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 March 31, 1998.

A NOTE FROM THE GENERAL PARTNER

Dear Limited Partners:

We are pleased to report that the Partnership's operations during the first quarter of 1998 have enabled us to maintain our distribution target of $60,000 or $2.00 per Unit. Please remember, the Partnership's cash available for distributions has been substantially reduced as a result of the March 25, 1997 financing (which included a $30,000,000 distribution to Limited Partners), and required debt service payments. Please find attached your quarterly distribution checks. For custodial accounts, a credit was posted to your account and a confirmation notice is enclosed.

As shown in the chart below and as indicated in our April 15, 1998 letter attached to the 1997 Annual Report, the aggregate value of the Partnership's four properties has increased 111.3% from the original cash purchase price of $26,400,000. This value is based on the March 1998 appraisals done by Cushman and Wakefield. The April 15, 1998 letter also indicated that the net asset value of each Unit as of March 1998 is now $497. This is an increase of 15.6% over the net asset value appreciation of the communities cannot be known until the communities are sold. Nevertheless, the appraisals do provide an indication of the potential appreciation of the Partnership's properties.

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