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                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549


                                 SCHEDULE 13G
                   Under the Securities Exchange Act of 1934




                      Manufactured Home Communities, Inc.
- ------------------------------------------------------------------------------
                               (Name of Issuer)



                         Common Stock, $.01 par value
- ------------------------------------------------------------------------------
                        (Title of Class of Securities)




                                   564682102
                  --------------------------------------------
                                (CUSIP Number)




                              Page 1 of 10 pages


- -----------------------                                 
  CUSIP NO. 564682102                   13G             
- -----------------------                                 
 
- ------------------------------------------------------------------------------
      NAME OF REPORTING PERSON
 1    I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

      Goldman, Sachs & Co.   

- ------------------------------------------------------------------------------
      CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
 2                                                              (a) [_]
                                                                (b) [_]
                                                 
- ------------------------------------------------------------------------------
      SEC USE ONLY
 3
 

- ------------------------------------------------------------------------------
      CITIZENSHIP OR PLACE OF ORGANIZATION
 4    
      New York  

- ------------------------------------------------------------------------------
                          SOLE VOTING POWER
                     5   
     NUMBER OF            0 
 
      SHARES       -----------------------------------------------------------
                          SHARED VOTING POWER
   BENEFICIALLY      6
                          856,804  
     OWNED BY
                   -----------------------------------------------------------
       EACH               SOLE DISPOSITIVE POWER
                     7    
    REPORTING             0
 
      PERSON       -----------------------------------------------------------
                          SHARED DISPOSITIVE POWER
       WITH          8
                          1,745,604  
- ------------------------------------------------------------------------------
      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 9  
      1,745,604  

- ------------------------------------------------------------------------------
      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
10                  
                                                                    [_]
 
- ------------------------------------------------------------------------------
      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
11    
      7.1%  

- ------------------------------------------------------------------------------
      TYPE OF REPORTING PERSON*
12
      BD-PN-IA

- ------------------------------------------------------------------------------

                     *SEE INSTRUCTIONS BEFORE FILLING OUT!


                               Page 2 of 10 pages


 
- -----------------------                                  
  CUSIP NO. 564682102                   13G                
- -----------------------                                 
 
- ------------------------------------------------------------------------------
      NAME OF REPORTING PERSON
 1    I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

      The Goldman Sachs Group, L.P.

- ------------------------------------------------------------------------------
      CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
 2                                                              (a) [_]
                                                                (b) [_]
                                                 
- ------------------------------------------------------------------------------
      SEC USE ONLY
 3
 

- ------------------------------------------------------------------------------
      CITIZENSHIP OR PLACE OF ORGANIZATION
 4    
      Delaware

- ------------------------------------------------------------------------------
                          SOLE VOTING POWER
                     5   
     NUMBER OF            0  
 
      SHARES       -----------------------------------------------------------
                          SHARED VOTING POWER
   BENEFICIALLY      6
                          856,804
     OWNED BY
                   -----------------------------------------------------------
       EACH               SOLE DISPOSITIVE POWER
                     7    
    REPORTING             0
 
      PERSON       -----------------------------------------------------------
                          SHARED DISPOSITIVE POWER
       WITH          8
                          1,745,604
- ------------------------------------------------------------------------------
      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 9  
      1,745,604

- ------------------------------------------------------------------------------
      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
10                  
                                                                    [_]
 
- ------------------------------------------------------------------------------
      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
11    
      7.1%

- ------------------------------------------------------------------------------
      TYPE OF REPORTING PERSON*
12
      HC-PN

- ------------------------------------------------------------------------------

                     *SEE INSTRUCTIONS BEFORE FILLING OUT!


                               Page 3 of 10 pages


 
Item 1(a).         Name of Issuer:
                   Manufactured Home Communities, Inc.

Item 1(b).         Address of Issuer's Principal Executive Offices:
                   Two North Riverside Plaza, Suite 800
                   Chicago, IL   60606

Item 2(a).         Name of Persons Filing:
                   Goldman, Sachs & Co. and The Goldman Sachs Group, L.P.

Item 2(b).         Address of Principal Business Office or, if None, Residence:
                   85 Broad Street
                   New York, NY  10004

Item 2(c).         Citizenship:
                   Goldman, Sachs & Co. - New York
                   The Goldman Sachs Group, L.P. - Delaware

Item 2(d).         Title and Class of Securities:
                   Common Stock, $.01 par value

Item 2(e).         CUSIP Number:
                   564682102

Item 3.            If this statement is filed pursuant to Rules 13d-1(b), or
                   13d-2(b), check whether the person filing is a :

          (a).X    Broker or dealer registered under Section 15 of the
                   Act, Goldman, Sachs & Co.

          (b).     Bank as defined in Section 3(a)(6) of the Act, 

          (c).     Insurance Company as defined in Section 3(a)(19) of the Act,

          (d).     Investment Company registered under Section 8 of the
                   Investment Company Act,

          (e).X    Investment Adviser registered under Section 203 of
                   the Investment Advisers Act of 1940, 
                          Goldman, Sachs & Co.

          (f).     Employee Benefit Plan, Pension Fund which is subject to the
                   provisions of the Employee Retirement Income Security Act of
                   1974 or Endowment Fund; see 13d-1(b)(1)(ii)(F),


                              Page 4 of 10 pages

 
          (g).X    Parent Holding Company, in accordance with Rule 13d-
                   1(b)(ii)(G); see Item 7,
                             The Goldman Sachs Group, L.P.

          (h).     Group, in accordance with Rule 13d-1(b)(ii)(H).


Item 4.            Ownership.*

          (a).     Amount beneficially owned:
                   See the response(s) to Item 9 on the attached cover page(s).

          (b).     Percent of Class:
                   See the response(s) to Item 11 on the attached cover page(s).

          (c).     Number of shares as to which such person has:

                   (i).      Sole power to vote or to direct the vote:
                                       See the response(s) to Item 5 on the
                                       attached cover page(s).

                   (ii).     Shared power to vote or to direct the vote:
                                       See the response(s) to Item 6 on the
                                       attached cover page(s).

                   (iii).    Sole power to dispose or to direct the disposition
                             of:
                                       See the response(s) to Item 7 on the
                                       attached cover page(s).

                   (iv).     Shared power to dispose or to direct the
                             disposition of:

                                       See the response(s) to Item 8 on the
                                       attached cover page(s).

Item 5.            Ownership of Five Percent or Less of a Class.
                            Not Applicable

Item 6.            Ownership of More than Five Percent on Behalf of Another
                   Person.
                             Not Applicable

Item 7.            Identification and Classification of the Subsidiary Which
                   Acquired the Security Being Reported on by the Parent Holding
                   Company.
                             See Exhibit (99.2)





- --------
*    The Goldman Sachs Group, L.P. ("GS Group") and Goldman, Sachs & Co.
("Goldman Sachs") each disclaim beneficial ownership of the Common Stock
beneficially owned by (i) managed accounts and (ii) certain investment limited
partnerships, of which a subsidiary of GS Group or Goldman Sachs is the general
partner or managing general partner, to the extent partnership interests in such
partnerships are held by persons other than GS Group, Goldman Sachs or their
affiliates.

                              Page 5 of 10 pages

 
Item 8.            Identification and Classification of Members of the Group.
                             Not Applicable

Item 9.            Notice of Dissolution of Group.
                             Not Applicable

Item 10.           Certification.

                   By signing below I certify that, to the best of my knowledge
                   and belief, the securities referred to above were acquired in
                   the ordinary course of business and were not acquired for the
                   purpose of and do not have the effect of changing or
                   influencing the control of the issuer of such securities and
                   were not acquired in connection with or as a participant in
                   any transaction having such purpose or effect.


                              Page 6 of 10 pages

 
                                   SIGNATURE

                After reasonable inquiry and to the best of my knowledge and
                belief, I certify that the information set forth in this
                statement is true, complete and correct.


Date:  February 14, 1998


                             THE GOLDMAN SACHS GROUP, L.P.


                             By:    /s/ Hans L. Reich
                                  ------------------------------------------
                             Name:  Hans L. Reich
                             Title: Attorney-in-fact



                             GOLDMAN, SACHS & CO.


                             By:    /s/ Hans L. Reich
                                  ------------------------------------------
                             Name:  Hans L. Reich
                             Title: Attorney-in-fact


                              Page 7 of 10 pages

 
                               INDEX TO EXHIBITS




Exhibit No.               Exhibit
- ----------                -------

     99.1                 Joint Filing Agreement, dated February 14, 1998,
                          between The Goldman Sachs Group, L.P. and Goldman,
                          Sachs & Co.

     99.2                 Item 7 Information



                              Page 8 of 10 pages

 
                                                                  EXHIBIT (99.1)



                            JOINT FILING AGREEMENT



     In accordance with Rule 13d-1(f) promulgated under the Securities Exchange
Act of 1934, the undersigned agree to the joint filing of a Statement on
Schedule 13G (including any and all amendments thereto) with respect to the
Common Stock, $.01 par value of Manufactured Home Communities, Inc., and further
agree to the filing of this agreement as an Exhibit thereto. In addition, each
party to this Agreement expressly authorizes each other party to this Agreement
to file on its behalf any and all amendments to such Statement on Schedule 13G.



Date:  February 14, 1998


                              THE GOLDMAN SACHS GROUP, L.P.


                              By:    /s/ Hans L. Reich
                                   -----------------------------------------
                              Name:  Hans L. Reich
                              Title: Attorney-in-fact



                              GOLDMAN, SACHS & CO.


                              By:    /s/ Hans L. Reich
                                   -----------------------------------------
                              Name:  Hans L. Reich
                              Title: Attorney-in-fact


                              Page 9 of 10 pages

 
                                                                  EXHIBIT (99.2)



                              ITEM 7 INFORMATION



     Goldman, Sachs & Co. is a broker or dealer registered under Section 15 of
the Act and an investment adviser registered under Section 203 of the Investment
Advisers Act of 1940.


                              Page 10 of 10 pages