<PAGE>

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


                   Quarterly Report Under Section 13 or 15(d)
                     of the Securities Exchange Act of 1934


For the Quarter Ended    March 31, 1997
                         --------------


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


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




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



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



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


     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 and (2) has been subject to such filing
requirements for the past 90 days.
Yes [X]   No [ ]   

     Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.



          Class                            Outstanding at March 31, 1997
----------------------------------      ----------------------------------
     (Not applicable)                             (Not applicable)
<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                               INDEX TO FORM 10-Q

                      FOR THE QUARTER ENDED MARCH 31, 1997



                                                                 Page
                                                                 ----

PART I.   Financial Information (Unaudited)

Item 1.   Financial Statements

          Consolidated Balance Sheets - March 31, 1997 and
            December 31, 1996 . . . . . . . . . . . . . . . .        1

          Consolidated Statements of Operations - for the
            three months ended March 31, 1997 and 1996  . . .        2

          Consolidated Statements of Cash Flows - for the
            three months ended March 31, 1997 and 1996  . . .        3

          Notes to Consolidated Financial Statements  . . . .        4

Item 2.   Management's Discussion and Analysis of Financial
            Condition and Results of Operations . . . . . . .       12

PART II.  Other Information

Item 3.   Defaults upon Senior Securities . . . . . . . . . .       18

Item 6.   Exhibits and Reports on Form 8-K  . . . . . . . . .       19

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

Exhibit Index . . . . . . . . . . . . . . . . . . . . . . . .       21
<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,
                                                                                                 1997            1996
                                                                                             -------------    ------------
                                                                                              (Unaudited)
<S>                                                                                          <C>              <C>
Investments in and advances to partnerships                                                  $  30,213,055    $  30,456,822
Cash and cash equivalents                                                                        8,996,606        8,871,297
Restricted cash equivalents                                                                         50,400          585,810
Acquisition fees, principally paid to related parties, net of
  accumulated amortization of $365,743 and $358,374, respectively                                  812,456          819,825
Property purchase costs, net of accumulated amortization of
  $353,536 and $346,512, respectively                                                              770,304          777,328
Other assets                                                                                        27,089           37,157
                                                                                             -------------    -------------
      Total assets                                                                           $  40,869,910    $  41,548,239
                                                                                             =============    =============

                             LIABILITIES AND PARTNERS' DEFICIT

Due on investments in partnerships, net of unamortized discount
  on purchase money notes of $15,598,616 and $16,874,671,
  respectively                                                                               $  27,633,888    $  26,931,672
Accrued interest payable                                                                        80,757,966       78,413,302
Accounts payable and accrued expenses                                                               89,440           99,062
Consulting fees payable to related parties                                                           8,869            8,869
                                                                                             -------------    -------------
      Total liabilities                                                                        108,490,163      105,452,905
                                                                                             -------------    -------------

Commitments and contingencies

Partners' capital (deficit):

  Capital paid-in:
    General Partners                                                                                 2,000            2,000
    Limited Partners                                                                            73,501,500       73,501,500
                                                                                             -------------    -------------
                                                                                                73,503,500       73,503,500
  Less:
    Accumulated distributions to partners                                                       (5,451,702)      (5,451,702)
    Offering costs                                                                              (7,562,894)      (7,562,894)
    Accumulated loss                                                                          (128,109,157)    (124,393,570)
                                                                                             -------------    -------------
      Total partners' deficit                                                                  (67,620,253)     (63,904,666)
                                                                                             -------------    -------------
      Total liabilities and partners' deficit                                                $  40,869,910    $  41,548,239
                                                                                             =============    =============
</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

                                            (Unaudited)
<TABLE>
<CAPTION>
                                                                                               For the three months ended
                                                                                                        March 31,
                                                                                             -----------------------------
                                                                                                 1997             1996
                                                                                             -------------    -------------
<S>                                                                                          <C>              <C>
Share of income from partnerships                                                            $     176,109    $     206,744
                                                                                             -------------    -------------
Other revenue and  expenses:

 Revenue:
   Interest and other income                                                                       136,995          188,320
                                                                                             -------------    -------------
 Expenses:
   Interest                                                                                      3,853,116        3,999,314
   Management fee                                                                                   93,750           93,750
   General and administrative                                                                       42,131           35,985
   Professional fees                                                                                25,301           28,705
   Amortization                                                                                     14,393           15,848
                                                                                             -------------    -------------
                                                                                                 4,028,691        4,173,602
                                                                                             -------------    -------------
      Total other revenue and expenses                                                          (3,891,696)      (3,985,282)
                                                                                             -------------    -------------
Loss before gain on disposition of investment in partnerships                                   (3,715,587)      (3,778,538)

Gain on disposition of investment in partnerships                                                       --        2,853,278
                                                                                             -------------    -------------
Loss before extraordinary gain from extinguishment of debt                                      (3,715,587)        (925,260)
                                                                                             -------------    -------------
Extraordinary gain from extinguishment of debt                                                          --        1,502,698

Net (loss) income                                                                               (3,715,587)         577,438

Accumulated losses, beginning of period                                                       (124,393,570)    (130,738,977)
                                                                                             -------------    -------------
Accumulated losses, end of period                                                            $(128,109,157)   $(130,161,539)
                                                                                             =============    =============
(Loss) income allocated to General Partners (1.51%)                                          $     (56,105)   $       8,719
                                                                                             =============    =============
(Loss) income allocated to Initial and Special Limited Partners (1.49%)                      $     (55,363)   $       8,604
                                                                                             =============    =============
(Loss) income allocated to Additional Limited Partners (97%)                                 $  (3,604,119)   $     560,115
                                                                                             =============    =============
(Loss) income per unit of Additional Limited
  Partnership Interest based on 73,500 units outstanding                                     $      (49.04)   $        7.62
                                                                                             =============    =============
</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,
                                                                                             -----------------------------
                                                                                                 1997             1996
                                                                                             ------------     ------------
<S>                                                                                          <C>              <C>
Cash flows from operating activities:
  Net (loss) income                                                                          $ (3,715,587)    $    577,438

  Adjustments to reconcile net (loss) income to net cash
      used in operating activities:
    Share of income from partnerships                                                            (176,109)        (206,744)
    Decrease (increase) in accrued interest receivable on
      advances to partnerships                                                                      2,738           (4,745)
    Amortization of deferred costs                                                                 14,393           15,848
    Amortization of discount on purchase money notes                                            1,276,055        1,091,240
    Gain on disposition of investment in partnerships                                                  --       (2,853,278)
    Extraordinary gain from extinguishment of debt                                                     --       (1,502,698)
    Payment of purchase money note interest                                                      (232,397)        (219,292)

    Changes in assets and liabilities:
      Decrease (increase) in other assets                                                          10,068           (6,544)
      Increase in accrued interest payable                                                      2,577,061        2,908,074
      Decrease in accounts payable and accrued expenses                                            (9,622)         (27,123)
                                                                                             ------------     ------------
         Net cash used in operating activities                                                   (253,400)        (227,824)
                                                                                             ------------     ------------
Cash flows from investing activities:
  Receipt of distributions from partnerships                                                      336,398          324,022
  Repayment of advances to partnerships                                                            80,740           67,139
  Decrease in restricted cash equivalents                                                         535,410               --
  Net proceeds from disposition of investment in partnerships                                          --        4,333,142
                                                                                             ------------     ------------
         Net cash provided by investing activities                                                952,548        4,724,303
                                                                                             ------------     ------------
Cash flows from financing activities:
  Payment of purchase money note principal                                                        (42,739)          (8,865)
  Pay-off of purchase money notes and related interest                                           (531,100)      (3,296,401)
                                                                                             ------------     ------------
          Net cash used in financing activities                                                  (573,839)      (3,305,266)
                                                                                             ------------     ------------
Net increase in cash and cash equivalents                                                         125,309        1,191,213

Cash and cash equivalents, beginning of period                                                  8,871,297        6,801,118
                                                                                             ------------     ------------
Cash and cash equivalents, end of period                                                     $  8,996,606     $  7,992,331
                                                                                             ============     ============
</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

                                   (Unaudited)


1.   BASIS OF PRESENTATION

     In the opinion of C.R.I., Inc. (CRI), the Managing General Partner, the
accompanying unaudited consolidated financial statements of Capital Realty
Investors-IV Limited Partnership (the Partnership) contain all adjustments of a
normal recurring nature necessary to present fairly the Partnership's
consolidated financial position as of March 31, 1997 and December 31, 1996 and
the consolidated results of its operations for the three months ended March 31,
1997 and 1996 and its consolidated cash flows for the three months ended March
31, 1997 and 1996.

     These unaudited financial statements have been prepared pursuant to the
rules and regulations of the Securities and Exchange Commission.  Certain
information and note disclosures normally included in consolidated financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted.  While the Managing General Partner believes
that the disclosures presented are adequate to make the information not mis-
leading, it is suggested that these consolidated financial statements be read in
conjunction with the consolidated financial statements and the notes included in
the Partnership's Annual Report filed on Form 10-K for the year ended December
31, 1996.

     Certain amounts in the 1996 financial statements have been reclassified to
conform to the 1997 presentation.

2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS

     The Partnership's obligations with respect to its investments in Local
Partnerships, in the form of purchase money notes having a principal balance of
$43,232,504 (exclusive of unamortized discount on purchase money notes of
$15,598,616) plus accrued interest of $80,757,966 as of March 31, 1997, 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.  Purchase money notes in
an aggregate principal amount of $1,370,000 matured in 1994 but have not been
paid, as discussed below.  Purchase money notes in an aggregate principal amount
of $1,330,000 mature on August 31, 1997, as discussed below.  Purchase money
notes originally due to mature on September 1, 1999, were retired at a discount
on January 2, 1997, in connection with the terms of an escrow agreement, as
discussed below.  The remaining purchase money notes mature from 1999 to 2025. 
The purchase money notes 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 Local Partnership.  The Managing General
Partner is continuing to investigate possible alternatives to reduce the
Partnership's long-term debt obligations.  These alternatives include, among
others, retaining the cash available for distribution to meet the purchase money
note requirements, buying out certain purchase money notes at a discounted
price, extending the due dates of certain purchase money notes, or refinancing
the respective properties' underlying debt and using the Partnership's share of
the proceeds to pay off or buy down certain purchase money note obligations.



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

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   (Unaudited)

2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

     Interest expense on the Partnership's purchase money notes for the three
months ended March 31, 1997 and 1996 was $3,853,116 and $3,999,314 respectively.
Amortization of the imputed interest on purchase money notes increased interest
expense during the three months ended March 31, 1997 and 1996 by $1,276,055 and
$1,091,240, respectively.  The accrued interest on the purchase money notes of
$80,757,966 and $78,413,302 as of March 31, 1997 and December 31, 1996, respect-
ively, is due on the respective maturity dates of the purchase money notes or
earlier, in some instances, if the pertinent Local Partnership has distributable
net cash flow, as defined in the relevant Local Partnership agreements.  

     Purchase money notes plus accrued interest relating to Redden Development
Company (Redden Gardens) in the principal amount of $1,330,000 mature on August
31, 1997.  The Managing General Partner anticipates proposing a five year
extension.  There is no assurance that the Managing General Partner will reach
an agreement of any kind with the noteholders.  Accordingly, there can be no
assurance that the Partnership will be able to retain its interest in the Local
Partnership.  The uncertainty about the continued ownership of the Partnership's
interest in the related Local Partnership does not impact the Partnership's
financial condition because the related purchase money note is nonrecourse and
secured solely by the Partnership's interest in the Local Partnership. 
Therefore, should the investment in Redden Gardens not produce sufficient value
to satisfy the purchase money note related to Redden Gardens, the Partnership's
exposure to loss is limited since the amount of the nonrecourse indebtedness
exceeds the carrying amount of the investment in and advances to the Local
Partnership.  Thus, even a complete loss of this investment would not have a
material impact on the operations of the Partnership.

     On May 22, 1992, Clearfield Hills I Limited Partnership (Clearfield Hills
I) filed a notice of intent to participate under the Low Income Housing
Preservation and Resident Homeownership Act of 1990 (LIHPRHA).  The sale of the
property was completed on February 6, 1996.  The sale price of approximately
$3.2 million generated sufficient proceeds to the Partnership to retire, at a
discount, the purchase money note obligation of the Partnership with respect to
such property, which matured on October 30, 1994.  The sale provided proceeds to
the Partnership in excess of its investment in the Local Partnership, and
resulted in a net financial statement gain in 1996 of approximately $1.8
million, of which approximately $50,000 resulted from the retirement of the
purchase money note obligation with respect to the property.  The federal tax
gain was approximately $2.4 million.  The Managing General Partner and/or its
affiliates did not receive any fees for services relating to the sale.

     On March 1, 1994, New Village Apartments North (Village North) filed a
notice of intent to participate under the LIHPRHA program.  The sale of the
property was completed on February 6, 1996.  The sale price of approximately
$2.86 million generated sufficient proceeds to the Partnership to retire, at a
discount, the purchase money note obligation of the Partnership with respect to
such property, which matured on September 27, 1994.  The sale provided proceeds
to the Partnership in excess of its investment in the Local Partnership, and
resulted in a net financial statement gain in 1996 of approximately $2.6
million, of which approximately $1.5 million resulted from the retirement of the
purchase money note obligation with respect to the property.  The federal tax
gain was approximately $3.3 million.  The Managing General Partner and/or its
affiliates did not receive any fees for services relating to the sale.



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

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   (Unaudited)

2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

     On September 19, 1996, the local general partner of New Forest Park
Associates Limited Partnership (Forest Park) sold the property under the LIHPRHA
program.  In connection with the sale of Forest Park, the Partnership purchased
a certificate of deposit in the principal amount of $531,100 which was held in
escrow until January 2, 1997, at which time all principal and interest accrued
thereon up to three percent per annum was used to retire the Partnership's
remaining purchase money note obligation with respect to Forest Park.  All
interest that accrued on the certificate of deposit in excess of three percent
per annum was received by the Partnership.  Accordingly, the accompanying
financial statements include $535,410 of restricted cash equivalents as of
December 31, 1996, which represents the remaining principal and interest which
was paid on January 2, 1997, in accordance with the escrow agreement.

     The Partnership defaulted on its purchase money note relating to Holiday
Village Apartments on July 27, 1994 when the note matured and was not paid.  The
defaulted amount included principal and accrued interest of $1,370,000 and
$2,862,342, respectively.  As of April 30, 1997, principal and accrued interest
totalling $1,370,000 and $5,081,276, respectively, were due.  In June 1994, an
offer was made to extend the maturity date of this note to coincide with the
potential refinancing of the first mortgage.  There is no assurance that a
refinancing of the first mortgage will be obtained.  The Managing General
Partner and the noteholder continue to negotiate settlement options, and as of
April 30, 1997, negotiations between the Managing General Partner and the
noteholder were ongoing.  There is no assurance that an agreement will be
reached.  Should the noteholder begin foreclosure proceedings on the
Partnership's interest in the related Local Partnership, the Partnership intends
to vigorously defend any action by the noteholder.  However, there is no
assurance that the Partnership will be able to retain its interest in the Local
Partnership.  The uncertainty about the continued ownership of the Partnership's
interest in the related Local Partnership does not impact the Partnership's
financial condition because the related purchase money note is nonrecourse and
secured solely by the Partnership's interest in the Local Partnership. 
Therefore, should the investment in Holiday Village Apartments not produce
sufficient value to satisfy the related purchase money note, the Partnership's
exposure to loss is limited since the amount of the nonrecourse indebtedness
exceeds the carrying amount of the investment in and advances to the Local
Partnership.  Thus, even a complete loss of this investment would not have a
material impact on the operations of the Partnership.

     The Managing General partner received $1,000 on January 5, 1996 for an
option to purchase the Partnership's limited partner interest in New Second
Lakewood Associates Limited Partnership (Second Lakewood) and an additional
$1,000 on May 3, 1996, to extend the term of the option.  Negotiations between
the Managing General Partner and the option holder continued following the
expiration of the option until November 1996, when they were terminated.  In
January 1997, the local managing general partner received an offer to purchase
the property from a third party, and a purchase agreement was signed effective
February 17, 1997.  The potential buyer commenced its due diligence review,
which was to expire on April 18, 1997.  The due diligence review period was
subsequently extended for seven days, thereby expiring on April 25, 1997. 
Deposits made by the potential buyer totalling $100,000 became non-refundable at
the expiration of the due diligence period, provided that Second Lakewood




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

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   (Unaudited)

2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

fulfills certain terms as set forth in the purchase agreement.  There is no
assurance that a sale of Second Lakewood will occur as the closing of the sale
is contingent upon the satisfactory fulfillment of certain terms as set forth in
the purchase agreement.

     In 1989, Second Lakewood was experiencing rent losses due to units being
taken off the market because of roof leakage. The Partnership advanced a total
of $750,000 during 1990 to fund roof replacement in order to maintain the
marketability and income of the property.  As of March 31, 1997 and December 31,
1996, the outstanding loan to Second Lakewood totalled $0 and $80,740,
respectively.  Accrued interest on the loan was $0 and $2,738 as of March 31,
1997 and December 31, 1996, respectively.

     Valley Vista Apartments (Valley Vista), a 124 unit high rise apartment
located in Syracuse, New York, filed a Notice of Intent to participate in the
LIHPRHA program with the U.S. Department of Housing and Urban Development (HUD)
in November 1992.  After a series of delays, Valley Vista was accepted into the
LIHPRHA program on September 2, 1993.  Due to unforseen delays in determining a
final property valuation, Valley Vista was removed from the Preservation Funding
Queue (a mechanism for allocating available LIHPRHA funds), and is currently
receiving special processing from the Buffalo, New York Office of HUD under the
newly created Capital Loan Program.  At this time, there is a possibility of
obtaining refinancing funds through the HUD Capital Loan Program in 1997.  In
addition, simultaneous with the proposed closing of new financing, the
Partnership intends to sell its limited partnership interest in Valley Vista for
consideration equal to its original investment in the Local Partnership, or
$910,000.  Accordingly, the Managing General Partner is currently negotiating
with the purchase money note holders with respect to a discounted pay-off in the
event refinancing funding for Valley Vista is obtained through the HUD Capital
Loan Program.  There is no assurance that refinancing and the sale of the
Partnership's interest in Valley Vista will occur, nor is there any assurance
that an agreement will be reached with the purchase money note holders.

     Some of the rental properties owned by the Local Partnerships have
mortgages which are federally insured under Section 236 or Section 221(d)(3)of
the National Housing Act, as amended.  LIHPRHA, which provided property owners
with restricted opportunities to sell low income housing, ended effective
September 30, 1996.  However, HUD received approximately $175 million to fund
sales of qualifying properties under the LIHPRHA program during the federal
government's fiscal year 1997, which began October 1, 1996.  Continued funding
of the LIHPRHA program after fiscal year 1997 is uncertain.  There is no
assurance that a sale of any properties that previously qualified under the
LIHPRHA program will occur.

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



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

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   (Unaudited)

2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

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 HUD pursuant to HAP contracts.  In 1995 and 1996, HUD released
its Reinvention Blueprint and a revision to its Reinvention Blueprint which
contained proposals that have come to be known as "Mark-to-Market".  Congress,
HUD and the Clinton Administration continue to struggle with the Mark-to-Market
initiative.  This initiative was intended to deal with HUD's increasing burden
of funding HAP contracts.  Under the initiative, HUD would eliminate the
project-based subsidy and provide the residents with "sticky vouchers" which
would allow residents to move to other developments should they so choose. 
However, with the elimination of the HAP contract, there is no assurance that
rental properties would be able to maintain the rental income and occupancy
levels necessary to pay operating costs and debt service.  The initiative will
impact those properties that have HAP contracts with shorter terms than that of
the underlying property mortgage.  For instance, some properties may have a 20-
year HAP contract while the underlying mortgage has a 40-year term.  In the
interim, Congress has authorized one-year extensions for properties with HAP
contracts expiring during the government's fiscal year 1997, which began October
1, 1996.  In light of recent political scrutiny of appropriations for HUD
programs, continued funding of annual renewals for Section 8 HAP contracts
expiring after fiscal year 1997 is uncertain.

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

     The following are combined statements of operations for the thirty-eight
and forty-three Local Partnerships in which the Partnership had invested as of
March 31, 1997 and 1996, respectively.  The 1996 statements contain information
on Clearfield Hills I and Village North through the date of sale.  The state-
ments are compiled from information supplied by the management agents of the
projects and are unaudited.











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

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   (Unaudited)

2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

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

                                                                                     For the three months ended
                                                                                              March 31,
                                                                                   -----------------------------
                                                                                       1997             1996
                                                                                   ------------     ------------
<S>                                                                                <C>              <C>
Revenue:
  Rental revenue                                                                   $  9,164,132     $  9,760,343
  Other                                                                                 571,085          559,381
                                                                                   ------------     ------------
                                                                                      9,735,217       10,319,724
                                                                                   ------------     ------------
Expenses:
  Operating                                                                           6,108,189        6,434,794
  Interest                                                                            1,886,103        1,992,980
  Depreciation and amortization                                                       1,907,005        2,019,041 
                                                                                   ------------     ------------
                                                                                      9,901,297       10,446,815
                                                                                   ------------     ------------
Net loss                                                                           $   (166,080)    $   (127,091)
                                                                                   ============     ============

</TABLE>

     As of March 31, 1997 and December 31, 1996, the Partnership's share of
cumulative losses of ten and eleven, respectively of the thirty-eight Local
Partnerships exceeds the amount of the Partnership's investments in and advances
to those Local Partnerships by $15,505,463 and $15,165,646, respectively. Since
the Partnership has no further obligation to advance funds or provide financing
to these Local Partnerships, the excess losses have not been reflected in the
accompanying consolidated financial statements.

3.   RELATED-PARTY TRANSACTIONS

     In accordance with the terms of the Partnership Agreement, the Partnership
is obligated to reimburse the Managing General Partner for its direct expenses
in managing the Partnership.  The Partnership paid $21,107 and $36,178 for the
three months ended March 31, 1997, respectively, as direct reimbursement of
expenses incurred on behalf of the Partnership.  Additionally, the Partnership
is obligated to pay 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, as discussed above, of $93,750 for
each of the three-month periods ended March 31, 1997 and 1996.

4.   CONTINGENCIES

     In 1990, CRI, as managing general partner of the Partnership and various
other entities, subcontracted certain property-level asset management functions
for certain properties to Capital Management Strategies, Inc. (CMS).  Among
these properties were properties owned by some of the Local Partnerships in

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

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   (Unaudited)


4.   CONTINGENCIES - Continued

which the Partnership invested.  CMS was formed by Martin C. Schwartzberg, a
nominal general partner of the Partnership and a former stockholder of CRI, when
he retired from CRI and its related businesses as of January 1, 1990.  Mr.
Schwartzberg agreed not to act as a general partner with respect to any of the
CRI-sponsored partnerships, including this Partnership, and has not done so
since that time.  In late 1995, a dispute arose between CRI and CMS over the
funding level of the 1996 contract for CMS.  On November 9, 1995, CRI filed a
complaint against CMS to determine the proper amount of fees to be paid in 1996
under the asset management agreement.  CMS answered on January 10, 1996, but
asserted no counterclaims.

     Thereafter, Mr. Schwartzberg launched a hostile consent solicitation to be
designated as managing general partner of approximately 125 private partnerships
sponsored by CRI.  On January 18, 1996, Mr. Schwartzberg and CMS filed a
complaint in the Circuit Court of Montgomery County, Maryland (the Circuit
Court), against CRI and Messrs. Dockser and Willoughby (who are general partners
of the Partnership) alleging, among other things, that CRI and Messrs. Dockser
and Willoughby breached the asset management agreement pursuant to which Mr.
Schwartzberg's company, CMS, agreed to perform limited functions related to
property-level issues for a portion of CRI's subsidized housing portfolio
(including some of the properties in which the Partnership invested), by
reducing the proposed budget for 1996.  The Partnership was not named as a
defendant in this action.  Messrs. Dockser and Willoughby entered an answer
denying all of Mr. Schwartzberg's claims.  On February 6, 1996, CRI terminated
the CMS contract for cause.  (CRI subsequently retained an independent asset
management company to perform functions previously performed by CMS.)  Mr.
Schwartzberg and CMS responded to the contract termination by filing a motion
for injunctive relief in the Circuit Court, asking the court to enjoin CRI from
terminating the contract.  In a ruling issued on February 12, 1996, the Circuit
Court, among other things, refused to grant the injunction requested by CMS.  On
February 12, 1996, the Circuit Court also issued a memorandum opinion and order
enjoining CMS and Mr. Schwartzberg from disclosing information made confidential
under the asset management agreement.

     Following subsequent litigation, none of which involved the Partnership, on
June 12, 1996, Mr. Schwartzberg, CRI and others entered an agreement (which
contemplates the execution of a subsequent definitive agreement) to resolve the
disputes between CRI and CMS.  The Partnership was not a signatory to the
agreement.  As part of the resolution, Mr. Schwartzberg withdrew any derogatory
statements he made about CRI and its principals.  Upon execution of the
definitive agreement, Mr. Schwartzberg shall withdraw as a General Partner of
this Partnership and his interest will become that of a Special Limited Partner.
As of April 25, 1997, CRI and Mr. Schwartzberg were unable to agree on the
language of various provisions of the definitive agreement and have agreed to
submit the open issues to arbitration.  The Partnership is not a party to the
arbitration proceeding.









                                      -10-
<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 contains information that may be considered forward looking.  This
information contains a number of risks and uncertainties, as discussed herein
and in the Partnership's Annual Report filed on Form 10-K, that could cause
actual results to differ materially.

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

     The Partnership's liquidity, with unrestricted cash resources of $8,996,606
(or approximately $118.73 per Additional Limited Partner unit) and $8,871,297
(or approximately $117.08 per Additional Limited Partner unit) as of March 31,
1997 and December 31, 1996, respectively, along with anticipated future cash
distributions from the Local Partnerships, is expected to meet its current and
anticipated operating cash needs.  As of March 31, 1997, $50,400 of cash
resources was restricted for future interest payments on one of the purchase
money notes.  On January 2, 1997 $535,410 of restricted cash resources was used
to retire the Partnership's remaining purchase money note obligation with
respect to the Forest Park property.  As of April 25, 1997, there were no
material commitments for capital expenditures.  

     The Partnership's obligations with respect to its investments in Local
Partnerships, in the form of purchase money notes having a principal balance of
$43,232,504 (exclusive of unamortized discount on purchase money notes of
$15,598,616) plus accrued interest of $80,757,966 as of March 31, 1997, 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.  Purchase money notes in
an aggregate principal amount of $1,370,000 matured in 1994 but have not been
paid, as discussed below.  Purchase money notes in an aggregate principal amount
of $1,330,000 mature on August 31, 1997, as discussed below.  Purchase money
notes originally due to mature on September 1, 1999, were retired at a discount
on January 2, 1997, in connection with the terms of an escrow agreement, as
discussed below.  The remaining purchase money notes mature from 1999 to 2025. 
The purchase money notes 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 Local Partnership.  The Managing General
Partner is continuing to investigate possible alternatives to reduce the
Partnership's long-term debt obligations.  These alternatives include, among
others, retaining the cash available for distribution to meet the purchase money
note requirements, buying out certain purchase money notes at a discounted
price, extending the due dates of certain purchase money notes, or refinancing
the respective properties' underlying debt and using the Partnership's share of
the proceeds to pay off or buy down certain purchase money note obligations.

     Purchase money notes plus accrued interest relating to Redden Development
Company (Redden Gardens) in the principal amount of $1,330,000 mature on August
31, 1997.  The Managing General Partner anticipates proposing a five year
extension.  There is no assurance that the Managing General Partner will reach
an agreement of any kind with the noteholders.  Accordingly, there can be no
assurance that the Partnership will be able to retain its interest in the Local

                                      -11-
<PAGE>
PART I.   FINANCIAL INFORMATION
          ---------------------
ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
          -------------------------------------------------
              CONDITION AND RESULTS OF OPERATIONS - Continued
              -----------------------------------

Partnership.  The uncertainty about the continued ownership of the Partnership's
interest in the related Local Partnership does not impact the Partnership's
financial condition because the related purchase money note is nonrecourse and
secured solely by the Partnership's interest in the Local Partnership. 
Therefore, should the investment in Redden Gardens not produce sufficient value
to satisfy the purchase money note related to Redden Gardens, the Partnership's
exposure to loss is limited since the amount of the nonrecourse indebtedness
exceeds the carrying amount of the investment in and advances to the Local
Partnership.  Thus, even a complete loss of this investment would not have a
material impact on the operations of the Partnership.

     On May 22, 1992, Clearfield Hills I Limited Partnership (Clearfield Hills
I) filed a notice of intent to participate under the Low Income Housing
Preservation and Resident Homeownership Act of 1990 (LIHPRHA).  The sale of the
property was completed on February 6, 1996.  The sale price of approximately
$3.2 million generated sufficient proceeds to the Partnership to retire, at a
discount, the purchase money note obligation of the Partnership with respect to
such property, which matured on October 30, 1994.  The sale provided proceeds to
the Partnership in excess of its investment in the Local Partnership, and
resulted in a net financial statement gain in 1996 of approximately $1.8
million, of which approximately $50,000 resulted from the retirement of the
purchase money note obligation with respect to the property.  The federal tax
gain was approximately $2.4 million.  The Managing General Partner and/or its
affiliates did not receive any fees for services relating to the sale.

     On March 1, 1994, New Village Apartments North (Village North) filed a
notice of intent to participate under the LIHPRHA program.  The sale of the
property was completed on February 6, 1996.  The sale price of approximately
$2.86 million generated sufficient proceeds to the Partnership to retire, at a
discount, the purchase money note obligation of the Partnership with respect to
such property, which matured on September 27, 1994.  The sale provided proceeds
to the Partnership in excess of its investment in the Local Partnership, and
resulted in a net financial statement gain in 1996 of approximately $2.6
million, of which approximately $1.5 million resulted from the retirement of the
purchase money note obligation with respect to the property.  The federal tax
gain was approximately $3.3 million.  The Managing General Partner and/or its
affiliates did not receive any fees for services relating to the sale.

     On September 19, 1996, the local general partner of New Forest Park
Associates Limited Partnership (Forest Park) sold the property under the LIHPRHA
program.  In connection with the sale of Forest Park, the Partnership purchased
a certificate of deposit in the principal amount of $531,100 which was held in
escrow until January 2, 1997, at which time all principal and interest accrued
thereon up to three percent per annum was used to retire the Partnership's
remaining purchase money note obligation with respect to Forest Park.  All
interest that accrued on the certificate of deposit in excess of three percent
per annum was received by the Partnership.  Accordingly, the accompanying
financial statements include $535,410 of restricted cash equivalents as of
December 31, 1996, which represents the remaining principal and interest which
was paid on January 2, 1997, in accordance with the escrow agreement.

     The Partnership defaulted on its purchase money note relating to Holiday
Village Apartments on July 27, 1994 when the note matured and was not paid.  The
defaulted amount included principal and accrued interest of $1,370,000 and
$2,862,342, respectively.  As of April 30, 1997, principal and accrued interest
totalling $1,370,000 and $5,081,276, respectively, were due.  In June 1994, an

                                      -12-
<PAGE>
PART I.   FINANCIAL INFORMATION
          ---------------------
ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
          -------------------------------------------------
              CONDITION AND RESULTS OF OPERATIONS - Continued
              -----------------------------------

offer was made to extend the maturity date of this note to coincide with the
potential refinancing of the first mortgage.  There is no assurance that a
refinancing of the first mortgage will be obtained.  The Managing General
Partner and the noteholder continue to negotiate settlement options, and as of
April 30, 1997, negotiations between the Managing General Partner and the
noteholder were ongoing.  There is no assurance that an agreement will be
reached.  Should the noteholder begin foreclosure proceedings on the
Partnership's interest in the related Local Partnership, the Partnership intends
to vigorously defend any action by the noteholder.  However, there is no
assurance that the Partnership will be able to retain its interest in the Local
Partnership.  The uncertainty about the continued ownership of the Partnership's
interest in the related Local Partnership does not impact the Partnership's
financial condition because the related purchase money note is nonrecourse and
secured solely by the Partnership's interest in the Local Partnership. 
Therefore, should the investment in Holiday Village Apartments not produce
sufficient value to satisfy the related purchase money note, the Partnership's
exposure to loss is limited since the amount of the nonrecourse indebtedness
exceeds the carrying amount of the investment in and advances to the Local
Partnership.  Thus, even a complete loss of this investment would not have a
material impact on the operations of the Partnership.

     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 months ended March 31, 1997, the receipt of distributions from
Local Partnerships was adequate to support operating cash requirements and the
pay-off of the remaining Forest Park purchase money note obligation, as
discussed above.  Cash and cash equivalents increased for the three months ended
March 31, 1997 primarily due to cash flow distributions and repayment of
advances to partnerships received by the Partnership from the Local Partnerships
during the period then ended.

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

     The Partnership's net income for the three months ended March 31, 1997
decreased from the corresponding period in 1996 primarily due to the gain on
disposition of investment in partnerships and extraordinary gain on
extinguishment of debt recognized by the Partnership during 1996 related to the
sales of Clearfield Hills I and Village North.  Contributing to the decrease in
the Partnership's net income was a decrease in interest income due to the
receipt of surplus cash distributions during 1996 from one former Limited
Partnership which had been sold in 1995, and a decrease in share of income from
partnerships principally due to increased utilities, operating and maintenance
costs at one property.  Partially offsetting the decrease in the Partnership's
net income was a decrease in interest expense due to the pay-off of purchase
money notes related to five properties during 1996.

     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 the Partnership has no further obligation
to advance funds or provide financing to the Local Partnerships.  As a result,
the Partnership's recognized losses for the three months ended March 31, 1997
did not include losses of $339,817 compared to excluded losses of $330,959 for
the three months ended March 31, 1996.



                                      -13-
<PAGE>
PART I.   FINANCIAL INFORMATION
          ---------------------
ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
          -------------------------------------------------
              CONDITION AND RESULTS OF OPERATIONS - Continued
              -----------------------------------

     The Managing General partner received $1,000 on January 5, 1996 for an
option to purchase the Partnership's limited partner interest in New Second
Lakewood Associates Limited Partnership (Second Lakewood) and an additional
$1,000 on May 3, 1996, to extend the term of the option.  Negotiations between
the Managing General Partner and the option holder continued following the
expiration of the option until November 1996, when they were terminated.  In
January 1997, the local managing general partner received an offer to purchase
the property from a third party, and a purchase agreement was signed effective
February 17, 1997.  The potential buyer commenced its due diligence review,
which was to expire on April 18, 1997.  The due diligence review period was
subsequently extended for seven days, thereby expiring on April 25, 1997. 
Deposits made by the potential buyer totalling $100,000 became non-refundable at
the expiration of the due diligence period, provided that Second Lakewood
fulfills certain terms as set forth in the purchase agreement.  There is no
assurance that a sale of Second Lakewood will occur as the closing of the sale
is contingent upon the satisfactory fulfillment of certain terms as set forth in
the purchase agreement.

     In 1989, Second Lakewood was experiencing rent losses due to units being
taken off the market because of roof leakage. The Partnership advanced a total
of $750,000 during 1990 to fund roof replacement in order to maintain the
marketability and income of the property.  As of March 31, 1997 and December 31,
1996, the outstanding loan to Second Lakewood totalled $0 and $80,740,
respectively.  Accrued interest on the loan was $0 and $2,738 as of March 31,
1997 and December 31, 1996, respectively.

     Valley Vista Apartments (Valley Vista), a 124 unit high rise apartment
located in Syracuse, New York, filed a Notice of Intent to participate in the
LIHPRHA program with the U.S. Department of Housing and Urban Development (HUD)
in November 1992.  After a series of delays, Valley Vista was accepted into the
LIHPRHA program on September 2, 1993.  Due to unforseen delays in determining a
final property valuation, Valley Vista was removed from the Preservation Funding
Queue (a mechanism for allocating available LIHPRHA funds), and is currently
receiving special processing from the Buffalo, New York Office of HUD under the
newly created Capital Loan Program.  At this time, there is a possibility of
obtaining refinancing funds through the HUD Capital Loan Program in 1997.  In
addition, simultaneous with the proposed closing of new financing, the
Partnership intends to sell its limited partnership interest in Valley Vista for
consideration equal to its original investment in the Local Partnership, or
$910,000.  Accordingly, the Managing General Partner is currently negotiating
with the purchase money note holders with respect to a discounted pay-off in the
event refinancing funding for Valley Vista is obtained through the HUD Capital
Loan Program.  There is no assurance that refinancing and the sale of the
Partnership's interest in Valley Vista will occur, nor is there any assurance
that an agreement will be reached with the purchase money note holders.

     Some of the rental properties owned by the Local Partnerships have
mortgages which are federally insured under Section 236 or Section 221(d)(3)of
the National Housing Act, as amended.  LIHPRHA, which provided property owners
with restricted opportunities to sell low income housing, ended effective
September 30, 1996.  However, HUD received approximately $175 million to fund
sales of qualifying properties under the LIHPRHA program during the federal
government's fiscal year 1997, which began October 1, 1996.  Continued funding
of the LIHPRHA program after fiscal year 1997 is uncertain.  There is no
assurance that a sale of any properties that previously qualified under the
LIHPRHA program will occur.

                                      -14-
<PAGE>
PART I.   FINANCIAL INFORMATION
          ---------------------
ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
          -------------------------------------------------
              CONDITION AND RESULTS OF OPERATIONS - Continued
              -----------------------------------

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

     Some of the rental properties owned by the Local Partnerships are dependent
on the receipt of project-based Section 8 Rental Housing Assistance Payments
(HAP) provided by HUD pursuant to HAP contracts.  In 1995 and 1996, HUD released
its Reinvention Blueprint and a revision to its Reinvention Blueprint which
contained proposals that have come to be known as "Mark-to-Market".  Congress,
HUD and the Clinton Administration continue to struggle with the Mark-to-Market
initiative.  This initiative was intended to deal with HUD's increasing burden
of funding HAP contracts.  Under the initiative, HUD would eliminate the
project-based subsidy and provide the residents with "sticky vouchers" which
would allow residents to move to other developments should they so choose. 
However, with the elimination of the HAP contract, there is no assurance that
rental properties would be able to maintain the rental income and occupancy
levels necessary to pay operating costs and debt service.  The initiative will
impact those properties that have HAP contracts with shorter terms than that of
the underlying property mortgage.  For instance, some properties may have a 20-
year HAP contract while the underlying mortgage has a 40-year term.  In the
interim, Congress has authorized one-year extensions for properties with HAP
contracts expiring during the government's fiscal year 1997, which began October
1, 1996.  In light of recent political scrutiny of appropriations for HUD
programs, continued funding of annual renewals for Section 8 HAP contracts
expiring after fiscal year 1997 is uncertain.

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

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

                                     General
                                     -------

     In 1990, CRI, as managing general partner of the Partnership and various
other entities, subcontracted certain property-level asset management functions

                                      -15-
<PAGE>
PART I.   FINANCIAL INFORMATION
          ---------------------
ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
          -------------------------------------------------
              CONDITION AND RESULTS OF OPERATIONS - Continued
              -----------------------------------

for certain properties to Capital Management Strategies, Inc. (CMS).  Among
these properties were properties owned by some of the Local Partnerships in
which the Partnership invested.  CMS was formed by Martin C. Schwartzberg, a
nominal general partner of the Partnership and a former stockholder of CRI, when
he retired from CRI and its related businesses as of January 1, 1990.  Mr.
Schwartzberg agreed not to act as a general partner with respect to any of the
CRI-sponsored partnerships, including this Partnership, and has not done so
since that time.  In late 1995, a dispute arose between CRI and CMS over the
funding level of the 1996 contract for CMS.  On November 9, 1995, CRI filed a
complaint against CMS to determine the proper amount of fees to be paid in 1996
under the asset management agreement.  CMS answered on January 10, 1996, but
asserted no counterclaims.

     Thereafter, Mr. Schwartzberg launched a hostile consent solicitation to be
designated as managing general partner of approximately 125 private partnerships
sponsored by CRI.  On January 18, 1996, Mr. Schwartzberg and CMS filed a
complaint in the Circuit Court of Montgomery County, Maryland (the Circuit
Court), against CRI and Messrs. Dockser and Willoughby (who are general partners
of the Partnership) alleging, among other things, that CRI and Messrs. Dockser
and Willoughby breached the asset management agreement pursuant to which Mr.
Schwartzberg's company, CMS, agreed to perform limited functions related to
property-level issues for a portion of CRI's subsidized housing portfolio
(including some of the properties in which the Partnership invested), by
reducing the proposed budget for 1996.  The Partnership was not named as a
defendant in this action.  Messrs. Dockser and Willoughby entered an answer
denying all of Mr. Schwartzberg's claims.  On February 6, 1996, CRI terminated
the CMS contract for cause.  (CRI subsequently retained an independent asset
management company to perform functions previously performed by CMS.)  Mr.
Schwartzberg and CMS responded to the contract termination by filing a motion
for injunctive relief in the Circuit Court, asking the court to enjoin CRI from
terminating the contract.  In a ruling issued on February 12, 1996, the Circuit
Court, among other things, refused to grant the injunction requested by CMS.  On
February 12, 1996, the Circuit Court also issued a memorandum opinion and order
enjoining CMS and Mr. Schwartzberg from disclosing information made confidential
under the asset management agreement.

     Following subsequent litigation, none of which involved the Partnership, on
June 12, 1996, Mr. Schwartzberg, CRI and others entered an agreement (which
contemplates the execution of a subsequent definitive agreement) to resolve the
disputes between CRI and CMS.  The Partnership was not a signatory to the
agreement.  As part of the resolution, Mr. Schwartzberg withdrew any derogatory
statements he made about CRI and its principals.  Upon execution of the
definitive agreement, Mr. Schwartzberg shall withdraw as a General Partner of
this Partnership and his interest will become that of a Special Limited Partner.
As of April 25, 1997, CRI and Mr. Schwartzberg were unable to agree on the
language of various provisions of the definitive agreement and have agreed to
submit the open issues to arbitration.  The Partnership is not a party to the
arbitration proceeding.









                                      -16-
<PAGE>
PART II.  OTHER INFORMATION
          -----------------
ITEM 3.   DEFAULTS UPON SENIOR SECURITIES
          -------------------------------

     The Partnership defaulted on its purchase money note relating to Holiday
Village Apartments on July 27, 1994 when the note matured and was not paid.  The
defaulted amount included principal and accrued interest of $1,370,000 and
$2,862,342, respectively.  As of April 30, 1997, principal and accrued interest
totalling $1,370,000 and $5,081,276, respectively, were due.  In June 1994, an
offer was made to extend the maturity date of this note to coincide with the
potential refinancing of the first mortgage.  There is no assurance that a
refinancing of the first mortgage will be obtained.  The Managing General
Partner and the noteholder continue to negotiate settlement options, and as of
April 30, 1997, negotiations between the Managing General Partner and the
noteholder were ongoing.  There is no assurance that an agreement will be
reached.  Should the noteholder begin foreclosure proceedings on the
Partnership's interest in the related Local Partnership, the Partnership intends
to vigorously defend any action by the noteholder.  However, there is no
assurance that the Partnership will be able to retain its interest in the Local
Partnership.  The uncertainty about the continued ownership of the Partnership's
interest in the related Local Partnership does not impact the Partnership's
financial condition because the related purchase money note is nonrecourse and
secured solely by the Partnership's interest in the Local Partnership. 
Therefore, should the investment in Holiday Village Apartments not produce
sufficient value to satisfy the related purchase money note, the Partnership's
exposure to loss is limited since the amount of the nonrecourse indebtedness
exceeds the carrying amount of the investment in and advances to the Local
Partnership.  Thus, even a complete loss of this investment would not have a
material impact on the operations of the Partnership.

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K
          --------------------------------

     No reports on Form 8-K were filed with the Commission during the quarter
ended March 31, 1997.

     All other items are not applicable.


























                                      -17-
<PAGE>
                                    SIGNATURE


     Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, Registrant has duly 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


April 30, 1997                By:  /s/ Susan R. Campbell
--------------------               ---------------------------------
Date                               Susan R. Campbell
                                   Senior Vice President



                                   Signing on behalf of the
                                     Registrant and as Acting
                                     Chief Accounting Officer,
                                     Principal Financial and
                                     Principal Accounting Officer



































                                      -18-
<PAGE>


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


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

27        Financial Data Schedule         Filed herewith electronically






















































                                      -19-