FORM 10-QSB--QUARTERLY OR TRANSITIONAL REPORT UNDER SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934
                        Quarterly or Transitional Report



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

                                   Form 10-QSB

(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

                    For the quarterly period ended June 30, 2001


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


                For the transition period from _________to _________

                         Commission file number 0-10412


                           NATIONAL PROPERTY INVESTORS 4
         (Exact name of small business issuer as specified in its charter)



         California                                         13-3031722
(State or other jurisdiction of                          (I.R.S. Employer
 incorporation or organization)                         Identification No.)

                          55 Beattie Place, PO Box 1089
                        Greenville, South Carolina 29602
                      (Address of principal executive offices)

                                 (864) 239-1000
                           (Issuer's telephone number)


Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act  during the  preceding  12 months (or for such
shorter period that the Partnership was required to file such reports),  and (2)
has been subject to such filing requirements for the past 90 days. Yes X No___



<PAGE>



                         PART I - FINANCIAL INFORMATION


ITEM 1.     FINANCIAL STATEMENTS

a)

                           NATIONAL PROPERTY INVESTORS 4
                                  BALANCE SHEET
                                   (Unaudited)
                          (in thousands, except unit data)


                                  June 30, 2001

<TABLE>
<CAPTION>


Assets
<S>                                                                          <C>
   Cash and cash equivalents                                                 $ 995
   Receivables and deposits                                                     655
   Other assets                                                                 396
   Investment property:
       Land                                                  $ 1,980
       Buildings and related personal property                 26,223
                                                               28,203
       Less accumulated depreciation                          (21,739)        6,464
                                                                            $ 8,510
Liabilities and Partners' Deficit
Liabilities
   Accounts payable                                                          $ 66
   Tenant security deposit liabilities                                          427
   Other liabilities                                                            633
   Mortgage note payable                                                     19,300

Partners' Deficit
   General partner                                            $ (366)
   Limited partners (60,005 units
      issued and outstanding)                                 (11,550)      (11,916)
                                                                            $ 8,510


                   See Accompanying Notes to Financial Statements

</TABLE>

<PAGE>

b)

                           NATIONAL PROPERTY INVESTORS 4
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)
                          (in thousands, except unit data)

<TABLE>
<CAPTION>

                                           Three Months               Six Months
                                          Ended June 30,            Ended June 30,
                                        2001         2000         2001         2000

Revenues:
<S>                                   <C>           <C>          <C>         <C>
   Rental income                      $ 1,810       $ 1,737      $ 3,569     $ 3,409
   Other income                           100            96          166         157
       Total revenues                   1,910         1,833        3,735       3,566

Expenses:
   Operating                              559           581        1,243       1,132
   General and administrative             113           185          236         237
   Depreciation                           302           284          600         562
   Interest                               373           373          745         745
   Property taxes                         136           134          271         268
       Total expenses                   1,483         1,557        3,095       2,944

Net income                             $ 427         $ 276        $ 640       $ 622

Net income allocated to
   general partner (1%)                 $ 4           $ 3          $ 6         $ 6
Net income allocated to
   limited partners (99%)                 423           273          634         616
                                       $ 427         $ 276        $ 640       $ 622
Net income per limited
   partnership unit                    $ 7.05       $ 4.55       $ 10.57     $ 10.27

Distributions per limited
   partnership unit                    $ 7.08       $ 24.15      $ 20.06     $ 24.15

                   See Accompanying Notes to Financial Statements

</TABLE>

<PAGE>

c)

                           NATIONAL PROPERTY INVESTORS 4
                    STATEMENT OF CHANGES IN PARTNERS' DEFICIT
                                   (Unaudited)
                          (in thousands, except unit data)

<TABLE>
<CAPTION>


                                     Limited
                                   Partnership   General      Limited
                                      Units      Partner     Partners       Total

<S>                                   <C>          <C>       <C>          <C>
Original capital contributions        60,005       $ 1       $ 30,003     $ 30,004

Partners' deficit at
   December 31, 2000                  60,005      $ (360)    $(10,980)    $(11,340)

Distributions to partners                 --         (12)      (1,204)      (1,216)

Net income for the six months
   ended June 30, 2001                    --           6          634          640

Partners' deficit at
   June 30, 2001                      60,005      $ (366)    $(11,550)    $(11,916)


                   See Accompanying Notes to Financial Statements

</TABLE>

<PAGE>

d)

                           NATIONAL PROPERTY INVESTORS 4
                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                   (in thousands)

<TABLE>
<CAPTION>

                                                                  Six Months Ended
                                                                        June 30,
                                                                  2001        2000
Cash flows from operating activities:
<S>                                                              <C>          <C>
  Net income                                                     $ 640        $ 622
  Adjustments to reconcile net income to cash
   provided by operating activities:
   Depreciation                                                     600          562
   Amortization of loan costs                                        37           37
   Change in accounts:
      Receivables and deposits                                      143         (310)
      Other assets                                                  109          170
      Accounts payable                                               19           71
      Tenant security deposit liabilities                             6           10
      Other liabilities                                              24         (171)
       Net cash provided by operating activities                  1,578          991

Cash flows from investing activities:
  Net withdrawals from (deposits to) restricted escrows              63          (94)
  Property improvements and replacements                           (506)        (243)
       Net cash used in investing activities                       (443)        (337)

Cash flows used in financing activities:
  Distributions to partners                                      (1,216)      (2,015)

Net decrease in cash and cash equivalents                           (81)      (1,361)
Cash and cash equivalents at beginning of period                  1,076        1,618
Cash and cash equivalents at end of period                       $ 995        $ 257

Supplemental disclosure of cash flow information:
  Cash paid for interest                                         $ 707        $ 707

At  December  31,  2000,  approximately  $92,000 of  property  improvements  and
replacements  were  included  in accounts  payable and are  included in property
improvements and replacements for the six months ended June 30, 2001.

                   See Accompanying Notes to Financial Statements

</TABLE>

<PAGE>

e)
                           NATIONAL PROPERTY INVESTORS 4
                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)

Note A - Basis of Presentation

The accompanying unaudited financial statements of National Property Investors 4
(the  "Partnership" or the  "Registrant")  have been prepared in accordance with
generally accepted accounting  principles for interim financial  information and
with  the  instructions  to Form  10-QSB  and Item  310(b)  of  Regulation  S-B.
Accordingly,  they do not include all of the information and footnotes  required
by generally accepted accounting  principles for complete financial  statements.
In the opinion of NPI Equity Investments, Inc. (the "Managing General Partner"),
all adjustments  (consisting of normal recurring accruals)  considered necessary
for a fair presentation have been included.  Operating results for the three and
six month periods  ended June 30, 2001,  are not  necessarily  indicative of the
results that may be expected for the fiscal year ending  December 31, 2001.  For
further  information,  refer to the financial  statements and footnotes  thereto
included in the  Partnership's  Annual Report on Form 10-KSB for the fiscal year
ended  December  31,  2000.  The Managing  General  Partner is a  subsidiary  of
Apartment  Investment and Management Company  ("AIMCO"),  a publicly traded real
estate investment trust.

Segment Reporting

Statement of Financial  Accounting Standards ("SFAS") No. 131, "Disclosure about
Segments of an Enterprise and Related Information" established standards for the
way that public business enterprises report information about operating segments
in annual  financial  statements  and  requires  that those  enterprises  report
selected  information about operating segments in interim financial reports.  It
also established  standards for related disclosures about products and services,
geographic  areas,  and  major  customers.  As  defined  in SFAS  No.  131,  the
Partnership  has only one  reportable  segment.  The  Managing  General  Partner
believes that  segment-based  disclosures  will not result in a more  meaningful
presentation than the financial statements as currently presented.

Note B - Transactions with Affiliated Parties

The  Partnership  has no employees  and is  dependent  on the  Managing  General
Partner  and  its  affiliates  for  the  management  and  administration  of all
partnership  activities.  The  Partnership  Agreement  provides  for payments to
affiliates for services and for  reimbursement of certain  expenses  incurred by
affiliates  on  behalf  of the  Partnership.  The  following  transactions  with
affiliates of the Managing  General  Partner were incurred  during the six month
periods ended June 30, 2001 and 2000:

                                                                  2001      2000
                                                                  (in thousands)

 Property management fees (included in operating expenses)        $ 186    $ 176
 Reimbursement for services of affiliates (included in
   investment property and general and administrative and
   operating expenses)                                               85       58
 Partnership management fee (included in general and
   administrative expense)                                           27       30
 Non-accountable reimbursement (included in general
   and administrative expenses)                                      90      100

Affiliates of the Managing  General  Partner are entitled to receive 5% of gross
receipts  from the  Partnership's  property for  providing  property  management
services.  The Partnership  paid to such affiliates  approximately  $186,000 and
$176,000 for the six month periods ended June 30, 2001, and 2000, respectively.

Affiliates  of  the  Managing   General  Partner  received   reimbursements   of
accountable  administrative  expenses  amounting  to  approximately  $85,000 and
$58,000 for the six month periods ended June 30, 2001, and 2000, respectively.

For services relating to the  administration of the Partnership and operation of
the Partnership's  property, the Managing General Partner is entitled to receive
payment for non-accountable  expenses up to a maximum of $100,000 per year based
upon the number of Partnership units sold, subject to certain  limitations.  The
Managing  General  Partner  received  payment  for  non-accountable  expenses of
$90,000 and $100,000  during the six month periods ended June 30, 2001 and 2000,
respectively.

In  addition  to the amounts  discussed  above,  as  compensation  for  services
rendered in managing the  Partnership,  the Managing General Partner is entitled
to receive Partnership management fees in conjunction with distributions of cash
from operations,  subject to certain  limitations.  During the six month periods
ended June 30, 2001 and 2000,  approximately $27,000 and $30,000,  respectively,
was paid in conjunction with the distributions from operations.

The Managing  General  Partner has made available to the  Partnership a $300,000
line of credit. At the present time, the Partnership has no outstanding  amounts
due under this line of credit.  Based on present  plans,  the  Managing  General
Partner does not  anticipate  the need to borrow in the near future.  Other than
cash and cash equivalents,  the line of credit is the Partnership's  only unused
source of liquidity.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates  owned 44,822 limited  partnership  units
(the "Units") in the Partnership representing 74.70% of the outstanding Units at
June 30, 2001. A number of these Units were  acquired  pursuant to tender offers
made by AIMCO or its  affiliates.  It is possible  that AIMCO or its  affiliates
will  make  one  or  more  additional  offers  to  acquire   additional  limited
partnership  interests in the  Partnership  for cash or in exchange for units in
the operating partnership of AIMCO. Under the Partnership Agreement, unitholders
holding a majority of the Units are  entitled  to take action with  respect to a
variety of matters,  which would include without  limitation,  voting on certain
amendments  to the  Partnership  Agreement  and  voting to remove  the  Managing
General  Partner.  As a result of its  ownership  of  74.70% of the  outstanding
Units,  AIMCO is in a position to influence all voting decisions with respect to
the Registrant.  When voting on matters,  AIMCO would in all likelihood vote the
Units it acquired in a manner  favorable to the interest of the Managing General
Partner because of its affiliation with the Managing  General Partner.  However,
with respect to 26,466 units, Insignia Properties, LP, an affiliate of AIMCO, is
required to vote such Units: (i) against any increase in compensation payable to
the Managing  General  Partner or to  affiliates;  and (ii) on all other matters
submitted  by it  or  its  affiliates,  in  proportion  to  the  votes  cast  by
non-tendering  unitholders.  Except for the foregoing,  no other limitations are
imposed on AIMCO's or Insignia  Properties,  L.P.'s ability to influence  voting
decisions with respect to the Partnership.

Note C - Distribution to Partners

Cash distributions from operations of approximately  $1,216,000 were paid during
the six months ended June 30, 2001, of which  approximately  $1,204,000 was paid
to the limited partners ($20.06 per limited partnership unit).

Cash distributions from operations of approximately  $1,464,000 were paid during
the six months ended June 30, 2000, of which  approximately  $1,449,000 was paid
to the limited partners ($24.15 per limited  partnership  unit). At December 31,
1999, a distribution payable of approximately $551,000  (approximately  $545,000
to the limited partners or $9.08 per limited  partnership  unit) was accrued and
subsequently paid in January 2000.

Note D - Legal Proceedings

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial  Group,  Inc., et al. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs  named as defendants,  among others,
the  Partnership,  its Managing  General Partner and several of their affiliated
partnerships  and corporate  entities.  The action  purports to assert claims on
behalf of a class of limited  partners and derivatively on behalf of a number of
limited  partnerships  (including  the  Partnership)  which are named as nominal
defendants,  challenging,  among other things,  the  acquisition of interests in
certain general partner entities by Insignia Financial Group, Inc.  ("Insignia")
and entities which were, at one time, affiliates of Insignia; past tender offers
by the Insignia affiliates to acquire limited  partnership units;  management of
the  partnerships  by the Insignia  affiliates;  and the series of  transactions
which  closed on October 1, 1998 and  February  26, 1999  whereby  Insignia  and
Insignia Properties Trust, respectively,  were merged into AIMCO. The plaintiffs
seek monetary damages and equitable relief,  including  judicial  dissolution of
the  Partnership.  On June 25, 1998, the Managing General Partner filed a motion
seeking  dismissal  of the action.  In lieu of  responding  to the  motion,  the
plaintiffs  filed an amended  complaint.  The  Managing  General  Partner  filed
demurrers to the amended complaint which were heard February 1999.

Pending the ruling on such  demurrers,  settlement  negotiations  commenced.  On
November 2, 1999,  the parties  executed and filed a Stipulation  of Settlement,
settling claims, subject to court approval, on behalf of the Partnership and all
limited partners who owned units as of November 3, 1999. Preliminary approval of
the  settlement  was obtained on November 3, 1999 from the Court,  at which time
the Court set a final  approval  hearing for  December  10,  1999.  Prior to the
December  10,  1999  hearing,  the  Court  received  various  objections  to the
settlement, including a challenge to the Court's preliminary approval based upon
the alleged lack of authority of prior lead counsel to enter the settlement.  On
December 14, 1999, the Managing  General  Partner and its affiliates  terminated
the  proposed  settlement.  In  February  2000,  counsel  for some of the  named
plaintiffs filed a motion to disqualify plaintiff's lead and liaison counsel who
negotiated  the  settlement.  On June  27,  2000,  the  Court  entered  an order
disqualifying  them  from the case and an  appeal  was  taken  from the order on
October 5, 2000. On December 4, 2000, the Court  appointed the law firm of Lieff
Cabraser  Heimann & Bernstein  LLP as new lead  counsel for  plaintiffs  and the
putative class.  Plaintiffs filed a third amended complaint on January 19, 2001.
On March 2, 2001,  the  Managing  General  Partner  and its  affiliates  filed a
demurrer to the third amended  complaint.  On May 14, 2001,  the Court heard the
demurrer to the third amended  complaint.  On July 10, 2001, the Court issued an
order sustaining defendants' demurrer on certain grounds.  Plaintiffs have until
August 16, 2001 to file a fourth amended complaint. The Managing General Partner
does  not  anticipate  that  any  costs,  whether  legal  or  settlement  costs,
associated  with  this  case  will  be  material  to the  Partnership's  overall
operations.

Estate of Harry  Schubert v.  National  Property  Investors  4, Civil Action No.
97-09129, Court of Common Pleas of Bucks County, Pennsylvania.  During 1998, the
Plaintiff brought action against the Partnership  alleging that as the result of
carbon monoxide and methane  poisoning due to a malfunctioning  heat unit in the
deceased's   apartment  at  the  Partnership's   property,   the  decedent  lost
consciousness for several hours, suffered respiratory arrest, and suffered other
pains and injuries. The Plaintiff alleges breach of contract,  fraud, violations
of the Unfair Trade Practices and Consumer  Protection Law and negligence.  This
matter is currently in the preliminary stages of discovery.  The Partnership has
filed a motion for summary judgment to have the court dismiss the claims against
the  Partnership,  and this motion is currently  pending  before the court.  The
Partnership intends to vigorously defend this matter.

The  Partnership is unaware of any other pending or outstanding  litigation that
is not of a routine nature arising in the ordinary course of business.

ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The  matters  discussed  in this Form  10-QSB  contain  certain  forward-looking
statements  and  involve  risks and  uncertainties  (including  changing  market
conditions,   competitive  and  regulatory   matters,   etc.)  detailed  in  the
disclosures  contained  in this  Form  10-QSB  and the  other  filings  with the
Securities and Exchange  Commission made by the  Partnership  from time to time.
The  discussion  of  the  Partnership's  business  and  results  of  operations,
including  forward-looking  statements pertaining to such matters, does not take
into  account  the  effects of any  changes to the  Partnership's  business  and
results of operation.  Accordingly,  actual results could differ materially from
those  projected in the  forward-looking  statements  as a result of a number of
factors, including those identified herein.

The Partnership's investment property consists of one apartment complex, Village
of Pennbrook Apartments,  located in Falls Township,  Pennsylvania.  The average
occupancy  was 97% and 96% for the six month  periods  ended June 30, 2001,  and
2000, respectively.

Results of Operations

The Partnership  realized net income of approximately  $640,000 and $622,000 for
the six month periods ended June 30, 2001 and 2000,  respectively.  The increase
in net income  for the six months  ended  June 30,  2001 is  attributable  to an
increase in total revenues largely offset by an increase in total expenses.  The
increase in total  revenues is primarily due to an increase in rental income and
by a slight increase in other income. The increase in rental income is due to an
increase in average rental rates at the Partnership's  investment property and a
slight  increase in occupancy.  The increase in other income is primarily due to
an increase in laundry  income.  The increase in total expenses is primarily the
result of  increased  operating  and  depreciation  expenses.  The  increase  in
operating  expense is  primarily  due to an increase in the cost of natural gas.
Depreciation  expense  increased  as  a  result  of  property  improvements  and
replacements  placed into service at Village of Pennbrook  Apartments during the
past twelve months.

The Partnership  realized net income of approximately  $427,000 and $276,000 for
the three months ended June 30, 2001 and 2000, respectively. The increase in net
income is primarily due to an increase in total revenues offset by a decrease in
total  expenses.  The increase in total revenues is due to an increase in rental
revenues.  Rental revenues increased primarily due to an increase in the average
rental rates. Total expenses decreased due to decreases in operating and general
and  administrative  expense,  offset  slightly by an  increase in  depreciation
expense. The decrease in general and administrative expense was primarily due to
legal costs  during 2000 for a legal case  disclosed  in the  Registrant's  Form
10-QSB.  Operating  expense  decreased due to a decrease in the yard and grounds
contract  expense.  Depreciation  expense  increased  as a  result  of  property
improvements  and  replacements  placed  into  service at  Village of  Pennbrook
Apartments during the past twelve months.

Included  in general  and  administrative  expenses  are  reimbursements  to the
Managing General Partner allowed under the Partnership Agreement associated with
its  management  of the  Partnership.  Costs  associated  with the quarterly and
annual  communications  with investors and regulatory  agencies,  and the annual
audit required by the Partnership Agreement are also included.

As part of the ongoing  business plan of the  Partnership,  the Managing General
Partner  monitors the rental market  environment of its  investment  property to
assess the feasibility of increasing rents,  maintaining or increasing occupancy
levels and protecting  the  Partnership  from increases in expenses.  As part of
this plan, the Managing General Partner attempts to protect the Partnership from
the burden of  inflation-related  increases in expenses by increasing  rents and
maintaining a high overall  occupancy  level.  However,  due to changing  market
conditions,  which  can  result  in the use of  rental  concessions  and  rental
reductions to offset softening market conditions, there is no guarantee that the
Managing General Partner will be able to sustain such a plan.

Capital Resources and Liquidity

At June 30, 2001, the Partnership had cash and cash equivalents of approximately
$995,000 as compared to  approximately  $257,000 at June 30,  2000.  For the six
months ended June 30, 2001, cash and cash  equivalents  decreased  approximately
$81,000  from  December  31,  2000.  This  decrease  was  due  to  approximately
$1,216,000  and $443,000 of cash used in  financing  and  investing  activities,
respectively,  and partially offset by approximately $1,578,000 of cash provided
by  operating  activities.  Cash  used  in  financing  activities  consisted  of
distributions paid to the partners.  Cash used in investing activities consisted
of property  improvements  and  replacements  slightly offset by net withdrawals
from restricted escrows held by the mortgage lender. The Partnership invests its
working capital reserves in interest bearing accounts.

The Managing  General Partner has extended to the Partnership a $300,000 line of
credit.  At the present time, the  Partnership  has no  outstanding  amounts due
under this line of credit.  Based on present plans, the Managing General Partner
does not anticipate  the need to borrow in the near future.  Other than cash and
cash equivalents,  the line of credit is the Partnership's only unused source of
liquidity.

The sufficiency of existing  liquid assets to meet future  liquidity and capital
expenditure   requirements   is  directly   related  to  the  level  of  capital
expenditures required at the property to adequately maintain the physical assets
and other operating  needs of the Partnership and to comply with Federal,  state
and local legal and regulatory  requirements.  Approximately $3,570,000 has been
budgeted for capital  improvements at Village of Pennbrook during the year 2001,
consisting  primarily of cabinet  enhancements,  floor  covering  and  appliance
replacements,  air conditioning units, and parking lot improvements.  During the
six months ended June 30, 2001, the Partnership completed approximately $414,000
of budgeted capital improvements at Village of Pennbrook consisting primarily of
air conditioning  units,  appliance  replacements,  structural  improvements and
water heater and floor covering  replacements.  These capital  improvements were
funded  from  operating  cash  flows  and   replacement   reserves.   Additional
improvements may be considered and will depend on the physical  condition of the
property as well as replacement reserves and anticipated cash flows generated by
the  property.  The  capital  improvements  will  be  incurred  only  if cash is
available from operations or from partnership  reserves. To the extent that such
budgeted capital  improvements are completed,  the  Partnership's  distributable
cash flow, if any, may be adversely affected at least in the short term.

The Partnership's  current assets are thought to be sufficient for any near-term
needs  (exclusive  of capital  improvements)  of the  Partnership.  The mortgage
indebtedness  of  $19,300,000  consists  of monthly  interest  only  payments of
approximately  $118,000  at a stated  rate of 7.33%.  The  mortgage  matures  on
November 1, 2003,  with the  principal  due on the maturity  date.  The Managing
General  Partner  will attempt to refinance  such  indebtedness  and/or sell the
property  prior to such maturity  date. If the property  cannot be refinanced or
sold for a  sufficient  amount,  the  Partnership  will risk losing the property
through foreclosure.

Cash distributions from operations of approximately  $1,216,000 were paid during
the six months ended June 30, 2001, of which  approximately  $1,204,000 was paid
to the limited partners ($20.06 per limited partnership unit).

Cash distributions from operations of approximately  $1,464,000 were paid during
the six months ended June 30, 2000, of which  approximately  $1,449,000 was paid
to the limited partners ($24.15 per limited  partnership  unit). At December 31,
1999, a distribution payable of approximately $551,000  (approximately  $545,000
to the limited partners or $9.08 per limited  partnership  unit) was accrued and
subsequently  paid in January 2000.  The  Partnership's  distribution  policy is
reviewed on a quarterly  basis.  Future  cash  distributions  will depend on the
levels of net cash generated from operations, the availability of cash reserves,
and the timing of the debt maturity,  refinancing,  and/or property sale.  There
can be no assurance that the  Partnership  will generate  sufficient  funds from
operations after required capital  improvements to permit further  distributions
to its partners in the remainder of 2001 or subsequent periods.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates  owned 44,822 limited  partnership  units
(the "Units") in the Partnership representing 74.70% of the outstanding Units at
June 30, 2001. A number of these Units were  acquired  pursuant to tender offers
made by AIMCO or its  affiliates.  It is possible  that AIMCO or its  affiliates
will  make  one  or  more  additional  offers  to  acquire   additional  limited
partnership  interests in the  Partnership  for cash or in exchange for units in
the operating partnership of AIMCO. Under the Partnership Agreement, unitholders
holding a majority of the Units are  entitled  to take action with  respect to a
variety of matters,  which would include without  limitation,  voting on certain
amendments  to the  Partnership  Agreement  and  voting to remove  the  Managing
General  Partner.  As a result of its  ownership  of  74.70% of the  outstanding
Units,  AIMCO is in a position to influence all voting decisions with respect to
the Registrant.  When voting on matters,  AIMCO would in all likelihood vote the
Units it acquired in a manner  favorable to the interest of the Managing General
Partner because of its affiliation with the Managing  General Partner.  However,
with respect to 26,466 units, Insignia Properties, LP, an affiliate of AIMCO, is
required to vote such Units: (i) against any increase in compensation payable to
the Managing  General  Partner or to  affiliates;  and (ii) on all other matters
submitted  by it  or  its  affiliates,  in  proportion  to  the  votes  cast  by
non-tendering  unitholders.  Except for the foregoing,  no other limitations are
imposed on AIMCO's or Insignia  Properties,  L.P.'s ability to influence  voting
decisions with respect to the Partnership.



<PAGE>




                           PART II - OTHER INFORMATION


ITEM 1.     LEGAL PROCEEDINGS

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial  Group,  Inc., et al. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs  named as defendants,  among others,
the  Partnership,  its Managing  General Partner and several of their affiliated
partnerships  and corporate  entities.  The action  purports to assert claims on
behalf of a class of limited  partners and derivatively on behalf of a number of
limited  partnerships  (including  the  Partnership)  which are named as nominal
defendants,  challenging,  among other things,  the  acquisition of interests in
certain general partner entities by Insignia Financial Group, Inc.  ("Insignia")
and entities which were, at one time, affiliates of Insignia; past tender offers
by the Insignia affiliates to acquire limited  partnership units;  management of
the  partnerships  by the Insignia  affiliates;  and the series of  transactions
which  closed on October 1, 1998 and  February  26, 1999  whereby  Insignia  and
Insignia Properties Trust, respectively,  were merged into AIMCO. The plaintiffs
seek monetary damages and equitable relief,  including  judicial  dissolution of
the  Partnership.  On June 25, 1998, the Managing General Partner filed a motion
seeking  dismissal  of the action.  In lieu of  responding  to the  motion,  the
plaintiffs  filed an amended  complaint.  The  Managing  General  Partner  filed
demurrers to the amended complaint which were heard February 1999.

Pending the ruling on such  demurrers,  settlement  negotiations  commenced.  On
November 2, 1999,  the parties  executed and filed a Stipulation  of Settlement,
settling claims, subject to court approval, on behalf of the Partnership and all
limited partners who owned units as of November 3, 1999. Preliminary approval of
the  settlement  was obtained on November 3, 1999 from the Court,  at which time
the Court set a final  approval  hearing for  December  10,  1999.  Prior to the
December  10,  1999  hearing,  the  Court  received  various  objections  to the
settlement, including a challenge to the Court's preliminary approval based upon
the alleged lack of authority of prior lead counsel to enter the settlement.  On
December 14, 1999, the Managing  General  Partner and its affiliates  terminated
the  proposed  settlement.  In  February  2000,  counsel  for some of the  named
plaintiffs filed a motion to disqualify plaintiff's lead and liaison counsel who
negotiated  the  settlement.  On June  27,  2000,  the  Court  entered  an order
disqualifying  them  from the case and an  appeal  was  taken  from the order on
October 5, 2000. On December 4, 2000, the Court  appointed the law firm of Lieff
Cabraser  Heimann & Bernstein  LLP as new lead  counsel for  plaintiffs  and the
putative class.  Plaintiffs filed a third amended complaint on January 19, 2001.
On March 2, 2001,  the  Managing  General  Partner  and its  affiliates  filed a
demurrer to the third amended  complaint.  On May 14, 2001,  the Court heard the
demurrer to the third amended  complaint.  On July 10, 2001, the Court issued an
order sustaining defendants' demurrer on certain grounds.  Plaintiffs have until
August 16, 2001 to file a fourth amended complaint. The Managing General Partner
does  not  anticipate  that  any  costs,  whether  legal  or  settlement  costs,
associated  with  this  case  will  be  material  to the  Partnership's  overall
operations.

Estate of Harry  Schubert v.  National  Property  Investors  4, Civil Action No.
97-09129, Court of Common Pleas of Bucks County, Pennsylvania.  During 1998, the
Plaintiff brought action against the Partnership  alleging that as the result of
carbon monoxide and methane  poisoning due to a malfunctioning  heat unit in the
deceased's   apartment  at  the  Partnership's   property,   the  decedent  lost
consciousness for several hours, suffered respiratory arrest, and suffered other
pains and injuries. The Plaintiff alleges breach of contract,  fraud, violations
of the Unfair Trade Practices and Consumer  Protection Law and negligence.  This
matter is currently in the preliminary stages of discovery.  The Partnership has
filed a motion for summary judgment to have the court dismiss the claims against
the  Partnership,  and this motion is currently  pending  before the court.  The
Partnership intends to vigorously defend this matter.




<PAGE>


ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

            a)    Exhibits:

                  None.

            b)    Reports on Form 8-K:

                  None filed during the quarter ended June 30, 2001.




<PAGE>

                                   SIGNATURES



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.



                                    NATIONAL PROPERTY INVESTORS 4


                                    By:   NPI EQUITY INVESTMENTS, INC.
                                          Managing General Partner


                                    By:   /s/Patrick J. Foye
                                          Patrick J. Foye
                                          Executive Vice President


                                    By:   /s/Martha L. Long
                                          Martha L. Long
                                          Senior Vice President
                                          and Controller


                                    Date: