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 September 30, 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__
<PAGE>


                         PART I - FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS

a)

                              SHELTER PROPERTIES IV

                           CONSOLIDATED BALANCE SHEET

                                   (Unaudited)

                        (in thousands, except per unit data)

                               September 30, 2000

<TABLE>
<CAPTION>

Assets

<S>                                                         <C>           <C>
   Cash and cash equivalents                                              $  2,702
   Receivables and deposits                                                    302
   Restricted escrows                                                          704
   Other assets                                                                292
   Investment properties:
      Land                                                 $  2,759
      Buildings and related personal property                49,014
                                                             51,773

      Less accumulated depreciation                         (29,116)        22,657
                                                                          $ 26,657

Liabilities and Partners' Capital
Liabilities

   Accounts payable                                                       $    697
   Tenant security deposit liabilities                                         199
   Accrued property taxes                                                      550
   Other liabilities                                                           862
   Mortgage notes payable                                                   18,167

Partners' Capital

   General partners                                        $     94
   Limited partners (49,995 units issued and
      outstanding)                                            6,088          6,182
                                                                          $ 26,657

            See Accompanying Notes to Consolidated Financial Statements

</TABLE>
<PAGE>



b)

                              SHELTER PROPERTIES IV

                      CONSOLIDATED STATEMENTS OF OPERATIONS

                                   (Unaudited)

                          (in thousands, except unit data)


<TABLE>
<CAPTION>

                                           Three Months Ended         Nine Months Ended
                                             September 30,              September 30,
                                           2000         1999          2000          1999
Revenues:
<S>                                       <C>          <C>           <C>           <C>
   Rental income                          $ 2,401      $ 2,823       $ 8,064       $ 8,378
   Other income                               165          110           518           344
   Gain on sale of investment
     property (Note H)                     12,350           --        12,350            --
      Total revenues                       14,916        2,933        20,932         8,722

Expenses:
   Operating                                1,199        1,317         3,782         3,554
   General and administrative                 209           97           382           273
   Depreciation                               604          474         1,618         1,423
   Interest                                   451          523         1,478         1,581
   Property taxes                             195          199           604           602
      Total expenses                        2,658        2,610         7,864         7,433

Income before extraordinary item           12,258          323        13,068         1,289

Extraordinary loss on early
 extinguishment of debt (Note H)             (246)          --          (246)           --

Net income                                $12,012      $   323       $12,822       $ 1,289

Net income allocated

   to general partners (1%)               $   120      $     3       $   128       $    13
Net income allocated

   to limited partners (99%)               11,892          320        12,694         1,276

                                          $12,012      $   323       $12,822       $ 1,289
Net income per limited
   partnership unit                       $237.86      $  6.40       $253.90       $ 25.52

Distributions per limited

   partnership unit                       $234.89      $    --       $274.49       $    --


            See Accompanying Notes to Consolidated Financial Statements
</TABLE>

<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

Distributions to partners                               (20)     (13,723)    (13,743)

Net income for the nine months
   ended September 30, 2000                 --          128       12,694      12,822

Partners' capital at
   September 30, 2000                   49,995      $    94     $  6,088    $  6,182

            See Accompanying Notes to Consolidated Financial Statements
</TABLE>


<PAGE>


d)
                              SHELTER PROPERTIES IV

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                   (Unaudited)

                                   (in thousands)

<TABLE>
<CAPTION>

                                                                 Nine Months Ended
                                                                   September 30,

                                                                  2000        1999
Cash flows from operating activities:

<S>                                                             <C>         <C>
   Net income                                                   $12,822     $ 1,289
   Adjustments to reconcile net income to net
     cash provided by operating activities:
        Gain on sale of investment property                     (12,350)         --
        Loss on early extinguishment of debt                        246          --
        Depreciation                                              1,618       1,423
        Amortization of discounts and loan costs                    199         210
        Change in accounts:
            Receivables and deposits                                424        (279)
            Other assets                                            119        (302)
            Accounts payable                                       (128)        106
            Tenant security deposit liabilities                     (33)         10
            Accrued property taxes                                  209         321
            Other liabilities                                       575          (3)

               Net cash provided by operating activities          3,701       2,775

Cash flows from investing activities:

   Property improvements and replacements                        (2,540)       (921)
   Net withdrawals from restricted escrows                          197         853
   Proceeds from the sale of investment property                 17,385          --

               Net cash provided by (used in) investing
                  activities                                     15,042         (68)

Cash flows from financing activities:

   Partners' distributions                                      (14,743)         --
   Payments on mortgage notes payable                              (640)       (622)
   Repayment of mortgage note payable                            (4,172)         --
   Debt extinguishment costs                                      (116)          --
               Net cash used in financing activities           (19,671)        (622)

Net (decrease) increase in cash and cash equivalents               (928)      2,085
Cash and cash equivalents at beginning of period                  3,630       1,273
Cash and cash equivalents at end of period                      $ 2,702     $ 3,358

Supplemental disclosure of cash flow information:

   Cash paid for interest                                       $ 1,298     $ 1,370
Supplemental disclosure of non-cash flow information:
   Property improvements and replacements included in
    accounts payable                                            $   443     $    --

Distributions of approximately  $1,000,000 were accrued at December 31, 1999 and
paid in January 2000.

            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 and nine month periods ended September 30, 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  December 31,
1999,  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 and nine months ended September 30, 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.


<PAGE>




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.

<TABLE>
<CAPTION>

                                                        For the Nine Months Ended
                                                              September 30,
                                                          2000             1999
                                                             (in thousands)
<S>                                                      <C>              <C>
     Net cash provided by operating activities           $ 3,701          $ 2,775
        Payments on mortgage notes payable                  (640)            (622)
        Property improvements and replacements            (2,540)            (921)
        Change in restricted escrows, net                    197              853
        Changes in reserves for net operating
           liabilities                                    (1,166)             147
        Additional reserves                                   --           (2,232)

           Net cash used in operations                   $ (448)           $   --
</TABLE>

The  Corporate  General  Partner  believed it to be in the best  interest of the
Partnership to reserve net cash from operations of  approximately  $2,232,000 at
September 30, 1999, to fund continuing  capital  improvements and repairs at the
Partnership's three investment properties.

Note D - Distributions

During the nine months ended  September 30, 2000, the  Partnership  declared and
paid a distribution from operations of approximately $2,000,000 ($1,980,000 paid
to  limited  partners  or  $39.60  per  limited  partnership  unit)  and  paid a
distribution of approximately  $11,743,000 from sale proceeds  ($11,743,000 paid
to limited  partners or $234.89 per limited  partnership  unit). In addition,  a
distribution  from operations of approximately  $1,000,000  ($990,000 to limited
partners or $19.80 per limited partnership unit) was paid during the nine months
ended  September 30, 2000 relating to a distribution  payable as of December 31,
1999.  There were no  distributions  paid during the nine months ended September
30, 1999.


<PAGE>



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 amounts were
paid or accrued to the Corporate  General Partner and its affiliates  during the
nine months ended September 30, 2000 and 1999:

                                                         2000       1999
                                                          (in thousands)

         Property management fees (included in
           operating expenses)                           $431       $437
         Reimbursement for services of affiliates
           (included in operating, general and
           administrative expenses, and investment
           properties)                                    276        158
         Due to affiliates (included in other
           liabilities)                                    90         --
         Due to general partners (included in other
           liabilities)                                   178         --

During the nine months  ended  September  30, 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  $431,000 and
$437,000 for the nine months ended September 30, 2000 and 1999, respectively.

Affiliates  of  the  Corporate   General  Partner   received   reimbursement  of
accountable  administrative  expenses  amounting to  approximately  $276,000 and
$158,000 for the nine months ended September 30, 2000 and 1999, respectively. Of
this amount approximately $90,000 was accrued at September 30, 2000.

In  connection  with the sale of  Countrywood  Village,  the  Corporate  General
Partner is allowed to receive a commission of up to 1% for its assistance in the
sale.  Payment  of  such  commission  is  subordinate  to the  limited  partners
receiving a cumulative  7% return on their  investment.  This return has not yet
been met and accordingly, the $178,000 owed to the Corporate General Partner was
accrued and is included in 'Other Liabilities' at September 30, 2000.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates  currently own 30,448 limited partnership
units in the Partnership representing 60.902% 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,  which
would  include  without   limitation,   voting  on  certain  amendments  to  the
Partnership  Agreement and voting to remove the Corporate General Partner.  As a
result of its  ownership  of 60.902%  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 two apartment complexes,  one each located in Florida and South Carolina.  On
August 1, 2000, the  Partnership  sold its third  apartment  complex  located in
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 and nine month periods  ended  September 30,
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.

Three Months Ended September 30, 2000

                                        Residential    Other      Totals
Rental income                             $ 2,401      $  --     $ 2,401
Other income                                  152         13         165
Interest expense                              451         --         451
Depreciation                                  604         --         604
General and administrative expense             --        209         209
Gain on sale of investment property        12,350         --      12,350
Extraordinary loss on early                  (246)        --        (246)
   extinguishment of debt
Segment profit (loss)                      12,208       (196)     12,012


<PAGE>



Nine Months Ended September 30, 2000

                                        Residential    Other      Totals
Rental income                              $ 8,064     $   --    $ 8,064
Other income                                  497          21        518
Interest expense                            1,478          --      1,478
Depreciation                                1,618          --      1,618
General and administrative expense             --         382        382
Gain on sale of investment property        12,350         --      12,350
Extraordinary loss on early
   extinguishment of debt                    (246)        --        (246)
Segment profit (loss)                      13,183        (361)    12,822
Total assets                               25,849         808     26,657
Capital expenditures                        2,983          --      2,983

Three Months Ended September 30, 1999

                                        Residential    Other      Totals
Rental income                            $ 2,823      $    --    $ 2,823
Other income                                 105            5        110
Interest expense                             523           --        523
Depreciation                                 474           --        474
General and administrative expense            --           97         97
Segment profit (loss)                        415          (92)       323

Nine Months Ended September 30, 1999

                                        Residential    Other      Totals
Rental income                            $ 8,378       $   --    $ 8,378
Other income                                 323           21        344
Interest expense                           1,581           --      1,581
Depreciation                               1,423           --      1,423
General and administrative expense            --          273        273
Segment profit (loss)                      1,541         (252)     1,289
Total assets                              31,193          827     32,020
Capital expenditures                         921           --        921

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,  its 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 of interests in certain general partner
entities by Insignia Financial Group, Inc. ("Insignia") and entities which were,
at one  time,  affiliates  of  Insignia;  past  tender  offers  by the  Insignia
affiliates to acquire limited  partnership units; the management of partnerships
by the  Insignia  affiliates;  and the  Insignia  Merger.  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 owned  units as of November 3, 1999.  Preliminary
approval of the settlement  was obtained on November 3, 1999 from the Court,  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 prior lead counsel to enter the settlement.  On
December 14, 1999, the Corporate  General Partner and its affiliates  terminated
the  proposed  settlement.  In  February  2000,  counsel  for some of the  named
plaintiffs filed a motion to disqualify plaintiff's lead and liaison counsel who
negotiated  the  settlement.  On June  27,  2000,  the  Court  entered  an order
disqualifying them from the case. The Court is considering applications for lead
counsel and has  currently  scheduled a hearing on the matter for  November  20,
2000. 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.

Note H - Sale of Property

On August 1, 2000, the Partnership sold Countrywood Village to DCF, Sr., LLC, an
unrelated  third party,  for net  proceeds of  approximately  $17,385,000  after
payment of  closing  costs.  The  Partnership  realized a gain of  approximately
$12,350,000 as a result of the sale. In addition,  the  Partnership  recorded an
extraordinary loss on early extinguishment of debt of approximately  $246,000 as
a result of  unamortized  debt  discount  being written off and the payment of a
prepayment  penalty of approximately  $116,000 relating to the prepayment of the
mortgage  encumbering  the property.  In connection with the sale, the Corporate
General  Partner  is  allowed  to  receive  a  commission  of up to 1%  for  its
assistance in the sale. Payment of such commission is subordinate to the limited
partners  receiving a cumulative 7% return on their investment.  This return has
not yet been met and  accordingly,  the $178,000 owed to the  Corporate  General
Partner was accrued and is included  in 'Other  Liabilities'  at  September  30,
2000. In August 2000,  the  Partnership  made a  distribution  of  approximately
$11,743,000 representing proceeds from the sale of Countrywood Village. Revenues
included in the accompanying  consolidated  statements of operations  related to
this property were  approximately  $1,586,000 and $2,031,000 for the nine months
ended September 30, 2000 and 1999, respectively.


<PAGE>





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 two apartment complexes. The
following  table sets forth the average  occupancy of the properties for each of
the nine months ended September 30, 2000 and 1999:

                                                            Average
                                                           Occupancy

       Property                                        2000          1999

       Baymeadows Apartments

         Jacksonville, Florida                         93%            93%

       Quail Run Apartments

         Columbia, South Carolina                      90%            93%

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.

Results of Operations

The Partnership  recorded net income of approximately  $12,012,000 for the three
months ended September 30, 2000 compared to net income of approximately $323,000
for the corresponding  period in 1999. The Partnership's net income for the nine
months ended September 30, 2000 was  approximately  $12,822,000  compared to net
income of  approximately  $1,289,000 for the  corresponding  period in 1999. The
increase in net income for the three and nine month periods ended  September 30,
2000 compared with the three and nine month periods ended  September 30, 1999 is
primarily due to the gain on the sale of Countrywood Village partially offset by
the extraordinary loss on early  extinguishment of debt recognized in connection
with the sale.

On August 1, 2000, the Partnership sold Countrywood Village to DCF, Sr., LLC, an
unrelated  third party,  for net  proceeds of  approximately  $17,385,000  after
payment of  closing  costs.  The  Partnership  realized a gain of  approximately
$12,350,000 as a result of the sale. In addition,  the  Partnership  recorded an
extraordinary loss on early extinguishment of debt of approximately  $246,000 as
a result of  unamortized  debt  discount  being written off and the payment of a
prepayment  penalty of approximately  $116,000 relating to the prepayment of the
mortgage encumbering the property.

Excluding the impact of the sale of Countrywood Village, net income for the nine
months ended September 30, 2000 and 1999 was approximately $288,000 and $641,000
respectively.  The net loss for the three  months ended  September  30, 2000 was
approximately $66,000 versus net income for the three months ended September 30,
1999 of approximately $98,000. The decrease in net income for the three and nine
month periods  ended  September 30, 2000 as compared to the three and nine month
periods  ended  September  30,  1999 was  primarily  due to an increase in total
expenses  partially  offset by an increase  in total  revenues.  Total  expenses
increased for the three and nine months ended  September 30, 2000 as compared to
the three and nine months  ended  September  30, 1999,  predominately  due to an
increase in depreciation expense at both Baymeadows and Quail Run in addition to
an increase in general and  administrative  expenses.  For the nine months ended
September  30,  2000  an  increase  in  operating  expense  at  Baymeadows  also
contributed  to the  increase  in total  expenses.  For the three  months  ended
September 30, 2000 operating expenses remained  relatively  constant.  All other
expenses  remained  relatively  constant for the comparable three and nine month
periods.  The increase in  depreciation  expense is attributed to an increase in
capital  improvements  completed  during  the  past  year  which  are now  being
depreciated.  On an overall  basis the  operating  expenses of  Baymeadows  have
increased during the last quarter of 1999 and into 2000 as a result of increases
in  salaries,  commissions  and other  related  benefits as well as increases in
utilities,  interior painting,  floor covering repairs and sewer repairs.  These
repairs were completed to upgrade Baymeadows so that it may improve its position
in the Jacksonville market.

General  and  administrative  expenses  increased  for the three and nine  month
periods ended  September 30, 2000 as a result of an increase in the services and
the cost of such  services  provided by the  Corporate  General  Partner and its
affiliates.  Included in general and  administrative  expenses for the three and
nine month periods ended September 30, 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.

The  increase  in total  revenues is due to  increases  in both rental and other
income.  Rental  income  increased  due to increases in average  rental rates at
Baymeadows and Quail Run, slightly offset by decreases in occupancy at Quail Run
Apartments  in addition to an increase in concession  costs at both  properties.
Other income increased primarily due to increases in lease cancellation fees and
late charges at Baymeadows Apartments,  local telephone income at all properties
and interest  income.  Interest  income  increased as a result of larger average
cash balances invested in interest bearing accounts.

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.


<PAGE>



Liquidity and Capital Resources

At  September  30,  2000,  the  Partnership  had cash and  cash  equivalents  of
approximately  $2,702,000 as compared to  approximately  $3,358,000 at September
30, 1999. Cash and cash  equivalents  decreased  approximately  $928,000 for the
nine months ended September 30, 2000 from the Registrant's  year end of December
31,  1999.  The decrease was due to  approximately  $19,671,000  of cash used in
financing activities, which was partially offset by approximately $15,042,000 of
cash  provided by investing  activities  and  approximately  $3,701,000  of cash
provided by operating  activities.  Cash used in financing  activities consisted
primarily  of  distributions  to  partners  and, to lesser  extent,  payments of
principal made on the mortgages  encumbering the  Registrant's  properties along
with payments associated with paying off the Countrywood Village mortgage.  Cash
provided by investing  activities  consisted  primarily of net proceeds from the
sale  of  Countrywood  Village  and  net  withdrawals  from  restricted  escrows
maintained by the mortgage lender, partially offset by property improvements and
replacements.  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 and 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  $3,401,000 in capital  improvements at Baymeadows  Apartments for
2000   consisting   primarily  of  pool  upgrades,   plumbing   upgrades,   roof
replacements,  structural  improvements,  carpet  and  vinyl  replacements,  new
appliances,  new cabinets,  and air conditioning  upgrades.  As of September 30,
2000,  the   Partnership   has  spent   approximately   $2,652,000  in  budgeted
improvements  consisting  primarily of plumbing upgrades,  structural  upgrades,
roof replacements, pool upgrades, appliances, and carpet and vinyl replacements.
These improvements were funded from operating cash flow.

Quail Run  Apartments:  The  Partnership  has  budgeted,  but is not limited to,
approximately  $232,000 in capital improvements at Quail Run Apartments for 2000
consisting  primarily  of new  appliances,  carpet and vinyl  replacements,  and
fencing  upgrades.   As  of  September  30,  2000,  the  Partnership  has  spent
approximately  $229,000 in budgeted improvements  consisting primarily of carpet
and vinyl replacements, new appliances and lighting upgrades. These improvements
were funded from operating cash flow.

Countrywood  Village  Apartments:  The  Partnership  had budgeted  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.  Prior to the sale of the property on August 1,
2000, the Partnership had spent approximately  $102,000 in budgeted improvements
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  $18,167,000,  net of discount,  is amortized over
257 months with a balloon payment of  approximately  $16,907,000 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 nine months ended  September 30, 2000, the  Partnership  declared and
paid a distribution from operations of approximately $2,000,000 ($1,980,000 paid
to  limited  partners  or  $39.60  per  limited  partnership  unit)  and  paid a
distribution of approximately  $11,743,000 from sale proceeds  ($11,743,000 paid
to limited  partners  or $234.89 per limited  partnership  unit).  In addition a
distribution  from operations of approximately  $1,000,000  ($990,000 to limited
partners or $19.80 per limited partnership unit) was paid during the nine months
ended  September 30, 2000 relating to a distribution  payable as of December 31,
1999.  There were no  distributions  paid during the nine months ended September
30,  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  $494,000.  As of September 30, 2000,  the
reserve account was fully funded with approximately $691,000 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,  its 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 of interests in certain general partner
entities by Insignia Financial Group, Inc. ("Insignia") and entities which were,
at one  time,  affiliates  of  Insignia;  past  tender  offers  by the  Insignia
affiliates to acquire limited  partnership units; the management of partnerships
by the  Insignia  affiliates;  and the  Insignia  Merger.  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 owned  units as of November 3, 1999.  Preliminary
approval of the settlement  was obtained on November 3, 1999 from the Court,  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 prior lead counsel to enter the settlement.  On
December 14, 1999, the Corporate  General Partner and its affiliates  terminated
the  proposed  settlement.  In  February  2000,  counsel  for some of the  named
plaintiffs filed a motion to disqualify plaintiff's lead and liaison counsel who
negotiated  the  settlement.  On June  27,  2000,  the  Court  entered  an order
disqualifying them from the case. The Court is considering applications for lead
counsel and has  currently  scheduled a hearing on the matter for  November  20,
2000. The Corporate  General Partner does not anticipate  that costs  associated
with this case will be material to the Partnership's overall operations.


<PAGE>



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 quarter  ended  September
                  30, 2000:

                  Current  report on Form 8-K filed  August 14, 2000  disclosing
                  the sale of Countrywood Village Apartments.


<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:   November 13, 2000