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


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

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


                                    FORM 10-Q

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



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

     For the Quarterly Period Ended June 30, 2009

                                       OR

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

     For the Transition Period From                         to

                         COMMISSION FILE NUMBER 0-13523

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

                           CAPITAL REALTY INVESTORS-IV
                               LIMITED PARTNERSHIP


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

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

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


                                      None
              (Former name, former address and former fiscal year,
                          if changed since last report)



     Indicate  by check mark  whether the  Registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.
Yes    |X|        No       |_|

     Indicate by check mark whether the Registrant is a large accelerated filer,
an accelerated  filer, a non-accelerated  filer, or a smaller reporting company.
See definition of "large accelerated  filer,"  "accelerated  filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer    |_|     Accelerated filer             |_|
Non-accelerated filer      |_|     Smaller reporting company     |X|

     Indicate  by check mark  whether  the  Registrant  is a shell  company  (as
defined in Rule 12b-2 of the Exchange Act).
Yes    |_|        No       |X|



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

                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                               INDEX TO FORM 10-Q

                       FOR THE QUARTER ENDED JUNE 30, 2009


                                                                           Page
                                                                           ----
Part I - FINANCIAL INFORMATION

Item 1.  Financial Statements

         Consolidated Balance Sheets
           - June 30, 2009 and December 31, 2008............................ 1

         Consolidated Statements of Operations and Accumulated Losses
           - for the three and six months ended June 30, 2009 and 2008...... 2

         Consolidated Statements of Cash Flows
           - for the six months ended June 30, 2009 and 2008................ 3

         Notes to Consolidated Financial Statements
           - June 30, 2009 and 2008......................................... 4

Item 2.  Management's Discussion and Analysis of Financial Condition
           and Results of Operations........................................ 14

Item 4.  Controls and Procedures............................................ 18


PART II - OTHER INFORMATION

Item 3.  Defaults Upon Senior Securities.................................... 19

Item 5.  Other Information.................................................. 19

Item 6.    Exhibits......................................................... 19

Signature................................................................... 20


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


                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                           CONSOLIDATED BALANCE SHEETS


                                     ASSETS

<TABLE>
<CAPTION>
                                                                                        June 30,      December 31,
                                                                                          2009            2008
                                                                                      ------------    ------------
                                                                                       (Unaudited)
<S>                                                                                   <C>             <C>
Investments in partnerships .......................................................   $  2,802,790    $  2,743,115
Investment in partnerships held for sale or transfer ..............................         27,554       3,163,336
Cash and cash equivalents .........................................................      5,807,024       7,975,361
Acquisition fees, principally paid to related parties,
  net of accumulated amortization of $61,954 and $58,242, respectively ............         39,091          38,570
Property purchase costs,
  net of accumulated amortization of $76,843 and $67,597, respectively ............         41,520          37,267
Other assets ......................................................................          1,798           8,313
                                                                                      ------------    ------------

      Total assets ................................................................   $  8,719,777    $ 13,965,962
                                                                                      ============    ============



                        LIABILITIES AND PARTNERS' DEFICIT


Due on investments in partnerships ................................................   $  2,790,000    $  5,885,000
Accrued interest payable ..........................................................     10,906,628      19,565,411
Accounts payable and accrued expenses .............................................         75,936         115,752
                                                                                      ------------    ------------

      Total liabilities ...........................................................     13,772,564      25,566,163
                                                                                      ------------    ------------

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 .........................................    (21,019,700)    (19,161,217)
    Offering costs ................................................................     (7,562,894)     (7,562,894)
    Accumulated losses ............................................................    (49,973,693)    (58,379,590)
                                                                                      ------------    ------------

      Total partners' deficit .....................................................     (5,052,787)    (11,600,201)
                                                                                      ------------    ------------

      Total liabilities and partners' deficit .....................................   $  8,719,777    $ 13,965,962
                                                                                      ============    ============
</TABLE>

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

                                       -1-

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


                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                      CONSOLIDATED STATEMENTS OF OPERATIONS

                             AND ACCUMULATED LOSSES

                                   (Unaudited)

<TABLE>
<CAPTION>
                                            For the three months ended        For the six months ended
                                                      June 30,                        June 30,
                                          ------------------------------    ------------------------------
                                               2009             2008            2009             2008
                                          -------------    -------------    -------------    -------------
<S>                                       <C>              <C>              <C>              <C>
Share of income from partnerships .....   $     471,706    $     544,148    $     497,178    $     613,119
                                          -------------    -------------    -------------    -------------

Other revenue and  expenses:

  Revenue:
    Interest ..........................           6,667           54,821           21,125          132,659
    Gain from extinguishment of debt ..            --               --          8,957,777             --
                                          -------------    -------------    -------------    -------------

                                                  6,667           54,821        8,978,902          132,659
                                          -------------    -------------    -------------    -------------

  Expenses:
    General and administrative ........          99,870           82,045          478,128          176,423
    Interest ..........................         159,351          190,424          319,859        1,068,292
    Management fee ....................          93,750           93,750          187,500          187,500
    Professional fees .................          31,139           53,668           69,554          104,835
    Amortization of deferred costs ....           1,704            2,101           15,142            4,203
                                          -------------    -------------    -------------    -------------

                                                385,814          421,988        1,070,183        1,541,253
                                          -------------    -------------    -------------    -------------

      Total other revenue and expenses         (379,147)        (367,167)       7,908,719       (1,408,594)
                                          -------------    -------------    -------------    -------------

Net income (loss) .....................          92,559          176,981        8,405,897         (795,475)

Accumulated losses, beginning of period     (50,066,252)     (85,836,755)     (58,379,590)     (84,864,299)
                                          -------------    -------------    -------------    -------------

Accumulated losses, end of period .....   $ (49,973,693)   $ (85,659,774)   $ (49,973,693)   $ (85,659,774)
                                          =============    =============    =============    =============


Net income (loss) allocated
  to General Partners (1.51%) .........   $       1,398    $       2,672    $     126,929    $     (12,012)
                                          =============    =============    =============    =============

Net income (loss) allocated
  to Initial and Special
  Limited Partners (1.49%) ............   $       1,379    $       2,637    $     125,248    $     (11,852)
                                          =============    =============    =============    =============

Net income (loss) allocated
  to Additional Limited Partners (97%)    $      89,782    $     171,672    $   8,153,720    $    (771,611)
                                          =============    =============    =============    =============

Net income (loss) per unit of
  Additional Limited Partner Interest,
    based on 73,337 units outstanding .   $        1.22    $        2.34    $      111.18    $      (10.52)
                                          =============    =============    =============    =============
</TABLE>

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

                                       -2-

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


                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                              For the six months ended
                                                                                       June 30,
                                                                             ---------------------------
                                                                                 2009           2008
                                                                             ------------   ------------
<S>                                                                          <C>            <C>
Cash flows from operating activities:
  Net income (loss) ......................................................   $ 8,405,897    $  (795,475)

  Adjustments to reconcile net income (loss) to net cash used in operating
    activities:
    Share of income from partnerships ....................................      (497,178)      (613,119)
    Gain from extinguishment of debt .....................................    (8,957,777)          --
    Amortization of deferred costs .......................................        15,142          4,203

    Changes in assets and liabilities:
      Decrease in other assets ...........................................         6,515         15,805
      Increase in accrued interest payable ...............................       319,859      1,068,292
      Decrease in accounts payable and accrued expenses ..................       (39,816)       (55,398)
                                                                             -----------    -----------

        Net cash used in operating activities ............................      (747,358)      (375,692)
                                                                             -----------    -----------

Cash flows from investing activities:
  Receipt of distributions from partnerships .............................       437,504        487,683
                                                                             -----------    -----------

        Net cash provided by investing activities ........................       437,504        487,683
                                                                             -----------    -----------

Cash flows from financing activities:
  Distribution paid to Limited Partners ..................................    (1,268,386)          --
  Tax distribution on behalf of Limited Partners .........................      (590,097)          --
                                                                             -----------    -----------

        Net cash used in financing activities: ...........................    (1,858,483)          --
                                                                             -----------    -----------

Net (decrease) increase in cash and cash equivalents .....................    (2,168,337)       111,991

Cash and cash equivalents, beginning of period ...........................     7,975,361      8,046,599
                                                                             -----------    -----------

Cash and cash equivalents, end of period .................................   $ 5,807,024    $ 8,158,590
                                                                             ===========    ===========
</TABLE>


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

                                       -3-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             June 30, 2009 and 2008

                                   (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 June 30,  2009,  and the  results  of its
operations for the three and six month periods ended June 30, 2009 and 2008, and
its cash  flows for the six month  periods  ended  June 30,  2009 and 2008.  The
results of  operations  for the interim  periods  ended June 30,  2009,  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  (US GAAP) and with the  instructions  to Form  10-Q.
Certain  information and accounting policies and footnote  disclosures  normally
included in financial  statements  prepared in conformity with US GAAP 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-K at December 31, 2008.


2.   NEW ACCOUNTING PRONOUNCEMENTS

     FASB Statement No. 165 Subsequent Events  establishes  general standards of
accounting  for and disclosure of events that occur after the balance sheet date
but before the company  issues  financial  statements  or has them  available to
issue. SFAS 165 defines (i) the period after the balance sheet date during which
a reporting entity's  management should evaluate events or transactions that may
occur for potential recognition or disclosure in the financial statements,  (ii)
the circumstances  under which an entity should recognize events or transactions
occurring  after the balance sheet date in its financial  statements,  and (iii)
the disclosures an entity should make about events or transactions that occurred
after the balance sheet date. SFAS 165 became effective for periods ending after
June 15, 2009.  Subsequent  events have been evaluated  through August 11, 2009,
which is the issue date of the consolidated  financial statements.  The adoption
of SFAS  165 did not have a  material  impact  on the  consolidated  results  of
operations or financial position.

     In April 2009, FSP No. FAS 107-1 and APB 28-1,  "Interim  Disclosures about
Fair Value of  Financial  Instruments"  was  issued  which  requires  disclosure
regarding the fair value of financial  instruments for interim reporting periods
as well as in annual financial statements. We adopted the FSP during the quarter
ended June 30, 2009.

     In September  2006, the Financial  Accounts  Standards  Board (FASB) issued
SFAS No. 157, Fair Value Measurements ("SFAS No. 157"). SFAS No. 157 establishes
a formal framework for measuring fair value under US GAAP. Although SFAS No. 157
applies  (amends) the provisions of existing FASB and AICPA  pronouncements,  it
does  not  require  any new  fair  value  measurements,  nor  does it  establish
valuation standards.  SFAS No. 157 is effective for fiscal years beginning after
November 15, 2007. We adopted the recognition and disclosure  provisions of SFAS
No. 157 for financial  assets and  financial  liabilities  and for  nonfinancial
assets and  nonfinancial  liabilities  that are  re-measured  at least  annually
effective  January 1, 2008.  The adoption did not have a material  impact on our
financial position,  results of operations or cash flows. In accordance with FSP
SFAS No.  157-2,  "Effective  Date of FASB  Statement  No. 157",  we adopted the
provisions of SFAS No. 157 for all other  nonfinancial  assets and  nonfinancial
liabilities  effective  January 1, 2009 and the adoption did not have a material
impact on our financial position, results of operations or cash flows.

                                       -4-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             June 30, 2009 and 2008

                                   (Unaudited)


2.   NEW ACCOUNTING PRONOUNCEMENTS - Continued

     SFAS No. 157  establishes  a hierarchy  for inputs used in  measuring  fair
value as follows:

     1.   Level 1 Inputs -- quoted prices in active markets for identical assets
          of liabilities.
     2.   Level 2 Inputs -- observe  inputs  other than quoted  prices in active
          markets for identical assets and liabilities.
     3.   Level 3 Inputs -- unobservable inputs.

     In  certain  cases,  the inputs  used to  measure  fair value may fall into
different  levels of the fair value  hierarchy.  In such cases,  for  disclosure
purposes,  the level within which the fair value  measurement  is categorized is
based  on  the  lowest  level  input  that  is  significant  to the  fair  value
measurement.

     The  Partnership  has determined  that the fair value of the purchase money
notes is de minimus, as the notes are secured by limited  partnership  interests
only, are non-recourse to the Partnership and of which two are in default.

     The  balance  sheet   carrying   amount  for  cash  and  cash   equivalents
approximates their fair value.


3.   INVESTMENTS IN 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 $2,790,000 plus aggregate  accrued  interest of
$10,906,628  as of June 30, 2009,  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.

     Asbury  Towers was paid off at a discount  from proceeds of the sale of the
property owned by the Local Partnership in 2008.  Effective January 1, 2009, the
Partnership's  interest in Cedar Point and Thornwood  House were  transferred to
the purchase money noteholders and or their affiliates or assignees.


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

     Asbury Towers        $3,432,081      August 2008       Sale
     Cedar Point           1,320,000      January 2009      Transfer
     Thornwood House       1,775,000      January 2009      Transfer


                                       -5-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             June 30, 2009 and 2008

                                   (Unaudited)


3.   INVESTMENTS IN PARTNERSHIPS - Continued

     The purchase money notes related to the following  properties  have matured
and have not been paid or extended as of August 11, 2009.

                                                Accrued Interest
                                                     as of
     Property                  Principal          June 30, 2009       Maturity
     --------                 -----------       ----------------      --------

     Westport Village (1)     $  840,000          $2,759,245          09/01/99
     Pilgrim Tower East        1,450,000 (2)       4,802,718          11/30/03


     (1)  In receivership.
     (2)  Remaining principal, after a partial payment.

     The remaining  purchase  money note related to  Northridge  Park matures in
2025. As of June 30, 2009, principal and accrued interest balances were $500,000
and $3,344,665, respectively.

     As of June 30, 2009, Westport Village is in receivership. The Partnership's
non-recourse  purchase  money notes and accrued  interest  totaled  $840,000 and
$2,759,245,  respectively at June 30, 2009. The Partnership is not  anticipating
any loss resulting from the anticipated change in ownership upon foreclosure.

     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 notes
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 matured or 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 matured or maturing purchase money notes
exceeds the  carrying  amount of the  investment  in each of the  related  Local
Partnerships.  Thus, even a complete loss of the Partnership's interest in these
Local  Partnerships  would not have a material  adverse  impact on the financial
condition of the Partnership.

     The Managing General Partner continues 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


                                       -6-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             June 30, 2009 and 2008

                                   (Unaudited)


3.   INVESTMENTS IN PARTNERSHIPS - Continued

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 or other transfer
of the Partnership's  interest, the excess of the nonrecourse  indebtedness over
the  carrying  amount  of the  Partnership's  investment  in the  related  Local
Partnership  will result in a taxable gain. This gain will be taxable to Limited
Partners at a federal  tax rate of up to 35.0%.  Additionally,  the  Partnership
would lose its investment in the Local Partnership and,  likewise,  its share of
any future cash  distributed by the Local  Partnership  from rental  operations,
mortgage  debt  refinancings,  or sale of the real  estate.  Of the eight  Local
Partnerships  in which the  Partnership is invested as of June 30, 2009, the two
Local Partnerships with associated  purchase money notes which have matured,  or
which mature  through June 30, 2010, and which remain unpaid or unextended as of
August 11, 2009,  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 from
     For the Year Ending     from Local Partnerships       Local Partnerships
     -------------------     -----------------------     ----------------------

     December 31, 2007                   0%                   $0
     December 31, 2008                10.4%                   $57,257


     The  Managing  General  Partner  continues  to  address  the  maturity  and
impending  maturity of the Partnership's  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
and  six  month  periods  ended  June  30,  2009,  was  $159,351  and  $319,859,
respectively,  and $190,424 and  $1,068,292  for the three and six month periods
ended June 30, 2008, respectively.  The accrued interest payable on the purchase
money notes of $10,906,628  and $19,565,411 as of June 30, 2009 and December 31,
2008, respectively,  is due 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.

                                   Cedar Point
                                   -----------

     The  Partnership  defaulted  on its  purchase  money  note  secured  by its
interest in Southwest Development Company (Cedar Point) on August 30, 2004, when
the note matured and was not paid.  The default  amount  included  principal and
accrued interest of $1,320,000 and $3,122,592, respectively. The Partnership had
agreed in principle to assign its interest in Cedar Point to the  noteholders in
satisfaction of the nonrecourse  note. There had been no communication  with the
noteholders since 2006. Therefore, on December 31, 2007, the Partnership's basis
in Cedar Point,  along with associated  acquisition  fees and property  purchase
costs which had been reclassified to investment in partnerships held for sale or
transfer,  were returned to their respective operating accounts. The Partnership

                                       -7-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             June 30, 2009 and 2008

                                   (Unaudited)


3.   INVESTMENTS IN PARTNERSHIPS - Continued

was  subsequently  informed by counsel of the purchase  money  noteholders  that
consent to  transfer  the  Partnership's  interest  has been  obtained  from the
Illinois Housing  Development  Authority (IHDA).  Effective January 1, 2009, the
Partnership's interest was transferred to the purchase money noteholders.  As of
January 1, 2009, the principal and accrued interest balances were $1,320,000 and
$3,907,607,  respectively.  The transfer resulted in gain from extinguishment of
debt for  financial  statement  purposes  of  $2,566,944  in 2009 and in gain of
approximately $3.9 million for federal tax purposes.

     Due to the impending transfer of the Partnership's interest in Cedar Point,
the Partnership's basis in the Local Partnership, along with the net unamortized
amount  of  acquisition  fees  and  property   purchase  costs,   which  totaled
$2,660,663, at December 31, 2008, was reclassified to investment in partnerships
held for sale or transfer in the accompanying consolidated balance sheet at that
date.

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

     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 remaining  purchase money note related to DeAngelis Manor,  although,  as of
August  11,  2009,  the note has not been  canceled  pending  final  receipt  of
accumulated cash from the property's  previous operations and payment thereof to
the purchase money noteholder.  The final  cancellation of the note will have no
financial impact to the Partnership.

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

     The  Partnership  defaulted  on its  purchase  money  note  secured  by its
interest in Pilgrim Tower East  Associates  (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. As of
August 11, 2009,  principal and accrued  interest of $1,450,000 and  $4,827,051,
respectively, were due. The Partnership and the noteholders signed a contract to
sell the  Partnership's  interest  in Pilgrim  Tower East to the  noteholder  in
exchange  for the  outstanding  principal  and accrued  interest 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.  The
noteholders failed to obtain required  regulatory consent to the sale within the
required time frame and the contract for the sale of the Partnership's  interest
expired in  November  2003.Under  the terms of the note and the  Assignment  and
Security  Agreement,  the  noteholders  have the right to enforce their security
interests in the Local  Partnership  subject to approval by  California  Housing
Finance Agency (CHFA) and all other government  agencies with  jurisdiction over
the property. The Partnership has been informed by the noteholders that they are
working  to obtain  regulatory  consent  to the  transfer  of the  Partnership's
interest. There is no assurance that a transfer of the Partnership's interest in
Pilgrim Tower East will occur.

     Due to the  impending  transfer  of the  Partnership's  interest in Pilgrim
Tower East, the Partnership's basis in the Local Partnership, along with the net
unamortized  amount of  acquisition  fees and  property  purchase  costs,  which
totaled   $27,554  and  $39,732  at  June  30,  2009  and   December  31,  2008,
respectively,  has been reclassified to investment in partnerships held for sale
or transfer in the accompanying consolidated balance sheets.


                                       -8-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             June 30, 2009 and 2008

                                   (Unaudited)


3.   INVESTMENTS IN PARTNERSHIPS - Continued

                                 Thornwood House
                                 ---------------

     The  Partnership  defaulted  on its  purchase  money  note  secured  by its
interest in Thornwood  House  Associates  (Thornwood  House) on August 30, 2004,
when the note matured and was not paid.  The default amount  included  principal
and accrued interest of $1,775,000 and $4,025,568, respectively. The Partnership
had agreed in principle to assign its interest to the noteholder in satisfaction
of the nonrecourse  note. There had been no  communication  with the noteholders
since  2006.  Therefore,  on  December  31,  2007,  the  Partnership's  basis in
Thornwood House,  along with associated  acquisition fees and property  purchase
costs which had been reclassified to investment in partnerships held for sale or
transfer,  were returned to their respective operating accounts. The Partnership
was  subsequently  informed by counsel of the purchase  money  noteholders  that
consent to transfer  the  Partnership's  interest has been  obtained  from IDHA.
Effective  January 1, 2009, the  Partnership's  interest was  transferred to the
purchase  money  noteholders.  As of January 1, 2009,  the principal and accrued
interest  balances were  $1,775,000 and $5,071,035,  respectively.  The transfer
resulted in gain from extinguishment of debt for financial statement purposes of
$6,390,833  in 2009 and in gain of  approximately  $7.7  million for federal tax
purposes.

     Due to the impending  transfer of the  Partnership's  interest in Thornwood
House,  the  Partnership's  basis in the Local  Partnership,  along with the net
unamortized  amount of  acquisition  fees and  property  purchase  costs,  which
totaled  $455,202,  at December 31, 2008,  was  reclassified  to  investment  in
partnerships held for sale or transfer in the accompanying  consolidated balance
sheet at that date.

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

     The  Partnership  defaulted  on its  purchase  money  notes  secured by its
interest in 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 August 11,
2009,  principal and accrued interest of $840,000 and $2,772,152,  respectively,
were due. The Partnership was sued by the noteholders but there has not been any
legal action  since 2000.  The  Partnership  and the  noteholders  had agreed in
principle  that the  Partnership  would deposit  assignments of its interests in
Westport Village in escrow,  together with an option agreement pursuant to which
the  noteholders  could purchase the interests for the  outstanding  debt if the
property  were not sold and/or the notes were not repaid by January 8, 2001.  At
that time, the Partnership's basis in the Local Partnership,  along with the net
unamortized  amount of  acquisition  fees and  property  purchase  costs,  which
totaled $46,989,  was reclassified to investment in partnerships held in escrow.
However, there has been no response from the noteholders concerning implementing
the  settlement  since  2000.  Therefore,   effective  December  31,  2003,  the
acquisition  fees and property  purchase  costs which had been  reclassified  to
investment  in  partnerships  held in escrow were  returned to their  respective
accounts.

                                       -9-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             June 30, 2009 and 2008

                                   (Unaudited)


3.   INVESTMENTS IN PARTNERSHIPS - Continued

     The  loan  encumbering  the  property  associated  with  the  Partnership's
investment in Westport  Village is in default.  The Managing  General Partner of
the Local  Partnership  was unable to reach an agreement with IHDA to a mortgage
restructuring.  As of June 30, 2009,  Westport Village is in  receivership.  The
Partnership  is  working  with the IHDA  for a sale of the  property  in lieu of
foreclosure that they approved.  The Partnership's  non-recourse  purchase money
notes and accrued interest thereon total $840,000 and $2,759,245,  respectively,
at June 30, 2009 relating to this property.  The Partnership is not anticipating
any loss resulting from the change in ownership.

     As Westport  Village is in  receivership,  the  Partnership's  basis in the
Local Partnership, along with the net unamortized amount of acquisition fees and
property  purchased  costs,  which totaled $0 at both June 30, 2009 and December
31, 2008, has been  reclassified to investment in partnerships  held for sale or
transfer in the accompanying consolidated balance sheets.

b.   Completed sales
     ---------------

                                  Asbury Tower
                                  ------------

     The  purchase  money note secured by the  Partnership's  interest in Asbury
Tower Associates Limited  Partnership (Asbury Tower) was due to mature on August
31, 2004. However, the noteholder orally agreed to extend the maturity date on a
month to month basis until such time as the noteholder provides a 30 day advance
notice to the  Partnership.  Effective  January  1, 2008 the  interest  rate was
reduced to 4 percent.  On August 28, 2008,  the property  owned by Asbury Towers
was sold to an affiliate of the Local Managing  General  Partner.  Proceeds from
the sale were used to payoff the purchase money note at a discount. As of August
28, 2008,  the  principal and accrued  interest  balances  were  $3,432,081  and
$24,789,908, respectively. The sale resulted in gain from extinguishment of debt
for  financial  statement  purposes  of  $28,168,263  in 2008 and total  gain of
$29,838,732 for federal tax purposes.

c.   Assets held for sale or transfer
     --------------------------------

                                   Hale Ohana
                                   ----------

     The Partnership was informed that the Local Managing General Partner signed
a contract to sell the property related to Lihue II Associates (Hale Ohana). Due
to the impending  sale of the  property,  the  Partnership's  basis in the Local
Partnership,  along  with the net  unamortized  amount of  acquisition  fees and
property  purchase  costs,  which totaled  $7,739 at December 31, 2008, had been
reclassified  to  investment  in  partnerships  held for sale or transfer in the
accompanying  consolidated  balance sheet at that date.  The buyer was unable to
close under the terms of the contract.  Therefore,  effective June 30, 2009, the
Partnership's  basis in the Local  Partnership,  along with the net  unamortized
amount of  acquisition  fees and property  purchase  costs were  returned to the
respective operating accounts.

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

     See Note 3.a., above.


                                      -10-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             June 30, 2009 and 2008

                                   (Unaudited)


3. INVESTMENTS IN PARTNERSHIPS - Continued

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

     See Note 3.a., above.

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

     Combined   statements  of  operations   for  the  eight  and  eleven  Local
Partnerships in which the Partnership was invested as of June 30, 2009 and 2008,
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 which have cumulative losses in excess of the amount of
the  Partnership's  investments  in  those  Local  Partnerships  (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.


                        COMBINED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                              For the three months ended
                                                                        June 30,
                                              ------------------------------------------------------------
                                                         2009                              2008
                                              --------------------------       ---------------------------
                                                Equity                           Equity
                                                Method        Suspended          Method         Suspended
                                              ----------      ----------       ----------       ----------
     <S>                                      <C>             <C>               <C>             <C>
     Number of Local Partnerships                 2               6                 4               7
                                                  =               =                 =               =

     Revenue:
       Rental                                 $  332,940      $1,799,944       $  858,955       $2,297,216
       Other                                      73,420          82,808           79,128          151,279
                                              ----------      ----------       ----------       ----------

         Total revenue                           406,360       1,882,752          938,083        2,448,495
                                              ----------      ----------       ----------       ----------

     Expenses:
       Operating                                 284,234       1,143,425          721,135        1,781,778
       Interest                                   10,343         422,322          (10,596)         453,723
       Depreciation and amortization              77,232         355,101          170,505          554,400
                                              ----------      ----------       ----------       ----------

         Total expenses                          371,809       1,920,848          881,044        2,789,901
                                              ----------      ----------       ----------       ----------

     Net income (loss)                        $   34,551      $  (38,096)      $   57,039       $ (341,406)
                                              ==========      ==========       ==========       ==========


     Cash distributions                       $       --      $  437,503       $       --       $  487,683
                                              ==========      ==========       ==========       ==========


     Cash distributions recorded
       as income                              $       --      $  437,503       $       --       $  487,683

     Partnership's share of Local
       Partnership net income (loss)              34,203          56,465               --
                                              --------------------------       ---------------------------
     Share of income from
       partnerships                                     $471,706                        $544,148
                                                        ========                        ========
</TABLE>

                                      -11-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             June 30, 2009 and 2008

                                   (Unaudited)


3.   INVESTMENTS IN PARTNERSHIPS - Continued

<TABLE>
<CAPTION>
                                                                For the six months ended
                                                                        June 30,
                                              ------------------------------------------------------------
                                                         2009                              2008
                                              -------------------------         --------------------------
                                                Equity                           Equity
                                                Method        Suspended          Method         Suspended
                                              ----------      ----------       ----------       ----------
     <S>                                      <C>             <C>              <C>              <C>
     Number of Local Partnerships                 2               6                 4               7
                                                  =               =                 =               =

     Revenue:
       Rental                                 $  695,037      $3,599,887       $1,711,806       $4,594,432
       Other                                     103,286         165,616          168,839          302,558
                                              ----------      ----------       ----------       ----------

         Total revenue                           798,323       3,765,503        1,880,645        4,896,990
                                              ----------      ----------       ----------       ----------

     Expenses:
       Operating                                 562,890       2,286,850        1,434,113        3,563,556
       Interest                                   20,686         844,645          (21,192)         907,447
       Depreciation and amortization             154,464         710,202          341,009        1,108,800
                                              ----------      ----------       ----------       ----------

         Total expenses                          738,040       3,841,697        1,753,930        5,579,803
                                              ----------      ----------       ----------       ----------

     Net income (loss)                        $   60,283      $  (76,194)      $  126,715       $ (682,813)
                                              ==========      ==========       ==========       ==========

     Cash distributions                       $       --      $  437,503       $       --       $  487,683
                                              ==========      ==========       ==========       ==========


     Cash distributions recorded
       as income                              $       --      $  437,503       $       --       $  487,683

     Partnership's share of Local
       Partnership net income                     59,675         125,436               --
                                              --------------------------       ---------------------------
     Share of income from
       partnerships                                    $497,178                        $613,119
                                                       ========                        ========
</TABLE>


     Cash  distributions  received from Local Partnerships which have investment
basis (equity method) are recorded as a reduction of investments in partnerships
and as  cash  receipts  on the  respective  consolidated  balance  sheets.  Cash
distributions  received from Local  Partnerships which have cumulative losses in
excess  of  the  amount  of  the   Partnership's   investments  in  those  Local
Partnerships  (equity  method  suspended)  are  recorded as share of income from
partnerships on the respective consolidated statements of operations and as cash
receipts on the respective  consolidated balance sheets. As of June 30, 2009 and
2008, the Partnership's  share of cumulative losses to date for six of the eight
and seven of the eleven Local Partnerships, respectively, exceeded the amount of
the  Partnership's  investments  in those Local  Partnerships  by $6,888,125 and
$13,078,665,  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.


                                      -12-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             June 30, 2009 and 2008

                                   (Unaudited)


4.   RELATED PARTY TRANSACTIONS

     In accordance with the terms of the Partnership Agreement,  the Partnership
is obligated to reimburse the Managing  General  Partner or its  affiliates  for
direct  expenses in connection  with managing the  Partnership.  The Partnership
paid  $120,694 and $187,052 for the three and six month  periods  ended June 30,
2009, respectively, and $84,953 and $137,819 for the three and six month periods
ended June 30,  2008,  respectively.  Such  expenses are included in general and
administrative   expenses  in  the  accompanying   consolidated   statements  of
operations.

     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 June 30, 2009 and 2008 and  $187,500 for
each of the six month periods ended June 30, 2009 and 2008.

     In accordance  with the terms of the  Partnership  Agreement,  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.


5.   CASH DISTRIBUTIONS

     On May 17, 2009, the Partnership declared a cash distribution of $1,857,597
($25 per Unit) to the Limited  Partners  who are holders of record as of May 17,
2009, of which, in June 2009, $1,268,386 was paid to the Limited Partners.  From
the distribution  amount,  in April 2009,  $590,097 was paid to the State of New
Jersey for non-resident withholding tax.


6.   CASH CONCENTRATION RISK

     Financial   instruments  that   potentially   subject  the  Partnership  to
concentrations of risk consist primarily of cash. The Partnership maintains four
cash accounts,  As of June 30, 2009,  the uninsured  portion of the cash balance
was $5,985,507.


                            Number of    Bank Balance     Insured     Uninsured
        Bank                Accounts       06/30/09       06/30/09     06/30/09
----------------------      --------     ------------     --------    ----------

Dreyfus Inst Preferred
  Money Market Fund             1        $5,776,000       $0          $5,776,000

Dreyfus Inst Preferred
  Prime Shares                  1        $209,507         $0          $209,507

SunTrust Bank                   3        $362,637         $362,637    $0


                                      # # #

                                      -13-

<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  consolidated  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.

                          New Accounting Pronouncements
                          -----------------------------

     FASB Statement No. 165 Subsequent Events  establishes  general standards of
accounting  for and disclosure of events that occur after the balance sheet date
but before the company  issues  financial  statements  or has them  available to
issue. SFAS 165 defines (i) the period after the balance sheet date during which
a reporting entity's  management should evaluate events or transactions that may
occur for potential recognition or disclosure in the financial statements,  (ii)
the circumstances  under which an entity should recognize events or transactions
occurring  after the balance sheet date in its financial  statements,  and (iii)
the disclosures an entity should make about events or transactions that occurred
after the balance sheet date. SFAS 165 became effective for periods ending after
June 15, 2009.  Subsequent  events have been evaluated  through August 11, 2009,
which is the issue date of the consolidated  financial statements.  The adoption
of SFAS  165 did not have a  material  impact  on the  consolidated  results  of
operations or financial position.

     In April 2009, FSP No. FAS 107-1 and APB 28-1,  "Interim  Disclosures about
Fair Value of  Financial  Instruments"  was  issued  which  requires  disclosure
regarding the fair value of financial  instruments for interim reporting periods
as well as in annual financial statements. We adopted the FSP during the quarter
ended June 30, 2009, and have included the  additional  disclosures in Note 2 to
these consolidated financial statements.

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

     The  Partnership has disclosed its selection and application of significant
accounting policies in Note 1 of the notes to consolidated  financial statements
included in the  Partnership's  annual report on Form 10-K at December 31, 2008.
The   Partnership   accounts  for  its   investments  in   partnerships   (Local
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.  Environmental  and  operational  trends,  events  and
uncertainties  that might affect the properties owned by the Local  Partnerships
would not necessarily have a significant impact on the Partnership's application
of the equity method of  accounting,  since the equity method has been suspended
for six Local  Partnerships which have cumulative losses in excess of the amount
of the Partnership's investments in those Local Partnerships.

                                     General
                                     -------

     Some of the rental properties owned by the Local  Partnerships are financed
by state and federal 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.

                                      -14-

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


     The U. S. Department of Housing and Urban  Development  (HUD) subsidies are
provided principally under Sections 8 and 236 of the National Housing Act. Under
Section 8, the  government  pays to the  applicable  apartment  partnership  the
difference between market rental rates (determined in accordance with government
procedures)  and the rate the  government  deems  residents  can  afford.  Under
Section  236,  the  government  provides  interest  subsidies  directly  to  the
applicable apartment  partnership through a reduction in the property's mortgage
interest rate. In turn, the partnership  provides a  corresponding  reduction in
resident  rental rates.  In compliance  with the  requirements of Section 8, and
Section  236,  residents  are  screened for  eligibility  under HUD  guidelines.
Subsidies are provided under  contracts  between the federal  government and the
apartment partnerships.

     Subsidy contracts for the investment  apartment properties are scheduled to
expire through 2019.  The Local  Partnerships  seek renewal of expiring  subsidy
contracts,  when appropriate,  for its properties.  HUD has in the past approved
new subsidy  contracts on an annual basis  subject to annual  appropriations  by
Congress. The initial HUD contract renewal process currently provides owners six
options for renewing  their Section 8 contract  depending upon whether the owner
can meet the eligibility criteria. Historically, the Local Partnerships in which
the  Partnership  is invested  have met the  criteria  necessary  to renew their
respective Section 8 contracts.

     Fairway Park Apartments has a Section 8 HAP contract which expires December
31, 2009. The Section 8 HAP contract covers 42 of the apartment units in Fairway
Park Apartments.  It is anticipated  that the Local  Partnership will extend its
Section 8 HAP contract for a one-year period at expiration.

     As of June 30, 2009, the carrying amount of the Partnership's investment in
the Local  Partnership  with  Section 8 HAP  contracts  expiring  in the next 12
months and which was not sold on or before August 11, 2009, was $0.

     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 $5,807,024
as of June 30, 2009, along with anticipated future cash distributions from Local
Partnerships,  is expected  to be  adequate to meet its current and  anticipated
operating cash needs. As of August 11, 2009, 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 $2,790,000 plus aggregate  accrued  interest of
$10,906,628  as of June 30, 2009,  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.

     Asbury  Towers was paid off at a discount  from proceeds of the sale of the
property owned by the Local Partnership in 2008.  Effective January 1, 2009, the
Partnership's  interest in Cedar Point and Thornwood  House were  transferred to
the purchase money noteholders and or their affiliates or assignees.

                                      -15-

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


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

     Asbury Towers         3,432,081      August 2008       Sale
     Cedar Point           1,320,000      January 2009      Transfer
     Thornwood House       1,775,000      January 2009      Transfer


     The purchase money notes related to the following  properties  have matured
and have not been paid or extended as of August 11, 2009.

                                              Accrued Interest
                                                   as of
     Property                Principal         June 30, 2009     Maturity
     --------               -----------       ----------------   --------

     Westport Village (1)   $  840,000          $2,759,245       09/01/99
     Pilgrim Tower East      1,450,000 (2)       4,802,718       11/30/03


     (1) In receivership.
     (2) Remaining principal, after a partial payment.

     The remaining  purchase  money note related to  Northridge  Park matures in
2025. As of June 30, 2009, principal and accrued interest balances were $500,000
and $3,344,665, respectively.

     As of June 30, 2009, Westport Village is in receivership. The Partnership's
non-recourse  purchase  money notes and accrued  interest  totaled  $840,000 and
$2,759,245,  respectively at June 30, 2009. The Partnership is not  anticipating
any loss resulting from the anticipated change in ownership upon foreclosure.

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

     The purchase money notes,  which are  nonrecourse to the  Partnership,  are
generally  secured  by  the  Partnership's  interest  in  the  respective  Local
Partnerships.  There is no assurance  that the underlying  properties  will have
sufficient appreciation and equity to enable the Partnership to pay the purchase
money notes'  principal and accrued  interest when due. If a purchase money note
is not paid in accordance with its terms,  the  Partnership  will either have to
renegotiate  the terms of repayment or risk losing its  partnership  interest in
the  respective  Local  Partnership.  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 matured or 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 matured or maturing purchase money notes
exceeds the  carrying  amount of the  investment  in each of the  related  Local
Partnerships.  Thus, even a complete loss of the Partnership's interest in these
Local  Partnerships  would not have a material  adverse  impact on the financial
condition of the Partnership.

     The Managing General Partner continues 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


                                      -16-

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


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 or other transfer
of the Partnership's  interest, the excess of the nonrecourse  indebtedness over
the  carrying  amount  of the  Partnership's  investment  in the  related  Local
Partnership  will result in a taxable gain. This gain will be taxable to Limited
Partners at a federal  tax rate of up to 35.0%.  Additionally,  the  Partnership
would lose its investment in the Local Partnership and,  likewise,  its share of
any future cash  distributed by the Local  Partnership  from rental  operations,
mortgage  debt  refinancings,  or sale of the real  estate.  Of the eight  Local
Partnerships  in which the  Partnership is invested as of June 30, 2009, the two
Local Partnerships with associated  purchase money notes which have matured,  or
which mature  through June 30, 2010, and which remain unpaid or unextended as of
August 11, 2009,  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 from
     For the Year Ended     from Local Partnerships      Local Partnerships
     ------------------     -----------------------    ----------------------

     December 31, 2007                 0%                    $0
     December 31, 2008              10.4%                    $57,257


     The  Managing  General  Partner  continues  to  address  the  maturity  and
impending  maturity of the Partnership's  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.

     The Partnership closely monitors its cash flow and liquidity position in an
effort to ensure that sufficient  cash is available for operating  requirements.
For the six month period  ended June 30,  2009,  existing  cash  resources  were
adequate to support cash used in operating  and financing  activities.  Cash and
cash equivalents decreased $2,168,337 during the six month period ended June 30,
2009, primarily due to operating expenses paid in cash and distributions paid.

     On May 17, 2009, the Partnership declared a cash distribution of $1,857,597
($25 per Unit) to the Limited  Partners  who are holders of record as of May 17,
2009, of which, in June 2009, $1,268,386 was paid to the Limited Partners.  From
the distribution  amount,  in April 2009,  $590,097 was paid to the State of New
Jersey for non-resident withholding tax.

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

     The Partnership's net income for the three month period ended June 30, 2009
decreased  compared to 2008,  primarily due to decreases in share of income from
partnerships and interest revenue.  Share of income from partnerships  decreased
primarily due to lower cash distributions  received.  Interest revenue decreased
due to lower rates in 2009.

     The  Partnership  recognized net income for the six month period ended June
30, 2009 compared to net loss in 2008, primarily due to an increase in gain from
extinguishment  of debt and a  decrease  in  interest  expense,  related  to the
transfers of Cedar Point and Thornwood  House,  partially offset by decreases in
share of income from  partnerships and interest  revenue,  both as stated above,
and increases in general and administrative expenses. General and administrative
expenses  increased  primarily  due to filing fees paid by the  Partnership  and
higher reimbursed payroll costs.

                                      -17-

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


     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 and
six month  periods  ended June 30, 2009 did not include  losses of $139,342  and
$278,682, respectively, compared to excluded losses of $440,633 and $881,268 for
the three and six month periods ended June 30, 2008, respectively.

     No other  significant  changes in the  Partnership's  operations have taken
place during the three month period ended June 30, 2009.

     Certain  states may assert claims  against the  Partnership  for failure to
withhold and remit state income tax on operating  profit or where the sale(s) of
property in which the Partnership was invested failed to produce sufficient cash
proceeds  with  which to pay the state tax and/or to pay  statutory  partnership
filing fees. The  Partnership is unable to quantify the amount of such potential
claims at this time. The Partnership has consistently  advised its Partners that
they  should  consult  with their tax  advisors  as to the  necessity  of filing
non-resident  returns in such states with  respect to their  proportional  taxes
due.


Item 4. Controls and Procedures

     In June  2009,  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-15 and 15d-15.  The  Managing  General  Partner does not
expect that the  Partnership's  disclosure  controls and procedures will prevent
all error and all fraud.  A control  system,  no matter how well  conceived  and
operated,  can provide only  reasonable  assurance  that the  objectives  of the
control system are met. Further, the design of a control system must reflect the
fact that there are resource  constraints,  and the benefits of controls must be
considered relative to their costs.  Because of the inherent  limitations in all
control systems,  no evaluation of controls can provide absolute  assurance that
all control issues have been detected.  These inherent  limitations  include the
realities that judgments in  decision-making  can be faulty, and that breakdowns
can occur  because  of simple  error or  mistake.  The  design of any  system of
controls also is based in part upon certain  assumptions about the likelihood of
future  events,  and there can be no  assurance  that any design will succeed in
achieving its stated goals under all  potential  future  conditions.  Over time,
controls may become inadequate  because of changes in conditions,  or the degree
of compliance  with the policies or procedures may  deteriorate.  Because of the
inherent  limitations in a cost-effective  control system,  misstatements due to
error or fraud may  occur and not be  detected.  Based on such  evaluation,  our
principal  executive officer and principal financial officer have concluded that
as of June 30, 2009,  our disclosure  controls and procedures  were effective to
ensure that (i) the  information  required to be  disclosed by us in the reports
filed or submitted by us under the Securities  Exchange Act of 1934, as amended,
was  recorded,  processed,  summarized  or  reported  within  the  time  periods
specified in the SEC's rules and forms and (ii) such information was accumulated
and communicated to management,  including our principal  executive  officer and
principal  financial  officer,  to allow  timely  decisions  regarding  required
disclosure.  In  addition,  there  have  been  no  significant  changes  in  the
Partnership's internal control over financial reporting that occurred during the
Partnership's  most recent fiscal  quarter that has materially  affected,  or is
reasonably likely to materially affect, the Partnership's  internal control over
financial reporting.


                                      -18-

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


     See Note 3.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 has not been any information  required to be disclosed in a report on
Form 8-K during the quarter ended June 30, 2009,  but not  reported,  whether or
not otherwise required by this Form 10-Q at June 30, 2009.

     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.

     On May 17, 2009, the Partnership declared a cash distribution of $1,857,597
($25 per Unit) to the Limited  Partners  who are holders of record as of May 17,
2009, of which, in June 2009, $1,268,386 was paid to the Limited Partners.  From
the distribution  amount,  in April 2009,  $590,097 was paid to the State of New
Jersey for non-resident withholding tax.


Item 6. Exhibits

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

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

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

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

All other Items are not applicable.

                                      -19-

<PAGE>
                                    SIGNATURE

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


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

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




August 11, 2009                        by:  /s/ H. William Willoughby
---------------                             ------------------------------------
DATE                                        H. William Willoughby,
                                            Director, President, Secretary,
                                              Principal Financial Officer and
                                              Principal Accounting Officer










                                      -20-