UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended September 30, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File Number 33-89968
INDEPENDENCE TAX CREDIT PLUS L.P. IV
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 13-3809869
- - ------------------------------- ------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
625 Madison Avenue, New York, New York 10022
- - ---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212)421-5333
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>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
<TABLE>
<CAPTION>
September 30, March 31,
1998 1998
------------- --------------
<S> <C> <C>
ASSETS
Property and equipment at cost,
net of accumulated depreciation
of $1,621,121 and $1,134,299,
respectively $ 34,674,912 $ 33,487,474
Construction in progress 13,958,097 9,294,984
Cash and cash equivalents 10,312,788 9,811,741
Investments available for sale 11,450,000 17,000,000
Cash held in escrow 2,475,370 2,454,311
Deferred costs, net of accumulated
amortization
of $67,622 and $53,186, respectively 1,547,121 1,555,982
Other assets 535,477 391,570
------------ ------------
Total assets $ 74,953,765 $ 73,996,062
============ ============
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Mortgage notes payable $ 18,421,920 $ 17,371,283
Construction loans payable 7,596,857 7,468,689
Accounts payable and other
liabilities 4,431,694 4,069,053
Due to local general partners and
affiliates 3,062,319 3,320,488
Due to general partner and affiliates 596,289 507,387
------------ ------------
Total liabilities 34,109,079 32,736,900
------------ ------------
Minority interest 758,067 736,218
------------ ------------
Partners' capital:
Limited partners (45,844 BACs
issued and outstanding) 40,093,286 40,525,248
General partner (6,667) (2,304)
------------ ------------
Total partners' capital 40,086,619 40,522,944
------------ ------------
Total liabilities and partners'
capital $ 74,953,765 $ 73,996,062
============ ============
</TABLE>
See Accompanying Notes to Consolidated Financial Statements.
-2-
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
September 30, September 30,
1998 1997* 1998 1997
-------------------------- --------------------------
<S> <C> <C> <C> <C>
Revenues
Rental income $ 572,985 $ 329,989 $ 1,078,955 $ 633,270
Other income
(principally interest
on capital
contributions) 236,887 293,051 453,474 591,269
----------- ----------- ----------- -----------
Total revenues 809,872 623,040 1,532,429 1,224,539
----------- ----------- ----------- -----------
Expenses
General and
administrative 240,028 118,860 444,363 239,232
General and
administrative-
related parties
(Note 2) 91,019 80,094 208,242 163,895
Repairs and
maintenance 47,042 31,759 109,676 84,914
Operating 109,444 95,203 163,899 139,287
Taxes 7,818 46,445 33,514 46,445
Insurance 26,197 20,736 61,989 37,105
Interest 223,535 190,961 423,964 378,252
Depreciation and
amortization 254,974 161,119 501,258 322,173
----------- ----------- ----------- -----------
Total expenses 1,000,057 745,177 1,946,905 1,411,303
----------- ----------- ----------- -----------
Loss before minority
interest (190,185) (122,137) (414,476) (186,764)
Minority interest in
(income) loss of
subsidiary
partnerships (16,074) 610 (21,849) 1,475
----------- ----------- ----------- -----------
Net loss $ (206,259) $ (121,527) $ (436,325) $ (185,289)
=========== =========== =========== ===========
Net loss -limited
partners $ (204,197) $ (120,312) $ (431,962) $ (183,436)
=========== =========== =========== ===========
Number of BACs
outstanding 45,844 45,844 45,844 45,844
=========== =========== =========== ===========
Net loss per BAC $ (4.45) $ (2.62) $ (9.42) $ (4.00)
=========== =========== =========== ===========
</TABLE>
*Reclassified for comparative purposes.
See Accompanying Notes to Consolidated Financial Statements.
-3-
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Consolidated Statement of Changes in Partners' Capital
(Unaudited)
<TABLE>
<CAPTION>
Limited General
Total Partners Partner
----------- ----------- ---------
<S> <C> <C> <C>
Partners' capital -
April 1, 1998 $40,522,944 $40,525,248 $ (2,304)
Net loss (436,325) (431,962) (4,363)
----------- ----------- ---------
Partners' capital -
September 30, 1998 $40,086,619 $40,093,286 $ (6,667)
=========== =========== =========
</TABLE>
See Accompanying Notes to Consolidated Financial Statements.
-4-
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
September 30,
1998 1997
----------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (436,325) $ (185,289)
------------ ------------
Adjustments to reconcile net
loss to net cash provided by
operating activities:
Depreciation and amortization 501,258 322,173
Minority interest in income (loss)
of subsidiary properties 21,849 (1,475)
(Increase) decrease in cash
held in escrow (21,059) 727
Increase in other assets (102,558) (44,920)
Increase in accounts
payable and other liabilities 309,177 176,430
Increase in due to local general
partners and affiliates 18,250 60,000
Decrease in due to local general
partners and affiliates (98,367) 0
Increase (decrease) in due to
general partner and affiliates 88,902 (73,527)
------------ ------------
Total adjustments 717,452 439,408
------------ ------------
Net cash provided by operating
activities 281,127 254,119
------------ ------------
Cash flows from investing activities:
Increase in property and equipment (1,674,260) (712,486)
Increase in construction in progress (4,663,113) (5,354,086)
Increase in accounts payable and
other liabilities 53,464 948,980
Increase in other assets (41,349) (445,556)
Increase in due to local general
partners and affiliates 160,738 1,156,046
Decrease in due to local general
partners and affiliates (338,790) (775,469)
Decrease (increase) in investments
available for sale 5,550,000 (4,500,000)
Increase in deferred costs (5,575) (74,778)
------------ ------------
Net cash used in
investing activities (958,885) (9,757,349)
------------ ------------
</TABLE>
See Accompanying Notes to Consolidated Financial Statements.
-5-
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(continued)
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
September 30,
-------------------------------
1998 1997
------------- -------------
<S> <C> <C>
Cash flows from financing activities:
Proceeds from mortgage notes 1,084,000 363,124
Repayments of mortgage notes (33,363) (19,547)
Proceeds from construction loans 1,176,603 4,095,039
Repayments of construction loans (1,048,435) (1,276,637)
Increase in deferred costs 0 (8,272)
------------ ------------
Net cash provided by financing
activities 1,178,805 3,153,707
------------ ------------
Net increase (decrease) in cash and
cash equivalents 501,047 (6,349,523)
Cash and cash equivalents at
beginning of period 9,811,741 17,061,164
------------ ------------
Cash and cash equivalents at
end of period $ 10,312,788 $ 10,711,641
============ ============
Supplemental disclosures of
noncash investing activities:
Consolidation of investment in
subsidiary partnership:*
Decrease in property and
equipment $ 0 $ 3,201,522
Increase in construction in
progress $ 0 $ (3,201,522)
</TABLE>
*Prior to consolidation, investment in subsidiary partnerships are included in
property and equipment.
See Accompanying Notes to Consolidated Financial Statements.
-6-
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Notes to Financial Statements
September 30, 1998
(Unaudited)
Note 1 - General
Independence Tax Credit Plus L.P. IV (a Delaware limited partnership) (the
"Partnership") was organized on February 22, 1995, and commenced the public
offering on July 6, 1995. The general partner of the Partnership is Related
Independence L.L.C., a Delaware limited liability company (the "General
Partner").
The Partnership's business is to invest in other partnerships ("Local
Partnerships", "subsidiaries" or "subsidiary partnerships") owning apartment
complexes that are eligible for the low-income housing tax credit ("Housing Tax
Credit") enacted in the Tax Reform Act of 1986, some of which complexes may also
be eligible for the historic rehabilitation tax credit ("Historic Tax Credit";
together with Housing Tax Credits, "Tax Credits").
As of September 30, 1998, the Partnership has acquired a limited partnership
interest in ten subsidiary partnerships. The Partnership anticipates acquiring
limited partnership interests in additional subsidiary partnerships in the
future. The Partnership's investment in each Local Partnership represents from
95% to 99.89% with one Local Partnership at 58.12% of the partnership interests
in the Local Partnership. Through the rights of the Partnership and/or an
affiliate of the General Partner, which affiliate has a contractual obligation
to act on behalf of the Partnership, to remove the general partner of the
subsidiary partnerships and to approve certain major operating and financial
decisions, the Partnership has a controlling financial interest in the
subsidiary partnership.
For financial reporting purposes, the Partnership's fiscal quarter ends
September 30. All subsidiaries have fiscal quarters ending June 30. Accounts of
the subsidiaries have been adjusted for intercompany transactions from July 1
through September 30. The Partnership's fiscal quarter ends September 30 in
order to allow adequate time for the subsidiaries financial statements to be
prepared and consolidated.
All intercompany accounts and transactions with the subsidiary partnerships have
been eliminated in consolidation.
-7-
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Notes to Financial Statements
September 30, 1998
(Unaudited)
Increases (decreases) in the capitalization of consolidated subsidiaries
attributable to minority interest arise from cash contributions from and cash
distributions to the minority interest partners.
Losses attributable to minority interests which exceed the minority interests'
investment in a subsidiary have been charged to the Partnership. Such losses
aggregated approximately $0 and $7,000 and $0 and $78,000 for the three and six
months ended September 30, 1998 and 1997, respectively. The Partnership's
investment in each subsidiary is equal to the respective subsidiary's partners'
equity less minority interest capital, if any. In consolidation, all subsidiary
partnership losses are included in the Partnership's capital account except for
losses allocated to minority interest capital.
Certain information and note disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been omitted or condensed. These condensed financial statements should be
read in conjunction with the financial statements and notes thereto included in
the Partnership's Annual Report on Form 10-K for the period ended March 31,
1998.
The books and records of the Partnership are maintained on the accrual basis of
accounting in accordance with generally accepted accounting principles. In the
opinion of the General Partner of the Partnership, the accompanying unaudited
financial statements contain all adjustments (consisting only of normal
recurring adjustments) necessary to present fairly the financial position of the
Partnership as of September 30, 1998, the results of operations for the three
and six months ended September 30, 1998 and 1997 and cash flows for the six
months ended September 30, 1998 and 1997. However, the operating results for the
six months ended September 30, 1998 may not be indicative of the results for the
year.
-8-
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Notes to Financial Statements
September 30, 1998
(Unaudited)
Note 2 - Related Party Transactions
An affiliate of the General Partner has a .01% interest as a special limited
partner in each of the Local Partnerships.
The costs incurred to related parties are as follows:
A) Acquisition Fees and Expenses
The General Partner is entitled to an acquisition fee equal to 6.0% of the gross
proceeds of the offering paid upon investor closings, for its services in
connection with assisting the Local Partnerships in acquiring apartment
complexes and supervising the construction of the complexes. Such fees will be
capitalized as a cost of the investments upon closing of subsidiary partnership
acquisitions. As of both September 30, 1998 and March 31, 1998, $2,750,640 of
such costs have been incurred, of which $1,770,677 have been capitalized.
B) Other Related Party Expenses
The costs incurred to related parties for the three and six months ended
September 30, 1998 and 1997 were as follows:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
September 30, September 30,
1998 1997 1998 1997
-------------------- --------------------
<S> <C> <C> <C> <C>
Partnership manage-
ment fees (a) $ 69,328 $ 42,933 $138,657 $ 84,229
Expense reimburse-
ment (b) 13,414 26,955 53,364 60,813
Local administra-
tive fee (d) 1,500 1,500 2,500 2,500
-------- -------- -------- --------
84,242 71,388 194,521 147,542
-------- -------- -------- --------
Property manage-
ment fees incurred
to affiliates of
the subsidiary
partnerships'
general partners (c) 6,777 8,706 13,721 16,353
-------- -------- -------- --------
Total general and
administrative-
related parties $ 91,019 $ 80,094 $208,242 $163,895
======== ======== ======== ========
</TABLE>
-9-
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Notes to Financial Statements
September 30, 1998
(Unaudited)
(a) The General Partner is entitled to receive a partnership management fee,
after payment of all Partnership expenses, which together with the annual local
administrative fees will not exceed a maximum of 0.5% per annum of invested
assets (as defined in the Partnership Agreement), for administering the affairs
of the Partnership. Subject to the foregoing limitation, the partnership
management fee will be determined by the General Partner in its sole discretion
based upon its review of the Partnership's investments. Unpaid partnership
management fees for any year will be accrued without interest and will be
payable from working capital reserves or to the extent of available funds after
the Partnership has made distributions to the limited partners of sale or
refinancing proceeds equal to their original capital contributions plus a 10%
priority return thereon (to the extent not theretofore paid out of cash flow).
Partnership management fees owed to the General Partner amounting to
approximately $307,000 and $269,000 were accrued and unpaid as of September 30,
1998 and March 31, 1998, respectively.
(b) The Partnership reimburses the General Partner and its affiliates for actual
Partnership operating expenses incurred by the General Partner and its
affiliates on the Partnership's behalf. The amount of reimbursement from the
Partnership is limited by the provisions of the Partnership Agreement. Another
affiliate of the General Partner performs asset monitoring for the Partnership.
These service include site visits and evaluations of the subsidiary
partnerships' performance.
(c) Property management fees incurred by the Local Partnerships amounted to
$41,283 and $20,492 and $72,704 and $40,099 for the three and six months ended
September 30, 1998 and 1997, respectively. Of these fees $6,777 and $8,706 and
$13,721 and $16,353 were incurred to affiliates of the subsidiary partnerships'
general partners.
(d) Independence SLP IV L.P., a special limited partner of the subsidiary
partnerships, is entitled to receive a local administrative fee of up to $5,000
per year from each subsidiary partnership.
-10-
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Liquidity and Capital Resources
The Partnership's primary source of funds include (i) interest earned on Gross
Proceeds which are invested in tax-exempt money market instruments pending
acquisition of and final payments to Local Partnerships and (ii) working capital
reserve and interest earned thereon. All these sources of funds are available to
meet obligations of the Partnership.
As of September 30, 1998, the Partnership has invested approximately $29,279,000
(including approximately $1,161,000 classified as a loan repayable from
sale/refinancing proceeds in accordance with the Contribution Agreement and not
including acquisition fees of approximately $1,771,000) of net proceeds in ten
Local Partnerships of which approximately $10,267,000 remains to be paid to the
Local Partnerships (including approximately $2,313,000 being held in escrow) as
certain benchmarks, such as occupancy level, must be attained prior to the
release of the funds. One Local Partnership was acquired during the six months
ended September 30, 1998 for a purchase price of approximately $1,889,000 of
which approximately $283,000 remains to be paid. The Partnership has
approximately $7,167,000 available for future investments. During the six months
ended September 30, 1998, approximately $4,874,000 was paid to Local
Partnerships (none of which was released from escrow). The Partnership will be
acquiring additional properties, and the Partnership may be required to fund
potential purchase price adjustments based on tax credit adjustor clauses. There
were no purchase price adjustments during the six months ended September 30,
1998.
For the six months ended September 30, 1998, cash and cash equivalents of the
Partnership and its ten consolidated Local Partnerships increased approximately
$501,000 primarily due to cash provided by operating activities ($281,000), a
decrease in investments available for sale ($5,550,000) and net proceeds from
mortgage and construction loans ($2,261,000) which exceeded an increase in
property and equipment ($1,674,000), an increase in construction in progress
($4,663,000), a net decrease in due to local general partners and affiliates
relating to investing activities ($178,000) and net repayments of mortgage and
construction loans ($1,082,000). Included in the adjustments to reconcile the
net loss to cash provided by operations is depreciation and amortization of
approximately $501,000.
-11-
<PAGE>
A working capital reserve of approximately $1,146,000 (2.5% of gross equity) has
been established from the Partnership's funds available for investment, which
includes amounts which may be required for potential purchase price adjustments
based on tax credit adjustor clauses. At September 30, 1998 and March 31, 1998,
none of this reserve was used. The General Partner believes that these reserves,
plus any cash distributions received from the operations of the Local
Partnerships, will be sufficient to fund the Partnership's ongoing operations
for the foreseeable future. As of September 30, 1998 and 1997, there has been no
cash distributions from the Local Partnerships. Management anticipates receiving
distributions in the future, although not to a level sufficient to permit
providing cash distributions to the BACs holders.
The Partnership has negotiated Development Deficit Guarantees with the
development stage Local Partnerships in which it has invested. The Local General
Partners and/or their affiliates have agreed to fund development deficits
through the breakeven dates of each of the ten Local Partnerships.
The Partnership has negotiated Operating Deficit Guaranty Agreements with the
development stage Local Partnerships by which the general partners of such Local
Partnerships and/or their affiliates have agreed to fund operating deficits for
a specified period of time. The terms of the Operating Deficit Guaranty
Agreements vary for each of these Local Partnerships, with maximum dollar
amounts to be funded for a specified period of time, generally seven years,
commencing on the break-even date. The gross amount of the Operating Deficit
Guarantees aggregates approximately 2,665,000 as of September 30, 1998.
The Partnership has also negotiated a Rent-Up Guaranty Agreement with one Local
Partnership, in which the Local General Partner agrees to pay liquidated damages
if predetermined occupancy rates are not achieved.
The Development Deficit, Operating Deficit and the Rent-Up Guaranty Agreements
were negotiated to protect the Partnership's interest in the Local Partnerships
and to provide incentive to the Local General Partners to generate positive cash
flow.
The Partnership has invested or committed for investment approximately 80% of
the net proceeds available for investment in ten Local Partnerships, of which
two commenced to generate tax credits in 1996, three have commenced to generate
tax credits in
-12-
<PAGE>
1997 and five are anticipated to commence to generate tax credits in 1998.
Management has been in contact with the one Local Partnership in the southeast
region and does not anticipate any significant increase to repairs and
maintenance due to the effect of Hurricane Georges on the portfolio.
Management is not aware of any trends or events, commitments or uncertainties,
which have not otherwise been disclosed that will or are likely to impact
liquidity in a material way. Management believes the only impact would be from
laws that have not yet been adopted. The portfolio will be diversified by the
location of the properties around the United States so that if one area of the
country is experiencing downturns in the economy, the remaining properties in
the portfolio may be experiencing upswings. However the geographic
diversification of the portfolio may not protect against a general downturn in
the national economy. The tax credits will be attached to the project for a
period of ten years, and will be transferable with the property during the
remainder of such ten-year period. If the General Partner determined that a sale
of a property is warranted, the remaining tax credits would transfer to the new
owner, thereby adding value to the property on the market, which are not
included in the financial statement carrying amount.
Results of Operations
As of September 30, 1998 and 1997, the Partnership had acquired an interest in
ten and six Local Partnerships, respectively, all of which were consolidated at
September 30, 1998 and 1997. The Partnership intends to utilize the net proceeds
of the offering to acquire additional interests in Local Partnerships.
The Partnership's results of operations for the three and six months ended
September 30, 1998 and 1997 consisted primarily of (1) approximately $149,000
and $267,000 and $335,000 and $543,000, respectively, of tax-exempt interest
income earned on funds not currently invested in Local Partnerships and (2) the
results of the Partnership's investment in nine of ten and three of six
consolidated Local Partnerships, respectively.
For the three and six months ended September 30, 1998 as compared to 1997,
rental income and all categories of expenses increased except taxes and the
results of operations are not comparable due to the acquisition, construction
and rent up of properties, and are not reflective of future operations of the
Partnership
-13-
<PAGE>
due to uncompleted property construction, rent up of properties and
the continued utilization of the net proceeds of the Offering to invest in Local
Partnerships. In addition, interest income will decrease in future periods since
a substantial portion of the proceeds from the Offering will be included in or
released to Local Partnerships. Other income decreased approximately $56,000 and
$138,000 for the three and six months ended September 30, 1998 as compared to
the corresponding periods in 1997 primarily due to a decrease in interest income
as a result of the acquisition of and the release of proceeds to the Local
Partnerships. Taxes decreased approximately $39,000 and $13,000 for the three
and six months ended September 30, 1998 as compared to the corresponding periods
in 1997 primarily due to the reduction of city taxes resulting from low income
housing status at one Local Partnership.
For the three months ended September 30, 1998 and 1997, zero and zero of the
Partnership's ten and six consolidated properties, respectively, completed
construction and were in various stages of rent up. In addition, three and one
of the properties, respectively, had completed construction in a previous fiscal
quarter, but were in various stages of rent up for the three months. Also, for
the three months ended September 30, 1998 and 1997, three and two of the
properties had completed construction and were rented up in a previous fiscal
quarter. For the six months ended September 30, 1998 and 1997, three and three
of the Partnership's ten and six consolidated properties, respectively, had
completed construction in a previous fiscal year, but were in various stages of
rent up for the six months. In addition three and two of the properties,
respectively, had completed construction and were rented up in a previous fiscal
year. As of the end of the six months ended September 30, 1998 and 1997, four
and three of the Partnership's ten and six consolidated properties,
respectively, were still under construction and three and four of the
properties, respectively, had construction loans with commitments for permanent
financing.
Year 2000 Compliance
The Partnership utilizes the computer services of an affiliate of the General
Partner. The affiliate of the General Partner is in the process of upgrading its
computer information systems to be year 2000 compliant and beyond. The Year 2000
compliance issue concerns the inability of a computerized system to accurately
record dates after 1999. The affiliate of the General Partner recently underwent
a conversion of its financial systems applications and is in the process of
upgrading and testing the in house software and hard-
-14-
<PAGE>
ware inventory. The workstations that experienced problems from this process
were corrected with an upgrade patch. The affiliate of the General Partner has
incurred costs of approximately $1,000,000 to date and estimates the total costs
to be approximately $2,000,000. These costs are not being charged to the
Partnership. In regard to third parties, the Partnership's General Partner is in
the process of evaluating the potential adverse impact that could result from
the failure of material service providers to be year 2000 compliant. A detailed
survey and assessment of third party readiness will be sent to material third
parties in the fourth quarter of 1998. The results of the surveys will be
compiled in early 1999. No estimate can be made at this time as to the impact of
the readiness of such third parties. The Partnership's General Partner plans to
have these issues fully assessed by early 1999, at which time the risks
will be addressed and a contingency plan will be implemented if necessary.
-15-
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings - None
Item 2. Changes in Securities - None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders - None
Item 5. Other Information - None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
(4) Form of Amended and Restated Agreement of Limited Partnership
of the Partnership (attached to the Prospectus as Exhibit A)*
(10A) Form of Subscription Agreement (attached to the Prospectus
as Exhibit B)*
(10B) Form of Escrow Agreement between the Partnership and the
Escrow Agent**
(10C) Form of Purchase and Sales Agreement pertaining to the
Partnership's acquisition of Local Partnership Interests**
(10D) Form of Amended and Restated Agreement of Limited
Partnership of Local Partnerships**
(27) Financial Data Schedule (filed herewith)
* Incorporated herein by reference to the final Prospectus as
filed pursuant to Rule 424 under the Securities Act of 1933.
** Filed as an exhibit to the Registration Statement on Form S-11
of the Partnership (File No. 33-89968) and incorporated herein by reference
thereto.
(b) Reports on Form 8-K - No reports on Form 8-K were filed during the
quarter.
-16-
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
INDEPENDENCE TAX CREDIT PLUS L.P. IV
------------------------------------
(Registrant)
By: RELATED INDEPENDENCE L.L.C.,
General Partner
Date: November 11, 1998
By: /s/ Alan P. Hirmes
-----------------------------------
Alan P. Hirmes,
Senior Vice President
(principal financial officer)
Date: November 11, 1998
By: /s/ Glenn F. Hopps
------------------------------------
Glenn F. Hopps,
Treasurer
(principal accounting officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The Schedule contains summary financial information extracted from the financial
statements for Independence Tax Credit Plus L.P. IV and is qualified in its
entirety by reference to such financial statements
</LEGEND>
<CIK> 0000940329
<NAME> Independence Tax Credit Plus L.P. IV
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-START> APR-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 12,788,158
<SECURITIES> 11,450,000
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 535,477
<PP&E> 50,254,130
<DEPRECIATION> 1,621,121
<TOTAL-ASSETS> 74,953,765
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0
0
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<NET-INCOME> (414,476)
<EPS-PRIMARY> (9.42)
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</TABLE>
