UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                      WASHINGTON, DC  20549

                            FORM 10-K

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

For the fiscal year ended        December 31, 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                  33-11907
                       ------------------------------------------

                DIVERSIFIED HISTORIC INVESTORS IV
-----------------------------------------------------------------
     (Exact name of registrant as specified in its charter)

      Pennsylvania                                     23-2440837
-------------------------------                        ----------
(State or other jurisdiction of                 (I.R.S. Employer
incorporation or organization)                 Identification No.)

       1521  LOCUST  STREET,   PHILADELPHIA, PA  19102
-----------------------------------------------------------------
(Address of principal executive offices)       (Zip Code)

Registrant's telephone number, including area code (215)557-9800
                                                   --------------

Securities registered pursuant to Section 12(b) of the Act: NONE
                                                            ----

Securities registered pursuant to Section 12(g) of the Act: 8,285.7 Units
                                                            --------------
             UNITS OF LIMITED PARTNERSHIP INTEREST
-----------------------------------------------------------------
                        (Title of Class)

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

Indicate  by  check  mark  if  disclosure  of  delinquent  filers
pursuant  to Item 405 of Regulation S-K is not contained  herein,
and  will not be contained to the best of registrant's knowledge,
in  definitive  proxy or information statements  incorporated  by
reference in Part III of this Form 10-K or any amendment to  this
Form 10-K. [   ]

Aggregate  market  value of Units held by non-affiliates  of  the
Registrant: Not Applicable*
            ---------------

*  Securities  not quoted in any trading market  to  Registrant's
knowledge.

<PAGE>
                             PART I

Item 1.   Business

          a. General Development of Business

              Diversified Historic Investors IV ("Registrant") is
a  limited partnership formed in 1987 under Pennsylvania law.  As
of December 31, 2001, Registrant had outstanding 8,285.7 units of
limited partnership interest (the "Units").

              Registrant is presently in its operating stage.  It
originally  owned  three  properties or interests  therein.   One
property  has  been sold.  It currently owns two properties.  See
Item  2.  Properties, for a description thereof. For a discussion
of  the  operations  of  the Registrant, See  Part  II,  Item  7.
Management's  Discussion and Analysis of Financial Condition  and
Results of Operations.

               The   following   is  a  summary  of   significant
transactions involving the Registrant's interests:

              During 1994, the Registrant converted the Henderson
Riverfront   Apartments  owned  by  700  Commerce  Mall   General
Partnership  ("CMGP"), a Louisiana general partnership  in  which
the  Registrant owns a 95% interest, into condominiums and  began
offering the units for sale. Because of mortgage underwriting and
banking  market conditions, the seller, CMGP, provided  financing
for  a  large  percentage of the units sold. As of  December  31,
1996,  all  61  units  had been sold for an aggregate  amount  of
$6,009,745  ($4,055,459  net  of  selling  expenses  and  capital
expenditures).  The units sold ranged in price  from  $71,250  to
$127,065.   Of  the units sold, 46 of the buyers  opted  for  the
seller  provided  financing with loans ranging  from  $62,700  to
$181,900 (represents one mortgage secured by two units).

           On  December 30, 1997, the mortgage loans  were  sold.
These  mortgages were "nonconforming" which means that they could
not  be  sold  on  the  standard secondary market.  However,  the
Registrant   believed  that  then  current   favorable   economic
environment   provided  an  unusual  opportunity  to   sell   the
mortgages.  Any deterioration in the real estate markets  or  the
interest rate environment would have substantially decreased  the
value  of  the  mortgage  loans  and  would  have  increased  the
likelihood of defaults thereunder. The loans were sold for  85.5%
of their aggregate face value.  Included in operations in 1997 is
a loss of $448,957 related to the sale of the loans.

          b. Financial Information about Industry Segments

             The Registrant operates in one industry segment.

          c. Narrative Description of Business

             Registrant is in the business of operating, holding,
selling,  exchanging  and  otherwise dealing  in  and  with  real
properties  containing improvements that are "Certified  Historic
Structures," as such term is defined in the Internal Revenue Code
(the   "Code")  for  use  as  apartments,  offices,  hotels   and
commercial  spaces,  or any combination thereof,  or  low  income
housing eligible for the tax credit provided by Section 42 of the
Code, and such other uses as the Registrant's general partner may
deem appropriate.

             Since the Registrant's inception, all the properties
either acquired by the Registrant, or the subsidiary partnerships
in  which  it  has  an  interest,  have  been  rehabilitated  and
certified  as historic structures and have received  the  related
investment  tax credit.  All the properties are held  for  rental
operations.   At  this  time  it  is  anticipated  that  the  two
remaining  properties will continue to be held for  this  purpose
until  such  time as real property values in the areas  in  which
these  properties are located begin to increase.  At  that  time,
the Registrant will re-evaluate its investment strategy regarding
the properties.

              As  of  December  31,  2001, Registrant  owned  two
properties,  one each located in North Carolina and Pennsylvania.
In  total,  the  properties contain 22 apartment  units.   As  of
December 31, 2001, 21 of the apartment units were under lease  at
monthly rental rates ranging from $500 to $1,095.  Rental of  the
apartments  is  not  expected  to be  seasonal.   For  a  further
discussion of the properties, see Item 2. Properties.

              The  Registrant is affected by and subject  to  the
general  competitive  conditions of the residential  real  estate
industry.  As a result of the overbuilding that occurred  in  the
1980's,  the  competition for residential tenants  in  the  local
markets   where  the  Registrant's  properties  are  located   is
generally  strong.  The  properties  held  for  rental   by   the
Registrant  are  located  in the Old City  Historic  District  in
Philadelphia, Pennsylvania and Concord, North Carolina.  In  both
areas   there   are   several  similar   historically   certified
rehabilitated buildings. However, there is no organization  which
holds  a  dominant position in the residential housing market  in
either   of  the  geographic  areas  in  which  the  Registrant's
properties  are located. The apartment market remains  stable  in
both areas and new construction remains virtually nonexistent  in
Concord,  North Carolina although the availability  of  favorable
home financing has placed pressure on the rental tenant base. The
Registrant is able to raise rental rates and stay fully  occupied
in  the  Philadelphia property but at the same time,  competitive
pressure exists from other buildings in the Old City area and the
emerging Northern Liberties neighborhood.

               Registrant   has   no   employees.    Registrant's
activities  are overseen by Brandywine Construction & Management,
Inc., ("BCMI"), a real estate management firm.

           d.  Financial Information About Foreign  and  Domestic
Operations and Export Sales.

              See  Item 8. Financial Statements and Supplementary
Data.

Item 2.   Properties

            As   of  December  31,  2001,  Registrant  owned  two
properties, or interests therein, as follows:

           a. The Brass Works - consists of 12 apartments located
at 231-237 Race Street, Philadelphia, Pennsylvania.  In May 1987,
Registrant acquired and rehabilitated the Property for $1,200,000
($111 per square foot)("sf") funded by its equity contribution.

              The  property is managed by BCMI.  At December  31,
2001,  11  of  the  apartment units were under lease  (99%)  with
monthly  rents  ranging  from $650 to  $1,095.   All  leases  are
renewable,  one-year leases. The occupancy for the previous  four
years  was  100% for 2000, 100% for 1999, and 100% for 1998.  The
monthly  rental range was $650 to $925 during 2000, $690 to  $875
during  1999, $665 to $815 during 1998, and $665 to  $755  during
1997. The monthly rental range increased to its present level due
to  the  increase  in popularity of the Old City neighborhood  in
which  the property is located, and the sustained ability of  the
property  to be fully occupied (other than transitory  vacancies)
at  increasing  monthly  rental rates.  For  tax  purposes,  this
property has a federal tax basis of $1,053,923 and is depreciated
using  the straight-line method with a useful life of 27.5 years.
The annual real estate taxes are $9,424.92, which is based on  an
assessed value of $115,200 taxed at a rate of $8.264 per $100. No
one  tenant occupies ten percent or more of the building.  It  is
the opinion of the management of the Registrant that the property
is adequately covered by insurance.

           b.  Locke  Mill  Plaza - consists  of  10  residential
apartment  condominium  units in a 169 condominium  unit  project
located  on  Buffalo  Avenue at Union Street  in  Concord,  North
Carolina.  In  November 1988, Registrant acquired the  units  for
$665,000 funded by its equity contribution.

             The property is managed by BCMI.  As of December 31,
2001, 10 units were under lease (100%) with monthly rates ranging
from $500 to $560. All leases are renewable, one-year leases. The
occupancy as of year end for the previous four years was 60%  for
2000,  80% for 1999, 100% for 1998, and 89% for 1997. The monthly
rental range has been approximately the same since 1997.  For tax
purposes,  this property has a federal tax basis of $623,769  and
is  depreciated using the straight-line method with a useful life
of  27.5 years. The annual real estate taxes are $2,663.09  which
is based on an assessed value of $475,550 taxed at a rate of $.56
per  $100.   No one tenant occupies ten percent or  more  of  the
building.   It is the opinion of the management of the Registrant
that the property is adequately covered by insurance.

Item 3.   Legal Proceedings

           a.  To the best of its knowledge, Registrant is not  a
party  to, nor is any of its property the subject of, any pending
material legal proceeding.

Item 4.   Submission of Matters to a Vote of Security Holders

          No matter was submitted during the fiscal years covered
by this report to a vote of security holders.


                             PART II

Item  5.    Market  for  Registrant's Common Equity  and  Related
Stockholder Matters

           a.  There is no established public trading market  for
the  Units.  Registrant does not anticipate any such market  will
develop.   Trading  in  the Units occurs solely  through  private
transactions. The Registrant is not aware of the prices at  which
trades  occur. Registrant's records indicate that 38  units  were
sold or exchanged in 2001.

           b.  As  of December 31, 2001, there were 1,009  record
holders of Units.

          c.   In 2001 and 2000 Registrant made no distributions out of
             available cash flow.

Item 6.   Selected Financial Data

           The following selected financial data are for the five
years  ended  December  31, 2001. The  data  should  be  read  in
conjunction  with the consolidated financial statements  included
elsewhere  herein.  This data is not covered by  the  independent
auditors' report.

                    2001       2000       1999       1998       1997
                    ----       ----       ----       ----       ----
Rental income    $203,679   $188,729   $194,123   $190,058   $180,312
Interest
 income             8,944     10,061     11,328     35,117    274,358
Net loss          (69,298)   (86,597)   (92,209)   (60,005)  (541,583)
Net loss per
 unit               (8.28)    (10.35)    (11.02)     (7.17)    (64.71)
Total assets
 (net of
 depreciation
 and
 amortization)  1,520,361  1,590,514  1,675,218  2,029,350  4,802,128
Dividends
 (distributions)        0          0    276,190  2,529,533    276,190


Item 7.   Management's Discussion and Analysis of Financial
          Conditions and Results of Operations

          (1)  Liquidity

              At  December  31,  2001,  Registrant  had  cash  of
approximately $336,033.  The Registrant expects that those  funds
plus the cash generated from operations at each property will  be
sufficient to fund the operating expenses of the properties.

              As  of December 31, 2001, Registrant had restricted
cash  of  $25,042 consisting primarily of funds held as  security
deposits,  replacement reserves, escrows for taxes and insurance.
As a consequence of these restrictions as to use, Registrant does
not deem these funds to be a source of liquidity.

          (2)  Capital Resources

               Any  capital  expenditures  needed  are  generally
replacement  items and are funded out of cash from operations  or
replacement reserves, if any. The Registrant is not aware of  any
factors  which would cause historical capital expenditure  levels
not  to  be indicative of capital requirements in the future  and
accordingly,  does  not  believe that  it  will  have  to  commit
material  resources  to capital investments for  the  foreseeable
future.

          (3)  Results of Operations

              During  2001,  Registrant incurred a  net  loss  of
$69,298 ($8.28) per limited partnership unit compared to  a  loss
of  $86,597 ($10.35 per limited partnership unit) in 2000  and  a
loss of $92,209 ($11.02 per limited partnership unit) in 1999.

             Rental income was $203,679 in 2001, $188,729 in 2000
and $194,128 in 1999. The increase from 2000 to 2001 is due to an
increase  in average occupancy (71% to 88%) at Locke  Mill  Plaza
and  an increase in average rental rates at the Brass Works.  The
decrease from 1999 to 2000 is due to a decrease in rental  income
at  Locke Mill Plaza due to a decrease in average occupancy  (93%
to 71%) partially offset by an increase in rental income at Brass
Works due to an increase in average rental rates.

             Interest income was $8,944 in 2001, $10,061 in 2000,
and $11,328 in 1999. The decrease in interest income from 2000 to
2001  is  due  to  decreasing interest  rates.  The  decrease  in
interest  income  from 1999 to 2000 is due to a decrease  in  the
average invested cash balances.

              Rental  operation  expense was  $117,381  in  2001,
$119,337  in  2000 and $129,346 in 1999. The decrease  in  rental
operation  expense  from 2000 to 2001 is due  to  a  decrease  in
maintenance expense at the Brass Works, offset by an increase  in
marketing  and leasing expense at the Locke Mill apartments.  The
decrease  in maintenance expense at the Brass Works is due  to  a
decrease  in  apartment  preparation  expense.  The  increase  in
marketing  and leasing expense resulted in the increase  in  unit
occupancy. The decrease in rental operation expense from 1999  to
2000  is due to a decrease in legal expense. The decrease is  due
to  the  settlement of a tenant claim at the Henderson Apartments
in 1999.

              General  and administrative expense was $72,000  in
2001,  $74,425  in 2000 and $77,000 in 1999. The  decreases  from
1999  to  2000 and 2000 to 2001 are due to the decrease  in  fees
paid to the general partner.

             During 2001, income of $36,000 was recognized at the
Registrant's  three properties compared to $19,000 of  income  in
2000  and  $20,000  of income in 1999. A discussion  of  property
operations/activities follows:

              In 2001, Registrant recognized net income of $0  at
The Henderson Riverfront Apartments compared to net income of  $0
in 2000 and a net loss of $5,000 in 1999. The net loss in 1999 is
due  to  legal expenses for the settlement of a tenant  claim  in
1999 net of interest income.

             In 2001, Registrant recognized net income of $36,000
including  $49,000  in depreciation expense at  the  Brass  Works
compared   to  net  income  of  $21,000,  including  $49,000   in
depreciation  expense  in  2000,  and  net  income  of   $20,000,
including  $49,000 depreciation expense in 1999. The increase  in
income  from 2000 to 2001 is due to an increase in rental  income
combined with a decrease in maintenance expense. The increase  in
rental income is due to an increase in average rental rates.  The
decrease in maintenance expense is due to a decrease in apartment
preparation expense. The increase in income from 1999 to 2000  is
due to an increase in rental income partially offset by increases
in  maintenance expense and advertising expense. The increase  in
rental income is due to an increase in monthly rental rates.  The
increase  in  advertising is due to an increase  in  signage  and
marketing  expenses, and the increase in maintenance  expense  is
due to nonrecurring repairs at the property.

              In  2001,  Registrant incurred a loss of $7,000  at
Locke  Mill  Plaza  including  $27,000  of  depreciation  expense
compared  to  a loss of $9,000 including $27,000 of  depreciation
expense in 2000 compared to income of $5,000 including $26,000 of
depreciation expense in 1999. The decrease in loss from  2000  to
2001 is due to an increase in rental income, partially offset  by
an  increase  in marketing and leasing expense. The  increase  in
rental income is due to an increase in average occupancy (71%  to
88%).  The increase in marketing and leasing expense resulted  in
the increase in unit occupancy. The decrease from 1999 to 2000 is
due to the decrease in rental income due to a decrease in average
occupancy (93% to 71%).

Item  7A.  Quantitative and Qualitative Disclosures about  Market
Risk

          Not applicable.

Item 8.   Financial Statements and Supplementary Data

          Registrant is not required to furnish the supplementary
financial information referred to in Item 302 of Regulation S-K.


<PAGE>

                  Independent Auditor's Report



To the Partners of
Diversified Historic Investors IV

We  have  audited the accompanying consolidated balance sheet  of
Diversified   Historic  Investors  IV  (a  Pennsylvania   Limited
Partnership)  and subsidiaries as of December 31, 2001  and  2000
and the related statements of operations and changes in partners'
equity and cash flows for the years ended December 31, 2001, 2000
and  1999.   These  consolidated  financial  statements  are  the
responsibility    of   the   Partnership's    management.     Our
responsibility  is  to  express an  opinion  on  these  financial
statements based on our audit.

We  conducted  our  audit in accordance with  auditing  standards
generally  accepted  in  the United  States  of  America.   Those
standards  require that we plan and perform the audit  to  obtain
reasonable  assurance  about whether the  consolidated  financial
statements are free of material misstatement.  An audit  includes
examining,  on a test basis, evidence supporting the amounts  and
disclosures in the financial statements.  An audit also  includes
assessing   the   accounting  principles  used  and   significant
estimates  made by management, as well as evaluating the  overall
financial  statement  presentation.  We believe  that  our  audit
provides a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to
above  present  fairly, in all material respects,  the  financial
position of Diversified Historic Investors IV as of December  31,
2001  and 2000, and the results of operations and cash flows  for
the  years  ended December 31, 2001, 2000 and 1999, in conformity
with  accounting  principles generally  accepted  in  the  United
States of America.

Our audits were made for the purpose of forming an opinion on the
basic  financial  statements taken as a whole.  The  Schedule  of
Real Estate and Accumulated Depreciation beginning on page 19  is
presented for the purposes of additional analysis and  is  not  a
required   part   of   the  basic  financial  statements.    Such
information has been subjected to the auditing procedures applied
in  the  audit  of  the basic financial statements  and,  in  our
opinion, is fairly stated in all material respects in relation to
the basic financial statements taken as a whole.




Gross, Kreger & Passio
Philadelphia, Pennsylvania
March 19, 2002

<PAGE>

                DIVERSIFIED HISTORIC INVESTORS IV
                     (a limited partnership)

           INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

                AND FINANCIAL STATEMENT SCHEDULES


Consolidated financial statements:                            Page

   Consolidated Balance Sheets at December 31, 2001  and
2000                                                           10

   Consolidated Statements of Operations for  the  Years
Ended December 31, 2001, 2000, and 1999                        11

   Consolidated  Statements  of  Changes  in   Partners'
Equity  for the Years Ended December 31, 2001,  2000,
and 1999                                                       12

   Consolidated Statements of Cash Flows for  the  Years
Ended December 31, 2001, 2000, and 1999                        13

   Notes to consolidated financial statements                 14-17

Financial statement schedules:

   Schedule   XI   -   Real   Estate   and   Accumulated       19
Depreciation
   Notes to Schedule XI                                        20








All  other  schedules are omitted because they are not applicable
or   the  required  information  is  shown  in  the  consolidated
financial statements or notes thereto.

<PAGE>


                DIVERSIFIED HISTORIC INVESTORS IV
                     (a limited partnership)

                   CONSOLIDATED BALANCE SHEETS

                   December 31, 2001 and 2000

                             Assets

                                           2001           2000
                                           ----           ----
Rental properties at cost:
 Land                                  $   74,324    $   74,324
 Buildings and improvements             2,246,555     2,246,555
 Furniture and fixtures                    44,660        29,814
                                       ----------    ----------
                                        2,365,539     2,350,693
  Less - accumulated depreciation      (1,227,712)   (1,135,171)
                                       ----------    ----------
                                        1,137,827     1,215,522
Cash and cash equivalents                 336,033       330,149
Restricted cash                            25,042        22,787
Other assets                               21,459        22,056
                                       ----------    ----------
Total                                  $1,520,361    $1,590,514
                                       ==========    ==========

                Liabilities and Partners' Equity

Liabilities:

 Accounts payable - trade              $  16,268     $   44,679
 Other liabilities                        28,909          1,378
 Tenant security deposits                 12,290         12,265
                                      ----------     ----------
    Total liabilities                     57,467         58,322
Partners' equity                       1,462,894      1,532,192
                                      ----------     ----------
Total                                 $1,520,361     $1,590,514
                                      ==========     ==========

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

<PAGE>

                DIVERSIFIED HISTORIC INVESTORS IV
                     (a limited partnership)

              CONSOLIDATED STATEMENTS OF OPERATIONS

      For the Years Ended December 31, 2001, 2000 and 1999



                                    2001      2000     1999
                                    ----      ----     ----
Revenues:
 Rental income                   $203,679  $188,729  $194,123
 Interest income                    8,944    10,061    11,328
                                 --------  --------  --------
 Total revenues                   212,623   198,790   205,451
                                 --------  --------  --------
Costs and expenses:
 Rental operations                117,380   119,337   129,346
 General and administrative        72,000    74,425    77,000
 Depreciation and amortization     92,541    91,625    91,314
                                 --------  --------  --------
  Total costs and expenses        281,921   285,387   297,660
                                 --------  --------  --------
Net loss                        ($ 69,298)($ 86,597)($ 92,209)
                                 ========  ========  ========
Net  loss per limited
 partnership unit               ($   8.28)($  10.35)($  11.02)
                                 ========  ========  ========

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

<PAGE>



                DIVERSIFIED HISTORIC INVESTORS IV
                     (a limited partnership)

     CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' EQUITY

      For the Years Ended December 31, 2001, 2000 and 1999


                                       Dover
                                    Historic     Limited
                                    Advisors     Partners
                                     III(1)        (2)         Total
                                    --------     --------      -----
Percentage participation in
 profit or loss                       1%           99%          100%
                                      ==           ===          ====
Balance at December 31, 1998      ($427,343)   $2,414,531    $1,987,188
Net loss                               (922)      (91,287)      (92,209)
Distribution to partners            (27,619)     (248,571)     (276,190)
                                   --------    ----------    ----------
Balance at December 31, 1999       (455,884)    2,074,673     1,618,789
Net loss                               (866)      (85,731)      (86,597)
                                   --------    ----------    ----------
Balance at December 31, 2000       (456,750)    1,988,942     1,532,192
Net loss                               (693)      (68,605)      (69,298)
                                   --------    ----------    ----------
Balance at December 31, 2001      ($457,443)   $1,920,337    $1,462,894
                                   ========    ==========    ==========


 (1) General Partner

 (2)  8,285.7 limited partnership units outstanding at  December 31,
2001, 2000, and 1999.


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

<PAGE>


                DIVERSIFIED HISTORIC INVESTORS IV
                     (a limited partnership)

              CONSOLIDATED STATEMENTS OF CASH FLOWS

      For the Years Ended December 31, 2001, 2000 and 1999

                                      2001        2000         1999
                                      ----        ----         ----
Cash flows from operating
 activities:
  Net loss                         ($ 69,298)  ($ 86,597)  ($ 92,209)
  Adjustments to reconcile net loss
   to net cash provided by
   operating activities:
   Depreciation and amortization      92,541      91,625      91,314
   Changes in assets and liabilities:
   (Increase) decrease restricted
    cash                              (2,255)      2,382      (1,496)
  Decrease (increase) in other
   assets                                596      (5,044)     (9,534)
  (Decrease) increase in accounts
   payable - trade                   (28,408)      1,223      12,579
  Increase (decrease) in other
   liabilities                        27,529        (160)        717
  Increase in tenant security
   deposits                               25         830         970
                                    --------    --------    --------
    Net cash provided by
     operating activities             20,730       4,259       2,341
                                    --------    --------    --------
Cash flows from investing
 activities:
  Capital expenditures               (14,846)          0      (3,760)
                                    --------    --------    --------
    Net cash used in investing
     activities                      (14,846)          0      (3,760)
                                    --------    --------    --------
Cash flows from financing
 activities:
  Distributions to partners                0           0    (276,190)
                                    --------    --------    --------
   Net cash used in financing
    activities                             0           0    (276,190)
                                    --------    --------    --------
Increase (decrease) in cash and
 cash equivalents                      5,884       4,259    (277,609)
Cash and cash equivalents at
 beginning of year                   330,149     325,890     603,499
                                    --------    --------    --------
Cash and cash equivalents at end
 of year                            $336,033    $330,149    $325,890
                                    ========    ========    ========


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

<PAGE>

                DIVERSIFIED HISTORIC INVESTORS IV
                     (a limited partnership)

           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE A - ORGANIZATION

Diversified Historic Investors IV (the "Partnership") was  formed
in  January 1987, with Dover Historic Advisors III as the General
Partner  and  DHP,  Inc.,  (formerly Dover  Historic  Properties,
Inc.,)  as the limited partner.  Upon the admission of additional
limited partners, the initial limited partner withdrew.

The  Partnership was formed to acquire, rehabilitate, and  manage
real  properties  which  are  certified  historic  structures  as
defined in the Internal Revenue Code (the "Code"), or which  were
eligible for designation as such, utilizing the net proceeds from
the  sale  of  limited  partnership units.   Any  rehabilitations
undertaken by the Partnership were done with a view to  obtaining
certification    of   expenditures   therefor    as    "qualified
rehabilitation expenditures" as defined in the Code.

NOTE B - SIGNIFICANT ACCOUNTING POLICIES

A  summary of the significant accounting policies applied in  the
preparation of the accompanying consolidated financial statements
follows:

1.   Principles of Consolidation

The   accompanying  consolidated  financial  statements  of   the
Partnership include the accounts of one subsidiary partnership in
which   the   Partnership  had  a  controlling   interest,   with
appropriate  elimination  of inter-partnership  transactions  and
balances.   These  financial statements reflect  all  adjustments
(consisting only of normal recurring adjustments) which,  in  the
opinion of the Partnership's General Partner, are necessary for a
fair statement of the results for the year.

2.   Costs of Issuance

Costs  incurred  in  connection with the  offering  and  sale  of
limited  partnership units were charged against partners'  equity
as incurred.

3.   Depreciation

Depreciation is computed using the straight-line method over  the
estimated useful lives of the assets.  Buildings and improvements
are  depreciated  over 25 years and furniture and  fixtures  over
five years.

4.   Net Loss Per Limited Partnership Unit

The net loss per limited partnership interest (a "Unit") is based
on  the  weighted  average  number of limited  partnership  Units
outstanding during the period (8,285.7 Units in 2001,  2000,  and
1999).

5.   Income Taxes

Federal  and  state  income taxes are payable by  the  individual
partners;  therefore, no provision or liability for income  taxes
is reflected in the financial statements.

6.   Cash and Cash Equivalents

The Partnership considers all highly liquid investments purchased
with a maturity of less than three months to be cash equivalents.

7.   Concentration of Credit Risk

Financial  instruments which potentially subject the  Partnership
to  concentration of credit risk consist principally of cash  and
cash  equivalents.  The Partnership maintains its cash  and  cash
equivalents  in  financial institutions insured  by  the  Federal
Deposit  Insurance  Corporation up to $100,000  per  company.  At
December  31,  2001, uninsured funds held at one institution  are
approximately $202,000.

8.   Restricted Cash

Restricted  cash  includes  amounts  held  for  tenant   security
deposits,  real estate tax reserves and other cash restricted  as
to use.

9.   Revenue Recognition

Revenues  are  recognized  when rental  payments  are  due  on  a
straight-line  basis.  Rental payments received  in  advance  are
deferred until earned.

10.  Rental Properties

Rental properties are stated at cost.  A provision for impairment
of value is recorded when a decline in the value of a property is
determined to be other than temporary as a result of one or  more
of  the following: (1) a property is offered for sale at a  price
below  its  current  carrying value; (2) a  mortgage  loan  on  a
property   has  significant  balloon  payments  due  within   the
foreseeable  future  which  the Partnership  does  not  have  the
resources  to meet, and anticipates it will be unable  to  obtain
replacement financing or debt modification sufficient to allow it
to  continue  to  hold the property over a reasonable  period  of
time;  (3)  a  property  has been, and is expected  to  continue,
generating significant operating deficits and the Partnership  is
unable  or  unwilling  to  sustain such deficits,  and  has  been
unable,  or  anticipates  it  will  be  unable,  to  obtain  debt
modification, financing or refinancing sufficient to allow it  to
continue to hold the property for a reasonable period of time, or
(4)  a  property's  value  has  declined  based  on  management's
expectations  with respect to projected future  operational  cash
flows and prevailing economic conditions.  An impairment loss  is
indicated  when  the  undiscounted sum of estimated  future  cash
flows  from  an  asset, including estimated sales  proceeds,  and
assuming a reasonable period of ownership up to 5 years, is  less
than  the  carrying amount of the asset. The impairment  loss  is
measured  as the difference between the estimated fair value  and
the  carrying  amount of the asset. In the absence of  the  above
circumstances,  properties and improvements are stated  at  cost.
An analysis is done on an annual basis at December 31.

11.  Use of Estimates

The  preparation  of the financial statements in conformity  with
generally  accepted accounting principles requires management  to
make  estimates and assumptions that affect the amounts  reported
in  the  financial  statements  and  accompanying  notes.  Actual
results could differ from those estimates.

NOTE C - PARTNERSHIP AGREEMENT

The  significant terms of the amended and restated  Agreement  of
Limited  Partnership (the "Agreement"), as  they  relate  to  the
financial statements, follow:

The  Agreement  provides that beginning  with  the  date  of  the
admission  of  subscribers as limited partners, all distributable
cash from operations (as defined) will be distributed 90% to  the
limited partners and 10% to the General Partner.

All  distributable cash from sales or dispositions  (as  defined)
will  be distributed to the limited partners up to their original
capital  contributions plus an amount equal  to  six  percent  of
their  original capital contributions per annum on  a  cumulative
basis,  less  the  sum  of  all  prior  distributions  to   them;
thereafter,  after  receipt  by  the  General  Partner   or   its
affiliates  of  any  accrued  but unpaid  real  estate  brokerage
commissions,  the distributable cash will be distributed  15%  to
the General Partner and 85% to the limited partners.

Net  income  or  loss  from  operations  of  the  Partnership  is
allocated  1%  percent  to the General Partner  and  99%  to  the
limited partners.

NOTE D - ACQUISITIONS

The   Partnership  acquired  two  properties  and   one   general
partnership  interest in a partnership owning  a  third  property
during  the  period from May 1987 to November 1988, as  discussed
below.

In  May  1987,  the Partnership purchased a three-story  building
located  in Philadelphia, Pennsylvania consisting of 12 apartment
units.   The  cost to acquire and rehabilitate this property  was
approximately $1,200,000.

In  July  1987, the Partnership was admitted, with a 95%  general
partnership interest, to a Pennsylvania general partnership which
owned a building located in New Orleans, Louisiana consisting  of
61  apartment units, for cash contributions of $4,620,000.  As of
December 31, 1996, all of the units were sold. As of December 31,
1997,  the  mortgages  from  the  seller  provided  financing  in
connection with the sale of the units were sold.

In November 1988, the Partnership purchased 10 condominium units,
in a building located in Concord, North Carolina, for $665,000.





NOTE E - INCOME TAX BASIS RECONCILIATION

Certain  items  enter into the determination of  the  results  of
operations  in  different  time periods for  financial  reporting
("book")  purposes  and  for  income  tax  ("tax")  purposes.   A
reconciliation of net loss and partners' equity follows:

                            For the years ended December 31,
                              2001        2000        1999
                              ----        ----        ----
Net loss - book          ($  69,298) ($  86,597) ($  92,209)
Excess of book over
 tax depreciation            20,302      21,726      21,569
Minority interest
 (tax only)                    (372)       (339)        238
                           --------   ---------   ---------
Net loss - tax           ($  49,368) ($  65,210) ($  70,402)
                          =========   =========   =========

                            For the years ended December 31,
                              2001        2000        1999
                              ----        ----        ----
Partners' equity - book   $1,462,894  $1,532,192  $1,618,791
Costs of issuance          1,077,141   1,077,141   1,077,141
Cumulative tax over
 book loss                   274,659     254,730     233,343
                          ----------  ----------  ----------
Partners' equity - tax    $2,814,694  $2,864,063  $2,929,275
                          ==========  ==========  ==========

<PAGE>




                    SUPPLEMENTAL INFORMATION


<PAGE>


              DIVERSIFIED HISTORIC INVESTORS IV
                   (a limited partnership)

    SCHEDULE XI - REAL ESTATE AND ACCUMULATED DEPRECIATION
                      DECEMBER 31, 2001

                             Gross Amount
                           at which Carried
            Initial Cost    at December 31,
           to Partnership        2001
                 (b)

              Buildings       Buildings
                and             and                   Accumu-
Descrip-      Improve-         Improve-                lated
  tion   Land  ments     Land   ments       Total      Depr.
-------  ---- ---------  ---- --------      -----     -------
  (a)                                                  (d)(e)

12
apart-
ment
units
in
Phila-
delphia,
PA    $54,000 $1,209,858 $54,000 $1,589,153 $1,643,153 $  864,434

10
apart-
ment
units
in
North
Concord,
NC    $20,324    692,522  20,324    702,062    722,386    363,278
      ------- ---------- ------- ---------- ---------- ----------
      $74,324 $1,902,380 $74,324 $2,291,215 $2,365,539 $1,227,712
      ======= ========== ======= ========== ========== ==========

          Date
Descrip-  of       Date
  tion   Constr. Acquired
-------  ------- --------
  (a)      (a)

12
apart-
ment
units
in
Phila-
delphia,
PA        1988   5/22/87

10
apart-
ment
units
in
North
Concord,
NC        1988   11/30/88


<PAGE>

                DIVERSIFIED HISTORIC INVESTORS IV
                     (a limited partnership)

                      NOTES TO SCHEDULE XI

                        December 31, 2001

(A)  Each  property is a certified historic structure as  defined
     in  the  Internal  Revenue  Code  of  1986.   The  "date  of
     construction"  refers to the period in which the  properties
     were rehabilitated.

(B)  Includes  development/rehabilitation costs incurred pursuant
     to  development agreements entered into when the  properties
     were acquired.

(C)  The  aggregate  cost of real estate owned  at  December  31,
     2001,  for  Federal  income  tax purposes  is  approximately
     $1,677,692.   The   depreciable  basis  of   buildings   and
     improvements is reduced for Federal income tax  purposes  by
     the historic rehabilitation credit obtained.

(D)  Reconciliation of land, buildings and improvements:

                                       2001        2000        1999
                                       ----        ----        ----

Balance at beginning of year       $2,350,693  $2,350,693  $2,346,933
Additions during the year:
 Improvements                          14,846           0       3,760
                                   ----------  ----------  ----------
Balance at end of year             $2,365,539  $2,350,693  $2,350,693
                                   ==========  ==========  ==========

Reconciliation of accumulated depreciation:

                                       2001        2000        1999
                                       ----        ----        ----
Balance at beginning of year       $1,135,171  $1,043,546  $  952,232
Depreciation expense for the year      92,541      91,625      91,314
                                   ----------  ----------  ----------
Balance at end of year             $1,227,712  $1,135,171  $1,043,546
                                   ==========  ==========  ==========


(E)  See  Note  B  to  the consolidated financial statements  for
     depreciation methods and lives.


Item  9.    Changes  in  and Disagreements  with  Accountants  on
Accounting and
          Financial Disclosure

          None.

                            PART III

Item 10.  Directors and Executive Officers of Registrant

           a.  Identification of Directors -  Registrant  has  no
directors.

          b. Identification of Executive Officers

              The  General  Partner of the  Registrant  is  Dover
Historic   Advisors   III  (DoHA-III),  a  Pennsylvania   general
partnership.  The partners of DoHA-III are as follows:

Name                Age  Position        Term of Office  Period Served

Name         Age     Position         Term of Office    Period Served
----         ---     --------         --------------    -------------

SWDHA, Inc.   --   Partner in DoHA-III  No fixed term   Since May 1997

EPK, Inc.     --   Partner in DoHA-III  No fixed term   Since May 1997

              For  further description of DoHA-III, see paragraph
e.  of  this  Item.   There  is no arrangement  or  understanding
between  either person named above and any other person  pursuant
to which any person was or is to be selected as an officer.

           c.  Identification  of Certain Significant  Employees.
Registrant  has no employees.  Its administrative and operational
functions   are   carried  out  by  a  property  management   and
partnership administration firm.

          d. Family Relationships.  None.

            e.   Business  Experience.   DoHA-III  is  a  general
partnership  formed in 1987.  The partners of DoHA-III  are  EPK,
Inc. and SWDHA, Inc.  EPK, Inc., is managing partner of DoHA  III
and  is thus responsible for management and control of DoHA  III,
which  in  turn is responsible for the management and control  of
the  Registrant and has general responsibility and authority  for
conducting its operations.

             On May 13, 1997, SWDHA, Inc. replaced Gerald Katzoff
and  EPK,  Inc.  replaced  DHP, Inc.  as  partners  of  DoHA-III.
Spencer  Wertheimer, the President of SWDHA, Inc., is an attorney
with extensive experience in real estate activities and ventures.

              EPK, Inc. is a Delaware corporation formed for  the
purpose  of managing properties or interests therein.  EPK,  Inc.
is  a wholly-owned subsidiary of D, LTD, an entity formed in 1985
to act as the holding company for various corporations engaged in
the   development   and  management  of  historically   certified
properties and conventional real estate as well as a provider  of
financial (non-banking) services.

               The  officers  and  directors  of  EPK,  Inc.  are
described below.

              Spencer Wertheimer was appointed on May 13, 1997 as
President,  Treasurer  and  Sole  Director  of  EPK,  Inc.    Mr.
Wertheimer  is  an  attorney with extensive  experience  in  real
estate activities and ventures.

              Donna  M. Zanghi (age 44) was appointed on May  13,
1997  as  Vice President and Secretary of EPK, Inc.   Ms.  Zanghi
previously  served as Secretary and Treasurer of DHP, Inc.  since
June  14,  1993 and as a Director and Secretary/Treasurer  of  D,
LTD.   She  has been associated with DHP, Inc. and its affiliates
since 1984 except for the period from December 1986 to June  1989
and the period from November 1, 1992 to June 14, 1993.

              Michele F. Rudoi (age 36) was appointed on May  13,
1997  as  Assistant Secretary of EPK, Inc.  Ms.  Rudoi  has  also
served  as  Assistant Secretary and Director of both D,  LTD  and
DHP, Inc. from January 27, 1993.

Item 11.  Executive Compensation

           a. Cash Compensation - During 2001, Registrant did not
pay any cash compensation to DoHA-III.

           b. Compensation Pursuant to Plans - Registrant has  no
plan  pursuant to which compensation was paid or distributed,  or
is proposed to be paid or distributed in the future, to DoHA-III,
any  partner therein, or any person named in paragraph c. of Item
10 of this report.

          c. Other Compensation - Compensation not referred to in
paragraph  a.  or  paragraph b. of this  Item  was  not  paid  or
distributed during 2001 to DoHA-III, any partner therein, or  any
person named in paragraph c. of Item 10.

           d.  Compensation  of  Directors -  Registrant  has  no
directors.

           e.  Termination  of Employment and Change  of  Control
Arrangement - Registrant has no compensatory plan or arrangement,
with respect to any individual, which results or will result from
the   resignation  or  retirement  of  any  individual,  or   any
termination  of such individual's employment with  Registrant  or
from  a  change  in  control of Registrant or a  change  in  such
individual's responsibilities following such a change in control.

Item  12.   Security Ownership of Certain Beneficial  Owners  and
Management

          a. Security Ownership of Certain Beneficial Owners - No
person is known to Registrant to be the beneficial owner of  more
than five percent of the issued and outstanding Units.

           b.  Security  Ownership  of  Management  -  No  equity
securities  of  Registrant are beneficially owned by  any  person
named in paragraph c. of Item 10.

          c. Changes in Control - Registrant does not know of any
arrangement,  the  operation of which may at  a  subsequent  date
result in a change in control of Registrant.

Item 13.  Certain Relationships and Related Transactions

          Pursuant to Registrant's Amended and Restated Agreement
of   Limited  Partnership,  DoHA-III  is  entitled  to   10%   of
Registrant's  distributable cash from operations  in  each  year.
The  amount allocable to DoHA-III for 2001, 2000 and 1999 was  $0
for both 2000 and 2001, and $27,619 for 1999, respectively.

          a. Transactions with Management - Fees paid during 2001
to the general partner were $0.

           b. Certain Business Relationships - Registrant has  no
directors.

            c.  Indebtedness  of  Management  -  No  employee  of
Registrant,   Registrant's  general  partner  (or  any   employee
thereof), or any affiliate of any such person, is or has  at  any
time been indebted to Registrant.

<PAGE>
                             PART IV

Item  14. (A) Exhibits, Financial Statement Schedules and Reports
on Form 8-K.

             1.     Financial Statements:

                            a.    Consolidated Balance Sheets  at
                 December 31, 2001 and 2000.

                             b.     Consolidated  Statements   of
                 Operations for the Years Ended     December  31,
                 2001, 2000 and 1999.

                             c.     Consolidated  Statements   of
                 Changes  in Partners' Equity for  the      Years
                 Ended December 31, 2001, 2000 and 1999.

                            d.    Consolidated Statements of Cash
                 Flows  for  the  Years  Ended      December  31,
                 2001, 2000 and 1999.

                            e.    Notes to consolidated financial
                 statements.

             2.       Financial statement schedules:

                            a.    Schedule XI - Real  Estate  and
                 Accumulated Depreciation.

                           b.   Notes to Schedule XI.

             3.  Exhibits:

             (a) Exhibit Number     Document
                 --------------     --------
                    3               Registrant's  Amended   and
                                    Restated   Certificate   of
                                    Limited   Partnership   and
                                    Agreement    of     Limited
                                    Partnership,     previously
                                    filed  as part of Amendment
                                    No.   1   of   Registrant's
                                    Registration  Statement  on
                                    Form       S-11,        are
                                    incorporated   herein    by
                                    reference.

                   21               Subsidiaries     of     the
                                    Registrant  are  listed  in
                                    Item  2. Properties of this
                                    Form 10-K.

              (b)  Reports on Form 8-K:
                                          No  reports were  filed
                 on  Form  8-K during the quarter ended  December
                 31, 2001.

             (c)  Exhibits:
                 See Item 14(A)(3) above.


<PAGE>

                           SIGNATURES

      Pursuant to the requirement of Section 13 or 15(d)  of  the
Securities Exchange Act of 1934, Registrant has duly caused  this
report  to  be signed on its behalf by the undersigned, thereunto
duly authorized.

Date:  May 30, 2003       DIVERSIFIED HISTORIC INVESTORS IV Income Fund
       ------------       ---------------------------------------------
                           By: Dover Historic Advisors III,
                               General Partner

                               By:  EPK, Inc., General Partner

                                    By: /s/ Spencer Wertheimer
                                        ----------------------
                                        SPENCER WERTHEIMER
                                        President

                                    By: /s/ Michele F. Rudoi
                                        --------------------
                                        MICHELE F. RUDOI,
                                        Assistant Secretary

      Pursuant to the requirements of the Securities Exchange Act
of  1934,  this  report has been signed below  by  the  following
persons on behalf of Registrant and in the capacities and on  the
dates indicated.

        Signature               Capacity             Date

DOVER HISTORIC ADVISORS III   General Partner

By:  EPK, Inc., General Partner

     By: /s/ Spencer Wertheimer                     May 30, 2003
         ----------------------                     ------------
         SPENCER WERTHEIMER,
         President

   By:  /s/ Michele F. Rudoi                        May 30, 2003
        -----------------------                     ------------
        MICHELE F. RUDOI,
        Assistant Secretary


<PAGE>