| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
|---|--------------------------------------------------------------------|

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

| Maryland                                 | 52-1328767                           |
|------------------------------------------|--------------------------------------|
| (State of Incorporation)                 | (I.R.S. Employer Identification No.) |
|                                     |                                 |
| 11200 Rockville Pike                     |                                 |
| Rockville, MD                            | 20852                                |
| (Address of Principal Executive Offices) | (ZIP Code)                           |

----

|      |                                                              | Page   |
|-----------|-------------------------------------------------------------------|--------|
|      |                                                              |   |
| Part I    | FINANCIAL INFORMATION                                             |   |
|      |                                                              |   |
| Item 1.   | Financial Statements                                              |   |
|      | Consolidated Balance Sheets                                       |   |
|      | - September 30, 2010 and December 31, 2009                        | 2      |
|      | Consolidated Statements of Operations and Accumulated Losses      |   |
|      | - for the three and nine months ended September 30, 2010 and 2009 | 3      |
|      | Consolidated Statements of Cash Flows                             |   |
|      | - for the nine months ended September 30, 2010 and 2009           | 4      |
|      | Notes to Financial Statements                                     |   |
|      | - September 30, 2010 and 2009                                     | 5      |
|      |                                                              |   |
| Item 2.   | Management's Discussion and Analysis of Financial Condition       |   |
|      | and Results of Operations                                         | 12     |
|      |                                                              |   |
| Item 4.   | Controls and Procedures                                           | 14     |
|      |                                                              |   |
| Part II   | OTHER INFORMATION                                                 |   |
|      |                                                              |   |
| Item 1.   | Legal Proceedings                                                 | 14     |
|      |                                                              |   |
| Item 3.   | Defaults upon Senior Securities                                   | 15     |
|      |                                                              |   |
| Item 5.   | Other Information                                                 | 15     |
|      |                                                              |   |
| Item 6.   | Exhibits                                                          | 15     |
|      |                                                              |   |
| Signature |                                                              | 15     |

----

|                                                                 |   | September 30, |      |   | December 31, |   |
|----------------------------------------------------------------------|--------|---------------|-----------|--------|--------------|--------|
|                                                                 |   | 2010          |      |   | 2009         |   |
|                                                                 |   | (Unaudited)   |      |   |         |   |
|                                                                 |   |          |      |   |         |   |
| Investments in partnerships                                          |   | $             | 968,580   |   |         | $      | 940,105 |   |
| Investment in partnerships held for sale or transfer                 |   |          | 2,163,836 |   |         |   | 1,964,803 |   |
| Cash and cash equivalents                                            |   |          | 4,538,713 |   |         |   | 5,660,470 |   |
| Acquisition fees, principally paid to related parties,               |   |          |      |   |         |   |   |   |
| net of accumulated amortization of $20,326 and $48,381, respectively |   |          | 10,510    |   |         |   | 29,379 |   |
| Property purchase costs,                                             |   |          |      |   |         |   |   |   |
| net of accumulated amortization of $59,513 and $72,771, respectively |   |          | 10,913    |   |         |   | 20,321 |   |
|                                                                 |   |          |      |   |         |   |   |   |
| Total assets                                                         |   | $             | 7,692,552 |   |         | $      | 8,615,078 |   |
|                                                                 |   |          |      |   |         |   |   |   |

| Due on investments in partnerships                         |   | $      | 500,000     |   |   | $      | 500,000     |   |
|------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|
| Due on investments in partnerships of assets held for sale |   |   | 840,000     |   |   |   | 2,290,000   |   |
| Accrued interest payable                                   |   |   | 3,740,383   |   |   |   | 3,495,556   |   |
| Accrued interest payable of assets held for sale           |   |   | 2,904,645   |   |   |   | 7,729,774   |   |
| Accounts payable and accrued expenses                      |   |   | 52,862      |   |   |   | 30,153      |   |
|                                                       |   |   |        |   |   |   |        |   |
| Total liabilities                                          |   |   | 8,037,890   |   |   |   | 14,045,483  |   |
|                                                       |   |   |        |   |   |   |        |   |
| Commitments and contingencies                              |   |   |        |   |   |   |        |   |
|                                                       |   |   |        |   |   |   |        |   |
| Partners' 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                      |   |   | (23,219,810 | )      |   |   | (21,019,700 | )      |
| Offering costs                                             |   |   | (7,562,894  | )      |   |   | (7,562,894  | )      |
| Accumulated losses                                         |   |   | (43,066,134 | )      |   |   | (50,351,311 | )      |
|                                                       |   |   |        |   |   |   |        |   |
| Total partners' deficit                                    |   |   | (345,338    | )      |   |   | (5,430,405  | )      |
|                                                       |   |   |        |   |   |   |        |   |
| Total liabilities and partners' deficit                    |   | $      | 7,692,552   |   |   | $      | 8,615,078   |   |

----

|                                     |   | For the three months ended |        |   | For the nine months ended |   |
|------------------------------------------|--------|----------------------------|-------------|--------|---------------------------|--------|
|                                     |   | September 30,              |        |   | September 30,             |   |
|                                     |   | 2010                       |        |   | 2009                      |   |   | 2010 |   |   | 2009 |   |
|                                     |   |                       |        |   |                      |   |   |   |   |   |   |   |
| Share of income from partnerships        |   | $                          | 99,467      |   |                      | $      | 210,326 |   |   | $ | 236,637 |   |   | $ | 675,111 |   |
|                                     |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Other revenue and  expenses:   |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Revenue:                                 |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Interest                                 |   |                       | --          |   |                      |   | 1,302 |   |   |   | 13,653 |   |   |   | 22,427 |   |
|                                     |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative               |   |                       | 57,944      |   |                      |   | 80,652 |   |   |   | 258,667 |   |   |   | 558,781 |   |
| Interest                                 |   |                       | 81,609      |   |                      |   | 75,445 |   |   |   | 244,828 |   |   |   | 226,336 |   |
| Management fee                           |   |                       | 93,750      |   |                      |   | 93,750 |   |   |   | 281,250 |   |   |   | 281,250 |   |
| Professional fees                        |   |                       | 12,213      |   |                      |   | 30,863 |   |   |   | 151,213 |   |   |   | 100,416 |   |
| Amortization of deferred costs           |   |                       | 628         |   |                      |   | 6,374 |   |   |   | 2,656 |   |   |   | 21,516 |   |
|                                     |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |                       | 246,144     |   |                      |   | 287,084 |   |   |   | 938,614 |   |   |   | 1,188,299 |   |
|                                     |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Total other revenue and expenses         |   |                       | (246,144    | )      |                      |   | (285,782 | ) |   |   | (924,961 | ) |   |   | (1,165,872 | ) |
|                                     |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Loss from continuing operations          |   |                       | (146,677    | )      |                      |   | (75,456 | ) |   |   | (688,324 | ) |   |   | (490,761 | ) |
|                                     |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued operations                  |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from discontinued          |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| operations                               |   |                       | 23,236      |   |                      |   | (52,159 | ) |   |   | 1,298 |   |   |   | (188,734 | ) |
| Gain on disposition of investment in     |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| partnerships, net of disposition fee     |   |                       | --          |   |                      |   | -- |   |   |   | 1,603,594 |   |   |   | -- |   |
| Gain from extinguishment of debt         |   |                       | 6,368,609   |   |                      |   | -- |   |   |   | 6,368,609 |   |   |   | 8,957,777 |   |
|                                     |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from discontinued          |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| operations                               |   |                       | 6,391,845   |   |                      |   | (52,159 | ) |   |   | 7,973,501 |   |   |   | 8,769,043 |   |
|                                     |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                        |   |                       | 6,245,168   |   |                      |   | (127,615 | ) |   |   | 7,285,177 |   |   |   | 8,278,282 |   |
|                                     |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated losses, beginning of period  |   |                       | (49,311,302 | )      |                      |   | (49,973,693 | ) |   |   | (50,351,311 | ) |   |   | (58,379,590 | ) |
|                                     |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated losses, end of period        |   | $                          | (43,066,134 | )      |                      | $      | (50,101,308 | ) |   | $ | (43,066,134 | ) |   | $ | (50,101,308 | ) |
|                                     |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) allocated              |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| to General Partners (1.51%)              |   | $                          | 94,302      |   |                      | $      | (1,927 | ) |   | $ | 110,006 |   |   | $ | 125,002 |   |
|                                     |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) allocated              |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| to Initial and Special                   |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Limited Partners (1.49%)                 |   | $                          | 93,053      |   |                      | $      | (1,901 | ) |   | $ | 108,549 |   |   | $ | 123,346 |   |
|                                     |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) allocated              |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| to Additional Limited Partners (97%)     |   | $                          | 6,057,813   |   |                      | $      | (123,787 | ) |   | $ | 7,066,622 |   |   | $ | 8,029,934 |   |
|                                     |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Loss from continuing operations per unit |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| of Additional Limited Partner Interest,  |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| based on 73,337 units outstanding        |   | $                          | (1.94       | )      |                      | $      | (1.00 | ) |   | $ | (9.10 | ) |   | $ | (6.49 | ) |
|                                     |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from discontinued          |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| operations per unit                      |   |                       | 84.54       |   |                      |   | (0.69 | ) |   |   | 105.46 |   |   |   | 115.98 |   |
|                                     |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) per unit of            |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Additional Limited Partner Interest,     |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| based on 73,337 units outstanding        |   | $                          | 82.60       |   |                      | $      | (1.69 | ) |   | $ | 96.36 |   |   | $ | 109.49 |   |
|                                     |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                         |   | For the nine months ended |       |
|--------------------------------------------------------------|--------|---------------------------|------------|
|                                                         |   | September 30,             |       |
|                                                         |   | 2010                      |       |   | 2009 |   |
|                                                         |   |                      |       |   |   |   |
| Cash flows from operating activities:                        |   |                      |       |   |   |   |
| Net income                                                   |   | $                         | 7,285,177  |   |   | $ | 8,278,282 |   |
|                                                         |   |                      |       |   |   |   |   |   |
| Adjustments to reconcile net income to net cash              |   |                      |       |   |   |   |   |   |
| used in operating activities:                                |   |                      |       |   |   |   |   |   |
| Share of income from partnerships                            |   |                      | (442,937   | ) |   |   | (739,251 | ) |
| Gain from extinguishment of debt                             |   |                      | (6,368,609 | ) |   |   | (8,957,777 | ) |
| Gain on disposition of investment in partnerships,           |   |                      |       |   |   |   |   |   |
| net of disposition fees                                      |   |                      | (1,603,594 | ) |   |   | -- |   |
| Amortization of deferred costs                               |   |                      | 2,656      |   |   |   | 21,516 |   |
|                                                         |   |                      |       |   |   |   |   |   |
| Changes in assets and liabilities:                           |   |                      |       |   |   |   |   |   |
| Decrease in other assets                                     |   |                      | --         |   |   |   | 8,313 |   |
| Increase in accrued interest payable                         |   |                      | 364,120    |   |   |   | 479,210 |   |
| Increase (decrease) in accounts payable and accrued expenses |   |                      | 22,709     |   |   |   | (37,923 | ) |
|                                                         |   |                      |       |   |   |   |   |   |
| Net cash used in operating activities                        |   |                      | (740,478   | ) |   |   | (947,630 | ) |
|                                                         |   |                      |       |   |   |   |   |   |
| Cash flows from investing activities:                        |   |                      |       |   |   |   |   |   |
| Receipt of distributions from partnerships                   |   |                      | 208,163    |   |   |   | 669,834 |   |
| Proceeds from disposition of investment in partnerships      |   |                      | 1,688,168  |   |   |   | -- |   |
| Disposition fee paid to a related party                      |   |                      | (77,500    | ) |   |   | -- |   |
|                                                         |   |                      |       |   |   |   |   |   |
| Net cash provided by investing activities                    |   |                      | 1,818,831  |   |   |   | 669,834 |   |
|                                                         |   |                      |       |   |   |   |   |   |
| Cash flows from financing activities:                        |   |                      |       |   |   |   |   |   |
| Distribution paid to Limited Partners                        |   |                      | (2,200,110 | ) |   |   | (1,268,386 | ) |
| Tax distribution on behalf of Limited Partners               |   |                      | --         |   |   |   | (590,097 | ) |
|                                                         |   |                      |       |   |   |   |   |   |
| Net cash used in financing activities:                       |   |                      | (2,200,110 | ) |   |   | (1,858,483 | ) |
|                                                         |   |                      |       |   |   |   |   |   |
| Net decrease in cash and cash equivalents                    |   |                      | (1,121,757 | ) |   |   | (2,136,279 | ) |
|                                                         |   |                      |       |   |   |   |   |   |
| Cash and cash equivalents, beginning of period               |   |                      | 5,660,470  |   |   |   | 7,975,361 |   |
|                                                         |   |                      |       |   |   |   |   |   |
| Cash and cash equivalents, end of period                     |   | $                         | 4,538,713  |   |   | $ | 5,839,082 |   |
|                                                         |   |                      |       |   |   |   |   |   |

----

----

| PROPERTY              | CITY          | STATE | UNITS |
|-----------------------|---------------|-------|-------|
| Fairways              | Naperville    | IL    | 210   |
| Madison Square        | Grand Rapids  | MI    | 133   |
| Mary Allen Tower West | Galesburg     | IL    | 154   |
| Northridge Park       | Salinas       | CA    | 104   |
| Tradewinds            | Traverse City | MI    | 122   |
| Westport Village      | Freeport      | IL    | 121   |

----

|                                   |   | For the three months ended |
|----------------------------------------|--------|----------------------------|
|                                   |   | September 30,              |
|                                   |   | 2010                       |   |   | 2009 |
|                                   |   | Equity                     |   |   |   |   |   |          Equity |   |
|                                   |   | Method                     |   |   | Suspended |   |   |         Method                    Suspended |   |
|                                   |   |                       |   |   |   |   |   |   |   |
| Number of Local Partnerships           |   |                       | 2 | (a) |   |   | 4 | (b) |   |   | 2 | (a) |   |   | 6 | (c) |
|                                   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue:                               |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Rental                                 |   | $                          | 411,155 |   |   | $ | 1,309,694 |   |   | $ | 434,245 |   |   | $ | 1,799,944 |   |
| Other                                  |   |                       | 21,024 |   |   |   | 18,189 |   |   |   | (76,077 | ) |   |   | 82,808 |   |
|                                   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total revenue                          |   |                       | 432,179 |   |   |   | 1,327,883 |   |   |   | 358,168 |   |   |   | 1,882,752 |   |
|                                   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                              |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                              |   |                       | 270,154 |   |   |   | 949,740 |   |   |   | 260,750 |   |   |   | 1,143,425 |   |
| Interest                               |   |                       | 592 |   |   |   | 323,608 |   |   |   | 10,343 |   |   |   | 422,322 |   |
| Depreciation and amortization          |   |                       | 79,331 |   |   |   | 259,078 |   |   |   | 77,232 |   |   |   | 355,101 |   |
|                                   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total expenses                         |   |                       | 350,077 |   |   |   | 1,532,426 |   |   |   | 348,325 |   |   |   | 1,920,848 |   |
|                                   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                      |   | $                          | 82,102 |   |   | $ | (204,543 | ) |   | $ | 9,843 |   |   | $ | (38,096 | ) |
|                                   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash distribution                      |   | $                          | -- |   |   | $ | -- |   |   | $ | -- |   |   | $ | -- |   |
|                                   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash distribution recorded             |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| as income                              |   |                       | -- |   |   |   | 79,231 |   |   |   | -- |   |   |   | 232,330 |   |
|                                   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partnership's share of Local           |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Partnership net income    |   |                       | 80,663 |   |   |   | -- |   |   |   |  9,743 |   |   |   | -- |   |
|                                   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Share of income from partnerships      |   |                       | $99,467 |   |   |   | $210,326 |   |
|                                   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Share of income from partnerships      |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    classifed as discontinued |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    operations                |   |                       | $60,427 |   |   |   | $31,747 |   |

----

|                                 |   | For the nine months ended |      |
|--------------------------------------|--------|---------------------------|-----------|
|                                 |   | September 30,             |      |
|                                 |   | 2010                      |      |   | 2009 |   |
|                                 |   | Equity                    |      |   |   |   |   | Equity |   |   |   |   |
|                                 |   | Method                    |      |   | Suspended |   |   | Method |   |   | Suspended |   |
|                                 |   |                      |      |   |   |   |   |   |   |   |   |   |
| Number of Local Partnerships         |   |                      | 2         | (a) |   |   | 4 | (b) |   |   | 2 | (a) |   |   | 6 | (c) |
|                                 |   |                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue:                             |   |                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Rental                               |   | $                         | 1,244,912 |   |   | $ | 3,596,528 |   |   | $ | 1,129,282 |   |   | $ | 5,399,831 |   |
| Other                                |   |                      | 59,031    |   |   |   | 121,039 |   |   |   | 27,209 |   |   |   | 248,423 |   |
|                                 |   |                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total revenue                        |   |                      | 1,303,943 |   |   |   | 3,717,567 |   |   |   | 1,156,491 |   |   |   | 5,648,254 |   |
|                                 |   |                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                            |   |                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                            |   |                      | 822,015   |   |   |   | 2,422,670 |   |   |   | 823,640 |   |   |   | 3,430,274 |   |
| Interest                             |   |                      | 1,775     |   |   |   | 970,823 |   |   |   | 31,028 |   |   |   | 1,266,967 |   |
| Depreciation and amortization        |   |                      | 237,993   |   |   |   | 777,235 |   |   |   | 231,696 |   |   |   | 1,065,303 |   |
|                                 |   |                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total expenses                       |   |                      | 1,061,783 |   |   |   | 4,170,728 |   |   |   | 1,086,364 |   |   |   | 5,762,544 |   |
|                                 |   |                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                    |   | $                         | 242,160   |   |   | $ | (453,161 | ) |   | $ | 70,127 |   |   | $ | (114,290 | ) |
|                                 |   |                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash distribution                    |   | $                         |      |   |   | $ | 38,892 |   |   | $ | -- |   |   | $ | 669,833 |   |
|                                 |   |                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash distribution recorded as income |   |                      | --        |   |   |   | 203,833 |   |   |   | -- |   |   |   | 669,833 |   |
|                                 |   |                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partnership’s share of Local   |   |                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Partnership net income  |   |                      | 239,104   |   |   |   | -- |   |   |   | 69,418 |   |   |   | -- |   |
|                                 |   |                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Share of income from partnerships    |   |                      | $236,637  |   |   |   | $675,111 |   |
|                                 |   |                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Share of income from partnerships    |   |                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   classified as discontinued    |   |                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   operations                    |   |                      | $206,300  |   |   |   | $64,140 |   |

----

|   | Property           | Principal                                          | Date         | Disposition |
|--------|--------------------|----------------------------------------------------|--------------|-------------|
|   | Cedar Point        | $1,320,000                                         | January 2009 | Transfer    |
|   | Thornwood House    | $1,775,000                                         | January 2009 | Transfer    |
|   | Pilgrim Tower East |       $1,450,000 (1) | July 2010    | Transfer    |

|   |                 |      | Accrued Interest   |     |
|--------|----------------------|-----------|--------------------|----------|
|   |                 |      | as of              |     |
|   | Property             | Principal | September 30, 2010 | Maturity |
|   | Westport Village (1) | $840,000  | $2,904,645         | 09/01/99 |

----

----

----

----

----

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| Exhibit No. | Description |
|-------------|-------------|

| 31.1   | Certification of Principal Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                 |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                    |
| 31.2   | Certification of Principal Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                 |
|   |                                                                                                                                                                                    |
| 32     | Certification of Principal Executive Officer and Principal Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

|              |   | CAPITAL REALTY INVESTORS-IV LIMITED                                                                                                                                                                                                                                                                                                                                                                           |
|-------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|              |   |     PARTNERSHIP                                                                                                                      |
|              |   | (Registrant)                                                                                                                                                                                                                                                                                                                                                                                                                      |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                              |
|              |   | by:    C.R.I., Inc.                                                                |
|              |   | Managing General Partner                                                                                                                                                                                                                                                                                                                                                                                                          |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                              |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                              |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                              |
| December 13, 2010 |   | by:      /s/ H. William Willoughby                                                                                                                                                                                                                                          |
| DATE              |   | H. William Willoughby                                                                                                                                                                                                                                                                                                                                                                                                             |
|              |   | Director, President, Secretary,                                                                                                                                                                                                                                                                                                                                                                                                   |
|              |   | Principal Financial Officer and                                                                                                                                                                                                                                                                                                                                                                                                   |
|              |   | Principal Account Officer                                                                                                                                                                                                                                                                                                                                                                                                         |