UNITED STATES
                    SECURITIES AND EXCHANGE COMMISSION
                         WASHINGTON, D. C.  20549

                                 FORM 10-Q

(X)  QUARTERLY  REPORT  PURSUANT TO SECTION 13 OR 15(D) OF  THE  SECURITIES
     EXCHANGE ACT OF 1934

for quarterly period ended March 31,September 30, 1999

( )          TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE
              SECURITIES EXCHANGE OF 1934

for the transition period from _____________ to _________________________

Commission File No. 33-55254-18

                     AFFORDABLE HOMES OF AMERICA, INC.
          (exact name of Registrant as Specified in its charter)

NEVADA                                            87-043429886-0853511
(State or other jurisdiction of                   (I.R.S. Employer
incorporation or organization)                    Identification Number)

4505 W. Hacienda Ave. Unit I-1
Las Vegas, Nevada                                 89118
(Address of principal executive office)           (Zip Code)

Registrant's telephone number, including area code (702) 579-4888

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.  (X) yes   ( ) no

Indicate  the  number of shares of outstanding of each of the  registrant's
classes of common stock, as of the latest practicable date.

         Class                          Outstanding as of March,September, 1999
- ------------------------------------    --------------------------------
$.001 PAR VALUE CLASS A COMMON STOCK                10,000,00063,138,419
$.001 PAR VALUE CLASS A CONVERTIBLE PREFERRED STOCK    657,144
$.001 PAR VALUE CLASS B CONVERTIBLE PREFERRED STOCK    100,000



                      PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements.

BASIS OF REPRESENTATION

General

                  The accompanying unaudited financial statements have been
prepared  in accordance with the instructions to Form 10-Q and,  therefore,
do  not  include  all information and footnotes necessary  for  a  complete
presentation of financial position, results of operations, cash  flows  and
stockholders   equity  inconformity  with  generally  accepted   accounting
principles.    In  the  opinion of management, all  adjustments  considered
necessary  for  a  fair  presentation of  the  results  of  operations  and
financial  position have been included and all such adjustments  are  of  a
normal recurring nature.  Operating results for the quarter ended March 31,September
30,  1999,  are  not  necessarily indicative of the  results  that  can  be
expected for the year ending December 21, 1998.June 30, 2000.

Item  2.   Management's Discussion and Analysis of Financial Condition  and
Results of Operations.

The  Company has had no operational history and  has  yet  to
engage   in  business  of  any  kind.   All  risks  inherent  in  new   and
inexperienced enterprises are inherent in the Company's business.

              As  of   March 19, 1999, the Company  merged with  Affordable
Homes  of  America, Inc. located in Las Vegas.  During the month of  April,
1999,  the  newly  merged  company believes it will demonstrate  liquidity,
capital resources, credit lines and these will be reported in Form 8-K  and
subsequent  news  releases  to  the general public.   Affordable  Homes of America, Inc. is a builderreal estate development company  in
the  development stage focusing on building homes for low-income and first-
time  home buyers.  There are 5,000,000 families in the United States  that
spend  50%  of  their income on rent.  This does not leave them  sufficient
funds  for  buying  the basic family needs of medicine,  education,  decent
transportation  and  the  like.  Because of Affordable  Homes'  specialized
construction  techniques i.e. in-line framing, foam panelized  construction
and  Z Mix construction, the Company believes it will bring the ability  to
purchase a home within the reach of this 5,000,000 family market and  other
potential home buyers whose financial resources would not otherwise  enable
them to purchase a home.

Affordable  Homes'  has also designed a "World Home"  which  is  a  smaller
building, for marketing abroad.  Preliminary discussions in South  America,
Europe  and  the  Philippines have indicated widespread acceptance  of  the
World Home in those areas.

In  order  to finance the marketing of the World Home and also to implement
Affordable  Homes' low cost housing forincome and first time or low income
families.  It's major building activitieshome buyer program nationwide,
Affordable  Homes  has  made  certain  acquisitions  for  near  term   cash
requirements.

The  first acquisition to datebe developed is the Heartland Homes Estates  real
estate  development project of 136 homes.  Bank financing has been arranged
for  this  project  which  means that when  all  permits  are  received  by
Affordable  Homes, construction can begin.  In addition,  Affordable  Homes
has  applied  for a five year loan in the amount of $15,000,000  from  Euro
Federal NV which is located in Amsterdam.



All  of  the due diligence and closing procedures required by Euro  Federal
Bank  NV have been completed.  The loan is secured by 45,000,000 restricted
shares  of the Company's common stock.  If the loan proceeds for any reason
are  not received by the Company, the 45,000,000 restricted shares  of  the
Company's common stock will be cancelled.  This would reduce the number  of
outstanding  shares  of  common stock of the  Company  from  63,138,419  to
18,138,419.  The loan is also secured by a Financial Guarantee Bond in  the
Seattle-
Tacoma area.  The first certified auditamount  of $15,000,000 issued by American Home Assurance Company, a  member
of  American International Group of Companies.  In any case, when the  loan
is  completely paid back, the aforesaid 45,000,000 common stock shares will
be cancelled.

While the proceeds of the company financial statements
is  being finished atloan are not necessary for the present time and should be ready within the first
two  weeksimplementation  of  April, 1999.
Affordable Homes building program, the receipt of America, Inc .believessuch funds would  greatly
accelerate the program.

There  can  be no assurance that the Company will receive the  proceeds  of
this  loan nor can there be any assurance that the Company will be able  to
complete  construction the of the homes and the Ramada  Inn  on  the  other
properties it will   acquire  assets that will shortly produce revenueacquired.

Item 5.  Other Information

The  Company issued its common stock pursuant to S-8 Registration Statement
dated July 16, 1999 and August 27, 1999 as follows:

              S-8 Registration Statement dated July 16, 1999
                      500,000 shares of common stock
     Date Issued               Name of Recipient       Number of Shares

     July 21, 1999             First Equity Capital
                                Corp                      100,000
     July 21, 1999             Merle Ferguson              50,000
     July 21, 1999             James E. Pratt              50,000
     July 21, 1999             William Fielding &
                               Associates                  300,000
                                TOTAL                      500,000
S-8 Registration Statement dated August 27, 1999 500,000 shares of common stock Date Issued Name of Recipient Number of Shares Sept. 2, 1999 First Equity Capital Corp 250,000 Sept. 2, 1999 Merle Ferguson 100,000 Sept. 2, 1999 James E. Pratt 150,000 TOTAL 500,000
The shares Mr. Pratt received were for legal services rendered and to be rendered and for disbursements necessarily incurred on behalf of the company.Company during the rendering of the aforesaid legal services. Frank C. Calmes is a consultant who performs his services through First Equity Capital Corp. of which he is the President. The aforesaid shares were issued to First Equity Capital Corp. for consulting services performed and to be performed. Merle Ferguson is the President and CEO of Affordable Homes of America, Inc. He takes no salary. The aforesaid shares were issued to Mr. Ferguson in lieu of salary. The shares issued to William E. Fielding & Associates were in payment of a premium on a performance bond issued by American Home Assurance Company to guaranty the payment by Affordable Homes of America, Inc. of a $15,000,000 loan. The loan has the abilitynot yet closed and knowledge to acquire properties at distress prices and will make these properties revenue producing. Based on current economic and regulatory conditions, Management confidant that it will its accomplish its goals. Management believes that it has a formula and knowledge to build low cost homes and become very successful in the marketing, constructionevent it does not close, the 300,000 shares will be returned to the company and sale of low cost homes in the ever increasing market for single family dwellings.cancelled. AFFORDABLE HOMES OF AMERICA, INC. (A Development Stage Company) BALANCE SHEET 3/31/6/30/99 Unaudited ASSETS CURRENT ASSETS Cash in the BankBanks 192,398 Employee Advances 45,600 Other receivables 9,000 Advances 224,140 Investment joint venture 800,000 Land and land development costs 7,676,736 Capitalized interest expense 487,041 Machinery & equipment - at Cost, less accumulated Depreciation of $ -0- and $47,466 as of June 30, 1998 and 1999 respectively 108,285 Patents - at cost, less Accumulated amortization of $-0- and $39,431 as of June 30,1998 and 1999 respectively 354,882 Goodwill 408,197 TOTAL CURRENT ASSETS -0- ----------- -0-$10,306,279
LIABILITIES & EQUITY CURRENT LIABILITIES Accounts Payable -0- --------------42,676 Accrued payable 22,227 Accrued interest payable 206,667 Notes payable 2,217,937 Loans and advances from Related parties 235,287 Land purchase options 3,415,000 TOTAL CURRENT LIABILITIES -0-6,139,844 STOCKHOLDERS' EQUITY (DEFICIT) Convertible preferred stock classes A and B ($.001 par value, 5,000,000 shares of each class authorized, 657,144 and 1000,000 of class A and B issued and outstanding, respectively) 757 Additional paid-in capital 4,374,345 Common Stock $.0001($.001) par value Authorized - 100,000,000100,000 shares Issuedauthorized, 63,138,419 shares issued and outstanding 10,000,000as of June 30, 1999 2,000,000 shares 1.000 Additional paid in capital 1,000issued and outstanding as of June 30, 1998) 17,549 Deficit accumulated during the development state (2,000)Stage (226,216) Total Stockholders' Equity (Deficit) 4,166,435 TOTAL STOCKHOLDERS'LIABILITIES AND STOCKHOLDERS EQUITY -0-$10,306,279
AFFORDABLE HOMES OF AMERICA, INC. (A Development Stage Company)CONSOLIDATED STATEMENTS OF CASH FLOWS CUMULATIVE FROM INCEPTION TO JUNE 30,1999 CASH FLOWS FROM OPERATIONS ACTIVITIVES (226,216) ADJUSTMENT TO RECONCILE NET LOSS FROM DEVELOPMENT STAGE OPERATIONS TO CASH USED IN OPERATING ACTIVITIES Depreciation and amortization 15,317 Stock issued for services 39,031 (Increase) (decrease) in liabilities: Accrued expenses 22,277 Accrued interest payable 20,666 Total Adjustments 97,291 Net cash (used in) operations (128,925) CASH FLOWS FROM FINANCING ACTIVITIES: Equipment acquisitions (57,671) Net cash (used in) Investing activities (57,671) CASH FLOWS FROM FINANCING ACTIVITIES: Advances to and capitalization of Subsidiaries 388,994 Payments of land purchase option (10,000) Net cash from financing activities 378,978 Net Increase in Cash in Banks 192,398 Cash in banks - Beginning of period -0- Cash in banks - End of period 192,398
STATEMENT OF OPERATIONS FROM INCEPTION TO SEPTEMBER 30, 1999 For the three 3/7/86 (DateCumulative month of Inception)from Inception Ended March 31June 30 to 3/31/9/30/99 1998 19971999 1999 Net Sales $0 $0 $0 Cost of Sales 0 0 0 GROSS PROFITAdministrative expense 15,000 211,116 228,116 Cumulative (LOSS) 0 0 0(15,000) (228,116) (211,116) General and Administrative expense 0 0 01,900 1,900 NET INCOME (LOSS) 0 0 0(15,000) (209,216) (226,216) Net income (loss) per weighted Average common shares 0 0 0.01 .04 .06 Weighted average number of Common shares used to compute Net income (loss) 1,000,000 1,000,000 10,000,0002,000,000 5,165,202 3,582,601
AFFORDABLE HOMES OF AMERICA, INC. (A Development Stage Company) STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY Common Stock AdditionalAdditiona Pas Value $.001 l Retained Paid in RetainedDeficit Capital Deficit Shares Amount Balances at 3/7/86 (Date of Inception) 0 0 0 0 Issuance of common stock (restricted) at $.02 per share at 4/21/86 1,000,000 1,000 1,000 Net loss for period (1,950) Balances at 12/31/86 1,000,000 1,000 1,000 (1,950) Net loss for year (10) Balances at 12/31/87 1,000,000 1,000 1,000 (1,960) Net loss for year (10) Balances at 12/31/88 1,000,000 1,000 1,000 (1,970) Net loss for year (10) Balances at 12/31/89 1,000,000 1,000 1,000 (1,980) Net loss for year (10) Balances at 12/31/90 1,000,000 1,000 1,000 (1,990) Net loss for year (10) Balances at 12/31/91 1,000,000 1,000 1,000 (2,000) Net loss for year 0 Balances at 12/31/92 1,000,000 1,000 1,000 (2,000) Net loss for year 0 Balances at 12/31/93 1,000,000 1,000 1,000 (2,000) Net loss for year 0 Balances at 12/31/94 1,000,000 1,000 1,000 (2,000) Net loss for year 0 Balances at 12/31/95 1,000,000 1,000 1,000 (2,000) Net loss for year 0 Balances at 12/31/96 1,000,000 1,000 1,000 (2,000) Net loss for year 0 Balances at 12/31/97 1,000,000 1,000 1,000 (2,000) Net loss for year 0 Balances at 12/31/98 1,000,000 1,000 1,000 (2,000) Net loss for year 0 Balances at 12/31/98 1,000,000 1,000 1,000 (2,000) Net loss for year 0 Balances at 12/31/9/30/99 1,000,000 1,000 1,000 (2,000)63,138419 63,138 4,374,345 (209,216) Net loss for year 0
AFFORDABLE HOMES OF AMERICA, INC. (A Development State Company) STATEMENT OF CASH FLOWS For the 3/7/86 Three months (Date of ended March, Inception) 31 to 1998 1999 3/31/99 Unaudited Unaudited Unaudited OPERATING ACTIVITIES $0 $0 $2,000 Net Income (loss) Adjustments to reconcile Net income (loss) to cash Used by operating activities: Amortization 0 0 50 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 0 0 1,905 INVESTING ACTIVITIES Organization Costs 0 0 (50) NET CASH USED BY INVESTING ACTIVITIES 0 0 (50) FINANCING ACTIVITIES Proceeds from sale of Common Stock 0 0 2,000 NET CASH PROVIDED BY FINANCING ACTIVITIES 0 0 2,000 INCREASE IN CASH AND CASH EQUIVALENTS 0 0 0 Cash and cash equivalents At beginning of the year 0 0 0 CASH AND CASH EQUIVALENTS AT END OF PERIOD 0 0 0
SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized, AFFORDABLE HOMES OF AMERICA, INC. Dated: 12 April,December 21, 1999 /s/ Merle Ferguson ----------------------------------------------------------- Merle Ferguson, President, CEO and Director Dated: 12 April,December 21, 1999 /s/ Susan Donohue --------------------------- Susan Donohue,James E. Pratt ------------------------------- James E. Pratt, Secretary