LEASE AMENDMENT

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                                                       Exhibit 10(b)


                                LEASE AMENDMENT



         THIS LEASE AMENDMENT (the "Amendment") is made as of the 5th day of
September, 1995 by and between XXXXXXXXX VILLAGE ASSOCIATES ("Landlord") AND
Interstate General Company L.P. ("Tenant").

                                  WITNESSETH:

         WHEREAS, Landlord and Tenant entered into a lease for certain office
space in Xxxxxxxxx Xxxxxxx Xxxxxx, Xx. Xxxxxxx, Xxxxxxxx dated August 25, 1995
(the "Lease"); and

         WHEREAS, Landlord and Tenant wish to amend the Lease and revise
paragraph 24 of the Lease Agreement.

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants and agreements contained herein, the parties agree as follows:

         1.  The following shall be added to xxxxx. 24 of the Lease Agreement:

         In addition, in the event of termination by Landlord as aforesaid, if
Landlord at its sole option so elects, Tenant shall pay to Landlord, on demand,
as liquidated, agreed final damages, the following:

         a)  The difference between: (i) the rent and all other charges which
would have been payable from the date of such demand to the date when the Lease
would have expired if it had not been terminated as aforesaid, and (ii) the
fair rental value of the demised premises for the same period, with said
difference being discounted at the rate of six percent (6%) per annum to
present worth, and

         b)  commissions, advertising, cost of repairs and other expenses
incidental to the reletting of the demised premises.

         For purposes of the foregoing sentence, the term rent shall include
fixed minimum rental, Percentage Rent, additional rent, and all other charges
and pass-throughs provided herein. For the purpose of computing Percentage Rent
after a Default, the monthly percentage rent shall be deemed to be equal to the
average monthly Percentage Rent paid hereunder for the twenty four (24) months
during the term preceding such termination(or for the entire preceding portion
of the term if less than 24 months).

         2.  Except as specifically modified by this Amendment, the terms and
provisions of the Lease will continue in full force and effect.










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         IN WITNESS WHEREOF, the undersigned has duly executed this Amendment,
or caused this Amendment to be executed by their duly authorized
representatives:


WITNESS:


/s/ Xxxx Xxxxxx                         By:  /s/ Xxxxx Xxxxxxx Xxxxxx
-----------------------------                --------------------------------
                                             Xxxxxxxxx Village Associates
                                             Interstate Business Corporation
                                             General Partner


/s/ Xxxx Xxxxxx                         By:  /s/ Xxxx X. Xxxx
-----------------------------                --------------------------------
                                             TENANT - Interstate General
                                             Company L.P.



State of Maryland
          SS:
County of Xxxxxxx

         Before me, a Notary Public in and for the jurisdiction aforesaid,
personally appeared this date Xxxxx Xxxxxxx Xxxxxx.  Personally well known to
me to be the President of Interstate Business Corporation a Delaware
corporation, who being by me first duly sworn, did acknowledge that he, as the
duly authorized officer of said Corporation, executed the foregoing and annexed
instrument, in the name and on behalf of the Corporation, as its free act and
deed for the uses and purposes contained herein.

         WITNESS my hand and official seal this 6th day of September, 1995.


/s/ Xxxxxx Xxxxx                   My Commission Expires:  February 2, 1997
-----------------------------                              ------------------
Notary Public