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                                  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 March 31, 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 MARCH 31, 2009


                                                                           Page

Part I - FINANCIAL INFORMATION

Item 1.  Financial Statements

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

         Consolidated Statements of Operations and Accumulated Losses
           - for the three months ended March 31, 2009 and 2008............. 2

         Consolidated Statements of Cash Flows
           - for the three months ended March 31, 2009 and 2008............. 3

         Notes to Consolidated Financial Statements
           - March 31, 2009 and 2008........................................ 4

Item 2.  Management's Discussion and Analysis of Financial Condition
           and Results of Operations........................................ 13

Item 4.  Controls and Procedures............................................ 17


PART II - OTHER INFORMATION

Item 3.  Defaults Upon Senior Securities.................................... 17

Item 5.  Other Information.................................................. 17

Item 6.  Exhibits........................................................... 18

Signature................................................................... 19


<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,
                                                                                          2009            2008
                                                                                      ------------    ------------
                                                                                       (Unaudited)
<S>                                                                                   <C>             <C>
Investments in partnerships .......................................................   $  2,768,587    $  2,743,115
Investment in partnerships held for sale or transfer ..............................         35,293       3,163,336
Cash and cash equivalents .........................................................      7,717,021       7,975,361
Acquisition fees, principally paid to related parties,
  net of accumulated amortization of $58,848 and $58,242, respectively ............         37,964          38,570
Property purchase costs,
  net of accumulated amortization of $68,253 and $67,597, respectively ............         36,611          37,267
Other assets ......................................................................          2,225           8,313
                                                                                      ------------    ------------

      Total assets ................................................................   $ 10,597,701    $ 13,965,962
                                                                                      ============    ============



                                                  LIABILITIES AND PARTNERS' DEFICIT


Due on investments in partnerships ................................................   $  2,790,000    $  5,885,000
Accrued interest payable ..........................................................     10,747,277      19,565,411
Accounts payable and accrued expenses .............................................        347,287         115,752
Distribution payable ..............................................................      1,857,597            --
                                                                                      ------------    ------------

      Total liabilities ...........................................................     15,742,161      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 .........................................    (21,018,814)    (19,161,217)
    Offering costs ................................................................     (7,562,894)     (7,562,894)
    Accumulated losses ............................................................    (50,066,252)    (58,379,590)
                                                                                      ------------    ------------

      Total partners' deficit .....................................................     (5,144,460)    (11,600,201)
                                                                                      ------------    ------------

      Total liabilities and partners' deficit .....................................   $ 10,597,701    $ 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)

                                           For the three months ended
                                                    March 31,
                                          ----------------------------
                                             2009            2008
                                          ------------    ------------
Share of income from partnerships .....   $     25,472    $     68,971
                                          ------------    ------------

Other revenue and  expenses:

  Revenue:
    Gain on extinguishment of debt ....      8,957,777            --
    Interest ..........................         14,458          77,838
                                          ------------    ------------

                                             8,972,235          77,838
                                          ------------    ------------

  Expenses:
    General and administrative ........        378,256          94,378
    Interest ..........................        160,508         877,868
    Management fee ....................         93,750          93,750
    Professional fees .................         38,415          51,168
    Amortization of deferred costs ....         13,440           2,101
                                          ------------    ------------

                                               684,369       1,119,265
                                          ------------    ------------

      Total other revenue and expenses       8,287,866      (1,041,427)
                                          ------------    ------------


Net income (loss) .....................      8,313,338        (972,456)

Accumulated losses, beginning of period    (58,379,590)    (84,864,299)
                                          ------------    ------------

Accumulated losses, end of period .....   $(50,066,252)   $(85,836,755)
                                          ============    ============


Net income (loss) allocated
  to General Partners (1.51%) .........   $    125,531    $    (14,684)
                                          ============    ============

Net income (loss) allocated
  to Initial and Special
  Limited Partners (1.49%) ............   $    123,869    $    (14,490)
                                          ============    ============

Net income (loss) allocated
  to Additional Limited Partners (97%)    $  8,063,938    $   (943,282)
                                          ============    ============

Net income (loss) per unit of
  Additional Limited Partner Interest,
    based on 73,337 units outstanding .   $     109.96    $     (12.86)
                                          ============    ============


                   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,
                                                                             ---------------------------
                                                                                 2009           2008
                                                                             -----------    -----------
<S>                                                                          <C>            <C>
Cash flows from operating activities:
  Net income (loss) ......................................................   $ 8,313,338    $  (972,456)

  Adjustments to reconcile net income (loss) to net cash used in operating
    activities:
    Share of income from partnerships ....................................       (25,472)       (68,971)
    Amortization of deferred costs .......................................        13,440          2,101
    Gain on extinguishment of debt .......................................    (8,957,777)          --

    Changes in assets and liabilities:
      Decrease in other assets ...........................................         6,088         10,205
      Increase in accrued interest payable ...............................       160,508        877,868
      Increase in accounts payable and accrued expenses ..................       231,535         18,263
                                                                             -----------    -----------

        Net cash used in operating activities ............................      (258,340)      (132,990)
                                                                             -----------    -----------


Net decrease in cash and cash equivalents ................................      (258,340)      (132,990)

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

Cash and cash equivalents, end of period .................................   $ 7,717,021    $ 7,913,609
                                                                             ===========    ===========

</TABLE>

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

                                       -3-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 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 March 31,  2009,  and the  results of its
operations  and its cash flows for the three month  periods ended March 31, 2009
and 2008. The results of operations for the interim period ended March 31, 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.   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
$10,747,277  as of March 31, 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

     The purchase money notes related to the following  properties  have matured
and have not been paid or extended as of May 13, 2009.

                                             Accrued Interest
                                                  as of
     Property                 Principal       March 31, 2009        Maturity
     --------                -----------      --------------        --------

     Westport Village (1)    $  840,000         $2,730,165          09/01/99
     Pilgrim Tower East       1,450,000 (2)      4,747,892          11/30/03


                                       -4-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2009 and 2008

                                   (Unaudited)


2.   INVESTMENTS IN PARTNERSHIPS - Continued

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

     The remaining  purchase  money note related to  Northridge  Park matures in
2025.  As of March 31,  2009,  principal  and  accrued  interest  balances  were
$500,000 and $3,269,220, respectively.

     As  of  March  31,  2009,   Westport  Village  is  in   receivership.   The
Partnership's  non-recourse  purchase money notes and accrued  interest  totaled
$840,000 and $2,730,165,  respectively at March 31, 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
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

                                       -5-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2009 and 2008

                                   (Unaudited)


2.   INVESTMENTS IN PARTNERSHIPS - Continued

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 March 31, 2009, the two
Local Partnerships with associated  purchase money notes which have matured,  or
which mature through March 31, 2010, and which remain unpaid or unextended as of
May 13, 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
month  periods  ended  March  31,  2009 and 2008,  was  $160,508  and  $877,868,
respectively.  The  accrued  interest  payable on the  purchase  money  notes of
$10,747,277  and  $19,565,411  as of March  31,  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 partnership's  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 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 sale 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.

                                       -6-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2009 and 2008

                                   (Unaudited)


2.   INVESTMENTS IN PARTNERSHIPS - Continued

     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
May  13,  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
May 13, 2009,  principal  and accrued  interest of  $1,450,000  and  $4,772,976,
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  March  31,  2009  and  December  31,  2008,
respectively,  has been reclassified to investment in partnerships held for sale
or transfer in the accompanying consolidated balance sheets.

                                 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

                                       -7-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2009 and 2008

                                   (Unaudited)


2.   INVESTMENTS IN PARTNERSHIPS - Continued

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  sale
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 May 13, 2009,
principal and accrued  interest of $840,000 and $2,743,470,  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.

     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 March 31, 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 $2,730,165,  respectively,
at March 31, 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 March 31, 2009 and December
31, 2008, 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

                             March 31, 2009 and 2008

                                   (Unaudited)


2.   INVESTMENTS IN PARTNERSHIPS - Continued

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  has been 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 both March 31, 2009 and
December 31, 2008, has been  reclassified to investment in partnerships held for
sale or transfer in the accompanying  consolidated  balance sheets.  There is no
assurance that a sale will occur.

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

     On May 7, 2008,  the Local  Managing  General  Partner signed a contract to
sell the property related to Madison Square,  Ltd.  Dividend Housing  Associates
(Madison  Square) to a  non-profit.  The  potential  purchaser  of the  property
defaulted  on  the  contract.   Therefore,   effective   March  31,  2009,   the
Partnership's  basis in the Local  Partnership  which had been  reclassified  to
investment  in  partnerships  held  for sale or  transfer  was  returned  to the
respective operating accounts.

     Due to the  impending  sale of the property  owned by Madison  Square,  the
Partnership's  basis in the Local Partnership,  which totaled $0 at December 31,
2008,  had  been  reclassified  to  asset  held  for  sale  or  transfer  in the
accompanying consolidated balance sheet at that date.

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

     See Note 2.a., above.

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

     See Note 2.a., above.

                                       -9-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2009 and 2008

                                   (Unaudited)


2.   INVESTMENTS IN PARTNERSHIPS - Continued

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

     Combined   statements  of  operations   for  the  eight  and  eleven  Local
Partnerships  in which the  Partnership  was  invested  as of March 31, 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
                                                                        March 31,
                                              ------------------------------------------------------------
                                                         2009                             2008
                                              -------------------------        ---------------------------
                                                Equity                           Equity
                                                Method        Suspended          Method         Suspended
                                              ----------      ----------       ----------       ----------
     <S>                                      <C>             <C>              <C>              <C>
     Number of Local Partnerships                 2               6                 4               7
                                                  =               =                 =               =

     Revenue:
       Rental                                 $  362,098      $1,799,944       $  852,851       $2,297,216
       Other                                      29,866          82,808           89,711          151,279
                                              ----------      ----------       ----------       ----------

         Total revenue                           391,964       1,882,752          942,562        2,448,495
                                              ----------      ----------       ----------       ----------

     Expenses:
       Operating                                 278,656       1,143,425          712,978        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                          366,231       1,920,848          872,887        2,789,901
                                              ----------      ----------       ----------       ----------

     Net income (loss)                        $   25,733      $  (38,096)      $   69,675       $ (341,406)
                                              ==========      ==========       ==========       ==========

     Partnership's share of Local
       Partnership net income                     25,472              --           68,971              --
                                              --------------------------       --------------------------

     Share of income from partnerships                 $25,472                          $68,971
                                                       =======                          =======
</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 March 31, 2009 and
2008, the Partnership's  share of cumulative losses to date for six of the eight

                                      -10-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2009 and 2008

                                   (Unaudited)


2.   INVESTMENTS IN PARTNERSHIPS - Continued

and seven of the eleven Local Partnerships, respectively, exceeded the amount of
the  Partnership's  investments  in those Local  Partnerships  by $6,850,694 and
$12,741,643,  respectively.  As the  Partnership  has no further  obligation  to
advance  funds or provide  financing  to these  Local  Partnerships,  the excess
losses  have not  been  reflected  in the  accompanying  consolidated  financial
statements.


3.   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. For the three month
periods ended March 31, 2009 and 2008 the Partnership  paid $66,358 and $52,866,
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 March 31, 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.


4.   CASH CONCENTRATION RISK

     Financial   instruments  that   potentially   subject  the  Partnership  to
concentrations of risk consist primarily of cash. The Partnership maintains five
cash accounts.  As of March 31, 2009, the uninsured portion of the cash balances
was $7,892,094.


                           Number of    Bank Balance    Insured      Uninsured
        Bank               Accounts       03/31/09      03/31/09      03/31/09
----------------------     --------     ------------    --------     ----------

Dreyfus Inst Preferred
  Money Market Fund            1        $7,682,000      $0           $7,682,000

Dreyfus Inst Preferred
  Prime Shares                 1        $209,319        $0           $209,319

SunTrust Bank                  3        $18,653         $17,878      $775


                                      -11-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 2009 and 2008

                                   (Unaudited)


5.   CASH DISTRIBUTIONS

     On May 17,  2009,  the  Partnership  will  declare 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 April 2009,  $590,097 was paid to the State of New
Jersey for non-resident withholding tax.

                                      # # #

                                      -12-

<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.

                          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 seven  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.

     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.

                                      -13-

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


     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 March 31, 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 May 13, 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
$5,859,424,  net of the  distribution  payable as of March 31, 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 May 13,
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
$10,747,277  as of March 31, 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


     The purchase money notes related to the following  properties  have matured
and have not been paid or extended as of May 13, 2009.

                                              Accrued Interest
                                                   as of
     Property                  Principal      March 31, 2009     Maturity
     --------                 -----------     --------------     --------

     Westport Village (1)     $  840,000        $2,730,165       09/01/99
     Pilgrim Tower East        1,450,000 (2)     4,747,892       11/30/03

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


                                      -14-

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


     The remaining  purchase  money note related to  Northridge  Park matures in
2025.  As of March 31,  2009,  principal  and  accrued  interest  balances  were
$500,000 and $3,269,220, respectively.

     As  of  March  31,  2009,   Westport  Village  is  in   receivership.   The
Partnership's  non-recourse  purchase money notes and accrued  interest  totaled
$840,000 and $2,730,165,  respectively at March 31, 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
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 March 31, 2009, the two
Local Partnerships with associated  purchase money notes which have matured,  or
which mature through March 31, 2010, and which remain unpaid or unextended as of
May 13, 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.

                                      -15-

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


                            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 three month period ended March 31, 2009,  existing cash  resources  were
adequate  to support  operating  cash  requirements.  Cash and cash  equivalents
decreased  $258,340  during the three month period ended March 31, 2009,  due to
operating expenses paid in cash

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

     The  Partnership  recognized  net income for the three month  period  ended
March 31, 2009, compared to net loss in 2008, primarily due to increased gain on
extinguishment of debt and a decrease in interest  expense,  both related to the
transfer of the  Partnership's  interests  in Cedar Point and  Thornwood  House,
partially offset by decreases in share of income from  partnerships and interest
revenue and increased general and administrative  expenses. Share of income from
partnerships decreased primarily due to lower rental income and higher operating
expenses at one property. Interest revenue decreased due to lower interest rates
in 2009.  General and administrative  expenses increased  primarily due to taxes
payable and higher reimbursed payroll costs.

     For financial reporting purposes, the Partnership,  as a limited partner in
the Local  Partnerships,  does not record losses from the Local  Partnerships in
excess of its  investment  to the  extent  that the  Partnership  has no further
obligation to advance funds or provide financing to the Local Partnerships. As a
result, the Partnership's  share of income from partnerships for the three month
periods  ended March 31, 2009 and 2008 did not  include  losses of $139,340  and
$440,635, respectively.

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

                                      -16-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 4. Controls and Procedures


     In April  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 March 31, 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.


Part II. OTHER INFORMATION
Item 3. Defaults upon Senior Securities

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


Item 5. Other Information

     There has not been any information  required to be disclosed in a report on
Form 8-K during the quarter ended March 31, 2009,  but not reported,  whether or
not otherwise required by this Form 10-Q at March 31, 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  will  declare 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 April 2009,  $590,097 was paid to the State of New
Jersey for non-resident withholding tax.


                                      -17-

<PAGE>
Part II. OTHER INFORMATION
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.

                                      -18-

<PAGE>
                                    SIGNATURE

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


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

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




May 13, 2009                           by:  /s/ H. William Willoughby
------------                                ------------------------------------
DATE                                        H. William Willoughby,
                                            Director, President, Secretary,
                                              Principal Financial Officer and
                                              Principal Accounting Officer





                                      -19-