distribution of $112,500 for the second quarter of 2002 equal to the amount distributed for the second quarter of 2001, 80.0% or $90,000, was paid to the Limited Partners and 20.0% or $22,500 was paid to the General Partner.

While the Partnership is not required to maintain a working capital reserve, the Partnership has not distributed all the cash generated from operations in order to build cash reserves. For the quarter ended June 30, 2002, the Partnership added $294,601 to reserves. During the same quarter in 2001, the Partnership added $233,510 to cash reserves. The amount placed in reserves is at the discretion of the General Partner.

Results of Operations

Overall, as illustrated in the tables below, the four properties had a combined average occupancy of 94% at the end of June 2002, same as the second quarter of 2001. The average monthly rent in June 2002 was approximately $450, or 3% more than the $438 average monthly rent in June 2001 (average rent not a weighted average).

	Total Capacity	Occupied Sites	Occupancy Rate	Average Rent*
Aztec Estates	645	574	89%	$493
Kings Manor	314	304	97%	479
Old Dutch Farms	293	261	89%	432
Park of the Four Seasons	572	564	99%	397
Total on 6/30/02:	1,824	1,703	94%	$450
Total on 6/30/01:	1,824	1,709	94%	$438

*Not a weighted average

                                For the three months ending June 30, 2002
                          Gross Revenues                          Net Income

                         6/30/02	   6/30/01	          6/30/02	    6/30/01						    	
Aztec Estates	     $ 1,243,202	 $ 896,192	       $ 427,283	  $ 433,538
Kings Manor	 	 664,254	   433,102   	         311,644	    262,069
Old Dutch Farms	 	 390,209	   370,072	         199,709	    199,506
Park of the Four Seasons 741,167	   716,573	         450,078            409,286
                       3,038,832	 2,415,939             1,388,714	  1,304,399

Partnership Management:    4,657	     14,288	         (48,989)	    (67,362)

Other Non Recurring expenses:	            ----- 	        (114,052)	    (64,825)

Debt Service						        (671,822)	   (678,452)

Depreciation and Amortization	           -----	       -(236,369)	   (219,323)

                     $ 3,043,489 	$ 2,430,227	        $317,482	   $274,437 

Gross revenues increased $613,262 to $3,043,489 in 2002, as compared to $2,430,227 in 2001. (See table in previous section). The increase in revenue was due primarily to a $562,472 increase in Home Sale Income.

As described in the Statements of Income, total operating expenses were higher, increasing from $2,155,790 in 2001 to $2,726,007 in 2002. This was due primarily to a $525,497 increase in Home Sale Expense.

As a result of the aforementioned factors, Net Income increased 16% for the second quarter of 2002 compared to the same quarter of the prior year, increasing from $274,437 for 2001 to $317,482 for 2002.

For the first six months of 2002, Gross Revenues were $5,621,286, an increase of $707,185 compared to $4,914,101 for the same period of 2001. Total Operating Expenses for the first two quarters of 2002 were $5,034,821, an increase of $662,940 compared to $4,371,881 for 2001. Net Income for the first six months ending June 30, 2002 was $586,465 an increase of $44,245 compared to the $542,220 reported for the first six months ending June 30, 2001.

ITEM 3.

The Partnership is exposed to interest rate rise primarily through its borrowing activities. There is inherent roll over risk for borrowings as they mature and are renewed at current market rates. The extent of this risk is not quantifiable or predictable because of the variability of future interest rates and the Partnership's future financing requirements.

    Note Payable: At June 30, 2002 the Partnership had a note payable outstanding in the amount of $32,106,253. Interest on this note is at a fixed annual rate of 8.24% through June 2007.

    Line-of-Credit: At June 30, 2002 the Partnership owed $195,755 under its line-of-credit agreement, whereby interest is charged at a variable rate of 1.80% in excess of LIBOR.

A 10% adverse change in interest rates of the portion of the Partnership's debt bearing interest at variable rates would result in an increase in interest expense of less than $10,000 annually.

The Partnership does not enter into financial instruments transactions for trading or other speculative purposes or to manage its interest rate exposure.

                                                       
(A) Reports of Form 8-K
There were no reports filed on Form 8-K during
the three months ended June 31, 2002.

                                           Uniprop Manufactured Housing
                                       Communities Income Fund,
                                             A Michigan Limited Partnership

                                               BY:   P.I. Associates Limited Partnership,
                                                 A Michigan Limited Partnership, 
                                    its General Partner
                               
                                 BY:	/s/ Paul M. Zlotoff

                                        Paul M. Zlotoff, General Partner

                                  BY:	/s/ Gloria A. Koster

                                        Gloria A. Koster, Principal Financial Officer