10QSB 1 nhp4.txt NHP4 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-QSB (Mark One) [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2002 [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________to _________ Commission file number 0-15731 NATIONAL HOUSING PARTNERSHIP REALTY FUND IV (Exact name of small business issuer as specified in its charter) Maryland 52-1473440 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 55 Beattie Place, P.O. Box 1089 Greenville, South Carolina 29601 (Address of principal executive offices) (864) 239-1000 (Issuer's telephone number) PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS NATIONAL HOUSING PARTNERSHIP REALTY FUND IV Statement of Financial Position (Unaudited) (in thousands, except unit data) September 30, 2002 ASSETS Cash and cash equivalents $ -- LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) Liabilities: Accounts payable $ 19 Administrative and reporting fee payable to General Partner (Note 3) 1,772 Due to General Partner (Note 3) 805 Accrued interest on partner loans (Note 3) 1,448 Other accrued expenses 29 4,073 Partners' capital (deficit): General partner -- The National Housing Partnership (NHP) 3,849 Original limited partner -- 1133 Fifteenth Street Four Associates (216) Other limited partners -- 15,332 investment units (7,706) (4,073) $ -- See Accompanying Notes to Financial Statements NATIONAL HOUSING PARTNERSHIP REALTY FUND IV Statements of Operations (Unaudited) (in thousands, except per unit data)
Three Months Ended Nine Months Ended September 30, September 30, 2002 2001 2002 2001 REVENUES: Distributions received in excess of investment in Local Limited Partnerships $ -- $ 3 $ -- $ 3 Interest income -- -- -- 1 Other income -- -- -- 2 -- 3 -- 6 Costs and Expenses: Interest on partner loans (Note 3) 38 56 111 148 Administrative and reporting fees to General Partner (Note 3) 29 29 87 87 Other operating expenses 18 15 51 54 85 100 249 289 NET LOSS $ (85) $ (97) $ (249) $ (283) ALLOCATION OF NET LOSS: General Partner - NHP $ (1) $ (1) $ (3) $ (3) Original Limited Partner - 1133 Fifteenth Street Four Associates (1) (1) (3) (3) Other Limited Partners (83) (95) (243) (277) $ (85) $ (97) $ (249) $ (283) Net loss per limited partnership interest $ (5.39) $ (6.17) $(15.79) $(17.99) See Accompanying Notes to Financial Statements
NATIONAL HOUSING PARTNERSHIP REALTY FUND IV Statement of Partners' CAPITAL (Deficit) (Unaudited) (in thousands, except unit data)
The National 1133 Housing Fifteenth Other Partnership Street Four Limited (NHP) Associates Partners Total Capital (deficit) at December 31, 2001 $ 3,852 $ (213) $(7,463) $(3,824) Net loss - nine months ended September 30, 2002 (3) (3) (243) (249) Capital (deficit) at September 30, 2002 $ 3,849 $ (216) $(7,706) $(4,073) Percentage interest at September 30, 2002 1% 1% 98% 100% (A) (B) (C) (A) General Partner (B) Original Limited Partner (C) Consists of 15,332 investment units at September 30, 2002 and 15,394 investment units at September 30, 2001. During the nine months ended September 30, 2002, 62 units were abandoned (Note 4). See Accompanying Notes to Financial Statements
NATIONAL HOUSING PARTNERSHIP REALTY FUND IV Statements of Cash FlowS (Unaudited) (in thousands)
Nine Months Ended September 30, 2002 2001 CASH FLOWS FROM OPERATING ACTIVITIES: Distributions received in excess of investment in Local Limited Partnerships $ -- $ 3 Interest income -- 1 Other income -- 2 Operating expenses paid, including rental expense (41) (32) Net cash used in operating activities (41) (26) CASH FLOWS PROVIDED BY FINANCING ACTIVITIES: Loans from General Partner 39 7 NET DECREASE IN CASH AND CASH EQUIVALENTS (2) (19) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 2 22 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ -- $ 3 RECONCILIATION OF NET LOSS TO NET CASH USED IN OPERATING ACTIVITIES Net loss $ (249) $ (283) Adjustments to reconcile net loss to net cash used in operating activities: Accounts payable and accrued expenses from rental operations (19) -- Administrative and reporting fees payable to General Partner 87 87 Accrued interest on Partner loans 111 148 Other accrued expenses 29 22 Total adjustments 208 257 Net cash used in operating activities $ (41) $ (26) See Accompanying Notes to Financial Statements
NATIONAL HOUSING PARTNERSHIP REALTY FUND IV Notes to Financial Statements (Unaudited) (1) ACCOUNTING POLICIES Organization National Housing Partnership Realty Fund IV (the "Partnership" or the "Registrant") is a limited partnership organized under the Maryland Revised Uniform Limited Partnership Act on January 8, 1986. The Partnership was formed for the purpose of raising capital by offering and selling limited partnership interests, and then using that capital to acquire and operate (either directly or through investment as a limited partner in Local Limited Partnerships) multi-family rental apartments, some of which are financed and/or operated with one or more forms of rental or financial assistance from the U.S. Department of Housing and Urban Development ("HUD"). On February 21, 1986, the inception of operations, the Partnership began raising capital and acquiring interests in Local Limited Partnerships. National Housing Partnership, a District of Columbia limited partnership ("NHP" or the "General Partner"), the Partnership's general partner, was authorized to raise capital for the Partnership by offering and selling to additional limited partners not more than 35,000 interests at a price of $1,000 per interest. During 1986, 15,414 interests were sold to additional limited partners. The offering was terminated on October 14, 1986. Apartment Investment and Management Company ("AIMCO"), a publicly traded real estate investment trust, and its affiliates ultimately control the General Partner. The original Limited Partner of the Partnership is 1133 Fifteenth Street Four Associates, whose limited partners were key employees of NCHP at the time the Partnership was formed and whose general partner is NHP. Basis of Presentation The accompanying unaudited interim financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair presentation of the financial condition and results of operations for the interim periods presented. All such adjustments are of a normal and recurring nature. Operating results for the three and nine month periods ended September 30, 2002 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2002. 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 notes included in the Partnership's Annual Report filed on Form 10-KSB for the year ended December 31, 2001. (2) INVESTMENTS IN AND ADVANCES TO LOCAL LIMITED PARTNERSHIPS The Partnership owned a 99% limited partnership interest in Capital Park Limited Partnership and Royal Towers Apartments. The partnership interest in Capital Park Limited Partnership was lost to foreclosure during the year ended December 31, 2001 (see discussion below). The property held by the Royal Towers Limited Partnership was foreclosed by HUD during the year ended December 31, 2001 (see discussion below). The Partnership owns a 99% limited partnership interest in Loring Towers Apartments Limited Partnership and Kennedy Homes Limited Partnership. The investments in Local Limited Partnerships are accounted for using the equity method because, as a limited partner, the liability of the Partnership is limited to its investment in the Local Limited Partnerships. As a limited partner, the Partnership does not exercise control over the activities of the Local Limited Partnerships in accordance with the partnership agreements. Thus, the investments are carried at cost less the Partnership's share of the Local Limited Partnerships' losses and distributions plus the Partnership's share of Local Limited Partnerships' profits. However, since the Partnership is neither legally liable for the obligations of the Local Limited Partnerships, nor otherwise committed to provide additional support to them, it does not recognize losses once its investment in each of the individual Local Limited Partnerships, reduced for its share of losses and cash distributions, reaches zero. As of September 30, 2002, investments in all Local Limited Partnerships had been reduced to zero. As a result, the Partnership did not recognize approximately $809,000 in losses from two Local Limited Partnerships and $881,000 of losses from all the Local Limited Partnerships during the nine months ended September 30, 2002 and 2001, respectively. As of September 30, 2002, the Partnership had not recognized approximately $11,488,000, of its allocated share of cumulative losses from the Local Limited Partnerships in which its investment is zero. With the foreclosure of the property owned by Royal Towers Limited Partnership, the Partnership's share of income for the nine months ended September 30, 2001 was sufficient to recover prior year's losses not previously recognized. The cumulative losses for Capital Park Limited Partnership which was foreclosed upon during the nine months ended September 30, 2001 was $2,266,000. During the year ended December 31, 2001, the noteholder foreclosed on the Partnership's interest in Capital Park Limited Partnership. The note was due February 28, 2001 and was in default until foreclosure. No gain or loss was recorded as a result of this transfer of partnership interest. With the loss of the Partnership's interest, the Partnership will not receive any future benefits from this Local Limited Partnership. During the year ended December 31, 2001, HUD foreclosed on the property owned by Royal Towers Limited Partnership. HUD had controlled the property under a mortgagee-in-possession arrangement since January 2000. As a result of this foreclosure, a gain on foreclosure of approximately $11,060,000 was recognized by Royal Towers Limited Partnership. The outstanding loan balances of approximately $9,328,000 were forgiven and are included in this gain. The Partnership did not recognize a gain or loss as a result of this foreclosure due to previously unrecognized cumulative losses. With the loss of the Local Limited Partnership's property, the Partnership will not receive any future benefits from this Local Limited Partnership. 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 September 30, 2002. During the nine months ended September 30, 2001, the Partnership advanced Royal Towers approximately $11,000 to cover Partnership entity expenses. This amount is included in operating expenses for the nine months ended September 30, 2001. There were no repayments made between the Partnership and Royal Towers prior to its loss to foreclosure in 2001. There were no advances from the Partnership during the nine months ended September 30, 2002 and there were no remaining advances payable to the Partnership from the Local Limited Partnerships at September 30, 2002. The following are combined statements of operations for the three and nine months ended September 30, 2002 and 2001, 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 managing agents of the projects, and are unaudited.
Three Months Ended Nine Months Ended September 30, September 30, 2002 2001 2002 2001 (Restated) (in thousands) (in thousands) Rental income $ 491 $ 507 $ 1,461 $ 2,038 Other income 12 15 52 75 Casualty gain -- -- 136 -- Gain on foreclosure -- -- -- 11,060 Total income 503 522 1,649 13,173 Operating expenses 324 370 996 1,813 Interest, taxes and insurance 405 388 1,173 1,362 Depreciation 99 94 297 407 Total expenses 828 852 2,466 3,582 Net (loss) income $ (325) $ (330) $ (817) $ 9,591 National Housing Partnership Realty Fund IV share of (losses) income $ (322) $ (327) $ (809) $ 9,495
(3) TRANSACTIONS WITH THE GENERAL PARTNER AND AFFILIATES OF THE GENERAL PARTNER During both the nine month periods ended September 30, 2002 and 2001, the Partnership accrued administrative and reporting fees payable to the General Partner in the amount of approximately $87,000 for services provided to the Partnership. The Partnership did not make any payments to the General Partner for these fees during each of the respective periods. The amount due the General Partner by the Partnership for administrative and reporting fees was approximately $1,772,000 at September 30, 2002. During the nine months ended September 30, 2002 and 2001, the General Partner made working capital advances of approximately $39,000 and $7,000, respectively, to the Partnership. No working capital repayments were made during the nine months ended September 30, 2002 or 2001. The amount owed to the General Partner at September 30, 2002 was approximately $805,000 and is payable on demand. Interest is charged on borrowings at the prime rate plus 2% (6.75% at September 30, 2002). Accrued interest on the loan balance amounted to approximately $1,448,000 at September 30, 2002. 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. The General Partner is considering its options regarding collecting the advances including possible acceleration of the repayment of the advances, charging default interest rates and asserting other remedies against the Partnership. All the properties in which the Partnership has invested carry deferred acquisition notes due to the original owners of the properties. These notes are secured by both the Partnership's and the General Partner's interests in the Local Limited Partnerships and are subordinated to the respective mortgage notes on each property for as long as the mortgage notes are insured by HUD. In the event of a default on these notes, the noteholders would be able to assume the General Partner's and the Partnership's interests in the Local Limited Partnerships. The notes were due February 28, 2001 for Kennedy Homes and October 1, 2001 for Loring Towers Apartments. The note payable at Loring Towers Apartments Limited Partnership was purchased by an affiliate of the General Partner during the year ended December 31, 2001. This note had an original maturity date of February 28, 2001 and was extended by the third party noteholder until October 1, 2001 in order to complete this purchase. The note went into default due to non-payment on October 1, 2001 and the partnership interest became subject to foreclosure by the affiliate that purchased the deferred acquisition note. The affiliate is considering foreclosing on the Partnership's interests in Loring Towers Apartments. (4) ABANDONMENT OF LIMITED PARTNERSHIP UNITS During the nine months ended September 30, 2002, the number of Limited Partnership Units decreased by 62 units due to limited partners abandoning their units. In abandoning his or her Limited Partnership Unit(s), a limited partner relinquishes all right, title, and interest in the partnership as of the date of abandonment. However, the limited partner is allocated his or her share of net income or loss for that year. The income or loss per Limited Partnership Unit in the accompanying consolidated statements of operations is calculated based on the number of units outstanding at the beginning of the year. There were no such abandonments in 2001. (5) GOING CONCERN The Local Limited Partnerships' notes payable were due February 28, 2001 and October 1, 2001. Continuation of the Partnership's operations in the present form is dependent on the Local Limited Partnership's ability to extend the maturity dates of these notes, or repay or refinance the notes. There can be no assurance as to when, or if, such holders may seek to exercise such rights. These conditions raise substantial doubt about the ability of the Partnership to continue as a going concern. The financial statements do not include any adjustments which might result from the outcome of this uncertainty. (6) LEGAL PROCEEDINGS The Partnership is unaware of any pending or outstanding litigation that is not of a routine nature arising in the ordinary course of business. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements in certain circumstances. The matters discussed in this report contain certain forward-looking statements, including, without limitation, statements regarding future financial performance and the effect of government regulations. The discussions of the Registrant's business and results of operations, including forward-looking statements pertaining to such matters, do not take into account the effects of any changes to the Registrant's business and results of operations. Actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors including, without limitation: national and local economic conditions; the terms of governmental regulations that affect the Registrant and interpretations of those regulations; the competitive environment in which the Registrant operates; financing risks, including the risk that cash flows from operations may be insufficient to meet required payments of principal and interest; real estate risks, including variations of real estate values and the general economic climate in local markets and competition for tenants in such markets; and possible environmental liabilities. Readers should carefully review the Registrant's financial statements and the notes thereto, as well as the risk factors described in the documents the Registrant files from time to time with the Securities and Exchange Commission. This item should be read in conjunction with the financial statements and other items contained elsewhere in this report. LIQUIDITY AND CAPITAL RESOURCES The Partnership generates cash from distributions from the Local Limited Partnerships. The Partnership's only other source of liquidity is from loans from the General Partner. The General Partner is under no legal obligation to make such loans and will evaluate lending the Partnership additional funds as needed. The Local Limited Partnership's properties receive one or more forms of assistance from Federal, state or local government 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. The General Partner monitors developments in the area of legal and regulatory compliance and is studying new federal laws, including the Sarbanes-Oxley Act of 2002. The Sarbanes-Oxley Act of 2002 mandates or suggests additional compliance measures with regard to governance, disclosure, audit and other areas. In light of these changes, the Partnership expects that it will incur higher expenses related to compliance, including increased legal and audit fees. Cash and cash equivalents amounted to approximately zero at September 30, 2002 as compared to approximately $3,000 at September 30, 2001. The decrease of approximately $2,000 in cash and cash equivalents since December 31, 2001 is due to approximately $41,000 of cash used in operating activities partially offset by approximately $39,000 of cash provided by financing activities. Cash provided by financing activities consisted of advances from the General Partner. The ability of the Partnership to meet its on-going cash requirements, in excess of cash on hand at September 30, 2002, is dependent on distributions received from the Local Limited Partnerships and proceeds from the sales or refinancing of the underlying properties. As of September 30, 2002, the Partnership owed the General Partner approximately $1,772,000 for administrative and reporting services performed. As of September 30, 2002, the Partnership owed the General Partner approximately $805,000 plus accrued interest of approximately $1,448,000 for working capital advances. These advances from the General Partner to the Partnership are due on demand. The payment of the unpaid administrative and reporting fees and advances from the General Partner will most likely result from the sale or refinancing of the Local Limited Partnerships' properties, rather than through recurring operations. The General Partner is in no way legally obligated to make such loans. During the nine months ended September 30, 2001, the Partnership advanced Royal Towers approximately $11,000 to cover Partnership entity expenses. This amount is included in operating expenses for the nine months ended September 30, 2001. There were no repayments made between the Partnership and Royal Towers prior to its loss to foreclosure in 2001. There were no advances from the Partnership during the nine months ended September 30, 2002 and there were no remaining advances payable to the Partnership from the Local Limited Partnerships at September 30, 2002. 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 investment in Local Limited Partnerships, investment carrying values for each of the Local Limited Partnerships has decreased to zero. Cash distributions received are recorded in revenues as distributions received in excess of investment in Local Limited Partnerships. There were no cash distributions received from the Local Limited Partnerships during the nine months ended September 30, 2002. A cash distribution of approximately $3,000 was received from one of the Local Limited Partnerships during the nine months ended September 30, 2001. The receipt of distributions in future quarters is dependent upon the operations of the underlying properties of the Local Limited Partnerships to generate sufficient cash for distribution in accordance with applicable HUD regulations. All the properties in which the Partnership has invested carry deferred acquisition notes due to the original owners of the properties. These notes are secured by both the Partnership's and the General Partner's interests in the Local Limited Partnerships and are subordinated to the respective mortgage notes on each property for as long as the mortgage notes are insured by HUD. In the event of a default on these notes, the noteholders would be able to assume the General Partner's and the Partnership's interests in the Local Limited Partnerships. Due to weak 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 a sale or refinancing of the properties. The notes were due February 28, 2001 for Kennedy Homes and October 1, 2001 for Loring Towers Apartments. The note payable at Loring Towers Apartments was purchased by an affiliate of the General Partner during the year ended December 31, 2001. This note had an original maturity date of February 28, 2001 and was extended by the third party noteholder until October 1, 2001 in order to complete this purchase. The note went into default due to non-payment on October 1, 2001 and the Partnership interest became subject to foreclosure by the affiliate that purchased the deferred acquisition note. Each of the notes are in default and the noteholders have not exercised their rights under the notes, including the foreclosure on NHP's and the Partnership's interests in the Local Limited Partnerships. Continuation of the Local Limited Partnership's operations in the present form is dependent on its ability to extend the maturity date of their respective notes, or to repay or refinance their note. The financial statements do not include any adjustments which might result from the outcome of this uncertainty. There can be no assurance as to when, or if, such holders may seek to exercise such rights. RESULTS OF OPERATIONS The Partnership originally invested as a limited partner in four Local Limited Partnerships which operate four rental housing properties. In prior years, results of operations were affected by the Partnership's share of losses from the Local Limited Partnerships in which it has invested, to the extent the Partnership still had a carrying basis in a respective Local Limited Partnership. As of September 30, 2002, the Partnership had no carrying value in any of the Local Limited Partnerships and therefore, reflected no share of income or losses from its two remaining Local Limited Partnerships. During the year ended December 31, 2001, the noteholder foreclosed on the Partnership's interest in Capital Park Limited Partnership. The note was due February 28, 2001 and was in default until foreclosure. No gain or loss was recorded as a result of this transfer of partnership interest. With the loss of the Partnership's interest, the Partnership will not receive any future benefits from this Local Limited Partnership. During the year ended December 31, 2001, HUD foreclosed on the property owned by Royal Towers Limited Partnership. HUD had controlled the property under a mortgagee-in-possession arrangement since January 2000. As a result of this foreclosure, a gain on foreclosure of approximately $11,060,000 was recognized by Royal Towers Limited Partnership. The outstanding loan balances of approximately $9,328,000 were forgiven and are included in this gain. The Partnership did not recognize a gain or loss as a result of this foreclosure due to previously unrecognized cumulative losses. With the loss of the Local Limited Partnership's property, the Partnership will not receive any future benefits from this Local Limited Partnership. The Partnership recognized a net loss of approximately $249,000 for the nine months ended September 30, 2002 compared to a net loss of approximately $283,000 for the nine months ended September 30, 2001. The decrease in net loss is due to decreased interest and other operating expenses. Interest expense decreased due to a decrease in the average interest rate charged on the loans due to the General Partner. Other operating expenses decreased due to an advance to Royal Towers in 2001 which was expensed. No similar advances were made during the nine months ended September 30, 2002. This decrease was partially offset by an increase in professional expenses. The Partnership did not recognize approximately $809,000 of its allocated share of losses from two Local Limited Partnerships for the nine months ended September 30, 2002, as the Partnership's net carrying balance in these Local Limited Partnerships was reduced to zero in prior years. As of September 30, 2002, the Partnership had not recognized approximately $11,488,000, of its allocated share of cumulative losses from the Local Limited Partnerships in which its investment is zero. With the foreclosure of the property owned by Royal Towers Limited Partnership, the Partnership's share of income for the nine months ended September 30, 2001 was sufficient to recover prior year's losses not previously recognized. The cumulative losses for Capital Park Limited Partnership which was foreclosed upon during the nine months ended September 30, 2001 was $2,266,000. ITEM 3. CONTROLS AND PROCEDURES The principal executive officer and principal financial officer of the General Partner, who are the equivalent of the Partnership's principal executive officer and principal financial officer, respectively, have, within 90 days of the filing date of this quarterly report, evaluated the effectiveness of the Partnership's disclosure controls and procedures (as defined in Exchange Act Rules (13a-14(c) and (15d-14(c)) and have determined that such disclosure controls and procedures are adequate. There have been no significant changes in the Partnership's internal controls or in other factors that could significantly affect the Partnership's internal controls since the date of evaluation. The Partnership does not believe any significant deficiencies or material weaknesses exist in the Partnership's internal controls. Accordingly, no corrective actions have been taken. PART II - OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K a) Exhibits: Exhibit 99, Certification of Chief Executive Officer and Chief Financial Officer. b) Reports on Form 8-K filed during the quarter ended September 30, 2002: None. SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. NATIONAL 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 By: /s/Patrick J. Foye Patrick J. Foye President By: /s/Thomas C. Novosel Thomas C. Novosel Senior Vice President and Chief Accounting Officer Date: November 13, 2002 CERTIFICATION I, Patrick J. Foye, certify that: 1. I have reviewed this quarterly report on Form 10-QSB of National Housing Partnership Realty Fund IV; 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have: a) Designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; b) Evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and c) Presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: November 13, 2002 _______________________ Patrick J. Foye President of National Corporation for Housing Partnerships, equivalent of the chief executive officer of the Partnership CERTIFICATION I, Paul J. McAuliffe, certify that: 1. I have reviewed this quarterly report on Form 10-QSB of National Housing Partnership Realty Fund IV; 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have: a) Designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; b) Evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and c) Presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: November 13, 2002 _______________________ Paul J. McAuliffe Executive Vice President and Chief Financial Officer of National Corporation for Housing Partnerships, equivalent of the chief financial officer of the Partnership Exhibit 99 Certification of CEO and CFO Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 In connection with the Quarterly Report on Form 10-QSB of National Housing Realty Fund IV (the "Partnership"), for the quarterly period ended September 30, 2002 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Patrick J. Foye, as the equivalent of the chief executive officer of the Partnership, and Paul J. McAuliffe, as the equivalent of the chief financial officer of the Partnership, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge: (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership. /s/ Patrick J. Foye Name: Patrick J. Foye Date: November 13, 2002 /s/ Paul J. McAuliffe Name: Paul J. McAuliffe Date: November 13, 2002 This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Partnership for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.