<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1996
COMMISSION FILE NUMBER 0-15731
NATIONAL HOUSING PARTNERSHIP REALTY FUND IV
(A MARYLAND LIMITED PARTNERSHIP)
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C>
MARYLAND 52-1473440
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
</TABLE>
8065 LEESBURG PIKE
SUITE 400
VIENNA, VIRGINIA 22182
(Address of principal executive offices)
(Zip Code)
(703) 394-2400
(Registrant's telephone number, including area code)
1225 EYE STREET, N.W.
WASHINGTON, D.C. 20005
(Former name, former address and former fiscal year, if changed
since last report.)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
---------- ----------
<PAGE> 2
PART 1 - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
NATIONAL HOUSING PARTNERSHIP REALTY FUND IV
(A MARYLAND LIMITED PARTNERSHIP)
STATEMENTS OF FINANCIAL POSITION
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
------------------ -----------------
<S> <C> <C>
ASSETS
------
Cash and cash equivalents $ 47,526 $ 35,568
Prepaid insurance and tenant security deposits 128,156 83,404
Real estate tax escrow 355,255 546,236
Reserve for insurance premiums 27,214 42,583
Investments in and advances to Local Limited
Partnerships (Note 2) - -
Land 3,650,000 3,650,000
Building and improvements - less accumulated
depreciation of $4,109,633 and $3,929,088 10,058,420 10,138,765
Deferred finance costs 96,778 -
------------- ------------
$ 14,363,349 $ 14,496,556
============= ============
LIABILITIES AND PARTNERS' DEFICIT
---------------------------------
Liabilities -
Accounts payable and accrued expenses from rental
operations $ 604,768 $ 950,835
Administrative and reporting fees payable to General
Partner (Note 3) 1,048,960 991,158
Due to General Partner (Note 3) 1,929,477 1,255,901
Accrued interest on Due to General Partner (Note 3) 1,333,470 1,183,574
Other accrued expenses 22,000 41,710
Mortgage note payable 13,140,000 13,700,000
------------- ------------
18,078,675 18,123,178
------------- ------------
Partners' deficit -
General Partner -- The National Housing
Partnership (NHP) (166,847) (165,960)
Original Limited Partner --
1133 Fifteenth Street Four Associates (171,747) (170,860)
Other Limited Partners -- 15,414 investment units (3,376,732) (3,289,802)
------------- ------------
(3,715,326) (3,626,622)
------------- ------------
$ 14,363,349 $ 14,496,556
============= ============
</TABLE>
See notes to financial statements.
-1-
<PAGE> 3
NATIONAL HOUSING PARTNERSHIP REALTY FUND IV
(A MARYLAND LIMITED PARTNERSHIP)
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
---------------------------- ----------------------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
RENTAL REVENUES $831,846 $ 793,034 $1,658,748 $1,568,886
-------- --------- ---------- ---------
RENTAL EXPENSES:
Interest 286,732 339,848 590,884 650,624
Renting and administrative 110,950 93,616 210,219 192,367
Operating and maintenance 151,134 141,510 330,552 323,074
Depreciation and amortization 109,258 89,484 190,968 178,968
Taxes and insurance 27,972 207,336 250,473 465,343
------- -------- ---------- ----------
686,046 871,794 1,573,096 1,810,376
------- -------- --------- ---------
PROFIT (LOSS) FROM RENTAL
OPERATIONS 145,800 (78,760) 85,652 (241,490)
-------- --------- ---------- --------
COSTS AND EXPENSES:
Interest on due to General Partner
(Note 3) 82,791 62,380 149,896 121,028
Administrative and reporting fees
to General Partner (Note 3) 28,901 28,901 57,802 57,802
Other operating expenses 12,277 15,120 32,163 28,634
-------- --------- ---------- ----------
123,969 106,401 239,861 207,464
-------- --------- ---------- ----------
OTHER REVENUES:
Distributions received in excess of
investment in and advances to
Local Limited Partnerships 63,756 - 63,756 -
Interest income 812 350 1,749 773
-------- --------- ---------- ----------
64,568 350 65,505 773
-------- --------- ---------- ----------
NET PROFIT (LOSS) $ 86,399 $(184,811) $ (88,704) $ (448,181)
======== ========= ========== ==========
NET PROFIT (LOSS) ASSIGNABLE
TO LIMITED PARTNERS $ 84,671 $(181,115) $ (86,930) $ (439,217)
======== ========= ========== ==========
NET PROFIT (LOSS) PER LIMITED
PARTNERSHIP INTEREST $ 5 $ (12) $ (6) $ (28)
======== ========= ========= ==========
</TABLE>
See notes to financial statements.
-2-
<PAGE> 4
NATIONAL HOUSING PARTNERSHIP REALTY FUND IV
(A MARYLAND LIMITED PARTNERSHIP)
STATEMENT OF PARTNER'S DEFICIT
<TABLE>
<CAPTION>
The National 1133
Housing Fifteenth Other
Partnership Street Four Limited
(NHP) Associates Partners Total
--------------- ---------- --------- -----
<S> <C> <C> <C> <C>
Deficit at January 1, 1996 $(165,960) $(170,860) $(3,289,802) $(3,626,622)
Net loss -- six months ended
June 30, 1996 (887) (887) (86,930) (88,704)
--------- --------- ----------- -----------
Deficit at June 30, 1996 $(166,847) $(171,747) $(3,376,732) $(3,715,326)
========= ========= =========== ===========
Percentage interest at
June 30, 1996 1% 1% 98% 100%
========= ========== ============ ===========
(A) (B) (C)
</TABLE>
(A) General Partner
(B) Original Limited Partner
(C) Consists of 15,414 investments units of 0.006358% held by 1,289 investors
See notes to financial statements.
-3-
<PAGE> 5
NATIONAL HOUSING PARTNERSHIP REALTY FUND IV
(A MARYLAND LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Six Months Ended
June 30,
----------------------------
1996 1995
---- ----
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Rent collections $ 1,598,523 $ 1,539,281
Distributions received in excess of investment in Local
Limited Partnerships 63,756 -
Interest received 1,749 773
Other income 56,327 38,008
Operating expenses paid, including rental expenses (1,213,031) (1,265,552)
Mortgage interest paid (601,516) (643,097)
---------- -----------
Net cash used in operating activities (94,192) (330,587)
---------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (100,200) (65,741)
Deposits to real estate tax escrow (434,100) (291,770)
Withdrawals from real estate tax escrow 625,081 593,124
Deposits to reserve for insurance premiums (18,855) (16,260)
Withdrawals from reserve for insurance premiums 34,224 69,224
---------- -----------
Net cash used in investing activities 106,150 288,577
---------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Loans from General Partner - 34,220
---------- -----------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 11,958 (7,790)
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD 35,568 14,317
---------- -----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 47,526 $ 6,527
========== ===========
SUPPLEMENTAL INFORMATION
Loan from General Partner for reduction of mortgage principal
and refinancing costs $ 667,201 $ -
========== ===========
</TABLE>
See notes to financial statements.
-4-
<PAGE> 6
NATIONAL HOUSING PARTNERSHIP REALTY FUND IV
(A MARYLAND LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS
(CONTINUED)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
-------------------------------
1996 1995
---- ----
<S> <C> <C>
RECONCILIATION OF NET LOSS TO NET CASH USED IN
OPERATING ACTIVITIES:
Net loss $ (88,704) $ (448,181)
------------- -----------
Adjustments to reconcile net loss to net cash used in operating
activities -
Depreciation 180,545 156,925
Amortization of deferred finance costs 10,423 22,043
Mortgagor entity expenses 2,625 -
Increase in prepaid insurance, utility and tenant security deposits (44,752) (50,001)
Decrease in accounts payable and accrued expenses from
rental operations (346,067) (178,328)
Increase in administrative and reporting fees payable to
General Partner 57,802 57,802
Increase in due to General Partner 3,750 3,750
Increase in accrued interest on due to General Partner 149,896 121,028
Decrease in other accrued expenses (19,710) (15,625)
------------- -----------
Total adjustments (5,488) 117,594
------------- -----------
Net cash used in operating activities $ (94,192) $ (330,587)
============= ===========
</TABLE>
See notes to financial statements.
-5-
<PAGE> 7
NATIONAL HOUSING PARTNERSHIP REALTY FUND IV
(A MARYLAND LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
(1) ACCOUNTING POLICIES
NATURE OF BUSINESS
National Housing Partnership Realty Fund IV (the "Partnership") is a
limited partnership organized on January 8, 1986 under the laws of the
State of Maryland under the Maryland Revised Uniform Limited
Partnership Act. The Partnership was formed for the purpose of raising
capital by offering and selling limited partnership interests and then
investing in limited partnerships ("Local Limited Partnerships"), each
of which owns and operates an existing rental housing project which is
financed and/or operated with one or more forms of rental assistance
or financial assistance from the U.S. Department of Housing and Urban
Development ("HUD").
The General Partner raised capital for the Partnership by offering and
selling to additional limited partners 15,414 investment units at a
price of $1,000 per unit. The Partnership acquired limited partnership
interests of 99% in four Local Limited Partnerships, each of which was
organized to acquire and operate an existing rental housing project.
In addition, the Partnership directly purchased Trinity Apartments, a
conventionally financed rental apartment project.
BASIS OF PRESENTATION
The accompanying unaudited interim financial statements reflect all
adjustments which are, in the opinion of management, necessary to
present a fair statement of the financial condition and results of
operations for the interim periods presented. All such adjustments are
of a normal recurring nature.
While the General Partner believes that the disclosures presented are
adequate to make the information not misleading, it is suggested that
these financial statements be read in conjunction with the financial
statements and the notes included in NHP Realty Fund IV's Annual
Report filed in Form 10-K for the year ended December 31, 1995.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that effect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ
from those estimates.
-6-
<PAGE> 8
NATIONAL HOUSING PARTNERSHIP REALTY FUND IV
(A MARYLAND LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
(2) INVESTMENTS IN AND ADVANCES TO LOCAL LIMITED PARTNERSHIPS
The Partnership owns a 99% limited partnership interest in four Local
Limited Partnerships. In addition, the Partnership directly owns
Trinity Apartments. Because the Partnership, as a limited partner,
does not exercise control over the activities of the four Local
Limited Partnerships in accordance with the partnership agreements,
the investments in the Local Limited Partnerships are accounted for
using the equity method. Thus, the investments (and the advances made
to the Local Limited Partnerships as discussed below) are carried at
cost less the Partnership's share of the Local Limited Partnerships'
losses and distributions. However, because the Partnership is not
legally liable for the obligations of the Local Limited Partnerships,
and is not otherwise committed to provide additional support to them,
it does not recognize losses once its investment, reduced for its
share of losses and cash distributions, reaches zero in each of the
individual Local Limited Partnerships. As of June 30, 1996 and
December 31, 1995 investments in all four Local Limited Partnerships
had been reduced to zero. As a result, the Partnership did not
recognize $879,344 and $709,156 of losses from Local Limited
Partnerships during the six months ended June 30, 1996 and 1995,
respectively. As of June 30, 1996 and December 31, 1995, the
Partnership had not recognized $7,130,258 and $6,250,914,
respectively, of its allocated share of cumulative losses from the
Local Limited Partnerships in which its investment is zero.
Advances made by the Partnership to the individual Local Limited
Partnerships are considered part of the Partnership's investment in
Local Limited Partnerships. When advances are made, they are charged
to operations as a loss on investment in the Local Limited Partnership
using previously unrecognized cumulative losses. As discussed above,
due to the cumulative losses incurred by the Local Limited
Partnerships, the aggregate balance of investments in and advances to
the Local Limited Partnerships has been reduced to zero at June 30,
1996 and December 31, 1995. To the extent these advances are repaid by
the Local Limited Partnerships in the future, the repayments will be
credited as distributions and repayments received in excess of
investments in Local Limited Partnerships. These advances are carried
as a payable to the Partnership by the Local Limited Partnerships.
No working capital advances or repayments occurred between the
Partnership and the Local Limited Partnerships during the six months
ended June 30, 1996 and 1995. The combined amount carried as payable
to the Partnership by the Local Limited Partnerships was $12,400 as of
June 30, 1996.
The following are combined statements of operations for the three
months and six months ended June 30, 1996 and 1995, respectively, of
the Local Limited Partnerships in which the Partnership has invested.
The statements are compiled from financial statements of the Local
Limited Partnerships, prepared on the accrual basis of accounting, as
supplied by the management agents of the projects, and are unaudited.
-7-
<PAGE> 9
NATIONAL HOUSING PARTNERSHIP REALTY FUND IV
(A MARYLAND LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
COMBINED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
------------------------------------- --------------------------------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Rental income $1,187,139 $ 1,160,664 $2,319,953 $2,303,799
Other income 30,152 102,336 53,357 119,373
---------- ----------- ----------- -----------
Total income 1,217,291 1,263,000 2,373,310 2,423,172
--------- --------- --------- ---------
Operating expenses 800,009 865,758 1,619,314 1,590,538
Interest, taxes and
insurance 571,333 536,762 1,146,955 1,122,666
Depreciation 270,816 213,817 495,267 426,287
---------- ---------- ---------- ----------
Total expenses 1,642,158 1,616,337 3,261,536 3,139,491
--------- --------- --------- ---------
Net loss $ (424,867) $ (353,337) $ (888,226) $ (716,319)
========== ========== ========== ==========
National Housing
Partnership Realty
Fund IV share of
losses $ (420,619) $ (349,804) $ (879,344) $ (709,156)
========== ========== ========== ==========
</TABLE>
(3) TRANSACTIONS WITH THE GENERAL PARTNER AND AFFILIATES OF THE GENERAL
PARTNER
During the six month periods ended June 30, 1996 and 1995, the
Partnership accrued administrative and reporting fees payable to the
General Partner in the amount of $57,802 for services provided to the
Partnership. The Partnership has not made any payments to the General
Partner for these fees during the six months ended June 30, 1996 and
1995. The amount due the General Partner by the Partnership was
$1,048,960 and $991,158 at June 30, 1996 and December 31, 1995,
respectively.
During the six months ended June 30, 1996, the General Partner made a
payment on behalf of Trinity Apartments to General Electric Capital
Corporation (GECC) of $667,201 as a condition of a new mortgage
modification agreement, effective March 15, 1996. In addition, the
General Partner paid entity expenses of $2,625 on behalf of Trinity
Apartments. During the six months ended June 30, 1995, the General
Partner made working
-8-
<PAGE> 10
NATIONAL HOUSING PARTNERSHIP REALTY FUND IV
(A MARYLAND LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
capital advances of $34,220 to the Partnership. No repayments of
working capital advances were made during the six months ended June
30, 1996 and 1995. The amount owed to the General Partner at June 30,
1996 and December 31, 1995, was $1,918,227 and $1,248,401,
respectively. Interest is charged on borrowings at the Chase Manhattan
Bank rate of prime plus 2%. Accrued interest on this loan amounted to
$1,333,470 and $1,183,574 at June 30, 1996 and December 31, 1995,
respectively. The advances will be repaid as cash flow permits or from
the sale or refinancing of the Local Limited Partnerships.
Annual partnership administrative fees of $3,750 were accrued on
behalf of Trinity Apartments during the six months ended June 30, 1996
and 1995. These fees are payable to the General Partner without
interest from cash available for distribution to partners. No payments
were made during the six months ended June 30, 1996 and 1995. The
balance owed to the General Partner for these fees was $11,250 and
$7,500 at June 30, 1996 and December 31, 1995, respectively, and is
included in Due to General Partner.
The advances and accrued administrative and reporting fees payable to
the General Partner will be paid as cash flow permits or from proceeds
generated from the sale or refinancing of one or more of the
underlying properties of the Local Limited Partnerships.
-9-
<PAGE> 11
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
NATIONAL HOUSING PARTNERSHIP REALTY FUND IV
(A MARYLAND LIMITED PARTNERSHIP)
LIQUIDITY AND CAPITAL RESOURCES
The properties in which the Partnership has invested, through its investments
in the Local Limited Partnerships, receive one or more forms of assistance from
Federal, state or local governments or agencies. As a result, the Local Limited
Partnerships' ability to transfer funds either to the Partnership or among
themselves in the form of cash distributions, loans or advances is generally
restricted by these government-assistance programs. These restrictions,
however, are not expected to impact the Partnership's ability to meet its cash
obligations.
Net cash used in operations for the six months ended June 30, 1996 was $94,192
as compared to $330,587 for the six months ended June 30, 1995. The decrease to
cash used in operations resulted primarily from a decrease in operating
expenses and mortgage interest paid and an increase in rent collections and
distributions received in excess of investment in Local Limited Partnerships.
No working capital advances or repayments occurred between the Partnership and
the Local Limited Partnerships during the six months ended June 30, 1996 and
1995. The combined amount carried as due to the Partnership by the Local
Limited Partnerships was $12,400 as of June 30, 1996. Future advances made will
be charged to operations; likewise, future repayments will be credited to
operations.
Distributions received from Local Limited Partnerships represent the
Partnership's proportionate share of the excess cash available for distribution
from the Local Limited Partnerships. As a result of the use of the equity
method of accounting for the Partnership's investments, as of June 30, 1996,
investments in all four Local Limited Partnerships had been reduced to zero.
For these investments, cash distributions received are recorded as
distributions received in excess of investment in Local Limited Partnerships.
Cash distributions of $63,756 were received from the Local Limited Partnerships
during the six months ended June 30, 1996. There were no distributions during
the six months ended June 30, 1995. The receipt of distributions in future
quarters is dependent upon the operations of the underlying properties of the
Local Limited Partnerships.
Cash and cash equivalents amounted to $47,526 at June 30, 1996. The ability of
the Partnership to meet its on-going cash requirements, in excess of cash on
hand at June 30, 1996, is dependent on operations of Trinity Apartments,
distributions received from the Local Limited Partnerships, and proceeds from
the sales or refinancing of the underlying Properties. As of June 30, 1996, the
Partnership owes the General Partner $1,048,960 for administrative and
reporting services performed. During the six months ended June 30, 1996, the
General Partner made a payment on
-10-
<PAGE> 12
NATIONAL HOUSING PARTNERSHIP REALTY FUND IV
(A MARYLAND LIMITED PARTNERSHIP)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
behalf of Trinity Apartments of $667,201 as a condition of a new mortgage
modification agreement (Modification Agreement) effective March 15, 1996. As of
June 30, 1996, the Partnership owes the General Partner $1,929,477 plus accrued
interest of $1,333,470. The payment of the unpaid administrative and reporting
fees and advances from the Partnership and the General Partner to the Local
Limited Partnerships will most likely result from the sale or refinancing of
the underlying Properties of the Local Limited Partnerships as defined by the
Partnership agreement, rather than through recurring operations. The General
Partner will continue to manage the Partnership's assets prudently in an effort
to achieve positive cash flow. The General Partner will evaluate lending the
Partnership additional funds as such funds are needed, but is no way legally
obligated to make such loans.
The Modification Agreement, effective March 15, 1996, is for a mortgage
principal balance of $13,140,000. The reduction of principal of $560,000 plus
closing costs of $107,201 were loaned to the Partnership by the General
Partner. Interest only, at the Contract Index Rate, as defined in the
Modification Agreement, on the mortgage is payable monthly from April 1, 1996
through March 1, 1999. In addition, from April 1, 1996 and continuing each
July, October, December and April, installments of principal in an amount equal
to 100% of the net cash flow (as defined) is due and payable. On March 15,
1999, the entire unpaid principal and interest is due and payable. The Contract
Index Rate is equal to 3.25% per annum in excess of the GECC Composite
Commercial Paper Rate.
Except for Trinity, all the properties in which the Partnership has invested
carry deferred acquisition notes due to the original owners of the properties.
In the event of a default on these notes, the noteholders would assume
ownership of the General Partner's and the Partnership's interests in the Local
Limited Partnerships. Due to the rental market conditions where the properties
are located, the General Partner believes the amounts due on the acquisition
notes may exceed the value to be obtained by sale or refinancing opportunities.
The deferred acquisition notes mature in 2001.
In prior years, Trinity Apartments, a rental property wholly-owned by the
Partnership, has generated substantial losses from operations which have
resulted in the accumulation of significant accounts payable and accrued
expenses at June 30, 1996 and has also necessitated significant funding from
the General Partner in prior years. The General Partner's intentions are to
continue to manage Trinity prudently so that the property can maintain positive
cash flows and pay its general obligations, however, there can be no assurance
that the General Partner will be successful.
-11-
<PAGE> 13
NATIONAL HOUSING PARTNERSHIP REALTY FUND IV
(A MARYLAND LIMITED PARTNERSHIP)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
The Partnership has invested as a limited partner in four Local Limited
Partnerships which operate four rental housing properties. In addition, the
Partnership directly owns Trinity Apartments. Results of operations are
significantly impacted by the losses on rental operations of Trinity
Apartments, and in prior years, by the Partnership's share of the losses of the
Local Limited Partnerships. These losses included depreciation and accrued
deferred acquisition note interest expense which are noncash in nature.
Because the investments in and advances to Local Limited Partnerships have been
reduced to zero, the Partnership's share of the operations of the Local Limited
Partnerships is no longer being recorded.
The Partnership's net loss decreased to $88,704 for the six months ended June
30, 1996 from a net loss of $448,181 for the six months ended June 30, 1995.
Net loss per unit of limited partnership interest decreased from $28 to $6 for
the 15,414 units outstanding throughout both periods. The primary reasons for
the decrease in net loss is the increase in distributions received in excess of
investment in and advances to Local Limited Partnerships and the increase in
profit from rental operations at Trinity Apartments, which was primarily due to
an increase in rental income and a decrease in mortgage interest expense and
real estate tax expense. The decrease in mortgage interest was the result of
the decrease in mortgage principal balance related to the new Modification
Agreement, effective March 15, 1996, and a decrease in the variable interest
rate on the mortgage for the respective period. The decrease in real estate tax
expense was the result of a lower assessment of the property which also
resulted in tax refund of approximately $130,000 for the year ended December
31, 1995, which was received during the six months ended June 30, 1996. The
Partnership did not recognize $879,344 of its allocated share of losses from
the four Local Limited Partnerships for the six months ended June 30, 1996, as
the Partnership's net carrying basis in these Local Limited Partnerships was
reduced to zero prior years. The Partnership's share of losses from the Local
Limited Partnerships, if not limited to its investment account balance, would
have increased $170,188 between periods, primarily due to a decrease in other
income and an increase in operating expenses.
-12-
<PAGE> 14
SIGNATURES
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.
NATIONAL HOUSING PARTNERSHIP REALTY FUND IV
-------------------------------------------
(Registrant)
By: The National Housing Partnership,
its sole General Partner
By: National Corporation for Housing
Partnerships, its sole General Partner
August 5, 1996 By: /s/
- -------------- ----------------------------------------------
Jeffrey J. Ochs
As Vice President and Chief Accounting Officer
-13-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 558,151
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 558,151
<PP&E> 17,818,053
<DEPRECIATION> 4,109,633
<TOTAL-ASSETS> 14,363,349
<CURRENT-LIABILITIES> 4,938,675
<BONDS> 13,140,000
0
0
<COMMON> 0
<OTHER-SE> (3,715,326)
<TOTAL-LIABILITY-AND-EQUITY> 14,363,349
<SALES> 0
<TOTAL-REVENUES> 1,724,253
<CGS> 0
<TOTAL-COSTS> 791,244
<OTHER-EXPENSES> 280,933
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 740,780
<INCOME-PRETAX> (88,704)
<INCOME-TAX> 0
<INCOME-CONTINUING> (88,704)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (88,704)
<EPS-PRIMARY> (6)
<EPS-DILUTED> (6)
</TABLE>
