SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of
1934

FOR QUARTER ENDED JUNE 30, 1995

COMMISSION FILE NUMBER 2-60561

REAL ESTATE ASSOCIATES LIMITED

A CALIFORNIA LIMITED PARTNERSHIP

I.R.S. EMPLOYER IDENTIFICATION NO. 95-3187912

9090 Wilshire Blvd., Suite 201,
Beverly Hills, Calif. 90211

Registrant's Telephone Number,
Including Area Code (310) 278-2191

Securities Registered Pursuant to
Section 12(b) or 12(g) of the Act

NONE

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed with the Commission by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding twelve 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.

Yes X No
----- -----
2

REAL ESTATE ASSOCIATES LIMITED
(a California limited partnership)

INDEX TO FORM 10-Q

FOR THE QUARTER ENDED JUNE 30, 1995

PART I. FINANCIAL INFORMATION (UNAUDITED)

Item 1. Financial Statements

Balance Sheets, June 30, 1995 and December 31, 1994 . . . . . . . . . . . . . . . . 1

Statements of Operations,
Six and Three Months Ended June 30, 1995 and 1994 . . . . . . . . . . . . . . 2

Statement of Partner's Equity (Deficiency),
Six Months Ended June 30, 1995 . . . . . . . . . . . . . . . . . . . . . . . . 3

Statements of Cash Flows
Six Months Ended June 30, 1995 and 1994 . . . . . . . . . . . . . . . . . . . 4

Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Item 2. Management's Analysis and Discussion of Financial
Condition and Results of Operations . . . . . . . . . . . . . . . . . 8

PART II. OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . . . . . . 9

Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

REAL ESTATE ASSOCIATES LIMITED
(A CALIFORNIA LIMITED PARTNERSHIP)

BALANCE SHEETS

JUNE 30, 1995 AND DECEMBER 31, 1994

ASSETS

1995 1994
(Unaudited) (Audited)
----------- ----------

INVESTMENTS IN AND ADVANCES TO LIMITED
PARTNERSHIPS $1,959,340 $1,843,340

CASH AND CASH EQUIVALENTS 731,564 406,711

SHORT-TERM INVESTMENTS 125,000 125,000

OTHER RECEIVABLES FROM LIMITED PARTNERSHIPS 138,183 116,625
---------- ----------

$2,954,087 $2,491,676
========== ==========

LIABILITIES AND PARTNERS' EQUITY

LIABILITIES:

ACCOUNTS PAYABLE $ 7,653 $ 8,287

ACCRUED FEES DUE GENERAL PARTNER 1,485,667 1,396,997

DEFERRED DISTRIBUTION 489,039 672,627
---------- ----------

1,982,359 2,077,911

PARTNERS' EQUITY 971,728 413,765
---------- ----------

$2,954,087 $2,491,676
========== ==========

The accompanying notes are an integral part of these financial statements.

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REAL ESTATE ASSOCIATES LIMITED
(A CALIFORNIA LIMITED PARTNERSHIP)

STATEMENTS OF OPERATIONS

SIX AND THREE MONTHS ENDED JUNE 30, 1995 AND 1994

Six months Three months Six months Three months
ended ended ended ended
June 30, 1995 June 30, 1995 June 30, 1994 June 30, 1994
------------- ------------- ------------- -------------

INTEREST INCOME $ 9,879 $ 5,471 $ 10,367 $ 7,915
--------- --------- --------- ---------

OPERATING EXPENSES:
General and administrative 27,160 12,678 29,448 12,839
Legal and accounting 27,611 1,813 25,158 1,860
Management fees-general partner 203,670 101,835 203,670 101,835
--------- --------- --------- ---------

258,441 116,326 258,276 116,534
--------- --------- --------- ---------

LOSS FROM OPERATIONS (248,562) (110,855) (247,909) (108,619)

DISTRIBUTIONS RECOGNIZED
AS INCOME 690,525 635,109 862,555 813,947

EQUITY IN INCOME AND
AMORTIZATION OF ACQUISITION
COSTS OF LIMITED PARTNERSHIPS 116,000 58,000 198,000 99,000
--------- --------- --------- ---------

NET INCOME $ 557,963 $ 582,254 $ 812,646 $ 804,328
========= ========= ========= =========

The accompanying notes are an integral part of these financial statements.

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5

REAL ESTATE ASSOCIATES LIMITED
(A CALIFORNIA LIMITED PARTNERSHIP)

STATEMENT OF PARTNERS' EQUITY (DEFICIENCY)

SIX MONTHS ENDED JUNE 30, 1995

General Limited
Partner Partners Total
---------- ----------- ----------

PARTNERSHIP INTERESTS,
June 30, 1995 16,505
==========

EQUITY (DEFICIENCY),
January 1, 1995 $(122,932) $ 536,697 $ 413,765

Net income for the six months
ended June 30, 1995 5,580 552,383 557,963
--------- ---------- ---------

EQUITY (DEFICIENCY),
June 30, 1995 $(117,352) $1,089,080 $ 971,728
========= ========== =========

The accompanying notes are an integral part of these financial statements.

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REAL ESTATE ASSOCIATES LIMITED
(A CALIFORNIA LIMITED PARTNERSHIP)

STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 1995 AND 1994

1995 1994
--------- ---------

CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 557,963 $ 812,646
Adjustments to reconcile net income to net cash
provided by operating activities:
Equity in income of limited partnerships (118,000) (200,000)
Amortization of acquisition costs 2,000 2,000
Increase in other receivables from limited partnerships (21,558) -
Increase (decrease) in -
Accounts payable (634) (397)
Deferred distribution (183,588)
Accrued fees due general partner 88,670 (446,330)
--------- ---------

Net cash provided by operating activities 324,853 167,919

CASH FLOWS FROM INVESTING ACTIVITIES:
Distributions from limited partnership
recognized as return of capital - 9,481
--------- ---------

NET INCREASE IN CASH AND CASH EQUIVALENTS 324,853 177,400

CASH AND CASH EQUIVALENTS, at beginning of period 406,711 571,754
--------- ---------

CASH AND CASH EQUIVALENTS, at end of period $ 731,564 $ 749,154
========= =========

The accompanying notes are an integral part of these financial statements.

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REAL ESTATE ASSOCIATES LIMITED
(A CALIFORNIA LIMITED PARTNERSHIP)

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 1995

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

GENERAL

The information contained in the following notes to the financial
statements is condensed from that which would appear in the annual
audited financial statements; accordingly, the financial statements
included herein should be reviewed in conjunction with the financial
statements and related notes thereto contained in the annual report
for the year ended December 31, 1994 prepared by Real Estate
Associates Limited (the "Partnership.") Accounting measurements at
interim dates inherently involve greater reliance on estimates than at
year end. The results of operations for the interim period presented
are not necessarily indicative of the results for the entire year.

In the opinion of the Partnership, the accompanying unaudited
financial statements contain all adjustments (consisting primarily of
normal recurring accruals) neccessary to present fairly the financial
position as of June 30, 1995, and the results of operations and
changes in financial position for the six months then ended.

The general partners have a 1 percent interest in profits and losses
of the Partnership. The limited partners have the remaining 99
percent interest which is allocated in proportion to their respective
individual investments. National Partnership Investments Corp.
(NAPICO) is the corporate general partner of the Partnership.

METHOD OF ACCOUNTING FOR INVESTMENT IN LIMITED PARTNERSHIPS

The investment in limited partnerships is accounted for on the equity
method. Acquisition, selection fees and other costs related to the
acquisition of the projects have been capitalized to the investment
account.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of cash and bank certificates of
deposit with an original maturity of three months or less.

SHORT-TERM INVESTMENTS

Short-term investments consist of bank certificates of deposit with
original maturities ranging from more than three months to twelve
months. The fair value of these securities, which have been
classified as held for sale, approximates their carrying value.

INCOME TAXES

No provision has been made for income taxes in the accompanying
financial statements since such taxes, if any, are the liability of
the individual partners.

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REAL ESTATE ASSOCIATES LIMITED
(A CALIFORNIA LIMITED PARTNERSHIP)

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

JUNE 30, 1995

NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS

The Partnership has limited partnership interests in 18 limited
partnerships. The limited partnerships own residential rental
projects consisting of 1,969 apartment units. The mortgage loans of
these projects are insured by various governmental agencies.

The Partnership, as a limited partner, is entitled from 50 percent to
99 percent of the profits and losses in the limited partnerships.

Equity in losses of limited partnerships are recognized in the
financial statements until the limited partnership investment account
is reduced to a zero balance. Losses incurred after the limited
partnership investment account is reduced to zero are not recognized.

Distributions from the limited partnerships are accounted for as a
return of capital until the investment balance is reduced to zero.
Subsequent distributions received are recognized as income.

The following is a summary of the investment in limited partnerships
as of June 30, 1995:

Balance, beginning of period $1,843,340
Amortization acquisition costs (2,000)
Cash distribution recognized as return of capital -
Equity in income of limited partnerships 118,000
----------

Balance, end of period $1,959,340
==========

In 1994, the Partnership received a cash distribution from a limited
partnership (Van Nuys Associates) in the amount of $672,626. The
distribution was in part the result of a settlement for rent subsidy
payments from prior periods awarded to a group of property owners
(including Van Nuys Associates) who participated in a lawsuit against
HUD. At this time, HUD has demanded the return of a substantial
portion of these funds based on the 9th Circuit Court's decision to
overturn the injunctions granted against HUD. Van Nuys Associates
engaged Alexander Consultants Inc. ("ACI") to review the demand by HUD
and perform an independent accounting of the amounts due pursuant to
the 9th Circuit Court's decision. Based on ACI's findings, HUD
agreed that the local partnership would be required to pay HUD only
$489,039, over the remaining seven year term of the Housing Assistance
Payments Contract.

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REAL ESTATE ASSOCIATES LIMITED
(A CALIFORNIA LIMITED PARTNERSHIP)

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

JUNE 30, 1995

NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS (CONTINUED):

The following are unaudited combined estimated statements of
operations for the limited partnerships in which the Partnership has
investments:

Six months Three months Six months Three months
ended ended ended ended
June 30, 1995 June 30, 1995 June 30, 1994 June 30, 1994
------------- ------------- ------------- -------------

INCOME
Rental and other $8,390,000 $4,195,000 $8,448,000 $4,224,000
---------- ---------- ---------- ----------
EXPENSES
Depreciation 1,362,000 681,000 1,372,000 686,000
Interest 2,504,000 1,252,000 2,650,000 1,325,000
Operating 4,254,000 2,127,000 4,076,000 2,038,000
---------- ---------- ---------- ----------

8,120,000 4,060,000 8,098,000 4,049,000
---------- ---------- ---------- ----------

NET INCOME $ 270,000 $ 135,000 $ 350,000 $ 175,000
========== ========== ========== ==========

NAPICO, or one of its affiliates, is the general partner and property
management agent for certain of the limited partnerships included
above.

NOTE 3 - ACCRUED FEES AND EXPENSES DUE TO GENERAL PARTNER

Under the terms of the Restated Certificate and Agreement of Limited
Partnership, the Partnership is obligated to NAPICO for an annual
management fee equal to 1/2 of 1 percent of the original invested
assets of the limited partnership. Invested assets are defined as the
costs of acquiring project interests, including the proportionate
amount of the mortgage loans related to the Partnerships interests in
the capital accounts of the respective partnerships. The management
fee incurred for the six-month periods presented was $203,670.

As of June 30, 1995, the fees and expenses due NAPICO exceeded the
Partnership's cash. The general partner, during the forthcoming year,
will not demand payment of amounts due in excess of such cash or such
that the Partnership would not have sufficient operating cash.

The Partnership reimburses NAPICO for certain expenses. In 1995, the
reimbursement to NAPICO of $10,309 has been paid and included in the
Partnership's operating expenses.

NOTE 4 - CONTINGENCIES

The corporate general partner of the Partnership is a plaintiff in
various lawsuits and has also been named a defendant in other lawsuits
arising from transactions in the ordinary course of business. In the
opinion of management and the corporate general partner, the claims
will not result in any material liability to the Partnership.

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REAL ESTATE ASSOCIATES LIMITED
(A CALIFORNIA LIMITED PARTNERSHIP)

JUNE 30, 1995

ITEM 2. MANAGEMENT'S ANALYSIS AND DISCUSSION OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

LIQUIDITY AND CAPITAL RESOURCES

The Partnership's primary sources of funds include interest income
earned from investing available cash and distributions from limited
partnerships in which the Partnership has invested. It is not
expected that any of the local limited partnerships in which the
Partnership has invested will generate cash flow sufficient to provide
for distributions to limited partners in any material amount.

RESULTS OF OPERATIONS

Partnership revenues consist primarily of interest income earned on
certificates of deposit and other temporary investment of funds not
required for investment in local partnerships.

Operating expenses consist primarily of recurring general and
administrative expenses and professional fees for services rendered to
the Partnership. In addition, an annual Partnership management fee in
an amount equal to .5 percent of investment assets is payable to the
corporate general partner.

The Partnership accounts for its investments in the local limited
partnerships on the equity method, thereby adjusting its investment
balance by its proportionate share of the income or loss of the local
limited partnerships. The equity in income of limited partnerships is
received from one investee limited partnership. All other investee
limited partnerships have reduced their investment balances to zero
and as a result thereof, the Partnership does not recognize equity in
losses from those investments.

Except for certificates of deposit and money market funds, the
Partnership's investments are entirely interests in other limited
partnerships owning government assisted projects. Available cash is
invested in these funds earning interest income as reflected in the
statements of operations. These investments can be converted to cash
to meet obligations as they arise.

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REAL ESTATE ASSOCIATES LIMITED
(A CALIFORNIA LIMITED PARTNERSHIP)

JUNE 30, 1995

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The corporate general partner is a plaintiff or defandant in several lawsuits.
None of these are related to the Partnership.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) No exhibits are required per the provision of item 7 of
regulation S-K.

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REAL ESTATE ASSOCIATES LIMITED
(A CALIFORNIA LIMITED PARTNERSHIP)

JUNE 30, 1995

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

REAL ESTATE ASSOCIATES LIMITED
(a California limited partnership)

By: National Partnership Investments Corp.
General Partner

Date:____________________________________

By: ______________________________________
Bruce Nelson
President

Date:_____________________________________

By:________________________________________
Shawn Horwitz
Executive Vice President and
Chief Financial Officer