FORM 10-QSB--QUARTERLY OR TRANSITIONAL REPORT UNDER SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                        Quarterly or Transitional Report

                      U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   Form 10-QSB

(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

                   For the quarterly period ended March 31, 2000


[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934


              For the transition period from __________ to __________

                         Commission file number 0-10884

                              SHELTER PROPERTIES IV

         (Exact name of small business issuer as specified in its charter)



         South Carolina                                         57-0721760
(State or other jurisdiction of                              (I.R.S. Employer
 incorporation or organization)                             Identification No.)

                          55 Beattie Place, P.O. Box 1089
                         Greenville, South Carolina 29602
                      (Address of principal executive offices)

                                 (864) 239-1000

                           (Issuer's telephone number)

Check  whether the issuer (1) 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. Yes X No__

                         PART I - FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS

a)

                              SHELTER PROPERTIES IV

                           CONSOLIDATED BALANCE SHEET

                                   (Unaudited)

                        (in thousands, except per unit data)

                                 March 31, 2000

Assets

   Cash and cash equivalents                                         $  2,791
   Receivables and deposits                                               438
   Restricted escrows                                                   1,343
   Other assets                                                           619
   Investment properties:
      Land                                             $ 3,442
      Buildings and related personal property            59,628
                                                         63,070

      Less accumulated depreciation                     (37,219)       25,851
                                                                     $ 31,042

Liabilities and Partners' (Deficit) Capital
Liabilities

   Accounts payable                                                   $    78
   Tenant security deposit liabilities                                    252
   Accrued property taxes                                                 244
   Other liabilities                                                      376
   Mortgage notes payable                                              22,578

Partners' (Deficit) Capital

   General partners                                     $ (10)
   Limited partners (49,995 units issued and
      outstanding)                                        7,524         7,514
                                                                     $ 31,042

            See Accompanying Notes to Consolidated Financial Statements


<PAGE>




b)

                              SHELTER PROPERTIES IV

                      CONSOLIDATED STATEMENTS OF OPERATIONS

                                   (Unaudited)

                          (in thousands, except unit data)



                                                   Three Months Ended
                                                        March 31,
                                                    2000        1999
Revenues:
   Rental income                                   $2,840      $2,789
   Other income                                       152         101
      Total revenues                                2,992       2,890

Expenses:
   Operating                                        1,268       1,148
   General and administrative                          86          73
   Depreciation                                       505         497
   Interest                                           515         529
   Property taxes                                     207         198
      Total expenses                                2,581       2,445

Net income                                          $ 411       $ 445

Net income allocated to general partners (1%)        $ 4         $ 4

Net income allocated to limited partners (99%)        407         441

                                                    $ 411       $ 445

Net income per limited partnership unit            $ 8.14      $ 8.82

            See Accompanying Notes to Consolidated Financial Statements


<PAGE>


c)

                              SHELTER PROPERTIES IV

          CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' (DEFICIT) CAPITAL
                                   (Unaudited)

                          (in thousands, except unit data)


<TABLE>
<CAPTION>

                                      Limited
                                     Partnership     General      Limited
                                        Units        Partners    Partners     Total

<S>                                     <C>            <C>        <C>        <C>
Original capital contributions          50,000         $ 2        $50,000    $50,002

Partners' (deficit) capital at
   December 31, 1999                    49,995        $ (14)      $ 7,117    $ 7,103

Net income for the three months
   ended March 31, 2000                     --             4          407        411

Partners' (deficit) capital at
   March 31, 2000                       49,995        $ (10)      $ 7,524    $ 7,514

            See Accompanying Notes to Consolidated Financial Statements
</TABLE>


<PAGE>


d)

                              SHELTER PROPERTIES IV

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                   (Unaudited)

                                  (in thousands)
<TABLE>
<CAPTION>

                                                              Three Months Ended
                                                                   March 31,
                                                               2000         1999
Cash flows from operating activities:

<S>                                                          <C>          <C>
   Net income                                                $   411      $   445
   Adjustments to reconcile net income to net
     cash provided by operating activities:
        Depreciation                                             505          497
        Amortization of discounts and loan costs                  71           69
        Change in accounts:
            Receivables and deposits                             288           64
            Other assets                                        (130)         (99)
            Accounts payable                                    (126)         (84)
            Tenant security deposit liabilities                   20            6
            Accrued property taxes                               (97)         (84)
            Other liabilities                                     89           44

               Net cash provided by operating activities       1,031          858

Cash flows from investing activities:

   Property improvements and replacements                       (207)        (205)
   Net (deposits to) withdrawals from restricted escrows        (442)          97

               Net cash used in investing activities            (649)        (108)

Cash flows from financing activities:

   Partners' distributions                                    (1,000)          --
   Payments on mortgage notes payable                           (221)        (203)

               Net cash used in financing activities          (1,221)        (203)

Net (decrease) increase in cash and cash equivalents            (839)         547
Cash and cash equivalents at beginning of period               3,630        1,273
Cash and cash equivalents at end of period                   $ 2,791      $ 1,820

Supplemental disclosure of cash flow information:

   Cash paid for interest                                    $   444      $   461

            See Accompanying Notes to Consolidated Financial Statements
</TABLE>


<PAGE>




e)

                              SHELTER PROPERTIES IV

                     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

Note A - Basis of Presentation

The  accompanying   unaudited   consolidated  financial  statements  of  Shelter
Properties  IV  (the  "Partnership"  or  "Registrant")  have  been  prepared  in
accordance with generally accepted  accounting  principles for interim financial
information  and  with  the  instructions  to Form  10-QSB  and  Item 310 (b) of
Regulation  S-B.  Accordingly,  they do not include all of the  information  and
footnotes  required by generally  accepted  accounting  principles  for complete
financial  statements.  In the  opinion of Shelter  Realty IV  Corporation  (the
"Corporate  General Partner"),  all adjustments  (consisting of normal recurring
accruals)  considered  necessary  for a fair  presentation  have been  included.
Operating  results for the three month  period  ended  March 31,  2000,  are not
necessarily  indicative  of the results that may be expected for the year ending
December 31, 2000. For further information,  refer to the consolidated financial
statements and footnotes thereto included in the Partnership's  Annual Report on
Form 10-KSB for the fiscal year ended October 31, 1999.

Change in Fiscal  Year End:  The  Partnership  elected to change its fiscal year
from October 31, to December 31, effective for the period ending March 31, 2000,
as announced in its Form 8-K filed on January 3, 2000. This Quarterly  Report on
Form 10-QSB presents the unaudited results of the  Partnership's  operations for
the three months ended March 31, 2000 and 1999.

Principles of Consolidation:  The financial  statements include all the accounts
of the Partnership and its 99.99% owned partnership.  The general partner of the
consolidated partnership is the Corporate General Partner. The Corporate General
Partner may be removed as the general partner of the consolidated partnership by
the  Registrant;  therefore,  the  consolidated  partnership  is controlled  and
consolidated by the Registrant.  All significant  interpartnership balances have
been eliminated.

Note B - Transfer of Control

Pursuant  to a series  of  transactions  which  closed  on  October  1, 1998 and
February 26, 1999,  Insignia Financial Group, Inc. and Insignia Properties Trust
merged into Apartment  Investment and Management Company  ("AIMCO"),  a publicly
traded real estate investment trust, with AIMCO being the surviving  corporation
(the "Insignia Merger").  As a result, AIMCO acquired 100% ownership interest in
the Corporate  General Partner.  The Corporate  General Partner does not believe
that this  transaction has had or will have a material effect on the affairs and
operations of the Partnership.

Note C - Reconciliation of Cash Flows

The  following  is  a  reconciliation   of  the  subtotal  on  the  accompanying
consolidated  statements of cash flows captioned "net cash provided by operating
activities"  to "net cash used in  operations",  as defined  in the  partnership
agreement of the Partnership (the "Partnership  Agreement").  However, "net cash
used in operations"  should not be considered an alternative to net income as an
indicator  of the  Partnership's  operating  performance  or to cash  flows as a
measure of liquidity.

                                                     For the Three Months Ended
                                                              March 31,
                                                        2000             1999
                                                           (in thousands)
     Net cash provided by operating activities         $  1,031           $ 858
        Payments on mortgage notes payable                (221)            (203)
        Property improvements and replacements            (207)            (205)
        Change in restricted escrows, net                 (442)              97
        Changes in reserves for net operating
           liabilities                                     (44)             153
        Additional reserves                               (117)            (700)

           Net cash from operations                       $ --             $ --

The  Corporate  General  Partner  believed it to be in the best  interest of the
Partnership to reserve net cash from  operations of  approximately  $117,000 and
$700,000 at March 31, 2000 and 1999,  respectively,  to fund continuing  capital
improvements and repairs at the Partnership's three investment properties.

Note D - Distributions

During  the  three  months  ended  March  31,  2000,  the  Partnership   paid  a
distribution  from  operations of  approximately  $1,000,000  ($990,000  paid to
limited  partners  or  $19.80  per  limited  partnership  unit)  relating  to  a
distribution  payable as of December 31, 1999. There were no distributions  paid
during the three months ended March 31, 1999.

Note E - Transactions with Affiliated Parties

The  Partnership  has no employees  and is dependent  on the  Corporate  General
Partner  and  its  affiliates  for  the  management  and  administration  of all
partnership  activities.  The  Partnership  Agreement  provides  for (i) certain
payments to affiliates for services and (ii)  reimbursement  of certain expenses
incurred by affiliates on behalf of the Partnership. The following payments were
made to the Corporate General Partner and its affiliates during the three months
ended March 31, 2000 and 1999:

                                                         2000       1999
                                                          (in thousands)

         Property management fees (included in
           operating expenses)                           $152       $146
         Reimbursement for services of affiliates
           (included in operating, general and
           administrative expenses, and investment
           properties)                                     50         45

During  the three  months  ended  March 31,  2000 and  1999,  affiliates  of the
Corporate General Partner were entitled to receive 5% of gross receipts from all
of the Registrant's properties as compensation for providing property management
services.  The Registrant  paid to such  affiliates  approximately  $152,000 and
$146,000 for the three months ended March 31, 2000 and 1999, respectively.

Affiliates  of  the  Corporate   General  Partner   received   reimbursement  of
accountable  administrative  expenses  amounting  to  approximately  $50,000 and
$45,000 for the three months ended March 31, 2000 and 1999, respectively.

AIMCO and its affiliates  currently own 28,998 limited  partnership units in the
Partnership  representing  58.002% of the  outstanding  units. A number of these
units were acquired  pursuant to tender offers made by AIMCO or its  affiliates.
It is possible  that AIMCO or its  affiliates  will make one or more  additional
offers to acquire  additional limited  partnership  interests in the Partnership
for cash or in exchange for units in the operating  partnership of AIMCO.  Under
the  Partnership  Agreement,  unitholders  holding a  majority  of the Units are
entitled to take action with respect to a variety of matters. As a result of its
ownership  of  58.002%  of the  outstanding  units,  AIMCO is in a  position  to
influence all voting  decisions with respect to the  Registrant.  When voting on
matters,  AIMCO would in all  likelihood  vote the Units it acquired in a manner
favorable  to the interest of the  Corporate  General  Partner  because of their
affiliation with the Corporate General Partner.

Note F - Segment Reporting

Description  of the types of products  and  services  from which the  reportable
segment derives its revenues:

The Partnership has one reportable segment:  residential properties,  consisting
of three apartment  complexes one each located in Florida,  South Carolina,  and
North Carolina.  The Partnership rents apartment units to tenants for terms that
are typically twelve months or less.

Measurement of segment profit or loss:

The  Partnership  evaluates  performance  based on segment  profit (loss) before
depreciation.  The accounting policies of the reportable segment are the same as
those  described  in the  summary  of  significant  accounting  policies  in the
Partnership's Annual Report on Form 10-KSB for the fiscal year ended October 31,
1999.

Factors management used to identify the Partnership's reportable segment:

The  Partnership's  reportable  segment  consists of investment  properties that
offer similar products and services.  Although each of the investment properties
are  managed  separately,  they have been  aggregated  into one  segment as they
provide services with similar types of products and customers.

Segment information for the three month periods ended March 31, 2000 and 1999 is
shown  in  the  tables  below  (in  thousands).   The  "Other"  column  includes
partnership administration related items and income and expense not allocated to
the reportable segment.

                 2000                   Residential      Other       Totals

Rental income                             $ 2,840         $ --      $ 2,840
Other income                                  145             7         152
Interest expense                              515            --         515
Depreciation                                  505            --         505
General and administrative expense             --            86          86
Segment profit (loss)                         490           (79)        411
Total assets                               30,691           351      31,042
Capital expenditures for investment
  properties                                  207            --         207

                 1999                   Residential      Other       Totals

Rental income                             $ 2,789         $ --      $ 2,789
Other income                                   93             8         101
Interest expense                              529            --         529
Depreciation                                  497            --         497
General and administrative expense             --            73          73
Segment profit (loss)                         510           (65)        445
Total assets                               29,974         1,007      30,981
Capital expenditures for investment
  properties                                  205            --         205

Note G - Legal Proceedings

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial  Group,  Inc., et al. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs  named as defendants,  among others,
the Partnership,  the Corporate  General Partner and several of their affiliated
partnerships  and corporate  entities.  The action  purports to assert claims on
behalf of a class of limited  partners and derivatively on behalf of a number of
limited  partnerships  (including  the  Partnership)  which are named as nominal
defendants,  challenging  the  acquisition  by Insignia  Financial  Group,  Inc.
("Insignia")  and  entities  which  were,  at one time,  affiliates  of Insignia
("Insignia  Affiliates") of interests in certain general partner entities,  past
tender offers by Insignia  Affiliates to acquire limited  partnership units, the
management of partnerships  by Insignia  Affiliates and the Insignia Merger (see
"Note B - Transfer  of  Control").  The  plaintiffs  seek  monetary  damages and
equitable relief, including judicial dissolution of the Partnership. On June 25,
1998,  the Corporate  General  Partner filed a motion  seeking  dismissal of the
action.  In lieu of  responding  to the  motion,  the  plaintiffs  have filed an
amended complaint.  The Corporate General Partner filed demurrers to the amended
complaint which were heard February 1999.  Pending the ruling on such demurrers,
settlement negotiations commenced. On November 2, 1999, the parties executed and
filed a  Stipulation  of  Settlement,  settling  claims,  subject to final court
approval, on behalf of the Partnership and all limited partners who own units as
of November 3, 1999.  Preliminary  approval of the  settlement  was  obtained on
November 3, 1999 from the Superior Court of the State of  California,  County of
San Mateo, at which time the Court set a final approval hearing for December 10,
1999.  Prior to the  December  10,  1999  hearing  the  Court  received  various
objections to the settlement,  including a challenge to the Court's  preliminary
approval based upon the alleged lack of authority of class  plaintiffs'  counsel
to enter the settlement. On December 14, 1999, the Corporate General Partner and
its affiliates terminated the proposed settlement. Certain plaintiffs have filed
a motion to  disqualify  some of the  plaintiffs'  counsel  in the  action.  The
Corporate  General Partner does not anticipate  that costs  associated with this
case will be material to the Partnership's overall operations.

The  Partnership is unaware of any other pending or outstanding  litigation that
is not of a routine nature arising in the ordinary course of business.

Item 2.     Management's Discussion and Analysis or Plan of Operation

The  matters  discussed  in this Form  10-QSB  contain  certain  forward-looking
statements  and  involve  risks and  uncertainties  (including  changing  market
conditions,   competitive  and  regulatory   matters,   etc.)  detailed  in  the
disclosures  contained  in this  Form  10-QSB  and the  other  filings  with the
Securities and Exchange Commission made by the Registrant from time to time. The
discussion of the  Registrant's  business and results of  operations,  including
forward-looking  statements  pertaining  to such  matters,  does not  take  into
account the effects of any changes to the  Registrant's  business and results of
operations.  Accordingly,  actual  results  could differ  materially  from those
projected in the forward-looking  statements as a result of a number of factors,
including those identified herein.

The Partnership's  investment  properties consist of three apartment  complexes.
The following table sets forth the average  occupancy of the properties for each
of the three months ended March 31, 2000 and 1999:

                                                            Average
                                                           Occupancy

       Property                                        2000          1999

       Baymeadows Apartments

         Jacksonville, Florida                         94%            94%

       Quail Run Apartments

         Columbia, South Carolina (1)                  88%            91%

       Countrywood Village Apartments

         Raleigh, North Carolina (2)                   91%            94%

(1)   The Corporate General Partner attributes the decrease in average occupancy
      at Quail Run to increased  competition  in the local market as a result of
      the addition of five new apartment complexes in the local area.

(2)   The Corporate General Partner attributes the decrease in average occupancy
      at  Countrywood  Village to tenants  moving out to  purchase  homes due to
      lower interest rates.

Results of Operations

The  Partnership's  net income for the three  months  ended  March 31,  2000 was
approximately  $411,000 compared to approximately $445,000 for the corresponding
period in 1999.  The  decrease  in net income for the  comparable  three  months
periods is due to an increase in total expenses  partially offset by an increase
in total revenues. Total expenses increased for the three months ended March 31,
2000 as compared to the three months ended March 31, 1999,  predominately due to
an increase in operating  expense at Baymeadows.  Operating expense increased at
Baymeadows due to increases in salaries,  commissions and other related benefits
as well as  increases  in sewer  repair,  floor  covering  repairs and  interior
painting at Baymeadows.  These repairs were  completed to upgrade  Baymeadows so
that it may improve its position in the Jacksonville  market. All other expenses
remained relatively constant for the comparable three month periods.

The increase in total  revenues is due to  increases in rental  income and other
income.  Rental income increased due to increases in average rental rates at all
three  properties,  slightly  offset  by  decreases  in  occupancy  at Quail Run
Apartments and Countrywood Village Apartments.  Other income increased primarily
due to  increases  in lease  cancellation  fees and late  charges at  Baymeadows
Apartments.

Included in general and administrative expense for the three month periods ended
March 31, 2000 and 1999 are  reimbursements  to the  Corporate  General  Partner
allowed under the Partnership Agreement. In addition,  costs associated with the
quarterly and annual  communications  with investors and regulatory agencies and
the annual audit and appraisals  required by the Partnership  Agreement are also
included.

As part of the ongoing business plan of the Partnership,  the Corporate  General
Partner  monitors  the  rental  market  environment  of each  of its  investment
properties  to assess  the  feasibility  of  increasing  rents,  maintaining  or
increasing  occupancy  levels and protecting the  Partnership  from increases in
expenses.  As part of this plan,  the  Corporate  General  Partner  attempts  to
protect  the  Partnership  from the  burden of  inflation-related  increases  in
expenses by increasing  rents and  maintaining a high overall  occupancy  level.
However,  due to  changing  market  conditions,  which can  result in the use of
rental  concessions and rental reductions to offset softening market conditions,
there is no guarantee that the Corporate General Partner will be able to sustain
such a plan.

Liquidity and Capital Resources

At  March  31,  2000,  the  Partnership   had  cash  and  cash   equivalents  of
approximately  $2,791,000 as compared to  approximately  $1,820,000 at March 31,
1999. Cash and cash equivalents decreased  approximately  $839,000 for the three
months ended March 31, 2000 from the Registrant's year end of December 31, 1999.
The  decrease  was due to  approximately  $1,221,000  of cash used in  financing
activities  and  approximately  $649,000 of cash used in  investing  activities,
which was  partially  offset by  approximately  $1,031,000  of cash  provided by
operating   activities.   Cash  used  in  financing   activities   consisted  of
distributions  to partners and, to lesser extent,  payments of principal made on
the mortgages  encumbering the Registrant's  properties.  Cash used in investing
activities consisted of property  improvements and replacements and net deposits
to restricted  escrows maintained by the mortgage lender. The Registrant invests
its working capital reserves in money market accounts.

The sufficiency of existing  liquid assets to meet future  liquidity and capital
expenditure   requirements   is  directly   related  to  the  level  of  capital
expenditures  required at the investment  properties to adequately  maintain the
physical  assets and other operating needs of the Partnership and to comply with
Federal, state, local, legal, and regulatory requirements.  Capital improvements
planned for each of the Registrant's properties are detailed below.

Baymeadows  Apartments:  The  Partnership  has budgeted,  but is not limited to,
approximately $520,000 in capital improvements at Baymeadows Apartments for 2000
consisting primarily of parking lot upgrades, carpet and vinyl replacements, new
appliances,  major  landscaping and air conditioning  upgrades.  As of March 31,
2000 the Partnership has spent approximately  $116,000  consisting  primarily of
carpet  and vinyl  replacements,  appliances,  major  landscaping  and  plumbing
upgrades. These improvements were funded from operating cash flow.

Quail Run  Apartments:  The  Partnership  has  budgeted,  but is not limited to,
approximately  $234,000 in capital improvements at Quail Run Apartments for 2000
consisting  primarily  of new  appliances,  carpet and vinyl  replacements,  and
fencing upgrades.  As of March 31, 2000 the Partnership has spent  approximately
$43,000 consisting  primarily of carpet and vinyl  replacements,  new appliances
and lighting upgrades. These improvements were funded from operating cash flow.

Countrywood  Apartments:  The Partnership  has budgeted,  but is not limited to,
approximately  $125,000 in capital  improvements  at Countrywood  Apartments for
2000   consisting   primarily   of  carpet  and  vinyl   replacements,   cabinet
replacements,  new appliances,  and air conditioning  upgrades.  As of March 31,
2000 the Partnership has spent  approximately  $48,000  consisting  primarily of
carpet and vinyl replacements and new appliances. These improvements were funded
from operating cash flow.

The additional  capital  expenditures will be incurred only if cash is available
from  operations  and  Partnership  reserves.  To the extent that such  budgeted
capital improvements are completed, the Registrant's distributable cash flow, if
any, may be adversely affected at least in the short term.

The  Registrant's  current assets are thought to be sufficient for any near term
needs  (exclusive  of capital  improvements)  of the  Registrant.  The  mortgage
indebtedness of approximately  $22,578,000,  net of discount,  is amortized over
257 months with a balloon payment of  approximately  $20,671,000 due on November
15,  2002.  The  Corporate  General  Partner  will  attempt  to  refinance  such
indebtedness  and/or sell the  properties  prior to such  maturity  date. If the
properties cannot be refinanced or sold for a sufficient  amount, the Registrant
will risk losing such properties through foreclosure.

During  the  three  months  ended  March  31,  2000,  the  Partnership   paid  a
distribution  from  operations of  approximately  $1,000,000  ($990,000  paid to
limited  partners  or  $19.80  per  limited  partnership  unit)  relating  to  a
distribution  payable as of December 31, 1999. There were no distributions  paid
during the three  months ended March 31, 1999.  Future cash  distributions  will
depend on the levels of net cash generated from operations,  the availability of
cash reserves and the timing of debt maturities,  refinancings,  and/or property
sales. The Partnership's  distribution  policy is reviewed on a quarterly basis.
There  can  be  no  assurance,  however,  that  the  Partnership  will  generate
sufficient funds from operations, after required capital expenditures, to permit
any  additional  distributions  to its  partners  for the  remainder  of 2000 or
subsequent periods.  In addition,  the Partnership may be restricted from making
distributions  if the amount in the reserve  account  for each  property is less
than  $400 per  apartment  unit at such  property  or a total  of  approximately
$648,000.  As of March 31,  2000,  the  reserve  account  was fully  funded with
approximately $1,343,000 on deposit with the mortgage lender.


<PAGE>


                           PART II - OTHER INFORMATION

ITEM 1.     LEGAL PROCEEDINGS

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial  Group,  Inc., et al. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs  named as defendants,  among others,
the Partnership,  the Corporate  General Partner and several of their affiliated
partnerships  and corporate  entities.  The action  purports to assert claims on
behalf of a class of limited  partners and derivatively on behalf of a number of
limited  partnerships  (including  the  Partnership)  which are named as nominal
defendants,  challenging  the  acquisition  by Insignia  Financial  Group,  Inc.
("Insignia")  and  entities  which  were,  at one time,  affiliates  of Insignia
("Insignia  Affiliates") of interests in certain general partner entities,  past
tender offers by Insignia  Affiliates to acquire limited  partnership units, the
management of partnerships  by Insignia  Affiliates and the Insignia Merger (see
"Part I - Financial Information, Item I. Financial Statements, Note B - Transfer
of  Control").  The  plaintiffs  seek  monetary  damages and  equitable  relief,
including  judicial  dissolution  of the  Partnership.  On June  25,  1998,  the
Corporate  General  Partner filed a motion seeking  dismissal of the action.  In
lieu  of  responding  to the  motion,  the  plaintiffs  have  filed  an  amended
complaint.  The  Corporate  General  Partner  filed  demurrers  to  the  amended
complaint which were heard February 1999.  Pending the ruling on such demurrers,
settlement negotiations commenced. On November 2, 1999, the parties executed and
filed a  Stipulation  of  Settlement,  settling  claims,  subject to final court
approval, on behalf of the Partnership and all limited partners who own units as
of November 3, 1999.  Preliminary  approval of the  settlement  was  obtained on
November 3, 1999 from the Superior Court of the State of  California,  County of
San Mateo, at which time the Court set a final approval hearing for December 10,
1999.  Prior to the  December  10,  1999  hearing  the  Court  received  various
objections to the settlement,  including a challenge to the Court's  preliminary
approval based upon the alleged lack of authority of class  plaintiffs'  counsel
to enter the settlement. On December 14, 1999, the Corporate General Partner and
its affiliates terminated the proposed settlement. Certain plaintiffs have filed
a motion to  disqualify  some of the  plaintiffs'  counsel  in the  action.  The
Corporate  General Partner does not anticipate  that costs  associated with this
case will be material to the Partnership's overall operations.

ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

            a)    Exhibits:

                  Exhibit 27, Financial Data Schedule, is filed as an exhibit to
                  this report.

            b)    Reports on Form 8-K filed  during the three months ended March
                  31, 2000:

                  Current  Report on Form 8-K dated  January 3,  2000,  filed on
                  January 12,  2000,  disclosing  change in fiscal year end from
                  October to December.


<PAGE>


                                   SIGNATURES

In accordance with the  requirements of the Exchange Act, the registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.

                              SHELTER PROPERTIES IV

                                 By:     Shelter Realty IV Corporation
                                         Its Corporate General Partner

                                 By:     /s/Patrick J. Foye
                                         Patrick J. Foye
                                         Executive Vice President

                                 By:     /s/Martha L. Long
                                         Martha L. Long
                                         Senior Vice President and
                                         Controller

                               Date:     May 15, 2000