UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-K
(Mark One)

    X       ANNUAL  REPORT  PURSUANT  TO  SECTION  13 OR 15(d) OF THE SECURITIES
---------
            EXCHANGE ACT OF 1934

For the fiscal year ended March 31, 2003

                                       OR

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

                         Commission File Number 33-89968

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                      ------------------------------------
             (Exact name of registrant as specified in its charter)

            Delaware                                           13-3809869
-------------------------------                         ------------------------
(State or other jurisdiction of                             (I.R.S. Employer
incorporation or organization)                              Identification No.)

625 Madison Avenue, New York, New York                           10022
----------------------------------------                ------------------------
(Address of principal executive offices)                       (Zip Code)

Registrant's telephone number, including area code (212) 421-5333

Securities registered pursuant to Section 12(b) of the Act:

     None

Securities registered pursuant to Section 12(g) of the Act:

Limited Partnership Interests and Beneficial Assignment Certificates

         (Title of Class)

     Indicate  by check mark  whether the  registrant  (1) has 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
                                             -----  -----

     Indicate by check mark if disclosure of delinquent  filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's  knowledge,  in definitive proxy or information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [X]

     Indicate by check mark whether the registrant is an  accelerated  filer (as
defined in Exchange Act Rule 12b-2). Yes     No  X
                                        -----  -----

     The  approximate  aggregate book value of the voting and non-voting  common
equity held by  non-affiliates  of the  Registrant  as of September 30, 2002 was
$27,611,000, based on Limited Partner equity as of such date.


                       DOCUMENTS INCORPORATED BY REFERENCE
     None


<PAGE>


                      CAUTIONARY STATEMENT FOR PURPOSES OF
                         THE "SAFE HARBOR" PROVISIONS OF
              THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995



WHEN  USED  IN  THIS  ANNUAL  REPORT  ON  FORM  10-K,   THE  WORDS   "BELIEVES,"
"ANTICIPATES,"  "EXPECTS"  AND  SIMILAR  EXPRESSIONS  ARE  INTENDED  TO IDENTIFY
FORWARD-LOOKING  STATEMENTS.  STATEMENTS LOOKING FORWARD IN TIME ARE INCLUDED IN
THIS ANNUAL REPORT ON FORM 10-K  PURSUANT TO THE "SAFE HARBOR"  PROVISION OF THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. SUCH STATEMENTS ARE SUBJECT TO
CERTAIN  RISKS AND  UNCERTAINTIES  WHICH  COULD CAUSE  ACTUAL  RESULTS TO DIFFER
MATERIALLY,  INCLUDING,  BUT NOT  LIMITED TO,  THOSE SET FORTH IN  "MANAGEMENT'S
DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF  OPERATIONS."
READERS  ARE  CAUTIONED  NOT TO PLACE UNDUE  RELIANCE  ON THESE  FORWARD-LOOKING
STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE HEREOF.


                                       2
<PAGE>


                                     PART I

Item 1. Business.

General
-------

Independence  Tax  Credit  Plus  L.P.  IV  (the   "Partnership")  is  a  limited
partnership which was formed under the laws of the State of Delaware on February
22, 1995. The general partner of the Partnership is Related Independence L.L.C.,
a Delaware limited liability company (the "General Partner").

On July 6, 1995, the Partnership commenced a public offering (the "Offering") of
Beneficial Assignment Certificates ("BACs") representing  assignments of limited
partnership  interests in the  Partnership  ("Limited  Partnership  Interests"),
managed by Related Equities  Corporation (the "Dealer  Manager"),  pursuant to a
prospectus dated July 6, 1995 (the "Prospectus").

The Partnership has received  $45,844,000 of Gross Proceeds of the Offering from
2,759 investors ("BACs holders").  The solicitation for the subscription of BACs
was  terminated as of May 22, 1996 and the final closing  occurred on August 15,
1996.

The Partnership's  business is primarily to invest in other partnerships ("Local
Partnerships")   owning   apartment   complexes   ("Apartment    Complexes"   or
"Properties")  that are eligible for the low-income housing tax credit ("Housing
Tax  Credit")  enacted in the Tax Reform Act of 1986,  some of which may also be
eligible  for the historic  rehabilitation  tax credit  ("Historic  Tax Credit";
together with Housing Tax Credits,  "Tax  Credits").  As of March 31, 2003,  the
Partnership  has  acquired an interest in fourteen  Local  Partnerships,  all of
which  have  been   consolidated.   The   Partnership's   investments  in  Local
Partnerships represent from 98.99% to 99.89% interests except for one investment
which is a 58.12%  interest.  As of March 31, 2003, the Partnership has invested
approximately  $37,814,000 (including  approximately  $1,161,000 classified as a
loan  repayable   from   sale/refinancing   proceeds  in  accordance   with  the
Contribution  Agreement  and not  including  acquisition  fees of  approximately
$1,771,000)   of  net  proceeds  in  fourteen   Local   Partnerships   of  which
approximately $1,593,000 remains to be paid to the Local Partnerships (including
approximately  $615,000  being held in escrow)  as certain  benchmarks,  such as
occupancy level, are attained prior to the release of the funds. The Partnership
does not anticipate acquiring additional properties,  but the Partnership may be
required  to fund  potential  purchase  price  adjustments  based on tax  credit
adjustor clauses. See Item 2, Properties, below.

The investment objectives of the Partnership are described below:

1. Entitle  qualified BACs holders to Housing Tax Credits over the period of the
Partnership's entitlement to claim Tax Credits (for each Property, generally ten
years from the date of investment or, if later,  the date the Property is leased
to qualified tenants; referred to herein as the "Credit Period") with respect to
each Apartment Complex.

2. Preserve and protect the Partnership's capital.

3.  Participate in any capital  appreciation  in the value of the Properties and
provide  distributions  of Sale or Refinancing  Proceeds upon the disposition of
the Properties.

4. Allocate  passive losses to individual  BACs holders to offset passive income
that they may realize  from rental real  estate  investments  and other  passive
activities,  and allocate  passive  losses to  corporate  BACs holders to offset
business income.

One of the  Partnership's  objectives  is to entitle  qualified  BACs holders to
Housing Tax Credits over the Credit Period.  Each of the Local  Partnerships  in

                                       3
<PAGE>

which the  Partnership  has  acquired  an  interest  has been  allocated  by the
relevant state credit agencies the authority to recognize Tax Credits during the
Credit  Period   provided  that  the  Local   Partnership   satisfies  the  rent
restriction, minimum set-aside and other requirements for recognition of the Tax
Credits at all times during such  period.  Once a Local  Partnership  has become
eligible to recognize Tax Credits,  it may lose such  eligibility  and suffer an
event of "recapture" if its Property fails to remain in compliance  with the Tax
Credit requirements. None of the Local Partnerships in which the Partnership has
acquired an interest has suffered an event of recapture.

There can be no  assurance  that the  Partnership  will  achieve its  investment
objectives as described above.

The  Partnership  is subject to the risks  incident to potential  losses arising
from the  management  and  ownership of improved  real estate and poor  economic
conditions.

Segments
--------

The Partnership operates in one segment, which is the investment in multi-family
residential property.

Competition
-----------

The real estate  business is highly  competitive  and  substantially  all of the
properties  acquired by the Partnership are expected to have active  competition
from similar  properties in their respective  vicinities.  In addition,  various
other limited  partnerships may, in the future, be formed by the General Partner
and/or its affiliates to engage in businesses  which may be competitive with the
Partnership.

Employees
---------

The Partnership does not have any direct  employees.  All services are performed
for the  Partnership  by the  General  Partner and its  affiliates.  The General
Partner  receives  compensation  in the connection  with such  activities as set
forth in Items 11 and 13. In addition,  the  Partnership  reimburses the General
Partner and certain of its affiliates from expenses  incurred in connection with
the performance by their employees of services for the Partnership in accordance
with the  Partnership's  Amended and Restated  Agreement of Limited  Partnership
(the "Partnership Agreement").

Item 2. Properties.

As of March 31, 2003, the Partnership has acquired an interest in fourteen Local
Partnerships,  all of which have been  consolidated.  Except for the interest in
New Zion Apartments,  L.P. ("New Zion"),  the  Partnership's  investment in each
Local Partnership  represents  98.99% or 99.89% of the partnership  interests in
the Local  Partnership.  The  Partnership's  investment  in New Zion  represents
58.12% of the  partnership  interest in the  subsidiary  partnership  (the other
41.86% limited partnership interest is owned by an affiliate of the Partnership,
with the same  management).  Through  the  rights of the  Partnership  and/or an
affiliate of the General Partner,  which affiliate has a contractual  obligation
to act on behalf  of the  Partnership,  to remove  the  general  partner  and to
approve certain major operating and financial  decisions,  the Partnership has a
controlling financial interest in all of the Local Partnerships it has invested.
Set forth  below is a  schedule  of the  Local  Partnerships  including  certain
information   concerning  their  respective   Apartment  Complexes  (the  "Local
Partnership  Schedule").  Further information  concerning the Local Partnerships
and their properties, including any encumbrances affecting the properties may be
found in Item 15. Schedule III .

                                       4
<PAGE>

<TABLE>
<CAPTION>

                           Local Partnership Schedule
                           --------------------------

                                                                Percentage of Units
                                                                Occupied  at  May 1,
Name and Location                                               ----------------
(Number of Units)                                   Date Acquired   2003   2002   2001   2000    1999
-----------------                                   -------------   ----   ----   ----   ----    ----

<S>                                                 <C>             <C>    <C>    <C>    <C>     <C>
BX-8A Team Associates, L.P.                         October 1995     93%   100%    95%    95%     98%
  Bronx, NY (41)

Westminster Park Plaza
  (a California Limited Partnership)                June 1996        98%    99%    98%    96%
                                                                                                  99%
  Los Angeles, CA (130)

Fawcett Street Limited Partnership                  June 1996       100%    98%    98%    98%     95%
  Tacoma, WA (60)

Figueroa Senior Housing                             November 1996    98%   100%    99%    99%     97%
  Limited Partnership
  Los Angeles, CA (66)

NNPHI Senior Housing                                December 1996    99%   100%    99%   100%     99%
  Limited Partnership
  Los Angeles, CA (75)

Belmont/McBride Apartments                          January 1997     98%    95%   100%    98%     93%
  Limited Partnership
  Paterson, NJ (42)

Sojourner Douglass, L.P.                            February 1997   100%   100%    95%   100%    100%
  Paterson, NJ (20)

New Zion Apartments                                 October 1997     95%    88%   100%    99%     98%
  Limited Partnership
  Shreveport, LA (100)

Bakery Village Urban Renewal                        December 1997    99%   100%    99%   100%     99%
  Associates, L.P.
  Montclair, NJ (125)

Marlton Housing Partnership, L.P.                   May 1998         92%   100%   100%   100%      0%*
  (a Pennsylvania limited partnership)
  Philadelphia, PA (25)

GP Kaneohe Limited Partnership                      July 1999       100%    98%   100%     0%**
  Kaneohe, HI (44)

KSD Village Apartments, Phase II, Ltd.              July 1999        94%    88%    88%    75%
  Danville, KY (16)

Kanisa Apartments, Ltd.                             October 1999     88%    86%    92%    92%
  Fayette County, KY (59)

Guymon Housing Partners, L.P.                       December 1999   100%   100%   100%    92%
  Guymon, OK (92)

</TABLE>

*  Property still in construction phase.
** Project substantially completed but no certificate of occupancy received.


                                       5
<PAGE>

Leases are generally for periods not greater than one to two years and no tenant
occupies more than 10% of the rentable square footage.

Management  continuously  reviews  the  physical  state  of the  properties  and
suggests to the respective Local General Partners budget  improvements which are
generally  funded  from cash flow from  operations  or  release  of  replacement
reserve escrows.

Management  annually  reviews  the  insurance  coverage  of the  properties  and
believes such coverage is adequate.

See Item 1, Business,  above for the general competitive conditions to which the
properties described above are subject.

Real estate taxes are calculated using rates and assessed valuations  determined
by the  township  or city in which the  property  is  located.  Such  taxes have
approximated  less than 1% of the aggregate  cost of the  properties as shown in
Schedule III to the financial statements included herein.

Housing Tax Credits with respect to a given Apartment  Complex are available for
a ten-year  period  that  commences  when the  property  is rented to  qualified
tenants.  However,  the annual Tax  Credits  available  in the year in which the
Apartment  Complex is placed in service  must be prorated  based upon the months
remaining in the year.  The amount of the annual Tax Credit not available in the
first  year will be  available  in the  eleventh  year.  In certain  cases,  the
Partnership  acquired  its  interest  in a Local  Partnership  after  the  Local
Partnership  had placed its Apartment  Complex in service.  In these cases,  the
Partnership  may be allocated Tax Credits only beginning in the month  following
the month in which it acquired  its  interest  and Tax Credits  allocated in any
prior period are not available to the Partnership.

Item 3. Legal Proceedings.

None

Item 4. Submission of Matters to a Vote of Security Holders.

None.
                                     PART II

Item 5. Market for the  Registrant's  Common Equity and Related  Security Holder
Matters.

As of March 31, 2003, the Partnership had issued and outstanding  45,844 Limited
Partnership  Interests,  each representing a $1,000 capital  contribution to the
Partnership,  or an aggregate  capital  contribution of $45,844,000.  All of the
issued  and  outstanding  Limited  Partnership  Interests  have  been  issued to
Independence  Assignor Inc. (the "Assignor Limited Partner"),  which has in turn
issued 45,844 BACs to the purchasers  thereof for an aggregate purchase price of
$45,844,000.  Each BAC  represents  all of the economic and virtually all of the
ownership  rights  attributable  to a Limited  Partnership  Interest held by the
Assignor  Limited  Partner.  BACs  may be  converted  into  Limited  Partnership
Interests at no cost to the holder (other than the payment of transfer costs not
to  exceed  $100),  but  Limited  Partnership  Interests  so  acquired  are  not
thereafter convertible into BACs.

Neither  the  BACs nor the  Limited  Partnership  Interests  are  traded  on any
established  trading market. The Partnership does not intend to include the BACs
for  quotation  on NASDAQ or for  listing  on any  national  or  regional  stock
exchange or any other  established  securities  market.  The Revenue Act of 1987
contained  provisions  which have an adverse  impact on  investors  in "publicly
traded partnerships."  Accordingly,  the General Partner plans to impose limited

                                       6
<PAGE>

restrictions  on the  transferability  of the BACs and the  Limited  Partnership
Interests in secondary market  transactions.  Implementation of the restrictions
should prevent a public trading market from developing and may adversely  affect
the ability of an investor to liquidate  his or her  investment  quickly.  It is
expected that such procedures will remain in effect until such time, if ever, as
further revision of the Revenue Act of 1987 may permit the Partnership to lessen
the scope of the restrictions.

As of May 5, 2003, the Partnership has approximately 2,511 registered holders of
an aggregate of 45,844 BACs.

All  of  the  Partnership's  general  partnership  interests,   representing  an
aggregate capital contribution of $1,000, are held by the General Partner.

There are no material legal  restrictions  in the  Partnership  Agreement on the
ability of the Partnership to make distributions.

The  Partnership has made no  distributions  to the BACs holders as of March 31,
2003. The Partnership  does not anticipate  providing cash  distributions to its
BACs holders other than from net refinancing or sales proceeds.

In January 2001, affiliates of Everest Properties,  Inc. ("Everest") conducted a
tender offer for up to 1,336.16  BACs. In  connection  with a prior tender offer
for  BACs,  an  affiliate  of the  General  Partner  entered  into a  standstill
agreement dated as of April 23, 1997 (The "Standstill"), which precluded Everest
from independently soliciting BACs (by tender offer or otherwise).  At Everest's
request,  the General  Partner caused its affiliate to release  Everest from the
Standstill  for the  limited  purpose of  permitting  Everest to make its tender
offer. In connection with such arrangements,  Everest agreed to cover all of the
Partnership's  expenses  with respect to processing  the tender offer  including
mailing  costs,  legal  fees and  other  administrative  costs  incurred  by the
Partnership.   These  reimbursements  resulted  in  aggregate  payments  to  the
Partnership  of $41,344 which are  reflected as "other  income" on the financial
statements for Fiscal Year 2000.

                                       7
<PAGE>

Item 6. Selected Financial Data.

The  information  set  forth  below  presents  selected  financial  data  of the
Partnership.  Additional  financial  information  is set  forth  in the  audited
financial statements in Item 8 hereof.

<TABLE>
<CAPTION>

                                                  Year Ended March 31,
                         -----------------------------------------------------------------------
OPERATIONS                   2003           2002           2001          2000            1999
----------               -----------    -----------    -----------    -----------    -----------
<S>                      <C>            <C>            <C>            <C>            <C>
Revenues                 $ 5,814,209    $ 5,691,878    $ 5,848,287    $ 5,318,859    $ 3,435,562


Operating expenses        (9,227,715)    (9,032,990)    (9,641,822)    (8,505,735)    (4,682,110)
                         -----------    -----------    -----------    -----------    -----------

Loss before minority
  interest                (3,413,506)    (3,341,112)    (3,793,535)    (3,186,876)    (1,246,548)

Minority interest
  in loss (income)
  of subsidiary
  partnership                 34,355         34,650         19,869          6,438        (21,185)
                         -----------    -----------    -----------    -----------    -----------

Net loss                 $(3,379,151)   $(3,306,462)   $(3,773,666)   $(3,180,438)   $(1,267,733)
                         ===========    ===========    ===========    ===========    ===========

Net loss per weighted
  average  BAC                (72.97)        (71.40)        (81.49)        (68.68)        (27.38)
                         ===========    ===========    ===========    ===========    ===========


<CAPTION>

                                                  Year Ended March 31,
                         -----------------------------------------------------------------------
FINANCIAL POSITION           2003           2002           2001          2000            1999
------------------       -----------    -----------    -----------    -----------    -----------
<S>                      <C>            <C>            <C>            <C>            <C>
Total assets             $75,661,500    $78,765,789    $80,941,604    $86,387,370    $79,501,249
                         ===========    ===========    ===========    ===========    ===========

Total liabilities        $48,094,142    $47,526,993    $46,542,781    $48,314,082    $39,394,161
                         ===========    ===========    ===========    ===========    ===========

Minority interest        $ 1,951,864    $ 2,244,151    $ 2,097,716    $ 1,998,515    $   851,877
                         ===========    ===========    ===========    ===========    ===========

Total partners'
  capital (deficit)      $25,615,494    $28,994,645    $32,301,107    $36,074,773    $39,255,211
                         ===========    ===========    ===========    ===========    ===========

</TABLE>

During the years ended March 31, 2003,  2002 and 2001,  total  assets  decreased
approximately  $3,104,000,  $2,176,000 and $5,446,000  due to  depreciation  and
amortization  and a  reduction  in cash and cash  equivalents.  During the years
ended  March 31,  2000 and 1999  total  assets  increased  primarily  due to the
proceeds  from  mortgage  and  construction  loans  which were  utilized  in the
investment of Local  Partnerships  amounting to  approximately  $10,500,000  and
$3,400,000,  respectively.  For the years  ended  March 31,  2000 and 1999 total
assets and liabilities  increased primarily due to the continued  acquisition of
Local  Partnerships.  For the year ended March 31, 2003, 2002 and 2001, property
and equipment  decreased  approximately  $2,532,000,  $1,376,000  and $1,152,000
primarily due to  depreciation  expense,  and for the years ended March 31, 2000
and  1999  property  and  equipment  increased  approximately   $28,900,000  and
$12,100,000,  respectively. During the year ended March 31, 2003, mortgage notes
decreased  $339,000.  During the year ended March 31,  mortgage notes  decreased
$339,000.  During the years ended March 31, 2002,  2001,  2000 and 1999 mortgage
notes increased  approximately $79,000,  $1,100,000,  $5,000,000 and $1,400,000,
respectively.

                                       8
<PAGE>

<TABLE>
<CAPTION>

                  Selected Quarterly financial Data (Unaudited)

                                              Quarter Ended
                    ----------------------------------------------------------------
OPERATIONS             June 30,      September 30,     December 31,       March 31,
                         2003            2002              2001             2000
----------          -------------    -------------    -------------    -------------
<S>                 <C>              <C>              <C>              <C>
Revenues            $   1,437,589    $   1,447,703    $   1,458,348    $   1,470,569

Operating
  expenses              2,207,677        2,209,901        2,192,489        2,617,648
                    -------------    -------------    -------------    -------------

Loss before
  minority
  interest               (770,088)        (762,198)        (734,141)      (1,147,079)

Minority interest
  in loss of
  subsidiaries              8,216            7,722            2,572           15,845
                    -------------    -------------    -------------    -------------

Net loss            $    (761,872)   $    (754,476)   $    (731,569)   $  (1,131,234)
                    =============    =============    =============    =============

Net loss per
weighted
average BAC         $      (16.45)   $      (16.29)   $      (15.79)   $      (24.44)
                    =============    =============    =============    =============

<CAPTION>

                                              Quarter Ended
                    ----------------------------------------------------------------
OPERATIONS             June 30,      September 30,     December 31,       March 31,
                         2001            2001              2001*            2002*
----------          -------------    -------------    -------------    -------------
<S>                 <C>              <C>              <C>              <C>

Revenues            $   1,460,073    $   1,427,665    $   1,407,158    $   1,396,982

Operating
  expenses              2,379,005        2,422,995        2,166,497        2,064,493
                    -------------    -------------    -------------    -------------

Loss before
  minority
  interest               (918,932)        (995,330)        (759,339)        (667,511)

Minority interest
  in loss of
  subsidiaries              7,566            5,759            6,463           14,862
                    -------------    -------------    -------------    -------------

Net loss            $    (911,366)   $    (989,571)   $    (752,876)   $    (652,649)
                    =============    =============    =============    =============

Net loss per
weighted
average BAC         $      (19.68)   $      (21.37)   $      (16.26)   $      (14.09)
                    =============    =============    =============    =============

</TABLE>

* Reclassified for comparative purposes.

Cash Distributions
------------------

The  Partnership has made no  distributions  to the BACs holders as of March 31,
2003.

                                       9
<PAGE>

Item 7. Management's  Discussion and Analysis of Financial Condition and Results
of Operations.

Liquidity and Capital Resources
-------------------------------

The  Partnership's  primary source of funds include (i) interest earned on Gross
Proceeds  which are  invested in  tax-exempt  money market  instruments  pending
purchase  price  adjustments  of Local  Partnerships  and (ii)  working  capital
reserve  and  interest  thereon.   All  these  sources  are  available  to  meet
obligations of the Partnership.

The Partnership has received  $45,844,000 in gross proceeds for BACs pursuant to
a public  offering,  resulting  in net  proceeds  available  for  investment  of
approximately $36,446,000 after volume discounts,  payment of sales commissions,
acquisition  fees  and  expenses,   organization   and  offering   expenses  and
establishment of a working capital reserve.

As of March 31, 2003, the  Partnership  has invested  approximately  $37,814,000
(including   approximately  $1,161,000  classified  as  a  loan  repayable  from
sale/refinancing  proceeds in accordance with the Contribution Agreement and not
including  acquisition  fees of  approximately  $1,771,000)  of net  proceeds in
fourteen Local Partnerships of which approximately $1,593,000 remains to be paid
to the  Local  Partnerships  (including  approximately  $615,000  being  held in
escrow) as certain  benchmarks,  such as occupancy  level, are attained prior to
the release of the funds.  During the year ended March 31,  2003,  approximately
$236,000 was paid to Local  Partnerships,  including purchase price adjustments.
The Partnership does not anticipate  acquiring  additional  properties,  but the
Partnership may be required to fund potential  purchase price  adjustments based
on tax credit adjustor  clauses.  There were no such adjustments made during the
year ended March 31, 2003.

For the year ended March 31, 2003, cash and cash  equivalents of the Partnership
and  its  fourteen  consolidated  Local  Partnerships  decreased   approximately
($423,000) due to cash used in operating  activities  ($310,000),  repayments of
mortgage  loans  ($339,000)  a  decrease  in   capitalization   of  consolidated
subsidiaries  attributable to minority interest ($258,000) and a net decrease is
due to local general  partners and affiliated  relating to investing  activities
($163,000),  which exceeded a decrease in escrow deposits  relating to investing
activities ($647,000).  Included in the adjustments to reconcile the net loss to
cash used in  operations  is  depreciation  and  amortization  of  approximately
$2,547,000.

A working  capital reserve has been  established  from the  Partnership's  funds
available  for  investment,  which  includes  amounts  which may be required for
potential  purchase price adjustments  based on tax credit adjustor clauses.  At
March 31, 2003,  approximately  $237,000 of this reserve  remained  unused.  The
General  Partner  believes  that  these  reserves,  plus any cash  distributions
received from the  operations of the Local  Partnerships,  will be sufficient to
fund the Partnership's ongoing operations for the foreseeable future. During the
year ended March 31, 2003, there were no distributions from Local  Partnerships.
Management anticipates receiving  distributions in the future, although not to a
level sufficient to permit providing cash distributions to the BACs holders.

The Partnership had negotiated  Operating  Deficit Guaranty  Agreements with the
development stage Local Partnerships by which the general partners of such Local
Partnerships  and/or their affiliates have agreed to fund operating deficits for
a  specified  period  of time.  The  terms  of the  Operating  Deficit  Guaranty
Agreements  vary for each of  these  Local  Partnerships,  with  maximum  dollar
amounts to be funded for a  specified  period of time,  generally  three  years,
commencing  on the  break-even  date.  As of March 31, 2003 and 2002,  the gross
amounts of the Operating Deficit Guarantees aggregate  approximately  $2,159,000
and $2,659,000,  respectively.  All current Operating Deficit  Guarantees expire
within the next two years.  As of March 31,  2003,  $0 has been funded under the
Operating Deficit Guaranty Agreements. Amounts funded under such agreements will

                                       10
<PAGE>

be treated as non-interest  bearing loans, which will be paid only out of 50% of
available cash flow or out of available net sale or refinancing proceeds.

Partnership   management  fees  owed  to  the  General   Partner   amounting  to
approximately  $1,292,000  and $955,000  were accrued and unpaid as of March 31,
2003 and 2002, respectively.

The Partnership has invested all of the net proceeds available for investment in
fourteen Local Partnerships, of which all will generate tax credits in 2003. Due
to increased  market demand for  investments in properties that were eligible to
receive tax credits at the time the  Partnership  was  investing its capital and
limitations on the types of investments which may be obtained by the Partnership
the purchase price for interests in Local  Partnerships  which are qualified for
purchase  by the  Partnership  have  increased.  As a result  of these  changes,
management  does not believe  that the  Partnership  has been able to invest the
proceeds  available for investment in a manner which will enable the Partnership
to achieve tax credits in the range of $140-150 for each $1,000 BAC each year in
which the Partnership is receiving its full entitlement of tax credits.

Management is not aware of any trends or events,  commitments or  uncertainties,
which  have not  otherwise  been  disclosed  that  will or are  likely to impact
liquidity in a material way.  Management  believes the only impact would be from
laws that have not yet been adopted.  The portfolio  will be  diversified by the
location of the  properties  around the United States so that if one area of the
country is experiencing  downturns in the economy,  the remaining  properties in
the   portfolio   may  be   experiencing   upswings.   However  the   geographic
diversification  of the portfolio may not protect against a general  downturn in
the  national  economy.  The tax  credits  will be attached to the project for a
period of ten  years,  and will be  transferable  with the  property  during the
remainder of such ten-year period. If the General Partner determines that a sale
of a property is warranted,  the remaining tax credits would transfer to the new
owner;  thereby adding  significant  value to the property on the market,  which
potential increase in value is not included in the financial  statement carrying
amount.

Results of Operations
---------------------

Property and  equipment  to be held and used are carried at cost which  includes
the purchase price, acquisition fees and expenses,  construction period interest
and any other costs incurred in acquiring the  properties.  The cost of property
and equipment is depreciated over their estimated useful lives using accelerated
and straight-line methods.  Expenditures for repairs and maintenance are charged
to expense as incurred;  major renewals and betterments are capitalized.  At the
time property and  equipment are retired or otherwise  disposed of, the cost and
accumulated   depreciation  are  eliminated  from  the  assets  and  accumulated
depreciation accounts and the profit or loss on such disposition is reflected in
earnings.  A loss on impairment of assets is recorded when management  estimates
amounts  recoverable  through  future  operations and sale of the property on an
undiscounted basis are below depreciated cost. At that time property investments
themselves are reduced to estimated fair value  (generally using discounted cash
flows) when the property is considered to be impaired and the  depreciated  cost
exceeds estimated fair value.

Through March 31, 2003, the  Partnership has not recorded any loss on impairment
of assets or reductions to estimated fair value.

The net loss for the years ended March 31, 2003, 2002, 2001 totaled  $3,379,151,
$3,306,462 and $3,773,666, respectively.

The  Partnership  and BACs holders  began  recognizing  Housing Tax Credits with
respect  to a  property  when the credit  period  for such  property  commenced.
Because of the time  required  for the  acquisition,  completion  and rent-up of
properties,  the amount of Tax Credits per BAC has gradually  increased over the

                                       11
<PAGE>

first three years of the Partnership.  Housing Tax Credits not recognized in the
first  three  years will be  recognized  in the 11th  through  13th  years.  The
Partnership  generated  $5,356,758,  $5,356,758  and  $5,506,354  of Housing Tax
Credits during the 2002, 2001 and 2000 tax years, respectively.

The Partnership's results of operations for the years ended March 31, 2003, 2002
and 2001 consisted  primarily of the results of the Partnership's  investment in
fourteen  consolidated  Local  Partnerships.  The majority of Local  Partnership
income  continues  to be in the form of  rental  income  with the  corresponding
expenses being divided among operations, depreciation and mortgage interest.

2003 vs. 2002
-------------

Rental income  increased  approximately  3% for the year ended March 31, 2003 as
compared to the  corresponding  period  ended March 31, 2002,  primarily  due to
rental rate increases.

Other income decreased  approximately  $37,000 for the year ended March 31, 2003
as compared to the corresponding period ended March 31, 2002, primarily due to a
decrease in interest  earned on cash and equivalents due to lower interest rates
and smaller balances at the Local Partnerships and at the Partnership level.

Total expenses,  excluding general and  administrative,  repairs and maintenance
and  taxes  and  insurance,  remained  fairly  consistent  with  a  decrease  of
approximately  1%  for  the  year  ended  March  31,  2003  as  compared  to the
corresponding period ended March 31, 2002.

General and administrative  increased  approximately $293,000 for the year ended
March 31, 2003 as compared to the  corresponding  period  ended March 31,  2002,
primarily  due  to  one-time   administrative   incentive   fees  at  two  local
partnerships.

Repairs and maintenance  decreased  approximately  $124,000,  for the year ended
March 31, 2003 as compared to the  corresponding  period  ended March 31,  2002,
primarily  due to a decrease in security  and  exterminating  costs at one Local
Partnership.

Taxes  increased  approximately  $44,000  for the year ended  March 31,  2003 as
compared to the  corresponding  period ended March 31, 2002,  primarily due to a
payment of back property taxes by one Local Partnership.

Insurance increased  approximately $71,000, for the year ended March 31, 2003 as
compared to the corresponding  period ended March 31, 2002,  primarily due to an
increase in liability insurance premiums at the local partnerships.

2002 vs. 2001
-------------

Rental income  increased  approximately  4% for the year ended March 31, 2002 as
compared to the  corresponding  period  ended March 31, 2001,  primarily  due to
rental rate increases.

Other income decreased  approximately $373,000 for the year ended March 31, 2002
as compared to the corresponding  period ended March 31, 2001,  primarily due to
the  abatement of prior year's real estate tax at two Local  Partnerships  and a
decrease in interest earned on cash and cash equivalents due to smaller balances
at the Partnership level.

Total expenses,  excluding general and administrative,  repairs and maintenance,
operating  and  interest,   remained  fairly  consistent  with  an  increase  of
approximately  1%  for  the  year  ended  March  31,  2002  as  compared  to the
corresponding period ended March 31, 2001.

General and administrative  decreased  approximately $449,000 for the year ended
March 31, 2002 as compared to the  corresponding  period  ended March 31,  2001,
primarily due to the  elimination of  development  fees due to the completion of
the rehabilitation phase at one Local Partnership,  reduced management fees at a

                                       12
<PAGE>

second Local Partnership and the reduction of legal expense due to no properties
being purchased at the Partnership level.

Repairs and  maintenance  increased  approximately  $164,000  for the year ended
March 31, 2002 as compared to the  corresponding  period  ended March 31,  2001,
primarily  due to an increase in  security  at one Local  Partnership,  interior
painting and leak repairs at a second Local Partnership and exterminating  costs
at a third Local Partnership.

Operating increased  approximately  $82,000 for the year ended March 31, 2002 as
compared to the corresponding  period ended March 31, 2001,  primarily due to an
increase  in  utility  cost  and  usage  at  three  Local  Partnerships  and  an
underaccrual in 2000 at a forth Local Partnership.

Interest decreased  approximately  $459,000 for the year ended March 31, 2002 as
compared to the corresponding  period ended March 31, 2001, primarily due to the
conversion  of  construction  loans  to  mortgages  at two  Local  Partnerships,
underaccruals  in  1999 at a  third  and  fourth  Local  Partnership  and a rate
reduction at a fifth Local Partnership.

Critical Accounting Estimates
-----------------------------

The preparation of consolidated financial statements requires management to make
estimates and assumptions.  These estimates and assumptions  affect the reported
amounts  of assets and  liabilities  and  disclosure  of  contingent  assets and
liabilities  at the  date  of the  consolidated  financial  statements  and  the
reported  amounts of revenue and expenses  during the reporting  period.  Actual
results could differ from those estimates.  The following accounting estimate is
considered critical by the Partnership.

The  Partnership is required to assess  potential  impairments to its long-lived
assets, which is primarily property and equipment.  If impairment indicators are
present,  the Partnership must measure the fair value of the assets to determine
if adjustments are to be recorded.

Other
-----

The Partnership's  investment as a limited partner in the Local  Partnerships is
subject to the risks of potential  losses arising from  management and ownership
of improved real estate.  The Partnership's  investments also could be adversely
affected by poor economic  conditions  generally,  which could increase  vacancy
levels and rental payment defaults and by increased operating  expenses,  any or
all of which could threaten the financial  viability of one or more of the Local
Partnerships.

There also are  substantial  risks  associated  with the  operation of Apartment
Complexes   receiving   government   assistance.   These  include   governmental
regulations  concerning tenant eligibility,  which may make it more difficult to
rent apartments in the complexes;  difficulties in obtaining government approval
for rent  increases;  limitations  on the  percentage  of  income  which low and
moderate income tenants may pay as rent; the  possibility  that Congress may not
appropriate  funds to enable HUD to make the rental  assistance  payments it has
contracted to make; and that when the rental  assistance  contracts expire there
may not be  market  demand  for  apartments  at  full  market  rents  in a Local
Partnership's Apartment Complex.

The Local  Partnerships  are impacted by inflation  in several  ways.  Inflation
allows for  increases in rental rates  generally to reflect the impact of higher
operating and replacement  costs.  Inflation also affects the Local Partnerships
adversely by increasing operating costs as, for example, for such items as fuel,
utilities and labor.  However,  continued inflation should allow for appreciated
values of the Local  Partnerships'  Apartment Complexes over a period of time as
rental revenues and replacement costs continue to increase.

                                       13
<PAGE>

Item 7A. Quantitative and Qualitative Disclosures About Market Risk
-------------------------------------------------------------------

None.

                                       14
<PAGE>

Item 8.  Financial Statements and Supplementary Data.

<TABLE>
<CAPTION>
                                                                          Sequential
                                                                             Page
                                                                          ----------
<S>                                                                           <C>
(a) 1.   Consolidated Financial Statements

         Independent Auditors' Report                                         16

         Consolidated Balance Sheets at March 31, 2003 and 2002               49

         Consolidated Statements of Operations for the Years Ended
         March 31, 2003, 2002 and 2001                                        50

         Consolidated Statements of Changes in Partners' Capital (Deficit)
         for the Years Ended  March 31, 2003, 2002 and 2001                   51

         Consolidated Statements of Cash Flows for the Years Ended
         March 31, 2003, 2002 and 2001                                        52

         Notes to Consolidated Financial Statements                           54

</TABLE>

                                       15
<PAGE>

                          INDEPENDENT AUDITORS' REPORT
                          ----------------------------



TO THE PARTNERS OF
INDEPENDENCE TAX CREDIT PLUS L.P. IV AND SUBSIDIARIES


     We  have  audited  the   accompanying   consolidated   balance   sheets  of
INDEPENDENCE  TAX CREDIT  PLUS L.P.  IV AND  SUBSIDIARIES  (a  Delaware  limited
partnership)  as of  March  31,  2003 and  2002,  and the  related  consolidated
statements of operations,  changes in partners' capital (deficit) and cash flows
for the years ended March 31, 2003, 2002 and 2001.  These  financial  statements
are the responsibility of the Partnership's management. Our responsibility is to
express an opinion on these financial statements based on our audits. We did not
audit the  financial  statements  of thirteen,  thirteen  and twelve  subsidiary
partnerships, whose losses aggregated $2,801,465,  $2,718,128 and $3,049,692 for
the years ended March 31, 2003,  2002 and 2001,  respectively,  and whose assets
constituted  97% and 92% of  consolidated  assets  at March  31,  2003 and 2002,
respectively. Those statements were audited by other auditors whose reports have
been  furnished  to us, and our  opinion,  insofar as it relates to the  amounts
included for these  subsidiary  partnerships,  is based solely on the reports of
the other auditors.

     We conducted our audits in accordance  with  auditing  standards  generally
accepted in the United States of America.  Those standards  require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial statement presentation.  We believe that our audits and the reports of
the other auditors provide a reasonable basis for our opinion.

     In our opinion,  based on our audits and the reports of the other auditors,
the consolidated  financial  statements referred to above present fairly, in all
material  respects,  the financial position of INDEPENDENCE TAX CREDIT PLUS L.P.
IV AND  SUBSIDIARIES  as of March 31,  2003 and 2002,  and the  results of their
operations  and their cash flows for the years  ended March 31,  2003,  2002 and
2001 in conformity with accounting  principles  generally accepted in the United
States of America.



/s/ Friedman Alpren & Green LLP
Friedman Alpren & Green LLP
New York, New York
May 12, 2003

                                       16
<PAGE>

[LETTERHEAD OF REZNICK FEDDER & SILVERMAN]

INDEPENDENT AUDITORS' REPORT

To the Partners BX 8A Team Associates, L.P.

We have audited the accompanying  balance sheet of BX 8A Team  Associates,  L.P.
for the years ended  December 31, 2002 and 2001,  and the related  statements of
operations,  changes in partners'  equity  (deficit) and cash flows for the year
then  ended.   These  financial   statements  are  the   responsibility  of  the
Partnership's  management.  Our responsibility is to express an opinion on these
financial statements based on our audits.

We conducted our audit in accordance with auditing standards  generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audits to obtain  reasonable  assurance  about whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects, the financial position of BX 8A Team Associates,  L.P. as
of December 31, 2002 and 2001,  and the results of its  operations  and its cash
flows for the  years  then  ended,  in  conformity  with  accounting  principles
generally accepted in the United States of America.

Our  audits  were  made for the  purpose  of  forming  an  opinion  on the basic
financial  statements taken as a whole. The supplemental  information on page 16
is presented for purposes of  additional  analysis and is not a required part of
the basic  financial  statements.  Such  information  has been  subjected to the
auditing procedures applied in the audit of the basic financial  statements and,
in our opinion,  is fairly  stated in all  material  respects in relation to the
basic financial statements taken as a whole.

/s/ Reznick Fedder & Silverman
Atlanta, Georgia
February 8, 2003

                                       17
<PAGE>

[LETTERHEAD OF REZNICK FEDDER & SILVERMAN]

INDEPENDENT AUDITORS' REPORT

To the Partners BX 8A Team Associates, L.P.

We have audited the accompanying  balance sheet of BX 8A Team  Associates,  L.P.
for the year ended December 31, 2001, and the related  statements of operations,
statements of partners' equity (deficit) and cash flows for the year then ended.
These  financial   statements  are  the   responsibility  of  the  Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements  based  on  our  audits.  The  financial  statements  of BX  8A  Team
Associates,  L.P. as of December 31, 2000 were audited by other  auditors  whose
report  dated  February  9,  2001  expressed  an  unqualified  opinion  on those
financial statements.

We conducted our audit in accordance with auditing standards  generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audit  provides  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects, the financial position of BX 8A Team Associates,  L.P. as
of December  31,  2001,  and the results of its  operations,  the changes in its
partners'  equity  (deficit)  and its cash  flows  for the year then  ended,  in
conformity with accounting principles generally accepted in the United States of
America.

Our audit was made for the purpose of forming an opinion on the basic  financial
statements  taken  as a  whole.  The  supplemental  information  on  page  16 is
presented for purposes of additional  analysis and is not a required part of the
basic financial statements.  Such information has been subjected to the auditing
procedures  applied in the audit of the basic  financial  statements and, in our
opinion,  is fairly  stated in all  material  respects  in relation to the basic
financial statements taken as a whole.

/s/ Reznick Fedder & Silverman
Atlanta, Georgia
February 7, 2002

                                       18
<PAGE>

[LETTERHEAD OF REZNICK FEDDER & SILVERMAN]

INDEPENDENT AUDITORS' REPORT

To the Partners
Westminster Park Plaza

We have audited the accompanying  balance sheets of Westminster Park Plaza, L.P.
as of December  31, 2002 and 2001,  and the related  statements  of  operations,
partners'  deficit  and cash flows for the years  then  ended.  These  financial
statements  are  the  responsibility  of  the  Partnership's   management.   Our
responsibility  is to express an opinion on these financial  statements based on
our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audits to obtain  reasonable  assurance  about whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects, the financial position of Westminster Park Plaza, L.P. as
of December 31, 2002 and 2001, and the results of its operations, the changes in
partners'  deficit  and its cash flows for the years then ended,  in  conformity
with accounting principles generally accepted in the United States of America.

Our  audits  were  made for the  purpose  of  forming  an  opinion  on the basic
financial statements taken as a whole. The supplemental information is presented
for  purposes of  additional  analysis  and is not a required  part of the basic
financial  statements.  Such  information  has been  subjected  to the  auditing
procedures  applied in the audits of the basic financial  statements and, in our
opinion,  is fairly  stated in all  material  respects  in relation to the basic
financial statements taken as a whole.

/s/ Reznick Fedder & Silverman
Atlanta, Georgia
January 16, 2003

                                       19
<PAGE>

[LETTERHEAD OF REZNICK FEDDER & SILVERMAN]

INDEPENDENT AUDITORS' REPORT

To the Partners
Westminster Park Plaza

We have audited the accompanying  balance sheets of Westminster Park Plaza, L.P.
as of December  31, 2001 and 2000,  and the related  statements  of  operations,
partners'  equity  (deficit)  and cash  flows for the years  then  ended.  These
financial statements are the responsibility of the Partnership's management. Our
responsibility  is to express an opinion on these financial  statements based on
our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audits to obtain  reasonable  assurance  about whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects, the financial position of Westminster Park Plaza, L.P. as
of December  31, 2001 and 2000,  and the  results of its  operations,  partners'
equity (deficit) and its cash flows for the years then ended, in conformity with
accounting principles generally accepted in the United States of America.

Our  audits  were  made for the  purpose  of  forming  an  opinion  on the basic
financial statements taken as a whole. The supplemental information is presented
for  purposes of  additional  analysis  and is not a required  part of the basic
financial  statements.  Such  information  has been  subjected  to the  auditing
procedures  applied in the audits of the basic financial  statements and, in our
opinion,  is fairly  stated in all  material  respects  in relation to the basic
financial statements taken as a whole.

/s/ Reznick Fedder & Silverman
Atlanta, Georgia
January 30, 2002

                                       20
<PAGE>

[LETTERHEAD OF MCDANIEL & HALLSTROM]

To the Partners
FAWCETT STREET LIMITED PARTNERSHIP
Tacoma, Washington

INDEPENDENT AUDITOR'S REPORT

We have  audited  the  accompanying  balance  sheets of FAWCETT  STREET  LIMITED
PARTNERSHIP  as of December  31, 2002 and 2001,  and the related  statements  of
operations,  partners'  equity and cash flows for the years  then  ended.  These
financial statements are the responsibility of the Partnership's management. Our
responsibility  is to express an opinion on these financial  statements based on
our audit.

We conducted our audit in accordance with auditing standards  generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audit  provides  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all  material  respects,  the  financial  position  of  FAWCETT  STREET  LIMITED
PARTNERSHIP  as of December 31, 2002 and 2001, and the results of its operations
and its cash  flows for the  years  then  ended in  conformity  with  accounting
principles generally accepted in the United States of America.

/s/ McDaniel & Hallstrom, CPA's
Belfair, Washington
February 1, 2003

                                       21
<PAGE>

[LETTERHEAD OF MCDANIEL & HALLSTROM]

To the Partners
FAWCETT STREET LIMITED PARTNERSHIP
Tacoma, Washington

INDEPENDENT AUDITOR'S REPORT

We have  audited  the  accompanying  balance  sheets of FAWCETT  STREET  LIMITED
PARTNERSHIP  as of December  31, 2001 and 2000,  and the related  statements  of
operations,  partners'  equity and cash flows for the years  then  ended.  These
financial statements are the responsibility of the Partnership's management. Our
responsibility  is to express an opinion on these financial  statements based on
our audit.

We conducted our audit in accordance with auditing standards  generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audit  provides  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all  material  respects,  the  financial  position  of  FAWCETT  STREET  LIMITED
PARTNERSHIP  as of December 31, 2001 and 2000, and the results of its operations
and its cash  flows for the  years  then  ended in  conformity  with  accounting
principles generally accepted in the United States of America.

/s/ McDaniel & Hallstrom, CPA's
Belfair, Washington
February 4, 2002

                                       22
<PAGE>

[LETTERHEAD OF CLIFFORD R. BENN]

INDEPENDENT AUDITOR'S REPORT

General Partner
Figueroa Senior Housing Limited Partnership
Los Angeles, California

I have audited the balance sheet of Figueroa Senior Housing Limited  Partnership
at December 31, 2002, and the related  statements of loss,  changes in partners'
capital,  and cash flow for the year then ended. These financial  statements are
the responsibility of Figueroa Senior Housing Limited Partnership's  management.
My responsibility  is to express an opinion on these financial  statements based
on my audit.

I conducted my audit in accordance with generally  accepted  auditing  standards
used in the United States of America.  Those  standards  require that I plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatements.  An audit includes examining on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial statement presentation.  I believe that my audit provides a reasonable
basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all
material  respects,  the financial  position of Figueroa  Senior Housing Limited
Partnership at December 31, 2002, and the results of its operations for the year
then ended in conformity with generally accepted  accounting  principles used in
the United States of America.

/s/ Clifford Benn, CPA
March 3, 2003
Carson, California

                                       23
<PAGE>

[LETTERHEAD OF CLIFFORD R. BENN]

INDEPENDENT AUDITOR'S REPORT

General Partner
Figueroa Senior Housing Limited Partnership
Los Angeles, California

I have audited the balance sheet of Figueroa Senior Housing Limited  Partnership
at December 31, 2001, and the related  statements of loss,  changes in partners'
capital,  and cash flow for the year then ended. These financial  statements are
the responsibility of Figueroa Senior Housing Limited Partnership's  management.
My responsibility  is to express an opinion on these financial  statements based
on my audit.

I conducted my audit in accordance with generally  accepted auditing  standards.
Those standards  require that I plan and perform the audit to obtain  reasonable
assurance   about  whether  the  financial   statements  are  free  of  material
misstatements.  An audit includes examining on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
I believe that my audit provides a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all
material  respects,  the financial  position of Figueroa  Senior Housing Limited
Partnership  at December 31, 2001 and the results of its operations for the year
then ended in conformity with generally accepted accounting principles.

/s/ Clifford Benn, CPA
February 27, 2002
Carson, California

                                       24
<PAGE>

[LETTERHEAD OF CLIFFORD R. BENN]

INDEPENDENT AUDITOR'S REPORT

General Partner
Figueroa Senior Housing Limited Partnership
Los Angeles, California

I have audited the balance sheet of Figueroa Senior Housing Limited  Partnership
at December 31, 2000, and the related  statements of loss,  changes in partners'
capital,  and cash flow for the year then ended. These financial  statements are
the responsibility of Figueroa Senior Housing Limited Partnership's  management.
My responsibility  is to express an opinion on these financial  statements based
on my audit.

I conducted my audit in accordance with generally  accepted auditing  standards.
Those standards  require that I plan and perform the audit to obtain  reasonable
assurance   about  whether  the  financial   statements  are  free  of  material
misstatements.  An audit includes examining on a test basis, evidence supporting
the amounts and disclosures in the financial  statements.  An audit also include
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
I believe that my audit provides a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all
material  respects,  the financial  position of Figueroa  Senior Housing Limited
Partnership  at December 31, 2000 and the results of its operations for the year
then ended in conformity with generally accepted accounting principles.

/s/ Clifford Benn, CPA
Carson, California
February 9, 2001

                                       25
<PAGE>

[LETTERHEAD OF CLIFFORD R. BENN]

INDEPENDENT AUDITOR'S REPORT

General Partner
NNPHI Senior Housing, L.P.
Los Angeles, California

I have audited the balance sheet of NNPHI Senior  Housing,  L.P. at December 31,
2002, and the related statements of loss, changes in partners' capital, and cash
flow for the year then ended. These financial  statements are the responsibility
of NNPHI Senior Housing,  L.P.'s management.  My responsibility is to express an
opinion on these financial statements based on my audit.

I conducted my audit in accordance with generally  accepted  auditing  standards
used in the United States of America.  Those  standards  require that I plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatements.  An audit includes examining on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial statement presentation.  I believe that my audit provides a reasonable
basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all
material  respects,  the  financial  position of NNPHI Senior  Housing,  L.P. at
December 31, 2002 and the results of its  operations  for the year then ended in
conformity  with generally  accepted  accounting  principles  used in the United
States of America.

/s/ Clifford Benn, CPA
February 17, 2003
Carson, California

                                       26
<PAGE>

[LETTERHEAD OF CLIFFORD R. BENN]

INDEPENDENT AUDITOR'S REPORT

General Partner
NNPHI Senior Housing, L.P.
Los Angeles, California

I have audited the balance sheet of NNPHI Senior  Housing,  L.P. at December 31,
2001, and the related statements of loss, changes in partners' capital, and cash
flow for the year then ended. These financial  statements are the responsibility
of NNPHI Senior Housing,  L.P.'s management.  My responsibility is to express an
opinion on these financial statements based on my audit.

I conducted my audit in accordance with generally  accepted auditing  standards.
Those standards  require that I plan and perform the audit to obtain  reasonable
assurance   about  whether  the  financial   statements  are  free  of  material
misstatements.  An audit includes examining on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
I believe that my audit provides a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all
material  respects,  the  financial  position of NNPHI Senior  Housing,  L.P. at
December 31, 2001 and the results of its  operations  for the year then ended in
conformity with generally accepted accounting principles.

/s/ Clifford Benn, CPA
January 31, 2002
Carson, California

                                       27
<PAGE>

[LETTERHEAD OF CLIFFORD R. BENN]

INDEPENDENT AUDITOR'S REPORT

General Partner
NNPHI Senior Housing, L.P.
Los Angeles, California

I have audited the balance sheet of NNPHI Senior  Housing,  L.P. at December 31,
2000, and the related statements of loss, changes in partners' capital, and cash
flow for the year then ended. These financial  statements are the responsibility
of NNPHI Senior Housing,  L.P.'s management.  My responsibility is to express an
opinion on these financial statements based on my audit.

I conducted my audit in accordance with generally  accepted auditing  standards.
Those standards  require that I plan and perform the audit to obtain  reasonable
assurance   about  whether  the  financial   statements  are  free  of  material
misstatements.  An audit includes examining on a test basis, evidence supporting
the amounts and disclosures in the financial  statements.  An audit also include
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
I believe that my audit provides a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all
material  respects,  the  financial  position of NNPHI Senior  Housing,  L.P. at
December 31, 2000 and the results of its  operations  for the year then ended in
conformity with generally accepted accounting principles.

/s/ Clifford Benn, CPA
Carson, California
February 14, 2001

                                       28
<PAGE>

[LETTERHEAD OF REZNICK FEDDER & SILVERMAN]

INDEPENDENT AUDITORS' REPORT

To the Partners
Belmont/McBride Apartments
Urban Renewal Associates Limited Partnership

We have audited the accompanying  balance sheets of  Belmont/McBride  Apartments
Urban Renewal Associates  Limited  Partnership as of December 31, 2002 and 2001,
and the related  statements of operations,  partners'  equity (deficit) and cash
flows  for  the  years  then  ended.   These   financial   statements   are  the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audits to obtain  reasonable  assurance  about whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material  respects,  the financial  position of  Belmont/McBride  Apartments
Urban Renewal Associates  Limited  Partnership as of December 31, 2002 and 2001,
and the results of its operations, the changes in partners' equity (deficit) and
cash flows for the years then ended, in conformity  with  accounting  principles
generally accepted in the United States of America.

/s/ Reznick Fedder & Silverman
Bethesda, Maryland
January 24, 2003

                                       29
<PAGE>

[LETTERHEAD OF REZNICK FEDDER & SILVERMAN]

INDEPENDENT AUDITORS' REPORT

To the Partners
Belmont/McBride Apartments
Urban Renewal Associates Limited Partnership

We have audited the accompanying  balance sheets of  Belmont/McBride  Apartments
Urban Renewal Associates  Limited  Partnership as of December 31, 2001 and 2000,
and the related  statements of operations,  partners'  equity (deficit) and cash
flows  for  the  years  then  ended.   These   financial   statements   are  the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audits to obtain  reasonable  assurance  about whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material  respects,  the financial  position of  Belmont/McBride  Apartments
Urban Renewal Associates  Limited  Partnership as of December 31, 2001 and 2000,
and the results of its operations, the changes in partners' equity (deficit) and
cash flows for the years then ended, in conformity  with  accounting  principles
generally accepted in the United States of America.

/s/ Reznick Fedder & Silverman
Bethesda, Maryland
January 19, 2002

                                       30
<PAGE>

[LETTERHEAD OF COLE, EVANS & PETERSON]

INDEPENDENT   AUDITORS'  REPORT  ON  THE  BASIC  FINANCIAL
STATEMENTS AND SUPPLEMENTAL INFORMATION

To the Partners
New Zion Apartments Limited Partnership
Shreveport, Louisiana

We have audited the  accompanying  balance sheet of New Zion Apartments  Limited
Partnership,  HUD Project No. LA48E000011, at December 31, 2002, and the related
statements of income,  partners' capital and cash flows for the year then ended.
These  financial   statements  are  the   responsibility  of  the  Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audit.

We conducted our audit in accordance with generally  accepted auditing standards
and Government  Auditing  Standards,  issued by the  Comptroller  General of the
United  States.  Those  standards  require that we plan and perform the audit to
obtain reasonable  assurance about whether the financial  statements are free of
material  misstatement.  An audit includes examining,  on a test basis, evidence
supporting  the amounts and  disclosures in the financial  statements.  An audit
also includes assessing the accounting principles used and significant estimates
made by  management,  as well as  evaluating  the  overall  financial  statement
presentation.  We believe  that our audit  provides a  reasonable  basis for our
opinion.

In our opinion,  the  financial  statements  referred to in the first  paragraph
above present fairly, in all material  respects,  the financial  position of New
Zion Apartments Limited  Partnership,  HUD Project No. LA48E000011,  at December
31, 2002 and the results of its operations,  changes in capital,  and cash flows
for the year then ended in conformity with U.S.  generally  accepted  accounting
principles.

Our audit was made  primarily for the purpose of forming an opinion on the basic
financial  statements for the year ended December 31, 2002 taken as a whole. The
supplementary  Schedules 1, 2 and 3 are  presented  for  purposes of  additional
analysis and are not a required  part of the basic  financial  statements.  Such
information has been subjected to the audit  procedures  applied in the audit of
the basic  financial  statements  and, in our opinion,  is fairly  stated in all
material  respects  in  relation to the basic  financial  statements  taken as a
whole.

In accordance with Government Auditing  Standards,  we have also issued a report
dated  February 10, 2003 on our  consideration  of New Zion  Apartments  Limited
Partnership's internal control, and on its compliance with certain provisions of
laws, regulations,  contracts, and grants. Those reports are an integral part of
an audit performed in accordance with Government  Auditing  Standards and should
be read in conjunction with this report in considering the results of our audit.

/s/ Cole, Evans & Peterson
Shreveport, Louisiana
Federal ID No. 72-0506596
Lead Auditor: Steven W. Hedgepeth
February 10, 2003

                                       31
<PAGE>

[LETTERHEAD OF COLE, EVANS & PETERSON]

INDEPENDENT   AUDITORS'  REPORT  ON  THE  BASIC  FINANCIAL
STATEMENTS AND SUPPLEMENTAL INFORMATION

To the Partners
New Zion Apartments Limited Partnership
Shreveport, Louisiana

We have audited the  accompanying  balance sheet of New Zion Apartments  Limited
Partnership,  HUD Project No. LA48E000011, at December 31, 2001, and the related
statements of income,  partners' capital and cash flows for the year then ended.
These  financial   statements  are  the   responsibility  of  the  Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audit.

We conducted our audit in accordance with generally  accepted auditing standards
and Government  Auditing  Standards,  issued by the  Comptroller  General of the
United  States.  Those  standards  require that we plan and perform the audit to
obtain reasonable  assurance about whether the financial  statements are free of
material  misstatement.  An audit includes examining,  on a test basis, evidence
supporting  the amounts and  disclosures in the financial  statements.  An audit
also includes assessing the accounting principles used and significant estimates
made by  management,  as well as  evaluating  the  overall  financial  statement
presentation.  We believe  that our audit  provides a  reasonable  basis for our
opinion.

In our opinion,  the  financial  statements  referred to in the first  paragraph
above present fairly, in all material  respects,  the financial  position of New
Zion Apartments Limited  Partnership,  HUD Project No. LA48E000011,  at December
31, 2001 and the results of its operations,  changes in capital,  and cash flows
for the year then ended in conformity with U.S.  generally  accepted  accounting
principles.

Our audit was made  primarily for the purpose of forming an opinion on the basic
financial  statements for the year ended December 31, 2001 taken as a whole. The
supplementary  Schedules 1, 2 and 3 are  presented  for  purposes of  additional
analysis and are not a required  part of the basic  financial  statements.  Such
information has been subjected to the audit  procedures  applied in the audit of
the basic  financial  statements  and, in our opinion,  is fairly  stated in all
material  respects  in  relation to the basic  financial  statements  taken as a
whole.

In accordance  with Government  Auditing  Standards and the  Consolidated  Audit
Guide for Audits of HUD Programs  issued by the U.S.  Department  of Housing and
Urban  Development,  we have also issued a report dated  February 8, 2002 on our
consideration of New Zion Apartments Limited Partnership's internal control, and
reports dated  February 8, 2002, on its  compliance  with laws and  regulations,
compliance   with   specific   requirements   applicable  to  Fair  Housing  and
Non-Discrimination,  and  compliance  with specific  requirements  applicable to
major  HUD-assisted  programs.  Those  reports are an integral  part of an audit
performed in accordance with Government Auditing Standards and should be read in
conjunction with this report in considering the results of our audit.

/s/ Cole, Evans & Peterson
Shreveport, Louisiana
Federal ID No. 72-0506596
Lead Auditor: Steven W. Hedgepeth
February 8, 2002

                                       32
<PAGE>


[LETTERHEAD OF COLE, EVANS & PETERSON]

INDEPENDENT   AUDITORS'  REPORT  ON  THE  BASIC  FINANCIAL
STATEMENTS AND SUPPLEMENTAL INFORMATION

To the Partners
New Zion Apartments Limited Partnership
Shreveport, Louisiana

We have audited the  accompanying  balance sheet of New Zion Apartments  Limited
Partnership,  HUD Project No. LA48E000011, at December 31, 2000, and the related
statements of income,  partners' capital and cash flows for the year then ended.
These  financial   statements  are  the   responsibility  of  the  Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audit.

We conducted our audit in accordance with generally  accepted auditing standards
and Government  Auditing  Standards,  issued by the  Comptroller  General of the
United  States.  Those  standards  require that we plan and perform the audit to
obtain reasonable  assurance about whether the financial  statements are free of
material  misstatement.  An audit includes examining,  on a test basis, evidence
supporting  the amounts and  disclosures in the financial  statements.  An audit
also includes assessing the accounting principles used and significant estimates
made by  management,  as well as  evaluating  the  overall  financial  statement
presentation.  We believe  that our audit  provides a  reasonable  basis for our
opinion.

In our opinion,  the  financial  statements  referred to in the first  paragraph
above present fairly, in all material  respects,  the financial  position of New
Zion Apartments Limited  Partnership,  HUD Project No. LA48E000011,  at December
31, 2000 and the results of its operations,  changes in capital,  and cash flows
for the year  then  ended  in  conformity  with  generally  accepted  accounting
principles.

Our audit was made  primarily for the purpose of forming an opinion on the basic
financial  statements for the year ended December 31, 2000 taken as a whole. The
supplementary  Schedules 1, 2 and 3 are  presented  for  purposes of  additional
analysis and are not a required  part of the basic  financial  statements.  Such
information has been subjected to the audit  procedures  applied in the audit of
the basic  financial  statements  and, in our opinion,  is fairly  stated in all
material  respects  in  relation to the basic  financial  statements  taken as a
whole.

In accordance  with Government  Auditing  Standards and the  Consolidated  Audit
Guide for Audits of HUD Programs  issued by the U.S.  Department  of Housing and
Urban  Development,  we have also issued a report dated February 16, 2001 on our
consideration of New Zion Apartments Limited Partnership's internal control, and
reports dated  February 16, 2001, on its compliance  with laws and  regulations,
compliance   with   specific   requirements   applicable  to  Fair  Housing  and
Non-Discrimination,  and  compliance  with specific  requirements  applicable to
major  HUD-assisted  programs.  Those  reports are an integral  part of an audit
performed in accordance with Government Auditing Standards and should be read in
conjunction with this report in considering the results of our audit.

/s/ Cole, Evans & Peterson
Federal ID No. 72-0506596
Lead Auditor: Steven W. Hedgepeth
February 16, 2001
Shreveport, Louisiana

                                       33
<PAGE>

[LETTERHEAD OF REZNICK FEDDER & SILVERMAN]

INDEPENDENT AUDITORS' REPORT

To the Partners
Bakery Village Urban Renewal Associates, L.P.

We have audited the  accompanying  balance sheet of Bakery Village Urban Renewal
Associates,  L.P.  as of  December  31,  2002,  and the  related  statements  of
operations,  partners'  equity  and cash  flows for the year then  ended.  These
financial statements are the responsibility of the Partnership's management. Our
responsibility  is to express an opinion on these financial  statements based on
our audit.

We conducted our audit in accordance with auditing standards  generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audit  provides  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material  respects,  the financial  position of Bakery Village Urban Renewal
Associates, L.P. as of December 31, 2002, and the results of its operations, the
changes  in  partners'  equity and its cash  flows for the year then  ended,  in
conformity with accounting principles generally accepted in the United States of
America.

/s/ Reznick Fedder & Silverman
Baltimore, Maryland
January 31, 2003

                                       34
<PAGE>

[LETTERHEAD OF REZNICK FEDDER & SILVERMAN]

INDEPENDENT AUDITORS' REPORT

To the Partners
Bakery Village Urban Renewal Associates, L.P.

We have audited the  accompanying  balance sheet of Bakery Village Urban Renewal
Associates,  L.P.  as of  December  31,  2001,  and the  related  statements  of
operations,  partners'  equity  and cash  flows for the year then  ended.  These
financial statements are the responsibility of the Partnership's management. Our
responsibility  is to express an opinion on these financial  statements based on
our audit.

We conducted our audit in accordance with auditing standards  generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audit  provides  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material  respects,  the financial  position of Bakery Village Urban Renewal
Associates, L.P. as of December 31, 2001, and the results of its operations, the
changes  in  partners'  equity and its cash  flows for the year then  ended,  in
conformity with accounting principles generally accepted in the United States of
America.

/s/ Reznick Fedder & Silverman
Baltimore, Maryland
January, 17, 2002

                                       35
<PAGE>

[LETTERHEAD OF REZNICK FEDDER & SILVERMAN]

INDEPENDENT AUDITORS' REPORT

To the Partners
Bakery Village Urban Renewal Associates, L.P.

We have audited the  accompanying  balance sheet of Bakery Village Urban Renewal
Associates,  L.P.  as of  December  31,  2000,  and the  related  statements  of
operations,  partners'  equity  and cash  flows for the year then  ended.  These
financial statements are the responsibility of the Partnership's management. Our
responsibility  is to express an opinion on these financial  statements based on
our audit.

We conducted our audit in accordance with generally accepted auditing standards.
Those standards  require that we plan and perform the audit to obtain reasonable
assurance   about  whether  the  financial   statements  are  free  of  material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material  respects,  the financial  position of Bakery Village Urban Renewal
Associates, L.P. as of December 31, 2000, and the results of its operations, the
changes  in  partners'  equity and its cash  flows for the year then  ended,  in
conformity with generally accepted accounting principles.

/s/ Reznick Fedder & Silverman
Baltimore, Maryland
January, 12, 2001

                                       36
<PAGE>

[LETTERHEAD OF REZNICK FEDDER & SILVERMAN]

INDEPENDENT AUDITORS' REPORT

To the Partners
Marlton Housing Partnership, L.P.

We have audited the accompanying  balance sheets of Marlton Housing Partnership,
L.P. as of December 31, 2002 and 2001, and the related statements of operations,
changes in partners'  equity  (deficit) and cash flows for the years then ended.
These  financial   statements  are  the   responsibility  of  the  Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant estimates made by the management,  as well as evaluating the overall
financial  statement  presentation.   We  believe  that  our  audit  provides  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects,  the financial  position of Marlton Housing  Partnership,
L.P. at  December  31, 2002 and 2001,  and the  results of its  operations,  the
changes in its partners'  equity (deficit) and its cash flows for the years then
ended in conformity with accounting  principles generally accepted in the United
States of America.

/s/ Reznick Fedder & Silverman
Baltimore, Maryland
January 24, 2003

                                       37
<PAGE>

[LETTERHEAD OF REZNICK FEDDER & SILVERMAN]

INDEPENDENT AUDITORS' REPORT

To the Partners
Marlton Housing Partnership, L.P.

We have audited the accompanying  balance sheet of Marlton Housing  Partnership,
L.P. as of December 31, 2001, and the related statements of operations,  changes
in  partners'  equity  (deficit)  and cash flows for the year then ended.  These
financial statements are the responsibility of the Partnership's management. Our
responsibility  is to express an opinion on these financial  statements based on
our audit.

We conducted our audit in accordance with auditing standards  generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant estimates made by the management,  as well as evaluating the overall
financial  statement  presentation.   We  believe  that  our  audit  provides  a
reasonable basis for our opinion.

In our opinion,  the 2001 financial statements referred to above present fairly,
in all material respects, the financial position of Marlton Housing Partnership,
L.P. at December 31, 2001, and the results of its operations, the changes in its
partners'  equity  (deficit)  and its cash  flows  for the years  then  ended in
conformity with accounting principles generally accepted in the United States of
America.

/s/ Reznick Fedder & Silverman
Baltimore, Maryland
January 25, 2002

                                       38
<PAGE>

[LETTERHEAD OF ZINER, KENNEDY & LEHAN LLP]

INDEPENDENT AUDITORS' REPORT

To the Partners of
Marlton Housing Partnership, L.P.

We have audited the accompanying  balance sheets of Marlton Housing Partnership,
L.P. (a Pennsylvania  limited partnership) as of December 31, 2000 and 1999, and
the related statements of operations, changes in partners' equity and cash flows
for the years then ended.  These financial  statements are the responsibility of
the Partnership's general partners.  Our responsibility is to express an opinion
on these financial statements based on our audits.

We  conducted  our  audits  in  accordance  with  generally   accepted  auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the accounting  principles used and significant  estimates made by the
Partnership's  general  partners,  as well as evaluating  the overall  financial
statement  presentation.  We believe that our audits provide a reasonable  basis
for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects,  the financial  position of Marlton Housing  Partnership,
L.P. at  December  31, 2000 and 1999,  and the  results of its  operations,  the
changes in its  partners'  equity and its cash flows for the years then ended in
conformity with generally accepted accounting principles.

/s/ Ziner, Kennedy, &Lehan LLP
January 26, 2001
Boston, Massachusetts

                                       39
<PAGE>

[LETTERHEAD OF FAVORS & ASSOCIATES, CPA's, P.S.]

INDEPENDENT AUDITORS' REPORT

To the Partners
GP Kaneohe Limited Partnership

We  have  audited  the   accompanying   balance  sheet  of  GP  Kaneohe  Limited
Partnership,  as of December 31, 2002, and the related statements of operations,
changes in partners' capital (deficit),  and cash flows for the year then ended.
These financial  statements are the  responsibility of the entity's  management.
Our responsibility is to express an opinion on these financial  statements based
on our audit.

We conducted our audit in accordance with auditing standards  generally accepted
in the United States of America and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of
the United States. Those standards require that we plan and perform the audit to
obtain reasonable  assurance about whether the financial  statements are free of
material  misstatement.  An audit includes examining,  on a test basis, evidence
supporting  the amounts and  disclosures in the financial  statements.  An audit
also includes assessing the accounting principles used and significant estimates
made by  management,  as well as  evaluating  the  overall  financial  statement
presentation.  We believe  that our audit  provides a  reasonable  basis for our
opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects,  the financial position of GP Kaneohe Limited Partnership
as of December 31, 2002, and the results of its  operations,  the changes in its
partners' capital (deficit) and cash flows for the year then ended in conformity
with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing  Standards,  we have also issued a report
dated March 13, 2003, on our  consideration of GP Kaneohe Limited  Partnership's
internal  control,  and our test of its  compliance  with certain  provisions of
laws, regulations, contractors and grants. Those reports are an integral part of
an audit performed in accordance with Government  Auditing  Standards and should
be read in conjunction with this report in considering the results of our audit.

Our audit was  conducted  for the  purpose  of  forming  an opinion on the basic
financial statements taken as a whole. The supporting data required by HUD shown
on pages 10 and 11 is presented for purposes of additional analysis and is not a
required  part  of the  basic  financial  statements  of the  Partnership.  Such
information has been subjected to the auditing  procedures  applied in the audit
of the basic financial  statements and, in our opinion,  is fairly stated in all
material  respects  in  relation to the basic  financial  statements  taken as a
whole.

/s/ Favors & Associates, CPA's, P.S.
Fircrest, Washington
March 13, 2003

                                       40
<PAGE>


[LETTERHEAD OF DWYER PEMBERTON AND COULSON, P.C.]

INDEPENDENT AUDITORS' REPORT

To the Partners
GP Kaneohe Limited Partnership

We  have  audited  the   accompanying   balance  sheet  of  GP  Kaneohe  Limited
Partnership,  as of December 31, 2001 and the related  statements of operations,
changes in partners' capital (deficit),  and cash flows for the year then ended.
These financial  statements are the  responsibility of the entity's  management.
Our responsibility is to express an opinion on these financial  statements based
on our audit.

We conducted our audit in accordance with auditing standards  generally accepted
in the United States of America and Government Auditing Standards, issued by the
Comptroller  General of the United States.  Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audit  provides  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects,  the financial position of GP Kaneohe Limited Partnership
as of December 31, 2001, and the results of its  operations,  the changes in its
partners' capital (deficit) and cash flows for the year then ended in conformity
with accounting principles generally accepted in the United States of America.

In accordance  with Government  Auditing  Standards and the  Consolidated  Audit
Guide for Audits of HUD Programs,  issued by the U.S.  Department of Housing and
Urban  Development,  we have also issued a report dated January 18, 2002, on our
consideration of GP Kaneohe Limited Partnership's  internal control, and reports
dated January 18, 2002, on its compliance  specific  requirements  applicable to
major HUD  programs  and specific  requirements  applicable  to Fair Housing and
Non-Discrimination.  Those reports are an integral part of an audit performed in
accordance with Government  Auditing Standards and should be read in conjunction
with this report in considering the results of our audit.

Our audit was  conducted  for the  purpose  of  forming  an opinion on the basic
financial statements taken as a whole. The supporting data required by HUD shown
on pages 10 and 11 is presented for purposes of additional analysis and is not a
required  part  of the  basic  financial  statements  of the  Partnership.  Such
information has been subjected to the auditing  procedures  applied in the audit
of the basic financial  statements and, in our opinion,  is fairly stated in all
material  respects  in  relation to the basic  financial  statements  taken as a
whole.

/s/ Dwyer, Pemberton & Coulson
Tacoma, Washington
January 18, 2002

                                       41
<PAGE>

[LETTERHEAD OF DWYER PEMBERTON AND COULSON, P.C.]

INDEPENDENT AUDITORS' REPORT

To the Partners of
GP Kaneohe Limited Partnership

We  have  audited  the   accompanying   balance  sheet  of  GP  Kaneohe  Limited
Partnership,  as of December 31, 2000 and the related  statements of operations,
changes in  partners'  capital,  and cash flows for the year then  ended.  These
financial  statements are the  responsibility  of the entity's  management.  Our
responsibility  is to express an opinion on these financial  statements based on
our audit.

We conducted our audit in accordance with generally  accepted auditing standards
and Government  Auditing  Standards,  issued by the  Comptroller  General of the
United  States.  Those  standards  require that we plan and perform the audit to
obtain reasonable  assurance about whether the financial  statements are free of
material  misstatement.  An audit includes examining,  on a test basis, evidence
supporting  the amounts and  disclosures in the financial  statements.  An audit
also includes assessing the accounting principles used and significant estimates
made by  management,  as well as  evaluating  the  overall  financial  statement
presentation.  We believe  that our audit  provides a  reasonable  basis for our
opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects,  the financial position of GP Kaneohe Limited Partnership
as of December 31, 2000, and the results of its  operations,  the changes in its
partners' capital and its cash flows for the years then ended in conformity with
generally accepted accounting principles.

In accordance  with Government  Auditing  Standards and the  Consolidated  Audit
Guide for Audits of HUD Programs,  issued by the U.S.  Department of Housing and
Urban  Development,  we have also issued a report dated January 10, 2001, on our
consideration of GP Kaneohe Limited Partnership's  internal control, and reports
dated January 10, 2001, on its compliance  specific  requirements  applicable to
major HUD  programs  and specific  requirements  applicable  to Fair Housing and
Non-Discrimination.  Those reports are an integral part of an audit performed in
accordance with Government  Auditing Standards and should be read in conjunction
with this report in considering the results of our audit.

Our audit was  conducted  for the  purpose  of  forming  an opinion on the basic
financial statements taken as a whole. The supplementary information included in
this report on page 9 is presented  for purposes of  additional  analysis and is
not a required part of the basic  financial  statements  for GP Kaneohe  Limited
Partnership.  Such  information  has been  subjected to the auditing  procedures
applied in the audit of the basic financial  statements and, in our opinion,  is
fairly  stated in all  material  respects  in  relation  to the basic  financial
statements taken as a whole.

/s/ Dwyer, Pemberton & Coulson
Tacoma, Washington
January 10, 2001

                                       42
<PAGE>


[LETTERHEAD OF MILLER, MAYER, SULLIVAN, & STEVENS, LLP]

INDEPENDENT AUDITORS' REPORT

To the Partners
KSD Village Apartments, Phase II, Ltd,

We have audited the accompanying balance sheets of KSD Village Apartments, Phase
II, Ltd.  as of  December  31,  2002 and 2001,  and the  related  statements  of
operations, partners' equity (deficit), and cash flows for the years then ended.
These  financial   statements  are  the   responsibility  of  the  partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects,  the financial position of KSD Village Apartments,  Phase
II, Ltd. as of December  31, 2002 and 2001,  and the results of its  operations,
changes  in  partners'  equity  (deficit)  and its cash flows for the years then
ended, in conformity with accounting principles generally accepted in the United
States of America.

/s/ Miller, Mayer, Sullivan, & LLP
Lexington, Kentucky
January 13, 2003

                                       43
<PAGE>

[LETTERHEAD OF MILLER, MAYER, SULLIVAN, & STEVENS, LLP]

INDEPENDENT AUDITORS' REPORT

To the Partners
KSD Village Apartments, Phase II, Ltd,

We have audited the accompanying balance sheets of KSD Village Apartments, Phase
II, Ltd.  as of  December  31,  2001 and 2000,  and the  related  statements  of
operations, partners' equity (deficit), and cash flows for the years then ended.
These  financial   statements  are  the   responsibility  of  the  partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects,  the financial position of KSD Village Apartments,  Phase
II, Ltd. as of December  31, 2001 and 2000,  and the results of its  operations,
changes  in  partners'  equity  (deficit)  and its cash flows for the years then
ended, in conformity with accounting principles generally accepted in the United
States of America.

/s/ Miller, Mayer, Sullivan, & LLP
Lexington, Kentucky
January 21, 2002

                                       44
<PAGE>

[LETTERHEAD OF MILLER, MAYER, SULLIVAN, & STEVENS, LLP]

INDEPENDENT AUDITORS' REPORT

To the Partners
Kanisa Apartments Ltd.

We have audited the  accompanying  balance  sheets of Kanisa  Apartments,  Ltd.,
complex no.  083-98017-YHA,  as of December  31, 2002 and 2001,  and the related
statements of operations,  changes in partners' equity (deficit), and cash flows
for the years then ended.  These financial  statements are the responsibility of
the  partnership's  management.  Our  responsibility is to express an opinion on
these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America and the standards applicable to financial audits
contained in Government  Auditing Standards issued by the Comptroller General of
the United States.  Those standards  require that we plan and perform the audits
to obtain reasonable  assurance about whether the financial  statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting  the amounts and  disclosures in the financial  statements.  An audit
also includes assessing the accounting principles used and significant estimates
made by  management,  as well as  evaluating  the  overall  financial  statement
presentation.  We believe  that our audits  provide a  reasonable  basis for our
opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects, the financial position of Kanisa Apartments,  Ltd., as of
December  31,  2002 and 2001,  and the  results  of its  operations,  changes in
partners'  equity  (deficit),  and its cash flows for the years then  ended,  in
conformity with accounting principles generally accepted in the United States of
America.

In accordance with Government Auditing  Standards,  we have also issued a report
dated  February 10, 2003,  on our  consideration  of Kanisa  Apartments,  Ltd.'s
internal controls and our on our tests of its compliance with certain provisions
of laws, regulations,  contracts, and grants. Those reports are an integral part
of an audit  performed in  accordance  with  Government  Auditing  Standards and
should be read in conjunction with this report in considering the results of our
audits.

Our audits  were  conducted  for the  purpose of forming an opinion on the basic
financial  statements  taken  as a whole.  The  accompanying  supplemental  data
included in this report is presented for purposes of additional  analysis and is
not a required part of the basic financial statements. Such information has been
subjected  to the  auditing  procedures  applied  in  the  audits  of the  basic
financial  statements  and, in our opinion,  is fairly  stated,  in all material
respects, in relation to the basic financial statements taken as a whole.

/s/ Miller, Mayer, Sullivan, & Stevens, LLP
Lexington, Kentucky
February 10, 2003
EIN: 61-0866166
Lead Auditor: Darren C. Johnson, CPA
Audit Principal: John T. Miller, CPA

                                       45
<PAGE>

[LETTERHEAD OF MILLER, MAYER, SULLIVAN, & STEVENS, LLP]

INDEPENDENT AUDITORS' REPORT

To the Partners
Kanisa Apartments Ltd.

We have audited the  accompanying  balance  sheets of Kanisa  Apartments,  Ltd.,
complex no.  083-98017-YHA,  as of December  31, 2001 and 2000,  and the related
statements of operations,  changes in partners' equity (deficit), and cash flows
for the years then ended.  These financial  statements are the responsibility of
the  partnership's  management.  Our  responsibility is to express an opinion on
these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America and Government  Auditing Standards issued by the
Comptroller  General of the United States.  Those standards require that we plan
and  perform  the  audits to  obtain  reasonable  assurance  about  whether  the
financial  statements  are free of  material  misstatement.  An  audit  includes
examining,  on a test basis,  evidence supporting the amounts and disclosures in
the  financial  statements.  An audit also  includes  assessing  the  accounting
principles  used  and  significant  estimates  made  by  management,  as well as
evaluating the overall  financial  statement  presentation.  We believe that our
audits provide a reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects, the financial position of Kanisa Apartments,  Ltd., as of
December  31,  2001 and 2000,  and the  results  of its  operations,  changes in
partners'  equity  (deficit),  and its cash flows for the years then  ended,  in
conformity with accounting principles generally accepted in the United States of
America.

In accordance  with Government  Auditing  Standards and the  Consolidated  Audit
Guide for Audits of HUD Programs,  issued by the U.S.  Department of Housing and
Urban  Development,  we have also issued a report dated January 29, 2002, on our
consideration of Kanisa  Apartments,  Ltd.'s internal controls and reports dated
January 29, 2002, on its  compliance  with specific  requirements  applicable to
major HUD  programs  and specific  requirements  applicable  to Fair Housing and
Non-Discrimination.  Those reports are an integral part of an audit performed in
accordance with Government  Auditing Standards and should be read in conjunction
with this report in considering the results of our audits.

Our audits  were  conducted  for the  purpose of forming an opinion on the basic
financial  statements  taken  as a whole.  The  accompanying  supplemental  data
included in this report is presented for purposes of additional  analysis and is
not a required part of the basic financial statements. Such information has been
subjected  to the  auditing  procedures  applied  in  the  audits  of the  basic
financial  statements  and, in our opinion,  is fairly  stated,  in all material
respects, in relation to the basic financial statements taken as a whole.

/s/ Miller, Mayer, Sullivan, & Stevens, LLP
Lexington, Kentucky
February 2, 2001
EIN: 61-0866166
Lead Auditor: Darren C. Johnson, CPA
Audit Principal: John T. Miller, CPA

                                       46
<PAGE>


[LETTERHEAD OF THOMAS HANKINS]

INDEPENDENT ACCOUNTANT'S REPORT

Partners
Guymon Housing Partners Limited Partnership
d/b/a Blue Quail Apartments

I have  audited  the  accompanying  balance  sheets of Guymon  Housing  Partners
Limited  Partnership,  d/b/a Blue Quail  Apartments  as of December 31, 2002 and
2001, and the related statements of operations, changes in partners' capital and
cash  flows  for the  years  then  ended.  These  financial  statements  are the
responsibility of the Partnership's  management. My responsibility is to express
an opinion on these financial statements based on my audit.

I conducted my audit in accordance with auditing standards generally accepted in
the United States of America.  Those  standards  require that I plan and perform
the audit to obtain reasonable  assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.  An
audit also includes  assessing the accounting  principles  used and  significant
estimates  made by  management,  as well as  evaluating  the  overall  financial
statement presentation.  I believe that my audit provides a reasonable basis for
my opinion.

In my opinion, the financial statements referred to above present fairly, in all
material  respects,  the financial  position of Guymon Housing  Partners Limited
Partnership,  d/b/a Blue Quail  Apartments as of December 31, 2002 and 2001, and
the results of its  operations  and its cash flows for the years then ended,  in
conformity with accounting principles generally accepted in the United States of
America.

/s/ Thomas Hankins
February 17, 2003
Fort Smith, Arkansas

                                       47
<PAGE>

[LETTERHEAD OF THOMAS HANKINS]

INDEPENDENT ACCOUNTANT'S REPORT

Partners
Guymon Housing Partners Limited Partnership
d/b/a Blue Quail Apartments

I have  audited  the  accompanying  balance  sheets of Guymon  Housing  Partners
Limited  Partnership,  d/b/a Blue Quail  Apartments  as of December 31, 2001 and
2000, and the related statements of operations, changes in partners' capital and
cash  flows  for the  years  then  ended.  These  financial  statements  are the
responsibility of the Partnership's  management. My responsibility is to express
an opinion on these financial statements based on my audit.

I conducted my audit in accordance with generally  accepted auditing  standards.
Those standards  require that I plan and perform the audit to obtain  reasonable
assurance   about  whether  the  financial   statements  are  free  of  material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
I believe that my audit provides a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all
material  respects,  the financial  position of Guymon Housing  Partners Limited
Partnership,  d/b/a Blue Quail  Apartments as of December 31, 2001 and 2000, and
the results of its  operations  and its cash flows for the years then ended,  in
conformity with generally accepted accounting principles.

/s/ Thomas Hankins
February 15, 2002
Fort Smith, Arkansas

                                       48
<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                     ASSETS

                                                                          March 31,
                                                                 ----------------------------
                                                                     2003            2002
                                                                 ------------    ------------
<S>                                                              <C>             <C>
Property and equipment - at cost, less accumulated
  depreciation (Notes 2 and 4)                                   $ 69,391,714    $ 71,923,788
Cash and cash equivalents (Notes 2 and 10)                          2,037,966       2,461,056
Cash held in escrow (Note 5)                                        2,961,291       3,087,693
Deferred costs,  less  accumulated  amortization  (Notes 2
    and 6)                                                            777,593         867,766
Other assets                                                          492,936         425,486
                                                                 ------------    ------------

Total assets                                                     $ 75,661,500    $ 78,765,789
                                                                 ============    ============


                   LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)

Liabilities:
Mortgage notes payable (Note 7)                                  $ 36,401,006    $ 36,739,830
Accounts payable and other liabilities                              7,429,413       6,663,234
Due to local general partners and affiliates (Note 8)               2,583,149       2,777,814
Due to general partner and affiliates (Note 8)                      1,680,574       1,346,115
                                                                 ------------    ------------

Total liabilities                                                  48,094,142      47,526,993
                                                                 ------------    ------------

Minority interest                                                   1,951,864       2,244,151
                                                                 ------------    ------------

Commitments and contingencies (Note 10)

Partners' capital (deficit):
Limited partners (100,000 BACs authorized;
  45,844 issued and outstanding) (Note 1)                          25,766,873      29,112,232
General partner                                                      (151,379)       (117,587)
                                                                 ------------    ------------

Total partners' capital (deficit)                                  25,615,494      28,994,645
                                                                 ------------    ------------

Total liabilities and partners' capital (deficit)                $ 75,661,500    $ 78,765,789
                                                                 ============    ============

</TABLE>

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

                                       49
<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>

                                                        Year Ended March 31,
                                             -----------------------------------------
                                                 2003          2002            2001
                                             -----------    -----------    -----------
<S>                                          <C>            <C>            <C>
Revenues

Rental income                                $ 5,520,414    $ 5,360,801    $ 5,144,150
Other income (principally interest income)       293,795        331,077        704,137
                                             -----------    -----------    -----------

                                               5,814,209      5,691,878      5,848,287
                                             -----------    -----------    -----------

Expenses
General and administrative                     1,776,031      1,483,724      1,933,018
General and administrative-related parties
  (Note 8)                                       618,694        603,949        615,973
Repairs and maintenance                          910,719      1,035,059        870,657
Operating and other                              734,157        777,930        695,761
Taxes                                            221,980        177,907        161,939
Insurance                                        312,659        241,264        227,947
Interest                                       2,106,166      2,165,378      2,624,336
Depreciation and amortization                  2,547,309      2,547,779      2,512,191
                                             -----------    -----------    -----------

Total expenses                                 9,227,715      9,032,990      9,641,822
                                             -----------    -----------    -----------

Net loss before minority interest             (3,413,506)    (3,341,112)    (3,793,535)

Minority interest in loss of subsidiary
  partnerships                                    34,355         34,650         19,869
                                             -----------    -----------    -----------

Net loss                                     $(3,379,151)   $(3,306,462)   $(3,773,666)
                                             ===========    ===========    ===========

Net loss - limited partners                  $(3,345,359)   $(3,273,397)   $(3,735,929)
                                             ===========    ===========    ===========

Number of BACs outstanding                        45,844         45,844         45,844
                                             ===========    ===========    ===========

Net loss per weighted average BAC            $    (72.97)   $    (71.40)   $    (81.49)
                                             ===========    ===========    ===========

</TABLE>

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

                                       50
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
             CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
           (DEFICIT) FOR THE YEARS ENDED MARCH 31, 2003, 2002 and 2001

<TABLE>
<CAPTION>
                                                                 Limited          General
                                                  Total          Partners         Partner
                                               ------------    ------------    ------------
<S>                                            <C>             <C>             <C>
Partners' capital (deficit) - April 1, 2000    $ 36,074,773    $ 36,121,558    $    (46,785)


Net loss                                         (3,773,666)     (3,735,929)        (37,737)
                                               ------------    ------------    ------------

Partners' capital (deficit) - March 31, 2001     32,301,107      32,385,629         (84,522)


Net loss                                         (3,306,462)     (3,273,397)        (33,065)
                                               ------------    ------------    ------------

Partners' capital (deficit) - March 31, 2002     28,994,645      29,112,232        (117,587)


Net loss                                         (3,379,151)     (3,345,359)        (33,792)
                                               ------------    ------------    ------------

Partners' capital (deficit) - March 31, 2003   $ 25,615,494    $ 25,766,873    $   (151,379)
                                               ============    ============    ============

</TABLE>

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

                                       51
<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>

                                                                Year Ended March 31,
                                                      -----------------------------------------
                                                         2003           2002*          2001*
                                                      -----------    -----------    -----------
<S>                                                   <C>            <C>            <C>
Cash flows from operating activities:
Net loss                                              $(3,379,151)   $(3,306,462)   $(3,773,666)
                                                      -----------    -----------    -----------
Adjustments to reconcile net loss to net
  cash (used in) provided by operating activities:
Depreciation and amortization                           2,547,309      2,547,779      2,512,191
Adjustment to property and equipment                       74,938              0              0
Minority interest in loss of subsidiary
  partnerships                                            (34,355)       (34,650)        19,869
Increase in cash held in escrow                          (520,897)       (49,315)      (195,143)
(Increase) decrease in other assets                       (67,450)       (35,315)       382,600
Increase in accounts payable and other
  liabilities                                             766,179        978,875        835,064
Increase in due from local general partners
  and affiliates                                           28,077         17,679          5,604
Decrease in due from local general partners
  and affiliates                                          (59,574)      (237,396)          (165)
Increase in due to general partner and
  affiliates                                              334,459        174,368        381,092
                                                      -----------    -----------    -----------
Total adjustments                                       3,068,686      3,362,025      3,941,112
                                                      -----------    -----------    -----------

Net cash (used in) provided by operating
  activities                                             (310,465)        55,563        167,446
                                                      -----------    -----------    -----------

Cash flows from investing activities:
Acquisition of property and equipment                           0     (1,082,120)      (290,772)
Decrease (increase) in cash held in escrow                647,299       (449,161)      (723,903)
Decrease in accounts payable and other
  liabilities                                                   0              0        (93,237)
Increase in due to local general partners
  and affiliates                                            5,789        638,692        176,512
Decrease in due to local general partners
  and affiliates                                         (168,957)      (121,446)    (1,524,293)
Decrease in investments available-for-sale                      0              0      3,100,000
Increase in deferred costs                                      0              0        (18,681)
                                                      -----------    -----------    -----------

Net cash provided by (used in) investing activities       484,131     (1,014,035)       625,626
                                                      -----------    -----------    -----------
</TABLE>

                                       52
<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (continued)

<TABLE>
<CAPTION>

                                                                  Year Ended March 31,
                                                        -----------------------------------------
                                                           2003           2002*          2001*
                                                        -----------    -----------    -----------
<S>                                                     <C>            <C>            <C>
Cash flows from financing activities:
Proceeds from mortgage notes                                      0              0      1,311,309
Repayments of mortgage notes                               (338,824)      (466,560)      (243,027)
Repayments of construction loans                                  0              0     (2,620,160)
(Decrease) increase in capitalization of consolidated
  subsidiaries attributable to minority interest           (257,932)       181,085         79,332
                                                        -----------    -----------    -----------

Net cash used in financing activities                      (596,756)      (285,475)    (1,472,546)
                                                        -----------    -----------    -----------

Net decrease in cash and cash equivalents                  (423,090)    (1,243,947)      (679,474)

Cash and cash equivalents at beginning of year            2,461,056      3,705,003      4,384,477
                                                        -----------    -----------    -----------

Cash and cash equivalents at end of year                $ 2,037,966    $ 2,461,056    $ 3,705,003
                                                        ===========    ===========    ===========

Supplemental disclosure of cash flow
  information:
Cash paid during the year for interest                  $ 1,321,322    $ 1,422,179    $ 1,500,022
                                                        ===========    ===========    ===========

Supplemental disclosures of noncash
  investing and financing activities:

Property and equipment reclassified from
  deferred costs                                        $         0    $         0    $   979,963

Construction loans converted to mortgage loans                    0        545,374         77,700

</TABLE>

* Reclassified for comparative purposes.

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


                                       53
<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2003

NOTE 1 - General

Independence  Tax Credit  Plus L.P.  IV (a Delaware  limited  partnership)  (the
"Partnership")  was  organized  on  February  22,  1995 and  commenced  a public
offering on July 6, 1995.  The  general  partner of the  Partnership  is Related
Independence   L.L.C.,  a  Delaware  limited  liability  company  (the  "General
Partner").

The  Partnership's   business  is  to  invest  in  other  partnerships   ("Local
Partnerships,"  "subsidiaries"  or "subsidiary  partnerships")  owning apartment
complexes that are eligible for the low-income  housing tax credit ("Housing Tax
Credit")  enacted  in the Tax  Reform Act of 1986,  some  complexes  may also be
eligible  for the historic  rehabilitation  tax credit  ("Historic  Tax Credit";
together with Housing Tax Credits, "Tax Credits").

As of March 31, 2003, the Partnership has acquired limited partnership interests
in fourteen subsidiary  partnerships,  all of which have been consolidated.  The
Partnership  does not  anticipate  acquiring  limited  partnership  interests in
additional  subsidiary  partnerships.  The  Partnership's  investments  in Local
Partnerships  represent  from  98.99%  to  99.89%  interests,   except  for  one
investment which is a 58.12% interest.

The  Partnership  was  authorized  to  issue a total of  100,000  ($100,000,000)
Beneficial Assignment  Certificates ("BACs") which have been registered with the
Securities and Exchange  Commission for sale to the public.  Each BAC represents
all of the economic and virtually all of the ownership rights  attributable to a
limited partnership interest. The solicitation for the subscription of BAC's was
terminated as of May 22, 1996 and the final closing occurred on August 15, 1996.
The Partnership had raised a total of $45,844,000 representing 45,844 BACs.

NOTE 2 - Summary of Significant Accounting Policies

a) Basis of Accounting

For financial  reporting purposes,  the Partnership's  fiscal year ends on March
31. All  subsidiaries  have fiscal  years ending  December  31.  Accounts of the
subsidiaries  have been adjusted for  intercompany  transactions  from January 1
through March 31. The Partnership's  fiscal year ends March 31 in order to allow
adequate  time for the  subsidiaries'  financial  statements  to be prepared and
consolidated.  The books and records of the  Partnership  are  maintained on the
accrual basis of accounting,  in accordance with generally  accepted  accounting
principles.

b) Basis of Consolidation

The consolidated  financial  statements  include the accounts of the Partnership
and fourteen  subsidiary  partnerships  for the years ended March 31, 2003, 2002
and 2001,  respectively,  in which the Partnership is a limited partner. Through
the rights of the Partnership and/or an affiliate of the General Partner,  which
affiliate has a contractual  obligation to act on behalf of the Partnership,  to
remove the general partner of the subsidiary  local  partnerships and to approve
certain  major  operating  and  financial  decisions,   the  Partnership  has  a
controlling financial interest in the subsidiary partnerships.  All intercompany
accounts and transactions with the subsidiary  partnerships have been eliminated
in consolidation.

                                       54
<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2003

Increases  (decreases) in the  capitalization  of the consolidated  subsidiaries
attributable to minority  interests arise from cash  contributions from and cash
distributions to the minority interest partners.

Losses  attributable to minority interests which exceed the minority  interests'
investment  in a subsidiary  have been charged to the  Partnership.  Such losses
aggregated  approximately $7,000,  $79,000 and $46,000 for the years ended March
31, 2003,  2002 and 2001,  respectively.  The  Partnership's  investment in each
subsidiary  is  equal  to the  respective  subsidiary's  partners'  equity  less
minority interest capital, if any. In consolidation,  all subsidiary partnership
losses are  included  in the  Partnership's  capital  account  except for losses
allocated to minority interest capital.

c) Cash and Cash Equivalents

Cash and cash  equivalents  include cash on hand, cash in banks, and investments
in short-term highly liquid  investments  purchased with original  maturities of
three months or less.

d) Property and Equipment

Property and  equipment  to be held and used are carried at cost which  includes
the purchase price, acquisition fees and expenses,  construction period interest
and any other costs incurred in acquiring the  properties.  The cost of property
and equipment is depreciated over their estimated useful lives using accelerated
and straight-line methods.  Expenditures for repairs and maintenance are charged
to expense as incurred;  major renewals and betterments are capitalized.  At the
time property and  equipment are retired or otherwise  disposed of, the cost and
accumulated   depreciation  are  eliminated  from  the  assets  and  accumulated
depreciation accounts and the profit or loss on such disposition is reflected in
earnings.  A loss on impairment of assets is recorded when management  estimates
amounts  recoverable  through  future  operations and sale of the property on an
undiscounted basis are below depreciated cost. At that time property investments
themselves are reduced to estimated fair value (generally using estimated future
discounted  net cash flows) when the property is  considered  to be impaired and
the depreciated cost exceeds estimated fair value.

At the time management  commits to a plan to dispose of assets,  said assets are
adjusted to the lower of carrying amount or fair value less costs to sell. These
assets  are  classified  as  property  and  equipment-held  for sale and are not
depreciated.  There are no assets classified as property and  equipment-held for
sale  through  March 31,  2003.  In August  2001,  the FASB issued SFAS No. 144,
"Accounting  for the Impairment of Disposal of Long-Lived  Assets" ("SFAS 144"),
which  supersedes  SFAS No. 121,  "Accounting  for the  Impairment of Long-Lived
Assets and for  Long-Lived  Assets to be Disposed  Of".  SFAS 144 applies to all
long-lived  assets.  It is effective for financial  statements issued for fiscal
years beginning after December 15, 2001, and was adopted by the Partnership,  as
required, on January 1, 2002.

Through March 31, 2003, the  Partnership has not recorded any loss on impairment
of assets or reductions to estimated fair value.

e) Income Taxes

The  Partnership  is not  required to provide  for, or pay,  any federal  income
taxes.  Net income or loss generated by the Partnership is passed through to the

                                       55
<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2003

partners and is required to be reported by them. The  Partnership may be subject
to state and local taxes in jurisdictions  in which it operates.  For income tax
purposes, the Partnership has a fiscal year ending December 31 (Note 9).

f) Organization and Offering Costs

Costs incurred to organize the Partnership,  including but not limited to legal,
accounting and registration fees, are considered  organization  expenses.  These
costs are  expensed as  incurred,  pursuant to the  provisions  of  Statement of
Position No. 98-5, "Reporting on the Cost of Start-Up Activities", issued by the
American Institute of Certified Public Accountants.

Costs incurred in connection  with obtaining  permanent  mortgage  financing are
amortized over the lives of the related  mortgage notes.  Costs incurred to sell
BACs,  including  brokerage fees and the nonaccountable  expense allowance,  are
considered  selling and offering  expenses.  These costs are charged directly to
limited partners' capital.

g) Deferred Acquisition Costs

Acquisition costs and fees incurred in connection with the purchase of interests
in certain subsidiary partnerships have been capitalized as property costs.

h) Loss Contingencies

The  Partnership   records  loss  contingencies  as  a  charge  to  income  when
information  becomes available which indicates that it is probable that an asset
has  been  impaired  or a  liability  has  been  incurred  as of the date of the
financial statements and the amount of loss can be reasonably estimated.

i) Use of Estimates

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect certain  reported amounts and  disclosures.  Accordingly,  actual results
could differ from those estimates.

NOTE 3 - Fair Value of Financial Instruments

The following  methods and  assumptions  were used to estimate the fair value of
each class of financial instruments for which it is practicable to estimate that
value:

Cash  and  Cash  Equivalents  and  Cash  Held  in  Escrow
---------------------------------------------------------
The carrying amount  approximates  fair value due to the short-term  maturity of
the instruments.

Mortgage Notes Payable
----------------------
The fair value of mortgage  notes  payable  and  construction  loans  payable is
estimated,  where practicable,  based on the borrowing rate currently  available
for similar loans.

                                       56
<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2003

The estimated fair values of the Partnership's mortgage notes payable and
construction loans payable are as follows:

<TABLE>
<CAPTION>

                                          March  31, 2003             March 31, 2002
                                     -------------------------   -------------------------
                                      Carrying                    Carrying
                                       Amount      Fair Value      Amount      Fair Value
                                     -----------   -----------   -----------   -----------
<S>                                  <C>           <C>           <C>           <C>
Mortgage notes payable for
  which it is:
Practicable to estimate fair value   $25,582,250   $26,018,413   $25,909,398   $27,022,238
Not practicable                      $10,818,756           (a)   $10,830,432           (a)


</TABLE>

(a)  Management  believes it is not  practicable  to estimate  the fair value of
certain   mortgage  notes  payable  because   mortgage   programs  with  similar
characteristics   are  not  currently   available  to  each  of  the  subsidiary
partnerships.

The carrying amount of other assets and liabilities reported on the consolidated
balance sheets that require such disclosure approximates fair value.

Due to General  Partner and  Affiliates  and Due to Local  General  Partners and
--------------------------------------------------------------------------------
Affiliates
----------
Management  believes it is not  practical  to estimate  the fair value of due to
general partner and affiliates and due to local general  partners and affiliates
because market information on such unique loans are not currently available.

NOTE 4 - Property and Equipment

The components of property and equipment and their estimated useful lives are as
follows:

<TABLE>
<CAPTION>

                                           March 31,              Estimated
                                  ----------------------------   Useful Lives
                                      2003            2002         (Years)
                                  ------------    ------------   -----------
<S>                               <C>             <C>                <C>
Land                              $  3,307,496    $  3,307,496
Building and improvements           76,888,418      76,979,431       27.5
Furniture and fixtures               1,110,999       1,094,924       5-7
                                  ------------    -------------

                                    81,306,913      81,381,851
Less:  Accumulated depreciation    (11,915,199)     (9,458,063)
                                  ------------    -------------

                                  $ 69,391,714    $  71,923,788
                                  ============    =============

</TABLE>

Included in property and equipment at March 31, 2003 and 2002, was $2,750,640 of
acquisition  fees  paid to the  General  Partner  and  $708,031  of third  party
acquisition  expenses.  In addition, as of March 31, 2003 and 2002, building and
improvements   includes  $343,161  of  capitalized  interest.  No  interest  was
capitalized during the years ended March 31, 2003, 2002 and 2001.

In  connection  with  the  rehabilitation  of  the  properties,  the  subsidiary
partnerships  have incurred  developer's fees of $4,235,495 to the local general
partners and affiliates as of both March 31, 2003 and 2002.  Such fees have been
included in the cost of property and equipment.

                                       57
<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2003

Depreciation  expense for the years ended March 31, 2003, 2002 and 2001 amounted
to $2,457,136, $2,457,711and $2,422,698, respectively.

NOTE 5 - Cash Held in Escrow

Cash held in escrow consists of the following:

<TABLE>
<CAPTION>

                                                March 31,
                                         -----------------------
                                            2003         2002
                                         ----------   ----------
<S>                                      <C>          <C>
Purchase price payments*                 $  615,135   $  741,459
Real estate taxes, insurance and other    2,346,156    2,346,234
                                         ----------   ----------

                                         $2,961,291   $3,087,693
                                         ==========   ==========
</TABLE>

*    Represents amounts to be paid to seller upon completion of properties under
     construction and upon meeting specified rental achievement criteria.

NOTE 6 - Deferred Costs

The  components  of  deferred  costs and their  periods of  amortization  are as
follows:
<TABLE>
<CAPTION>
                                          March 31,
                                 --------------------------
                                     2003          2002         Period
                                 -----------    -----------    ---------
<S>                              <C>            <C>                <C>
Financing costs                  $ 1,001,424    $ 1,001,424        *
Other deferred costs                 177,692        177,692
                                 -----------    -----------
                                   1,179,116      1,179,116
Less: Accumulated amortization      (401,523)      (311,350)
                                 -----------    -----------

                                 $   777,593    $   867,766
                                 ===========    ===========
</TABLE>

*Over the life of the related mortgage note.

Amortization  expense for the years ended March 31, 2003, 2002 and 2001 amounted
to $90,173, $90,068 and $89,493, respectively.

NOTE 7 - Mortgage Loans Payable

The  mortgage   loans  are  payable  in  aggregate   monthly   installments   of
approximately  $113,000 including principal and interest with rates varying from
0% to 9.11% per annum and have  maturity  dates  ranging from 2004 through 2051.
The  loans  are  collateralized  by the land  and  buildings  of the  subsidiary
partnerships,  the  assignment  of certain  subsidiary  partnerships'  rents and
leases, and are without further recourse.

                                       58
<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2003

Annual principal  payment on the permanent debt  requirements for mortgage notes
payable for each of the next five fiscal years and thereafter are as follows:

<TABLE>
<CAPTION>

Fiscal Year                           Amount
-----------                        ------------
<C>                                <C>
2003                               $  2,077,650
2004                                    400,909
2005                                    442,050
2006                                    388,131
2007                                    354,781
Thereafter                           32,737,485
                                   ------------

                                   $ 36,401,006
                                   ============
</TABLE>

The  mortgage  agreements  generally  require  monthly  deposits to  replacement
reserves and monthly  deposits to escrow accounts for real estate taxes,  hazard
and mortgage insurance and other expenses (Note 5).

NOTE 8 - Related Party Transactions

An affiliate  of the General  Partner has a .01%  interest as a special  limited
partner in each of the Local Partnerships.

Pursuant to the Partnership Agreement and the Local Partnership Agreements,  the
General  Partner and affiliate  receive their pro-rata share of profits,  losses
and tax credits.

The General Partner and its affiliates perform services for the Partnership. The
costs incurred for the years ended March 31, 2003, 2002 and 2001 are as follows:

A) Guarantees

In November  2002,  FASB  Interpretation  No. 45,  "Guarantor's  Accounting  and
Disclosure   Requirement  for  Guarantees,   Including  Indirect  Guarantees  of
Indebtedness  of  Others"  ("FASB  Interpretation  No.  45"),  was  issued.  The
accounting  recognition  provisions of FASB  Interpretation No. 45 are effective
January 1, 2003 on a prospective basis. They require that a guarantor recognize,
at the  inception  of a  guarantee,  a  liability  for  the  fair  value  of the
obligation  undertaken in issuing or modifying any guarantee  after December 31,
2002.  Under  prior  accounting  principles,  a  guarantee  would  not have been
recognized as a liability until a loss was probable and reasonably estimated. At
May 12, 2003, the Partnership has not issued or modified any existing guarantees
and has not  determined  the impact,  if any,  that  adoption of the  accounting
recognition   provision  of  FASB  Interpretation  No.  45  would  have  on  the
Partnership's future financial position or results of operations.

The Partnership had negotiated  Operating  Deficit Guaranty  Agreements with the
development stage Local Partnerships by which the general partners of such Local
Partnerships  and/or their affiliates have agreed to fund operating deficits for
a  specified  period  of time.  The  terms  of the  Operating  Deficit  Guaranty
Agreements  vary for each of  these  Local  Partnerships,  with  maximum  dollar
amounts to be funded for a  specified  period of time,  generally  three  years,
commencing  on the  break-even  date.  As of March 31, 2003 and 2002,  Operating
Deficit   Guarantees   aggregate   approximately   $2,159,000  and   $2,659,000,

                                       59
<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2003

respectively.  All current Operating  Deficit  Guarantees expire within the next
two years. As of March 31, 2003, $0 has been funded under the Operating  Deficit
Guaranty  Agreements.  Amounts funded under such  agreements  will be treated as
non-interest bearing loans, which will be paid only out of 50% of available cash
flow or out of available net sale or refinancing proceeds.

B) Related Party Expenses

Expenses  incurred to related  parties for the years ended March 31, 2003,  2002
and 2001 were as follows:

<TABLE>
<CAPTION>
                                                      Year Ended March 31,
                                                ------------------------------
                                                  2003       2002       2001
                                                --------   --------   --------
<S>                                             <C>        <C>        <C>
Partnership management fees (a)                 $337,120   $334,968   $329,923
Expense reimbursements (b)                       111,856    119,009    132,549
Local administrative fees (d)                     53,000     48,000     43,000
                                                --------   --------   --------

Total general and administrative-
General Partner                                  501,976    501,977    505,472

Property
management fees incurred
to affiliates of the subsidiary partnerships'
general partners (c)                             116,718    101,972    110,501
                                                --------   --------   --------

Total general and administrative-
related parties                                 $618,694   $603,949   $615,973
                                                ========   ========   ========
</TABLE>

(a) The General  Partner is entitled to receive a  partnership  management  fee,
after payment of all Partnership expenses,  which together with the annual local
administrative  fees  will not  exceed a maximum  of 0.5% per annum of  invested
assets (as defined in the Partnership Agreement),  for administering the affairs
of  the  Partnership.  Subject  to the  foregoing  limitation,  the  partnership
management fee will be determined by the General  Partner in its sole discretion
based  upon its  review of the  Partnership's  investments.  Unpaid  partnership
management  fees for any  year  will be  accrued  without  interest  and will be
payable only to the extent of  available  funds after the  Partnership  has made
distributions to the limited  partners of sale or refinancing  proceeds equal to
their original capital  contributions plus a 10% priority return thereon (to the
extent not previously paid out of cash flow).  Partnership  management fees owed
to the General Partner  amounting to approximately  $1,292,000 and $955,000 were
accrued and unpaid as of March 31, 2003 and 2002, respectively.

(b) The Partnership reimburses the General Partner and its affiliates for actual
Partnership   operating  expenses  incurred  by  the  General  Partner  and  its
affiliates on the  Partnership's  behalf.  The amount of reimbursement  from the
Partnership is limited by the provisions of the Partnership  Agreement.  Another
affiliate of the General Partner  performs asset monitoring for the Partnership.
These   services   include  site  visits  and   evaluations  of  the  subsidiary
partnerships' performance.

(c) Property  management  fees  incurred by the Local  Partnerships  amounted to
$354,672,  $335,474 and  $345,771  for the years ended March 31, 2003,  2002 and

                                       60
<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2003

2001, respectively.  Of these fees, $116,718, $101,972 and $110,501 was incurred
to affiliates of the subsidiary partnerships' general partners.

(d)  Independence  SLP IV L.P.,  a special  limited  partner  of the  subsidiary
partnerships,  is entitled to receive a local administrative fee of up to $5,000
per year from each subsidiary partnership.

C) Due to Local General Partners and Affiliates

Due to local general partners and affiliates consists of the following:

<TABLE>
<CAPTION>
                                           March 31,
                                  --------------------------
                                     2003            2002
                                  -----------    -----------
<S>                               <C>            <C>
Development fee payable           $ 2,142,384    $ 2,311,366
General partner loan payable          104,992        104,992
General partner loan receivable      (140,602)      (142,683)
Construction advances                 373,955        368,166
Construction costs payable             56,652         64,708
Operating advances                      6,000              0
Management and other fees              39,768         71,265
                                  -----------    -----------

                                  $ 2,583,149    $ 2,777,814
                                  ===========    ===========
</TABLE>

NOTE 9 - Income Taxes

A reconciliation of the financial  statement net loss to the income tax loss for
the Partnership and its consolidated subsidiaries follows:

<TABLE>
<CAPTION>

                                                            Year Ended December 31,
                                                    -----------------------------------------
                                                       2002           2001           2000
                                                    -----------    -----------    -----------
<S>                                                 <C>            <C>            <C>
Financial statement net loss                        $(3,379,151)   $(3,306,462)   $(3,773,666)

Differences between depreciation and amortiza-
tion expense for financial reporting purposes
and income tax purposes                                (356,405)      (386,694)      (262,761)

Differences resulting from parent company
having a different fiscal year for income tax and
financial reporting purposes                            (81,578)        29,186        (57,363)

Tax exempt interest income                              (15,073)       (45,024)      (142,015)

Other, including accruals for financial reporting
purposes not deductible for income tax pur-
poses until paid                                       (228,738)      (149,561)       (65,563)
                                                    -----------    -----------    -----------

Net loss as shown on the income tax returns         $(4,060,945)   $(3,858,555)   $(4,301,368)
                                                    ===========    ===========    ===========

</TABLE>

                                       61
<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2003

NOTE 10 - Commitments and Contingencies

a) Uninsured Cash and Cash Equivalents

The  Partnership  and its subsidiary  partnerships  maintain their cash and cash
equivalents  in various  banks.  The  accounts  at each bank are  insured by the
Federal Deposit  Insurance  Corporation  for up to $100,000.  At March 31, 2003,
uninsured cash and cash equivalents at various banking institutions approximated
$1,434,000.

b) Leases

One subsidiary  partnership is leasing the land on which the Project is located,
for a term of 65 years  starting on July 14, 1982.  At December  31,  2002,  the
subsidiary partnership is obligated to pay rent of $1 per annum.

c) Other

The  Partnership  is subject to the risks  incident to potential  losses arising
from the  management  and  ownership of improved  real estate and poor  economic
conditions.

The  Partnership  and BACs holders  will begin to recognize  Housing Tax Credits
with respect to a property when the credit  period for such property  commences.
Because of the time  required  for the  acquisition,  completion  and rent-up of
properties, it is expected that the amount of Tax Credits per BAC will gradually
increase over the first three years of the Partnership.  Housing Tax Credits not
recognized  in the first three years will be recognized in the 11th through 13th
years.  The  Partnership  generated  $5,356,758,  $5,356,758  and  $5,506,354 of
Housing Tax Credits during the 2002, 2001 and 2000 tax years, respectively.  The
Housing Tax Credits expire at various times ending in 2009.

                                       62
<PAGE>

Item  9.  Changes  in and  Disagreements  with  Accountants  on  Accounting  and
Financial Disclosure.

None

                                    PART III

Item 10. Directors and Executive Officers of the Registrant.

The  Partnership  has no  directors  or executive  officers.  The  Partnership's
affairs are managed and controlled by Related Independence L.L.C. ("RILLC"), the
General  Partner.  The members of RILLC are Related General II, L.P., a Delaware
limited partnership ("RGII),  Alan P. Hirmes and Stuart J. Boesky. RCMP, Inc., a
Delaware corporation ("RCMP") is the sole general partner of RGII.

In December 2002, Charter Municipal Mortgage Acceptance Company  ("CharterMac"),
which is also managed by an affiliate of Related  Capital  Company,  announced a
proposed  acquisition of Related  Capital  Company,  an affiliate of the General
Partner.   Pursuant  to  the  proposed  acquisition,   CharterMac  will  acquire
controlling  interests  in the  general  partner of the  General  Partner.  This
acquisition  is not  anticipated  to affect the  Partnership  or its  day-to-day
operations as management of the General Partners will not change.

Certain  information  concerning  the  executive  officers and  directors of the
General Partner of RCMP is set forth below.

Name                            Position
----                            --------

Stephen M. Ross                 Director and President of RCMP

Alan P. Hirmes                  President and  Member of RILLC

Michael J. Wechsler             Director and Executive Vice President of RCMP

Stuart J. Boesky                Senior Vice President and Member of RILLC

Marc D. Schnitzer               Vice President of RILLC

Denise L. Kiley                 Vice President of RILLC

Glenn F. Hopps                  Treasurer of RILLC

Teresa Wicelinski               Secretary of RILLC

STEPHEN M. ROSS,  63, is a  Director  of RILLC.  Mr.  Ross is the  President,  a
Director  and a  shareholder  of The Related  Realty  Group,  Inc.,  the General
Partner  of The  Related  Companies,  L.P.  ("TRCLP").  He  graduated  from  the
University  of  Michigan  School of Business  Administration  with a Bachelor of
Science degree and from Wayne State University School of Law with a Juris Doctor
degree. Mr. Ross then received a Master of Laws degree in taxation from New York
University  School of Law. He joined the accounting firm of Coopers & Lybrand in
Detroit as a tax specialist and later moved to New York, where he worked for two
large Wall Street  investment  banking  firms in their real estate and corporate
finance  departments.  Mr.  Ross  formed  the  predecessor  of  TRCLP in 1972 to
develop,  manage,  finance and acquire  subsidized  and  conventional  apartment
developments. Mr. Ross also serves on the Board of Trustees of Charter Municipal
Mortgage Acceptance Company.

                                       63
<PAGE>

ALAN P.  HIRMES,  48, is  President  of RILLC.  Mr.  Hirmes has been a Certified
Public  Accountant in New York since 1978.  Prior to joining  Related in October
1983, Mr. Hirmes was employed by Weiner & Co., Certified Public Accountants. Mr.
Hirmes is also a Vice  President of Capital.  Mr. Hirmes  graduated from Hofstra
University  with a Bachelor of Arts degree.  Mr. Hirmes also serves on the Board
of Trustees  of Charter  Municipal  Mortgage  Acceptance  Company  and  American
Mortgage Acceptance Company.

MICHAEL J. WECHSLER, 64, is a Director and Executive Vice President of RCMP. Mr.
Wechsler joined the predecessor of The Related Companies,  L.P. in 1987 as Chief
Operating  Officer  and  Executive  Vice  President  and is the Chief  Operating
Officer and Executive Vice President of the Related Realty Group,  Inc. Prior to
that, he was Senior Vice  President  and a Managing  Director of the Real Estate
Division of Chemical Bank with overall  responsibility  for  administration  and
lending activities of the Division in 25 states and New York City. He supervised
a  diversified  portfolio  of  construction  and real estate  loans of over $3.5
billion. Mr. Wechsler attended the Massachusetts Institute of Technology when he
received a Bachelor of Science  degree in Civil  Engineering  and  received  his
Masters in Business  Administration from the Harvard Graduate School of Business
Administration.

STUART J. BOESKY,  47, is a Vice President of RILLC.  Mr. Boesky  practiced real
estate  and tax law in New York  City with the law firm of  Shipley &  Rothstein
from 1984  until  February  1986 when he joined  Capital.  From 1983 to 1984 Mr.
Boesky  practiced  law  with  the  Boston  law firm of Kaye  Fialkow  Richard  &
Rothstein (which subsequently merged with Strook & Strook & Lavan) and from 1978
to 1980 was a consultant  specializing  in real estate at the accounting firm of
Laventhol & Horwath.  Mr. Boesky graduated from Michigan State University with a
Bachelor of Arts degree and from Wayne State  School of Law with a Juris  Doctor
degree.  He then  received  a Master of Laws  degree  in  Taxation  from  Boston
University  School of Law.  Mr.  Boesky  also serves on the Board of Trustees of
Charter Municipal Mortgage  Acceptance Company and American Mortgage  Acceptance
Company.

MARC D. SCHNITZER,  42, is a Vice President of RILLC. He is responsible both for
financial  restructurings  of real estate  properties  and  directing  Related's
acquisitions  of  properties  generating  Housing  Tax  Credits.  Mr.  Schnitzer
received a Masters of Business  Administration  from The  Wharton  School of the
University of  Pennsylvania  in December 1987 before joining  Related in January
1988. From 1983 to January 1986, he was a financial analyst for the First Boston
Corporation in New York. Mr. Schnitzer graduated summa cum laude with a Bachelor
of Science in Business  Administration  from the School of  Management at Boston
University in May 1983.

DENISE L. KILEY,  43, is responsible  for overseeing the due diligence and asset
management of the multifamily  residential  properties invested in RCC sponsored
corporate, public and private equity and debt funds. Prior to joining Related in
1990,  Ms.  Kiley  had  experience  acquiring,   financing  and  asset  managing
multifamily  residential  properties.  From 1981 through 1985 she was an auditor
with Price Waterhouse.  Ms. Kiley holds a Bachelor of Science in Accounting from
Boston College.

GLENN F. HOPPS,  40, is Treasurer of RILLC. Mr. Hopps joined Related in December
1990,  and  prior  to that  date  was  employed  by Marks  Shron &  Company  and
Weissbarth,  Altman and  Michaelson,  certified  public  accountants.  Mr. Hopps
graduated  from New York State  University  at Albany with a Bachelor of Science
Degree in Accounting.

TERESA  WICELINSKI,  37, is Secretary of RILLC. Prior to joining Related in June
1992, Ms. Wicelinski was employed by Friedman,  Alpren & Green, certified public
accountants.  Ms.  Wicelinski  graduated from Pace University with a Bachelor of
Arts Degree in Accounting.

                                       64
<PAGE>


Item 11. Executive Compensation.

The  Partnership has no officers or directors.  The Partnership  does not pay or
accrue any fees,  salaries or other forms of compensation to members or officers
of the  General  Partner  for their  services.  However,  under the terms of the
Partnership  Agreement,  the Partnership  has entered into certain  arrangements
with the General Partner and its affiliates,  which provide for  compensation to
be paid to the General Partner and its  affiliates.  Such  arrangements  include
(but are not limited to)  agreements  to pay  nonrecurring  Acquisition  Fees, a
nonaccountable   Acquisition   Expense   allowance,   an   accountable   expense
reimbursement  and  Subordinated  Disposition Fees to the General Partner and/or
its affiliates.  In addition,  the General Partner is entitled to a subordinated
interest in Cash from Sales or Financings  and a 1% interest in Net Income,  Net
Loss,  Distributions  of Adjusted  Cash from  Operations  and Cash from Sales or
Financings.  Certain  members  and  officers  of  the  General  Partner  receive
compensation from the General Partner and its affiliates for services  performed
for various  affiliated  entities which may include  services  performed for the
Partnership.  The maximum annual partnership  management fee paid to the General
Partner is 0.5% of invested  assets.  See Note 8 to the Financial  Statements in
Item 8 above, which is incorporated herein by reference.

Tabular information concerning salaries, bonuses and other types of compensation
payable to executive  officers has not been included in this annual  report.  As
noted  above,  the  Partnership  has  no  executive  officers.   The  levels  of
compensation  payable to the General Partner and/or its affiliates is limited by
the terms of the Partnership  Agreement and may not be increased  therefrom on a
discretionary basis.

Item 12. Security Ownership of Certain Beneficial Owners and Management.

<TABLE>
<CAPTION>
                      Name and address of     Amount and Nature of         Percentage
Title of Class        Beneficial Ownership    Beneficial Ownership          of Class
--------------        --------------------    --------------------         ----------
<S>                   <C>                     <C>                           <C>
General Partnership   Related Independence    $1,000 capital                100%
Interest in the       L.L.C.                  contribution
Partnership           625 Madison Avenue      -directly owned
                      New York, NY  10022
</TABLE>

Independence  SLP IV L.P., a limited  partnership  whose general  partner is the
General Partner of the Partnership and which acts as the special limited partner
of each Local  Partnership,  holds a .01%  limited  partnership  interest in the
Local  Partnerships.  See Note 8 to the  Financial  Statements  in Item 8 above,
which information is incorporated herein by reference thereto.

Except  as set  forth  below no  person  is known by the  Partnership  to be the
beneficial owner of more than five percent of the Limited Partnership  Interests
and/or BACs; and neither the General  Partner nor any director or officer of the
General Partner beneficially owns any Limited Partnership Interests or BACs. The
following  table sets forth the number of BACs  beneficially  owned as of May 5,
2003 by (i) each BACs holder known to the  Partnership to be a beneficial  owner
of more than 5% of the BACs,  (ii) each  director and  executive  officer of the
General  Partner of RCMP and (iii) the directors  and executive  officers of the
General Partners of RCMP as a group.  Unless otherwise noted, all BACs are owned
directly with sole voting and dispositive powers.

                                       65
<PAGE>

<TABLE>
<CAPTION>

                                    Amount and Nature of       Percentage
Name of Beneficial Owner (1)        Beneficial Ownership        of Class
----------------------------        --------------------       ----------
<S>                                    <C>                        <C>
Lehigh Tax Credit Partners, Inc.       2,868.06(2)                6.3%
J. Michael Fried                       2,868.06(2)(3)             6.3%
Michael J. Wechsler                    --                         --
Alan P. Hirmes                         2,868.06(2)(3)             6.3%
Stuart J. Boesky                       2,868.06(2)(3)             6.3%
Stephen M. Ross                        2,868.06(2)(3)             6.3%
Marc D. Schnitzer                      2,868.06(2)(3)             6.3%
Glenn F. Hopps                         --                         --
Teresa Wicelinski                      --                         --

All directors and executive
officers of the general partner
of the Related General Partner as
a group (eight persons)                2,868.06(2)(3)             6.3%
</TABLE>

(1) The address for each of the persons in the table is 625 Madison Avenue,  New
York, New York 10022.

(2) As set forth in Schedule 13D filed by Lehigh Tax Credit  Partners III L.L.C.
("Lehigh III") and Lehigh Tax Credit Partners,  Inc. (the "Managing  Member") on
January 25, 1999 with the Securities and Exchange  Commission (the "Commission")
and pursuant to a letter  agreement dated October 6, 1998 among the Partnership,
Lehigh III and Related Independence  Associates IV L.P. ("RIA") (the "Standstill
Agreement"),  Lehigh III agreed that,  prior to October 6, 2008 (the "Standstill
Expiration  Date"), it will not and it will cause certain  affiliates not to (i)
seek  to  propose  to  enter   into,   directly  or   indirectly,   any  merger,
consolidation, business combination, sale or acquisition of assets, liquidation,
dissolution or other similar transaction  involving the Partnership,  (ii) form,
join or  otherwise  participate  in a "group"  (within  the  meaning  of Section
13(d)(3) of the Act) with respect to any voting  securities of the  Partnership,
except  that those  affiliates  bound by the  Standstill  Agreement  will not be
deemed to have  violated it and formed a "group"  solely by acting in accordance
with the Standstill Agreement,  (iii) disclose in writing to any third party any
intention,  plan or  arrangement  inconsistent  with the terms of the Standstill
Agreement,  or (iv) loan money to,  advise,  assist or  encourage  any person in
connection  with  any  action  inconsistent  with the  terms  of the  Standstill
Agreement,  Lehigh  III also  agreed  to vote its BACs in the same  manner  as a
majority of all voting BACs holders;  provided,  however,  Lehigh is entitled to
vote its BACs as it determines  with regard to any proposal (i) to remove RIA as
a general  partner of the  Partnership  or (ii)  concerning the reduction of any
fees,  profits,  distributions  or  allocations  for the  benefit  of RIA or its
affiliates.  The discussion herein of the Standstill Agreement is subject to and
qualified in its entirety by  reference  to such  agreement,  a copy of which is
attached  hereto  as an  exhibit  and  incorporated  herein  by  reference.  The
addresses of each of the Partnership,  Lehigh III and RIA is 625 Madison Avenue,
New York, New York 10022.

(3) Each such party serves as a director and executive officer of the Managing
Member and owns an equity interest therein except J. Michael Fried who owns only
an economic interest.

                                       66
<PAGE>

Item 13. Certain Relationships and Related Transactions.

The  Partnership  has and will continue to have certain  relationships  with the
General Partner and its  affiliates,  as discussed in Item 11 and also Note 8 to
the  Financial  Statements  in Item 8 above,  which are  incorporated  herein by
reference  thereto.  However,  there have been no direct financial  transactions
between the Partnership and the members and officers of the General Partner.

Item 14. Controls and Procedures

The Chief Executive Officer and Chief Financial Officer of Related  Independence
L.L.C.  which  is a  general  partner  of the  Partnership,  has  evaluated  the
Partnership's  disclosure  controls and procedures relating to the Partnership's
annual  report on Form 10-K for the period  ending  March 31, 2003 as filed with
the  Securities  and  Exchange  Commission  and has  judged  such  controls  and
procedures to be effective as of March 31, 2003 (the "Evaluation Date").

There have been no  significant  changes in the  internal  controls  or in other
factors  that could  significantly  affect  internal  controls  relating  to the
Partnership since the Evaluation Date.

                                       67
<PAGE>

                                     PART IV

Item 15. Exhibits, Financial Statement Schedules, and Reports on Form 8-K.

                                                                      Sequential
                                                                         Page
                                                                      ----------

(a) 1.   Financial Statements
         --------------------
         Independent Auditors' Report                                     16

         Consolidated Balance Sheets at March 31, 2003 and 2002           49

         Consolidated Statements of Operations for the Years Ended
         March 31, 2003, 2002 and 2001                                    50

         Consolidated Statements of Changes in Partners' Capital
         (Deficit) for the Years Ended March 31, 2003, 2002 and 2001      51

         Consolidated Statements of Cash Flows for the Years Ended
         March 31, 2003, 2002 and 2001                                    52

         Notes to Consolidated Financial Statements                       54

(a)2.    Consolidated Financial Statement Schedules
         ------------------------------------------

         Independent Auditors' Report                                     75

         Schedule I - Condensed Financial Information of Registrant       76

         Schedule III - Real Estate and Accumulated Depreciation          79

         All other schedules have been omitted because they are not
         required or because the required information is contained
         in the financial statements or notes thereto.

(a)3.    Exhibits
         --------
(3A)     Agreement of Limited Partnership of Independence Tax Credit
         Plus L.P. IV as adopted on February 22, 1995*

(3B)     Form of Amended and Restated Agreement of Limited Partnership
         of Independence Tax Credit Plus L.P. IV, attached to the
         Prospectus as Exhibit A**

(3C)     Certificate of Limited Partnership of Independence Tax Credit
         Plus L.P. IV as filed on February 22, 1995*

(10A)    Form of Subscription Agreement attached to the Prospectus as
         Exhibit B**

(10B)    Escrow Agreement between Independence Tax Credit Plus L.P. IV
         and Bankers Trust Company*

(10C)    Form of Purchase and Sales Agreement pertaining to the
         Partnership's acquisition of Local Partnership Interests*

                                       68
<PAGE>
Item 15. Exhibits, Financial Statement Schedules, and Reports on Form 8-K.
         (continued)

                                                                      Sequential
                                                                         Page
                                                                      ----------
(10D)    Form of Amended and Restated Agreement of Limited
         Partnership of Local Partnerships*

(21)     Subsidiaries of the Registrant

         *Incorporated herein as an exhibit by reference to exhibits
         filed with Post-Effective Amendment No. 4 to the
         Registration Statement on Form S-11 {Registration No.
         33-89968}

         **Incorporated herein as an exhibit by reference to
         exhibits filed with Post-Effective Amendment No. 8 to the
         Registration Statement on Form S-11 {Registration No.
         33-89968}

(b)      Reports on Form 8-K
         -------------------

         No reports on Form 8-K were filed during the quarter.

(c)      Additional Exhibits
         -------------------

         99.1 Certification   Pursuant  to  18
         U.S.C.   Section   1350,  as  adopted
         pursuant   to  Section   906  of  the
         Sarbanes-Oxley Act of 2002.                                      74

                                       69
<PAGE>

Item 15. Exhibits,  Financial  Statement  Schedules,  and  Reports on  Form 8-K.
         (continued)

                                                                  Jurisdiction
(c)      Subsidiaries of the Registrant (Exhibit 21)             of Organization
         -------------------------------------------             ---------------
         BX-8A Team Associates, L.P.                                    NY
         Westminster Park Plaza                                         CA
         Fawcett Street Limited Partnership                             WA
         Figueroa Senior Housing Limited Partnership                    CA
         NNPHI Senior Housing Limited Partnership                       CA
         Belmont/McBride Apartments Limited Partnership                 NJ
         New Zion Apartments Limited Partnership                        LA
         Bakery Village Urban Renewal Associates, L.P.                  NJ
         Sojourner Douglass, L.P.                                       NJ
         Marlton Housing Partnership, L.P.                              PA
         GP Kaneohe Limited Partnership                                 HI
         KSD Village Apartments, Phase II, Ltd.                         KY
         Kanisa Apartments, Ltd.                                        KY
         Guymon Housing Partners, L.P.                                  OK


(d)      Not applicable


                                       70
<PAGE>

                                   SIGNATURES
                                   ----------

Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  registrant  has duly  caused  this report to be signed on its
behalf by the undersigned, thereunto duly authorized.


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                      ------------------------------------
                                  (Registrant)



                               By:  RELATED INDEPENDENCE L.L.C.,
                                    a General Partner



Date:  May 30, 2003                 By: /s/ Alan P. Hirmes
                                        ------------------
                                        Alan P. Hirmes
                                        President, Chief Executive Officer
                                        and Chief Financial Officer
<PAGE>

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following  persons on behalf of the  registrant and
in the capacities and on the dates indicated:

<TABLE>
<CAPTION>


    Signature                              Title                           Date
-------------------          -------------------------------------     ------------
<S>                          <C>                                       <C>
                             President and Chief Executive Officer
                             Director and President of RCMP, Inc.,
/s/ Stephen M. Ross          the general partner of Related
-------------------          General II L.P., a Member of Related
Stephen M. Ross              Independence L.L.C.                       May 30, 2003



                             President and Member of
/s/ Alan P. Hirmes           Related Independence L.L.C.
------------------           President,   Chief  Executive  Officer
Alan P. Hirmes               and Chief Financial Officer               May 30, 2003



                             Director and Executive Vice President
/s/ Michael J. Wechsler      of RCMP, Inc., the  general partner of
-----------------------      Related  General  II L.P.,  a Member of
Michael J. Wechsler          Related Independence L.L.C.               May 30, 2003


/s/ Stuart J. Boesky
--------------------         Vice President and Member of
Stuart J. Boesky             Related Independence L.L.C.               May 30, 2003





/s/ Glenn F. Hopps
------------------           Treasurer of Related Independence
Glenn F. Hopps               L.L.C. (principal accounting officer)     May 30, 2003

</TABLE>


<PAGE>

                                  CERTIFICATION

I, Alan P.  Hirmes,  Chief  Executive  Officer  and Chief  Financial  Officer of
Related  Independence  L.L.C.  (the  "General  Partner"),  which is the  General
Partner of  Independence  Tax Credit  Plus L.P. IV (the  "Partnership"),  hereby
certify that:

     1.   I have  reviewed  this  annual  report on Form 10-K for the year ended
          March 31, 2003 of the Partnership;

     2.   Based on my knowledge,  this annual report does not contain any untrue
          statement  of a  material  fact  or  omit to  state  a  material  fact
          necessary  in  order  to make  the  statements  made,  in light of the
          circumstances  under which such  statements  were made, not misleading
          with respect to the period covered by this annual report;

     3.   Based on my knowledge,  the financial statements,  and other financial
          information  included in this  annual  report,  fairly  present in all
          material respects the financial  condition,  results of operations and
          cash flows of the Partnership as of, and for, the annual  presented in
          this annual report;

     4.   I am responsible for establishing and maintaining  disclosure controls
          and  procedures  (as defined in Exchange Act Rules 13a-14 and 15-d-14)
          for the Partnership and I have:

          a) designed  such  disclosure  controls and  procedures to ensure that
          material  information  relating  to  the  Partnership,  including  its
          consolidated subsidiaries,  is made known to me by others within those
          entities,  particularly  during the period in which this annual report
          was being prepared;

          b)  evaluated  the  effectiveness  of  the  Partnership's   disclosure
          controls and procedures as of March 31, 2003 (the "Evaluation  Date");
          and

          c)  presented  in  this  annual  report  my   conclusions   about  the
          effectiveness  of the disclosure  controls and procedures  based on my
          evaluation as of the Evaluation Date;

     5.   I  have  disclosed,  based  on  my  most  recent  evaluation,  to  the
          Partnership's  auditors  and to the Board of  Directors of the General
          Partner:

          a) all significant deficiencies in the design or operation of internal
          controls which could  adversely  affect the  Partnership's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the Partnership's  auditors any material  weaknesses in
          internal controls; and

          b) any fraud,  whether or not material,  that  involves  management or
          other  employees  who  have a  significant  role in the  Partnership's
          internal controls; and

     6.   I have  indicated  in this  annual  report  whether  or not there were
          significant  changes in  internal  controls or in other  factors  that
          could significantly affect internal controls subsequent to the date of
          our most recent  evaluation,  including  any  corrective  actions with
          regard to significant deficiencies and material weaknesses.

                            By: /s/ Alan P. Hirmes
                                ------------------
                                Alan P. Hirmes
                                President, Chief Executive Officer and
                                Chief Financial Officer
                                May 30, 2003


<PAGE>


                                                                    Exhibit 99.1


                            CERTIFICATION PURSUANT TO
                             18.U.S.C. SECTION 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In  connection  with the Annual Report of  Independence  Tax Credit Plus L.P. IV
(the "Partnership") on Form 10-K for the year ended March 31, 2003 as filed with
the Securities  and Exchange  Commission on the date hereof (the  "Report"),  I,
Alan P. Hirmes,  Chief Executive  Officer and Chief Financial Officer of Related
Independence  L.L.C.  which is the general partner of the Partnership,  certify,
pursuant to 18 U.S.C.  Section 1350,  as adopted  pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, that:


     (1) The Report fully  complies  with the  requirements  of section 13(a) or
15(d) of the Securities Exchange Act of 1934; and


     (2)  The  information  contained  in the  Report  fairly  presents,  in all
material  respects,  the  financial  condition  and result of  operations of the
Partnership.


By:  /s/ Alan P. Hirmes
     ------------------
     Alan P. Hirmes
     President, Chief Executive Officer and  Chief Financial Officer
     May 30, 2003


<PAGE>


          INDEPENDENT AUDITORS' REPORT ON FINANCIAL STATEMENT SCHEDULES
          -------------------------------------------------------------


TO THE PARTNERS OF
INDEPENDENCE TAX CREDIT PLUS L.P. IV AND SUBSIDIARIES


In  connection  with our  audits of the  consolidated  financial  statements  of
INDEPENDENCE TAX CREDIT PLUS L.P. IV AND SUBSIDIARIES  included in the Form 10-K
as  presented in our opinion  dated May 12, 2003,  which is based in part on the
reports of other  auditors,  we have also  audited  supporting  Schedule I as of
March 31, 2003 and 2002 and for the years ended 2003, 2002 and 2001 and Schedule
III as of March 31, 2003 and for the years ended March 31, 2003,  2002 and 2001.
In our opinion,  based on our audits,  the reports of the other auditors,  these
schedules  present fairly,  when read in conjunction with the related  financial
statements, the financial data required to be set forth therein.




/s/ Friedman Alpren & Green LLP
Friedman Alpren & Green LLP

New York, New York
May 12, 2003



<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                   SCHEDULE I
                  CONDENSED FINANCIAL INFORMATION OF REGISTRANT
              (Not Including Consolidated Subsidiary Partnerships)


                            CONDENSED BALANCE SHEETS


                                     ASSETS
<TABLE>
<CAPTION>


                                                               March 31,
                                                      --------------------------
                                                         2003           2002*
                                                      -----------    -----------
<S>                                                   <C>            <C>
Cash and cash equivalents                             $ 1,215,461    $ 1,509,840
Investment in subsidiary partnerships                  23,372,840     26,224,447
Cash held in escrow                                       615,135        741,459
Other assets                                            1,800,821      1,606,401
                                                      -----------    -----------

Total assets                                          $27,004,257    $30,082,147
                                                      ===========    ===========


            LIABILITIES AND PARTNERS' CAPITAL


Due to general partner and affiliates                 $ 1,338,353    $ 1,038,873
Other liabilities                                          50,410         48,629
                                                      -----------    -----------

Total liabilities                                       1,388,763      1,087,502

Partners' capital                                      25,615,494     28,994,645
                                                      -----------    -----------

Total liabilities and partners' capital               $27,004,257    $30,082,147
                                                      ===========    ===========

</TABLE>

* Reclassified for comparative purposes.


<PAGE>



                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                   SCHEDULE I
                  CONDENSED FINANCIAL INFORMATION OF REGISTRANT
              (Not Including Consolidated Subsidiary Partnerships)


                       CONDENSED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                           Year Ended March 31,
                                                -----------------------------------------
                                                   2003           2002            2001
                                                -----------    -----------    -----------
<S>                                             <C>            <C>            <C>
Revenues

Interest income                                 $    13,751    $    58,353    $   161,204
                                                -----------    -----------    -----------
Expenses

Administrative and management                       114,727        105,301        245,743
Administrative and management-related parties       448,976        453,977        462,472
                                                -----------    -----------    -----------

Total expenses                                      563,703        559,278        708,215
                                                -----------    -----------    -----------

Loss from operations                               (549,952)      (500,925)      (547,011)

Equity in loss of subsidiary partnerships        (2,829,199)    (2,805,537)    (3,226,655)
                                                -----------    -----------    -----------

Net loss                                        $(3,379,151)   $(3,306,462)   $(3,773,666)
                                                ===========    ===========    ===========

</TABLE>


<PAGE>



                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                   SCHEDULE I
                  CONDENSED FINANCIAL INFORMATION OF REGISTRANT
              (Not Including Consolidated Subsidiary Partnerships)

                       CONDENSED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                 Year Ended March 31,
                                                      -----------------------------------------
                                                         2003           2002*           2001
                                                      -----------    -----------    -----------
<S>                                                   <C>            <C>            <C>
Cash flows from operating activities:

Net loss                                              $(3,379,151)   $(3,306,462)   $(3,773,666)
                                                      -----------    -----------    -----------

Adjustments to reconcile net loss
   to net cash (used in) provided by operating
   activities:

Equity in loss of subsidiary partnerships               2,829,199      2,805,537      3,226,655
(Increase) decrease in other assets                      (194,420)       493,009        492,651
Increase in liabilities:
Due to general partner and affiliates                     299,480        166,318        400,234
Other liabilities                                           1,781          1,042          7,496
                                                      -----------    -----------    -----------

Total adjustments                                       2,936,040      3,465,906      4,127,036
                                                      -----------    -----------    -----------

Net cash (used in) provided by operating activities      (443,111)       159,444        353,370
                                                      -----------    -----------    -----------

Cash flows from investing activities:

Decrease in investments available for sale                      0              0      3,100,000
Decrease (increase) in cash held in escrow                126,324       (245,958)       133,799
Increase (decrease) in investments in subsidiary
  partnerships                                             22,408     (1,204,157)    (1,915,793)
                                                      -----------    -----------    -----------

Net cash provided by (used in) investing activities       148,732     (1,450,115)     1,318,006
                                                      -----------    -----------    -----------

Net (decrease) increase in cash and cash
  equivalents                                            (294,379)    (1,290,671)     1,671,376

Cash and cash equivalents, beginning of year            1,509,840      2,800,511      1,129,135
                                                      -----------    -----------    -----------

Cash and cash equivalents, end of year                $ 1,215,461    $ 1,509,840    $ 2,800,511
                                                      ===========    ===========    ===========

</TABLE>

* Reclassified for comparative purposes.

<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                                  SCHEDULE III
                    REAL ESTATE AND ACCUMULATED DEPRECIATION
                   Partnership Property Pledged as Collateral
                                 MARCH 31, 2003

<TABLE>
<CAPTION>



                                                            Initial Cost to Partnership   Cost Capitalized
                                                            ---------------------------    Subsequent to
                                                                          Buildings and     Acquisition:
    Description                              Encumbrances      Land       Improvements      Improvemets
-------------------                          ------------   -----------   -------------   ----------------
<S>                                          <C>            <C>           <C>             <C>
Apartment Complexes

BX-8A Team Associates, L.P.                  $  1,829,044   $     5,467   $   2,667,819   $        311,594
  Bronx, NY
Westminster Park Plaza                          7,783,379     1,197,697       8,093,774          1,939,639
  Los Angeles, CA
Fawcett Street Limited Partnership              2,011,712       390,654       4,247,465            188,181
  Tacoma, WA
Figueroa Senior Housing Limited Partnership     3,009,313       279,000       4,978,250            540,817
  Los Angeles, CA
NNPHI Senior Housing Limited Partnership        3,930,208       709,657       6,135,419            346,094
  Los Angeles, CA
Belmont/McBride Apartments                      2,848,672       154,934       5,627,693          2,512,963
  Limited Partnership
  Paterson, NJ
Sojourner Douglass, L.P.                        1,977,352       141,297       2,573,950            112,727
  Paterson, NJ
New Zion Apartments Limited Partnership         1,034,853        20,000       2,688,770             76,839
  Shreveport, LA
Bakery Village Urban Renewal                    4,580,003        50,000      14,912,416          2,731,224
  Associates, L.P.
  Montclair, NJ
Marlton Housing Partnership, L.P.               1,849,000         2,648       1,547,121          1,735,719
  Philadelphia, PA
GP Kaneohe Limited Partnership                  1,984,232             0       3,306,828             43,110
  Kaneohe, HI
KSD Village Apartments, Phase II Ltd.             415,053             0         887,539             29,870
  Danville, KY
Kanisa Apartments Ltd.                          1,408,217       106,592       4,846,543            102,813
  Fayette County, KY
Guymon Housing Partners, L.P.                   1,739,968        84,918       4,238,907            739,965
  Guymon, OK
                                             ------------   -----------   -------------   ----------------

                                             $ 36,401,006   $ 3,142,864   $  66,752,494   $     11,411,555
                                             ============   ===========   =============   ================
<CAPTION>

                                             Gross Amount at which Carried At Close of Period
                                             ------------------------------------------------
                                                            Buildings and                   Accumulated
    Description                                  Land       Improvements        Total       Depreciation
-------------------                          ------------   -------------   -------------   ------------
<S>                                          <C>            <C>             <C>             <C>
Apartment Complexes

BX-8A Team Associates, L.P.                  $     11,579   $   2,973,301   $   2,984,880   $    706,605
  Bronx, NY
Westminster Park Plaza                          1,292,427       9,938,683      11,231,110      1,582,355
  Los Angeles, CA
Fawcett Street Limited Partnership                396,383       4,429,917       4,826,300      1,031,183
  Tacoma, WA
Figueroa Senior Housing Limited Partnership       291,377       5,506,690       5,798,067      1,053,545
  Los Angeles, CA
NNPHI Senior Housing Limited Partnership          715,387       6,475,783       7,191,170      1,085,218
  Los Angeles, CA
Belmont/McBride Apartments                        182,633       8,112,957       8,295,590      1,339,327
  Limited Partnership
  Paterson, NJ
Sojourner Douglass, L.P.                          143,996       2,683,978       2,827,974        572,004
  Paterson, NJ
New Zion Apartments Limited Partnership            22,699       2,762,910       2,785,609        599,018
  Shreveport, LA
Bakery Village Urban Renewal                       52,699      17,640,941      17,693,640      2,011,812
  Associates, L.P.
  Montclair, NJ
Marlton Housing Partnership, L.P.                   4,355       3,281,133       3,285,488        310,185
  Philadelphia, PA
GP Kaneohe Limited Partnership                        613       3,349,325       3,349,938        349,654
  Kaneohe, HI
KSD Village Apartments, Phase II Ltd.                 612         916,796         917,408         92,808
  Danville, KY
Kanisa Apartments Ltd.                            107,205       4,948,743       5,055,948        433,364
  Fayette County, KY
Guymon Housing Partners, L.P.                      85,531       4,978,260       5,063,791        748,121
  Guymon, OK
                                             ------------   -------------   -------------   ------------

                                             $  3,307,496   $  77,999,417   $  81,306,913   $ 11,915,199
                                             ============   =============   =============   ============
<CAPTION>
                                                                               Life on which
                                                                              Depreciation in
                                                Year of                        Latest Income
                                              Construction/       Date         Statements are
    Description                                Renovation       Acquired        Computed (a)
-------------------                           -------------   -------------   ---------------
<S>                                              <C>            <C>              <C>
Apartment Complexes

BX-8A Team Associates, L.P.                      1995-96        Oct. 1995        27.5 years
  Bronx, NY
Westminster Park Plaza                           1996-97        June 1996        27.5 years
  Los Angeles, CA
Fawcett Street Limited Partnership               1996-97        June 1996        27.5 years
  Tacoma, WA
Figueroa Senior Housing Limited Partnership      1996-97        Nov. 1996        27.5 years
  Los Angeles, CA
NNPHI Senior Housing Limited Partnership         1996-97        Dec. 1996        27.5 years
  Los Angeles, CA
Belmont/McBride Apartments                       1997-98        Jan. 1997        27.5 years
  Limited Partnership
  Paterson, NJ
Sojourner Douglass, L.P.                         1997-98        Feb. 1997        27.5 years
  Paterson, NJ
New Zion Apartments Limited Partnership          1997-98        Oct. 1997        27.5 years
  Shreveport, LA
Bakery Village Urban Renewal                     1997-98        Dec. 1997        27.5 years
  Associates, L.P.
  Montclair, NJ
Marlton Housing Partnership, L.P.                1998-99        May 1998         27.5 years
  Philadelphia, PA
GP Kaneohe Limited Partnership                   1999-00        July 1999        7-40 years
  Kaneohe, HI
KSD Village Apartments, Phase II Ltd.            1999-00        July 1999        10-40 years
  Danville, KY
Kanisa Apartments Ltd.                           1998-99        Oct. 1999        5-40 years
  Fayette County, KY
Guymon Housing Partners, L.P.                    1998-99        Dec. 1999        27.5 years
  Guymon, OK

</TABLE>

(a)  Depreciation is computed using primarily the straight-line  method over the
     estimated useful lives determined by the Partnership date of acquisition.

<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                                  SCHEDULE III
                    REAL ESTATE AND ACCUMULATED DEPRECIATION
                   Partnership Property Pledged as Collateral
                                 MARCH 31, 2003
<TABLE>
<CAPTION>
                                               Cost of Property and Equipment                    Accumulated Depreciation
                                         -------------------------------------------   ------------------------------------------
                                                                            Year Ended March 31,
                                         ----------------------------------------------------------------------------------------
                                             2002            2001           2000           2002           2001           2000
                                         ------------    ------------   ------------   ------------   ------------   ------------
<S>                                      <C>             <C>            <C>            <C>            <C>            <C>
Balance at beginning of year             $ 81,381,851    $ 80,299,731   $ 79,028,996   $  9,458,063   $  7,000,352   $  4,577,654
(Adjustment to) additions during year:
Land, building and improvements               (74,938)      1,082,120      1,270,735
Depreciation expense                                                                      2,457,136      2,457,711      2,422,698
                                         ------------    ------------   ------------   ------------   ------------   ------------
Balance at close of year                 $ 81,306,913    $ 81,381,851   $ 80,299,731   $ 11,915,199   $  9,458,063   $  7,000,352
                                         ============    ============   ============   ============   ============   ============

</TABLE>

At the time the Local Partnerships were acquired by Independence Tax Credit Plus
L.P. IV, the entire purchase price paid by Independence  Tax Credit Plus L.P. IV
was pushed down to the Local  Partnerships  as property  and  equipment  with an
offsetting credit to capital.