<PAGE>

                                   FORM 10-QSB
                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


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


For the quarterly period ended     June 30, 1999
                                   -------------


Commission file number                0-13523
                                   -------------


                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP
--------------------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)




           Maryland                                       52-1328767
-----------------------------------------         ------------------------
     (State or other jurisdiction of                   (I.R.S. Employer
     incorporation or organization)                   Identification No.)



11200 Rockville Pike, Rockville, Maryland                   20852
-----------------------------------------         ------------------------
(Address of principal executive offices)                  (Zip Code)



                                 (301) 468-9200
--------------------------------------------------------------------------
                (Issuer's telephone number, including area code)


     Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months, and (2) has
been subject to such filing requirements for the past 90 days.
Yes [X]   No [ ]

     State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date:


     Not applicable                            Not applicable
--------------------------         ---------------------------------------
        (Class)                       (Outstanding at June 30, 1999)
<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                              INDEX TO FORM 10-QSB

                       FOR THE QUARTER ENDED JUNE 30, 1999



                                                                 Page
                                                                 ----

PART I.   Financial Information

Item 1.   Financial Statements

          Consolidated Balance Sheets - June 30, 1999 and
            December 31, 1998 . . . . . . . . . . . . . . . .        1

          Consolidated Statements of Operations and Accumulated
            Losses - for the three and six months ended
            June 30, 1999 and 1998  . . . . . . . . . . . . .        2

          Consolidated Statements of Cash Flows - for the
            six months ended June 30, 1999 and 1998 . . . . .        3

          Notes to Consolidated Financial Statements
            June 30, 1999 and 1998  . . . . . . . . . . . . .        4

Item 2.   Management's Discussion and Analysis of Financial
            Condition and Results of Operations . . . . . . .       16

PART II.  Other Information

Item 3.   Defaults upon Senior Securities . . . . . . . . . .       22

Item 6.   Exhibits and Reports on Form 8-K  . . . . . . . . .       25

Signature   . . . . . . . . . . . . . . . . . . . . . . . . .       26

Exhibit Index . . . . . . . . . . . . . . . . . . . . . . . .       27
<PAGE>
PART I.   FINANCIAL INFORMATION
          ---------------------
ITEM 1.   FINANCIAL STATEMENTS
          ---------------------

                  CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                            CONSOLIDATED BALANCE SHEETS

                                      ASSETS
<TABLE>
<CAPTION>
                                                                                                 June 30,       December 31,
                                                                                                   1999            1998
                                                                                               -------------    ------------
                                                                                                (Unaudited)
<S>                                                                                            <C>              <C>
Investments in and advances to partnerships                                                    $  32,077,464    $  31,835,072
Partnership interest held in escrow                                                                  965,089               --
Cash and cash equivalents                                                                         11,237,439       10,765,753
Restricted cash equivalents                                                                           50,400           50,400
Acquisition fees, principally paid to related parties, net of
  accumulated amortization of $390,456 and $389,111, respectively                                    673,505          708,083
Property purchase costs, net of accumulated amortization of
  $363,821 and $365,258, respectively                                                                615,697          652,206
Other assets                                                                                              --           58,378
                                                                                               -------------    -------------
      Total assets                                                                             $  45,619,594    $  44,069,892
                                                                                               =============    =============


                         LIABILITIES AND PARTNERS' DEFICIT

Due on investments in partnerships                                                             $  40,576,868    $  36,976,223
Accrued interest payable                                                                         102,243,320       96,821,772
Accounts payable                                                                                     130,561          147,537
                                                                                               -------------    -------------
      Total liabilities                                                                          142,950,749      133,945,532
                                                                                               -------------    -------------

Commitments and contingencies

Partners' capital (deficit):

  Capital paid-in:
    General Partners                                                                                   2,000            2,000
    Limited Partners                                                                              73,501,500       73,501,500
                                                                                               -------------    -------------
                                                                                                  73,503,500       73,503,500

  Less:
    Accumulated distributions to partners                                                         (7,654,870)      (7,654,870)
    Offering costs                                                                                (7,562,894)      (7,562,894)
    Accumulated losses                                                                          (155,616,891)    (148,161,376)
                                                                                               -------------    -------------
      Total partners' deficit                                                                    (97,331,155)     (89,875,640)
                                                                                               -------------    -------------
      Total liabilities and partners' deficit                                                  $  45,619,594    $  44,069,892
                                                                                               =============    =============
</TABLE>

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

                                         -1-
<PAGE>
PART I.   FINANCIAL INFORMATION
          ---------------------
ITEM 1.   FINANCIAL STATEMENTS
          ---------------------

                   CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                       CONSOLIDATED STATEMENTS OF OPERATIONS

                               AND ACCUMULATED LOSSES

                                     (Unaudited)
<TABLE>
<CAPTION>
                                                                  For the three months ended      For the six months ended
                                                                           June 30,                        June 30,
                                                                -----------------------------   -----------------------------
                                                                    1999            1998            1999            1998
                                                                -------------   -------------   -------------   -------------
<S>                                                             <C>             <C>             <C>             <C>
Share of income from partnerships                               $   1,611,077   $     607,638   $   2,141,634   $     969,952
                                                                -------------   -------------   -------------   -------------

Other revenue and  expenses:

 Revenue:
   Interest and other income                                          126,933         142,733         247,202         288,156
                                                                -------------   -------------   -------------   -------------
 Expenses:
   Interest                                                         4,746,745       4,241,791       9,443,027       8,483,582
   Management fee                                                      93,750          93,750         187,500         187,500
   General and administrative                                          71,694          52,059         135,143         102,271
   Professional fees                                                   26,534          33,131          53,131          66,175
   Amortization of deferred costs                                      12,330          13,364          25,550          26,728
                                                                -------------   -------------   -------------   -------------
                                                                    4,951,053       4,434,095       9,844,351       8,866,256
                                                                -------------   -------------   -------------   -------------
      Total other revenue and expenses                             (4,824,120)     (4,291,362)     (9,597,149)     (8,578,100)
                                                                -------------   -------------   -------------   -------------

Net loss                                                           (3,213,043)     (3,683,724)     (7,455,515)     (7,608,148)

Accumulated losses, beginning of period                          (152,403,848)   (136,931,587)   (148,161,376)   (133,007,163)
                                                                -------------   -------------   -------------   -------------

Accumulated losses, end of period                               $(155,616,891)  $(140,615,311)  $(155,616,891)  $(140,615,311)
                                                                =============   =============   =============   =============

Net loss allocated to General Partners (1.51%)                  $     (48,517)  $     (55,624)  $    (112,578)  $    (114,883)
                                                                =============   =============   =============   =============
Net loss allocated to Initial and Special
  Limited Partners (1.49%)                                      $     (47,874)  $     (54,887)  $    (111,087)  $    (113,361)
                                                                =============   =============   =============   =============
Net loss allocated to Additional Limited
  Partners (97%)                                                $  (3,116,652)  $  (3,573,213)  $  (7,231,850)  $  (7,379,904)
                                                                =============   =============   =============   =============
Net loss per unit of Additional Limited
  Partner Interest based on 73,500 units outstanding            $      (42.40)  $      (48.62)  $      (98.39)  $     (100.41)
                                                                =============   =============   =============   =============
</TABLE>

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

                                     -2-
<PAGE>
PART I.   FINANCIAL INFORMATION
          ---------------------
ITEM 1.   FINANCIAL STATEMENTS
          ---------------------

                  CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                  (Unaudited)

<TABLE>
<CAPTION>
                                                                                                 For the six months ended
                                                                                                         June 30,
                                                                                               -----------------------------
                                                                                                   1999            1998
                                                                                               ------------    ------------
<S>                                                                                            <C>             <C>
Cash flows from operating activities:
  Net loss                                                                                     $ (7,455,515)   $ (7,608,148)

  Adjustments to reconcile net loss to net cash
    (used in) provided by operating activities:
    Share of income from partnerships                                                            (2,141,634)       (969,952)
    Amortization of discount on purchase money notes                                              3,600,645       3,049,657
    Amortization of deferred costs                                                                   25,550          26,728

    Changes in assets and liabilities:
      Decrease in other assets                                                                       58,378         909,373
      Increase in accrued interest payable                                                        5,842,382       5,433,925
      Payment of purchase money note interest                                                      (420,836)       (272,155)
      Decrease in accounts payable                                                                  (16,975)        (93,202)
      Decrease in consulting fees payable to related parties                                             --          (8,869)
                                                                                               ------------    ------------
        Net cash (used in) provided by operating activities                                        (508,005)        467,357
                                                                                               ------------    ------------

Cash flows from investing activities:
  Receipt of distributions from partnerships                                                        979,691         667,022
                                                                                               ------------    ------------

Cash flows from financing activities:
  Payment of purchase money note principal                                                               --         (36,113)
                                                                                               ------------    ------------

Net increase in cash and cash equivalents                                                           471,686       1,098,266

Cash and cash equivalents, beginning of period                                                   10,765,753      10,197,871
                                                                                               ------------    ------------

Cash and cash equivalents, end of period                                                       $ 11,237,439    $ 11,296,137
                                                                                               ============    ============


Supplemental cash flow information
  Cash paid during the period for interest                                                     $    420,836    $    272,155
                                                                                               ============    ============
</TABLE>


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

                                         -3-
<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             JUNE 30, 1999 and 1998

                                   (Unaudited)


1.   BASIS OF PRESENTATION

     In the opinion of C.R.I., Inc. (CRI), the Managing General Partner, the
accompanying unaudited financial statements reflect all adjustments, consisting
of normal recurring accruals, necessary for a fair presentation of the financial
position of Capital Realty Investors-IV Limited Partnership (the Partnership) as
of June 30, 1999, and the results of its operations for the three and six months
ended June 30, 1999 and 1998, and its cash flows for the six months ended June
30, 1999 and 1998.  The results of operations for the interim period ended June
30, 1999, are not necessarily indicative of the results to be expected for the
full year.

     The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles and with the
instructions to Form 10-QSB.  Certain information and accounting policies and
footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed or
omitted pursuant to such instructions.  These condensed financial statements
should be read in conjunction with the financial statements and notes thereto
included in the Partnership's annual report on Form 10-KSB at December 31, 1998.


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS

a.   Due on investments in partnerships
     ----------------------------------

     The Partnership's obligations with respect to its investments in Local
Partnerships, in the form of purchase money notes having a principal balance of
$42,011,391 (exclusive of unamortized discount on purchase money notes of
$1,434,523) plus accrued interest of $102,243,320 as of June 30, 1999, are
payable in full upon the earliest of:  (1) sale or refinancing of the respective
Local Partnership's rental property; (2) payment in full of the respective Local
Partnership's permanent loan; or (3) maturity.  Purchase money notes in the
aggregate principal amount of $1,370,000 matured on July 27, 1994 but have not
been paid or extended, as discussed below.  Purchase money notes in the
aggregate principal amount of $1,330,000 matured on August 31, 1997 and have
been extended to January 3, 2000.  Purchase money notes in the aggregate
principal amounts of $2,035,000 and $868,000 matured on July 1, 1999 and July
31, 1999, respectively, and have not been paid or extended.  A purchase money
note in the principal amount of $2,301,310 matured on July 31, 1999, and was
paid in full on July 30, 1999.  Purchase money notes in the aggregate principal
amount of $7,070,000 matured on August 1, 1999 and have not been paid or
extended.  Purchase money notes in the aggregate principal amounts of
$6,827,081, $2,500,000, $4,625,000 and $7,570,000 mature later in August, and in
September, October and December of 1999, respectively.  Purchase money notes in
the aggregate principal amounts of $1,500,000 and $1,350,000 were due to mature
on September 27, 1999 and October 31, 1999, respectively, and were extended to
September 27, 2002 and April 30, 2000, respectively.  The remaining two purchase
money notes mature in 2000 and 2025.

     The purchase money notes, which are nonrecourse to the Partnership, are
generally secured by the Partnership's interest in the respective Local
Partnerships.  There is no assurance that the underlying properties will have

                                       -4-
<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             JUNE 30, 1999 and 1998

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

sufficient appreciation and equity to enable the Partnership to pay the purchase
money notes' principal and accrued interest when due.  If a purchase money note
is not paid in accordance with its terms, the Partnership will either have to
renegotiate the terms of repayment or risk losing its partnership interest in
the respective Local Partnership.  The Partnership's inability to pay certain of
the purchase money note principal and accrued interest balances when due, and
the resulting uncertainty regarding the Partnership's continued ownership
interest in the related Local Partnerships, does not adversely impact the
Partnership's financial condition because the purchase money notes are
nonrecourse and secured solely by the Partnership's interest in the related
Local Partnerships.  Therefore, should the investment in any of the Local
Partnerships with maturing purchase money notes not produce sufficient value to
satisfy the related purchase money notes, the Partnership's exposure to loss is
limited because the amount of the nonrecourse indebtedness of each of the
maturing purchase money notes exceeds the carrying amount of the investment in
and advances to each of the related Local Partnerships.  Thus, even a complete
loss of one of these Local Partnerships would not have a material adverse impact
on the financial condition of the Partnership.  See further discussion of
certain purchase money notes below.

     The following chart presents information related to purchase money notes
which mature through June 30, 2000, or which have matured and remain unpaid or
unextended as of August 12, 1999.  Information for the third quarter of 1999
does not include a note which matured during that quarter and which was paid
off, in full, on July 30, 1999.  See further discussion of this purchase money
note, below.



























                                       -5-
<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             JUNE 30, 1999 and 1998

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

<TABLE>
<CAPTION>
                                            Carrying Amount
                                            of Partnership's
                                             Investment in                Aggregate                   Aggregate
                                            and Advances to               Principal                    Accrued
                   Number of                Underlying Local               Balance                    Interest
  Purchase         Underlying               Partnerships as                 as of                    Balance as of
   Money Note        Local      Percentage      of June       Percentage    June        Percentage       June        Percentage
 (PMN) Maturity   Partnerships   of Total      30, 1999        of Total    30, 1999      of Total      30, 1999       of Total
----------------  ------------  ----------  ----------------  ----------  -----------   ----------   -------------   ----------
<S>               <C>           <C>         <C>               <C>         <C>           <C>          <C>             <C>
3rd Quarter 1994        1             3%       $ 1,235,106          4%    $ 1,370,000          3%     $  5,910,736         6%
3rd Quarter 1999       14            40%        15,802,563         49%     19,300,081         46%       45,105,791        44%
4th Quarter 1999        9            26%         6,845,356         21%     12,195,000         29%       28,266,582        28%
1st Quarter 2000        1             3%                --          -%      1,330,000          3%        3,421,037         3%
2nd Quarter 2000        2             5%         3,540,377         11%      3,515,000          9%       16,067,540        16%
                     ----         -----        -----------      -----     -----------      -----      ------------     -----
Total through
  6/30/2000            27            77%       $27,423,402         85%    $37,710,081         90%     $ 98,771,686        97%
                     ====         =====        ===========      =====     ===========      =====      ============     =====
Total, Local
 Partnerships          35           100%       $32,077,464        100%    $42,011,391        100%     $102,243,320       100%
                     ====         =====        ===========      =====     ===========      =====      ============     =====

</TABLE>

     The Managing General Partner is continuing to investigate possible
alternatives to reduce the Partnership's debt obligations.  These alternatives
include, among others, retaining the cash available for distribution to meet the
purchase money note requirements, paying off certain purchase money notes at a
discounted price, extending the due dates of certain purchase money notes,
refinancing the respective properties' underlying debt, or selling the
underlying real estate and using the Partnership's share of the proceeds to pay
or buy down certain purchase money note obligations.  Although the Managing
General Partner has had some success applying these strategies in the past, the
Managing General Partner cannot assure that these strategies will be acceptable
to all of the noteholders.  Based on preliminary discussions with the holders of
purchase money notes maturing through June 30, 2000, the Managing General
Partner anticipates that, at least in some instances, the noteholders may not be
willing to negotiate any extension or discounted payoff.  In such instances,
upon maturity of the purchase money notes, if the purchase money notes remain
unpaid, the noteholders may have the right to foreclose on the Partnership's
interest in the related Local Partnerships.  In the event of a foreclosure, the
excess of the nonrecourse indebtedness over the carrying amount of the
Partnership's investment in the related Local Partnership would be deemed
cancellation of indebtedness income which would be taxable to Limited Partners
at a federal tax rate of up to 39.6%.  Additionally, in the event of a
foreclosure, the Partnership would lose its investment in the Local Partnership
and, likewise, its share of future cash flow distributed by the Local
Partnership from rental operations, and sales or refinancings.  Of the 35 Local
Partnerships in which the Partnership is invested as of both June 30, 1999 and

                                        -6-
<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             JUNE 30, 1999 and 1998

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

December 31, 1998, the 27 Local Partnerships with associated purchase money
notes which mature through June 30, 2000 and which remain unpaid or unextended
as of August 12, 1999, represent the following percentages of the Partnership's
total distributions received from Local Partnerships and share of income from
Local Partnerships.

<TABLE>
<CAPTION>


                        Percentage of Total      Partnership's Share of
   For the Six Month   Distributions Received         Income from
    Periods Ending     from Local Partnerships     Local Partnerships
   -----------------   -----------------------   ----------------------
   <S>                 <C>                       <C>
   June 30, 1999                58%                    $1,440,368
   June 30, 1998                49%                       429,771

</TABLE>

     Interest expense on the Partnership's purchase money notes for the three
and six months ended June 30, 1999 was $4,746,745 and $9,443,027, respectively,
and $4,241,791 and $8,483,582 during the three and six months ended June 30,
1998, respectively.  Amortization of discount on purchase money notes increased
interest expense during the three and six months ended June 30, 1999 by
$1,800,322 and $3,600,645, respectively, and by $1,524,830 and $3,049,657 during
the three and six months ended June 30, 1998, respectively.  The accrued
interest on the purchase money notes of $102,243,320 and $96,821,772 as of June
30, 1999 and December 31, 1998, respectively, is due on the respective maturity
dates of the purchase money notes or earlier, in some instances, if (and to the
extent of a portion thereof) the related Local Partnership has distributable net
cash flow, as defined in the relevant Local Partnership agreement.

                                 Chippewa County
                                 ---------------

     The Partnership defaulted on its purchase money note related to Chippewa
County Housing Partners (Chippewa County) on August 1, 1999 when the note
matured and was not paid.  The default amount included principal and accrued
interest of $860,000 and $2,297,423, respectively.  As of August 12, 1999,
principal and accrued interest of $860,000 and $2,299,306 respectively, were
due.  The Partnership, together with the Local Partnership and the noteholders,
are currently exploring settlement options in connection with a possible
extension of the maturity date of the purchase money note, while also pursuing a
possible sale of the property or a refinancing of the first mortgage loan
related to Chippewa County.  There is no assurance that any such extension, sale
or refinancing will occur.






                                       -7-
<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             JUNE 30, 1999 and 1998

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

                                 Cottonwood Park
                                 ---------------

     The Partnership defaulted on its purchase money note related to Shawnee
Heights Limited Partnership (Cottonwood Park) on August 1, 1999 when the note
matured and was not paid.  The default amount included principal and accrued
interest of $975,000 and $2,576,421, respectively.  As of August 12, 1999,
principal and accrued interest of $975,000 and 2,579,634, respectively, were
due.  The Partnership is currently negotiating to extend the maturity date of
the purchase money note for five years.  There is no assurance that an extension
will be obtained.

                                Crescent Gardens
                                ----------------

     The Partnership defaulted on its purchase money notes related to Crescent
Gardens Associates Limited Partnership (Crescent Gardens) on July 31, 1999 when
the notes matured and were not paid.  The default amount included aggregate
principal and accrued interest of $868,000 and $1,974,004, respectively.  As of
August 12, 1999, aggregate principal and accrued interest of $868,000 and
$1,975,915, respectively, were due.  The Partnership is currently negotiating to
extend the maturity date of the purchase money notes.  There is no assurance
that an extension will be obtained.

                                 Deangelis Manor
                                 ---------------

     The Partnership defaulted on its purchase money note related to Natick
Associates (Deangelis Manor) on July 1, 1999 when the note matured and was not
paid.  The default amount included principal and accrued interest of $1,015,000
and $2,677,971, respectively.  As of August 12, 1999, principal and accrued
interest of $1,015,000 and $2,708,034, respectively, were due.  The Partnership
is currently negotiating a discounted payoff of the note with the noteholders.
There is no assurance that a discounted payoff will occur.

                                Glenridge Gardens
                                -----------------

     The Partnership defaulted on its purchase money note related to Glenridge
Development Company (Glenridge Gardens) on August 1, 1999 when the note matured
and was not paid.  The default amount included principal and accrued interest of
$740,000 and $1,875,229, respectively.  As of August 12, 1999, principal and
accrued interest of $740,000 and $1,876,638, respectively, were due.  The
Partnership is currently negotiating to extend the maturity date of the purchase
money note for five years.  There is no assurance that an extension will be
obtained.

                              Harborview Apartments
                              ---------------------

     The Partnership defaulted on its purchase money notes related to Harborview
Apartments Associates Limited Partnership (Harborview Apartments) on August 1,

                                       -8-
<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             JUNE 30, 1999 and 1998

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

1999 when the notes matured and were not paid.  The default amount included
principal and accrued interest of $3,000,000 and $5,342,321, respectively.  As
of August 12, 1999, principal and accrued interest of $3,000,000 and $5,354,698
respectively, were due.  The Partnership is currently negotiating an extension
of the maturity date or a discounted payoff of the purchase money notes.  There
is no assurance that an extension or a discounted payoff will occur.

                                Highland Village
                                ----------------

     The Managing General Partner is currently negotiating an extension of the
maturity date of the purchase money notes related to Highland Village Associates
(Highland Village).  The purchase money notes, in the aggregate principal amount
of $1,100,000, mature on October 31, 1999.  In connection with the proposed
extension of the maturity date, the Managing General Partner, the local managing
general partner and the noteholders are jointly exploring various options to
refinance the Massachusetts Housing Finance Agency (MHFA) and HUD Section 236
interest rate subsidized mortgage loan related to this property.  There is no
assurance that an extension will be obtained, or that a refinancing of the
mortgage loan will occur.

                                 Holiday Village
                                 ---------------

     The Partnership defaulted on its purchase money note related to Holiday
Village Apartments (Holiday Village) on July 27, 1994 when the note matured and
was not paid.  The default amount included principal and accrued interest of
$1,370,000 and $2,862,342, respectively.  As of August 12, 1999, principal and
accrued interest of $1,370,000 and $5,973,972, respectively, were due.  The
Managing General Partner and the noteholder continue to negotiate settlement
options, and as of August 12, 1999, negotiations between the Managing General
Partner and the noteholder are ongoing.  There is no assurance that any
settlement will be reached.  Should the noteholder begin foreclosure proceedings
on the Partnership's interest in the related Local Partnership, the Partnership
intends to vigorously defend against any action by the noteholder.  However,
there is no assurance that the Partnership will be able to retain its interest
in the Local Partnership.  The uncertainty about the continued ownership of the
Partnership's interest in the related Local Partnership does not adversely
impact the Partnership's financial condition, as discussed above.

                                Hometown Village
                                ----------------

     The Partnership defaulted on its purchase money note related to Hometown
Villages Limited Partnership (Hometown Village) on August 1, 1999 when the note
matured and was not paid.  The default amount included principal and accrued
interest of $1,495,000 and $5,025,603, respectively.  As of August 12, 1999,
principal and accrued interest of $1,495,000 and $5,044,697 respectively, were
due.  The Partnership, together with the Local Partnership and the noteholders,
are currently exploring settlement options in connection with a possible
extension of the maturity date of the purchase money note, while also pursuing a
possible sale of the property or a refinancing of the first mortgage loan

                                       -9-
<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             JUNE 30, 1999 and 1998

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

related Hometown Village.  There is no assurance that any such extension, sale
or refinancing will occur.

                                Jewish Federation
                                -----------------

     The purchase money note related to Jewish Federation Apartments Associates
(Jewish Federation), in the principal amount of $1,350,000, was due to mature on
October 31, 1999.  In 1997, the Managing General Partner entered into an
agreement with the noteholder to extend the maturity date for five years,
subject to the donation and transfer by the Local Partnership of an unimproved
portion of the property to an entity affiliated with the local managing general
partner and the noteholder.  The Local Partnership had entered into an agreement
to make such donation and transfer, but the transaction was denied by HUD in
January 1998.  In April 1998, the local managing general partner indicated that
it had received verbal approval from HUD and intended to reapply for financing
with HUD.  There is no assurance that such financing will be obtained.  On May
21, 1999, the noteholder extended the maturity date of the purchase money note
to April 30, 2000, to allow time for the donation and transfer to occur.

                               Lakes of Northdale
                               ------------------

     The purchase money note related to Lakes of Northdale Limited Partnership
(Lakes of Northdale), in the principal amount of $1,500,000, was due to mature
on September 27, 1999.  The Partnership and the noteholder agreed to extend the
maturity date of the purchase money note to September 27, 2002, if the Local
Partnership completed an extension of its first mortgage debt, which extension
occurred on June 28, 1999.  Accordingly, the purchase money note for Lakes of
Northdale presently matures on September 27, 2002.

                              Mary Allen West Tower
                              ---------------------

     On July 30, 1999, the Partnership paid, in full, the purchase money note
related to Galesburg Housing Partners (Mary Allen West Tower).  The purchase
money note was in the principal amount of $2,301,310.

                                   Matthew XXV
                                   -----------

     The Partnership defaulted on its purchase money note related to Diakonia
Associates (Matthew XXV) on July 1, 1999 when the note matured and was not paid.
The default amount included principal and accrued interest of $1,020,000 and
$2,695,752, respectively.  As of August 12, 1999, principal and accrued interest
of $1,020,000 and $2,724,748, respectively, were due.  The Partnership is
currently negotiating a discounted payoff of the note with the noteholders.
There is no assurance that a discounted payoff will occur.





                                      -10-
<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             JUNE 30, 1999 and 1998

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

                                 Redden Gardens
                                 --------------

     The Partnership defaulted on its purchase money notes related to Redden
Development Company (Redden Gardens) on August 31, 1997 when the notes matured
and were not paid.  The default amount included principal and accrued interest
of $1,330,000 and $2,783,593, respectively.  As of August 12, 1999, principal
and accrued interest of $1,330,000 and $3,482,500, respectively, were due.  The
noteholders have extended the maturity date of the purchase money notes to
January 2000.  In connection with the extension, the Partnership placed in
escrow documents transferring its interest in Redden Gardens to the noteholders,
to be released to the noteholders upon a future default by the Partnership on
the purchase money notes.  The uncertainty about the continued ownership of the
Partnership's interest in the related Local Partnership does not adversely
impact the Partnership's financial condition, as discussed above.

     Due to the possible transfer of the Partnership's interest in the Local
Partnership to the noteholders, the Partnership's basis in the Local
Partnership, which was $965,089 as of June 30, 1999, has been reclassified to
partnership interest held in escrow in the accompanying consolidated financial
statements.

     The purchase money notes related to Redden Gardens are nonrecourse and
secured solely by the Partnership's interest in the Local Partnership.  The
release of the Partnership's purchase money note obligation as a result of the
possible loss of ownership interest in the Local Partnership would result in a
net financial statement gain of approximately $3.8 million.

                                 Scoville Center
                                 ---------------

     The purchase money notes related to Beloit Housing Partners (Scoville
Center), in the aggregate principal amount of $1,400,000, are due to mature on
October 1, 1999.  The Managing General Partner is currently exploring settlement
options in connection with a sale of the property or a refinancing of the first
mortgage loan related to Scoville Center.  There is no assurance that any such
sale or refinancing will occur.

b.   Advances to Local Partnerships
     ------------------------------

                               Lakes of Northdale
                               ------------------

     To cover operating deficits incurred in prior years by Lakes of Northdale,
the Partnership advanced funds totaling $54,500 as of both June 30, 1999 and
December 31, 1998.  No advances have been made to Lakes of Northdale since
September 1989.  These non-interest bearing advances are payable from cash flow
of Lakes of Northdale after payment of first mortgage debt service and after




                                      -11-
<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             JUNE 30, 1999 and 1998

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

satisfaction by the Partnership of certain other interest obligations on the
purchase money notes relating to the Local Partnership.  For financial reporting
purposes, these advances have been reduced to zero by the Partnership as a
result of losses at the Local Partnership level during prior years.

c.   Property matters
     ----------------
                                  Garden Court
                                  ------------

     On December 31, 1998, the local managing general partner of Garden Court
Associates Limited Partnership (Garden Court) sold the property.  The net
proceeds to the Partnership of $50,000 were received on March 2, 1999.

d.   Summarized financial information
     --------------------------------

     Combined statements of operations for the 35 and 36 Local Partnerships in
which the Partnership is invested as of June 30, 1999 and 1998, respectively,
follow.  The combined statements have been compiled from information supplied by
the management agents of the projects and are unaudited.
































                                      -12-
<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             JUNE 30, 1999 and 1998

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

                        COMBINED STATEMENTS OF OPERATIONS
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                          For the three months ended         For the six months ended
                                                                   June 30,                           June 30,
                                                        -----------------------------      -----------------------------
                                                            1999             1998              1999             1998
                                                        ------------     ------------      ------------     ------------
<S>                                                     <C>              <C>               <C>              <C>
Revenue:
  Rental revenue                                        $  8,327,245     $  8,361,421      $ 16,801,927     $ 16,986,416
  Other, principally interest                                589,609          555,200         1,183,058        1,114,384
                                                        ------------     ------------      ------------     ------------
     Total revenue                                         8,916,854        8,916,621        17,984,985       18,100,800
                                                        ------------     ------------      ------------     ------------
Expenses:
  Operating and other                                      4,236,034        5,147,762         9,712,749       10,803,306
  Interest                                                 1,456,534        1,684,479         2,913,069        3,371,495
  Depreciation and amortization                            1,816,622        1,819,285         3,633,247        3,651,134
                                                        ------------     ------------      ------------     ------------
     Total expenses                                        7,509,190        8,651,526        16,259,065       17,825,935
                                                        ------------     ------------      ------------     ------------
Net income                                              $  1,407,664     $    265,095      $  1,725,920     $    274,865
                                                        ============     ============      ============     ============

</TABLE>

     As of both June 30, 1999 and December 31, 1998, the Partnership's share of
cumulative losses to date for nine of the 35 Local Partnerships exceeded the
amount of the Partnership's investments in and advances to those Local
Partnerships by $12,593,564 and $12,157,676, respectively.  As the Partnership
has no further obligation to advance funds or provide financing to these Local
Partnerships, the excess losses have not been reflected in the accompanying
consolidated financial statements.


3.   AFFORDABLE HOUSING LEGISLATION

     President Clinton signed the Fiscal Year 1998 HUD appropriations bill into
law, effective October 1, 1997.  The legislation allowed all Section 8 HAP
contracts with rents at less than 120% of fair market rents which expired
between October 1997 and September 1998 to be renewed for one year.  In the case
of Section 8 HAP contracts with rents that exceeded 120% of fair market rents,
these contracts could be renewed for one year, but these rents were reduced to
120% of fair market rents (Mark-to-Market).  As of the beginning of Fiscal Year
1999 (October 1, 1998), all expiring contracts with rents exceeding comparable
market rents applicable to properties with mortgage loans insured by the Federal
Housing Administration (FHA) were subject to the Mark-to-Market legislation.



                                     -13-
<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             JUNE 30, 1999 and 1998

                                   (Unaudited)


3.   AFFORDABLE HOUSING LEGISLATION - Continued

     Mark-to-Market implementation will reduce rental income at properties which
are currently subsidized at higher-than-market rental rates, and will therefore
lower cash flow available to meet mortgage payments and operating expenses.
Each affected property will undergo debt restructuring according to terms
determined by an individual property and operations evaluation.  This will
involve reducing the first mortgage loan balance to an amount supportable by the
property, taking into account the property's operating expenses and reduced
income.  The balance of the amount written down from the first mortgage loan
will be converted to a non-performing but accruing (soft) second mortgage loan.

     Five properties in which the Partnership is invested may be affected by the
Mark-to-Market program since they have Section 8 HAP contracts expiring in 1999
and 2000.  Of these five properties, rent studies for three properties indicate
that the current HAP rents are below fair market rents.  Rent studies are being
performed for the other two properties.  Properties with expiring HAP contract
rents greater than 120% of fair market rents in the area where each property is
located may be affected immediately by the new legislation.  These five
properties are as follows.



































                                      -14-
<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             JUNE 30, 1999 and 1998

                                   (Unaudited)


3.   AFFORDABLE HOUSING LEGISLATION - Continued

<TABLE>
<CAPTION>
                                                    Units            Original          Renewed
                                               Authorized for      Expiration of     Expiration of
                               Number of      Rental Assistance      Section 8         Section 8
 Property                     Rental Units     Under Section 8     HAP Contract      HAP Contract
 --------                     ------------    -----------------    -------------     -------------
 <S>                          <C>             <C>                  <C>               <C>
 Cottonwood Park                  126                 6               06/30/98       06/30/99 (1)
 Glenridge Gardens                120                24               05/31/99         (2)
 Pilgrim Tower North              258               205               10/31/98       02/29/00
 Redden Gardens                   150                29               09/30/98       09/30/99
 Tradewinds Terrace               122                44               09/30/98       09/30/99
                                 ----               ---
     Total                        776               308
                                 ====               ===

</TABLE>

(1)  The Section 8 HAP contract was not renewed at the election of the Managing
     General Partner.
(2)  The Managing General Partner expects that this Section 8 HAP Contract will
     be renewed for one year upon expiration.

     With the uncertainty of continued project-based Section 8 subsidies for
properties with expiring HAP contracts, there is no assurance that these rental
properties will be able to maintain the rental income and occupancy levels
necessary to pay operating costs and debt service.  As a result, it is not
possible to predict the impact on the Local Partnerships and the resulting
impact on the Partnership at this time.


4.   RELATED-PARTY TRANSACTIONS

     In accordance with the terms of the Partnership Agreement, the Partnership
is obligated to reimburse the Managing General Partner for its direct expenses
in managing the Partnership.  The Partnership paid $53,006 and $91,375 for the
three and six months ended June 30, 1999, respectively, and $30,188 and $62,326
for the three and six months ended June 30, 1998, respectively, as direct
reimbursement of expenses incurred on behalf of the Partnership.  Such expenses
are included in the accompanying consolidated statements of operations as
general and administrative expenses.  Additionally, in accordance with the terms
of the Partnership Agreement, the Partnership is obligated to pay the Managing
General Partner an annual incentive management fee (the Management Fee) after
all other expenses of the Partnership are paid.  The Partnership paid the
Managing General Partner a Management Fee, as discussed above, of $93,750 and
$187,500 for the three and six months ended June 30, 1999, respectively, and
like amounts for the three and six months ended June 30, 1998, respectively.

     The Managing General Partner and/or its affiliates may receive a fee of not
more than 2% of the sales price of an investment in a Local Partnership or the
property it owns, payable under certain conditions upon the sale of an

                                       -15-
<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             JUNE 30, 1999 and 1998

                                   (Unaudited)


4.   RELATED-PARTY TRANSACTIONS - Continued

investment in a Local Partnership or the property it owns.  The payment of the
fee is subject to certain restrictions, including the achievement of a certain
level of sales proceeds and making certain minimum distributions to limited
partners.  The Managing General Partner and/or its affiliates earned net fees
for services relating to the sale of River Run of $26,606 on August 27, 1996.
Of this amount, $17,737 was paid by the Partnership on December 20, 1996.  On
March 24, 1998, the remaining balance of $8,869 was paid by the Partnership.














































                                      -16-
<PAGE>
PART I.   FINANCIAL INFORMATION
          ---------------------
ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
          -------------------------------------------------
               CONDITION AND RESULTS OF OPERATIONS
               -----------------------------------

     Capital Realty Investors-IV Limited Partnership's (the Partnership)
Management's Discussion and Analysis of Financial Condition and Results of
Operations section contains information that may be considered forward looking,
including statements regarding the effect of governmental regulations.  Actual
results may differ materially from those described in the forward looking
statements and will be affected by a variety of factors including national and
local economic conditions, the general level of interest rates, terms of
governmental regulations that affect the Partnership and interpretations of
those regulations, the competitive environment in which the Partnership
operates, and the availability of working capital.

                                     General
                                     -------

     Some of the rental properties owned by the Local Partnerships are financed
by state housing agencies.  The Managing General Partner has been working to
develop strategies to sell or refinance certain properties pursuant to programs
developed by these agencies or other potential buyers.  These programs may
include opportunities to sell the property to a qualifying purchaser who would
agree to maintain the property as low to moderate income housing in perpetuity,
or to refinance the property, or to obtain supplemental financing.  The Managing
General Partner continues to monitor certain state housing agency programs
and/or programs provided by certain lenders, to ascertain whether the properties
would qualify within the parameters of a given program and whether these
programs would provide an appropriate economic benefit to the limited partners
of the Partnership.

     Some of the rental properties owned by the Local Partnerships are dependent
on the receipt of project-based Section 8 Rental Housing Assistance Payments
(HAP) provided by the U.S. Department of Housing and Urban Development (HUD)
pursuant to Section 8 HAP contracts.  President Clinton signed the Fiscal Year
1998 HUD appropriations bill into law, effective October 1, 1997.  The
legislation allowed all Section 8 contracts with rents at less than 120% of fair
market rents which expired between October 1997 and September 1998 to be renewed
for one year.  In the case of Section 8 HAP contracts with rents that exceeded
120% of fair market rents, these contracts could be renewed for one year, but
these rents were reduced to 120% of fair market rents (Mark-to-Market).  At the
beginning of Fiscal Year 1999 (October 1, 1998), all expiring contracts with
rents exceeding comparable market rents applicable to properties with mortgage
loans insured by the Federal Housing Administration (FHA) were subject to the
Mark-to-Market legislation.

     Mark-to-Market implementation will reduce rental income at properties which
are currently subsidized at higher-than-market rental rates, and will therefore
lower cash flow available to meet mortgage payments and operating expenses.
Each affected property will undergo debt restructuring according to terms
determined by an individual property and operations evaluation.  This will
involve reducing the first mortgage loan balance to an amount supportable by the
property, taking into account the property's operating expenses and reduced
income.  The balance of the amount written down from the first mortgage loan
will be converted to a non-performing but accruing (soft) second mortgage loan.

     Five properties in which the Partnership is invested may be affected by the
Mark-to-Market program since they have Section 8 HAP contracts expiring in 1999
and 2000.  Of these five properties, rent studies for three properties indicate
that the current HAP rents are below fair market rents.  Rent studies are being

                                      -17-
<PAGE>
PART I.   FINANCIAL INFORMATION
          ---------------------
ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
          -------------------------------------------------
              CONDITION AND RESULTS OF OPERATIONS - Continued
              -----------------------------------

performed for the other two properties.  Properties with expiring HAP contract
rents greater than 120% of fair market rents in the area where each property is
located may be affected immediately by the new legislation.

     Under current law, the write down of an FHA-insured mortgage under Mark-to-
Market would trigger cancellation of indebtedness income to the partners, a
taxable event, even though no actual cash is received.  Additionally, the newly
created second mortgage will accrue interest at a below-market rate; however,
the Internal Revenue Service issued a ruling in July 1998 that concluded that
the below-market rate of interest will not generate additional ordinary income.
Each property subject to Mark-to-Market will be affected in a different manner,
and it is very difficult to predict the exact form of restructuring, or
potential tax liabilities to the limited partners, at this time.

     The Managing General Partner is considering new strategies to deal with the
ever changing environment of affordable housing policy.  The mortgage loans on
Section 236 and Section 221(d)(3) properties that are in the 18th year of their
mortgage may be eligible for pre-payment.  Properties with expiring Section 8
HAP contracts may become convertible to market-rate apartment properties.
Currently there are few lenders that will provide financing either to prepay the
existing mortgage or provide additional funds to allow a property to convert to
market-rate units.  Where opportunities exist, the Managing General Partner will
continue to work with the Local Partnerships to develop strategies that make
economic sense for all parties involved.

                          Financial Condition/Liquidity
                          -----------------------------

     The Partnership's liquidity, with unrestricted cash resources of
$11,237,439 ($148.30 per Additional Limited Partner unit) and $10,765,753
($142.08 per Additional Limited Partner unit) as of June 30, 1999 and December
31, 1998, respectively, along with anticipated future cash distributions from
the Local Partnerships, are expected to be adequate to meet its current and
anticipated operating cash needs.  However, see the discussion below regarding
the upcoming maturity of many of the Partnership's purchase money notes.  As of
August 12, 1999, $50,400 of cash resources were restricted for future interest
payments on one of the purchase money notes.  As of August 12, 1999, there were
no material commitments for capital expenditures.

     The Partnership's obligations with respect to its investments in Local
Partnerships, in the form of purchase money notes having a principal balance of
$42,011,391 (exclusive of unamortized discount on purchase money notes of
$1,434,523) plus accrued interest of $102,243,320 as of June 30, 1999, are
payable in full upon the earliest of:  (1) sale or refinancing of the respective
Local Partnership's rental property; (2) payment in full of the respective Local
Partnership's permanent loan; or (3) maturity.  Purchase money notes in the
aggregate principal amounts of $1,370,000 matured on July 27, 1994 but have not
been paid or extended, as discussed below.  Purchase money notes in the
aggregate principal amount of $1,330,000 matured on August 31, 1997 and have
been extended to January 3, 2000.  Purchase money notes in the aggregate
principal amounts of $2,035,000 and $868,000 matured on July 1, 1999 and July
31, 1999, respectively, and have not been paid or extended.  A purchase money
note in the principal amount of $2,301,310 matured on July 31, 1999, and was
paid in full on July 30, 1999.  Purchase money notes in the aggregate principal
amount of $7,070,000 matured on August 1, 1999 and have not been paid or
extended.  Purchase money notes in the aggregate principal amounts of

                                      -18-
<PAGE>
PART I.   FINANCIAL INFORMATION
          ---------------------
ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
          -------------------------------------------------
              CONDITION AND RESULTS OF OPERATIONS - Continued
              -----------------------------------

$6,827,081, $2,500,000, $4,625,000 and $7,570,000 mature later in August, and in
September, October and December of 1999, respectively.  Purchase money notes in
the aggregate principal amounts of $1,500,000 and $1,350,000 were due to mature
on September 27, 1999 and October 31, 1999, respectively, and were extended to
September 27, 2002 and April 30, 2000, respectively.  The remaining two purchase
money notes mature in 2000 and 2025.  See the notes to the consolidated
financial statements for additional information pertaining to these purchase
money notes.

     The purchase money notes, which are nonrecourse to the Partnership, are
generally secured by the Partnership's interest in the respective Local
Partnerships.  There is no assurance that the underlying properties will have
sufficient appreciation and equity to enable the Partnership to pay the purchase
money notes' principal and accrued interest when due.  If a purchase money note
is not paid in accordance with its terms, the Partnership will either have to
renegotiate the terms of repayment or risk losing its partnership interest in
the respective Local Partnership.  The Partnership's inability to pay certain of
the purchase money note principal and accrued interest balances when due, and
the resulting uncertainty regarding the Partnership's continued ownership
interest in the related Local Partnerships, does not adversely impact the
Partnership's financial condition because the purchase money notes are
nonrecourse and secured solely by the Partnership's interest in the related
Local Partnerships.  Therefore, should the investment in any of the Local
Partnerships with maturing purchase money notes not produce sufficient value to
satisfy the related purchase money notes, the Partnership's exposure to loss is
limited because the amount of the nonrecourse indebtedness of each of the
maturing purchase money notes exceeds the carrying amount of the investment in
and advances to each of the related Local Partnerships.  Thus, even a complete
loss of one of these Local Partnerships would not have a material adverse impact
on the financial condition of the Partnership.  See further discussion of
certain purchase money notes in the notes to consolidated financial statements.

     The following chart presents information related to purchase money notes
which mature through June 30, 2000, or which have matured and remain unpaid or
unextended as of August 12, 1999.  Information for the third quarter of 1999
does not include a note which matured during that quarter and which was paid
off, in full, on July 30, 1999.




















                                      -19-
<PAGE>
PART I.   FINANCIAL INFORMATION
          ---------------------
ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
          -------------------------------------------------
              CONDITION AND RESULTS OF OPERATIONS - Continued
              -----------------------------------

<TABLE>
<CAPTION>

                                            Carrying Amount
                                            of Partnership's
                                             Investment in                Aggregate                   Aggregate
                                            and Advances to               Principal                    Accrued
                   Number of                Underlying Local               Balance                    Interest
    Purchase       Underlying               Partnerships as                 as of                    Balance as of
   Money Note        Local      Percentage      of June       Percentage    June        Percentage       June        Percentage
 (PMN) Maturity   Partnerships   of Total      30, 1999        of Total    30, 1999      of Total      30, 1999       of Total
----------------  ------------  ----------  ----------------  ----------  -----------   ----------   -------------   ----------
<S>               <C>           <C>         <C>               <C>         <C>           <C>          <C>             <C>
3rd Quarter 1994        1             3%       $ 1,235,106          4%    $ 1,370,000          3%     $  5,910,736         6%
3rd Quarter 1999       14            40%        15,802,563         49%     19,300,081         46%       45,105,791        44%
4th Quarter 1999        9            26%         6,845,356         21%     12,195,000         29%       28,266,582        28%
1st Quarter 2000        1             3%                --          -%      1,330,000          3%        3,421,037         3%
2nd Quarter 2000        2             5%         3,540,377         11%      3,515,000          9%       16,067,540        16%
                     ----         -----        -----------      -----     -----------      -----      ------------     -----
Total through
  6/30/2000            27            77%       $27,423,402         85%    $37,710,081         90%     $ 98,771,686        97%
                     ====         =====        ===========      =====     ===========      =====      ============     =====
Total, Local
 Partnerships          35           100%       $32,077,464        100%    $42,011,391        100%     $102,243,320       100%
                     ====         =====        ===========      =====     ===========      =====      ============     =====

</TABLE>

     The Managing General Partner is continuing to investigate possible
alternatives to reduce the Partnership's debt obligations.  These alternatives
include, among others, retaining the cash available for distribution to meet the
purchase money note requirements, paying off certain purchase money notes at a
discounted price, extending the due dates of certain purchase money notes,
refinancing the respective properties' underlying debt, or selling the
underlying real estate and using the Partnership's share of the proceeds to pay
or buy down certain purchase money note obligations.  Although the Managing
General Partner has had some success applying these strategies in the past, the
Managing General Partner cannot assure that these strategies will be acceptable
to all of the noteholders.  Based on preliminary discussions with the holders of
purchase money notes maturing through June 30, 2000, the Managing General
Partner anticipates that, at least in some instances, the noteholders may not be
willing to negotiate any extension or discounted payoff.  In such instances,
upon maturity of the purchase money notes, if the purchase money notes remain
unpaid, the noteholders may have the right to foreclose on the Partnership's
interest in the related Local Partnerships.  In the event of a foreclosure, the
excess of the nonrecourse indebtedness over the carrying amount of the
Partnership's investment in the related Local Partnership would be deemed
cancellation of indebtedness income which would be taxable to Limited Partners
at a federal tax rate of up to 39.6%.  Additionally, in the event of a
foreclosure, the Partnership would lose its investment in the Local Partnership
and, likewise, its share of future cash flow distributed by the Local
Partnership from rental operations, and sales or refinancings.  Of the 35 Local
Partnerships in which the Partnership is invested as of both June 30, 1999 and
December 31, 1998, the 27 Local Partnerships with associated purchase money
notes which mature through June 30, 2000 and which remain unpaid or unextended
as of August 12, 1999, represent the following percentages of the Partnership's

                                       -20-
<PAGE>
PART I.   FINANCIAL INFORMATION
          ---------------------
ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
          -------------------------------------------------
              CONDITION AND RESULTS OF OPERATIONS - Continued
              -----------------------------------

total distributions received from Local Partnerships and share of income from
Local Partnerships.

<TABLE>
<CAPTION>


                         Percentage of Total     Partnership's Share of
   For the Six Month    Distributions Received        Income from
    Periods Ending      from Local Partnerships    Local Partnerships
   -----------------    -----------------------  ----------------------
   <S>                  <C>                      <C>
   June 30, 1999                 58%                   $1,440,368
   June 30, 1998                 49%                      429,771

</TABLE>

     The Partnership closely monitors its cash flow and liquidity position in an
effort to ensure that sufficient cash is available for operating requirements.
For the six months ended June 30, 1999 and 1998, the receipt of distributions
from Local Partnerships was adequate to support operating cash requirements.
Cash and cash equivalents increased during the six months ended June 30, 1999,
as receipt of distributions from partnerships exceeded net cash used in
operating activities.

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

     The Partnership's net loss for the three and six months ended June 30, 1999
decreased from the corresponding periods in 1998 primarily due to an increase in
share of income from partnerships generally due to a decrease in operating
expenses at the properties.  Contributing to the decrease in the Partnership's
net loss was a decrease in professional fees due to a Local Partnership audit
and market study fee in 1998.  Partially offsetting the decrease in the
Partnership's net loss were a decrease in interest income due to generally lower
rates earned on cash and cash equivalents, and an increase in interest expense
due to higher amortization of discount on purchase money notes, and an increase
in general and administrative expenses due to higher reimbursed payroll costs.

     For financial reporting purposes, the Partnership, as a limited partner in
the Local Partnerships, does not record losses from the Local Partnerships in
excess of its investment to the extent that the Partnership has no further
obligation to advance funds or provide financing to the Local Partnerships.  As
a result, the Partnership's recognized losses for the three and six months ended
June 30, 1999 did not include losses of $217,945 and $435,888, respectively,
compared to excluded losses of $340,642 and $680,881, respectively, for the
three and six months ended June 30, 1998.

     No other significant changes in the Partnership's operations have taken
place during this period.

                            Year 2000 Computer Issue
                            ------------------------

     The Year 2000 ("Y2K") computer issue refers to the inability of many
computer systems in use today to recognize "00" in the date field as the year

                                      -21-
<PAGE>
PART I.   FINANCIAL INFORMATION
          ---------------------
ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
          -------------------------------------------------
              CONDITION AND RESULTS OF OPERATIONS - Continued
              -----------------------------------

2000 and to recognize the year 2000 as a leap year.  The Y2K problem arose
because, for many years, computer software programs, including programs embedded
in hardware, utilized only the last two digits to specify the year with the
assumption that the first two digits were "19."  As a result, such programs may
not be able to recognize and process dates beyond 1999; rather they may
recognize and process "00," "01," "02,", etc., incorrectly as 1900, 1901, 1902,
instead of as 2000, 2001, 2002.  In the opinion of computer experts, this could
cause such programs to create erroneous results, malfunction, or fail completely
unless corrective measures are taken.

     The Partnership utilizes software and related computer technologies
essential to its operations that will be affected by the Y2K issue.  To address
the issue, the Managing General Partner has developed and is currently
implementing a plan (the "Y2K Project") designed to ensure that the Y2K date
change will not have an adverse impact on the Partnership's operations.  The Y2K
Project is on schedule and the Managing General Partner expects completion by
the end of 1999.  The Y2K Project consists of four phases -- Planning,
Assessment, Implementation and Testing.  The Planning Phase began early in 1998
and is complete.  Under the Planning Phase, the Managing General Partner
conducted an inventory of all internal hardware and software systems, data
interfaces, business operations and non-information technology functions which
may be susceptible to the Y2K issue.  This phase was completed at the end of
November, 1998.  Under the next phase, the Assessment Phase, all applications
and functions identified in the Planning Phase were analyzed to determine Y2K
compliance and the materiality of each identified risk.  In the event of
noncompliance, for material risks, timetables for corrective action, as well as
estimated costs to achieve compliance, were determined.  This phase was
completed during the first quarter of 1999.  The Implementation Phase is now
underway.  Renovation and replacement of existing internal hardware and software
systems has begun and completion is expected by August 1999.  Additionally, the
Managing General Partner is currently working with third party vendors, service
providers, Local Partnership managing general partners, and Local Partnership
property managers to verify their Y2K compliance, with completion expected by
August 1999.  The Testing Phase, which will include testing of internal
applications as well as some third party systems, began during January 1999 and
will continue throughout 1999.  Contingency planning commenced during the fourth
quarter 1998 and will be completed by year-end 1999.  The Managing General
Partner does not expect the expense associated with the Y2K Project to be
material.


















                                      -22-
<PAGE>
PART II.  OTHER INFORMATION
          -----------------
ITEM 3.   DEFAULTS UPON SENIOR SECURITIES
          -------------------------------

                                 Chippewa County
                                 ---------------

     The Partnership defaulted on its purchase money note related to Chippewa
County Housing Partners (Chippewa County) on August 1, 1999 when the note
matured and was not paid.  The default amount included principal and accrued
interest of $860,000 and $2,297,423, respectively.  As of August 12, 1999,
principal and accrued interest of $860,000 and $2,299,306 respectively, were
due.  The Partnership, together with the Local Partnership and the noteholders,
are currently exploring settlement options in connection with a possible
extension of the maturity date of the purchase money note, while also pursuing a
possible sale of the property or a refinancing of the first mortgage loan
related to Chippewa County.  There is no assurance that any such extension, sale
or refinancing will occur.

                                 Cottonwood Park
                                 ---------------

     The Partnership defaulted on its purchase money note related to Shawnee
Heights Limited Partnership (Cottonwood Park) on August 1, 1999 when the note
matured and was not paid.  The default amount included principal and accrued
interest of $975,000 and $2,576,421, respectively.  As of August 12, 1999,
principal and accrued interest of $975,000 and 2,579,634, respectively, were
due.  The Partnership is currently negotiating to extend the maturity date of
the purchase money note for five years.  There is no assurance that an extension
will be obtained.

                                Crescent Gardens
                                ----------------

     The Partnership defaulted on its purchase money notes related to Crescent
Gardens Associates Limited Partnership (Crescent Gardens) on July 31, 1999 when
the notes matured and were not paid.  The default amount included aggregate
principal and accrued interest of $868,000 and $1,974,004, respectively.  As of
August 12, 1999, aggregate principal and accrued interest of $868,000 and
$1,975,915, respectively, were due.  The Partnership is currently negotiating to
extend the maturity date of the purchase money notes.  There is no assurance
that an extension will be obtained.

                                 Deangelis Manor
                                 ---------------

     The Partnership defaulted on its purchase money note related to Natick
Associates (Deangelis Manor) on July 1, 1999 when the note matured and was not
paid.  The default amount included principal and accrued interest of $1,015,000
and $2,677,971, respectively.  As of August 12, 1999, principal and accrued
interest of $1,015,000 and $2,708,034, respectively, were due.  The Partnership
is currently negotiating a discounted payoff of the note with the noteholders.
There is no assurance that a discounted payoff will occur.










                                      -23-
<PAGE>
PART II.  OTHER INFORMATION
          -----------------
ITEM 3.   DEFAULTS UPON SENIOR SECURITIES - Continued
          -------------------------------

                                Glenridge Gardens
                                -----------------

     The Partnership defaulted on its purchase money note related to Glenridge
Development Company (Glenridge Gardens) on August 1, 1999 when the note matured
and was not paid.  The default amount included principal and accrued interest of
$740,000 and $1,875,229, respectively.  As of August 12, 1999, principal and
accrued interest of $740,000 and $1,876,638, respectively, were due.  The
Partnership is currently negotiating to extend the maturity date of the purchase
money note for five years.  There is no assurance that an extension will be
obtained.

                              Harborview Apartments
                              ---------------------

     The Partnership defaulted on its purchase money notes related to Harborview
Apartments Associates Limited Partnership (Harborview Apartments) on August 1,
1999 when the notes matured and were not paid.  The default amount included
principal and accrued interest of $3,000,000 and $5,342,321, respectively.  As
of August 12, 1999, principal and accrued interest of $3,000,000 and $5,354,698
respectively, were due.  The Partnership is currently negotiating an extension
of the maturity date or a discounted payoff of the purchase money notes.  There
is no assurance that an extension or a discounted payoff will occur.

                                 Holiday Village
                                 ---------------

     The Partnership defaulted on its purchase money note related to Holiday
Village Apartments (Holiday Village) on July 27, 1994 when the note matured and
was not paid.  The default amount included principal and accrued interest of
$1,370,000 and $2,862,342, respectively.  As of August 12, 1999, principal and
accrued interest of $1,370,000 and $5,973,972, respectively, were due.  The
Managing General Partner and the noteholder continue to negotiate settlement
options, and as of August 12, 1999, negotiations between the Managing General
Partner and the noteholder are ongoing.  There is no assurance that any
settlement will be reached.  Should the noteholder begin foreclosure proceedings
on the Partnership's interest in the related Local Partnership, the Partnership
intends to vigorously defend against any action by the noteholder.  However,
there is no assurance that the Partnership will be able to retain its interest
in the Local Partnership.  The uncertainty about the continued ownership of the
Partnership's interest in the related Local Partnership does not adversely
impact the Partnership's financial condition, as discussed above.

                                Hometown Village
                                ----------------

     The Partnership defaulted on its purchase money note related to Hometown
Villages Limited Partnership (Hometown Village) on August 1, 1999 when the note
matured and was not paid.  The default amount included principal and accrued
interest of $1,495,000 and $5,025,603, respectively.  As of August 12, 1999,
principal and accrued interest of $1,495,000 and $5,044,697 respectively, were
due.  The Partnership, together with the Local Partnership and the noteholders,
are currently exploring settlement options in connection with a possible
extension of the maturity date of the purchase money note, while also pursuing a
possible sale of the property or a refinancing of the first mortgage loan
related Hometown Village.  There is no assurance that any such extension, sale
or refinancing will occur.


                                      -24-
<PAGE>
PART II.  OTHER INFORMATION
          -----------------
ITEM 3.   DEFAULTS UPON SENIOR SECURITIES - Continued
          -------------------------------

                                   Matthew XXV
                                   -----------

     The Partnership defaulted on its purchase money note related to Diakonia
Associates (Matthew XXV) on July 1, 1999 when the note matured and was not paid.
The default amount included principal and accrued interest of $1,020,000 and
$2,695,752, respectively.  As of August 12, 1999, principal and accrued interest
of $1,020,000 and $2,724,748, respectively, were due.  The Partnership is
currently negotiating a discounted payoff of the note with the noteholders.
There is no assurance that a discounted payoff will occur.

                                 Redden Gardens
                                 --------------

     The Partnership defaulted on its purchase money notes related to Redden
Development Company (Redden Gardens) on August 31, 1997 when the notes matured
and were not paid.  The default amount included principal and accrued interest
of $1,330,000 and $2,783,593, respectively.  As of August 12, 1999, principal
and accrued interest of $1,330,000 and $3,482,500, respectively, were due.  The
noteholders have extended the maturity date of the purchase money notes to
January 2000.  In connection with the extension, the Partnership placed in
escrow documents transferring its interest in Redden Gardens to the noteholders,
to be released to the noteholders upon a future default by the Partnership on
the purchase money notes.  The uncertainty about the continued ownership of the
Partnership's interest in the related Local Partnership does not adversely
impact the Partnership's financial condition, as discussed above.

     Due to the possible transfer of the Partnership's interest in the Local
Partnership to the noteholders, the Partnership's basis in the Local
Partnership, which was $965,089 as of June 30, 1999, has been reclassified to
partnership interest held in escrow in the accompanying consolidated financial
statements.

     The purchase money notes related to Redden Gardens are nonrecourse and
secured solely by the Partnership's interest in the Local Partnership.  The
release of the Partnership's purchase money note obligation as a result of the
possible loss of ownership interest in the Local Partnership would result in a
net financial statement gain of approximately $3.8 million.





















                                      -25-
<PAGE>
PART II.  OTHER INFORMATION
          -----------------
ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K
          --------------------------------

     a.   None

     b.   No Reports on Form 8-K were filed with the Commission during the
          quarter ended June 30, 1999.

     All other items are not applicable.





















































                                      -26-
<PAGE>
                                    SIGNATURE

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

                         CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP
                         -----------------------------------------------
                         (Registrant)

                         by: C.R.I., Inc.
                             -------------------------------------------
                             Managing General Partner



August 12, 1999              by: /s/ Michael J. Tuszka
-----------------                ---------------------------------------
DATE                             Michael J. Tuszka
                                   Vice President
                                   and Chief Accounting Officer
                                   (Principal Financial Officer
                                   and Principal Accounting Officer)









































                                      -27-
<PAGE>


                                  EXHIBIT INDEX
                                  -------------


Exhibit                                         Method of Filing
-------                                   -----------------------------

27        Financial Data Schedule         Filed herewith electronically






















































                                      -28-