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


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



                                   FORM 10-QSB


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



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

                  For the quarterly period ended June 30, 2003


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                         Commission file number 0-13523

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


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



        Internal Revenue Service - Employer Identification No. 52-1328767

                 11200 Rockville Pike, Rockville, Maryland 20852

                                 (301) 468-9200


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





Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the  registrant  was required to file such reports) and (2) has been
subject to such filing requirements for the past 90 days. Yes |X| No o






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

                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                              INDEX TO FORM 10-QSB

                       FOR THE QUARTER ENDED JUNE 30, 2003




                                                                          Page

Part I - FINANCIAL INFORMATION

Item 1.  Financial Statements

         Consolidated Balance Sheets
           - June 30, 2003 and December 31, 2002...........................  1

         Consolidated Statements of Operations and Accumulated Losses
           - for the three and six months ended June 30, 2003 and 2002.....  2

         Consolidated Statements of Cash Flows
           - for the six months ended June 30, 2003 and 2002...............  3

         Notes to Consolidated Financial Statements
           - June 30, 2003 and 2002........................................  4

Item 2.  Management's Discussion and Analysis of Financial Condition
           and Results of Operations....................................... 18

Item 3.  Controls and Procedures........................................... 22


PART II - OTHER INFORMATION

Item 3.  Defaults Upon Senior Securities................................... 23

Item 5.  Other Information................................................. 23

Item 6.  Exhibits and Reports on Form 8-K.................................. 23

Signature.................................................................. 24

Certifications of Quarterly Report Pursuant to 18 U.S.C. Section 1350...... 25




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

                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                           CONSOLIDATED BALANCE SHEETS



                                     ASSETS

<TABLE>
<CAPTION>
                                                                                        June 30,       December 31,
                                                                                          2003             2002
                                                                                      -------------    -------------
                                                                                       (Unaudited)
<S>                                                                                   <C>              <C>
Investments in and advances to partnerships .......................................   $   7,423,691    $  12,763,288
Investment in partnerships held for sale or transfer ..............................       7,901,830        3,037,231
Investment in partnerships held in escrow .........................................         120,550        3,006,602
Cash and cash equivalents .........................................................       4,597,205        4,862,869
Acquisition fees, principally paid to related parties,
  net of accumulated amortization of $209,035 and $217,097, respectively ..........         236,496          259,342
Property purchase costs,
  net of accumulated amortization of $162,263 and $164,138, respectively ..........         176,394          188,018
Other assets ......................................................................              75              113
                                                                                      -------------    -------------

      Total assets ................................................................   $  20,456,241    $  24,117,463
                                                                                      =============    =============



                        LIABILITIES AND PARTNERS' DEFICIT


Due on investments in partnerships ................................................   $  18,160,081    $  22,955,081
Accrued interest payable ..........................................................      77,398,195       94,373,145
Accounts payable and accrued expenses .............................................         131,809          161,982
                                                                                      -------------    -------------

      Total liabilities ...........................................................      95,690,085      117,490,208
                                                                                      -------------    -------------

Commitments and contingencies

Partners' deficit:

  Capital paid in:
    General Partners ..............................................................           2,000            2,000
    Limited Partners ..............................................................      73,501,500       73,501,500
                                                                                      -------------    -------------

                                                                                         73,503,500       73,503,500

  Less:
    Accumulated distributions to partners .........................................      (9,746,963)      (9,746,963)
    Offering costs ................................................................      (7,562,894)      (7,562,894)
    Accumulated losses ............................................................    (131,427,487)    (149,566,388)
                                                                                      -------------    -------------

      Total partners' deficit .....................................................     (75,233,844)     (93,372,745)
                                                                                      -------------    -------------

      Total liabilities and partners' deficit .....................................   $  20,456,241    $  24,117,463
                                                                                      =============    =============
</TABLE>
                          The accompanying notes are an
                       integral part of these consolidated
                              financial statements.

                                       -1-

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


                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                      CONSOLIDATED STATEMENTS OF OPERATIONS

                             AND ACCUMULATED LOSSES

                                   (Unaudited)
<TABLE>
<CAPTION>

                                                          For the three months ended        For the six months ended
                                                                  June 30,                          June 30,
                                                        ------------------------------    ------------------------------
                                                             2003             2002            2003               2002
                                                        -------------    -------------    -------------    -------------
<S>                                                     <C>              <C>              <C>              <C>
Share of income from partnerships ...................   $     143,748    $     624,630    $     387,269    $     802,028
                                                        -------------    -------------    -------------    -------------

Other revenue and  expenses:

  Revenue:
    Interest ........................................           9,357           18,051           19,043           32,861
    Gain from extinguishment of debt ................              --               --       21,844,501        1,944,068
                                                        -------------    -------------    -------------    -------------

                                                                9,357           18,051       21,863,544        1,976,929
                                                        -------------    -------------    -------------    -------------

  Expenses:
    Interest ........................................       1,842,170        2,498,367        3,684,340        5,148,960
    Management fee ..................................          93,750           93,750          187,500          187,500
    General and administrative ......................          65,422           66,891          160,137          164,293
    Professional fees ...............................          36,151           35,816           70,301          131,091
    Amortization of deferred costs ..................           4,817            5,814            9,634           11,629
                                                        -------------    -------------    -------------    -------------

                                                            2,042,310        2,700,638        4,111,912        5,643,473
                                                        -------------    -------------    -------------    -------------

      Total other revenue and expenses ..............      (2,032,953)      (2,682,587)      17,751,632       (3,666,544)
                                                        -------------    -------------    -------------    -------------

Net (loss) income ...................................      (1,889,205)      (2,057,957)      18,138,901       (2,864,516)

Accumulated losses, beginning of period .............    (129,538,282)    (147,782,557)    (149,566,388)    (146,975,998)
                                                        -------------    -------------    -------------    -------------

Accumulated losses, end of period ...................   $(131,427,487)   $(149,840,514)   $(131,427,487)   $(149,840,514)
                                                        =============    =============    =============    =============


Net (loss) income allocated
  to General Partners (1.51%) .......................   $     (28,527)   $     (31,075)   $     273,897    $     (43,254)
                                                        =============    =============    =============    =============

Net (loss) income allocated
  to Initial and Special Limited Partners (1.49%) ...   $     (28,149)   $     (30,664)   $     270,270    $     (42,681)
                                                        =============    =============    =============    =============

Net (loss) income allocated
  to Additional Limited Partners (97%) ..............   $  (1,832,529)   $  (1,996,218)   $  17,594,734    $  (2,778,581)
                                                        =============    =============    =============    =============

Net (loss) income per unit of Additional Limited
  Partner Interest, based on 73,500 units outstanding   $      (24.93)   $      (27.16)   $      239.38    $      (37.80)
                                                        =============    =============    =============    =============

</TABLE>
                          The accompanying notes are an
                       integral part of these consolidated
                              financial statements.

                                       -2-

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

                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                               For the six months ended
                                                                                        June 30,
                                                                             ----------------------------
                                                                                 2003            2002
                                                                             ------------    ------------
<S>                                                                          <C>             <C>
Cash flows from operating activities:
  Net income (loss) ......................................................   $ 18,138,901    $ (2,864,516)

  Adjustments to reconcile net income (loss) to net cash used in operating
    activities:
    Share of income from partnerships ....................................       (387,269)       (802,028)
    Gain from extinguishment of debt .....................................    (21,844,501)     (1,944,068)
    Amortization of deferred costs .......................................          9,634          11,629

    Changes in assets and liabilities:
      Decrease (increase) in other assets ................................             38            (437)
      Increase in accrued interest payable ...............................      3,684,340       5,148,960
      Payment of purchase money note interest ............................        (17,502)        (26,849)
      Decrease in accounts payable and accrued expenses ..................        (30,173)        (35,053)
                                                                             ------------    ------------

        Net cash used in operating activities ............................       (446,532)       (512,362)
                                                                             ------------    ------------

Cash flows from investing activities:
  Receipt of distributions from partnerships .............................        280,868         515,775
  Proceeds from disposition of investments in partnerships, net ..........             --       4,876,101
                                                                             ------------    ------------

        Net cash provided by investing activities ........................        280,868       5,391,876
                                                                             ------------    ------------

Cash flows from financing activities:
  Payment of purchase money note principal ...............................       (100,000)       (200,000)
  Distribution to Additional Limited Partners ............................             --        (586,896)
  Payoff of purchase money note principal and related interest ...........             --      (3,668,220)
                                                                             ------------    ------------

        Net cash used in financing activities ............................       (100,000)     (4,455,116)
                                                                             ------------    ------------

Net (decrease) increase in cash and cash equivalents .....................       (265,664)        424,398

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

Cash and cash equivalents, end of period .................................   $  4,597,205    $  5,240,745
                                                                             ============    ============



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


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

                                       -3-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             June 30, 2003 and 2002

                                   (Unaudited)


1.   BASIS OF PRESENTATION

     In the opinion of C.R.I.,  Inc. (CRI), the Managing  General  Partner,  the
accompanying   unaudited   consolidated   financial   statements   reflect   all
adjustments,  consisting  of normal  recurring  accruals,  necessary  for a fair
presentation of the financial  position of Capital Realty  Investors-IV  Limited
Partnership  (the  Partnership)  as of June 30,  2003,  and the  results  of its
operations  for the three and six months  ended June 30, 2003 and 2002,  and its
cash  flows for the six  months  ended June 30,  2003 and 2002.  The  results of
operations  for the interim  period  ended June 30,  2003,  are not  necessarily
indicative of the results to be expected for the full year.

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

     In January  2003,  the  Financial  Accounting  Standards  Board issued FASB
Interpretation No. 46 (FIN 46), Consolidation of Variable Interest Entities. FIN
46 clarifies the application of Accounting  Research  Bulletin 51,  Consolidated
Financial Statements, for certain entities that do not have sufficient equity at
risk for the entity to finance its activities  without  additional  subordinated
financial  support from other  parties or in which equity  investors do not have
the  characteristics  of a controlling  financial interest  ("variable  interest
entities").  Variable  interest  entities  within  the  scope  of FIN 46 will be
required  to  be  consolidated  by  their  primary   beneficiary.   The  primary
beneficiary  of a variable  interest  entity is  determined to be the party that
absorbs a majority of the entity's  expected losses,  receives a majority of its
expected  returns,  or both.  FIN 46 applies in the first fiscal year or interim
period beginning after June 15, 2003, to variable  interest entities in which an
enterprise  holds a variable  interest that it acquired before February 1, 2003.
The Managing  General Partner is in the process of determining  what impact,  if
any, the adoption of the  provisions of FIN 46 will have upon the  Partnership's
financial  condition  and  results of  operations  related to the  Partnership's
investments in limited partnerships (Local Partnerships),  and has complied with
the  disclosure   requirements  of  FIN  46  in  these  consolidated   financial
statements. As of June 30, 2003, the Partnership's maximum loss exposure related
to its  investments in and advances to  partnerships is limited to the remaining
balance of $15,446,071.

     Certain  reclassifications  have been made to certain amounts  reported for
the six months ended June 30, 2002, to conform them to the amounts  subsequently
reported at December 31, 2002.


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS

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

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

     The  Partnership's  obligations  with respect to its  investments  in Local
Partnerships,  in the  form  of  nonrecourse  purchase  money  notes  having  an
aggregate  principal  balance of $18,160,081 plus aggregate  accrued interest of
$77,398,195  as of June 30, 2003,  are payable in full upon the earliest of: (i)
sale or refinancing of the respective Local Partnership's rental property;  (ii)
payment in full of the respective Local  Partnership's  permanent loan; or (iii)
maturity.  However, see the discussion relating to Highland Village,  below, for
information  concerning the outstanding accrued interest balance of the purchase
money notes  related to Highland  Village,  even though the property  related to
Highland Village has been sold.

                                       -4-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             June 30, 2003 and 2002

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

     The maturity  dates of the purchase  money notes  related to the  following
properties were extended during 2002, and through August 11, 2003.

                                                 Original         Extended
     Property                 Principal          Maturity         Maturity
     --------                ----------          --------         --------
     Pilgrim Tower East      $1,450,000 (1)      12/01/99         11/30/03
     Pilgrim Tower North      2,065,000          04/30/00         11/30/03

     (1)  Remaining principal after a partial payoff.

     The purchase money notes related to the following  properties  have matured
and have not been paid or extended as of August 11, 2003.

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

     (1)  Extended in accordance with the forbearance agreement.

     The purchase money notes related to the following  properties were paid off
at  a  discount,  were  forgiven,  or  the  collateral  that  secured  them  was
transferred to the noteholders, during 2002, and through August 11, 2003.

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

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

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

                                       -5-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             June 30, 2003 and 2002

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

     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, and advances to, each of the
related Local  Partnerships.  Thus,  even a complete  loss of the  Partnership's
interest in one of these Local  Partnerships  would not have a material  adverse
impact on the financial condition of the Partnership.

     The  Managing  General  Partner  is  continuing  to  investigate   possible
alternatives to reduce the Partnership's  debt obligations.  These  alternatives
include, among others, retaining the cash available for distribution to meet the
purchase money note  requirements,  paying off certain purchase money notes at a
discounted  price,  extending  the due dates of certain  purchase  money  notes,
refinancing the respective properties' underlying debt or selling the underlying
real estate and using the Partnership's share of the proceeds to pay or buy down
certain purchase money note  obligations.  Although the Managing General Partner
has had some success applying these strategies in the past, the Managing General
Partner cannot assure that these strategies will be successful in the future. If
the Managing  General  Partner is unable to negotiate an extension or discounted
payoff,  in the event that the purchase money notes remain unpaid upon maturity,
the noteholders may have the right to foreclose on the Partnership's interest in
the related Local Partnerships. In the event of a foreclosure, the excess of the
nonrecourse   indebtedness   over  the  carrying  amount  of  the  Partnership's
investment  in the related Local  Partnership  would be deemed  cancellation  of
indebtedness income, which would be taxable to Limited Partners at a federal tax
rate  of  up  to  35.0%.  Additionally,  in  the  event  of a  foreclosure,  the
Partnership  would lose its investment in the Local  Partnership and,  likewise,
its share of any future  cash flow  distributed  by the Local  Partnership  from
rental operations,  mortgage debt refinancings,  or the sale of the real estate.
Of the 21 Local Partnerships in which the Partnership is invested as of June 30,
2003, the six Local Partnerships with associated purchase money notes which have
matured or which  mature  through  June 30,  2004,  and which  remain  unpaid or
unextended as of August 11, 2003,  represented the following  percentages of the
Partnership's total distributions  received from Local Partnerships and share of
income from Local Partnerships for the immediately preceding two calendar years.

                                       -6-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             June 30, 2003 and 2002

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued


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

     December 31, 2002                0.0%                     $ (98,637)
     December 31, 2001                0.0%                     $(245,610)


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

     Interest  expense on the  Partnership's  purchase money notes for the three
and six month  periods  ended June 30,  2003,  was  $1,842,170  and  $3,684,340,
respectively,  and $2,498,367 and $5,148,960 for the three and six month periods
ended June 30, 2002, respectively.  The accrued interest payable on the purchase
money notes of $77,398,195  and $94,373,145 as of June 30, 2003 and December 31,
2002,  respectively,  is due on the  respective  maturity  dates of the purchase
money notes or earlier,  in some  instances,  if (and to the extent of a portion
thereof) the related  Local  Partnership  has  distributable  net cash flow,  as
defined in the relevant Local Partnership agreement.

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

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

                                       -7-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             June 30, 2003 and 2002

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

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

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

     The  Partnership  defaulted  on its two  purchase  money  notes  related to
Crescent Gardens Associates Limited  Partnership  (Crescent Gardens) on July 31,
1999,  when the notes  matured and were not paid.  The default  amount  included
aggregate   principal   and  accrued   interest  of  $868,000  and   $2,033,388,
respectively. The Partnership successfully negotiated an agreement to extend the
maturity date of one of the purchase  money notes (First  Crescent  Note) in the
original principal amount of $434,000,  effective October 15, 1999.  Pursuant to
the extension  agreement,  the Partnership made payments to the noteholder to be
applied against accrued but unpaid interest.  The agreement extends the maturity
date up to July 31, 2004, subject to semi-annual interest payments,  and reduces
the interest rate of the First Crescent Note. The Partnership has been contacted
by only one of the  holders of the other note  (Second  Crescent  Note) and thus
cannot predict the course of action with regard to the Second  Crescent Note. As
of August 11, 2003,  principal and accrued  interest of $434,000 and $1,343,479,
respectively,  were due on the Second Crescent Note.  Crescent  Gardens recently
completed  mortgage  restructuring  under the  Mark-to-Market  program,  and the
associated  loan  restructuring  requirement  will likely limit the sale of this
property to a not-for-profit  organization.  It is anticipated that the property
will now operate at a break-even  level, and that future cash  distributions are
highly unlikely.

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

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

                                       -8-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             June 30, 2003 and 2002

                                   (Unaudited)


2. INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

                                Glenridge Gardens
                                -----------------

     The  Partnership  defaulted on its purchase money note related to Glenridge
Development Company (Glenridge Gardens) on August 1, 1999, when the note matured
and was not paid. The default amount included  principal and accrued interest of
$740,000 and  $1,928,809,  respectively.  As of August 11, 2003,  principal  and
accrued interest of $640,000 and $3,024,599, respectively, were due. On June 16,
2000, the Partnership  and noteholder  agreed to extend the maturity date of the
purchase money note to January 2001, in exchange for a payment which was applied
to the purchase money note  principal  balance.  Under the extension  agreement,
documents  transferring the  Partnership's  interest in Glenridge Gardens to the
noteholder  were placed in escrow to be released to the noteholder upon a future
default  by the  Partnership.  The  Partnership  reached an  agreement  with the
noteholder in which the noteholder agreed to forbear from taking any action with
respect to the note through January 3, 2002, in exchange for a payment which was
applied  to  the  purchase  money  note  principal  balance.  During  2002,  the
Partnership  reached another agreement with the noteholder to extend forbearance
through  January 3, 2003. As of August 11, 2003, the purchase  money  noteholder
had not  taken  action to  transfer  the  Partnership's  interest  in  Glenridge
Gardens.

     Due to the  possible  transfer of the  Partnership's  interest in Glenridge
Gardens to the  noteholder,  the net unamortized  acquisition  fees and property
purchase  costs,  which totaled $36,247 at June 30, 2003, and December 31, 2002,
has been  reclassified  to  investment  in  partnerships  held in  escrow in the
accompanying consolidated balance sheets.

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

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

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

                                       -9-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             June 30, 2003 and 2002

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

     As of August 11,  2003,  the  noteholder  has not provided the required six
months' notice to the  Partnership of  acceleration  of the maturity date of the
notes,  and the  Partnership has not removed the unpaid balance in the amount of
$5,486,253  from its books,  even though the  nonrecourse  notes are essentially
worthless because the collateral that secures them (the  Partnership's  interest
in Highland  Village) has no value since Highland  Village sold its only assets.
As a result,  the Partnership  stopped accruing  interest on the notes effective
the date of the sale of the property on April 26, 2002. The  Partnership and the
noteholder  are  discussing an  acceleration  of the maturity date of the notes.
Upon   acceleration  and  resulting   cancellation  of  the  notes,   gain  from
extinguishment  of debt of $5,486,253  will be  recognized  by the  Partnership.
There is no assurance  that the  acceleration  will occur.  The sale of Highland
Village resulted in a total gain of $7,380,542 for federal tax purposes in 2002.

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

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

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

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

                                      -10-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             June 30, 2003 and 2002

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

     Due to the impending  sale of the  Partnership's  interest in Pilgrim Tower
East to the  noteholder,  the net  unamortized  amount of  acquisition  fees and
property  purchase  costs,  which totaled $39,732 at June 30, 2003, and December
31, 2002, has been  reclassified to investment in partnerships  held for sale or
transfer in the accompanying consolidated balance sheets.

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

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

     Due to the  impending  sale of the  property  related to the  Partnership's
investment in Pilgrim Tower North to the noteholder,  the Partnership's basis in
the Local Partnership,  along with net unamortized acquisition fees and property
purchase  costs,  which totaled  $2,344,128 and $2,391,262 at June 30, 2003, and
December  31,  2002,  respectively,  has  been  reclassified  to  investment  in
partnerships held for sale or transfer in the accompanying  consolidated balance
sheets.

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

     The  Partnership  defaulted on its purchase  money notes  related to Valley
View  Associates  (Valley View) on September 1, 1999, when the notes matured and
were not paid. The default  amount  included  principal and accrued  interest of
$920,000 and  $1,788,829,  respectively.  As of August 11, 2003,  principal  and
accrued  interest  of  $920,000  and  $2,294,252,  respectively,  were due.  The
Partnership has been sued by the noteholders for payment and for confirmation of
the  transfer of the  collateral  to the  noteholders.  On January 7, 2000,  the
Partnership  filed a motion to dismiss the suit.  The  noteholders  subsequently
filed  an  amended  complaint  seeking  confirmation  of  the  transfer  of  the
collateral to the noteholders but not seeking payment.  On February 9, 2000, the
Partnership filed a motion to dismiss the amended complaint,  which was granted.
A further amended complaint and motion to dismiss have been filed, but no ruling
on the latest motion has been made as of August 11, 2003.  The  Partnership  and
the  noteholders  have agreed in  principle  that the  Partnership  will deposit
assignments  of its interests in Valley View in escrow,  together with an option
agreement  pursuant to which the  noteholders may purchase the interests for the
outstanding  debt if the property is not sold and/or the notes are not repaid by
a future date to be negotiated.  There is no assurance that any settlement  will
be finalized.

     Due to the impending transfer of the Partnership's  interest in Valley View
to the noteholders,  the net unamortized amount of acquisition fees and property
purchase  costs,  which totaled  $37,315 at June 30, 2003 and December 31, 2002,
has been  reclassified  to  investment  in  partnerships  held in  escrow in the
accompanying consolidated balance sheets.


                                      -11-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             June 30, 2003 and 2002

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

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

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

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

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

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

     The  Partnership  defaulted on its purchase money notes related to Westport
Associates  (Westport  Village) on September 1, 1999, when the notes matured and
were not paid. The default  amount  included  principal and accrued  interest of
$840,000 and  $1,615,644,  respectively.  As of August 11, 2003,  principal  and
accrued  interest  of  $840,000  and  $2,074,232,  respectively,  were due.  The
Partnership has been sued by the noteholders for payment and for confirmation of
the  transfer of the  collateral  to the  noteholders.  On January 7, 2000,  the
Partnership  filed a motion to dismiss the suit.  The  noteholders  subsequently
filed  an  amended  complaint  seeking  confirmation  of  the  transfer  of  the
collateral to the noteholders but not seeking payment.  On February 9, 2000, the
Partnership filed a motion to dismiss the amended complaint,  which was granted.
A further amended complaint and motion to dismiss have been filed, but no ruling
on the latest motion has been made as of August 11, 2003.  The  Partnership  and
the  noteholders  have agreed in  principle  that the  Partnership  will deposit
assignments  of its  interests in Westport  Village in escrow,  together with an
option  agreement  pursuant to which the  noteholders may purchase the interests
for the  outstanding  debt if the  property is not sold and/or the notes are not
repaid  by a  future  date to be  negotiated.  There  is no  assurance  that any
settlement will be finalized.

                                      -12-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             June 30, 2003 and 2002

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

     Due to the  impending  transfer of the  Partnership's  interest in Westport
Village to the noteholders,  the net unamortized  amount of acquisition fees and
property purchase costs, which totaled $46,989 at June 30, 2003 and December 31,
2002, has been  reclassified to investment in partnerships held in escrow in the
accompanying consolidated balance sheets.

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

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

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

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

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

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

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

     As of August 11, 2003, the local managing  general partner is negotiating a
contract to sell the property  owned by Campbell  Terrace  Associates  (Campbell
Terrace). There is no assurance that a sale of the property will occur.

     Due to the  possible  sale of the  property  related  to the  Partnership's
investment  in  Campbell  Terrace,   the   Partnership's   basis  in  the  Local
Partnership,  along with net unamortized  acquisition fees and property purchase
costs,  which totaled  $5,517,970  at June 30, 2003,  has been  reclassified  to
investment  in  partnerships  held  for  sale or  transfer  in the  accompanying
consolidated balance sheet.

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

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

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

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

                                      -13-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             June 30, 2003 and 2002

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

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

     The Local Managing General Partner of Madison Square Ltd.  Dividend Housing
Association  (Madison Square)  requested debt relief effective  October 1, 2001.
The property has depleted its  operating  cash and  replacement  reserve  funds,
therefore, the Local Managing General Partner requested from the lender that the
debt  payments  be  reduced to  interest  only  payments  until such time as the
property  can be sold.  In December  2001,  the lender  approved  interest  only
payments and a reduction in the rate for a period of five years,  although  this
loan  modification  has not yet been closed.  The Local Managing General Partner
has been searching for a  not-for-profit  organization  to purchase the property
but  has no firm  offers  as of  August  11,  2003.  As of June  30,  2003,  the
Partnership's  remaining  investment in Madison  Square,  which consisted of net
unamortized  acquisition fees and property purchase costs, was $15,031. There is
no assurance that a sale of the property will occur.

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

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

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

     In January 2002, a contract for the sale of Pilgrim Tower North was signed.
See Note 2.a. hereof for additional  information concerning the sale. As of June
30, 2003,  the  Partnership's  remaining  investment  in Pilgrim Tower North was
$2,286,959. There is no assurance that a sale of the property will occur.

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

     Combined  statements of operations for the 21 and 26 Local  Partnerships in
which the Partnership  was invested as of June 30, 2003 and 2002,  respectively,
follow.  The  combined  statements  of  operations  for the  three and six month
periods ended June 30, 2002 include information for Highland Village through the
date of sale of the property in April 2002.  The combined  statements  have been
compiled from  information  supplied by the management  agents of the properties
and are  unaudited.  The  information  for  each  of the  periods  is  presented
separately  for those Local  Partnerships  which have  investment  basis (equity
method),  and for those Local Partnerships for which the Partnership's  carrying
value is zero (equity method suspended).  Appended after the combined statements
is information  concerning the  Partnership's  share of income from partnerships
related  to  cash   distributions   recorded  as  income,  and  related  to  the
Partnership's share of income from Local Partnerships.

                                      -14-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             June 30, 2003 and 2002

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued


                                         COMBINED STATEMENTS OF OPERATIONS
                                                    (Unaudited)
<TABLE>
<CAPTION>
                                                                For the three months ended
                                                                          June 30,
                                                 -------------------------------------------------------------
                                                            2003                               2002
                                                 --------------------------         --------------------------
                                                   Equity                             Equity
                                                   Method         Suspended           Method         Suspended
                                                 ----------      -----------        ----------       ----------
         <S>                                     <C>             <C>                <C>              <C>
         Revenue:
           Rental                                $3,442,886       $2,820,826        $3,934,637       $3,199,020
           Other                                    199,990          127,598           319,951          203,949
                                                 ----------       ----------        ----------       ----------

             Total revenue                        3,642,876        2,948,424         4,254,588        3,402,969
                                                 ----------       ----------        ----------       ----------

         Expenses:
           Operating                              2,553,520        1,927,589         2,343,803        2,199,488
           Interest                                 367,439          546,906           611,177          634,653
           Depreciation and amortization            632,182          557,299           896,040          692,743
                                                 ----------       ----------        ----------       ----------

             Total expenses                       3,553,141        3,031,794         3,851,020        3,526,884
                                                 ----------       ----------        ----------       ----------

         Net income (loss)                       $   89,735       $  (83,370)       $  403,568       $ (123,915)
                                                 ==========       ==========        ==========       ==========

         Cash distributions                      $  225,650       $   55,218        $   90,564       $  223,908
                                                 ==========       ==========        ==========       ==========

         Cash distributions recorded
           as reduction of investments
           in partnerships                       $  225,650       $       --        $   90,564       $       --
                                                 ==========       ==========        ==========       ==========

         Cash distributions recorded
           as income                             $       --       $   55,218        $       --       $  223,908

         Partnership's share of Local
           Partnership net income                    88,530              --            400,722              --
                                                 --------------------------         --------------------------


         Share of income from partnerships                $143,748                            $624,630
                                                          ========                            ========
</TABLE>


                                      -15-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             June 30, 2003 and 2002

                                   (Unaudited)


2.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

<TABLE>
<CAPTION>
                                                                 For the six months ended
                                                                          June 30,
                                                 -------------------------------------------------------------
                                                            2003                               2002
                                                 --------------------------         --------------------------
                                                   Equity                             Equity
                                                   Method         Suspended           Method         Suspended
                                                 ----------       ----------        ----------       ---------
         <S>                                     <C>              <C>               <C>              <C>
         Revenue:
           Rental                                $6,789,948       $5,641,650        $8,067,995       $6,398,042
           Other                                    424,632          255,197           591,074          407,900
                                                 ----------       ----------        ----------       ----------

             Total revenue                        7,214,580        5,896,847         8,659,069        6,805,942
                                                 ----------       ----------        ----------       ----------

         Expenses:
           Operating                              4,879,226        3,855,175         5,176,071        4,398,979
           Interest                                 734,877        1,093,810         1,163,793        1,269,303
           Depreciation and amortization          1,264,364        1,114,597         1,731,722        1,385,485
                                                 ----------       ----------        ----------       ----------

             Total expenses                       6,878,467        6,063,582         8,071,586        7,053,767
                                                 ----------       ----------        ----------       ----------

         Net income (loss)                       $  336,113       $ (166,735)       $  587,483       $ (247,825)
                                                 ==========       ==========        ==========       ==========

         Cash distributions                      $  225,650       $   55,218        $  291,867       $  223,908
                                                 ==========       ==========        ==========       ==========

         Cash distributions recorded
           as reduction of investments
           in partnerships                       $  225,650       $       --        $  291,867       $       --
                                                 ==========       ==========        ==========       ==========

         Cash distributions recorded
           as income                             $       --       $   55,218        $       --       $  223,908

         Partnership's share of Local
           Partnership net income                   332,051              --            582,488          (4,368)
                                                 --------------------------         --------------------------


         Share of income from partnerships                $387,269                             $802,028
                                                          ========                             ========
</TABLE>


     Cash  distributions  received from Local Partnerships which have investment
basis are recorded as a reduction of investments in and advances to partnerships
and as  cash  receipts  on the  respective  consolidated  balance  sheets.  Cash
distributions  received  from  Local  Partnerships  for which the  Partnership's
carrying value is zero (equity method suspended) are recorded as share of income
from partnerships on the respective consolidated statements of operations and as
cash receipts on the respective consolidated balance sheets. As of June 30, 2003
and 2002, the Partnership's  share of cumulative losses to date for 11 and 12 of
the 21 and 26 Local  Partnerships,  respectively,  exceeded  the  amount  of the
Partnership's  investments  in and  advances  to  those  Local  Partnerships  by
$9,836,563 and  $13,493,060,  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.

                                      -16-

<PAGE>
                 CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             June 30, 2003 and 2002

                                   (Unaudited)


3.   RELATED PARTY TRANSACTIONS

     In accordance with the terms of the Partnership Agreement,  the Partnership
is obligated to reimburse the Managing  General  Partner for its direct expenses
in connection with managing the  Partnership.  The Partnership  paid $58,647 and
$116,676 for the three and six month periods  ended June 30, 2003  respectively,
and  $45,583 and  $141,139  for the three and six month  periods  ended June 30,
2002,  respectively,  to the Managing General Partner as direct reimbursement of
expenses  incurred on behalf of the  Partnership.  Such expenses are included in
the   accompanying   consolidated   statements  of  operations  as  general  and
administrative expenses.

     In accordance with the terms of the Partnership Agreement,  the Partnership
is obligated to pay the Managing General Partner an annual incentive  management
fee  (Management  Fee) after all other expenses of the Partnership are paid. The
Partnership  paid the Managing  General  Partner a Management Fee of $93,750 for
each of the three month periods  ended June 30, 2003 and 2002,  and $187,500 for
each of the six month periods ended June 30, 2003 and 2002.

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

                                      # # #

                                      -17-

<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-KSB at December 31, 2002.
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.

                                     General
                                     -------

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

     Some of the rental properties owned by the Local Partnerships are dependent
on the receipt of  project-based  Section 8 Rental Housing  Assistance  Payments
(HAP)  provided by the U.S.  Department of Housing and Urban  Development  (HUD)
pursuant  to Section 8 HAP  contracts.  Current  legislation  allows all expired
Section 8 HAP contracts  with rents at less than 100% of fair market rents to be
renewed for up to one year.  Expiring  Section 8 HAP  contracts  with rents that
exceed  100% of fair market  rents  could be renewed for up to one year,  but at
rents  reduced  to 100% of fair  market  rents  (Mark-to-Market).  All  expiring
Section 8 HAP  contracts  with rents  exceeding  comparable  market  rents,  and
properties  with mortgage  loans insured by the Federal  Housing  Administration
(FHA), became subject to the Mark-to-Market legislation.

     Mark-to-Market (M2M) implementation will reduce rental income at properties
that are currently  subsidized  at  higher-than-market  rental  rates,  and will
therefore  lower cash flow  available to meet  mortgage  payments and  operating
expenses.  In some instances,  a property will be able to meet its existing debt
service  payments  after the  reduction  in rental  income.  In this  case,  the
property  may enter  the M2M  "Lite"  program,  which  would not  require a debt
restructuring.  In the remaining  instances,  the affected  property may undergo
debt restructuring  according to terms determined by an individual  property and
operations  evaluation.  This would  involve  reducing the first  mortgage  loan
balance to an amount  supportable  by the  property's  operations,  taking  into
account the property's operating expenses and reduced income. The balance of the
amount  written  down from the  first  mortgage  loan  would be  converted  to a
non-performing but accruing (soft) second mortgage loan. When the existing first
mortgage loan is bifurcated  into a first and second  mortgage  loan,  the newly
created second  mortgage loan will accrue  interest at a below-market  rate. The
Internal  Revenue  Service  issued a ruling in July 1998 that concluded that the
below-market  rate of interest would not generate  additional  ordinary  income.
Each property subject to M2M will be affected in a different  manner,  and it is
very  difficult to predict the exact form of  restructuring,  or  potential  tax
liabilities to the limited partners, at this time. All properties, upon entering
the M2M program  (excluding  M2M Lite),  are required to enter into an agreement
restricting the property's use to affordable housing for 30 years.

                                      -18-

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


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

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

     Glenridge  Development  Company  (Glenridge  Gardens),  has a Section 8 HAP
contract  which,  as extended,  expires May 31, 2004. The Section 8 HAP contract
covers 20% of the  apartment  units in Glenridge  Gardens.  See Note 2.a. of the
notes to consolidated  financial statements contained in Part I, Item 1, hereof,
for information  concerning a possible transfer of the Partnership's interest in
Glenridge Gardens to the purchase money noteholder.

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

     As of June 30, 2003, the carrying amount of the  Partnership's  investments
in and advances to Local  Partnerships with Section 8 HAP contracts  expiring in
the next 12 months was $2,917,852 .

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

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

     The Partnership's liquidity, with unrestricted cash resources of $4,597,205
as of June 30, 2003, along with anticipated  future cash  distributions from the
Local  Partnerships,  is  expected  to be  adequate  to  meet  its  current  and
anticipated  operating cash needs. As of August 11, 2003, there were no material
commitments for capital expenditures.

     The  Partnership's  obligations  with respect to its  investments  in Local
Partnerships,  in the  form  of  nonrecourse  purchase  money  notes  having  an
aggregate  principal  balance of $18,160,081 plus aggregate  accrued interest of
$77,398,195  as of June 30, 2003,  are payable in full upon the earliest of: (i)
sale or refinancing of the respective Local Partnership's rental property;  (ii)
payment in full of the respective Local  Partnership's  permanent loan; or (iii)
maturity.  However,  see  Note  2.a.  of the  notes  to  consolidated  financial
statements  contained in Part I, Item 1, hereof, for information  concerning the
outstanding  accrued  interest  balance of the purchase  money notes  related to
Highland Village,  even though the property related to Highland Village has been
sold.

                                      -19-

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


     The maturity  dates of the purchase  money notes  related to the  following
properties were extended during 2002, and through August 11, 2003.

                                                 Original     Extended
         Property                  Principal     Maturity     Maturity
         --------                 -----------    --------     --------
         Pilgrim Tower East       $ 1,450,000    12/01/99     11/30/03
         Pilgrim Tower North        2,065,000    04/30/00     11/30/03

     The purchase money notes related to the following  properties  have matured
and have not been paid or extended as of August 11, 2003.

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

     (1)  Extended in accordance with the forbearance agreement.

     The purchase money notes related to the following  properties were paid off
at  a  discount,  were  forgiven,  or  the  collateral  that  secured  them  was
transferred to the noteholders, during 2002, and through August 11, 2003.

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

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

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

     See the notes to  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.

                                      -20-

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


     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, and advances to, each of the
related Local  Partnerships.  Thus,  even a complete  loss of the  Partnership's
interest in one of these Local  Partnerships  would not have a material  adverse
impact on the financial condition of the Partnership.

     The  Managing  General  Partner  is  continuing  to  investigate   possible
alternatives to reduce the Partnership's  debt obligations.  These  alternatives
include, among others, retaining the cash available for distribution to meet the
purchase money note  requirements,  paying off certain purchase money notes at a
discounted  price,  extending  the due dates of certain  purchase  money  notes,
refinancing  the  respective   properties'   underlying  debt,  or  selling  the
underlying real estate and using the Partnership's  share of the proceeds to pay
or buy down  certain  purchase  money note  obligations.  Although  the Managing
General Partner has had some success  applying these strategies in the past, the
Managing  General Partner cannot assure that these strategies will be successful
in the  future.  If the  Managing  General  Partner  is unable to  negotiate  an
extension  or  discounted  payoff,  in the event that the  purchase  money notes
remain unpaid upon maturity,  the noteholders may have the right to foreclose on
the Partnership's interest in the related Local Partnerships.  In the event of a
foreclosure, the excess of the nonrecourse indebtedness over the carrying amount
of the Partnership's investment in the related Local Partnership would be deemed
cancellation of indebtedness  income, which would be taxable to Limited Partners
at a  federal  tax  rate  of  up to  35.0%.  Additionally,  in  the  event  of a
foreclosure,  the Partnership would lose its investment in the Local Partnership
and,  likewise,  its  share of any  future  cash flow  distributed  by the Local
Partnership from rental operations,  mortgage debt refinancings,  or the sale of
the real  estate.  Of the 21 Local  Partnerships  in which  the  Partnership  is
invested  as of June  30,  2003,  the six  Local  Partnerships  with  associated
purchase  money notes which have matured or which mature  through June 30, 2004,
and which remain  unpaid or unextended  as of August 11, 2003,  represented  the
following  percentages of the Partnership's  total  distributions  received from
Local  Partnerships  and  share  of  income  from  Local  Partnerships  for  the
immediately preceding two calendar years.

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

     December 31, 2002               0.0%                     $ (98,637)
     December 31, 2001               0.0%                     $(245,610)

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

     The Partnership closely monitors its cash flow and liquidity position in an
effort to ensure that sufficient  cash is available for operating  requirements.
For the six month period ended June 30, 2003, the receipt of distributions  from
Local  Partnerships  and  existing  cash  resources  were  adequate  to  support
operating cash requirements.  Cash and cash equivalents decreased during the six
month period ended June 30, 2003, as net cash used in operating  activities  and
for the  payment  of  purchase  money note  principal  exceeded  the  receipt of
distributions  from Local  Partnerships.  The primary  uses of cash in operating
activities  were to pay  purchase  money note  interest  and to reduce  accounts
payable and accrued expenses.  For the six month periods ended June 30, 2003 and
2002,  $55,218 and $223,908,  respectively,  of the distributions  received were
from  Local  Partnerships  for which the  Partnership's  carrying  value is zero
(equity method suspended). The Partnership expects to receive a similar or lower
amount of  distributions  from these Local  Partnerships in future years as more
Section 8 HAP contracts approach expiration, should the related properties enter
the Mark-to-Market program, with the resulting reduction in rental revenues.

                                      -21-

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


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

     The  Partnership's net loss for the three month period ended June 30, 2003,
decreased  $169,000 from the  corresponding  period in 2002,  primarily due to a
decrease  in  interest  expense  due to  lower  purchase  money  note  balances.
Partially  offsetting  the  improved  results were a decrease in share of income
from  partnerships  related to  provisions  for real estate taxes and  insurance
recognized  at one  property  in 2003,  but not in 2002 and a  decrease  in cash
distributions  recorded as income,  and a decrease in interest  revenue due to a
decrease in cash and cash equivalent balances and declining interest rates.

     The  Partnership  recognized  net income of  $18,139,000  for the six month
period  ended  June  30,  2003,  compared  to net  loss  of  $2,865,000  for the
corresponding  period in 2002,  primarily due to gain on  extinguishment of debt
related to the  transfer  of four  properties  in January  2003,  a decrease  in
interest expense as discussed above, and a decrease in professional  legal fees.
Partially  offsetting  the  improved  results were a decrease in share of income
from  partnerships,  and a decrease in interest  revenue as discussed above. The
decrease in share of income from  partnerships  was  primarily  the result of an
increase in property  operating  expenses  related to provisions for real estate
taxes and  insurance  premiums  recognized  at one property in 2003,  but not in
2002,  and a  decrease  in cash  distributions  recorded  as  income.  Partially
offsetting the decrease in share of income from  partnerships was an increase in
rental income at one property due to an increase in rental rates.

     For financial reporting purposes, the Partnership,  as a limited partner in
the Local  Partnerships,  does not record losses from the Local  Partnerships in
excess of its  investment  to the  extent  that the  Partnership  has no further
obligation to advance funds or provide financing to the Local Partnerships. As a
result,  the  Partnership's  share of income from partnerships for the three and
six month  periods  ended June 30, 2003 did not include  losses of $232,903  and
$465,803,  respectively,  compared to excluded  losses of $229,024 and $453,681,
for the three and six month periods ended June 30, 2002, respectively.

     No other significant changes in the Partnership's operations have taken
place during the three month period ended June 30, 2003.


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

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

                                      -22-

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

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


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

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

                             Registered Tender Offer
                             -----------------------

     On June  17,  2003,  Equity  Resource  Weston  Fund  (Equity)  initiated  a
registered tender offer to purchase up to 11,025 of the outstanding Units in the
Partnership at a price of $40 per Unit; the offer expired July 17, 2003.  Equity
is not affiliated with the  Partnership or the Managing  General  Partners.  The
price  offered was  determined  solely at the  discretion of Equity and does not
necessarily represent the fair market value of each Unit.

     In response to the Equity  tender  offer,  on June 27,  2003,  the Managing
General  Partner filed a Schedule 14D-9.  In that filing,  the Managing  General
Partner  recommended  that Limited  Partners  reject the Equity offer because it
viewed the offer as inadequate.

                            Unregistered Tender Offer
                            -------------------------

     On July 31, 2003, Peachtree Partners (Peachtree)  initiated an unregistered
tender offer to purchase no more than 4.9%  (including  2,857  Units,  or 3.88%,
already owned by affiliates) of the  outstanding  Units in the  Partnership at a
price of $65 per Unit; the offer expires on September 30, 2003. Peachtree is not
affiliated  with the  Partnership  or the Managing  General  Partner.  The price
offered  was  determined  solely at the  discretion  of  Peachtree  and does not
necessarily represent the fair market value of each Unit.

     The  Managing  General  Partner did not  express  any opinion and  remained
neutral toward the unregistered tender offer for the purchase of Units described
above.


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

     a.   Exhibits

          Exhibit No.       Description
          ----------        -----------
              99            Certification of Periodic Financial Report
                            Pursuant to 18 U.S.C. Section 1350

     b.   No  Reports  on Form 8-K were  filed  with the  Commission  during the
          quarter ended June 30, 2003.

All other Items are not applicable.

                                      -23-

<PAGE>
                                    SIGNATURE

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


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

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




August 11, 2003                        by:  /s/ Michael J. Tuszka
---------------                             ------------------------------------
DATE                                        Michael J. Tuszka
                                              Vice President
                                              and Chief Accounting Officer
                                              (Principal Financial Officer
                                              and Principal Accounting Officer)

                                      -24-

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


         I, Michael J. Tuszka, certify that:

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

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

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

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

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

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

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

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

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

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


                                      -25-

<PAGE>



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


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

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



August 11, 2003                          by:  /s/ Michael J. Tuszka
---------------                               ----------------------------------
DATE                                          Michael J. Tuszka,
                                                Vice President
                                                and Chief Accounting Officer
                                                (Principal Financial Officer)


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

                                      -26-

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


         I, William B. Dockser, certify that:

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

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

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

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

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

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

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

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


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

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


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<PAGE>


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


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

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



August 11, 2003                       by:  /s/ William B. Dockser
---------------                            -------------------------------------
DATE                                       William B. Dockser,
                                              Director, Chairman of the Board,
                                              and Treasurer
                                              (Principal Executive Officer)


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



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