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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report
September 19, 1996
CAPITAL REALTY INVESTORS-IV LIMITED PARTNERSHIP
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(Exact name of registrant as specified in its charter)
Maryland
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(State or other jurisdiction of incorporation)
0-13523 52-1328767
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(Commission File Number) (IRS Employer Identification No.)
11200 Rockville Pike, Rockville, Maryland 20852
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(Address of principal executive offices) (Zip Code)
(301) 468-9200
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(Registrant's telephone number, including area code)
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ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
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On March 15, 1993, May 23, 1994 and May 23, 1994, the local general
partners of River Run Company (River Run), New Forest Park Associates Limited
Partnership (Forest Park) and New Walnut Square Associates Limited Partnership
(Walnut Square), respectively, filed notices of intent to participate under the
Low Income Housing Preservation and Resident Home Ownership Act of 1990
(LIHPRHA). On February 27, 1996, July 11, 1996 and July 11, 1996, the local
managing general partners' plans of action regarding the sale of River Run,
Forest Park and Walnut Square, respectively, under the LIHPRHA program were
approved by HUD. This program may provide incentives to owners of multifamily
housing who commit to operate their properties as low to moderate-income housing
permanently and who have participated under specific federal subsidy programs
(Section 236 or Section 221(d)(3)) for at least 18 years. Incentives available
under the LIHPRHA program include selling the property to qualified buyers.
On August 27, 1996, River Run sold the property, a 100-unit apartment
complex located in Macomb, Illinois, under the LIHPRHA program to National
Handicap Housing Institute, Inc., a non-profit entity. The sale of the property
generated net cash proceeds to Capital Realty Investors-IV Limited Partnership
(the Partnership) of approximately $552,000. The proceeds were net of
approximately $530,000 used to retire, at a discount, the Partnership's purchase
money note obligation with respect to the property.
On September 19, 1996, Forest Park sold the property, a 284-unit apartment
complex located in New Orleans, Louisiana, under the LIHPRHA program to Forest
Park Affordable Housing Inc., a District of Columbia non-profit organization.
The sale of the property generated net cash proceeds to the Partnership of
approximately $1.2 million. The proceeds were net of $1.7 million used to
retire, at a discount, a portion of the Partnership's purchase money note
obligation with respect to the property. The proceeds were also net of $531,100
which was used to purchase a certificate of deposit to be held in escrow until
January 2, 1997, at which time all principal and interest up to three percent
per annum on the certificate of deposit shall be used to retire the
Partnership's remaining purchase money note obligation with respect to the
property. Any excess interest that has accrued on the certificate of deposit
shall be payable to the Partnership.
Also, on September 19, 1996, Walnut Square sold the property, a 284-unit
apartment complex located in New Orleans, Louisiana, under the LIHPRHA program
to Walnut Square Affordable Housing, Inc., a District of Columbia non-profit
entity. The sale of the property generated net cash proceeds to the Partnership
of approximately $966,000. The proceeds were net of $2.241 million used to
retire, at a discount, the Partnership's purchase money note obligation with
respect to the property.
The Partnership intends to make a distribution to the Additional Limited
Partners by October 31, 1996 related to the sale of these properties. The
amount of this distribution is unknown at this time. The Managing General
Partner intends to retain all of the Partnership's remaining undistributed net
sale proceeds for the possible repayment, prepayment or purchase of the
Partnership's outstanding purchase money notes related to other Local
Partnerships. The Managing General Partner of the Partnership and/or its
affiliates are expected to receive net fees of approximately $26,606 for its
services relating to the sale of River Run. The Managing General Partner of the
Partnership and/or its affiliates will not receive any fees relating to the sale
of Forest Park and Walnut Square.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Capital Realty Investors-IV Limited
Partnership
(Registrant)
By: C.R.I., Inc., General Partner
October 4, 1996 /s/Deborah K. Browning
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Date Deborah K. Browning
Vice President/Chief Accounting
Officer
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