This report accompanies the quarterly distribution to the Limited Partners of Uniprop Manufactured Housing Communities Income Fund ("UMHCIF" or the "Partnership") for the period ended December. 31, 1997.

A NOTE FROM THE GENERAL PARTNER

Dear Limited Partners:

We are pleased to report that 1997 was the most successful year in the Partnership's eleven year history. As a result of completing the $33,500,00 Nomura Financing in March 1997, the Partnership made a special distribution to the Limited Partners of $30,000,000 or $1000 for every original per Unit capital contribution of $1,000. Including the special distribution, to date the Limited Partners have received $62,784,860, or $2,093 per Unit.

Although the Partnership's accounting firm, BDO Seidman, has not yet completed the 1997 year-end audit, the fourth quarter operations generated enough cash to enable the Partnership to distribute $60,000 to the Limited Partners, or $2.00 per Unit held.

As in prior years, an independent national appraisal firm, Cushman & Wakefield, will appraise the value of the Partnership's four communities as of March 1998. We will report the appraised value of the four communities, as well as the net asset value of your Units in the 1997 annual report, which you should receive on or around April 15, 1998.

The 1997 year-end audit should be completed by February 15, 1998. Limited Partners should receive by March 15, a Form K-1 from which they will use information to be included in their 1997 Federal income tax return.

As always, we welcome your comments and questions. Please feel free to write us or give us a call at 1-800-541-7767, if there is anything we can do to help you with your investment in UMHCIF.

Sincerely,
P.I. Associates Limited Partnership
The General Partner

Paul M. Zlotoff
its general partner