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


                               ------------------



                                   FORM 10-QSB


                               ------------------



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

                  For the quarterly period ended March 31, 2003


                               ------------------



                         Commission file number 0-13523

                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP
             Organized pursuant to the Laws of the State of Maryland


                               ------------------



        Internal Revenue Service - Employer Identification No. 52-1328767

                 11200 Rockville Pike, Rockville, Maryland 20852

                                 (301) 468-9200


                               ------------------





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 (or for such shorter
period that the  registrant  was required to file such reports) and (2) has been
subject to such filing requirements for the past 90 days. Yes |X| No o






--------------------------------------------------------------------------------
<PAGE>

                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                              INDEX TO FORM 10-QSB

                      FOR THE QUARTER ENDED MARCH 31, 2003

                                                                           Page
                                                                           ----
Part I - FINANCIAL INFORMATION

Item 1.  Financial Statements

         Consolidated Balance Sheets
           - March 31, 2003 and December 31, 2002..........................  1

         Consolidated Statements of Operations and Accumulated Losses
           - for the three months ended March 31, 2003 and 2002............  2

         Consolidated Statements of Cash Flows
           - for the three months ended March 31, 2003 and 2002............  3

         Notes to Consolidated Financial Statements
           - March 31, 2003 and 2002.......................................  4

Item 2.  Management's Discussion and Analysis of Financial Condition
           and Results of Operations....................................... 17

Item 3.  Controls and Procedures........................................... 21


PART II - OTHER INFORMATION

Item 3.   Defaults Upon Senior Securities.................................. 22

Item 5.   Other Information................................................ 22

Item 6.   Exhibits and Reports on Form 8-K................................. 22

Signature.................................................................. 23

Certifications of Quarterly Report Pursuant to 18 U.S.C. Section 1350...... 24


<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
        --------------------

                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                           CONSOLIDATED BALANCE SHEETS



                                     ASSETS

<TABLE>
<CAPTION>
                                                                                        March 31,      December 31,
                                                                                          2003            2002
                                                                                      -------------    ------------
                                                                                       (Unaudited)
<S>                                                                                   <C>              <C>
Investments in and advances to partnerships .......................................   $   7,718,324    $  12,763,288
Investment in partnerships held for sale or transfer ..............................       7,744,316        3,037,231
Investment in partnerships held in escrow .........................................         120,550        3,006,602
Cash and cash equivalents .........................................................       4,490,196        4,862,869
Acquisition fees, principally paid to related parties,
  net of accumulated amortization of $206,251 and $217,097, respectively ..........         239,281          259,342
Property purchase costs,
  net of accumulated amortization of $160,231 and $164,138, respectively ..........         178,426          188,018
Other assets ......................................................................             104              113
                                                                                      -------------    -------------

      Total assets ................................................................   $  20,491,197    $  24,117,463
                                                                                      =============    =============



                        LIABILITIES AND PARTNERS' DEFICIT


Due on investments in partnerships ................................................   $  18,160,081    $  22,955,081
Accrued interest payable ..........................................................      75,556,024       94,373,145
Accounts payable and accrued expenses .............................................         119,731          161,982
                                                                                      -------------    -------------

      Total liabilities ...........................................................      93,835,836      117,490,208
                                                                                      -------------    -------------

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 .........................................      (9,746,963)      (9,746,963)
    Offering costs ................................................................      (7,562,894)      (7,562,894)
    Accumulated losses ............................................................    (129,538,282)    (149,566,388)
                                                                                      -------------    -------------

      Total partners' deficit .....................................................     (73,344,639)     (93,372,745)
                                                                                      -------------    -------------

      Total liabilities and partners' deficit .....................................   $  20,491,197    $  24,117,463
                                                                                      =============    =============
</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
                                                                                         March 31,
                                                                              ------------------------------
                                                                                   2003             2002
                                                                              -------------    -------------
<S>                                                                           <C>              <C>
Share of income from partnerships .........................................   $     243,521    $     365,798
                                                                              -------------    -------------

Other revenue and  expenses:

  Revenue:
    Gain from extinguishment of debt ......................................      21,844,501        1,820,916
    Interest ..............................................................           9,686           14,810
                                                                              -------------    -------------

                                                                                 21,854,187        1,835,726
                                                                              -------------    -------------

  Expenses:
    Interest ..............................................................       1,842,170        2,650,593
    Management fee ........................................................          93,750           93,750
    General and administrative ............................................          94,715           97,403
    Professional fees .....................................................          34,150           95,275
    Amortization of deferred costs ........................................           4,817            5,814
                                                                              -------------    -------------

                                                                                  2,069,602        2,942,835
                                                                              -------------    -------------

      Total other revenue and expenses ....................................      19,784,585       (1,107,109)
                                                                              -------------    -------------

Income (loss) before loss on disposition of investment in partnership .....      20,028,106         (741,311)

Loss on disposition of investment in partnership ..........................              --          (65,248)
                                                                              -------------    -------------

Net income (loss) .........................................................      20,028,106         (806,559)

Accumulated losses, beginning of period ...................................    (149,566,388)    (146,975,998)
                                                                              -------------    -------------

Accumulated losses, end of period .........................................   $(129,538,282)   $(147,782,557)
                                                                              =============    =============



Net income (loss) allocated to General Partners (1.51%) ...................   $     302,424    $     (12.179)
                                                                              =============    =============


Net income (loss) allocated to Initial and Special Limited Partners (1.49%)   $     298,419    $     (12.018)
                                                                              =============    =============


Net income (loss) allocated to Additional Limited Partners (97%) ..........   $  19,427,263    $    (782,362)
                                                                              =============    =============


Net income (loss) per unit of Additional Limited Partner Interest,
  based on 73,500 units outstanding .......................................   $      264.32    $      (10.64)
                                                                              =============    =============
</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 three months ended
                                                                                             March 31,
                                                                                   ----------------------------
                                                                                       2003            2002
                                                                                   ------------    ------------
<S>                                                                                <C>             <C>
Cash flows from operating activities:
  Net income (loss) ............................................................   $ 20,028,106    $   (806,559)

  Adjustments  to  reconcile  net  income  (loss) to net cash used in  operating
    activities:
    Share of income from partnerships ..........................................       (243,521)       (365,798)
    Gain from extinguishment of debt ...........................................    (21,844,501)     (1,820,916)
    Amortization of deferred costs .............................................          4,817           5,814
    Loss on disposition of investment in partnership ...........................             --          65,248

    Changes in assets and liabilities:
      Decrease (increase) in other assets ......................................              9            (461)
      Increase in accrued interest payable .....................................      1,842,170       2,650,593
      Payment of purchase money note interest ..................................        (17,502)        (26,849)
      Decrease in accounts payable and accrued expenses ........................        (42,251)        (34,220)
                                                                                   ------------    ------------

        Net cash used in operating activities ..................................       (272,673)       (333,148)
                                                                                   ------------    ------------

Cash flows from investing activities:
  Receipt of distributions from partnerships ...................................             --         201,302
  Proceeds from disposition of investments in partnerships, net ................             --       4,876,101
                                                                                   ------------    ------------

        Net cash provided by investing activities ..............................             --       5,077,403
                                                                                   ------------    ------------

Cash flows from financing activities:
  Payment of purchase money note principal .....................................       (100,000)       (200,000)
  Payoff of purchase money note principal and related interest .................             --      (3,668,220)
                                                                                   ------------    ------------

        Net cash used in financing activities ..................................       (100,000)     (3,868,220)
                                                                                   ------------    ------------

Net (decrease) increase in cash and cash equivalents ...........................       (372,673)        876,035

Cash and cash equivalents, beginning of period .................................      4,862,869       4,816,347
                                                                                   ------------    ------------

Cash and cash equivalents, end of period .......................................   $  4,490,196    $  5,692,382
                                                                                   ============    ============



Supplemental disclosure of cash flow information:
  Cash paid during the period for interest .....................................   $     17,502    $  1,743,131
                                                                                   ============    ============

</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

                             March 31, 2003 and 2002

                                   (Unaudited)


1.   BASIS OF PRESENTATION

     In the opinion of C.R.I.,  Inc. (CRI), the Managing  General  Partner,  the
accompanying   unaudited   consolidated   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 March 31,  2003,  and the  results of its
operations  and its cash flows for the three  months  ended  March 31,  2003 and
2002. The results of operations for the interim period ended March 31, 2003, are
not necessarily indicative of the results to be expected for the full year.

     The  accompanying  unaudited  consolidated  financial  statements have been
prepared in conformity  with  accounting  principles  generally  accepted in the
United  States of America  and with the  instructions  to Form  10-QSB.  Certain
information and accounting policies and footnote  disclosures  normally included
in  financial  statements  prepared in  conformity  with  accounting  principles
generally  accepted  in the United  States of  America  have been  condensed  or
omitted pursuant to such instructions.  These condensed  consolidated  financial
statements  should  be read  in  conjunction  with  the  consolidated  financial
statements and notes thereto included in the Partnership's annual report on Form
10-KSB at December 31, 2002.

     In April 2002, the Financial Accounting Standards Board issued Statement of
Financial  Accounting  Standards  No.  145 (SFAS  No.  145),  Recission  of FASB
Statements No. 4, 44, and 64, .... SFAS No. 145 rescinds  Statement of Financial
Accounting   Standards  No.  4,  which   required  all  gains  and  losses  from
extinguishment  of debt to be  aggregated  and, if  material,  classified  as an
extraordinary  item.  Accordingly,  gain from  extinguishment of debt previously
reported as  extraordinary  for the three months ended March 31, 2002,  has been
reclassified  in the  accompanying  statement of  operations  for that period to
conform to the current presentation required by SFAS No. 145.

     In January  2003,  the  Financial  Accounting  Standards  Board issued FASB
Interpretation No. 46 (FIN 46), Consolidation of Variable Interest Entities. FIN
46 clarifies the application of Accounting  Research  Bulletin 51,  Consolidated
Financial Statements, for certain entities that do not have sufficient equity at
risk for the entity to finance its activities  without  additional  subordinated
financial  support from other  parties or in which equity  investors do not have
the  characteristics  of a controlling  financial interest  ("variable  interest
entities").  Variable  interest  entities  within  the  scope  of FIN 46 will be
required  to  be  consolidated  by  their  primary   beneficiary.   The  primary
beneficiary  of a variable  interest  entity is  determined to be the party that
absorbs a majority of the entity's  expected losses,  receives a majority of its
expected  returns,  or both.  FIN 46 applies  immediately  to variable  interest
entities  created after January 31, 2003, and to variable  interest  entities in
which an enterprise obtains an interest after that date. It applies in the first
fiscal  year or interim  period  beginning  after  June 15,  2003,  to  variable
interest  entities  in which an  enterprise  holds a variable  interest  that it
acquired before February 1, 2003. The Managing General Partner is in the process
of  determining  what impact,  if any, the adoption of the  provisions of FIN 46
will have upon the Partnership's  financial  condition and results of operations
related to the Partnership's investments in Local Partnerships, and has complied
with the disclosure requirements of FIN 46 in these financial statements.  As of
March  31,  2003,  the  Partnership's  maximum  loss  exposure  related  to  its
investments in and advances to partnerships is limited to the remaining  balance
of $15,583,190.

                                       -4-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2003 and 2002

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS

a.   Due on investments in partnerships and accrued interest payable
     ---------------------------------------------------------------

                              Purchase money notes
                              --------------------

     The  Partnership's  obligations  with respect to its  investments  in Local
Partnerships,  in the  form  of  nonrecourse  purchase  money  notes  having  an
aggregate  principal  balance of $18,160,081 plus aggregate  accrued interest of
$75,556,024  as of March 31, 2003, are payable in full upon the earliest of: (i)
sale or refinancing of the respective Local Partnership's rental property;  (ii)
payment in full of the respective Local  Partnership's  permanent loan; or (iii)
maturity.  However, see the discussion relating to Highland Village,  below, for
information  concerning the outstanding accrued interest balance of the purchase
money notes  related to Highland  Village,  even though the property  related to
Highland Village has been sold.

     The maturity  dates of the purchase  money notes  related to the  following
properties were extended during 2002, and through May 15, 2003.

                                                   Original       Extended
     Property                   Principal          Maturity       Maturity
     --------                  -----------         --------       --------

     Pilgrim Tower East        $1,450,000 (1)      12/01/99       11/30/03
     Pilgrim Tower North        2,065,000          04/30/00       11/30/03

     (1) Remaining principal after a partial payoff.

     The purchase money notes related to the following  properties  have matured
and have not been paid or extended as of May 15, 2003.

     Property                   Principal          Maturity
     --------                  -----------         --------

     Crescent Gardens          $  434,000          07/31/99
     Valley View                  920,000          09/01/99 (1)
     Westport Village             840,000          09/01/99 (1)
     Glenridge Gardens            640,000          01/01/03 (1)

     (1) Extended in accordance with the forbearance agreement.

     The purchase money notes related to the following  properties were paid off
at  a  discount,  were  forgiven,  or  the  collateral  that  secured  them  was
transferred to the noteholders, during 2002, and through May 15, 2003.

         Property               Principal            Date           Disposition
         --------              -----------         ---------        -----------

         DeAngelis Manor       $  973,571 (1)      March 2002       Paid Off
         Matthew XXV              978,367 (1)      March 2002       Paid Off
         Lakes of Northdale     1,500,000          September 2002   (2)
         Canonsburg House       1,440,000          January 2003     Transferred
         Char House             1,430,000          January 2003     Transferred
         Liberty Tower          1,340,000          January 2003     Transferred
         Wellington Woods         485,000          January 2003     Transferred

     (1) Remaining principal after a partial payoff.
     (2)  Principal and interest were forgiven upon sale of the property related
          to Lakes of Northdale.

                                       -5-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2003 and 2002

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

     The remaining  purchase money notes mature in 2004  ($11,311,081  aggregate
principal balance) and 2025 ($500,000 principal balance).

     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.  In the event  that a  purchase  money note
remains unpaid upon maturity,  the noteholder may have the right to foreclose on
the Partnership's interest in the related 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 the Partnership's interest in one of
these  Local  Partnerships  would  not have a  material  adverse  impact  on the
financial condition of the Partnership.

     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 successful in the future. If
the Managing  General  Partner is unable to negotiate an extension or discounted
payoff,  in the event that the purchase money notes remain unpaid upon maturity,
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  38.6%.  Additionally,  in  the  event  of a  foreclosure,  the
Partnership  would lose its investment in the Local  Partnership and,  likewise,
its share of any future  cash flow  distributed  by the Local  Partnership  from
rental operations,  mortgage debt refinancings,  or the sale of the real estate.
Of the 21 Local  Partnerships  in which the  Partnership is invested as of March
31, 2003, the six Local Partnerships with associated  purchase money notes which
have matured, or which mature through March 31, 2004, and which remain unpaid or
unextended  as of May 15, 2003,  represented  the following  percentages  of the
Partnership's total distributions  received from Local Partnerships and share of
income from Local Partnerships for the immediately preceding two calendar years.

                                       -6-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2003 and 2002

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

                              Percentage of Total       Partnership's Share of
                             Distributions Received       Income (Loss) from
     For the Year Ending     from Local Partnerships      Local Partnerships
     -------------------     -----------------------    ----------------------

     December 31, 2002                0.0%                    $ (98,638)
     December 31, 2001                0.0%                    $(245,610)


     The  Managing  General  Partner  continues  to  address  the  maturity  and
impending  maturity  of its debt  obligations  and to seek  solutions  that will
provide the most favorable outcome to the Limited Partners.  However,  there can
be no assurance that these strategies will be successful.

     Interest  expense on the  Partnership's  purchase money notes for the three
month  periods ended March 31, 2003 and 2002,  was  $1,842,170  and  $2,650,593,
respectively.  The  accrued  interest  payable on the  purchase  money  notes of
$75,556,024  and  $94,373,145  as of March  31,  2003  and  December  31,  2002,
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.

                 Canonsburg House, Char House, and Liberty Tower
                 -----------------------------------------------

     The  Partnership  defaulted  on its six  purchase  money  notes  related to
Canonsburg Housing Associates Limited Partnership (Canonsburg House), Char House
Highrise  Association  Limited  Partnership  (Char  House),  and  Liberty  Tower
Associates  Limited  Partnership  (Liberty  Tower) on December 1, 1999, when the
notes matured and were not paid. The default amount included aggregate principal
and accrued interest of $4,510,000 and $12,951,810,  respectively. As of January
6, 2003, remaining principal and accrued interest of $4,210,000 and $17,395,304,
respectively,  were due.  The  Partnership  tried to  negotiate  to  extend  the
maturity  date of the  purchase  money notes for up to five years.  However,  on
September  8, 2000,  the  Partnership  received  service  of three  suits by the
noteholder  of one of the notes with  respect to each of the three  partnerships
for  foreclosure  on the  Partnership's  interests.  The  Partnership  filed its
answers on October  24,  2000,  although  it  continued  to  negotiate  with the
plaintiff.  The Partnership  entered into a settlement  agreement on October 22,
2001,  pursuant to which it obtained an extension  of the  maturity  date of the
three larger notes to January  2003.  Under the extension  agreement,  documents
transferring the  Partnership's  interests in Canonsburg  House,  Char House and
Liberty  Tower to the  noteholder  were  placed in escrow to be  released to the
noteholder upon the earlier of occurrence of a future default by the Partnership
on  the  purchase  money  notes  or  January  4,  2003.  In  January  2003,  the
Partnership's  interests  in these  three Local  Partnerships,  in the amount of
$1,176,151,  $534,201 and  $1,175,700,  respectively,  were  transferred  to the
noteholders.  The transfer of the  Partnership's  interests in these three Local
Partnerships  resulted  in  gain  from  extinguishment  of  debt  for  financial
statement  purposes of  $18,684,319  in 2003,  and in total gain for federal tax
purposes of $20,551,401 in 2003.

                                       -7-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2003 and 2002

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

     Due to the  subsequent  transfer of the  Partnership's  interests  in these
three Local  Partnerships to the noteholders,  the Partnership's  basis in these
three  Local  Partnerships,  along  with net  unamortized  acquisition  fees and
property  purchase  costs,  which totaled  $2,886,052 at December 31, 2002,  was
reclassified  to investment in partnerships  held in escrow in the  accompanying
consolidated balance sheet.

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

     The  Partnership  defaulted  on its two  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   $2,033,388,
respectively. The Partnership successfully negotiated an agreement to extend the
maturity date of one of the purchase  money notes (First  Crescent  Note) in the
original principal amount of $434,000,  effective October 15, 1999.  Pursuant to
the extension  agreement,  the Partnership made payments to the noteholder to be
applied against accrued but unpaid interest.  The agreement extends the maturity
date up to July 31, 2004, subject to semi-annual interest payments,  and reduces
the interest rate of the First Crescent Note. The Partnership has been contacted
by only one of the  holders of the other note  (Second  Crescent  Note) and thus
cannot predict the course of action with regard to the Second  Crescent Note. As
of May 15, 2003,  principal  and accrued  interest of $434,000  and  $1,322,833,
respectively,  were due on the Second Crescent Note.  Crescent  Gardens recently
completed  mortgage  restructuring  under the Mark-to- Market  program,  and the
associated  loan  restructuring  requirement  will likely limit the sale of this
property to a not-for-profit  organization.  It is anticipated that the property
will now operate at a break-even  level, and that future cash  distributions are
highly unlikely.

                                 DeAngelis Manor
                                 ---------------

     The  Partnership  defaulted on its purchase  money notes  related to Natick
Associates  (DeAngelis  Manor) on July 1, 1999,  when the notes matured and were
not paid. The default amount included  aggregate  principal and accrued interest
of $1,015,000 and $2,670,689,  respectively. As of March 19, 2002, principal and
accrued interest of $973,571 and $3,483,307, respectively, were due. On December
4,  2001,  the  Partnership  paid off,  at a  discount,  the  smaller of the two
purchase money notes. The discounted payoff resulted in gain from extinguishment
of  debt  of  $116,659  for  financial   statement  purposes  in  2001,  and  in
cancellation  of  indebtedness  income of $116,659  for federal tax  purposes in
2001.  On March 19, 2002,  DeAngelis  Manor was sold.  Proceeds  received by the
Partnership  from the sale of the property  were used to pay off, at a discount,
the second purchase money note related to DeAngelis Manor, although the note has
not been cancelled pending final receipt of accumulated cash from the property's
previous operations,  and payment thereof to the purchase money noteholder.  The
sale and  discounted  payoff  resulted  in gain from  extinguishment  of debt of
$711,397  for  financial  statement  purposes in 2002,  and in  cancellation  of
indebtedness  income for federal tax purposes of  $1,931,047  in 2002.  In March
2002,  the  Managing  General  Partner  was paid a  disposition  fee of  $73,272
relating to the sale, which was netted from the proceeds of the sale.

                                       -8-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2003 and 2002

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - 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 $1,928,809, respectively. As of May 15, 2003, principal and accrued
interest of $640,000 and $2,949,227,  respectively,  were due. On June 16, 2000,
the  Partnership  and  noteholder  agreed to  extend  the  maturity  date of the
purchase money note to January 2001, in exchange for a payment which was applied
to the purchase money note  principal  balance.  Under the extension  agreement,
documents  transferring the  Partnership's  interest in Glenridge Gardens to the
noteholder  were placed in escrow to be released to the noteholder upon a future
default  by the  Partnership.  The  Partnership  reached an  agreement  with the
noteholder in which the noteholder agreed to forbear from taking any action with
respect to the note through January 3, 2002, in exchange for a payment which was
applied  to  the  purchase  money  note  principal  balance.  During  2002,  the
Partnership  reached another agreement with the noteholder to extend forbearance
through  January 3, 2003. As of May 15, 2003, the purchase money  noteholder had
not taken action to transfer the Partnership's interest in Glenridge Gardens.

     Due to the  possible  transfer of the  Partnership's  interest in Glenridge
Gardens to the  noteholder,  the net unamortized  acquisition  fees and property
purchase  costs,  which totaled $36,247 at March 31, 2003 and December 31, 2002,
were   reclassified  to  investment  in  partnerships  held  in  escrow  in  the
accompanying consolidated balance sheets.

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

     The  Partnership  defaulted  on its four  purchase  money notes  related to
Highland  Village  Associates  (Highland  Village) on October 31, 1999, when the
notes  matured and were not paid.  The President of the local  managing  general
partner of Highland Village had taken assignment of the four payees' interest in
each of the notes and is the  holder of all of the  notes.  The  default  amount
included   principal  and  accrued   interest  of  $1,100,000  and   $4,123,565,
respectively. Subsequent to the sale of the property related to Highland Village
on April 26, 2002, accrued interest of $5,486,253 was due. In February 2001, the
Partnership  and the  noteholder  agreed  to  extend  the  maturity  date of the
purchase money notes to October 31, 2004, provided that the maturity date of the
notes may be accelerated to any earlier date  designated by the noteholder  upon
not less than six months' notice to the  Partnership  from the  noteholder  (the
"Restructuring Agreement").

     On April 26, 2002, the property  related to Highland  Village was sold to a
limited  partnership  whose general  partner is also the local managing  general
partner of Highland Village.  The sale proceeds to Highland  Village,  after the
purchaser's  assumption of existing mortgage debt,  included $600,000 in cash, a
short term promissory note for $300,000, and a long term purchase money mortgage
note for $400,000. In accordance with the terms of the Restructuring  Agreement,
the  Partnership's  share  of the  proceeds  were  distributed  directly  to the
noteholder, to be applied first to principal until all principal has been repaid
($1,100,000),  and thereafter to interest  ($186,870) until interest,  including
all accrued but previously unpaid interest, has been paid in full.


                                       -9-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2003 and 2002

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

     As of May 15,  2003,  the  noteholder  has not  provided  the  required six
months' notice to the  Partnership of  acceleration  of the maturity date of the
notes,  and the  Partnership has not removed the unpaid balance in the amount of
$5,486,253  from its books,  even though the  nonrecourse  notes are essentially
worthless because the collateral that secures them (the  Partnership's  interest
in Highland  Village) has no value since Highland  Village sold its only assets.
As a result,  the Partnership  stopped accruing  interest on the notes effective
the date of the sale of the property on April 26, 2002. The  Partnership and the
noteholder  are  discussing an  acceleration  of the maturity date of the notes.
Upon   acceleration  and  resulting   cancellation  of  the  notes,   gain  from
extinguishment  of debt of $5,486,253  will be  recognized  by the  Partnership.
There is no assurance  that the  acceleration  will occur.  The sale of Highland
Village resulted in a total gain of $7,380,542 for federal tax purposes in 2002.

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

     The  Partnership  defaulted on its purchase money notes related to Diakonia
Associates  (Matthew  XXV) on July 1, 1999,  when the notes matured and were not
paid. The default amount included  aggregate  principal and accrued  interest of
$1,020,000 and  $2,695,752,  respectively.  As of March 19, 2002,  principal and
accrued interest of $978,367 and $3,531,806, respectively, were due. On December
4,  2001,  the  Partnership  paid off,  at a  discount,  the  smaller of the two
purchase money notes. The discounted payoff resulted in gain from extinguishment
of  debt  of  $141,152  for  financial   statement  purposes  in  2001,  and  in
cancellation  of  indebtedness  income of $141,152  for federal tax  purposes in
2001.  On March  19,  2002,  Matthew  XXV was  sold.  Proceeds  received  by the
Partnership  from the sale of the property  were used to pay off, at a discount,
the second purchase money note related to Matthew XXV, although the note has not
been  cancelled  pending final receipt of  accumulated  cash from the property's
previous operations,  and payment thereof to the purchase money noteholder.  The
sale and  discounted  payoff  resulted  in gain from  extinguishment  of debt of
$1,232,671  for financial  statement  purposes in 2002, and in  cancellation  of
indebtedness  income for federal tax purposes of  $2,181,531  in 2002.  In March
2002,  the  Managing  General  Partner  was paid a  disposition  fee of  $49,743
relating to the sale, which was netted from the proceeds of the sale.

                               Pilgrim Tower East
                               ------------------

     The  Partnership  defaulted on its  purchase  money note related to Pilgrim
Tower East Associates  Limited  Partnership  (Pilgrim Tower East) on December 1,
1999,  when the note  matured  and was not paid.  The  default  amount  included
principal and accrued interest of $1,650,000 and $2,719,372,  respectively.  The
Partnership and the noteholder have signed a contract to sell the  Partnership's
interest in Pilgrim Tower East to the  noteholder,  during 2003, in exchange for
the principal and accrued  interest  outstanding  on the purchase money note and
two  $100,000  payments on the  purchase  money  note,  one of which was paid in
February 2002, and one of which was paid in January 2003.  There is no assurance
that a sale of the Partnership's interest in Pilgrim Tower East will occur.

                                      -10-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2003 and 2002

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

     Due to the impending  sale of the  Partnership's  interest in Pilgrim Tower
East,  the net  unamortized  amount of  acquisition  fees and property  purchase
costs,  which  totaled  $39,732 at March 31, 2003,  and  December 31, 2002,  was
reclassified  to  investment  in  partnerships  held for sale or transfer in the
accompanying consolidated balance sheets.

                               Pilgrim Tower North
                               -------------------

     The  Partnership  defaulted on its  purchase  money note related to Pilgrim
Tower North Associates  Limited  Partnership  (Pilgrim Tower North) on April 30,
2000,  when the note  matured  and was not paid.  The  default  amount  included
principal and accrued interest of $2,165,000 and $18,922,763,  respectively. The
Partnership signed a contract with the noteholder which allows the noteholder to
purchase the property by November 30, 2003,  in exchange for the  principal  and
accrued  interest  outstanding  on the  purchase  money note and  assumption  or
prepayment by the noteholder of the mortgage note, the flexible subsidy note and
all related debt associated with the property.  In addition, in exchange for the
noteholder's  forbearance,  the Partnership made a principal  payment applied to
the note in January 2002. There is no assurance that a sale of the property will
occur.

     Due to the  impending  sale of the  property  related to the  Partnership's
investment  in  Pilgrim  Tower  North,  the  Partnership's  basis  in the  Local
Partnership,  along with net unamortized  acquisition fees and property purchase
costs,  which totaled  $2,367,694 and $2,391,262 at March 31, 2003, and December
31, 2002, respectively,  was reclassified to investment in partnerships held for
sale or transfer in the accompanying consolidated balance sheets.

                                   Valley View
                                   -----------

     The  Partnership  defaulted on its purchase  money notes  related to Valley
View  Associates  (Valley View) on September 1, 1999, when the notes matured and
were not paid. The default  amount  included  principal and accrued  interest of
$920,000 and $1,788,829, respectively. As of May 15, 2003, principal and accrued
interest of $920,000 and $2,263,315, respectively, were due. The Partnership has
been sued by the noteholders for payment and for confirmation of the transfer of
the collateral to the noteholders.  On January 7, 2000, the Partnership  filed a
motion to  dismiss  the suit.  The  noteholders  subsequently  filed an  amended
complaint  seeking  confirmation  of  the  transfer  of  the  collateral  to the
noteholders but not seeking payment.  On February 9, 2000, the Partnership filed
a motion to dismiss the amended complaint,  which was granted. A further amended
complaint  and motion to dismiss  have been  filed,  but no ruling on the latest
motion has been made as of May 15, 2003.  The  Partnership  and the  noteholders
have agreed in principle that the  Partnership  will deposit  assignments of its
interests in Valley View in escrow,  together with an option agreement  pursuant
to which the noteholders may purchase the interests for the outstanding  debt if
the  property is not sold and/or the notes are not repaid by a future date to be
negotiated. There is no assurance that any settlement will be finalized.

     Due to the impending transfer of the Partnership's interest in Valley View,
the net  unamortized  amount of acquisition  fees and property  purchase  costs,
which totaled $37,315 at March 31, 2003, and December 31, 2002, was reclassified
to investment in partnerships  held in escrow in the  accompanying  consolidated
balance sheets.


                                      -11-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2003 and 2002

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

                                Wellington Woods
                                ----------------

     The  Partnership  defaulted on its purchase money notes related to Clarkson
Associates  of  Wellington  Woods  Limited  Partnership  (Wellington  Woods)  on
December 1, 1999,  when the notes matured and were not paid.  The default amount
included  aggregate  principal and accrued  interest of $485,000 and $2,169,679,
respectively. As of January 6, 2003, aggregate principal and accrued interest of
$485,000 and $3,288,849, respectively, were due.

     The  Partnership  attempted to negotiate with the noteholders to extend the
maturity  date of the  purchase  money note for five years,  in  exchange  for a
partial payment.  In August 2000, one of the purchase money noteholders sued the
Partnership  for  damages  and  foreclosure  of the  security  interests  in the
Wellington  Woods  Local  Partnership.  The  Partnership  offered  to tender its
interests in Wellington Woods, but,  subsequently,  the plaintiff and the second
purchase money noteholder filed an amended complaint. Both parties filed motions
for summary  judgment.  In September 2002, the court ruled in the  Partnership's
favor and dismissed the plaintiffs'  damages claims and related attorneys' fees.
However,  the  Partnership's  interest  in  Wellington  Woods,  in the amount of
$575,681 together with distributions received by the Partnership after the dates
of the  noteholders'  demands,  was assigned to the noteholders in January 2003.
The transfer of the Partnership's interest in this Local Partnership resulted in
gain from  extinguishment of debt for financial statement purposes of $3,160,182
in 2003, and in total gain for federal tax purposes of $3,156,107 in 2003.

     Due to the subsequent transfer of the Partnership's  interest in Wellington
Woods,  the  Partnership's  basis  in the  Local  Partnership,  along  with  net
unamortized acquisition fees and property purchase costs, which totaled $606,237
at December 31, 2002, was  reclassified to investment in  partnerships  held for
sale or transfer in the accompanying consolidated balance sheet.

                                Westport Village
                                ----------------

     The  Partnership  defaulted on its purchase money notes related to Westport
Associates  (Westport  Village) on September 1, 1999, when the notes matured and
were not paid. The default  amount  included  principal and accrued  interest of
$840,000 and $1,615,644, respectively. As of May 15, 2003, principal and accrued
interest of $840,000 and $2,046,187, respectively, were due. The Partnership has
been sued by the noteholders for payment and for confirmation of the transfer of
the collateral to the noteholders.  On January 7, 2000, the Partnership  filed a
motion to  dismiss  the suit.  The  noteholders  subsequently  filed an  amended
complaint  seeking  confirmation  of  the  transfer  of  the  collateral  to the
noteholders but not seeking payment.  On February 9, 2000, the Partnership filed
a motion to dismiss the amended complaint,  which was granted. A further amended
complaint  and motion to dismiss  have been  filed,  but no ruling on the latest
motion has been made as of May 15, 2003.  The  Partnership  and the  noteholders
have agreed in principle that the  Partnership  will deposit  assignments of its
interests  in  Westport  Village in escrow,  together  with an option  agreement
pursuant to which the noteholders may purchase the interests for the outstanding
debt if the  property  is not sold  and/or  the notes are not repaid by a future
date to be  negotiated.  There  is no  assurance  that  any  settlement  will be
finalized.

                                      -12-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2003 and 2002

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

     Due to the  impending  transfer of the  Partnership's  interest in Westport
Village,  the net unamortized  amount of acquisition fees and property  purchase
costs,  which  totaled  $46,989 at March 31, 2003,  and  December 31, 2002,  was
reclassified  to investment in partnerships  held in escrow in the  accompanying
consolidated balance sheets.

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

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

     In  connection  with the  refinancing  of the mortgage  loan secured by the
property  owned by Crescent  Gardens in August 2001,  the  Partnership  advanced
$9,257 for closing  costs.  Such amount will be reimbursed  to the  Partnership,
with interest,  over a seven year period. For financial reporting purposes, this
advance has been reduced to zero by the Partnership as a result of losses at the
Local Partnership level.

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

     To cover operating  deficits  incurred in prior years by Lakes of Northdale
Limited  Partnership  (Lakes  of  Northdale),  the  Partnership  advanced  funds
totaling  $54,500.  Upon the sale of Lakes of Northdale in September  2002,  the
advanced funds were paid in full.

c.   Property matters
     ----------------

                                Campbell Terrace
                                ----------------

     As of May 15, 2003,  the local  managing  general  partner is negotiating a
contract to sell the property  owned by Campbell  Terrace  Associates  (Campbell
Terrace). There is no assurance that a sale of the property will occur.

     Due to the  possible  sale of the  property  related  to the  Partnership's
investment  in  Campbell  Terrace,   the   Partnership's   basis  in  the  Local
Partnership,  along with net unamortized  acquisition fees and property purchase
costs,  which  totaled  $5,336,890  at  March  31,  2003,  was  reclassified  to
investment  in  partnerships  held  for  sale or  transfer  in the  accompanying
consolidated balance sheet.

                                 DeAngelis Manor
                                 ---------------

     On March 19, 2002,  the property  related to DeAngelis  Manor was sold. See
Note 2.a. hereof for additional information concerning the sale.

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

     On April 26, 2002, the property  related to Highland  Village was sold. See
Note  2.a.  hereof  for  additional  information  concerning  the  sale  and the
outstanding  accrued  interest  balance of the purchase  money notes  related to
Highland Village.

                                      -13-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2003 and 2002

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

                                 Madison Square
                                 --------------

     The Local Managing General Partner of Madison Square Ltd.  Dividend Housing
Association  (Madison Square)  requested debt relief effective  October 1, 2001.
The property has depleted its  operating  cash and  replacement  reserve  funds,
therefore, the Local Managing General Partner requested from the lender that the
debt  payments  be  reduced to  interest  only  payments  until such time as the
property  can be sold.  In December  2001,  the lender  approved  interest  only
payments and a reduction in the rate for a period of five years,  although  this
loan  modification  has not yet been closed.  The Local Managing General Partner
has been searching for a  not-for-profit  organization  to purchase the property
but  has no  firm  offers  as of  May  15,  2003.  As of  March  31,  2003,  the
Partnership's  remaining  investment in Madison  Square,  which consisted of net
unamortized  acquisition fees and property purchase costs, was $14,686. There is
no assurance that a sale of the property will occur.

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

     On March 19, 2002,  the property  related to Matthew XXV was sold. See Note
2.a. hereof for additional information concerning the sale.

                               Pilgrim Tower North
                               -------------------

     In January 2002, a contract for the sale of Pilgrim Tower North was signed.
See Note 2.a. hereof for additional information concerning the sale. As of March
31, 2003,  the  Partnership's  remaining  investment  in Pilgrim Tower North was
$2,367,694. There is no assurance that a sale of the property will occur.

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

     Combined  statements of operations for the 21 and 27 Local  Partnerships in
which the Partnership was invested as of March 31, 2003 and 2002,  respectively,
follow. The combined statements have been compiled from information  supplied by
the management  agents of the properties and are unaudited.  The information for
each of the periods is presented  separately for those Local  Partnerships which
have investment  basis (equity  method),  and for those Local  Partnerships  for
which  the  Partnership's  carrying  value is zero  (equity  method  suspended).
Appended   after  the  combined   statements  is   information   concerning  the
Partnership's  share of income from partnerships  related to cash  distributions
recorded as income, and related to the Partnership's  share of income from Local
Partnerships.

                                      -14-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2003 and 2002

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

<TABLE>
<CAPTION>

                                         COMBINED STATEMENTS OF OPERATIONS
                                                    (Unaudited)

                                                                  For the three months ended
                                                                           March 31,
                                                 --------------------------------------------------------------
                                                            2003                               2002
                                                 ---------------------------        ---------------------------
                                                   Equity                             Equity
                                                   Method         Suspended           Method         Suspended
                                                 ----------       ----------        ----------       ----------
         <S>                                     <C>              <C>               <C>              <C>
         Revenue:
           Rental                                $3,347,062       $2,820,824        $4,133,358       $3,199,022
           Other                                    224,642          127,599           271,123          203,951
                                                 ----------       ----------        ----------       ----------

             Total revenue                        3,571,704        2,948,423         4,404,481        3,402,973
                                                 ----------       ----------        ----------       ----------

         Expenses:
           Operating                              2,325,706        1,927,586         2,832,268        2,199,491
           Interest                                 367,438          546,904           552,616          634,650
           Depreciation and amortization            632,182          557,298           835,682          692,742
                                                 ----------       ----------        ----------       ----------

             Total expenses                       3,325,326        3,031,788         4,220,566        3,526,883
                                                 ----------       ----------        ----------       ----------


         Net income (loss)                       $  246,378       $  (83,365)       $  183,915       $ (123,910)
                                                 ==========       ==========        ==========       ==========

         Cash distributions                      $       --       $       --        $  201,302       $       --
                                                 ==========       ==========        ==========       ==========

         Cash distributions recorded
           as income                             $       --       $       --        $       --       $       --

         Partnership's share of Local
           Partnership net income                   243,521               --           177,398               --

         Partnership's estimated share of
           Local Partnership net income                  --               --           188,400 (1)           --
                                                 ---------------------------        ---------------------------


         Share of income from partnerships                 $243,521                            $365,798
                                                           ========                            ========
</TABLE>


         (1)   Represents  estimated  share of income from  DeAngelis  Manor and
               Matthew XXV through their sale on March 19, 2002, as reflected in
               the combined  statement of operations  at March 31, 2002.  During
               the fourth quarter of 2002, the share of income was  reclassified
               to gain from  extinguishment of debt, since the Local Partnership
               did not report audited operating results for 2002.

     Cash  distributions  received from Local Partnerships which have investment
basis are recorded as a decrease in investments in and advances to  partnerships
and as cash receipts on the respective  balance sheets.  Any cash  distributions
received from Local Partnerships for which the respective Partnership's carrying
value is zero are  recorded  as income,  and  included  in share of income  from
partnerships on the statements of operations for the respective periods,  and as
cash receipts on the respective  balance sheets.  As of March 31, 2003 and 2002,
the Partnership's share of cumulative losses to date for 11 and 12 of the 21 and
27 Local  Partnerships,  respectively,  exceeded the amount of the Partnership's
investments  in and  advances  to those Local  Partnerships  by  $9,753,729  and
$13,370,311,  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.

                                      -15-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2003 and 2002

                                   (Unaudited)


3.   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 connection with managing the  Partnership.  The Partnership  paid $58,028 and
$95,556 for the three month periods ended March 31, 2003 and 2002, respectively,
to the Managing General Partner 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.

     In accordance with the terms of the Partnership Agreement,  the Partnership
is obligated to pay the Managing General Partner an annual incentive  management
fee  (Management  Fee) after all other expenses of the Partnership are paid. The
Partnership  paid the Managing  General  Partner a Management Fee of $93,750 for
each of the three month periods ended March 31, 2003 and 2002.

     The Managing General Partner and/or its affiliates may receive a fee of not
more than two percent of the sale price of an investment in a Local  Partnership
or the property it owns,  payable under certain  conditions  upon the sale of an
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 sale  proceeds  and making  certain  minimum  distributions  to limited
partners.  In March 2002, the Managing General Partner was paid disposition fees
totaling $123,015  relating to the sales of the properties  related to DeAngelis
Manor and Matthew XXV on March 19, 2002,  which were netted from the proceeds of
the sales.

                                      # # #

                                      -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  is  based  on  the  financial   statements,   and  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,  governmental  regulations
affecting  the  Partnership  and  interpretations  of  those  regulations,   the
competitive  environment in which the Partnership operates, and the availability
of working capital.

                          Critical Accounting Policies
                          ----------------------------

     The  Partnership has disclosed its selection and application of significant
accounting policies in Note1. of the notes to consolidated  financial statements
included in the Partnership's annual report on Form 10-KSB at December 31, 2002.
The  Partnership  accounts for its  investments  in  partnerships  by the equity
method because the Partnership is a limited  partner in the Local  Partnerships.
As such the  Partnership  has no control over the selection and  application  of
accounting policies, or the use of estimates, by the Local Partnerships.

                                     General
                                     -------

     Some of the rental properties owned by the Local  Partnerships are financed
by state housing agencies.  The Managing General Partner has sold or refinanced,
and will continue to sell or refinance,  certain properties pursuant to programs
developed by these agencies.  These programs may include opportunities to sell a
property to a qualifying  purchaser  who would agree to maintain the property as
low to  moderate  income  housing,  or to  refinance  a  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.  Current  legislation  allows all expired
Section 8 HAP contracts  with rents at less than 100% of fair market rents to be
renewed for up to one year.  Expiring  Section 8 HAP  contracts  with rents that
exceed  100% of fair market  rents  could be renewed for up to one year,  but at
rents  reduced  to 100% of fair  market  rents  (Mark-to-Market).  All  expiring
Section 8 HAP  contracts  with rents  exceeding  comparable  market  rents,  and
properties  with mortgage  loans insured by the Federal  Housing  Administration
(FHA), became subject to the Mark-to-Market legislation.

     Mark-to-Market (M2M) implementation will reduce rental income at properties
that are currently  subsidized  at  higher-than-market  rental  rates,  and will
therefore  lower cash flow  available to meet  mortgage  payments and  operating
expenses.  In some instances,  a property will be able to meet its existing debt
service  payments  after the  reduction  in rental  income.  In this  case,  the
property  may enter  the M2M  "Lite"  program,  which  would not  require a debt
restructuring.  In the remaining  instances,  the affected  property may undergo
debt restructuring  according to terms determined by an individual  property and
operations  evaluation.  This would  involve  reducing the first  mortgage  loan
balance to an amount  supportable  by the  property's  operations,  taking  into
account the property's operating expenses and reduced income. The balance of the
amount  written down from the first  mortgage  loan would be converted to a non-
performing but accruing  (soft) second  mortgage  loan.  When the existing first
mortgage loan is bifurcated  into a first and second  mortgage  loan,  the newly
created  second  mortgage  loan will  accrue  interest at a  below-market  rate;
however, the Internal Revenue Service issued a ruling in

                                      -17-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis
        ------------------------------------
          of Financial Condition and Results of Operations - Continued
          ------------------------------------------------


July  1998 that  concluded  that the  below-market  rate of  interest  would not
generate  additional  ordinary  income.  Each  property  subject  to M2M 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. All properties,  upon entering the M2M program  (excluding M2M Lite),
are  required  to enter into an  agreement  restricting  the  property's  use to
affordable housing for 30 years.

     Finally, under HUD's "Mark-up-to-Market"  program, properties with expiring
Section 8 HAP  contracts  that are located in high-rent  areas as defined by HUD
are eligible  for rent  increases  which would be  necessary to bring  Section 8
contract  rents in line with market rate rents.  For  properties  that enter the
program and have interest rate  subsidized FHA loans,  the rents are adjusted to
take into  account  the  benefits  the  property is already  receiving  from the
below-market  interest rate by means of a HUD-determined  adjustment factor. The
purpose of this program is to provide  incentives to owners of  properties  with
expiring  Section 8 HAP contracts not to convert these properties to market rate
housing.

     In return for  receiving  market  rate rents under  Mark-up-to-Market,  the
property  owner must enter into a five year  conditional  Section 8 HAP contract
with HUD,  subject  to the  annual  availability  of  funding  by  Congress.  In
addition,  property  owners who enter into the  Mark-up-to-  Market program will
receive  increased  cash flow,  as the limited  dividend will be increased in an
amount equal to the increase in gross rental revenues.

     Glenridge  Development  Company  (Glenridge  Gardens),  has a Section 8 HAP
contract  which,  as extended,  expires in May 2003.  The Section 8 HAP contract
covers 20% of the  apartment  units in Glenridge  Gardens.  See Note 2.a. of the
notes to consolidated  financial statements contained in Part I, Item 1, hereof,
for information  concerning a possible transfer of the Partnership's interest in
Glenridge Gardens to the purchase money noteholder.

     Pilgrim Tower North Associates  Limited  Partnership  (Pilgrim Tower North)
has a Section 8 HAP contract which,  as extended,  expires in February 2004. The
Section 8 HAP contract covers 79% of the apartment units in Pilgrim Tower North.
See Note 2.a. of the notes to  consolidated  financial  statements  contained in
Part I, Item 1,  hereof,  for  information  concerning  a  possible  sale of the
property owned by Pilgrim Tower North.

     As of March 31, 2003, the carrying amount of the Partnership's  investments
in and advances to Local  Partnerships with Section 8 HAP contracts  expiring in
the next 12 months was $2,310,525.

     The Managing  General  Partner  continues to seek  strategies  to deal with
affordable housing policy. While the Managing General Partner cannot predict the
outcome for any particular  property at this time, the Managing  General Partner
will continue to work with the Local  Partnerships  to develop  strategies  that
maximize the benefits to investors.

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

     The Partnership's liquidity, with unrestricted cash resources of $4,490,196
as of March 31, 2003, along with anticipated  future cash distributions from the
Local  Partnerships,  is  expected  to be  adequate  to  meet  its  current  and
anticipated  operating  cash needs.  As of May 15, 2003,  there were no material
commitments for capital expenditures.

     The  Partnership's  obligations  with respect to its  investments  in Local
Partnerships,  in the  form  of  nonrecourse  purchase  money  notes  having  an
aggregate  principal  balance of $18,160,081 plus aggregate  accrued interest of
$75,556,024 as of March 31, 2003, are payable in full upon the

                                      -18-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis
        ------------------------------------
          of Financial Condition and Results of Operations - Continued
          ------------------------------------------------


earliest  of: (i) sale or  refinancing  of the  respective  Local  Partnership's
rental  property;  (ii) payment in full of the  respective  Local  Partnership's
permanent  loan;  or (iii)  maturity.  However,  see Note  2.a.  of the notes to
consolidated  financial  statements  contained  in Part I, Item 1,  hereof,  for
information  concerning the outstanding accrued interest balance of the purchase
money notes  related to Highland  Village,  even though the property  related to
Highland Village has been sold.

     The maturity  dates of the purchase  money notes  related to the  following
properties were extended during 2002, and through May 15, 2003.

                                              Original         Extended
         Property               Principal     Maturity         Maturity
         --------              -----------    --------         --------

         Pilgrim Tower East    $ 1,450,000    12/01/99         11/30/03
         Pilgrim Tower North     2,065,000    04/30/00         11/30/03

     The purchase money notes related to the following  properties  have matured
and have not been paid or extended as of May 15, 2003.

         Property               Principal     Maturity
         --------              -----------    --------

         Crescent Gardens      $  434,000     07/31/99
         Valley View              920,000     09/01/99 (1)
         Westport Village         840,000     09/01/99 (1)
         Glenridge Gardens        640,000     01/01/03 (1)

     (1)  Extended in accordance with the forbearance agreement.

     The purchase money notes related to the following  properties were paid off
at  a  discount,  were  forgiven,  or  the  collateral  that  secured  them  was
transferred to the noteholders, during 2002, and through May 15, 2003.

         Property               Principal          Date           Disposition
         --------              ----------       ----------        -----------

         DeAngelis Manor       $  973,571 (1)   March 2002        Paid Off
         Matthew XXV              978,367 (1)   March 2002        Paid Off
         Lakes of Northdale     1,500,000       September 2002    (2)
         Canonsburg House       1,440,000       January 2003      Transferred
         Char House             1,430,000       January 2003      Transferred
         Liberty Tower          1,340,000       January 2003      Transferred
         Wellington Woods         485,000       January 2003      Transferred

     (1)  Remaining principal after a partial payoff.
     (2)  Principal and interest were forgiven upon sale of the property related
          to Lakes of Northdale.

     The remaining  purchase money notes mature in 2004  ($11,311,081  aggregate
principal balance) and 2025 ($500,000 principal balance).

     See the notes to the consolidated financial statements contained in Part I,
Item 1, hereof,  for  additional  information  concerning  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

                                      -19-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis
        ------------------------------------
          of Financial Condition and Results of Operations - Continued
          ------------------------------------------------


terms of repayment  or risk losing its  partnership  interest in the  respective
Local  Partnership.  In the event that a purchase money note remains unpaid upon
maturity,  the noteholder  may have the right to foreclose on the  Partnership's
interest in the related 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 the Partnership's interest in one of
these  Local  Partnerships  would  not have a  material  adverse  impact  on the
financial condition of the Partnership.

     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 successful
in the  future.  If the  Managing  General  Partner  is unable to  negotiate  an
extension  or  discounted  payoff,  in the event that the  purchase  money notes
remain unpaid upon maturity,  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  38.6%.  Additionally,  in  the  event  of a
foreclosure,  the Partnership would lose its investment in the Local Partnership
and,  likewise,  its  share of any  future  cash flow  distributed  by the Local
Partnership from rental operations,  mortgage debt refinancings,  or the sale of
the real  estate.  Of the 21 Local  Partnerships  in which  the  Partnership  is
invested  as of March 31,  2003,  the six  Local  Partnerships  with  associated
purchase money notes which have matured, or which mature through March 31, 2004,
and which  remain  unpaid or  unextended  as of May 15,  2003,  represented  the
following  percentages of the Partnership's  total  distributions  received from
Local  Partnerships  and  share  of  income  from  Local  Partnerships  for  the
immediately preceding two calendar years.

                              Percentage of Total       Partnership's Share of
                             Distributions Received       Income (Loss) from
     For the Year Ended      from Local Partnerships      Local Partnerships
     ------------------      -----------------------    ----------------------

     December 31, 2002                0.0%                    $ (98,638)
     December 31, 2001                0.0%                    $(245,610)

     The  Managing  General  Partner  continues  to  address  the  maturity  and
impending  maturity  of its debt  obligations  and to seek  solutions  that will
provide the most favorable outcome to the Limited Partners.  However,  there can
be no assurance that these strategies will be successful.


                                      -20-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis
        ------------------------------------
          of Financial Condition and Results of Operations - Continued
          ------------------------------------------------


     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 three  month  periods  ended  March 31,  2003 and  2002,  existing  cash
resources were adequate to support  operating cash  requirements.  Cash and cash
equivalents decreased during the three month period ended March 31, 2003, as net
cash was used in operating  activities  and to make a payment of purchase  money
note  principal,   although  no  distributions  had  been  received  from  Local
Partnerships as of March 31, 2003. The  Partnership  does expect to receive cash
distributions during the remainder of 2003, and expects to receive lower amounts
of  distributions  in  future  years as more  Section 8 HAP  contracts  approach
expiration,  and the related properties enter the Mark-to-Market  program,  with
the resulting reduction in rental revenues.

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

     The  Partnership's  net income for the three month  period  ended March 31,
2003, increased $20,834,665 from the corresponding period in 2002, primarily due
to a  $20,023,585  increase in gain from  extinguishment  of debt related to the
transfer of interest in four  properties in January 2003, a decrease in interest
expense due to lower  purchase  money note  balances,  a loss on  disposition of
investment  in  partnership  during the 2002 period but not the 2003  period,  a
decrease in professional fees related to attorney fees for the Natick Associates
(DeAngelis  Manor) and Diakonia  Associates  (Matthew XXV)  purchase  money note
settlements  in 2002,  and  nominal  decreases  in  general  and  administrative
expenses and amortization of deferred costs.  Partially  offsetting the increase
in the  Partnership's  net  income  were a  decrease  in  share of  income  from
partnerships,  and a nominal decrease in interest revenue. The decrease in share
of income from partnerships was primarily a result of the inclusion of estimated
income in the amount of $188,400  for the  Partnership's  interest in  DeAngelis
Manor and Matthew XXV through  their dates of sale on March 19, 2002,  partially
offset by increased  rental and other  revenue at one  property  during the 2003
period  related to an increase in HUD contract  rents,  decreased  vacancies and
grant funds received.

     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  share of income from partnerships for the three month
periods  ended March 31, 2003 and 2002,  did not include  losses of $232,900 and
$224,657, respectively.

     No other  significant  changes in the  Partnership's  operations have taken
place during the three month period ended March 31, 2003.


Item 3. Controls and Procedures
        -----------------------

     In April  2003,  representatives  of the  Managing  General  Partner of the
Partnership  carried out an  evaluation of the  effectiveness  of the design and
operation of the Partnership's  disclosure controls and procedures,  pursuant to
Exchange Act Rules 13a-14 and 15d-14.  Based on that  evaluation,  the Principal
Executive   Officer  and  Principal   Financial   Officer   concluded  that  the
Partnership's  disclosure controls and procedures are effective to alert them in
a timely manner to any material  information  relating to the  Partnership  that
must be included in the Partnership's  periodic SEC filings. In addition,  there
have been no significant  changes in the  Partnership's  internal controls or in
other factors that could  significantly  affect internal controls  subsequent to
the date of the most recent evaluation.

                                      -21-

<PAGE>
Part II. OTHER INFORMATION
Item 3. Defaults upon Senior Securities
        -------------------------------

     See Note 2.a. of the notes to consolidated  financial  statements contained
in Part I, Item 1, hereof, for information concerning the Partnership's defaults
on certain purchase money notes.


Item 5. Other Information
        -----------------

     There  is no  established  market  for the  purchase  and  sale of units of
additional limited partner interest (Units) in the Partnership, although various
informal  secondary market services exist. Due to the limited markets,  however,
investors may be unable to sell or otherwise dispose of their Units.


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

     a.   Exhibits

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

              99            Certification of Periodic Financial Report
                            Pursuant to 18 U.S.C. Section 1350

     b.   No  Reports  on Form 8-K were  filed  with the  Commission  during the
          quarter ended March 31, 2003.

All other Items are not applicable.

                                      -22-

<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




May 15, 2003                           by:  /s/ Michael J. Tuszka
------------                                ------------------------------------
DATE                                        Michael J. Tuszka
                                              Vice President
                                              and Chief Accounting Officer
                                              (Principal Financial Officer
                                              and Principal Accounting Officer)

                                      -23-

<PAGE>
                        CERTIFICATION OF QUARTERLY REPORT
                       Pursuant to 18 U.S.C. Section 1350,
      as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002


         I, Michael J. Tuszka, certify that:

         1.       I have  reviewed  this  quarterly  report  on Form  10-QSB  of
                  CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP;

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

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

         4.       The   registrant's   other   certifying   officer  and  I  are
                  responsible  for  establishing   and  maintaining   disclosure
                  controls  and  procedures  (as defined in  Exchange  Act Rules
                  13a-14 and 15d-14) for the registrant and have:

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

         b)       evaluated the  effectiveness  of the  registrant's  disclosure
                  controls and  procedures  as of a date within 90 days prior to
                  the filing  date of this  quarterly  report  (the  "Evaluation
                  Date"); and

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

         5.       The  registrant's   other   certifying   officer  and  I  have
                  disclosed,  based  on  our  most  recent  evaluation,  to  the
                  registrant's   auditors   and  the  audit   committee  of  the
                  registrant's  board of directors  (or persons  performing  the
                  equivalent functions):

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

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


                                      -24-

<PAGE>



         6.       The registrant's other certifying officer and I have indicated
                  in  this  quarterly  report  whether  there  were  significant
                  changes in internal  controls or in other  factors  that could
                  significantly  affect internal controls subsequent to the date
                  of  our  most  recent  evaluation,  including  any  corrective
                  actions with regard to significant  deficiencies  and material
                  weaknesses.


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

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



May 15, 2003                             by:  /s/ Michael J. Tuszka
------------                                  ----------------------------------
DATE                                          Michael J. Tuszka,
                                                Vice President
                                                and Chief Accounting Officer
                                                (Principal Financial Officer)


     This  certification  is made solely for purpose of 18 U.S.C.  Section 1350,
subject  to the  knowledge  standard  contained  therein,  and not for any other
purpose.

                                      -25-

<PAGE>
                        CERTIFICATION OF QUARTERLY REPORT
                       Pursuant to 18 U.S.C. Section 1350,
      as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002


         I, William B. Dockser, certify that:

         1.       I have  reviewed  this  quarterly  report  on Form  10-QSB  of
                  CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP;

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

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

         4.       The   registrant's   other   certifying   officer  and  I  are
                  responsible  for  establishing   and  maintaining   disclosure
                  controls  and  procedures  (as defined in  Exchange  Act Rules
                  13a-14 and 15d-14) for the registrant and have:

         a)       designed  such  disclosure  controls and  procedures to ensure
                  that  material   information   relating  to  the   registrant,
                  including its consolidated  subsidiaries,  is made known to us
                  by others  within  those  entities,  particularly  during  the
                  period in which the periodic reports are being prepared;

         b)       evaluated the  effectiveness  of the  registrant's  disclosure
                  controls and  procedures  as of a date within 90 days prior to
                  the filing  date of this  quarterly  report  (the  "Evaluation
                  Date"); and

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

         5.       The  registrant's   other   certifying   officer  and  I  have
                  disclosed,  based  on  our  most  recent  evaluation,  to  the
                  registrant's   auditors   and  the  audit   committee  of  the
                  registrant's  board of directors  (or persons  performing  the
                  equivalent functions):


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

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


                                      -26-

<PAGE>


         6.       The registrant's other certifying officer and I have indicated
                  in  this  quarterly  report  whether  there  were  significant
                  changes in internal  controls or in other  factors  that could
                  significantly  affect internal controls subsequent to the date
                  of  our  most  recent  evaluation,  including  any  corrective
                  actions with regard to significant  deficiencies  and material
                  weaknesses.


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

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



May 15, 2003                             by:  /s/ William B. Dockser
------------                                  ----------------------------------
DATE                                          William B. Dockser,
                                                Director, Chairman of the Board,
                                                and Treasurer
                                                (Principal Executive Officer)


     This  certification  is made solely for purpose of 18 U.S.C.  Section 1350,
subject  to the  knowledge  standard  contained  therein,  and not for any other
purpose.



                                      -27-