10-Q

FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

(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, 2006
or
( )   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______
Commission file number        0-26200

BOSTON CAPITAL TAX CREDIT FUND IV L.P.
(Exact name of registrant as specified in its charter)

Delaware	04-3208648
(State or other jurisdiction	(I.R.S. Employer
of incorporation or organization)	Identification No.)

One Boston Place, Suite 2100, Boston, Massachusetts  02108
(Address of principal executive offices)           (Zip Code)

Registrant's telephone number, including area code (617)624-8900

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 [ ] No [ X ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act.

Large accelerated filer[ ] Accelerated filer[ ] Non-accelerated filer[ X ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [ ] No [ X ]

BOSTON CAPITAL TAX CREDIT FUND IV L.P.

QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 2006

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION
				Pages
	Item 1. Financial Statements
		Balance Sheets	3-30
		Statements of Operations	31-86
		Statements of Changes in Partners'  Capital	87-101
		Statements of Cash Flows	102-129
		Notes to Financial Statements	130-163
	Item 2. Management's Discussion and Analysis of Financial Condition and Results of  Operations		164-231
	Item 3. Quantitative and Qualitative Disclosure About Market Risk		232
	Item 4. Controls and Procedures		232
PART II - OTHER INFORMATION
	Item 1. Legal Proceedings		233
	Item 1A. Risk Factors		233
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		233
	Item 3. Defaults Upon Senior Securities		233
	Item 4. Submission of Matters to a Vote of Security Holders		233
	Item 5. Other Information		233
	Item 6. Exhibits and Reports on Form 8-K		233
	Signatures		234

Boston Capital Tax Credit Fund IV L.P.

BALANCE SHEETS

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	295,940,995	$	307,258,793
OTHER ASSETS
Cash and cash equivalents		11,219,805		11,837,413
Investments		-		2,556,017
Notes receivable		2,136,090		2,714,233
Acquisition costs net		33,369,033		34,090,520
Other assets		2,059,116		2,044,932
	$	344,725,039	$	360,501,908
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	40,555	$	61,961
Accounts payable affiliates		32,575,804		30,288,894
Capital contributions payable		5,982,705		7,887,559
		38,599,064		38,238,414
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs; 83,651,080 issued and outstanding		310,230,934		326,207,079
General Partner		(4,104,959)		(3,943,585)
		306,125,975		322,263,494
	$	344,725,039	$	360,501,908

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 20

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	671,869	$	1,039,598
OTHER ASSETS
Cash and cash equivalents		266,122		802,957
Investments		-		-
Notes receivable		-		-
Acquisition costs net		71,444		73,230
Other assets		26,803		43,325
	$	1,036,238	$	1,959,110
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	-	$	-
Accounts payable affiliates		2,550,812		2,973,288
Capital contributions payable		-		-
		2,550,812		2,973,288
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  3,866,700 issued and outstanding		(1,191,177)		(695,785)
General Partner		(323,397)		(318,393)
		(1,514,574)		(1,014,178)
	$	1,036,238	$	1,959,110

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 21

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	400,997	$	507,276
OTHER ASSETS
Cash and cash equivalents		35,264		60,403
Investments		-		-
Notes receivable		236,476		236,476
Acquisition costs net		39,077		40,054
Other assets		280,232		280,232
	$	992,046	$	1,124,441
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	-	$	-
Accounts payable affiliates		1,392,470		1,279,550
Capital contributions payable		236,479		236,479
		1,628,949		1,516,029
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  1,892,700 issued and outstanding		(468,582)		(225,720)
General Partner		(168,321)		(165,868)
		(636,903)		(391,588)
	$	992,046	$	1,124,441

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 22

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	1,041,307	$	1,125,992
OTHER ASSETS
Cash and cash equivalents		159,625		170,119
Investments		-		-
Notes receivable		-		-
Acquisition costs net		122,796		125,866
Other assets		5,437		5,437
	$	1,329,165	$	1,427,414
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	-	$	-
Accounts payable affiliates		2,405,992		2,278,697
Capital contributions payable		18,770		20,270
		2,424,762		2,298,967
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  2,564,400 issued and outstanding		(865,560)		(643,756)
General Partner		(230,037)		(227,797)
		(1,095,597)		(871,553)
	$	1,329,165	$	1,427,414

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 23

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	2,252,576	$	2,647,858
OTHER ASSETS
Cash and cash equivalents		63,965		84,479
Investments		-		-
Notes receivable		-		-
Acquisition costs net		182,615		187,180
Other assets		6,135		6,135
	$	2,505,291	$	2,925,652
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	-	$	-
Accounts payable affiliates		1,915,137		1,795,005
Capital contributions payable		-		-
		1,915,137		1,795,005
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  3,336,727 issued and outstanding		869,099		1,404,187
General Partner		(278,945)		(273,540)
		590,154		1,130,647
	$	2,505,291	$	2,925,652

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 24

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	1,415,182	$	1,590,415
OTHER ASSETS
Cash and cash equivalents		164,309		172,640
Investments		-		-
Notes receivable		-		-
Acquisition costs net		204,092		209,194
Other assets		201,640		201,640
	$	1,985,223	$	2,173,889
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	678	$	678
Accounts payable affiliates		1,913,552		1,799,684
Capital contributions payable		9,999		9,999
		1,924,229		1,810,361
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  2,169,878 issued and outstanding		245,682		545,191
General Partner		(184,688)		(181,663)
		60,994		363,528
	$	1,985,223	$	2,173,889

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 25

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	7,035,718	$	7,307,685
OTHER ASSETS
Cash and cash equivalents		242,775		263,159
Investments		-		-
Notes receivable		-		-
Acquisition costs net		204,965		210,089
Other assets		40,320		40,320
	$	7,523,778	$	7,821,253
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	978	$	978
Accounts payable affiliates		1,727,748		1,606,410
Capital contributions payable		61,733		61,733
		1,790,459		1,669,121
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  3,026,109 issued and outstanding		5,933,430		6,348,055
General Partner		(200,111)		(195,923)
		5,733,319		6,152,132
	$	7,523,778	$	7,821,253

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 26

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	9,746,655	$	10,433,834
OTHER ASSETS
Cash and cash equivalents		303,391		285,372
Investments		-		-
Notes receivable		129,062		129,062
Acquisition costs net		363,433		371,885
Other assets		28,478		28,478
	$	10,571,019	$	11,248,631
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	90	$	90
Accounts payable affiliates		2,927,700		2,760,320
Capital contributions payable		29,490		29,490
		2,957,280		2,789,900
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  3,995,900 issued and outstanding		7,877,855		8,714,397
General Partner		(264,116)		(255,666)
		7,613,739		8,458,731
	$	10,571,019	$	11,248,631

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 27

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	8,829,542	$	9,322,441
OTHER ASSETS
Cash and cash equivalents		118,241		116,714
Investments		-		-
Notes receivable		-		-
Acquisition costs net		298,935		306,408
Other assets		104,014		104,014
	$	9,350,732	$	9,849,577
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	-	$	-
Accounts payable affiliates		2,143,325		1,985,723
Capital contributions payable		39,749		39,749
		2,183,074		2,025,472
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  2,460,700 issued and outstanding		7,302,428		7,952,311
General Partner		(134,770)		(128,206)
		7,167,658		7,824,105
	$	9,350,732	$	9,849,577

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 28

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	13,559,311	$	14,091,283
OTHER ASSETS
Cash and cash equivalents		367,927		433,154
Investments		-		-
Notes receivable		-		-
Acquisition costs net		66,012		67,662
Other assets		2,595		2,595
	$	13,995,845	$	14,594,694
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	-	$	-
Accounts payable affiliates		251,174		159,116
Capital contributions payable		40,968		40,968
		292,142		200,084
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  4,000,738 issued and outstanding		13,910,414		14,594,412
General Partner		(206,711)		(199,802)
		13,703,703		14,394,610
	$	13,995,845	$	14,594,694

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 29

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	9,585,647	$	10,142,930
OTHER ASSETS
Cash and cash equivalents		218,295		134,976
Investments		-		134,706
Notes receivable		-		-
Acquisition costs net		66,175		67,831
Other assets		573		573
	$	9,870,690	$	10,481,016
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	-	$	-
Accounts payable affiliates		1,390,727		1,261,737
Capital contributions payable		45,783		45,783
		1,436,510		1,307,520
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  3,991,800 issued and outstanding		8,688,485		9,420,408
General Partner		(254,305)		(246,912)
		8,434,180		9,173,496
	$	9,870,690	$	10,481,016

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 30

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	7,939,213	$	8,375,824
OTHER ASSETS
Cash and cash equivalents		358,179		412,161
Investments		-		-
Notes receivable		-		-
Acquisition costs net		424,728		435,347
Other assets		19,167		-
	$	8,741,287	$	9,223,332
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	-	$	-
Accounts payable affiliates		686,707		626,247
Capital contributions payable		127,396		127,396
		814,103		753,643
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  2,651,000issued and outstanding		8,074,969		8,612,049
General Partner		(147,785)		(142,360)
		7,927,184		8,469,689
	$	8,741,287	$	9,223,332

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 31

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	12,118,562	$	12,900,025
OTHER ASSETS
Cash and cash equivalents		136,399		128,337
Investments		-		-
Notes receivable		570,454		570,454
Acquisition costs net		-		-
Other assets		134,137		134,137
	$	12,959,552	$	13,732,953
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	-	$	-
Accounts payable affiliates		861,120		662,400
Capital contributions payable		611,150		611,150
		1,472,270		1,273,550
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  4,417,857 issued and outstanding		11,751,668		12,714,068
General Partner		(264,386)		(254,665)
		11,487,282		12,459,403
	$	12,959,552	$	13,732,953

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 32

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	16,805,681	$	17,553,871
OTHER ASSETS
Cash and cash equivalents		325,063		386,782
Investments		-		-
Notes receivable		46,908		46,908
Acquisition costs net		608,075		623,273
Other assets		312,486		312,486
	$	18,098,213	$	18,923,320
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	-	$	-
Accounts payable affiliates		1,407,969		1,292,198
Capital contributions payable		484,756		484,756
		1,892,725		1,776,954
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  4,754,198 issued and outstanding		16,449,794		17,381,263
General Partner		(244,306)		(234,897)
		16,205,488		17,146,366
	$	18,098,213	$	18,923,320

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 33

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	9,854,043	$	10,309,424
OTHER ASSETS
Cash and cash equivalents		252,249		197,136
Investments		-		-
Notes receivable		-		32,300
Acquisition costs net		545,595		559,233
Other assets		125,000		125,000
	$	10,776,887	$	11,223,093
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	-	$	-
Accounts payable affiliates		902,276		815,294
Capital contributions payable		194,154		194,154
		1,096,430		1,009,448
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  2,636,533 issued and outstanding		9,809,433		10,337,289
General Partner		(128,976)		(123,644)
		9,680,457		10,213,645
	$	10,776,887	$	11,223,093

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 34

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	13,004,252	$	13,515,476
OTHER ASSETS
Cash and cash equivalents		105,329		124,985
Investments		-		-
Notes receivable		-		-
Acquisition costs net		867,083		888,761
Other assets		-		-
	$	13,976,664	$	14,529,222
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	-	$	-
Accounts payable affiliates		1,623,181		1,476,583
Capital contributions payable		8,244		8,244
		1,631,425		1,484,827
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  3,529,319 issued and outstanding		12,522,178		13,214,342
General Partner		(176,939)		(169,947)
		12,345,239		13,044,395
	$	13,976,664	$	14,529,222

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 35

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	13,816,119	$	14,288,223
OTHER ASSETS
Cash and cash equivalents		430,013		481,041
Investments		-		-
Notes receivable		-		-
Acquisition costs net		2,457,223		2,518,655
Other assets		14,109		14,109
	$	16,717,464	$	17,302,028
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	-	$	-
Accounts payable affiliates		686,082		611,902
Capital contributions payable		163,782		163,782
		849,864		775,684
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  3,300,463 issued and outstanding		15,990,948		16,643,105
General Partner		(123,348)		(116,761)
		15,867,600		16,526,344
	$	16,717,464	$	17,302,028

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 36

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	9,331,505	$	9,558,174
OTHER ASSETS
Cash and cash equivalents		95,516		79,450
Investments		-		-
Notes receivable		-		-
Acquisition costs net		1,687,211		1,729,387
Other assets		3,061		3,061
	$	11,117,293	$	11,370,072
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	147	$	-
Accounts payable affiliates		1,077,037		993,893
Capital contributions payable		-		-
		1,077,184		993,893
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  2,106,837 issued and outstanding		10,118,372		10,451,081
General Partner		(78,263)		(74,902)
		10,040,109		10,376,179
	$	11,117,293	$	11,370,072

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 37

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	11,578,016	$	11,987,598
OTHER ASSETS
Cash and cash equivalents		362,946		268,593
Investments		-		-
Notes receivable		-		67,239
Acquisition costs net		1,889,900		1,934,893
Other assets		81,235		81,235
	$	13,912,097	$	14,339,558
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	1,817	$	-
Accounts payable affiliates		810,667		723,235
Capital contributions payable		138,438		138,438
		950,922		861,673
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  2,512,500 issued and outstanding		13,047,126		13,558,669
General Partner		(85,951)		(80,784)
		12,961,175		13,477,885
	$	13,912,097	$	14,339,558

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 38

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	12,679,481	$	12,865,213
OTHER ASSETS
Cash and cash equivalents		202,406		193,474
Investments		-		-
Notes receivable		-		-
Acquisition costs net		2,157,775		2,205,726
Other assets		4,875		4,875
	$	15,044,537	$	15,269,288
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	61	$	-
Accounts payable affiliates		871,171		784,873
Capital contributions payable		-		-
		871,232		784,873
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  2,543,100 issued and outstanding		14,249,856		14,557,855
General Partner		(76,551)		(73,440)
		14,173,305		14,484,415
	$	15,044,537	$	15,269,288

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 39

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	11,133,062	$	11,473,299
OTHER ASSETS
Cash and cash equivalents		322,067		368,313
Investments		-		-
Notes receivable		-		-
Acquisition costs net		1,997,055		2,040,945
Other assets		-		-
	$	13,452,184	$	13,882,557
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	-	$	-
Accounts payable affiliates		815,379		782,919
Capital contributions payable		-		-
		815,379		782,919
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  2,292,152 issued and outstanding		12,706,878		13,165,083
General Partner		(70,073)		(65,445)
		12,636,805		13,099,638
	$	13,452,184	$	13,882,557

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 40

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	14,265,705	$	14,641,314
OTHER ASSETS
Cash and cash equivalents		225,793		216,126
Investments		-		-
Notes receivable		-		-
Acquisition costs net		2,436,544		2,487,742
Other assets		9,873		37,381
	$	16,937,915	$	17,382,563
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	36,733	$	36,733
Accounts payable affiliates		1,259,019		1,194,877
Capital contributions payable		8,694		8,694
		1,304,446		1,240,304
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  2,630,256 issued and outstanding		15,702,077		16,205,779
General Partner		(68,608)		(63,520)
		15,633,469		16,142,259
	$	16,937,915	$	17,382,563

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 41

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	11,713,883	$	12,365,495
OTHER ASSETS
Cash and cash equivalents		6,549		83,998
Investments		-		-
Notes receivable		-		-
Acquisition costs net		2,657,233		2,714,999
Other assets		18,034		18,034
	$	14,395,699	$	15,182,526
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	51	$	16,522
Accounts payable affiliates		1,422,921		1,266,487
Capital contributions payable		165		80,566
		1,423,137		1,363,575
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  2,891,626 issued and outstanding		13,092,006		13,929,931
General Partner		(119,444)		(110,980)
		12,972,562		13,818,951
	$	14,395,699	$	15,182,526

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 42

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	15,135,184	$	15,197,400
OTHER ASSETS
Cash and cash equivalents		503,657		971,373
Investments		-		-
Notes receivable		666,564		494,442
Acquisition costs net		2,716,377		2,772,969
Other assets		67,969		67,969
	$	19,089,751	$	19,504,153
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	-	$	-
Accounts payable affiliates		677,238		547,004
Capital contributions payable		775,421		613,343
		1,452,659		1,160,347
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  2,744,262 issued and outstanding		17,701,659		18,401,306
General Partner		(64,567)		(57,500)
		17,637,092		18,343,806
	$	19,089,751	$	19,504,153

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 43

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	19,632,163	$	19,990,185
OTHER ASSETS
Cash and cash equivalents		769,464		189,255
Investments		-		-
Notes receivable		186,626		837,352
Acquisition costs net		3,548,917		3,622,795
Other assets		104,439		261,996
	$	24,241,609	$	24,901,583
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	-	$	-
Accounts payable affiliates		679,477		611,452
Capital contributions payable		490,522		399,811
		1,169,999		1,011,263
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  3,637,987 issued and outstanding		23,162,416		23,972,939
General Partner		(90,806)		(82,619)
		23,071,610		23,890,320
	$	24,241,609	$	24,901,583

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 44

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	16,084,363	$	16,680,157
OTHER ASSETS
Cash and cash equivalents		1,102,179		1,356,192
Investments		-		228,762
Notes receivable		-		-
Acquisition costs net		2,516,587		2,567,428
Other assets		196,604		-
	$	19,899,733	$	20,832,539
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	-	$	-
Accounts payable affiliates		67,351		-
Capital contributions payable		781,022		1,014,622
		848,373		1,014,622
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  2,701,973 issued and outstanding		19,098,295		19,857,186
General Partner		(46,935)		(39,269)
		19,051,360		19,817,917
	$	19,899,733	$	20,832,539

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 45

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	26,032,116	$	26,768,832
OTHER ASSETS
Cash and cash equivalents		1,812,567		1,167,018
Investments		-		1,046,688
Notes receivable		300,000		300,000
Acquisition costs net		3,020,608		3,081,642
Other assets		267,543		267,543
	$	31,432,834	$	32,631,723
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	-	$	6,960
Accounts payable affiliates		71,317		-
Capital contributions payable		1,125,447		1,437,480
		1,196,764		1,444,440
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  4,014,367 issued and outstanding		30,287,371		31,229,072
General Partner		(51,301)		(41,789)
		30,236,070		31,187,283
	$	31,432,834	$	32,631,723

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 46

		September 30, 2006 (Unaudited)		March 31, 2006 (Audited)
ASSETS
INVESTMENTS IN OPERATING PARTNERSHIPS
(Note D)	$	20,278,843	$	20,578,971
OTHER ASSETS
Cash and cash equivalents		2,269,515		2,689,206
Investments		-		1,145,861
Notes receivable		-		-
Acquisition costs net		2,218,578		2,247,326
Other assets		4,357		4,357
	$	24,771,293	$	26,665,721
LIABILITIES
Accounts payable & accrued expenses
(Note C)	$	-	$	-
Accounts payable affiliates		38,255		-
Capital contributions payable		590,543		2,120,652
		628,798		2,120,652
PARTNERS' EQUITY (DEFICIT)
Limited Partners
Units of limited partnership  interest, $10 stated value per BAC;  87,500,000 authorized BACs;  2,980,998 issued and outstanding		24,163,814		24,562,362
General Partner		(21,319)		(17,293)
		24,142,495		24,545,069
	$	24,771,293	$	26,665,721

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

		2006		2005
Income
Interest income	$	167,655	$	205,449
Other income		12,749		96,526
		180,404		301,975
Share of loss from Operating  Partnerships(Note D)		(5,819,208)		(5,695,728)
Expenses
Professional fees		468,685		591,528
Fund management fee (Note C)		1,577,678		1,688,028
Amortization		399,479		398,646
General and administrative expenses		108,209		141,274
		2,554,051		2,819,476
NET INCOME (LOSS)	$	(8,192,855)	$	(8,213,229)
Net income (loss) allocated to limited partners	$	(8,110,928)	$	(8,131,097)
Net income (loss) allocated to general partner	$	(81,927)	$	(82,132)
Net income (loss) per BAC	$	(.10)	$	(.10)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 20

		2006		2005
Income
Interest income	$	2,562	$	22,007
Other income		2,780		9,653
		5,342		31,660
Share of loss from Operating  Partnerships(Note D)		(162,740)		(109,467)
Expenses
Professional fees		18,626		29,310
Fund management fee (Note C)		50,673		63,428
Amortization		893		893
General and administrative expenses		3,635		8,021
		73,827		101,652
NET INCOME (LOSS)	$	(231,225)	$	(179,459)
Net income (loss) allocated to limited partners	$	(228,913)	$	(177,664)
Net income (loss) allocated to general partner	$	(2,312)	$	(1,795)
Net income (loss) per BAC	$	(.06)	$	(.05)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 21

		2006		2005
Income
Interest income	$	183	$	74
Other income		4,297		-
		4,480		74
Share of loss from Operating  Partnerships(Note D)		(29,623)		(82,644)
Expenses
Professional fees		32,730		17,786
Fund management fee (Note C)		52,232		56,460
Amortization		488		488
General and administrative expenses		3,172		2,384
		88,622		77,118
NET INCOME (LOSS)	$	(113,765)	$	(159,688)
Net income (loss) allocated to limited partners	$	(112,627)	$	(158,091)
Net income (loss) allocated to general partner	$	(1,138)	$	(1,597)
Net income (loss) per BAC	$	(.06)	$	(.08)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 22

		2006		2005
Income
Interest income	$	691	$	240
Other income		725		-
		1,416		240
Share of loss from Operating  Partnerships(Note D)		(10,835)		(210,265)
Expenses
Professional fees		20,518		27,764
Fund management fee (Note C)		60,157		57,648
Amortization		1,535		1,535
General and administrative expenses		3,439		2,687
		85,649		89,634
NET INCOME (LOSS)	$	(95,068)	$	(299,659)
Net income (loss) allocated to limited partners	$	(94,117)	$	(296,662)
Net income (loss) allocated to general partner	$	(951)	$	(2,997)
Net income (loss) per BAC	$	(.04)	$	(.12)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 23

		2006		2005
Income
Interest income	$	235	$	111
Other income		801		4,826
		1,036		4,937
Share of loss from Operating  Partnerships(Note D)		(109,982)		(288,499)
Expenses
Professional fees		18,364		24,975
Fund management fee (Note C)		58,002		54,066
Amortization		2,283		2,283
General and administrative expenses		3,552		2,984
		82,201		84,308
NET INCOME (LOSS)	$	(191,147)	$	(367,870)
Net income (loss) allocated to limited partners	$	(189,236)	$	(364,191)
Net income (loss) allocated to general partner	$	(1,911)	$	(3,679)
Net income (loss) per BAC	$	(.06)	$	(.11)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 24

		2006		2005
Income
Interest income	$	533	$	193
Other income		-		2,413
		533		2,606
Share of loss from Operating  Partnerships(Note D)		(91,410)		(79,738)
Expenses
Professional fees		19,376		24,534
Fund management fee (Note C)		52,733		49,615
Amortization		2,551		2,551
General and administrative expenses		3,279		2,472
		77,939		79,172
NET INCOME (LOSS)	$	(168,816)	$	(156,304)
Net income (loss) allocated to limited partners	$	(167,128)	$	(154,741)
Net income (loss) allocated to general partner	$	(1,688)	$	(1,563)
Net income (loss) per BAC	$	(.08)	$	(.07)

The accompanying notes are an integral part of this statement




Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 25

		2006		2005
Income
Interest income	$	879	$	755
Other income		-		-
		879		755
Share of loss from Operating  Partnerships(Note D)		(157,245)		(63,920)
Expenses
Professional fees		19,114		24,614
Fund management fee (Note C)		64,852		66,044
Amortization		3,805		3,805
General and administrative expenses		3,980		3,362
		91,751		97,825
NET INCOME (LOSS)	$	(248,117)	$	(160,990)
Net income (loss) allocated to limited partners	$	(245,636)	$	(159,380)
Net income (loss) allocated to general partner	$	(2,481)	$	(1,610)
Net income (loss) per BAC	$	(.08)	$	(.05)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 26

		2006		2005
Income
Interest income	$	1,791	$	362
Other income		4,146		14,479
		5,937		14,841
Share of loss from Operating  Partnerships(Note D)		(328,023)		(194,691)
Expenses
Professional fees		30,391		36,953
Fund management fee (Note C)		84,914		104,465
Amortization		4,226		4,226
General and administrative expenses		3,799		3,129
		123,330		148,773
NET INCOME (LOSS)	$	(445,416)	$	(328,623)
Net income (loss) allocated to limited partners	$	(440,962)	$	(325,337)
Net income (loss) allocated to general partner	$	(4,454)	$	(3,286)
Net income (loss) per BAC	$	(.11)	$	(.08)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 27

		2006		2005
Income
Interest income	$	322	$	124
Other income		-		2,413
		322		2,537
Share of loss from Operating  Partnerships(Note D)		(265,262)		(150,987)
Expenses
Professional fees		15,211		20,336
Fund management fee (Note C)		61,291		78,801
Amortization		3,914		3,914
General and administrative expenses		3,231		2,510
		83,647		105,561
NET INCOME (LOSS)	$	(348,587)	$	(254,011)
Net income (loss) allocated to limited partners	$	(345,101)	$	(251,471)
Net income (loss) allocated to general partner	$	(3,486)	$	(2,540)
Net income (loss) per BAC	$	(.14)	$	(.10)

The accompanying notes are an integral part of this statement

Boston Capital Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 28

		2006		2005
Income
Interest income	$	1,391	$	3,161
Other income		-		14,479
		1,391		17,640
Share of loss from Operating  Partnerships(Note D)		(273,948)		(368,075)
Expenses
Professional fees		20,101		27,283
Fund management fee (Note C)		71,524		83,529
Amortization		825		825
General and administrative expenses		3,403		2,982
		95,853		114,619
NET INCOME (LOSS)	$	(368,410)	$	(465,054)
Net income (loss) allocated to limited partners	$	(364,726)	$	(460,403)
Net income (loss) allocated to general partner	$	(3,684)	$	(4,651)
Net income (loss) per BAC	$	(.09)	$	(.12)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 29

		2006		2005
Income
Interest income	$	3,756	$	2,036
Other income		-		7,240
		3,756		9,276
Share of loss from Operating  Partnerships(Note D)		(259,388)		(415,215)
Expenses
Professional fees		18,626		25,561
Fund management fee (Note C)		79,457		75,062
Amortization		828		828
General and administrative expenses		3,488		3,869
		102,399		105,320
NET INCOME (LOSS)	$	(358,031)	$	(511,259)
Net income (loss) allocated to limited partners	$	(354,451)	$	(506,146)
Net income (loss) allocated to general partner	$	(3,580)	$	(5,113)
Net income (loss) per BAC	$	(.09)	$	(.13)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 30

		2006		2005
Income
Interest income	$	2,249	$	281
Other income		-		-
		2,249		281
Share of loss from Operating  Partnerships(Note D)		(267,581)		(239,347)
Expenses
Professional fees		16,485		22,537
Fund management fee (Note C)		50,630		55,230
Amortization		5,310		5,310
General and administrative expenses		3,308		2,521
		75,733		85,598
NET INCOME (LOSS)	$	(341,065)	$	(324,664)
Net income (loss) allocated to limited partners	$	(337,654)	$	(321,417)
Net income (loss) allocated to general partner	$	(3,411)	$	(3,247)
Net income (loss) per BAC	$	(.13)	$	(.12)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 31

		2006		2005
Income
Interest income	$	284	$	117
Other income		-		-
		284		117
Share of loss from Operating  Partnerships(Note D)		(431,801)		(343,756)
Expenses
Professional fees		19,852		31,807
Fund management fee (Note C)		67,229		99,360
Amortization		-		-
General and administrative expenses		3,616		3,022
		90,697		134,189
NET INCOME (LOSS)	$	(522,214)	$	(477,828)
Net income (loss) allocated to limited partners	$	(516,992)	$	(473,050)
Net income (loss) allocated to general partner	$	(5,222)	$	(4,778)
Net income (loss) per BAC	$	(.12)	$	(.11)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 32

		2006		2005
Income
Interest income	$	1,000	$	2,423
Other income		-		7,240
		1,000		9,663
Share of loss from Operating  Partnerships(Note D)		(350,993)		(400,250)
Expenses
Professional fees		22,623		26,882
Fund management fee (Note C)		78,885		82,884
Amortization		9,181		10,763
General and administrative expenses		3,462		3,997
		114,151		124,526
NET INCOME (LOSS)	$	(464,144)	$	(515,113)
Net income (loss) allocated to limited partners	$	(459,503)	$	(509,962)
Net income (loss) allocated to general partner	$	(4,641)	$	(5,151)
Net income (loss) per BAC	$	(.10)	$	(.11)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 33

		2006		2005
Income
Interest income	$	19,929	$	173
Other income		-		2,413
		19,929		2,586
Share of loss from Operating  Partnerships(Note D)		(249,849)		(135,434)
Expenses
Professional fees		9,707		13,317
Fund management fee (Note C)		43,491		43,491
Amortization		6,819		6,819
General and administrative expenses		3,215		3,270
		63,232		66,897
NET INCOME (LOSS)	$	(293,152)	$	(199,745)
Net income (loss) allocated to limited partners	$	(290,220)	$	(197,748)
Net income (loss) allocated to general partner	$	(2,932)	$	(1,997)
Net income (loss) per BAC	$	(.11)	$	(.08)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 34

		2006		2005
Income
Interest income	$	378	$	158
Other income		-		-
		378		158
Share of loss from Operating  Partnerships(Note D)		(258,143)		(367,935)
Expenses
Professional fees		14,818		20,187
Fund management fee (Note C)		73,299		73,299
Amortization		10,984		10,984
General and administrative expenses		3,302		3,577
		102,403		108,047
NET INCOME (LOSS)	$	(360,168)	$	(475,824)
Net income (loss) allocated to limited partners	$	(356,566)	$	(471,066)
Net income (loss) allocated to general partner	$	(3,602)	$	(4,758)
Net income (loss) per BAC	$	(.10)	$	(.13)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 35

		2006		2005
Income
Interest income	$	1,132	$	1,006
Other income		-		-
		1,132		1,006
Share of loss from Operating  Partnerships(Note D)		(248,849)		(271,148)
Expenses
Professional fees		7,712		11,235
Fund management fee (Note C)		57,090		57,090
Amortization		32,309		32,309
General and administrative expenses		3,336		4,299
		100,447		104,933
NET INCOME (LOSS)	$	(348,164)	$	(375,075)
Net income (loss) allocated to limited partners	$	(344,682)	$	(371,324)
Net income (loss) allocated to general partner	$	(3,482)	$	(3,751)
Net income (loss) per BAC	$	(.10)	$	(.11)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 36

		2006		2005
Income
Interest income	$	232	$	83
Other income		-		4,826
		232		4,909
Share of loss from Operating  Partnerships(Note D)		(108,023)		(134,648)
Expenses
Professional fees		9,416		13,003
Fund management fee (Note C)		23,243		40,005
Amortization		22,116		22,116
General and administrative expenses		3,111		4,856
		57,886		79,980
NET INCOME (LOSS)	$	(165,677)	$	(209,719)
Net income (loss) allocated to limited partners	$	(164,020)	$	(207,622)
Net income (loss) allocated to general partner	$	(1,657)	$	(2,097)
Net income (loss) per BAC	$	(.08)	$	(.10)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 37

		2006		2005
Income
Interest income	$	39,998	$	384
Other income		-		-
		39,998		384
Share of loss from Operating  Partnerships(Note D)		(212,496)		(159,147)
Expenses
Professional fees		9,203		12,666
Fund management fee (Note C)		48,716		51,216
Amortization		23,706		23,706
General and administrative expenses		4,827		3,573
		86,452		91,161
NET INCOME (LOSS)	$	(258,950)	$	(249,924)
Net income (loss) allocated to limited partners	$	(256,361)	$	(247,425)
Net income (loss) allocated to general partner	$	(2,589)	$	(2,499)
Net income (loss) per BAC	$	(.10)	$	(.10)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 38

		2006		2005
Income
Interest income	$	1,142	$	183
Other income		-		4,826
		1,142		5,009
Share of loss from Operating  Partnerships(Note D)		(107,535)		(108,008)
Expenses
Professional fees		10,600		14,636
Fund management fee (Note C)		29,750		41,100
Amortization		24,728		24,728
General and administrative expenses		4,354		4,136
		69,432		84,600
NET INCOME (LOSS)	$	(175,825)	$	(187,599)
Net income (loss) allocated to limited partners	$	(174,067)	$	(185,723)
Net income (loss) allocated to general partner	$	(1,758)	$	(1,876)
Net income (loss) per BAC	$	(.07)	$	(.07)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 39

		2006		2005
Income
Interest income	$	1,220	$	2,556
Other income		-		4,826
		1,220		7,382
Share of loss from Operating  Partnerships(Note D)		(153,393)		(176,584)
Expenses
Professional fees		12,213		16,488
Fund management fee (Note C)		26,550		34,200
Amortization		22,581		22,581
General and administrative expenses		4,183		1,055
		65,527		74,324
NET INCOME (LOSS)	$	(217,700)	$	(243,526)
Net income (loss) allocated to limited partners	$	(215,523)	$	(241,091)
Net income (loss) allocated to general partner	$	(2,177)	$	(2,435)
Net income (loss) per BAC	$	(.09)	$	(.11)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 40

		2006		2005
Income
Interest income	$	1,689	$	1,810
Other income		-		7,240
		1,689		9,050
Share of loss from Operating  Partnerships(Note D)		(158,119)		(204,882)
Expenses
Professional fees		15,904		21,148
Fund management fee (Note C)		47,009		50,001
Amortization		28,433		28,433
General and administrative expenses		4,467		3,699
		95,813		103,281
NET INCOME (LOSS)	$	(252,243)	$	(299,113)
Net income (loss) allocated to limited partners	$	(249,721)	$	(296,122)
Net income (loss) allocated to general partner	$	(2,522)	$	(2,991)
Net income (loss) per BAC	$	(.09)	$	(.11)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 41

		2006		2005
Income
Interest income	$	206	$	625
Other income		-		4,826
		206		5,451
Share of loss from Operating  Partnerships(Note D)		(302,633)		(222,253)
Expenses
Professional fees		24,018		21,919
Fund management fee (Note C)		56,270		56,085
Amortization		33,481		33,481
General and administrative expenses		4,689		3,872
		118,458		115,357
NET INCOME (LOSS)	$	(420,885)	$	(332,159)
Net income (loss) allocated to limited partners	$	(416,676)	$	(328,837)
Net income (loss) allocated to general partner	$	(4,209)	$	(3,322)
Net income (loss) per BAC	$	(.14)	$	(.11)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 42

		2006		2005
Income
Interest income	$	5,818	$	6,992
Other income		-		4,826
		5,818		11,818
Share of loss from Operating  Partnerships(Note D)		(227,642)		(208,661)
Expenses
Professional fees		16,072		21,417
Fund management fee (Note C)		50,561		54,010
Amortization		29,055		29,055
General and administrative expenses		5,107		1,422
		100,795		105,904
NET INCOME (LOSS)	$	(322,619)	$	(302,747)
Net income (loss) allocated to limited partners	$	(319,393)	$	(299,720)
Net income (loss) allocated to general partner	$	(3,226)	$	(3,027)
Net income (loss) per BAC	$	(.12)	$	(.11)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 43

		2006		2005
Income
Interest income	$	3,715	$	1,434
Other income		-		-
		3,715		1,434
Share of loss from Operating  Partnerships(Note D)		(265,868)		(320,884)
Expenses
Professional fees		18,465		25,105
Fund management fee (Note C)		70,445		75,512
Amortization		41,717		41,219
General and administrative expenses		5,363		5,955
		135,990		147,791
NET INCOME (LOSS)	$	(398,143)	$	(467,241)
Net income (loss) allocated to limited partners	$	(394,162)	$	(462,569)
Net income (loss) allocated to general partner	$	(3,981)	$	(4,672)
Net income (loss) per BAC	$	(.11)	$	(.13)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 44

		2006		2005
Income
Interest income	$	13,944	$	47,557
Other income		-		-
		13,944		47,557
Share of loss from Operating  Partnerships(Note D)		(301,893)		(162,961)
Expenses
Professional fees		13,363		16,571
Fund management fee (Note C)		71,175		53,285
Amortization		25,517		25,414
General and administrative expenses		5,228		21,162
		115,283		116,432
NET INCOME (LOSS)	$	(403,232)	$	(231,836)
Net income (loss) allocated to limited partners	$	(399,200)	$	(229,518)
Net income (loss) allocated to general partner	$	(4,032)	$	(2,318)
Net income (loss) per BAC	$	(.15)	$	(.08)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 45

		2006		2005
Income
Interest income	$	28,505	$	51,270
Other income		-		-
		28,505		51,270
Share of loss from Operating  Partnerships(Note D)		(359,012)		(252,481)
Expenses
Professional fees		22,904		27,200
Fund management fee (Note C)		89,465		81,220
Amortization		36,221		34,315
General and administrative expenses		6,107		20,361
		154,697		163,096
NET INCOME (LOSS)	$	(485,204)	$	(364,307)
Net income (loss) allocated to limited partners	$	(480,352)	$	(360,664)
Net income (loss) allocated to general partner	$	(4,852)	$	(3,643)
Net income (loss) per BAC	$	(.12)	$	(.09)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

Series 46

		2006		2005
Income
Interest income	$	33,871	$	59,334
Other income		-		-
		33,871		59,334
Share of loss from Operating  Partnerships(Note D)		(126,922)		(23,848)
Expenses
Professional fees		12,273		16,294
Fund management fee (Note C)		58,035		50,922
Amortization		25,973		26,065
General and administrative expenses		5,556		16,097
		101,837		109,378
NET INCOME (LOSS)	$	(194,888)	$	(73,892)
Net income (loss) allocated to limited partners	$	(192,939)	$	(73,153)
Net income (loss) allocated to general partner	$	(1,949)	$	(739)
Net income (loss) per BAC	$	(.06)	$	(.02)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

		2006		2005
Income
Interest income	$	257,975	$	338,648
Other income		20,388		102,701
		278,363		441,349
Share of loss from Operating  Partnerships(Note D)		(11,731,545)		(11,458,140)
Expenses
Professional fees		514,369		647,251
Fund management fee (Note C)		3,208,270		3,187,881
Amortization		804,368		799,110
General and administrative expenses		157,330		264,591
		4,684,337		4,898,833
NET INCOME (LOSS)	$	(16,137,519)	$	(15,915,624)
Net income (loss) allocated to limited partners	$	(15,976,145)	$	(15,756,468)
Net income (loss) allocated to general partner	$	(161,374)	$	(159,156)
Net income (loss) per BAC	$	(.19)	$	(.19)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 20

		2006		2005
Income
Interest income	$	4,318	$	28,184
Other income		2,780		9,653
		7,098		37,837
Share of income (loss) from Operating  Partnerships(Note D)		(344,645)		217,819
Expenses
Professional fees		24,112		30,697
Fund management fee (Note C)		130,080		136,587
Amortization		1,786		1,786
General and administrative expenses		6,871		12,922
		162,849		181,992
NET INCOME (LOSS)	$	(500,396)	$	73,664
Net income (loss) allocated to limited partners	$	(495,392)	$	72,927
Net income (loss) allocated to general partner	$	(5,004)	$	737
Net income (loss) per BAC	$	(.13)	$	.02

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 21

		2006		2005
Income
Interest income	$	241	$	169
Other income		4,297		-
		4,538		169
Share of loss from Operating  Partnerships(Note D)		(106,279)		(147,508)
Expenses
Professional fees		33,216		26,594
Fund management fee (Note C)		105,154		109,382
Amortization		977		977
General and administrative expenses		4,227		4,131
		143,574		141,084
NET INCOME (LOSS)	$	(245,315)	$	(288,423)
Net income (loss) allocated to limited partners	$	(242,862)	$	(285,539)
Net income (loss) allocated to general partner	$	(2,453)	$	(2,884)
Net income (loss) per BAC	$	(.13)	$	(.15)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 22

		2006		2005
Income
Interest income	$	880	$	514
Other income		7,728		5,683
		8,608		6,197
Share of loss from Operating  Partnerships(Note D)		(84,685)		(472,914)
Expenses
Professional fees		21,756		28,176
Fund management fee (Note C)		118,282		111,182
Amortization		3,070		3,070
General and administrative expenses		4,859		4,904
		147,967		147,332
NET INCOME (LOSS)	$	(224,044)	$	(614,049)
Net income (loss) allocated to limited partners	$	(221,804)	$	(607,909)
Net income (loss) allocated to general partner	$	(2,240)	$	(6,140)
Net income (loss) per BAC	$	(.09)	$	(.24)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 23

		2006		2005
Income
Interest income	$	313	$	235
Other income		801		4,826
		1,114		5,061
Share of loss from Operating  Partnerships(Note D)		(395,282)		(752,108)
Expenses
Professional fees		19,602		25,645
Fund management fee (Note C)		116,818		112,883
Amortization		4,565		4,565
General and administrative expenses		5,340		5,660
		146,325		148,753
NET INCOME (LOSS)	$	(540,493)	$	(895,800)
Net income (loss) allocated to limited partners	$	(535,088)	$	(886,842)
Net income (loss) allocated to general partner	$	(5,405)	$	(8,958)
Net income (loss) per BAC	$	(.16)	$	(.27)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 24

		2006		2005
Income
Interest income	$	699	$	413
Other income		-		2,798
		699		3,211
Share of loss from Operating  Partnerships(Note D)		(165,494)		(160,761)
Expenses
Professional fees		20,380		25,034
Fund management fee (Note C)		107,817		100,069
Amortization		5,102		5,102
General and administrative expenses		4,440		4,346
		137,739		134,551
NET INCOME (LOSS)	$	(302,534)	$	(292,101)
Net income (loss) allocated to limited partners	$	(299,509)	$	(289,180)
Net income (loss) allocated to general partner	$	(3,025)	$	(2,921)
Net income (loss) per BAC	$	(.14)	$	(.13)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 25

		2006		2005
Income
Interest income	$	1,148	$	1,127
Other income		-		-
		1,148		1,127
Share of loss from Operating  Partnerships(Note D)		(257,957)		(176,415)
Expenses
Professional fees		19,600		34,049
Fund management fee (Note C)		129,138		128,239
Amortization		7,609		7,609
General and administrative expenses		5,657		5,718
		162,004		175,615
NET INCOME (LOSS)	$	(418,813)	$	(350,903)
Net income (loss) allocated to limited partners	$	(414,625)	$	(347,394)
Net income (loss) allocated to general partner	$	(4,188)	$	(3,509)
Net income (loss) per BAC	$	(.14)	$	(.11)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 26

		2006		2005
Income
Interest income	$	3,192	$	719
Other income		4,146		14,586
		7,338		15,305
Share of loss from Operating  Partnerships(Note D)		(616,002)		(408,358)
Expenses
Professional fees		30,869		38,089
Fund management fee (Note C)		191,067		195,808
Amortization		8,452		8,452
General and administrative expenses		5,940		6,074
		236,328		248,423
NET INCOME (LOSS)	$	(844,992)	$	(641,476)
Net income (loss) allocated to limited partners	$	(836,542)	$	(635,061)
Net income (loss) allocated to general partner	$	(8,450)	$	(6,415)
Net income (loss) per BAC	$	(.21)	$	(.16)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 27

		2006		2005
Income
Interest income	$	431	$	253
Other income		-		2,413
		431		2,666
Share of loss from Operating  Partnerships(Note D)		(492,427)		(359,785)
Expenses
Professional fees		15,697		20,851
Fund management fee (Note C)		136,462		142,253
Amortization		7,827		7,827
General and administrative expenses		4,465		4,443
		164,451		175,374
NET INCOME (LOSS)	$	(656,447)	$	(532,493)
Net income (loss) allocated to limited partners	$	(649,883)	$	(527,168)
Net income (loss) allocated to generalpartner	$	(6,564)	$	(5,325)
Net income (loss) per BAC	$	(.26)	$	(.21)

The accompanying notes are an integral part of this statement

Boston Capital Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 28

		2006		2005
Income
Interest income	$	1,830	$	3,612
Other income		-		14,479
		1,830		18,091
Share of loss from Operating  Partnerships(Note D)		(544,892)		(767,620)
Expenses
Professional fees		20,815		28,419
Fund management fee (Note C)		120,053		126,195
Amortization		1,650		1,650
General and administrative expenses		5,327		5,640
		147,845		161,904
NET INCOME (LOSS)	$	(690,907)	$	(911,433)
Net income (loss) allocated to limited partners	$	(683,998)	$	(902,319)
Net income (loss) allocated to general partner	$	(6,909)	$	(9,114)
Net income (loss) per BAC	$	(.17)	$	(.23)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 29

		2006		2005
Income
Interest income	$	6,329	$	3,438
Other income		-		7,240
		6,329		10,678
Share of loss from Operating  Partnerships(Note D)		(556,083)		(806,117)
Expenses
Professional fees		19,340		26,373
Fund management fee (Note C)		162,702		157,037
Amortization		1,656		1,656
General and administrative expenses		5,864		7,443
		189,562		192,509
NET INCOME (LOSS)	$	(739,316)	$	(987,948)
Net income (loss) allocated to limited partners	$	(731,923)	$	(978,069)
Net income (loss) allocated to general partner	$	(7,393)	$	(9,879)
Net income (loss) per BAC	$	(.18)	$	(.25)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 30

		2006		2005
Income
Interest income	$	4,105	$	574
Other income		-		-
		4,105		574
Share of loss from Operating  Partnerships(Note D)		(413,323)		(532,189)
Expenses
Professional fees		18,836		31,794
Fund management fee (Note C)		99,210		105,122
Amortization		10,619		10,619
General and administrative expenses		4,622		4,431
		133,287		151,966
NET INCOME (LOSS)	$	(542,505)	$	(683,581)
Net income (loss) allocated to limited partners	$	(537,080)	$	(676,745)
Net income (loss) allocated to general partner	$	(5,425)	$	(6,836)
Net income (loss) per BAC	$	(.20)	$	(.26)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 31

		2006		2005
Income
Interest income	$	393	$	249
Other income		-		-
		393		249
Share of loss from Operating  Partnerships(Note D)		(780,106)		(822,810)
Expenses
Professional fees		20,338		32,316
Fund management fee (Note C)		166,589		192,811
Amortization		-		-
General and administrative expenses		5,481		5,696
		192,408		230,823
NET INCOME (LOSS)	$	(972,121)	$	(1,053,384)
Net income (loss) allocated to limited partners	$	(962,400)	$	(1,042,850)
Net income (loss) allocated to general partner	$	(9,721)	$	(10,534)
Net income (loss) per BAC	$	(.22)	$	(.24)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 32

		2006		2005
Income
Interest income	$	1,354	$	2,851
Other income		-		7,240
		1,354		10,091
Share of loss from Operating  Partnerships(Note D)		(745,026)		(762,741)
Expenses
Professional fees		24,439		27,733
Fund management fee (Note C)		148,770		160,769
Amortization		18,362		18,362
General and administrative expenses		5,635		6,910
		197,206		213,774
NET INCOME (LOSS)	$	(940,878)	$	(966,424)
Net income (loss) allocated to limited partners	$	(931,469)	$	(956,760)
Net income (loss) allocated to general partner	$	(9,409)	$	(9,664)
Net income (loss) per BAC	$	(.20)	$	(.20)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 33

		2006		2005
Income
Interest income	$	20,861	$	365
Other income		-		2,413
		20,861		2,778
Share of loss from Operating  Partnerships(Note D)		(455,381)		(320,915)
Expenses
Professional fees		10,980		13,841
Fund management fee (Note C)		69,562		86,982
Amortization		13,638		13,638
General and administrative expenses		4,488		5,098
		98,668		119,559
NET INCOME (LOSS)	$	(533,188)	$	(437,696)
Net income (loss) allocated to limited partners	$	(527,856)	$	(433,319)
Net income (loss) allocated to general partner	$	(5,332)	$	(4,377)
Net income (loss) per BAC	$	(.20)	$	(.16)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 34

		2006		2005
Income
Interest income	$	497	$	354
Other income		-		-
		497		354
Share of loss from Operating  Partnerships(Note D)		(510,933)		(849,343)
Expenses
Professional fees		15,304		20,650
Fund management fee (Note C)		146,598		146,597
Amortization		21,969		21,969
General and administrative expenses		4,849		5,879
		188,720		195,095
NET INCOME (LOSS)	$	(699,156)	$	(1,044,084)
Net income (loss) allocated to limited partners	$	(692,164)	$	(1,033,643)
Net income (loss) allocated to general partner	$	(6,992)	$	(10,441)
Net income (loss) per BAC	$	(.20)	$	(.29)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 35

		2006		2005
Income
Interest income	$	2,010	$	1,618
Other income		-		-
		2,010		1,618
Share of loss from Operating  Partnerships(Note D)		(468,919)		(460,292)
Expenses
Professional fees		8,198		11,686
Fund management fee (Note C)		114,180		101,885
Amortization		64,617		64,617
General and administrative expenses		4,840		6,523
		191,835		184,711
NET INCOME (LOSS)	$	(658,744)	$	(643,385)
Net income (loss) allocated to limited partners	$	(652,157)	$	(636,951)
Net income (loss) allocated to general partner	$	(6,587)	$	(6,434)
Net income (loss) per BAC	$	(.20)	$	(.19)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 36

		2006		2005
Income
Interest income	$	278	$	160
Other income		-		4,826
		278		4,986
Share of loss from Operating  Partnerships(Note D)		(215,049)		(261,835)
Expenses
Professional fees		9,902		13,608
Fund management fee (Note C)		63,103		68,537
Amortization		44,231		44,231
General and administrative expenses		4,063		6,428
		121,299		132,804
NET INCOME (LOSS)	$	(336,070)	$	(389,653)
Net income (loss) allocated to limited partners	$	(332,709)	$	(385,756)
Net income (loss) allocated to general partner	$	(3,361)	$	(3,897)
Net income (loss) per BAC	$	(.16)	$	(.18)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 37

		2006		2005
Income
Interest income	$	40,266	$	775
Other income		-		-
		40,266		775
Share of loss from Operating  Partnerships(Note D)		(401,693)		(306,962)
Expenses
Professional fees		10,481		13,076
Fund management fee (Note C)		91,932		91,914
Amortization		47,411		47,411
General and administrative expenses		5,459		5,028
		155,283		157,429
NET INCOME (LOSS)	$	(516,710)	$	(463,616)
Net income (loss) allocated to limited partners	$	(511,543)	$	(458,980)
Net income (loss) allocated to general partner	$	(5,167)	$	(4,636)
Net income (loss) per BAC	$	(.20)	$	(.18)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 38

		2006		2005
Income
Interest income	$	2,064	$	380
Other income		-		4,826
		2,064		5,206
Share of loss from Operating  Partnerships(Note D)		(183,413)		(231,903)
Expenses
Professional fees		11,086		15,264
Fund management fee (Note C)		63,650		79,625
Amortization		49,456		49,456
General and administrative expenses		5,569		5,919
		129,761		150,264
NET INCOME (LOSS)	$	(311,110)	$	(376,961)
Net income (loss) allocated to limited partners	$	(307,999)	$	(373,191)
Net income (loss) allocated to general partner	$	(3,111)	$	(3,770)
Net income (loss) per BAC	$	(.12)	$	(.15)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 39

		2006		2005
Income
Interest income	$	1,562	$	2,751
Other income		-		4,826
		1,562		7,577
Share of loss from Operating  Partnerships(Note D)		(338,965)		(379,799)
Expenses
Professional fees		14,312		17,103
Fund management fee (Note C)		60,750		64,029
Amortization		45,162		45,162
General and administrative expenses		5,206		2,437
		125,430		128,731
NET INCOME (LOSS)	$	(462,833)	$	(500,953)
Net income (loss) allocated to limited partners	$	(458,205)	$	(495,943)
Net income (loss) allocated to general partner	$	(4,628)	$	(5,010)
Net income (loss) per BAC	$	(.20)	$	(.22)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 40

		2006		2005
Income
Interest income	$	3,012	$	1,850
Other income		-		7,240
		3,012		9,090
Share of loss from Operating  Partnerships(Note D)		(347,917)		(390,615)
Expenses
Professional fees		18,558		21,889
Fund management fee (Note C)		82,762		78,163
Amortization		56,864		56,864
General and administrative expenses		5,701		5,489
		163,885		162,405
NET INCOME (LOSS)	$	(508,790)	$	(543,930)
Net income (loss) allocated to limited partners	$	(503,702)	$	(538,491)
Net income (loss) allocated to general partner	$	(5,088)	$	(5,439)
Net income (loss) per BAC	$	(.19)	$	(.20)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 41

		2006		2005
Income
Interest income	$	268	$	804
Other income		636		4,826
		904		5,630
Share of loss from Operating  Partnerships(Note D)		(639,646)		(508,657)
Expenses
Professional fees		26,196		22,565
Fund management fee (Note C)		108,207		109,353
Amortization		66,963		66,963
General and administrative expenses		6,281		5,810
		207,647		204,691
NET INCOME (LOSS)	$	(846,389)	$	(707,718)
Net income (loss) allocated to limited partners	$	(837,925)	$	(700,641)
Net income (loss) allocated to general partner	$	(8,464)	$	(7,077)
Net income (loss) per BAC	$	(.29)	$	(.24)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 42

		2006		2005
Income
Interest income	$	11,580	$	9,052
Other income		-		4,826
		11,580		13,878
Share of loss from Operating  Partnerships(Note D)		(511,951)		(378,331)
Expenses
Professional fees		28,724		22,056
Fund management fee (Note C)		112,049		93,558
Amortization		58,111		58,111
General and administrative expenses		7,459		3,818
		206,343		177,543
NET INCOME (LOSS)	$	(706,714)	$	(541,996)
Net income (loss) allocated to limited partners	$	(699,647)	$	(536,576)
Net income (loss) allocated to general partner	$	(7,067)	$	(5,420)
Net income (loss) per BAC	$	(.26)	$	(.20)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 43

		2006		2005
Income
Interest income	$	11,536	$	5,909
Other income		-		-
		11,536		5,909
Share of loss from Operating  Partnerships(Note D)		(573,716)		(680,529)
Expenses
Professional fees		20,936		26,412
Fund management fee (Note C)		144,975		134,113
Amortization		83,435		82,439
General and administrative expenses		7,184		11,298
		256,530		254,262
NET INCOME (LOSS)	$	(818,710)	$	(928,882)
Net income (loss) allocated to limited partners	$	(810,523)	$	(919,593)
Net income (loss) allocated to general partner	$	(8,187)	$	(9,289)
Net income (loss) per BAC	$	(.22)	$	(.25)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 44

		2006		2005
Income
Interest income	$	25,240	$	86,032
Other income		-		-
		25,240		86,032
Share of loss from Operating  Partnerships(Note D)		(590,127)		(343,798)
Expenses
Professional fees		13,848		22,925
Fund management fee (Note C)		124,151		102,808
Amortization		56,508		56,302
General and administrative expenses		7,163		44,813
		201,670		226,848
NET INCOME (LOSS)	$	(766,557)	$	(484,614)
Net income (loss) allocated to limited partners	$	(758,891)	$	(479,768)
Net income (loss) allocated to general partner	$	(7,666)	$	(4,846)
Net income (loss) per BAC	$	(.28)	$	(.18)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 45

		2006		2005
Income
Interest income	$	48,819	$	86,033
Other income		-		-
		48,819		86,033
Share of loss from Operating  Partnerships(Note D)		(717,622)		(326,468)
Expenses
Professional fees		24,085		31,173
Fund management fee (Note C)		175,139		156,427
Amortization		72,442		68,383
General and administrative expenses		10,744		42,835
		282,410		298,818
NET INCOME (LOSS)	$	(951,213)	$	(539,253)
Net income (loss) allocated to limited partners	$	(941,701)	$	(533,860)
Net income (loss) allocated to general partner	$	(9,512)	$	(5,393)
Net income (loss) per BAC	$	(.23)	$	(.13)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)

Series 46

		2006		2005
Income
Interest income	$	64,749	$	100,227
Other income		-		-
		64,749		100,227
Share of loss from Operating  Partnerships(Note D)		(274,012)		(67,186)
Expenses
Professional fees		12,759		19,233
Fund management fee (Note C)		119,070		95,553
Amortization		51,886		51,889
General and administrative expenses		9,596		34,898
		193,311		201,573
NET INCOME (LOSS)	$	(402,574)	$	(168,532)
Net income (loss) allocated to limited partners	$	(398,548)	$	(166,847)
Net income (loss) allocated to general partner	$	(4,026)	$	(1,685)
Net income (loss) per BAC	$	(.13)	$	(.06)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Six Months Ended September 30, 2006
(Unaudited)

		Limited Partners		General Partner		Total
Partners' capital (deficit)   April 1, 2006	$	326,207,079	$	(3,943,585)	$	322,263,494
Distribution		-		-		-
Net income (loss)		(15,976,145)		(161,374)		(16,137,519)
Partners' capital (deficit),   September 30, 2006	$	310,230,934	$	(4,104,959)	$	306,125,975

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)


Six Months Ended September 30, 2006
(Unaudited)

		Limited Partners		General Partner		Total
Series 20
Partners' capital (deficit)   April 1, 2006	$	(695,785)	$	(318,393)	$	(1,014,178)
Distribution		-		-		-
Net income (loss)		(495,392)		(5,004)		(500,396)
Partners' capital (deficit),   September 30, 2006	$	(1,191,177)	$	(323,397)	$	(1,514,574)

		Limited Partners		General Partner		Total
Series 21
Partners' capital (deficit)   April 1, 2006	$	(225,720)	$	(165,868)	$	(391,588)
Distribution		-		-		-
Net income (loss)		(242,862)		(2,453)		(245,315)
Partners' capital (deficit),   September 30, 2006	$	(468,582)	$	(168,321)	$	(636,903)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Six Months Ended September 30, 2006
(Unaudited)

		Limited Partners		General Partner		Total
Series 22
Partners' capital (deficit)   April 1, 2006	$	(643,756)	$	(227,797)	$	(871,553)
Distribution		-		-		-
Net income (loss)		(221,804)		(2,240)		(224,044)
Partners' capital (deficit),   September 30, 2006	$	(865,560)	$	(230,037)	$	(1,095,597)

		Limited Partners		General Partner		Total
Series 23
Partners' capital (deficit)   April 1, 2006	$	1,404,187	$	(273,540)	$	1,130,647
Distribution		-		-		-
Net income (loss)		(535,088)		(5,405)		(540,493)
Partners' capital (deficit),   September 30, 2006	$	869,099	$	(278,945)	$	590,154

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Six Months Ended September 30, 2006
(Unaudited)

		Limited Partners		General Partner		Total
Series 24
Partners' capital (deficit)   April 1, 2006	$	545,191	$	(181,663)	$	363,528
Distribution		-		-		-
Net income (loss)		(299,509)		(3,025)		(302,534)
Partners' capital (deficit),   September 30, 2006	$	245,682	$	(184,688)	$	60,994

		Limited Partners		General Partner		Total
Series 25
Partners' capital (deficit)   April 1, 2006	$	6,348,055	$	(195,923)	$	6,152,132
Distribution		-		-		-
Net income (loss)		(414,625)		(4,188)		(418,813)
Partners' capital (deficit),   September 30, 2006	$	5,933,430	$	(200,111)	$	5,733,319

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PRTNERS' CAPITAL (DEFICIT)

Six Months Ended September 30, 2006
(Unaudited)

		Limited Partners		General Partner		Total
Series 26
Partners' capital (deficit)   April 1, 2006	$	8,714,397	$	(255,666)	$	8,458,731
Distribution		-		-		-
Net income (loss)		(836,542)		(8,450)		(844,992)
Partners' capital (deficit),   September 30, 2006	$	7,877,855	$	(264,116	$	7,613,739

		Limited Partners		General Partner		Total
Series 27
Partners' capital (deficit)   April 1, 2006	$	7,952,311	$	(128,206)	$	7,824,105
Distribution		-		-		-
Net income (loss)		(649,883)		(6,564)		(656,447)
Partners' capital (deficit),   September 30, 2006	$	7,302,428	$	(134,770)	$	7,167,658

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Six Months Ended September 30, 2006
(Unaudited)

		Limited Partners		General Partner		Total
Series 28
Partners' capital (deficit)   April 1, 2006	$	14,594,412	$	(199,802)	$	14,394,610
Distribution		-		-		-
Net income (loss)		(683,998)		(6,909)		(690,907)
Partners' capital (deficit),   September 30, 2006	$	13,910,414	$	(206,711)	$	13,703,703

		Limited Partners		General Partner		Total
Series 29
Partners' capital (deficit)   April 1, 2006	$	9,420,408	$	(246,912)	$	9,173,496
Distribution		-		-		-
Net income (loss)		(731,923)		(7,393)		(739,316)
Partners' capital (deficit),   September 30, 2006	$	8,688,485	$	(254,305)	$	8,434,180

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Six Months Ended September 30, 2006
(Unaudited)

		Limited Partners		General Partner		Total
Series 30
Partners' capital (deficit)   April 1, 2006	$	8,612,049	$	(142,360)	$	8,469,689
Distribution		-		-		-
Net income (loss)		(537,080)		(5,425)		(542,505)
Partners' capital (deficit),   September 30, 2006	$	8,074,969	$	(147,785)	$	7,927,184

		Limited Partners		General Partner		Total
Series 31
Partners' capital (deficit)   April 1, 2006	$	12,714,068	$	(254,665)	$	12,459,403
Distribution		-		-		-
Net income (loss)		(962,400)		(9,721)		(972,121)
Partners' capital (deficit),   September 30, 2006	$	11,751,668	$	(264,386)	$	11,487,282

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Six Months Ended September 30, 2006
(Unaudited)

		Limited Partners		General Partner		Total
Series 32
Partners' capital (deficit)   April 1, 2006	$	17,381,263	$	(234,897)	$	17,146,366
Distribution		-		-		-
Net income (loss)		(931,469)		(9,409)		(940,878)
Partners' capital (deficit),   September 30, 2006	$	16,449,794	$	(244,306)	$	16,205,488

		Limited Partners		General Partner		Total
Series 33
Partners' capital (deficit)   April 1, 2006	$	10,337,289	$	(123,644)	$	10,213,645
Distribution		-		-		-
Net income (loss)		(527,856)		(5,332)		(533,188)
Partners' capital (deficit),   September 30, 2006	$	9,809,433	$	(128,976)	$	9,680,457

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Six Months Ended September 30, 2006
(Unaudited)

		Limited Partners		General Partner		Total
Series 34
Partners' capital (deficit)   April 1, 2006	$	13,214,342	$	(169,947)	$	13,044,395
Distribution		-		-		-
Net income (loss)		(692,164)		(6,992)		(699,156)
Partners' capital (deficit),   September 30, 2006	$	12,522,178	$	(176,939)	$	12,345,239

		Limited Partners		General Partner		Total
Series 35
Partners' capital (deficit)   April 1, 2006	$	16,643,105	$	(116,761)	$	16,526,344
Distribution		-		-		-
Net income (loss)		(652,157)		(6,587)		(658,744)
Partners' capital (deficit),   September 30, 2006	$	15,990,948	$	(123,348)	$	15,867,600

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Six Months Ended September 30, 2006
(Unaudited)

		Limited Partners		General Partner		Total
Series 36
Partners' capital (deficit)   April 1, 2006	$	10,451,081	$	(74,902)	$	10,376,179
Distribution		-		-		-
Net income (loss)		(332,709)		(3,361)		(336,070)
Partners' capital (deficit),   September 30, 2006	$	10,118,372	$	(78,263)	$	10,040,109

		Limited Partners		General Partner		Total
Series 37
Partners' capital (deficit)   April 1, 2006	$	13,558,669	$	(80,784)	$	13,477,885
Distribution		-		-		-
Net income (loss)		(511,543)		(5,167)		(516,710)
Partners' capital (deficit),   September 30, 2006	$	13,047,126	$	(85,951)	$	12,961,175

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Six Months Ended September 30, 2006
(Unaudited)

		Limited Partners		General Partner		Total
Series 38
Partners' capital (deficit)   April 1, 2006	$	14,557,855	$	(73,440)	$	14,484,415
Distribution		-		-		-
		(307,999)		(3,111)		(311,110)
Net income (loss)
Partners' capital (deficit),   September 30, 2006	$	14,249,856	$	(76,551)	$	14,173,305

		Limited Partners		General Partner		Total
Series 39
Partners' capital (deficit)   April 1, 2006	$	13,165,083	$	(65,445)	$	13,099,638
Distribution		-		-		-
Net income (loss)		(458,205)		(4,628)		(462,833)
Partners' capital (deficit),   September 30, 2006	$	12,706,878	$	(70,073)	$	12,636,805

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Six Months Ended September 30, 2006
(Unaudited)

		Limited Partners		General Partner		Total
Series 40
Partners' capital (deficit)   April 1, 2006	$	16,205,779	$	(63,520)	$	16,142,259
Distribution		-		-		-
Net income (loss)		(503,702)		(5,088)		(508,790)
Partners' capital (deficit),   September 30, 2006	$	15,702,077	$	(68,608)	$	15,633,469

		Limited Partners		General Partner		Total
Series 41
Partners' capital (deficit)   April 1, 2006	$	13,929,931	$	(110,980)	$	13,818,951
Distribution		-		-		-
Net income (loss)		(837,925)		(8,464)		(846,389)
Partners' capital (deficit),   September 30, 2006	$	13,092,006	$	(119,444)	$	12,972,562

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Six Months Ended September 30, 2006
(Unaudited)

		Limited Partners		General Partner		Total
Series 42
Partners' capital (deficit)   April 1, 2006	$	18,401,306	$	(57,500)	$	18,343,806
Distribution		-		-		-
Net income (loss)		(699,647)		(7,067)		(706,714)
Partners' capital (deficit),   September 30, 2006	$	17,701,659	$	(64,567)	$	17,637,092

		Limited Partners		General Partner		Total
Series 43
Partners' capital (deficit)   April 1, 2006	$	23,972,939	$	(82,619)	$	23,890,320
Distribution		-		-		-
Net income (loss)		(810,523)		(8,187)		(818,710)
Partners' capital (deficit),   September 30, 2006	$	23,162,416	$	(90,806)	$	23,071,610

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Six Months Ended September 30, 2006
(Unaudited)

		Limited Partners		General Partner		Total
Series 44
Partners' capital (deficit)   April 1, 2006	$	19,857,186	$	(39,269)	$	19,817,917
Distribution		-		-		-
Net income (loss)		(758,891)		(7,666)		(766,557)
Partners' capital (deficit),   September 30, 2006	$	19,098,295	$	(46,935)	$	19,051,360

		Limited Partners		General Partner		Total
Series 45
Partners' capital (deficit)   April 1, 2006	$	31,229,072	$	(41,789)	$	31,187,283
Distribution		-		-		-
Net income (loss)		(941,701)		(9,512)		(951,213)
Partners' capital (deficit),   September 30, 2006	$	30,287,371	$	(51,301)	$	30,236,070

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Six Months Ended September 30, 2006
(Unaudited)

		Limited Partners		General Partner		Total
Series 46
Partners' capital (deficit)   April 1, 2006	$	24,562,362	$	(17,293)	$	24,545,069
Distribution		-		-		-
Net income (loss)		(398,548)		(4,026)		(402,574)
Partners' capital (deficit),   September 30, 2006	$	24,163,814	$	(21,319)	$	24,142,495

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(16,137,519)	$	(15,915,624)
Adjustments
Amortization		804,368		799,110
Distributions from Operating    Partnerships		177,675		316,967
Share of Loss from Operating    Partnerships		11,731,545		11,458,140
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		(21,406)		- -
Decrease (Increase) in accounts    receivable		(16,931)		(2,222,679)
(Decrease) Increase in accounts    payable affiliates		2,286,910		3,388,950
Net cash (used in) provided by  operating activities		(1,175,358)		(2,175,136)
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		(15,515)		(63,596)
Capital contributions paid to     Operating Partnerships		(2,567,911)		(6,727,079)
Proceeds from sale of operating Limited partnerships:		7,016		401,525
Advances to Operating Partnerships		578,143		44,100
Investments		2,556,017		4,918,455
Net cash (used in) provided by investing activities		557,750		(1,426,595)
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		(2,370,350)
Net cash (used in) provided by financing activities		- -		(2,370,350)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(617,608)		(5,972,081)
Cash and cash equivalents, beginning		11,837,413		18,346,447
Cash and cash equivalents, ending	$	11,219,805	$	12,374,366
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	168,463	$	111,758

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 20

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(500,396)	$	73,664
Adjustments
Amortization		1,786		1,786
Distributions from Operating    Partnerships		16,068		9,659
Share of Loss from Operating    Partnerships		344,645		(217,819)
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		- -		-
Decrease (Increase) in accounts    receivable		16,522		(126,143)
(Decrease) Increase in accounts    payable affiliates		(422,476)		153,945
Net cash (used in) provided by  operating activities		(543,851)		(104,908)
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		- -		- -
Capital contributions paid to     Operating Partnerships		- -		- -
Proceeds from sale of operating Limited partnerships:		7,016		401,525
Advances to Operating Partnerships		-		-
Investments		-		(463,027)
Net cash (used in) provided by investing activities		7,016		(61,502)
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		(2,231,352)
Net cash (used in) provided by financing activities		- -		(2,231,352)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(536,835)		(2,397,762)
Cash and cash equivalents, beginning		802,957		2,435,923
Cash and cash equivalents, ending	$	266,122	$	38,161
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	- -	$	- -

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 21

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(245,315)	$	(288,423)
Adjustments
Amortization		977		977
Distributions from Operating    Partnerships		- -		- -
Share of Loss from Operating    Partnerships		106,279		147,508
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		- -		- -
Decrease (Increase) in accounts    receivable		- -		- -
(Decrease) Increase in accounts    payable affiliates		112,920		112,920
Net cash (used in) provided by  operating activities		(25,139)		(27,018)
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		- -		- -
Capital contributions paid to     Operating Partnerships		- -		- -
Proceeds from sale of operating Limited partnerships:		- -		- -
Advances to Operating Partnerships		-		-
Investments		-		-
Net cash (used in) provided by investing activities		- -		- -
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		-
Net cash (used in) provided by financing activities		- -		- -
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(25,139)		(27,018)
Cash and cash equivalents, beginning		60,403		100,468
Cash and cash equivalents, ending	$	35,264	$	73,450
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	- -	$	- -

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 22

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(224,044)	$	(614,049)
Adjustments
Amortization		3,070		3,070
Distributions from Operating    Partnerships		- -		1,970
Share of Loss from Operating    Partnerships		84,685		472,914
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		- -		- -
Decrease (Increase) in accounts    receivable		- -		- -
(Decrease) Increase in accounts    payable affiliates		127,295		127,295
Net cash (used in) provided by  operating activities		(8,994)		(8,800)
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		- -		- -
Capital contributions paid to     Operating Partnerships		(1,500)		(1,500)
Proceeds from sale of operating Limited partnerships:		- -		- -
Advances to Operating Partnerships		-		-
Investments		-		-
Net cash (used in) provided by investing activities		(1,500)		(1,500)
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		-
Net cash (used in) provided by financing activities		- -		- -
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(10,494)		(10,300)
Cash and cash equivalents, beginning		170,119		272,446
Cash and cash equivalents, ending	$	159,625	$	262,146
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	- -	$	- -

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 23

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(540,493)	$	(895,800)
Adjustments
Amortization		4,565		4,565
Distributions from Operating    Partnerships		- -		- -
Share of Loss from Operating    Partnerships		395,282		752,108
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		- -		- -
Decrease (Increase) in accounts    receivable		- -		- -
(Decrease) Increase in accounts    payable affiliates		120,132		120,133
Net cash (used in) provided by  operating activities		(20,514)		(18,994)
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		- -		- -
Capital contributions paid to     Operating Partnerships		- -		- -
Proceeds from sale of operating Limited partnerships:		- -		- -
Advances to Operating Partnerships		-		-
Investments		-		-
Net cash (used in) provided by investing activities		- -		- -
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		-
Net cash (used in) provided by financing activities		- -		- -
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(20,514)		(18,994)
Cash and cash equivalents, beginning		84,479		126,832
Cash and cash equivalents, ending	$	63,965	$	107,838
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	- -	$	- -

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 24

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(302,534)	$	(292,101)
Adjustments
Amortization		5,102		5,102
Distributions from Operating    Partnerships		9,739		1,224
Share of Loss from Operating    Partnerships		165,494		160,761
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		- -		- -
Decrease (Increase) in accounts    receivable		- -		- -
(Decrease) Increase in accounts    payable affiliates		113,868		112,920
Net cash (used in) provided by  operating activities		(8,331)		(12,094)
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		- -		- -
Capital contributions paid to     Operating Partnerships		- -		- -
Proceeds from sale of operating Limited partnerships:		- -		- -
Advances to Operating Partnerships		-		-
Investments		-		-
Net cash (used in) provided by investing activities		- -		- -
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		-
Net cash (used in) provided by financing activities		- -		- -
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(8,331)		(12,094)
Cash and cash equivalents, beginning		172,640		220,367
Cash and cash equivalents, ending	$	164,309	$	208,273
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	- -	$	- -

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 25

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(418,813)	$	(350,903)
Adjustments
Amortization		7,609		7,609
Distributions from Operating    Partnerships		11,525		9,535
Share of Loss from Operating    Partnerships		257,957		176,415
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		- -		- -
Decrease (Increase) in accounts    receivable		- -		(876)
(Decrease) Increase in accounts    payable affiliates		121,338		136,339
Net cash (used in) provided by  operating activities		(20,384)		(21,881)
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		- -		- -
Capital contributions paid to     Operating Partnerships		- -		- -
Proceeds from sale of operating Limited partnerships:		- -		- -
Advances to Operating Partnerships		-		-
Investments		-		(197,748)
Net cash (used in) provided by investing activities		- -		(197,748)
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		-
Net cash (used in) provided by financing activities		- -		- -
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(20,384)		(219,629)
Cash and cash equivalents, beginning		263,159		378,135
Cash and cash equivalents, ending	$	242,775	$	158,506
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	- -	$	- -

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,

(Unaudited)

Series 26

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(844,992)	$	(641,476)
Adjustments
Amortization		8,452		8,452
Distributions from Operating    Partnerships		71,177		38,032
Share of Loss from Operating    Partnerships		616,002		408,358
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		- -		- -
Decrease (Increase) in accounts    receivable		- -		- -
(Decrease) Increase in accounts    payable affiliates		167,380		217,379
Net cash (used in) provided by  operating activities		18,019		30,745
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		- -		- -
Capital contributions paid to     Operating Partnerships		- -		- -
Proceeds from sale of operating Limited partnerships:		- -		- -
Advances to Operating Partnerships		-		-
Investments		-		-
Net cash (used in) provided by investing activities		- -		- -
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		-
Net cash (used in) provided by financing activities		- -		- -
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		18,019		30,745
Cash and cash equivalents, beginning		285,372		353,640
Cash and cash equivalents, ending	$	303,391	$	384,385
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	- -	$	- -

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 27

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(656,447)	$	(532,493)
Adjustments
Amortization		7,827		7,827
Distributions from Operating    Partnerships		118		7,175
Share of Loss from Operating    Partnerships		492,427		359,785
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		- -		- -
Decrease (Increase) in accounts    receivable		- -		- -
(Decrease) Increase in accounts    payable affiliates		157,602		157,603
Net cash (used in) provided by  operating activities		1,527		(103)
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		- -		- -
Capital contributions paid to     Operating Partnerships		- -		- -
Proceeds from sale of operating Limited partnerships:		- -		- -
Advances to Operating Partnerships		-		-
Investments		-		-
Net cash (used in) provided by investing activities		- -		- -
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		-
Net cash (used in) provided by financing activities		- -		- -
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		1,527		(103)
Cash and cash equivalents, beginning		116,714		127,380
Cash and cash equivalents, ending	$	118,241	$	127,277
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	- -	$	- -

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 28

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(690,907)	$	(911,433)
Adjustments
Amortization		1,650		1,650
Distributions from Operating    Partnerships		(12,920)		169,994
Share of Loss from Operating    Partnerships		544,892		767,620
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		- -		- -
Decrease (Increase) in accounts    receivable		- -		167,058
(Decrease) Increase in accounts    payable affiliates		92,058		- -
Net cash (used in) provided by  operating activities		(65,227)		194,889
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		- -		- -
Capital contributions paid to     Operating Partnerships		- -		- -
Proceeds from sale of operating Limited partnerships:		- -		- -
Advances to Operating Partnerships		-		-
Investments		-		(475,434)
Net cash (used in) provided by investing activities		- -		(475,434)
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		-
Net cash (used in) provided by financing activities		- -		- -
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(65,227)		(280,545)
Cash and cash equivalents, beginning		433,154		428,256
Cash and cash equivalents, ending	$	367,927	$	147,711
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	- -	$	- -

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,

(Unaudited)

Series 29

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(739,316)	$	(987,948)
Adjustments
Amortization		1,656		1,656
Distributions from Operating    Partnerships		1,200		- -
Share of Loss from Operating    Partnerships		556,083		806,117
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		- -		- -
Decrease (Increase) in accounts    receivable		- -		197
(Decrease) Increase in accounts    payable affiliates		128,990		168,991
Net cash (used in) provided by  operating activities		(51,387)		(10,987)
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		- -		- -
Capital contributions paid to     Operating Partnerships		- -		- -
Proceeds from sale of operating Limited partnerships:		- -		- -
Advances to Operating Partnerships				12,384
Investments		134,706		-
Net cash (used in) provided by investing activities		134,706		12,384
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		-
Net cash (used in) provided by financing activities		- -		- -
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		83,319		1,397
Cash and cash equivalents, beginning		134,976		253,902
Cash and cash equivalents, ending	$	218,295	$	255,299
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	- -	$	- -

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 30

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(542,505)	$	(683,581)
Adjustments
Amortization		10,619		10,619
Distributions from Operating    Partnerships		23,288		12,870
Share of Loss from Operating    Partnerships		413,323		532,189
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		- -		- -
Decrease (Increase) in accounts    receivable		(19,167)		- -
(Decrease) Increase in accounts    payable affiliates		60,460		110,460
Net cash (used in) provided by  operating activities		(53,982)		(17,443)
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		- -		- -
Capital contributions paid to     Operating Partnerships		- -		- -
Proceeds from sale of operating Limited partnerships:		- -		- -
Advances to Operating Partnerships		-		-
Investments		-		-
Net cash (used in) provided by investing activities		- -		- -
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		-
Net cash (used in) provided by financing activities		- -		- -
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(53,982)		(17,443)
Cash and cash equivalents, beginning		412,161		300,371
Cash and cash equivalents, ending	$	358,179	$	282,928
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	- -	$	- -

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 31

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(972,121)	$	(1,053,384)
Adjustments
Amortization		-		-
Distributions from Operating    Partnerships		1,357		3,851
Share of Loss from Operating    Partnerships		780,106		822,810
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		- -		- -
Decrease (Increase) in accounts    receivable		- -		- -
(Decrease) Increase in accounts    payable affiliates		198,720		198,720
Net cash (used in) provided by  operating activities		8,062		(28,003)
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		- -		- -
Capital contributions paid to     Operating Partnerships		- -		- -
Proceeds from sale of operating Limited partnerships:		- -		- -
Advances to Operating Partnerships		-		-
Investments		-		-
Net cash (used in) provided by investing activities		- -		- -
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		-
Net cash (used in) provided by financing activities		- -		- -
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		8,062		(28,003)
Cash and cash equivalents, beginning		128,337		134,942
Cash and cash equivalents, ending	$	136,399	$	106,939
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	- -	$	- -

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 32

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(940,878)	$	(966,424)
Adjustments
Amortization		18,362		18,362
Distributions from Operating    Partnerships		- -		- -
Share of Loss from Operating    Partnerships		745,026		762,741
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		- -		- -
Decrease (Increase) in accounts    receivable		- -		- -
(Decrease) Increase in accounts    payable affiliates		115,771		165,769
Net cash (used in) provided by  operating activities		(61,719)		(19,552)
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		- -		- -
Capital contributions paid to     Operating Partnerships		- -		- -
Proceeds from sale of operating Limited partnerships:		- -		- -
Advances to Operating Partnerships		-		-
Investments		-		(371,766)
Net cash (used in) provided by investing activities		- -		(371,766)
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		-
Net cash (used in) provided by financing activities		- -		- -
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(61,719)		(391,318)
Cash and cash equivalents, beginning		386,782		439,407
Cash and cash equivalents, ending	$	325,063	$	48,089
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	- -	$	- -

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 33

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(533,188)	$	(437,696)
Adjustments
Amortization		13,638		13,638
Distributions from Operating    Partnerships		- -		- -
Share of Loss from Operating    Partnerships		455,381		320,915
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		- -		- -
Decrease (Increase) in accounts    receivable		- -		- -
(Decrease) Increase in accounts    payable affiliates		86,982		86,982
Net cash (used in) provided by  operating activities		22,813		(16,161)
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		- -		- -
Capital contributions paid to     Operating Partnerships		32,300		- -
Proceeds from sale of operating Limited partnerships:		- -		- -
Advances to Operating Partnerships		-		14,311
Investments		-		-
Net cash (used in) provided by investing activities		32,300		14,311
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		-
Net cash (used in) provided by financing activities		- -		- -
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		55,113		(1,850)
Cash and cash equivalents, beginning		197,136		191,000
Cash and cash equivalents, ending	$	252,249	$	189,150
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	- -	$	- -

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 34

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(699,156)	$	(1,044,084)
Adjustments
Amortization		21,969		21,969
Distributions from Operating    Partnerships		- -		- -
Share of Loss from Operating    Partnerships		510,933		849,343
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		- -		- -
Decrease (Increase) in accounts    receivable		- -		11,473
(Decrease) Increase in accounts    payable affiliates		146,598		146,597
Net cash (used in) provided by  operating activities		(19,656)		(14,702)
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		- -		- -
Capital contributions paid to     Operating Partnerships		- -		(40,500)
Proceeds from sale of operating Limited partnerships:		- -		- -
Advances to Operating Partnerships		-		-
Investments		-		-
Net cash (used in) provided by investing activities		- -		(40,500)
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		-
Net cash (used in) provided by financing activities		- -		- -
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(19,656)		(55,202)
Cash and cash equivalents, beginning		124,985		198,385
Cash and cash equivalents, ending	$	105,329	$	143,183
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	- -	$	- -

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 35

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(658,744)	$	(643,385)
Adjustments
Amortization		64,617		64,617
Distributions from Operating    Partnerships		- -		- -
Share of Loss from Operating    Partnerships		468,919		460,292
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		- -		- -
Decrease (Increase) in accounts    receivable		- -		- -
(Decrease) Increase in accounts    payable affiliates		74,180		114,180
Net cash (used in) provided by  operating activities		(51,028)		(4,296)
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		- -		- -
Capital contributions paid to     Operating Partnerships		- -		- -
Proceeds from sale of operating Limited partnerships:		- -		- -
Advances to Operating Partnerships		-		-
Investments		-		-
Net cash (used in) provided by investing activities		- -		- -
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		-
Net cash (used in) provided by financing activities		- -		- -
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(51,028)		(4,296)
Cash and cash equivalents, beginning		481,041		636,348
Cash and cash equivalents, ending	$	430,013	$	632,052
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	- -	$	- -

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 36

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(336,070)	$	(389,653)
Adjustments
Amortization		44,231		44,231
Distributions from Operating    Partnerships		9,565		- -
Share of Loss from Operating    Partnerships		215,049		2,493
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		147		261,835
Decrease (Increase) in accounts    receivable		- -		- -
(Decrease) Increase in accounts    payable affiliates		83,144		85,270
Net cash (used in) provided by  operating activities		16,066		4,176
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		- -		- -
Capital contributions paid to     Operating Partnerships		- -		- -
Proceeds from sale of operating Limited partnerships:		- -		- -
Advances to Operating Partnerships		-		-
Investments		-		-
Net cash (used in) provided by investing activities		- -		- -
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		-
Net cash (used in) provided by financing activities		- -		- -
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		16,066		4,176
Cash and cash equivalents, beginning		79,450		76,718
Cash and cash equivalents, ending	$	95,516	$	80,894
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	- -	$	- -

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 37

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(516,710)	$	(463,616)
Adjustments
Amortization		47,411		47,411
Distributions from Operating    Partnerships		5,471		2,495
Share of Loss from Operating    Partnerships		401,693		306,962
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		1,817		- -
Decrease (Increase) in accounts    receivable		- -		- -
(Decrease) Increase in accounts    payable affiliates		87,432		102,432
Net cash (used in) provided by  operating activities		27,114		(4,316)
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		- -		- -
Capital contributions paid to     Operating Partnerships		- -		- -
Proceeds from sale of operating Limited partnerships:		- -		- -
Advances to Operating Partnerships		67,239		29,789
Investments		-		-
Net cash (used in) provided by investing activities		67,239		29,789
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		-
Net cash (used in) provided by financing activities		- -		- -
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		94,353		25,473
Cash and cash equivalents, beginning		268,593		390,428
Cash and cash equivalents, ending	$	362,946	$	415,901
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	- -	$	- -

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 38

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(311,110)	$	(376,961)
Adjustments
Amortization		49,456		49,456
Distributions from Operating    Partnerships		814		204
Share of Loss from Operating    Partnerships		183,413		231,903
Changes in assets and liabilities				-
(Decrease) Increase in accounts    payable and accrued expenses		61		- -
Decrease (Increase) in accounts    receivable		- -		- -
(Decrease) Increase in accounts    payable affiliates		86,298		87,820
Net cash (used in) provided by  operating activities		8,932		(7,578)
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		- -		- -
Capital contributions paid to     Operating Partnerships		- -		- -
Proceeds from sale of operating Limited partnerships:		- -		- -
Advances to Operating Partnerships		-		-
Investments		-		-
Net cash (used in) provided by investing activities		- -		- -
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		-
Net cash (used in) provided by financing activities		- -		- -
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		8,932		(7,578)
Cash and cash equivalents, beginning		193,474		200,256
Cash and cash equivalents, ending	$	202,406	$	192,678
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	- -	$	- -

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 39

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(462,833)	$	(500,953)
Adjustments
Amortization		45,162		45,162
Distributions from Operating    Partnerships		- -		- -
Share of Loss from Operating    Partnerships		338,965		379,799
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		- -		- -
Decrease (Increase) in accounts    receivable		- -		184,159
(Decrease) Increase in accounts    payable affiliates		32,460		70,883
Net cash (used in) provided by  operating activities		(46,246)		179,050
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		- -		- -
Capital contributions paid to     Operating Partnerships		- -		- -
Proceeds from sale of operating Limited partnerships:		- -		- -
Advances to Operating Partnerships		-		-
Investments		-		-
Net cash (used in) provided by investing activities		- -		- -
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		-
Net cash (used in) provided by financing activities		- -		- -
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(46,246)		179,050
Cash and cash equivalents, beginning		368,313		198,542
Cash and cash equivalents, ending	$	322,067	$	377,592
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	- -	$	- -

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 40

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(508,790)	$	(593,930)
Adjustments
Amortization		56,864		56,864
Distributions from Operating    Partnerships		24,773		27,279
Share of Loss from Operating    Partnerships		347,917		390,615
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		- -		- -
Decrease (Increase) in accounts    receivable		24,761		278,868
(Decrease) Increase in accounts    payable affiliates		64,142		105,739
Net cash (used in) provided by  operating activities		9,667		315,435
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		- -		- -
Capital contributions paid to     Operating Partnerships		- -		(143,730)
Proceeds from sale of operating Limited partnerships:		- -		- -
Advances to Operating Partnerships		-		-
Investments		-		-
Net cash (used in) provided by investing activities		- -		(143,730)
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		-
Net cash (used in) provided by financing activities		- -		- -
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		9,667		171,705
Cash and cash equivalents, beginning		216,126		30,695
Cash and cash equivalents, ending	$	225,793	$	202,400
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	- -	$	- -

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 41

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(846,389)	$	(707,718)
Adjustments
Amortization		66,963		66,963
Distributions from Operating    Partnerships		2,769		- -
Share of Loss from Operating    Partnerships		639,646		508,657
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		(16,471)		- -
Decrease (Increase) in accounts    receivable		- -		211,363
(Decrease) Increase in accounts    payable affiliates		156,434		144,394
Net cash (used in) provided by  operating activities		2,952		223,659
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		- -		- -
Capital contributions paid to     Operating Partnerships		(80,401)		(175,670)
Proceeds from sale of operating Limited partnerships:		- -		- -
Advances to Operating Partnerships		-		-
Investments		-		-
Net cash (used in) provided by investing activities		(80,401)		(175,670)
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		(138,998)
Net cash (used in) provided by financing activities		- -		(138,998)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(77,449)		(91,009)
Cash and cash equivalents, beginning		83,998		178,767
Cash and cash equivalents, ending	$	6,549	$	87,758
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	- -	$	- -

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 42

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(706,714)	$	(541,996)
Adjustments
Amortization		58,111		58,111
Distributions from Operating    Partnerships		3,519		9,936
Share of Loss from Operating    Partnerships		511,951		378,331
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		- -		- -
Decrease (Increase) in accounts    receivable		- -		93,359
(Decrease) Increase in accounts    payable affiliates		130,234		124,943
Net cash (used in) provided by  operating activities		(2,899)		122,684
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		- -		- -
Capital contributions paid to     Operating Partnerships		(292,695)		- -
Proceeds from sale of operating Limited partnerships:		- -		- -
Advances to Operating Partnerships		(172,122)		-
Investments		-		-
Net cash (used in) provided by investing activities		(464,817)		- -
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		-
Net cash (used in) provided by financing activities		- -		- -
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(467,716)		122,684
Cash and cash equivalents, beginning		971,373		943,069
Cash and cash equivalents, ending	$	503,657	$	1,065,753
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	168,463	$	- -

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 43

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(818,710)	$	(928,882)
Adjustments
Amortization		83,435		82,439
Distributions from Operating    Partnerships		1,526		19,250
Share of Loss from Operating    Partnerships		573,716		680,529
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		- -		- -
Decrease (Increase) in accounts    receivable		157,557		(343,010)
(Decrease) Increase in accounts    payable affiliates		68,025		157,454
Net cash (used in) provided by  operating activities		65,549		(332,220)
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		- -		- -
Capital contributions paid to     Operating Partnerships		(136,066)		(16,048)
Proceeds from sale of operating Limited partnerships:		-		- -
Advances to Operating Partnerships		650,726		-
Investments		-		385,946
Net cash (used in) provided by investing activities		514,660		369,896
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		-
Net cash (used in) provided by financing activities		- -		- -
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		580,209		37,678
Cash and cash equivalents, beginning		189,255		332,509
Cash and cash equivalents, ending	$	769,464	$	370,187
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	- -	$	111,758

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 44

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(766,557)	$	(484,614)
Adjustments
Amortization		56,508		56,302
Distributions from Operating    Partnerships		- -		- -
Share of Loss from Operating    Partnerships		590,127		343,798
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		- -		- -
Decrease (Increase) in accounts    receivable		(196,604)		(415,490)
(Decrease) Increase in accounts    payable affiliates		67,351		106,171
Net cash (used in) provided by  operating activities		(249,175)		(393,833)
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		- -		- -
Capital contributions paid to     Operating Partnerships		(233,600)		(476,425)
Proceeds from sale of operating Limited partnerships:		- -		- -
Advances to Operating Partnerships		-		-
Investments		228,762		799,872
Net cash (used in) provided by investing activities		(4,838)		323,447
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		-
Net cash (used in) provided by financing activities		- -		- -
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(254,013)		(70,386)
Cash and cash equivalents, beginning		1,356,192		1,764,709
Cash and cash equivalents, ending	$	1,102,179	$	1,694,323
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	- -	$	- -

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 45

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(951,213)	$	(539,253)
Adjustments
Amortization		72,442		68,383
Distributions from Operating    Partnerships		7,686		1,000
Share of Loss from Operating    Partnerships		717,622		326,468
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		(6,960)		- -
Decrease (Increase) in accounts    receivable		- -		(2,122,234)
(Decrease) Increase in accounts    payable affiliates		71,317		- -
Net cash (used in) provided by  operating activities		(89,106)		(2,265,636)
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		- -		(10,787)
Capital contributions paid to     Operating Partnerships		(312,033)		(2,825,777)
Proceeds from sale of operating Limited partnerships:		- -		- -
Advances to Operating Partnerships		-		3,576,145
Investments		1,046,688		-
Net cash (used in) provided by investing activities		734,655		739,581
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		-
Net cash (used in) provided by financing activities		- -		- -
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		645,549		(1,526,055)
Cash and cash equivalents, beginning		1,167,018		2,145,548
Cash and cash equivalents, ending	$	1,812,567	$	619,493
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	- -	$	3,603,869

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 46

		2006		2005
Cash flows from operating activities:
Net income (loss)	$	(402,574)	$	(168,532)
Adjustments
Amortization		51,886		51,889
Distributions from Operating    Partnerships		- -		- -
Share of Loss from Operating    Partnerships		274,012		67,186
Changes in assets and liabilities
(Decrease) Increase in accounts    payable and accrued expenses		- -		- -
Decrease (Increase) in accounts    receivable		- -		5,655
(Decrease) Increase in accounts    payable affiliates		38,255		106,553
Net cash (used in) provided by  operating activities		(38,421)		62,751
Cash flows from investing activities:
Acquisition costs repaid (paid) for    Operating Partnerships acquired    or to be acquired		(15,515)		(52,809)
Capital contributions paid to     Operating Partnerships		(1,511,616)		(3,047,429)
Proceeds from sale of operating Limited partnerships:		- -		- -
Advances to Operating Partnerships		-		-
Investments		1,145,861		1,652,083
Net cash (used in) provided by investing activities		(381,270)		(1,448,155)
Cash flows from financing activities:
Sales and registration costs paid		-		-
Distribution		-		-
Net cash (used in) provided by financing activities		- -		- -
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(419,691)		(1,385,404)
Cash and cash equivalents, beginning		2,689,206		5,487,404
Cash and cash equivalents, ending	$	2,269,515	$	4,102,000
Supplemental schedule of non-cash investing and financing activities the fund has increased its investments for unpaid capital contributions due to the Operating Partnerships	$	- -	$	- -

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
September 30, 2006
(Unaudited)

NOTE A - ORGANIZATION

Boston Capital Tax Credit Fund IV L.P. (the "Fund") was organized under the laws of the State of Delaware as of October 5, 1993, for the purpose of acquiring, holding, and disposing of limited partnership interests in operating partnerships which will acquire, develop, rehabilitate, operate and own newly constructed, existing or rehabilitated low-income apartment complexes ("Operating Partnerships"). Effective as of June 1, 2001 there was a restructuring and, as a result, the Fund's general partner was reorganized as follows. The general partner of the Fund continues to be Boston Capital Associates IV L.P., a Delaware limited partnership. The general partner of the general partner of the Fund is now BCA Associates Limited Partnership, a Massachusetts limited partnership, whose sole general partner is C&M Management, Inc., a Massachusetts corporation and whose limited partners are Herbert F. Collins and John P. Manning. Mr. Manning is the principal of Boston Capital Partners, Inc. The limited p artner of the general partner of the Fund is Capital Investment Holdings, a general partnership whose partners are various officers and employees of Boston Capital Partners, Inc. and its affiliates. The assignor limited partner is BCTC IV Assignor Corp., a Delaware corporation which is now wholly-owned by John P. Manning.

Pursuant to the Securities Act of 1933, the Fund filed a Form S-11 Registration Statement with the Securities and Exchange Commission, effective December 16, 1993, which covered the offering (the "Public Offering") of the Fund's beneficial assignee certificates ("BACs") representing assignments of units of the beneficial interest of the limited partnership interest of the assignor limited partner. The Fund registered 30,000,000 BACs at $10 per BAC for sale to the public in one or more series. One April 18, 1996, an amendment to Form S-11 which registered an additional 10,000,000 BACs for sale to the public in one or more series became effective. On April 2, 1998, an amendment to Form S-11, which registered an additional 25,000,000 BACs for sale to the public in one or more series, became effective. On August 31, 1999, an amendment to Form S-11, which registered an additional 8,000,000 BACs for sale to the public in one or more series, became effective. On July 26, 2000, an amendment to Form S-11, whi ch registered an additional 7,500,000 BACs for sale to the public in one or more series, became effective. On July 24, 2001, an amendment to Form S-11, which registered an additional 7,000,000 BACs for sale to the public in one or more series, became effective. On July 24, 2002 an amendment to Form S- 11, which registered an additional 7,000,000 BACs for sale to the public, became effective. On July 1, 2003 an amendment to Form S-11, which registered an additional 7,000,000 BACs for sale to the public, became effective.

Below is a summary of the BACs sold and total equity raised by series as of the date of this filing:

Series	Closing Date	BACs Sold	Equity Raised
Series 20	June 24, 1994	3,866,700	$38,667,000
Series 21	December 31, 1994	1,892,700	$18,927,000
Series 22	December 28, 1994	2,564,400	$25,644,000
Series 23	June 23, 1995	3,336,727	$33,366,000
Series 24	September 22, 1995	2,169,878	$21,697,000
Series 25	December 29, 1995	3,026,109	$30,248,000
Series 26	June 25, 1996	3,995,900	$39,959,000
Series 27	September 17, 1996	2,460,700	$24,607,000
Series 28	January 29, 1997	4,000,738	$39,999,000

Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2006
(Unaudited)

NOTE A - ORGANIZATION (continued)

Series	Closing Date	BACs Sold	Equity Raised
Series 29	June 10, 1997	3,991,800	$39,918,000
Series 30	September 10, 1997	2,651,000	$26,490,750
Series 31	January 18, 1998	4,417,857	$44,057,750
Series 32	June 23, 1998	4,754,198	$47,431,000
Series 33	September 21, 1998	2,636,533	$26,362,000
Series 34	February 11, 1999	3,529,319	$35,273,000
Series 35	June 28, 1999	3,300,463	$33,004,630
Series 36	September 28, 1999	2,106,837	$21,068,375
Series 37	January 28, 2000	2,512,500	$25,125,000
Series 38	July 31, 2000	2,543,100	$25,431,000
Series 39	January 31, 2001	2,292,152	$22,921,000
Series 40	July 31, 2001	2,630,256	$26,629,250
Series 41	January 31, 2002	2,891,626	$28,916,260
Series 42	July 31, 2002	2,744,262	$27,442,620
Series 43	December 31,2002	3,637,987	$36,379,870
Series 44	April 30, 2003	2,701,973	$27,019,730
Series 45	September 16, 2003	4,014,367	$40,143,670
Series 46	December 19, 2003	2,980,998	$29,809,980

The Fund concluded its public offering of BACs in the Fund on December 19, 2003.

NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES

The condensed financial statements herein as of September 30, 2006 and for the six months then ended have been prepared by the Fund, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. The Fund accounts for its investments in Operating Partnerships using the equity method, whereby the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. Costs incurred by the Fund in acquiring the investments in the Operating Partnerships are capitalized to the investment account.

The Fund's accounting and financial reporting policies are in conformity with generally accepted accounting principles and include adjustments in interim periods considered necessary for a fair presentation of the results of operations. Such adjustments are of a normal recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to these rules and regulations. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Fund's Annual Report on Form 10-K.

Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2006
(Unaudited)

Amortization

The Fund began amortizing unallocated and deferred acquisition costs over 330 months as of June 1999. Accumulated amortization of acquisition costs by Series as of September 30, 2006 and 2005 is as follows:

	2006	2005
Series 20	$   26,792	$   23,219
Series 21	14,654	12,700
Series 22	46,048	39,909
Series 23	64,154	55,023
Series 24	76,534	66,330
Series 25	76,862	66,614
Series 26	129,018	112,114
Series 27	112,101	97,154
Series 28	24,751	21,451
Series 29	24,695	21,383
Series 30	159,153	137,916
Series 32	226,695	196,298
Series 33	203,677	176,397
Series 34	323,385	280,029
Series 35	917,776	794,909
Series 36	625,719	541,359
Series 37	581,629	491,642
Series 38	479,485	383,583
Series 39	416,946	329,166
Series 40	379,366	276,968
Series 41	518,786	403,253
Series 42	393,182	279,998
Series 43	509,076	361,984
Series 44	278,676	177,156
Series 45	314,533	194,870
Series 46	218,667	129,898
	$7,142,360	$5,671,323

Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2006
(Unaudited)

NOTE C - RELATED PARTY TRANSACTIONS

The Fund has entered into several transactions with various affiliates of the general partner of the Fund, including Boston Capital Holdings Limited Partnership, Boston Capital Securites, Inc., and Boston Capital Asset Management L.P. as follows:

An annual fund management fee of .5 percent of the aggregate cost of all apartment complexes owned by the Operating Partnerships has been accrued to Boston Capital Asset Management Limited Partnership. Since reporting fees collected by the various series were added to reserves and not paid to Boston Capital Asset Management Limited Partner, the amounts accrued are not net of reporting fees received. The partnership management fees accrued for the quarters ended September 30, 2006 and 2005 are as follows:

	2006	2005
Series 20	$   84,438	$   92,061
Series 21	56,460	56,460
Series 22	63,648	63,648
Series 23	60,066	60,066
Series 24	56,934	56,460
Series 25	68,169	68,169
Series 26	108,689	108,689
Series 27	78,801	78,801
Series 28	83,529	83,529
Series 29	84,495	84,495
Series 30	55,230	55,230
Series 31	99,360	99,360
Series 32	82,886	82,886
Series 33	43,491	43,491
Series 34	73,299	73,299
Series 35	57,090	57,090
Series 36	40,149	40,149
Series 37	51,216	51,216
Series 38	41,100	41,100
Series 39	34,200	34,200
Series 40	50,001	50,001
Series 41	68,610	69,042
Series 42	63,042	60,839
Series 43	76,610	75,512
Series 44	71,176	53,285
Series 45	92,136	-
Series 46	61,036	53,323
	$1,805,861	$1,692,401

Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2006
(Unaudited)

NOTE C - RELATED PARTY TRANSACTIONS (continued)

The fund management fees paid for the quarters ended September 30, 2006 and 2005 are as follows:

	2006	2005
Series 45	$ 46,018	$ 85,570
Series 46	34,147	-
	$ 80,165	$ 85,570

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS

During the six months ended September 30, 2006 the partnership received additional proceeds of $7,016 from one operating limited partnership in Series 20 which was disposed of in the prior year.

The gain (loss) described below from the dispositions of properties is for financial statement purposes only. There are significant differences between the equity method of accounting and the tax reporting of income and losses from operating partnership investments. The largest difference is the ability for tax purposes, to deduct losses in excess of the partnership's investment in the operating partnership. As such, the amount of gain recognized for tax purposes may be significantly higher than the gain recorded in the financial statements.

At September 30, 2006 and 2005 the Fund has limited partnership interests in 515 and 513 Operating Partnerships, respectively, which own or are constructing apartment complexes.

The breakdown of Operating Partnerships within the Fund at September 30, 2006 and 2005 is as follows:

	2006	2005
Series 20	22	23
Series 21	14	14
Series 22	29	29
Series 23	22	22
Series 24	24	24
Series 25	22	22
Series 26	45	45
Series 27	16	16
Series 28	26	26
Series 29	22	22
Series 30	18	20
Series 31	27	27
Series 32	17	17
Series 33	10	10
Series 34	14	14
Series 35	11	11
Series 36	11	11
Series 37	7	7
Series 38	10	10
Series 39	9	9

Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2006
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

	2006	2005
Series 40	16	16
Series 41	22	23
Series 42	23	22
Series 43	23	22
Series 44	10	9
Series 45	31	30
Series 46	14	12
	515	513

Under the terms of the Fund's investment in each Operating Partnership, the Fund is required to make capital contributions to the Operating Partnerships. These contributions are payable in installments over several years upon each Operating Partnership achieving specified levels of construction and/or operations. The contributions payable at September 30, 2006 and 2005 are as follows:

	2006	2005
Series 20	$    -	$   388,026
Series 21	236,479	457,642
Series 22	18,770	476,496
Series 23	-	117,796
Series 24	9,999	368,239
Series 25	61,733	768,198
Series 26	29,490	1,443,838
Series 27	39,749	39,749
Series 28	40,968	40,968
Series 29	45,783	66,718
Series 30	127,396	128,167
Series 31	611,150	682,058
Series 32	484,756	520,571
Series 33	194,154	202,285
Series 34	8,244	8,244
Series 35	163,782	603,740
Series 36	-	657,998
Series 37	138,438	155,363
Series 38	-	-
Series 39	-	-
Series 40	8,694	8,694
Series 41	165	304,884
Series 42	775,421	680,975
Series 43	490,522	878,185
Series 44	781,022	1,147,611
Series 45	1,125,447	6,075,827
Series 46	590,543	636,319
	$5,982,705	$16,858,591

Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2006
(Unaudited)

NOTE D - INVESTMENT IN OPERATING PARTNERSHIPS - (continued)

The Fund's fiscal year ends March 31st for each year, while all the Operating Partnerships' fiscal years are the calendar year. Pursuant to the provisions of each Operating Partnership Agreement, financial results for each of the Operating Partnerships are provided to the Fund within 45 days after the close of each Operating Partnership's quarterly period. Accordingly, the current financial results available for the Operating Partnerships are for the six months ended June 30, 2006.

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,
(Unaudited)

Series 20

		2006		2005
Revenues
Rental	$	4,754,535	$	4,884,560
Interest and other		262,778		270,786
		5,017,313		5,155,346
Expenses
Interest		1,318,397		1,400,638
Depreciation and amortization		1,144,293		1,379,177
Operating expenses		3,093,043		2,775,019
		5,555,733		5,554,834
NET LOSS	$	(538,420)	$	(399,488)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(533,006)	$	(395,493)
Net loss allocated to other Partners	$	(5,414)	$	(3,995)

* Amounts include $181,345 and $211,787 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.

The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2006
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,
(Unaudited)

Series 21

		2006		2005
Revenues
Rental	$	2,552,420	$	2,596,563
Interest and other		89,222		62,233
		2,641,642		2,658,796
Expenses
Interest		968,024		902,288
Depreciation and amortization		455,479		442,370
Operating expenses		2,107,721		2,107,543
		3,531,224		3,452,201
NET LOSS	$	(889,582)	$	(793,405)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(880,686)	$	(785,471)
Net loss allocated to other Partners	$	(8,896)	$	(7,934)

* Amounts include $774,407 and $637,963 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.

The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2006
(Unaudited)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,
(Unaudited)

Series 22

		2006		2005
Revenues
Rental	$	2,864,336	$	2,761,289
Interest and other		155,782		133,175
		3,020,118		2,894,464
Expenses
Interest		642,087		675,202
Depreciation and amortization		814,987		971,542
Operating expenses		1,995,451		1,908,901
		3,452,525		3,555,645
NET LOSS	$	(432,407)	$	(661,181)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(428,083)	$	(654,569)
Net loss allocated to other Partners	$	(4,324)	$	(6,612)

* Amounts include $343,398 and $181,655 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.

The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2006
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,
(Unaudited)

Series 23

		2006		2005
Revenues
Rental	$	2,597,136	$	2,651,813
Interest and other		83,396		139,131
		2,680,532		2,790,944
Expenses
Interest		675,491		777,564
Depreciation and amortization		614,101		794,767
Operating expenses		1,790,216		1,978,319
		3,079,808		3,550,650
NET LOSS	$	(399,276)	$	(759,706)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P.	$	(395,282)	$	(752,108)
Net loss allocated to other Partners	$	(3,994)	$	(7,598)

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2006
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,
(Unaudited)

Series 24

		2006		2005
Revenues
Rental	$	2,324,862	$	2,363,281
Interest and other		47,184		52,388
		2,372,046		2,415,669
Expenses
Interest		471,425		500,101
Depreciation and amortization		662,906		670,589
Operating expenses		1,572,222		1,492,425
		2,706,553		2,663,115
NET LOSS	$	(334,507)	$	(247,446)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(331,162)	$	(244,972)
Net loss allocated to other Partners	$	(3,345)	$	(2,474)

* Amounts include $165,668 and $84,211 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.

The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2006
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,
(Unaudited)

Series 25

		2006		2005
Revenues
Rental	$	4,324,023	$	4,301,543
Interest and other		118,271		80,329
		4,442,294		4,381,872
Expenses
Interest		1,059,202		1,133,761
Depreciation and amortization		967,722		1,033,609
Operating expenses		2,964,235		2,755,588
		4,991,159		4,922,958
NET LOSS	$	(548,865)	$	(541,086)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(543,376)	$	(535,675)
Net loss allocated to other Partners	$	(5,489)	$	(5,411)

* Amounts include $285,419 and $359,260 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.

The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 20060
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,
(Unaudited)

Series 26

		2006		2005
Revenues
Rental	$	5,143,370	$	4,930,977
Interest and other		232,502		187,110
		5,375,872		5,118,087
Expenses
Interest		1,252,446		1,177,763
Depreciation and amortization		1,350,210		1,426,023
Operating expenses		3,557,113		3,065,248
		6,159,769		5,669,034
NET LOSS	$	(783,897)	$	(550,947)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(776,058)	$	(545,438)
Net loss allocated to other Partners	$	(7,839)	$	(5,509)

* Amounts include $160,056 and $137,080 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.

The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2006
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,
(Unaudited)

Series 27

		2006		2005
Revenues
Rental	$	3,471,863	$	3,444,712
Interest and other		105,867		65,572
		3,577,730		3,510,284
Expenses
Interest		1,389,556		1,387,384
Depreciation and amortization		871,240		855,462
Operating expenses		1,911,839		1,725,295
		4,172,635		3,968,141
NET LOSS	$	(594,905)	$	(457,857)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(588,956)	$	(453,278)
Net loss allocated to other Partners	$	(5,949)	$	(4,579)

* Amounts include $96,529 and $93,493 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.

The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2006
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,
(Unaudited)

Series 28

		2006		2005
Revenues
Rental	$	3,292,980	$	3,106,445
Interest and other		79,499		75,471
		3,372,479		3,181,916
Expenses
Interest		814,181		757,857
Depreciation and amortization		1,106,729		1,155,811
Operating expenses		2,004,338		2,050,299
		3,925,248		3,963,967
NET LOSS	$	(552,769)	$	(782,051)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(547,241)	$	(774,230)
Net loss allocated to other Partners	$	(5,528)	$	(7,821)

* Amounts include $2,349 and $6,610 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.

The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2006
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,
(Unaudited)

Series 29

		2006		2005
Revenues
Rental	$	3,261,060	$	3,715,100
Interest and other		290,850		135,510
		3,551,910		3,850,610
Expenses
Interest		847,860		946,803
Depreciation and amortization		1,249,376		1,337,450
Operating expenses		2,045,634		2,469,345
		4,142,870		4,753,598
NET LOSS	$	(590,960)	$	(902,988)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(585,050)	$	(893,958)
Net loss allocated to other Partners	$	(5,910)	$	(9,030)

* Amounts include $28,967 and $87,841 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.

The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2006
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,
(Unaudited)

Series 30

		2006		2005
Revenues
Rental	$	2,511,563	$	2,464,690
Interest and other		115,425		120,706
		2,626,988		2,585,396
Expenses
Interest		584,931		596,946
Depreciation and amortization		685,364		668,082
Operating expenses		1,917,919		1,857,933
		3,188,214		3,122,961
NET LOSS	$	(561,226)	$	(537,565)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(555,614)	$	(532,189)
Net loss allocated to other Partners	$	(5,612)	$	(5,376)

* Amounts include $142,291 and $0 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.

The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2006
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,
(Unaudited)

Series 31

		2006		2005
Revenues
Rental	$	5,122,115	$	4,961,870
Interest and other		204,224		177,925
		5,326,339		5,139,795
Expenses
Interest		1,178,310		1,062,581
Depreciation and amortization		1,538,377		1,646,765
Operating expenses		3,414,945		3,261,424
		6,131,632		5,970,770
NET LOSS	$	(805,293)	$	(830,975)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(797,385)	$	(822,810)
Net loss allocated to other Partners	$	(7,908)	$	(8,165)

* Amounts include $17,279 and $0 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.

The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2006
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,
(Unaudited)

Series 32

		2006		2005
Revenues
Rental	$	2,796,807	$	2,744,491
Interest and other		138,696		143,339
		2,935,503		2,887,830
Expenses
Interest		704,546		672,772
Depreciation and amortization		1,221,754		1,122,571
Operating expenses		1,792,656		1,927,645
		3,718,956		3,722,988
NET LOSS	$	(783,453)	$	(835,158)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(775,618)	$	(826,806)
Net loss allocated to other Partners	$	(7,835)	$	(8,352)

* Amounts include $30,592 and $64,065 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.

The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2006
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,
(Unaudited)

Series 33

		2006		2005
Revenues
Rental	$	1,483,468	$	1,390,040
Interest and other		43,924		37,081
		1,527,392		1,427,121
Expenses
Interest		461,111		450,411
Depreciation and amortization		614,705		462,028
Operating expenses		911,557		838,839
		1,987,373		1,751,278
NET LOSS	$	(459,981)	$	(324,157)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P.	$	(455,381)	$	(320,915)
Net loss allocated to other Partners	$	(4,600)	$	(3,242)

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2006
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,
(Unaudited)

Series 34

		2006		2005
Revenues
Rental	$	2,931,533	$	2,662,135
Interest and other		129,813		146,312
		3,061,346		2,808,447
Expenses
Interest		813,105		787,371
Depreciation and amortization		1,054,344		1,101,760
Operating expenses		1,709,992		1,777,239
		3,577,441		3,666,370
NET LOSS	$	(516,095)	$	(857,923)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P.	$	(510,933)	$	(849,343)
Net loss allocated to other Partners	$	(5,162)	$	(8,580)

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2006
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,

Series 35

		2006		2005
Revenues
Rental	$	2,295,259	$	2,117,422
Interest and other		101,189		161,316
		2,396,448		2,278,738
Expenses
Interest		607,113		557,184
Depreciation and amortization		762,412		777,880
Operating expenses		1,500,578		1,408,615
		2,870,103		2,743,679
NET LOSS	$	(473,655)	$	(464,941)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P.	$	(468,919)	$	(460,292)
Net loss allocated to other Partners	$	(4,736)	$	(4,649)

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2006
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,
(Unaudited)

Series 36

		2006		2005
Revenues
Rental	$	1,635,567	$	1,575,666
Interest and other		61,658		47,360
		1,697,225		1,623,026
Expenses
Interest		482,938		505,012
Depreciation and amortization		516,008		530,781
Operating expenses		915,553		852,234
		1,914,499		1,888,027
NET LOSS	$	(217,274)	$	(265,001)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(215,101)	$	(262,351)
Net loss allocated to other Partners	$	(2,173)	$	(2,650)

* Amounts include $52 and $516 for 2006 and 2005, respectively, of income loss not recognized under the equity method of accounting.

The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2006
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,
(Unaudited)

Series 37

		2006		2005
Revenues
Rental	$	2,275,169	$	2,167,300
Interest and other		49,977		148,791
		2,325,146		2,316,091
Expenses
Interest		559,844		686,206
Depreciation and amortization		898,913		669,636
Operating expenses		1,272,139		1,270,311
		2,730,896		2,626,153
NET LOSS	$	(405,750)	$	(310,062)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P.	$	(401,693)	$	(306,962)
Net loss allocated to other Partners	$	(4,057)	$	(3,100)

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2006
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,
(Unaudited)

Series 38

		2006		2005
Revenues
Rental	$	1,737,386	$	1,545,717
Interest and other		76,574		53,703
		1,813,960		1,599,420
Expenses
Interest		434,587		415,203
Depreciation and amortization		594,389		489,531
Operating expenses		970,250		928,931
		1,999,226		1,833,665
NET LOSS	$	(185,266)	$	(234,245)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P.	$	(183,413)	$	(231,903)
Net loss allocated to other Partners	$	(1,853)	$	(2,342)

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2006
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,
(Unaudited)

Series 39

		2006		2005
Revenues
Rental	$	1,236,281	$	1,073,476
Interest and other		74,791		85,436
		1,311,072		1,158,912
Expenses
Interest		305,622		333,619
Depreciation and amortization		543,321		405,369
Operating expenses		804,518		803,559
		1,653,461		1,542,547
NET LOSS	$	(342,389)	$	(383,635)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P.	$	(338,965)	$	(379,799)
Net loss allocated to other Partners	$	(3,424)	$	(3,836)

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2006
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,
(Unaudited)

Series 40

		2006		2005
Revenues
Rental	$	1,843,185	$	1,757,020
Interest and other		51,949		60,418
		1,895,134		1,817,438
Expenses
Interest		486,698		489,181
Depreciation and amortization		692,198		728,074
Operating expenses		1,067,670		994,743
		2,246,566		2,211,998
NET LOSS	$	(351,432)	$	(394,560)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P.	$	(347,917)	$	(390,615)
Net loss allocated to other Partners	$	(3,515)	$	(3,945)

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2006

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,
(Unaudited)

Series 41

		2006		2005
Revenues
Rental	$	2,581,138	$	2,552,973
Interest and other		110,047		96,827
		2,691,185		2,649,800
Expenses
Interest		1,081,486		986,939
Depreciation and amortization		964,189		971,660
Operating expenses		1,419,355		1,347,561
		3,465,030		3,306,160
NET LOSS	$	(773,845)	$	(656,360)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(776,107)	$	(649,796)
Net loss allocated to other Partners	$	(7,738)	$	(6,564)

* Amounts include $126,461 and $141,139 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.

The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2006

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,
(Unaudited)

        Series 42

		2006		2005
Revenues
Rental	$	2,638,371	$	2,808,000
Interest and other		82,875		94,180
		2,721,246		2,902,180
Expenses
Interest		757,948		879,661
Depreciation and amortization		884,421		962,746
Operating expenses		1,598,999		1,441,926
		3,241,368		3,284,333
NET LOSS	$	(520,122)	$	(382,153)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(514,921)	$	(378,331)
Net loss allocated to other Partners	$	(5,201)	$	(3,822)

* Amounts include $2,970 and $0 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.

The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2006

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,
(Unaudited)

Series 43

		2006		2005
Revenues
Rental	$	3,285,634	$	3,022,542
Interest and other		131,219		132,422
		3,416,853		3,154,964
Expenses
Interest		769,839		828,708
Depreciation and amortization		1,277,877		1,246,302
Operating expenses		2,067,747		1,767,357
		4,115,463		3,842,367
NET LOSS	$	(698,610)	$	(687,403)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(691,624)	$	(680,529)
Net loss allocated to other Partners	$	(6,986)	$	(6,874)

* Amounts include $117,908 and $0 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.

The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2006

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,
(Unaudited)

Series 44

		2006		2005
Revenues
Rental	$	2,640,437	$	1,879,455
Interest and other		153,677		56,649
		2,794,114		1,936,104
Expenses
Interest		1,020,026		670,720
Depreciation and amortization		836,780		695,034
Operating expenses		1,533,397		917,621
		3,390,203		2,283,375
NET LOSS	$	(596,089)	$	(347,271)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P.	$	(590,127)	$	(343,798)
Net loss allocated to other Partners	$	(5,962)	$	(3,473)

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2006

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,
(Unaudited)

Series 45

		2006		2005
Revenues
Rental	$	3,913,362	$	2,642,782
Interest and other		219,794		191,747
		4,133,156		2,834,529
Expenses
Interest		1,221,147		828,449
Depreciation and amortization		1,296,599		667,600
Operating expenses		2,340,281		1,668,245
		4,858,027		3,164,294
NET LOSS	$	(724,871)	$	(329,765)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P.	$	(717,622)	$	(326,468)
Net loss allocated to other Partners	$	(7,249)	$	(3,297)

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2006

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months Ended June 30,
(Unaudited)

Series 46

		2006		2005
Revenues
Rental	$	2,002,455	$	1,627,413
Interest and other		45,977		18,617
		2,048,432		1,646,030
Expenses
Interest		688,405		410,087
Depreciation and amortization		563,858		389,633
Operating expenses		1,072,949		914,174
		2,325,212		1,713,894
NET LOSS	$	(276,780)	$	(67,884)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P.	$	(274,012)	$	(67,186)
Net loss allocated to other Partners	$	(2,768)	$	(678)

Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2006
(Unaudited)

NOTE D - INVESTMENT IN OPERATING PARTNERSHIPS-CONTINUED

When comparing the results of operations from the Operating Partnerships for the six months ended September 30, 2006 and 2005, numerous variances, some material in nature, exist. The variances, in most cases, are the result of a number of factors, including an increase in the number of Operating Partnerships owned, an increase in the number which have completed construction, and an increase in the number which have completed the lease-up phase.

NOTE E - TAXABLE LOSS

The Fund's taxable loss for the fiscal year ended December 31, 2006 is expected to differ from its loss for financial reporting purposes. This is primarily due to accounting differences in depreciation incurred by the Operating Partnerships and also differences between the equity method of accounting and the IRS accounting methods. No provision or benefit for income taxes has been included in these financial statements since taxable income or loss passes through to, and is reportable by, the partners and assignees individually.

Item 2. Management's Discussions and Analysis of Financial Condition and
Results of Operations

Liquidity

The Fund's primary source of funds is the proceeds of the Offering. Other sources of liquidity will include (i) interest earned on capital contributions held pending investment and on working capital and (ii) cash distributions from operations of the Operating Partnerships in which the Fund has and will invest. The Fund does not anticipate significant cash distributions from operations of the Operating Partnerships.

The Fund is currently accruing the fund management fee for Series 20, Series 21, Series 22, Series 23, Series 24, Series 25, Series 26, Series 27, Series 28, Series 29, Series 30, Series 31, Series 32, Series 33, Series 34, Series 35, Series 36, Series 37, Series 38, Series 39, Series 40, Series 41, Series 42, Series 43, Series 44, and Series 46. Pursuant to the Partnership Agreement, these liabilities will be deferred until the Fund receives sales or refinancing proceeds from the Operating Partnerships, which will be used to satisfy these liabilities. The Fund's working capital and sources of liquidity coupled with affiliated party liability accruals allow sufficient levels of liquidity to meet the third party obligations of the Fund. The Fund is currently unaware of any trends which would create insufficient liquidity to meet future third party obligations.

Capital Resources

The Fund offered BACs in the Offering declared effective by the Securities and Exchange Commission on December 16, 1993. The Fund received $38,667,000, $18,927,000, $25,644,000, $33,366,000, $21,697,000, $30,248,000, $39,959,000, $24,607,000, $39,999,000, $39,918,000, $26,490,750, $44,057,750, $47,431,000, $26,362,000, $35,273,000, $33,004,630, $21,068,375, $25,125,000, $25,431,000, $22,921,000, $26,629,250, $28,916,260, $27,442,620, $27,442,620, $36,379,870, $27,019,730, $40,143,670 and $29,809,980 representing 3,866,700, 1,892,700, 2,564,400, 3,336,727, 2,169,878, 3,026,109, 3,995,900, 2,460,700, 4,000,738, 3,991,800, 2,651,000, 4,417,857, 4,754,198, 2,636,533, 3,529,319, 3,300,463, 2,106,837, 2,512,500, 2,543,100, 2,292,152, 2,630,257, 2,891,626, 2,744,262, 3,637,987, 2,701,973, 4,014,367 and 2,908,998 BACs from investors admitted as BAC Holders in Series 20, Series 21, Series 22, Series 23, Series 24, Series 25, Series 26, Series 27, Series 28, Series 29, Series 30, Series 31, Series 32, Series 33, Series 34, Series 35, Series 36, Series 37, Series 38, Series 39, Series 40, Series 41, Series 42, Series 43, Series 44, Series 45 and Series 46, respectively, as of September 30, 2006.

Series 20

The Fund commenced offering BACs in Series 20 on January 21, 1994. Offers and sales of BACs in Series 20 were completed on June 24, 1994. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 24 Operating Partnerships in the amount of $27,693,970. Series 20 has since sold its interest in two of the Operating Partnerships.

Prior to the quarter ended September 30, 2006, Series 20 had released all payments of its capital contributions to the Operating Partnerships.

Series 21

The Fund commenced offering BACs in Series 21 on July 1, 1994. Offers and sales of BACs in Series 21 were completed on December 31, 1994. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 14 Operating Partnerships in the amount of $13,872,728.

During the quarter ended September 30, 2006, Series 21 did not record any releases of capital contributions. Series 21 has outstanding contributions payable to 1 Operating Partnership in the amount of $236,479 as of September 30, 2006, all of which has been loaned to the Operating Partnership. The loans will be converted to capital when the Operating Partnership has achieved the conditions set forth in its partnership agreement.

Series 22

The Fund commenced offering BACs in Series 22 on October 10, 1994. Offers and sales of BACs in Series 22 were completed on December 28, 1994. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 29 Operating Partnerships in the amount of $18,758,748.

During the quarter ended September 30,2006, Series 22 recorded capital contribution releases of $1,500. Series 22 has outstanding contributions payable to 2 Operating Partnerships in the amount of $18,770 as of September 30, 2006. The remaining contributions will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.

Series 23

The Fund commenced offering BACs in Series 23 on January 10, 1995. Offers and sales of BACs in Series 23 were completed on September 23, 1995. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 22 Operating Partnerships in the amount of $24,352,278.

Prior to the quarter ended September 30, 2006, Series 23 had released all payments of its capital contributions to the Operating Partnerships.

Series 24

The Fund commenced offering BACs in Series 24 on June 9, 1995. Offers and sales of BACs in Series 24 were completed on September 22, 1995. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 24 Operating Partnerships in the amount of $15,796,309.

During the quarter ended September 30,2006, Series 24 did not record any releases of capital contributions. Series 24 has outstanding contributions payable to 1 Operating Partnership in the amount of $9,999 as of September 30, 2006. The remaining contributions will be released when the Operating Partnership has achieved the conditions set forth in its partnership agreement.

Series 25

The Fund commenced offering BACs in Series 25 on December 31, 1995. Offers and sales of BACs in Series 25 were completed on December 29, 1995. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 22 Operating Partnerships in the amount of $22,324,540.

During the quarter ended September 30, 2006, Series 25 did not record any releases of capital contributions. Series 25 has outstanding contributions payable to 2 Operating Partnerships in the amount of $61,733 as of September 30, 2006. The remaining contributions will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.

Series 26

The Fund commenced offering BACs in Series 26 on January 18, 1996. Offers and sales of BACs in Series 26 were completed on June 25, 1996. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 45 Operating Partnerships in the amount of $29,401,215.

During the quarter ended September 30, 2006, Series 26 did not record any releases of capital contributions. Series 26 has outstanding contributions payable to 3 Operating Partnerships in the amount of $29,490, as of September 30, 2006. The remaining contributions will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.

Series 27

The Fund commenced offering BACs in Series 27 on June 24, 1996. Offers and sales of BACs in Series 27 were completed on September 17, 1996. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 16 Operating Partnerships in the amount of $17,881,573.

During the quarter ended September 30, 2006, Series 27 did not record any releases of capital contributions. Series 27 has outstanding contributions payable to 3 Operating Partnerships in the amount of $39,749 as of September 30, 2006. Of the amount outstanding, $6,500 has been advanced to one of the Operating Partnerships. The advance will be converted to capital and the remaining contributions of $33,249 will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.

Series 28

The Fund commenced offering BACs in Series 28 on December 31,1996. Offers and sales of BACs in Series 28 were completed on January 31, 1997. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 26 Operating Partnership in the amount of $29,281,983.

During the quarter ended September 30, 2006, Series 28 did not record any releases of capital contributions. Series 28 has outstanding contributions payable to 3 Operating Partnerships in the amount of $40,968 as of September 30, 2006. The remaining contributions will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.

Series 29

The Fund commenced offering BACs in Series 29 on February 10, 1997. Offers and sales of BACs in Series 29 were completed on June 10, 1997. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 22 Operating Partnerships in the amount of $29,137,872.

During the quarter ended September 30, 2006, Series 29 did not record any releases of capital contributions. Series 29 has outstanding contributions payable to 4 Operating Partnerships in the amount of $45,783 as of September 30, 2006. The remaining contributions will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.

Series 30

The Fund commenced offering BACs in Series 30 on June 23, 1997. Offers and sales of BACs in Series 30 were completed on September 10, 1997. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 20 Operating Partnerships in the amount of $19,497,869. Series 30 has since disposed of its interest in two of the Operating Partnerships.

During the quarter ended September 30, 2006, Series 30 did not record any releases of capital contributions. Series 30 has outstanding contributions payable to 4 Operating Partnerships in the amount of $127,396 as of September 30, 2006. The remaining contributions will be released when Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.

Series 31

The Fund commenced offering BACs in Series 31 on September 11, 1997. Offers and sales of BACs in Series 31 were completed on January 18, 1998. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 27 Operating Partnerships in the amount of $32,569,100.

During the quarter ended September 30, 2006, Series 31 did not record any releases of capital contributions. Series 31 has outstanding contributions payable to 5 Operating Partnerships in the amount of $611,150 as of September 30, 2006. Of the amount outstanding, $544,766 has been advanced or loaned to some of the Operating Partnerships. In addition, $25,000 has been funded into an escrow account on behalf of another Operating Partnership. The advances and loans will be converted to capital and the remaining contributions of $66,384, as well as the escrowed funds, will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.

Series 32

The Fund commenced offering BACs in Series 32 on January 19, 1998. Offers and sales of BACs in Series 32 were completed on June 23, 1998. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 17 Operating Partnerships in the amount of $34,129,677. The series has also purchased assignments in Bradley Phase I of Massachusetts LLC, Bradley Phase II of Massachusetts LLC, Byam Village of Massachusetts LLC, Hanover Towers of Massachusetts LLC, Harbor Towers of Massachusetts LLC and Maple Hill of Massachusetts LLC. Under the terms of the Assignments of Membership Interests dated December 1, 1998, the series is entitled to various profits, losses, tax credits, cash flow, proceeds from capital transactions and capital accounts as defined in the individual Operating Agreements. The series utilized $1,092,847 of funds available to invest in Operating Partnerships for this investment.

During the quarter ended September 30, 2006, Series 32 did not record any releases of capital contributions. Series 32 has outstanding contributions payable to 5 Operating Partnerships in the amount of $484,756 as of September 30, 2006. Of the amount outstanding, $225,756 has been advanced or loaned to some of the Operating Partnerships. In addition, $125,000 has been funded into escrow accounts on behalf of another Operating Partnership. The loans will be converted to capital and the remaining contributions of $259,000, as well as the escrowed funds, will be released when Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.

Series 33

The Fund commenced offering BACs in Series 33 on June 22, 1998. Offers and sales of BACs in Series 33 were completed on September 21, 1998. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 10 Operating Partnerships in the amount of $19,594,100.

During the quarter ended September 30, 2006, Series 33 did not record any releases of capital contributions. Series 33 has outstanding contributions payable to 3 Operating Partnerships in the amount of $194,154 as of September 30, 2006. Of the amount outstanding, $21,806 has been loaned to one of the Operating Partnerships. In addition, $125,000 has been funded into an escrow account on behalf of another Operating Partnership. The loans will be converted to capital and the remaining contributions of $172,348, as well as the escrowed funds, will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.

Series 34

The Fund commenced offering BACs in Series 34 on September 22, 1998. Offers and sales of BACs in Series 34 were completed on February 11, 1999. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 14 Operating Partnerships in the amount of $25,738,978.

During the quarter ended June 30, 2006, Series 34 did not record any releases of capital contributions. Series 34 has outstanding contributions payable to 1 Operating Partnership in the amount of $8,244 as of September 30, 2006. The remaining contributions will be released when the Operating Partnership has achieved the conditions set forth in its respective partnership agreement.

Series 35

The Fund commenced offering BACs in Series 35 on February 22, 1999. Offers and sales of BACs in Series 35 were completed on June 25, 1999. The Fund has committed

proceeds to pay initial and additional installments of capital contributions to 11 Operating Partnerships in the amount of $24,002,391.

During the quarter ended September 30, 2006, Series 35 did not record any releases of capital contributions. Series 35 has outstanding contributions payable to 1 Operating Partnership in the amount of $163,782 as of March 31, 2006. The remaining contributions will be released when the Operating Partnership has achieved the conditions set forth in its partnership agreement.

Series 36

The Fund commenced offering BACs in Series 36 on June 22, 1999. Offers and sales of BACs in Series 36 were completed on September 28, 1999. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 11 Operating Partnerships in the amount of $15,277,041.

Prior to the quarter ended September 30, 2006, Series 36 had released all payments of its capital contributions to the Operating Partnerships.

Series 37

The Fund commenced offering BACs in Series 37 on October 29, 1999. Offers and sales of BACs in Series 37 were completed on January 28, 1999. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 7 Operating Partnerships in the amount of $18,735,142.

During the quarter ended September 30, 2006, Series 37 did not record any releases of capital contributions. Series 37 has outstanding contributions payable to 1 Operating Partnership in the amount of $138,438 as of September 30, 2006. The remaining contributions will be released when the Operating Partnership has achieved the conditions set forth in its partnership agreement.

Series 38

The Fund commenced offering BACs in Series 38 on February 1, 2000. Offers and sales of BACs in Series 38 were completed on July 31, 2000. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 10 Operating Partnerships in the amount of $18,612,287. In addition the Fund committed and used $420,296 of Series 38 net offering proceeds to acquire a limited partnership equity interest in a limited liability company, which is the general partner of other operating limited partnerships, which own or are constructing, rehabilitating or operating apartment complexes.

Prior to the quarter ended September 30, 2006, Series 38 had released all payments of its capital contributions to the Operating Partnerships.

Series 39

The Fund commenced offering BACs in Series 39 on August 1, 2000. Offers and sales of BACs in Series 39 were completed on January 31, 2001. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 9 Operating Partnerships in the amount of $17,115,492 as of September 30, 2006. In addition, the Fund committed and used $192,987 of Series 39 net offering proceeds to acquire a limited partnership equity interest in a limited liability company, which is the general partner of other operating limited partnerships, which own or are constructing, rehabilitating or operating apartment complexes.

Prior to the quarter ended September 30, 2006, Series 39 had released all payments of its capital contributions to the Operating Partnerships.

Series 40

The Fund commenced offering BACs in Series 40 on February 1, 2001. Offers and sales of BACs in Series 40 were completed on July 31, 2001. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 16 Operating Partnerships in the amount of $19,033,519 as of September 30, 2006. In addition, the Fund committed and used $578,755 of Series 40 net offering proceeds to acquire limited partnership equity interests in limited liability companies, which are the general partner of other operating limited partnerships, which own or are constructing, rehabilitating or operating apartment complexes.

During the quarter ended September 30, 2006, Series 40 did not record any releases of capital contributions. Series 40 has outstanding contributions payable to 2 Operating Partnerships in the amount of $8,694 as of September 30, 2006. The remaining contributions will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.

Series 41

The Fund commenced offering BACs in Series 41 on August 1, 2001. Offers and sales of BACs in Series 41 were completed on January 31, 2002. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 23 Operating Partnerships in the amount of $21,278,631. In addition, the Fund committed and used $195,249 of Series 41 net offering proceeds to acquire a limited partnership equity interest in a limited liability company, which is the general partner of other operating limited partnerships, which own or are constructing, rehabilitating or operating apartment complexes. As of September 30, 2006 1 of the properties has been disposed of and 22 remain.

During the quarter ended September 30, 2006, Series 41 did not record any releases of capital contributions. Series 41 has outstanding contributions payable to 1 Operating Partnership in the amount of $165 as of September 30, 2006. The remaining contributions will be released when the Operating Partnership has achieved the conditions set forth in its partnership agreement.

Series 42

The Fund commenced offering BACs in Series 42 on February 1, 2002. Offers and sales of BACs in Series 42 were completed on July 31, 2002. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 23 Operating Partnerships in the amount of $20,577,586.

During the quarter ended September 30, 2006, Series 42 did not record any releases of capital contributions. Series 42 has outstanding contributions payable to 7 Operating Partnerships in the amount of $775,421 as of September 30, 2006. Of the amount outstanding, $355,417 has been advanced or loaned to the Operating Partnerships. The loans and advances will be converted to capital and the remaining contributions of $420,004 will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.

Series 43

The Fund commenced offering BACs in Series 43 on August 1, 2002. Offers and sales of BCAs in Series 43 were completed in December 31, 2002. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 23 Operating Partnerships in the amount of $26,293,091. The Fund also committed and used $805,160 of Series 43 net offering proceeds to acquire limited partnership equity interests in limited liability companies, which are the general partner of other operating limited partnerships, which own or are constructing, rehabilitating or operating apartment complexes. In addition, the Fund committed and used $268,451 of net offering proceeds to acquire the general partner equity interest in all of the Operating Partnerships in Series 43.

During the quarter ended September 30, 2006, Series 43 did not record any releases of capital contributions. Series 43 has outstanding contributions payable to 6 Operating Partnerships in the amount of $490,522 as of September 30, 2006. Of the amount outstanding, $250,302 has been advanced or loaned to the Operating Partnerships. The loans and advances will be converted to capital and the remaining contributions of $240,220 will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.

Series 44

The Fund commenced offering BACs in Series 44 on January 14, 2003. Offers and sales of BACs in Series 44 were completed in April 30, 2003. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 10 Operating Partnerships in the amount of $20,248,519. In addition, the Fund committed and used $164,164 of Series 44 net offering proceeds to acquire the general partner equity interest in all of the Operating Partnerships in Series 44.

During the quarter ended September 30, 2006, Series 44 did not record any releases of capital contributions. Series 44 has outstanding contributions payable to 3 Operating Partnerships in the amount of $781,022 as of September 30, 2006. Of the amount outstanding, $196,604 has been advanced or loaned to the Operating Partnerships. The loans and advances will be converted to capital and the remaining contributions of $584,418 will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.

Series 45

The Fund commenced offering BACs in Series 45 on July 1, 2003. Offers and sales of BACs in Series 45 were completed on September 16, 2003. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 31 Operating Partnerships in the amount of $30,212,698. In addition, the Fund committed and used $302,862 of Series 45 net offering proceeds to acquire the general partner equity interest in all of the Operating Partnerships in Series 45.

During the quarter ended September 30, 2006, Series 45 recorded capital contribution releases of $234,600. Series 45 has outstanding contributions payable to 5 Operating Partnerships in the amount of $1,125,447 as of September 30, 2006. Of the amount outstanding, $567,543 has been advanced or loaned to the Operating Partnerships. The loans and advances will be converted to capital and the remaining contributions of $567,543 will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.

Series 46

The Fund commenced offering BACs in Series 46 on September 23, 2003. Offers and sales of BACs in Series 46 were completed on December 19, 2003. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 14 Operating Partnerships in the amount of $21,634,875. In addition, the Fund committed and used $228,691 of Series 46 net offering proceeds to acquire the general partner equity interest in all of the Operating Partnerships in Series 46.

During the quarter ended September 30, 2006, Series 46 recorded capital contribution releases of $526,425. Series 46 has outstanding contributions payable to 5 Operating Partnerships in the amount of $590,543 as of September 30, 2006. The remaining contributions will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.

Results of Operations

As of September 30, 2006 and 2005, the Fund held limited partnership interests in 515 and 513 Operating Partnerships, respectively. In each instance the apartment complex owned by the applicable Operating Partnership is eligible for the federal housing tax credit. Initial occupancy of a unit in each apartment complex which complied with the minimum set-aside test (i.e., initial occupancy by tenants with incomes equal to no more than a certain percentage of area median income) and the rent restriction test (i.e., gross rent charged tenants does not exceed 30% of the applicable income standards) is referred to as "Qualified Occupancy." Each of the Operating Partnerships and each of the respective apartment complexes are described more fully in the Prospectus or applicable report on Form 8-K. The general partner of the Fund believes that there is adequate casualty insurance on the properties.

The Fund incurred a fund management fee to Boston Capital Asset Management Limited Partnership in an amount equal to .5 percent of the aggregate cost of the apartment complexes owned by the Operating Partnerships, less the amount of various asset management and reporting fees paid by the Operating Partnerships. The fund management fees incurred for the quarter ended September 30, 2006 for Series 20,

Series 21, Series 22, Series 23, Series 24, Series 25, Series 26, Series 27, Series 28, Series 29, Series 30, Series 31, Series 32, Series 33, Series 34, Series 35, Series 36, Series 37, Series 38, Series 39, Series 40, Series 41, Series 42, Series 43, Series 44, Series 45 and Series 46 were $50,673, $52,232, $60,157, $58,002, $52,733, $64,852, $84,914, $61,291, $71,524, $79,457, $50,630, $67,229, $78,885, $43,491, $73,299, $57,090, $23,243, $48,716, $29,750, $26,550, $47,009, $56,270, $50,561, $70,445, $71,175, $89,465, and $58,035, respectively.

The Fund's investment objectives do not include receipt of significant cash distributions from the Operating Partnerships in which it has invested or intends to invest. The Fund's investments in Operating Partnerships have been and will be made principally with a view towards realization of federal housing tax credits for allocation to its partners and BAC holders.

Series 20

As of September 30, 2006 and 2005 the average Qualified Occupancy for the series was 100%. The series had a total of 22 properties at September 30, 2006, all of which were at 100% Qualified Occupancy.

For the period ended September 30, 2006 and 2005, Series 20 reflects net loss from Operating Partnerships of $(538,420) and $(399,488), respectively, which includes depreciation and amortization of $1,144,293 and $1,379,177, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 20 has invested in 4 Operating Partnerships (the "Calhoun Partnerships") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity, which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). The Operating Partnerships are Coushatta Seniors II Apartments, Floral Acres Apartments II, Harrisonburgh Seniors Apartments and Shady Lane Apartments. Coushatta Seniors II Apts, Floral Acres Apts, Harrisonburgh Seniors Apts and Shady Lane Apts sustained minor damage to shingles, roof vents, and sheetrock due to Hurricanes Rita and Katrina. All repairs for Coushatta Seniors II Apts were completed on January 25, 2006 and were paid for out of operations. All repairs for Shady Lane Apts were completed on September 29, 2005 and were paid for out of operations. Damage to Harrisonburg Seniors was minor and repairs were completed on July 17, 2006. Repairs were paid for out of operations. Damage to Floral Acres Apts II was listed as ma jor. Missing shingles were replaced for $8,348 and missing vinyl siding was replaced for $2,500. Repairs were paid for out of the reserve account. The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 112 apartment units in total. The low income housing tax credit available annually to Series 20 from the Calhoun Partnerships is approximately $143,240, which is approximately 3% of the total annual tax credit available to investors in Series 20.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the investment general partner that the Reimer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the investment general partner learned that the US Attorney intended to bring criminal charges against some members of the Reimer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 20 is not an investor. The investment general partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.

In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.

The investment general partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun, the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the investment general partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.

In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.

The operating general partner of Breeze Cove Limited Partnership entered into an agreement to sell the property and the transaction closed in March 2006. As part of the purchase agreement, the buyer is required to maintain the property as affordable housing through the end of the tax credit compliance period, and to provide a recapture bond to avoid the recapture of the tax credits that have been taken. After payment of the outstanding mortgage balance of approximately $1,828,883, the proceeds to the investment general partner were $512,415, all of which were allocated to Series 20. Of the total investment partnership proceeds received, $10,000 represents payment of outstanding reporting fees due to an affiliate of the investment partnership; approximately $14,501 represents reimbursement of expenses incurred related to the sale, which includes but is not limited to due diligence and legal; and $487,914 represents partial reimbursement for outstanding operating advances made by the investment partnershi p to the property. Annual losses generated by the Operating Partnership, which were applied against the investment general partner's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Advances made by the investment general partner that were not repaid from the sale proceeds totalled $954,317 and have been recorded as a loss on the sale of the Operating Partnership as of March 31, 2006. An additional gain on the sale of the Investment Limited Partner Interest of $7,016 was realized in the quarter ended June 30, 2006.

East Douglas Apartments Limited Partnership (East Douglas Apartments) has historically operated at or just below breakeven due to a combination of the low rent structure allowed by the state tax credit monitoring agency, the Illinois Housing Development Authority (IHDA), and high debt. The property operated at just below breakeven in 2004 and generated $12,406 in 2005.

Physical occupancy averaged 94% in 2004 and 93% in 2005. In the third quarter of 2006, occupancy was 93% and the year to date occupancy is 93%. The most recent rental rates and utility allowances released by Illinois Housing Development Authority resulted in an approximate 1% decrease in rents and 3-5% increase in the utility allowance. The property has expended cash for 2006; however, the deficit is due to capital needs expenses that may be reimbursed from the replacement and operating reserves. In addition, it should be noted that the majority of the deficit is associated with expenses incurred in the first half of 2006. The third quarter of 2006 has shown an improvement in cash flow. The mortgage, property taxes and insurance are all current. The operating general partner is attempting to refinance the first mortgage with Illinois Housing Development Authority to replace the high interest first mortgage loan held by Arbor Commercial Mortgage.

A physical needs assessment was completed in 2004 which enumerated many needed repairs, including tuck pointing, replacement or repair of the windows and deteriorating wooden trim. During the fourth quarter of 2005, the lender released

funds from the operating deficit reserve in the amount of $61,426 which covered much of the cost of the repairs. The Tax Increment Financing, a program that provides financing to blighted areas through bond issuance, was set to expire in May of 2006, but was extended by the City Council through the end of the City's Enterprise Zone Redevelopment Plan in 2009.

Parkside Housing, LP (Parkside Apartments) is a 54 unit family apartment complex in Avondale, Arizona. In March 2005, the operating general partner entered into an agreement to sell the property and the transaction closed in the second quarter of 2005. As part of the purchase agreement, the buyer is required to maintain the property as affordable housing through the end of the tax credit compliance period, and to provide a recapture bond to avoid the recapture of the tax credits that have been taken. After payment of the outstanding mortgage balance of approximately $960,068, the proceeds to the investment general partner were $441,525. Of the total investment general partner proceeds received, $12,000 represented payment of outstanding reporting fees due to an affiliate of the investment general partner. Of the remaining proceeds, the net distribution to investors was approximately $371,348. This represented a per BAC distribution of $.10. The total return to the investors was distributed based on the number of BAC held by each investor. The remaining proceeds of $58,177 was paid to BCAMLP or other related entities for fees and expenses related to the sale and partial reimbursement of amounts payable to affiliates. The breakdown of the amount paid to BCAMLP is as follows: $49,177 represented partial reimbursement for outstanding advances and asset management fees; and $9,000 represented reimbursement for expenses incurred related to the sale, which included legal and mailing costs. Annual losses generated by the Operating Partnership, which were applied against the investment general partner's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the reimbursement of overhead and expenses incurred for overseeing and managing the disposition of the property, has been recorded in the amoun t of $401,525 as of June 30, 2005 and an addition $19,000 in March 31, 2006.

Clarksville Estates, L.P. is a 30-unit property located in Clarksville, Missouri. Due to improved site management and occupancy, as of September 2006 the property operated above breakeven. Occupancy averaged 87% as of September 2006, with 26 of the 30 units occupied and the remaining four units in a rent-ready condition. Management improved their marketing efforts by holding a weekend open house which increased traffic to the property and yielded two approved applicants. The investment general partner will continue to work with management on maintaining improved occupancy and monitor operations closely until the property has stabilized. The mortgage, taxes, and insurance are all current.

Series 21

As of September 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 14 properties at September 30, 2006, all of which were at 100% Qualified Occupancy.

For the period ended September 30, 2006 and 2005, Series 21 reflects net loss from Operating Partnerships of $(889,582) and $(793,405), respectively, which includes depreciation and amortization of $455,479 and $442,370, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Atlantic City Housing Urban Renewal Associates, LP (Atlantic City Apartments) filed for protection under Chapter 11 of the Bankruptcy Code in June of 2001 and remains in bankruptcy at this time. A Plan of Reorganization propounded by a large bondholder was confirmed in September 2003. That Plan included the bondholders receiving a new issue of bonds at $0.60 per dollar of the existing principal balance ($2.31 million of new debt) as well as a partial paydown funded by a $400,000 payment by the withdrawing general partner and a $500,000 unsecured loan from the investment general partner.

The Plan confirmation was not immediately followed by an effective date, and did not occur then, as is typical in most bankruptcy cases. Numerous issues among the large number of constituents with disparate interests resulted in a delay, which was prolonged until July 2006. During this period, the Plan proponent effectively took control of and managed the property through a management company that was engaged in late 2004. Despite significant improvements to the physical condition of the property, property expenses (especially security, maintenance and insurance) remained stubbornly high and the property was not able to generate cash flow as projected under the Plan.

For the first half of 2006, despite occupancy in excess of 90% both net operating income and cash flow were negative ($123,893). (Cash flow equals net operating income because the partnership is not currently making debt payments.) This performance was not sufficient to service the debt contemplated under the Plan of Reorganization. Starting in the first quarter of 2006, the investment general partner began raising its concern that, given this performance, the Plan was no longer feasible. The concern was raised first with the proponent and later before the court. In June 2006, HUD threatened to terminate the Housing Assistance Payment contract supporting the property if the closing/effective date did not occur within 30 days. HUD's action caused the property management company to resign. At the same time, the prospective indenture trustee withdrew (although the existing trustee expressed a willingness to take over that role again).

At a hearing in July 2006, the Judge acknowledged that the proponent's Plan was unlikely to become effective and the parties began discussing immediate steps to ensure stability at the property. On September 6, 2006, the Court converted the case from Chapter 11 to Chapter 7. Under Chapter 7, a trustee is appointed to oversee the sale of the property. Depending upon when the sale occurs, the investment general partner could lose the small amount of remaining tax credits that remain and experience recapture of the accelerated credits as early as fourth quarter of 2006.

Centrum-Fairfax I, LP (Forest Glen at Sully Station, Phase I) is a 119 unit property located in Centrville, VA. The property continues to incur operating deficits due to low occupancy. The average occupancy through the fourth quarter of 2005 was 71%. In the first quarter of 2006 average occupancy was 43% and in the second quarter the physical occupancy increased to 61%. In the third quarter 2006, physical occupancy further increased to 65%. The operating general partner is in the process of reconfiguring the property to have only 83 units, which would reduce the number of 1 bedroom units from 100 to 29 while increasing the number of two bedroom units from 19 to 55. The conversion of the units started in early June 2006 and it is anticipated to be complete by mid-October 2006. The funding to complete the work will come from the Virginia Housing Authority in the amount of $580,000. The operating general partner continues to fund operating deficits and through the end of 2005 funded $837,502.

Pumphouse Crossing II, LP (Pumphouse Crossing II Apartments) is a 48 unit family property located in Chippewa, Wisconsin. The property operated with an average occupancy of 95% in 2005. Through the third quarter of 2006, the average occupancy was 94%. Operating expenses are below the investment general partner's state average. Although occupancy is high and expenses remain reasonable, low rental rates in the area prevented the property from achieving breakeven operations through the third quarter of 2006. The management company continues to market the available units by working closely with the housing authority, and by continuing various marketing efforts to attract qualified residents. The operating general partner continues to financially support the Operating Partnership. The mortgage, taxes, insurance and payables are current.

Black River Run, LP (River Run Apartments) is a 48 unit, family property located in Black River Falls, Wisconsin. The property operated with an average occupancy of 90% for the year 2005. Occupancy has been consistent with the prior year through the third quarter 2006. Even though operating expenses are below the investment general partner's state average, low rental rates in the area prevented the property from achieving breakeven operations through the third quarter of 2006. The management agent continues to market the available units by working closely with the housing

authority and continuing various marketing efforts to attract qualified residents. The operating general partner continues to financially support the Operating Partnership. The mortgage, taxes, insurance and payables are current.

Lookout Ridge LP (Lookout Ridge Apts.) is a 30 unit development located in Covington, KY. The property is operating below breakeven due to high operating expenses and low occupancy, which relate to a lack of subsidy and unit turnover costs. Throughout the third quarter of 2006 the property has maintained 93% average occupancy. Part-time management and subcontracted maintenance services have assisted in the lowering of operating costs. The investment general partner will continue to work with the operating general partner to identify ways in which to improve the overall operations of the property. In addition, management continues to work with Cincinnati Development to obtain financing to cover the cost of the necessary repairs to improve overall curb appeal of the property. The property's mortgage and real estate taxes are current. To date, the operating general partner has funded $296,613 in deficits. The property's compliance period ends in 2010.

Pinedale II, LP (Pinedale Apartments II) is a 60 unit, family property located in Menomonie, Wisconsin. The property operated with an average occupancy of 91% in 2005. Occupancy has been consistent with the prior year through the third quarter of 2006. The property's operating expenses are below the investment general partner's state average. Despite occupancy in the 90%s, low rental rates in the area prevented the property from achieving breakeven operations through the third quarter of 2006. The management agent continues to market the available units by working closely with the housing authority and continuing various marketing efforts to attract qualified residents. The operating general partner continues to financially support the partnership. The mortgage, taxes, insurance and payables are current.

Series 22

As of September 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 29 properties at September 30, 2006, all of which were at 100% Qualified Occupancy.

For the period ended September 30, 2006 and 2005, Series 22 reflects net loss from Operating Partnerships of $(432,407) and $(661,181), respectively, which includes depreciation and amortization of $814,987 and $971,542, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Elks Tower Apartments, LP (Elks Tower Apartments) is a 27 unit development located in Litchfield, IL. The property suffered a downturn in operations in 2004 with occupancy averaging 79%. In 2005 this trend reversed and occupancy finished the year averaging 89%. However, through September of 2006, occupancy averaged 83% The reasons for low occupancy include job relocations, new competition to the area, and older residents leaving for health reasons. The operating general partner has made changes this year with increased marketing by advertising with new signage and increasing newspaper advertisements that cover three counties. The operating general partner is also using tenant referral incentives to help increase the occupancy. In the last three months occupancy has shown a steady increase, averaging 91%. Expenses through the second quarter of 2006 are 14% lower compared to 2005. Third quarter results have been requested. The operating general partner expects expenses to continue to decrease due to m any one time maintenance expenses which occurred in 2005. Taxes and the mortgage are current for this property.

Black River Run, LP (River Run Apartments) is a 48 unit, family property located in Black River Falls, Wisconsin. The property operated with an average occupancy of 90% for the year 2005. Occupancy has been consistent with the prior year through the third quarter 2006. Even though operating expenses are below the investment general partner's state average, low rental rates in the area prevented the property from achieving breakeven operations through the third quarter of 2006. The management agent continues to market the available units by working closely with the housing authority and continuing various marketing efforts to attract qualified residents. The operating general partner continues to financially support the Operating Partnership. The mortgage, taxes, insurance and payables are current.

Bayou Crossing, LP (Bayou Crossing Apartments) is a 290 unit property located in Hillsborough County, Florida. During the early part of 2005, management detected an increase in lease violations as well as an increase in non-payment of rent. Residents who were unable to meet their financial obligations and were violating management regulations were evicted. Additional expenses associated with the surge of evictions and unit turnover preparations have caused the property to experience an increase in maintenance and administrative costs. As of the third quarter of 2006, occupancy maintains an average of 97%. Management continues to effectively enforce stringent resident screening policies by strengthening the quality of its resident base. Economic occupancy has improved from 83% in first quarter to 93% in the third quarter. Marketing efforts continue to generate traffic and it is management's intent to taper rental concessions by the end of 2006. The property's real estate taxes, insurance and mortgage payments are current. The operating deficit guarantee is unlimited until December 2011.

Roxbury Veterans Housing, LP (Highland House) is a 14-unit property located in Roxbury, Massachusetts. The 2005 audit showed that the property expended cash of ($45,385) and that the first mortgage on the property was in default, triggering a default with the second mortgage. The default is related to the property failing to fully fund replacement reserves due to a lack of cash. Reported occupancy for the first three quarters of 2006 is 91%, a slight improvement from the average 2005 occupancy of 88%. The operating general partner has a guarantee that is unlimited in time and amount and continues to fund operating deficits as necessary.

Kimbark 1200 Associates, LP (Kimbark 1200 Apartments) is a 48-unit family development located in Longmont, CO. The property is suffering from low occupancy due to a weak rental market. In addition, the property has mostly three-bedrooms (42 of the 48) and these units have comparable rents to three-bedroom single-family rental homes, which are more desirable. The property is also located in a rough neighborhood, with an inferior school system, making it difficult to market to families with children. The site manager developed a good relationship with the local police who have initiated nighttime patrols. To attract applicants, management continues to offer rental concessions and resident referral fees. Banners and signage are being redesigned for increased visibility; a model unit is being prepared for showing to applicants; and advertising on the internet, and in adjacent towns has increased. In the third quarter of 2006, average occupancy was 85%, which is consistent with the prior quarter average o f 87%. In April 2006, the Longmont Housing Authority expressed an interest in acquiring the operating general partner's interest. The Housing Authority, as a public non-profit entity, has more resources available to improve the property's operations, including rent subsidies and low-interest permanent financing. The Longmont Housing Authority is currently reviewing the Operating General Partners' proposal to sell their interest at the same time. The Investment General Partner will work closely with the Operating General Partner in evaluating the conditions of the proposed transactions. The Operating General Partner continues to fund all operating deficits and accounts payable are current. All taxes, insurance and mortgage payments are current.

Edmond Properties, LP (Chapel Ridge of Edmond) is a 160-unit property located in Edmond, OK. Despite an average occupancy of 83% in 2005 the property was able to operate above breakeven. The average occupancy through the third quarter of 2006 was 85% and the property continues to operate above breakeven. All taxes, insurance and mortgage payments are current. The investment general partner will continue to monitor the property to ensure that occupancy stabilizes and the property continues to operate above breakeven.

Series 23

As of September 30, 2006 and 2005 the average Qualified Occupancy for the series was 100%. The series had a total of 22 properties at September 30, 2006, all of which were at 100% Qualified Occupancy.

For the period ended September 30, 2006 and 2005, Series 23 reflects net loss from Operating Partnerships of $(399,276) and $(759,706), respectively, which includes depreciation and amortization of $614,101 and $794,767, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 23 has invested in 2 Operating Partnerships (the "Calhoun Partnerships") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity, which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). The Operating Partnerships are Mathis Apartments Ltd and Orange Grove Seniors. The affordable housing properties owned by the Calhoun Partnerships are located in Texas and consist of approximately 56 apartment units in total. The low income housing tax credit available annually to Series 23 from the Calhoun Partnerships is approximately $73,077, which is approximately 2% of the total annual tax credit available to investors in Series 23.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the investment general partner that the Reimer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the investment general partner learned that the US Attorney intended to bring criminal charges against some members of the Reimer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 23 is not an investor. The investment general partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.

In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.

The investment general partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in

which Reimer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the investment general partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.

In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.

Bayou Crossing, LP (Bayou Crossing Apartments) is a 290 unit property located in Hillsborough County, Florida. During the early part of 2005, management detected an increase in lease violations as well as an increase in non-payment of rent. Residents who were unable to meet their financial obligations and were violating management regulations were evicted. Additional expenses associated with the surge of evictions and unit turnover preparations have caused the property to experience an increase in maintenance and administrative costs. As of the third quarter of 2006, occupancy maintains an average of 97%. Management continues to effectively enforce stringent resident screening policies by strengthening the quality of its resident base. Economic occupancy has improved from 83% in first quarter to 93% in the third quarter. Marketing efforts continue to generate traffic and it is management's intent to taper rental concessions by the end of 2006. The property's real estate taxes, insurance and mortgage payments are current. The operating deficit guarantee is unlimited until December 2011.

Mid City Associates (Mid City Apartments) is a 58 unit, scattered site family property located in Jersey City, NJ. Through the third quarter of 2006 the property has an occupancy rate of 98%. The property is projected to have a positive cash flow in 2006, and through third quarter 2006 the property generated $77,177 of cash. A 3% rent increase was approved by the state agency when leases expire. In 2006 it is estimated about 75% of the units will gradually shift to the new rents. This will increase revenues about $15,000 in 2006. The mortgage and taxes are current.

South Hills Apartments, LP (South Hills Apartments) is a 72 unit, family property located in Bellevue, Nebraska. The property operated with an average occupancy of 77% in 2005. The average occupancy increased to 86% in third quarter of 2006. There are few qualified prospective residents that can afford the tax credit rents without obtaining rental assistance. Currently there is limited assistance as evidenced by a nine-month waiting list at the local housing authority. The operating general partner completed another site management change in July 2006. They are currently offering a $100/month rent reduction for the first 12 months for all new tenants. It has come to the investment general partner's attention that unresolved tax credit compliance issues accumulated, including the receipt of 8823s. Over the past three years, there have been five different managers at the property. This inconsistency has contributed to the cash flow and compliance problems. Current tenant files are being audited for tax co mpliance standards. After reviewing prior year 8823s, management was able to correct all the issues. Nebraska Housing Authority has issued corrected 8823s for 2002, 2003 and 2004. Per an agreement with the operating general partner, the management company (an affiliate of the general partner) is deferring all fees until

operations improve. The operating general partner continues to fund the operating deficits, as needed. The property's mortgage, taxes and insurance are all current.

Sacramento SRO, LP (La Pensione K Apartments), is a 129-unit single-room occupancy property, for special needs residents, located in Sacramento, CA. In 2004, the property operated below breakeven, despite strong occupancies, due to high operating expenses. In 2004, the management contract was renewed and restructured, allowing the management company to chargeback to the partnership various administrative expenses, including monthly accounting fees for bookkeeping. This resulted in an increase in administrative expenses. Also, some extraordinary expenses were recorded, such as bad debt for previous years, and tax lien payments. The tax lien was discovered upon follow-up with the operating general partner extraordinary penalties recorded in the audit. According to the city of Sacramento, this lien was for the period between tax exemption application and receipt of tax exemption status. The operating general partner thought the period was covered by the exemption. The amount of the tax lien is approx imately $95,190 ($63,249 for actual taxes due, the balance for penalties). The operating general partner is working with the city to get this tax lien overturned. The operating general partner has retained legal counsel to represent them with regards to this matter. There has been no resolution to date. In the meantime, the partnership continues to make payments in accordance with a payment plan as required by the city to avoid being declared in default. In 2005, the management company made efforts to reduce payroll and maintenance expenses. In the first quarter of 2006, this property operated at a surplus with average physical occupancy of 98%. Through the third quarter 2006, the property continues to operate well, with the average occupancy of 97%. The property's mortgage, taxes and insurance are all current.

Edmond Properties, LP (Chapel Ridge of Edmond) is a 160-unit property located in Edmond, OK. Despite an average occupancy of 83% in 2005, the property was able to operate above breakeven. The average occupancy through the third quarter of 2006 was 85% and the property continues to operate above breakeven. All taxes, insurance and mortgage payments are current. The investment general partner will continue to monitor the property to ensure that occupancy stabilizes and the property continues to operate above breakeven.

Kimbark 1200 Associates, LP (Kimbark 1200 Apartments) is a 48-unit family development located in Longmont, CO. The property is suffering from low occupancy due to a weak rental market. In addition, the property has mostly three-bedrooms (42 of the 48) and these units have comparable rents to three-bedroom single-family rental homes, which are more desirable. The property is also located in a rough neighborhood, with an inferior school system, making it difficult to market to families with children. The site manager developed a good relationship with the local police who have initiated nighttime patrols. To attract applicants, management continues to offer rental concessions and resident referral fees. Banners and signage are being redesigned for increased visibility; a model unit is being prepared for showing to applicants; and advertising on the internet and in adjacent towns has increased. In the third quarter of 2006, average occupancy was 85%, which is consistent with the prior quarter average of 87%. In April 2006, the Longmont Housing Authority expressed an interest in acquiring the operating general partner's interest. The Housing Authority, as a public non-profit entity, has more resources available to improve the property's operations, including rent subsidies and low-interest permanent financing. The Longmont Housing Authority is currently reviewing the operating general partners' proposal to sell their interest at the same time. The investment general partner will work closely with the Operating General Partner in evaluating the conditions of the proposed transactions. The Operating General Partner continues to fund all operating deficits and accounts payable are current. All taxes, insurance and mortgage payments are current.

Series 24

As of September 30, 2006 and 2005 the average Qualified Occupancy for the series was 99.9%. The series had a total of 24 properties at September 30, 2006. Out of the total 23 were at 100% Qualified Occupancy.

For the period ended September 30, 2006 and 2005, Series 24 reflects net loss from Operating Partnerships of $(334,507) and $(247,446), respectively, which includes depreciation and amortization of $662,906 and $670,589, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 24 has invested in Zwolle Partnership, A LA Partnership in Commendam (the "Calhoun Partnership") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). Zwolle Partnership (Lakeway Apts) sustained major damage to shingles, roof vents and windows due to Hurricane Rita. Roofing has been repaired for $41,940 and a bid from Burches Glass was submitted to the insurance company for $2,797 for replacement of windows. The repairs have been completed as of October 18, 2006 and insurance proceeds totaling $44,736.64 have been received. The affordable housing property owned by the Calhoun Partnership is located in Louisiana and consist of approximately 32 apartment units in total. The low income housing tax credit available annually to Series 24 from the Calhoun Partnership is approximately $39,393, which is approximately 1% of the total annual tax credit available t o investors in Series 24.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the investment general partner that the Reimer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the investment general partner learned that the US Attorney intended to bring criminal charges against some members of the Reimer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 24 is not an investor. The investment general partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.

In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.

The investment general partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the investment general partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.

In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.

Elm Street Associates, Limited Partnership (Elm Street Apartments) is located in Yonkers, New York. The neighborhood has been a difficult one in which to operate due in part to high crime. Almost all tenants have some public subsidy, making this a very management-intensive property. Poor tenancy has historically resulted in operating deficits. Management issues, including poor rent collections and deferred maintenance, have negatively impacted the property. The property is operating below breakeven due to the vacancies and high operating expenses. Occupancy has dropped in the third quarter of 2006 with September occupancy at 77%. Management is looking to work with a local agency called Cluster Housing which assists people in transitioning from being homeness. They also work with several different local brokers to get tenant referrals. The operating general partner has instituted the Nodine Hill program which is housed in a community building. The program offers neighborhood residents access to aft er school children's programs, job training for adults and teens, and work services programs for adults. Operating expenses are running higher than budgeted as a result of operating general partner's program to re-stabilize the property. Expense levels were expected to normalize once the transition and re-stabilization was complete; however, re-stabilization is taking longer, and proving more difficult, than expected. The operating general partner met with the tax assessor to request some relief in property taxes. As of June 2006 the taxes will be reduced to and fixed at $600 per unit resulting in an annual savings of $27,567. They have also attempted to negotiate with the lender for some debt service relief, but have not been successful. The mortgage, taxes, insurance and required reserves are all current; however, the level of payables is high. The operating general partner has funded the operating deficits by deferring management fees, and infusions of cash. The investment general partner had a meetin g with the operating general partner to further discuss the project's viability. The operating general partner restated their commitment to the property and expressed a willingness to continue funding deficits until the property stabilizes. They have a significant investment in the community in which the property is located, and all attempts to stabilize the property are geared for the long term. The City of Yonkers is currently undergoing significant growth. A casino has opened in the Yonkers Racetrack, and a water shuttle service has just come on line that connects to the financial district in Manhattan. A minor league ballpark is in development and will be built in close proximity to Elm Street. It is hoped that this growth will make this neighborhood a better place to live. In the short term, the operating general partner is advertising on Craig's list, holding open houses for homeless families, and exploring

various programs to lease units. It is also offering incentives, such as one month free rent when signing a one year lease. The investment general partner will continue to monitor this Operating Partnership until property operations have stabilized.

Jeremy Associates, LP (Coopers Crossing Apartments) is a 93-unit family development located in Las Colinas, Texas. Average occupancy through the third quarter of 2006 was 95%. The property is operating below breakeven due to high operating costs.

The property experiences high operating costs attributed to foundation and stress cracks identified in an engineer's report issued in 2003. The report revealed foundation movement in five buildings. Between 2001 and 2003 a total of $61,310 in foundation work was completed. In 2004 capital expenditures reflect monies for immediate repair to rebuild three stair towers and two landings related to foundation movement at total cost of $23,140; and metal perimeter fence repair on the west side of the community that re-braced due to ground movement and car damage at total cost of $5,290 were completed in March 2004. Other capital work consisted of carpet replacements, vinyl replacement, boiler repairs, a new heat exchanger and swimming pool repair work related to code changes. The overall estimate to complete the foundation work and address the interior issues as a result of the movement was estimated at $170,000. Several emergency repairs were needed to rebuild three deteriorating stair towers, resulting f rom foundation movement. The operating general partner continues to monitor movement in the five buildings identified in the engineer's report and address the issues as they presented. In 2006, $111,300 in repairs were included in the budget to address the structural issues; however, to date the high operating expenses are not allowing for the cash to be available to make the improvements. A soil test was completed in September 2006 to address the shifting buildings. Once the results from the soil test are received, the operating general partner will determine what course of action needs to be taken to fix the shifting buildings. The operating general partner has stated they fund the cost of necessary repairs to the foundations and buildings once the proper course of action is determined. The investment general partner continues to visit the property and review the work completed to date. Discussions regarding the future improvements with the operating general partner are ongoing. The investment general partner will continue to work with the operating general partner through the completion of the improvements and the reduction of the operating expenses. The mortgage, trade payables, property taxes and insurance are current.

Los Lunas Apartments, LP (Hillridge Apartments), located in Los Lunas, NM, is a 38-unit property. The operating general partner felt the management company was not overseeing the property sufficiently and stepped in as the management agent in June 2005. Since the new management has taken over, operations have improved through the fourth quarter of 2005 with average occupancy of 87%, however, the property was not able to breakeven. In the first quarter of 2006, average physical occupancy further improved to 96%. However, in the second quarter 2006, due to some eviction, average occupancy decreased to 87%. In the third quarter average physical occupancy further decreased to 86%. According the operating general partner, the occupancy downturn is the result of natural cycles that was noticed from time to time at the properties. Physical occupancy is expected to stabilize activity in the fourth quarter 2006. The operating general partner has also renegotiated the laundry contract with the vendor and all of the machines were upgraded. The property has received funds from the vendor for re-signing the contract.

New Hilltop Apartments, Phase II (Hilltop Apartments) is a 72-unit property located in Laurens, SC. Industrial decline in the area has led to a dwindling population base from which to draw qualified residents. Only 21 of the 72 units have rental assistance. Consequently, the property has trouble competing with properties that receive full rental assistance. The reasons for the cash flow deficit include; declining occupancy, insufficient rental rates and additional replacement reserve funding per the Rural Housing workout plan. Throughout the third quarter of 2006, the property has further declined to 73% average occupancy from 82% during the second quarter. Management will continue to market through local media and civic organizations. The mortgage, taxes, insurance and payables to non-related entities are current. The operating general gartner's guarantee is unlimited in time and amount, with the compliance period for this property ending in 2009.

Century East IV, LP (Century East IV Apartments) is a 24 unit development located in Bismarck, ND. In 2005 the property operated with an average occupancy of 91%, and was able to achieve breakeven operations. Through the third quarter of 2006 the average occupancy was to 84%. Average occupancy is showing improvement as the third quarter average was 92%. Dispite the uptrend in occupancy, the property still has year to date operations below breakeven. The property is located in a highly competitive area and in an attempt to maintain occupancy levels the operating general partner lowers rental rates whenever occupancy levels drop below 90%. The investment general partner will continue to work with the operating general partner to monitor operations and occupancy at the property. The operating general partner continues to fund all operating deficits, despite the expiration of their guarantee. There are no deferred maintenance items at this time. The mortgage, trade payables, property taxes, and insuranc e are current.

Century East V, LP (Century East V Apartments) is a 24 unit development located in Bismarck, ND. In 2005 the property operated with an average occupancy of 90% and operated slightly below breakeven. Through the third quarter of 2006 average occupancy was 86%. The property is operating slightly above breakeven. The property is located in a highly competitive area and in an attempt to maintain occupancy levels the operating general partner lowers rental rates whenever occupancy levels drop below 90%. The investment general partner will continue to work with the operating general partner to monitor operations and occupancy at the property. The operating general partner continues to fund all operating deficits, despite the expiration of their guarantee. There are no deferred maintenance items at this time. The mortgage, trade payables, property taxes, and insurance are current.

North Hampton Place, LP (North Hampton Place Apartments) is a 36-unit family property located in Columbia, Missouri. In February 2006, there was a fire in

one unit that completely destroyed the unit. There were no injuries reported from the fire. The unit required a complete rehab with repairs totaling $25,000. The repairs were funded with proceeds from the insurance claim filed by management. As of May 2, 2006, all repairs were made and the unit was ready to be occupied. After higher than normal turnover in the first quarter of 2006, occupancy dropped to an average of 82% for the quarter. Management increased the frequency of their newspaper advertising and occupancy improved to average 89% for the second and third quarters of 2006. The mortgage, property taxes, and insurance are current.

Centenary Housing, LP. (Centenary Tower Apartments) is a 100 unit senior property located in St. Louis, MO. The partnership expended cash of $150 per unit in 2005, due to operating expenses which exceeded the state average by 25%. Through the third quarter of 2006, operating expenses have been brought in line with the state average. Operating expenses continue to be driven by administrative, maintenance and utilities expenses, and bad debt. The investment general partner continues to work with management to sustain reductions in administrative and maintenance costs, to improve collections, and to promote energy efficient practices. Decreased operating expenses have allowed the partnership to generate annualized cash of $36 per unit through the third quarter of 2006. All real estate tax, insurance and mortgage payments are current. The operating general partner's obligation to fund operating deficits is unlimited in time and amount.

New Hilltop Apartments, Phase II (Hilltop Apartments) is a 72-unit property located in Laurens, SC. Industrial decline in the area led to a dwindling population base from which to draw qualified residents. Of the 72 units, only 21 receive rental assistance. Consequently, the property has trouble competing with properties that receive full rental assistance. The reasons for the cash flow deficit include declining occupancy, insufficient rental rates and additional replacement reserve funding per the Rural Housing workout plan. The property averaged 82% during the second quarter. Management continues to market through local media and civic organizations. Mortgage, taxes, insurance and payables to non-related entities are current. The operating general partner's guarantee is unlimited in time and amount, with the compliance period for this property ending in 2009.

Series 25

As of September 30, 2006 and 2005 the average Qualified Occupancy for the series was 99.9%. The series had a total of 22 properties at September 30, 2006. Out of the total 21 were at 100% Qualified Occupancy.

For the period ended September 30, 2006 and 2005, Series 25 reflects net loss from Operating Partnerships of $(548,865) and $(541,086), respectively, which includes depreciation and amortization of $967,722 and $1,033,609, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Ohio Investors, LP (Bancroft Apartments) is a 93-unit property located in Dayton, Ohio. The property's original mortgage interest rate of 8.21% has resulted in a high debt service. The property has also suffered from increased bad debt, maintenance expenses, and real estate taxes. The operating general partner applied to refinance the mortgage with a rate that has been locked as of July 20, 2006 with a 6.03% floor. The operating general partner and investment general partner agreed on the more favorable terms. The operating general partner and investment general partner were also able to negotiate exit strategy through a Partnership Agreement amendment in the third quarter of 2006. If the operating general partner can close the loan in the fourth quarter of 2006 at the floor interest rate, the new debt service will reduce the annual debt service in excess of $90,000. The loan is scheduled to close in the fourth quarter of 2006, if loan document language acceptable to the investment general partner can be negotiated. The property's average occupancy rate was 95% in 2005, with an audited operating deficit of ($20,596). Occupancy averaged 93% through the third quarter of 2006, with an unaudited operating deficit of ($18,846). The operating general partner will continue to fund any deficits as needed. Once the lower debt service is in place from the refinance, the property should break even in 2007.

Sutton Place Apartments, LP (Sutton Place Apartments) is a 360 unit apartment complex located in Indianapolis, Indiana. In January of 2005, the partnership underwent a change in operating general partner, which was accompanied by a change in management. Despite average occupancy of 93% for the year, the property did not break even in 2005 due to high operating expenses. Operating expenses averaged $4,735 per unit in 2005, 14% above the state average. The new operating general partner and management company continue to work to leverage their considerable strengths in the Indianapolis market in order to lower operating expenses, which have declined through July of 2006 and are now 10% higher than the state average. Occupancy has averaged 92% through September of 2006, slightly below the 93% average achieved in 2005. Operations through July of 2006 have yielded an annualized cash expenditure of $100 per unit due to operating expenses which remain high. Operating reports for August and September of 2006 have been requested from the operating general partner and are presently being prepared. The operating general partner continues to fund operating deficits. The operating general partner's obligation to fund operating deficits is limited to $150,000 in subordinate loans outstanding at any one time.

M.R.H., LP (The Mary Ryder Home), a 48 unit property located in St. Louis, MO, received a 60-day letter issued by the IRS proposing to reduce the amount of low income housing tax credits allowable because it asserts that certain fees and other expenditures were not includible in the eligible basis of the property. The 60-day letter was the result of an IRS audit of the Operating Partnership's books and records. As a result of their audit, the IRS proposed an adjustment that would disallow approximately 18% of past and future tax credits. The adjustment would also include interest. The investment general partner and its counsel, along with the

operating general partner and its counsel, filed an appeal on June 30, 2003 and continued negotiations with the IRS Appeals Office.

On March 23, 2004, the Operating Partnership received a Notice of Final Partnership Administrative Adjustment denying the appeal of June 30, 2003. The operating partnership had the opportunity to challenge the denial and petition the tax court.

On June 22, 2004, the operating general partner and its counsel filed a petition in tax court for the tax years ending 2000 and 2001. The investment general partner and its counsel continued to monitor the court proceedings.

Final Closing Agreements were issued in October 2005. Under the agreement, the general partner reached a resolution with the IRS so the adjustments to the tax credits and depreciation expense will be made only for the tax years 2005 and 2006, avoiding amending tax returns already filed for the years 2000 and 2001.

On November 23, 2005 the United States Tax Court issued final agreements reporting no changes for the tax years ending 2000 and 2001. Additionally, on December 28, 2005 the Internal Revenue Service issued a Partial Agreement, Closing Agreement on Final Determination Covering Specific Matters for the years ending 2005 and 2006. Under this agreement the credits and depreciation expense adjustments applicable to 2000 and 2001 will be made in the years ending in 2005 and 2006 to avoid amending tax returns for the years 2000 and 2001. M.R.H. lost approximately .18% $52,688 in tax credits and $16,436 in depreciation expense for each year 2005 and 2006. The 2000 and 2001 audits are closed.

Rose Square, LP (Rose Square Apartments) is an 11 unit property located in Connellsville, PA. The property was operating with deficits caused by low occupancy. The property operated above breakeven in 2005 due to increased occupancy and revenues, combined with operating expenses that are below the state average. The site manager has focused on maintaining communication with the housing agency and hosting neighborhood events, helping to increase interest in the property. The property is operating above breakeven through the third quarter of 2006. Although occupancy showed improvement through the second quarter of 2006, occupancy dropped slightly in the third quarter averaging 80% with 3 vacant units in September. Two tenants moved out due to affordability reasons. The site manager is confident to have the 3 vacant units rented by October 31, 2006. In order to improve cash flow and help the property stabilize, Pennsylvania Housing Finance Agency has granted a request to defer replacement reserve depos its for the remainder of 2006.

Century East II Apartments, LP (Century East II Apartments) is a 24 unit property located in Bismarck, ND. During 2005 the property operated with an average occupancy of 87% and operated below breakeven. Through the third quarter of 2006 occupancy improved to average 92% and the property operated above breakeven. The property is located in a highly competitive area. The investment general partner will continue to work with the operating general partner to monitor operations and occupancy at the property. The operating general partner continues to fund all operating deficits, despite the expiration of their guarantee. Although the property has had low occupancy, there are no deferred maintenance items at this time. The mortgage, trade payables, property taxes, and insurance are current.

Series 26

As of September 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 45 properties at September 30, 2006, all of which were at 100% Qualified Occupancy.

For the period ended September 30, 2006 and 2005, Series 26 reflects net loss from Operating Partnerships of $(783,897) and $(550,947), respectively, which includes depreciation and amortization of $1,350,210 and $1,426,023, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 26 has invested in 6 Operating Partnerships (the "Calhoun Partnerships") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). The operating partnerships are Beauregard Apartments Partnership, Brookhaven Apartments Partnership, Butler Estates, Cameron Apartments Partnership, Southwind Apartments and TR Bobb Apartments, A LDHA. Beauregard Apts, Brookhaven Apartments and TR Bobb sustained minor damage to shingles, roof vents, window screens and fences due to Hurricane Rita. All repairs for Beauregard Apts were completed in the first quarter of 2006 and were paid for out of operations. There were no reports of hurricane damage at Brookhaven Apartments. TR Bobb has repaired the shingles and bids to repair the fence have been approved and will be paid for out of reserves. The cost of the repairs will cost $8,128. Southwind Apts sustained major damage to shing les, siding, decking and pilings missing from buildings due to Hurricane Rita. All repairs for Southwind Apts were completed in January 2006 and were covered by insurance proceeds totaling $24,150.48.

Cameron Apartments, a 40 apartment complex was completely destroyed by Hurricane Rita and all residents evacuated safely. The National Flood Insurance Program has underwritten the project a complete loss. Insurance proceeds totaling $1,575,000 have been received and are being held by Fannie Mae in an interest bearing account until the Investment General Partner gives approval for distribution of the funds. The Investment General Partner is working with the Louisiana Housing Finance Agency to obtain IRS approval for; (1) permission to move the complex to another site within the Gulf Opportunity Zone; (2) permit the Partnership to file a tax credit application to secure additional tax credits for the costs to rebuild; and (3) waiver of any and all tax credit recapture penalties. In addition, the Investment General Partner is analyzing various options to maximize the return to the Investment Partnership and avoid tax credit recapture. The affordable housing properties owned by the Calhoun Partnerships a re located in Louisiana and consist of approximately 191 apartment units in total. The low income housing tax credit available annually to Series 26 from the Calhoun Partnerships is approximately $617,547, which is approximately 13% of the total annual tax credit available to investors in Series 26.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the investment general partner that the Reimer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the investment general partner learned that the US Attorney intended to bring criminal charges against some members of the Reimer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 26 is not an investor. The investment general partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.

In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.

The investment general partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the investment general partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.

In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.

Country Edge, LP (Country Edge Apts.) is a 48 unit property located in Fargo, North Dakota. During 2005 the property operated with an average occupancy of 88% and as a result operated below breakeven. Average occupancy through the third quarter of 2006 was 76% and the property continued to operate at a deficit. Occupancy is improving, the third quarter average was 88%. The property's occupancy issues arose because of issues surrounding a large refugee population in the area. A number of refugees had rented apartments after meeting the resident selection criteria. However, a few of the residents had criminal backgrounds that were not exposed during the typical background check. Management has been evicting problem and non-paying residents; however, due to overbuilding in the Fargo, North Dakota area, units are remaining vacant. The operating general partner/management company continues to offer rent concessions and rate reductions as a rental incentive. Security has been stepped up at the property and Lutheran Social Services is counseling the existing population to help curb any issues. The investment general partner will continue to work with the operating general partner to stabilize occupancy. The operating general partner continues to fund all operating deficits, despite the expiration of their guarantee. Although the property has had low occupancy, there are no deferred maintenance items at this time. The mortgage, trade payables, property taxes, and insurance are current.

Grandview Apartments, LP (Grandview Apts.) is a 36 unit property located in Fargo, North Dakota. During 2005 the property operated with an average occupancy of 89% and as a result operated below breakeven. Average occupancy through the third quarter of 2006 was 80% and the property continued to operate at a deficit. Overbuilding and a soft rental market in the Fargo, North Dakota area are causing high vacancy rates. The management company continues to offer rental concessions and rate reductions until occupancy has stabilized. Turnover at this property remains high. Concessions, rate reductions and fluctuating occupancy levels have contributed to the negative cash flow at the property. The investment general partner will continue to work with the operating general partner to stabilize the physical occupancy. The operating general partner continues to fund all operating deficits, despite the expiration of their guarantee. The mortgage, trade payables, property taxes, and insurance are current.

Calgory Apartments II, LP (Calgory Apartments II) is a 24 unit development located in Bismarck, ND. During 2005 the property operated with an average occupancy of 85% and as a result operated below breakeven. Average occupancy through the third quarter of 2006 was 93% and the property has been able to operate above breakeven. The property is located in a highly competitive area that has an abundance of apartments for rent. The investment general partner will continue to work with the operating general partner to stabilize the physical occupancy. The operating general partner continues to fund all operating deficits, despite the expiration of their guarantee. The mortgage, trade payables, property taxes, and insurance are current.

Grayson Manor, LP (Grayson Manor Apartments) is a 32 unit apartment development located in Independence, VA. In May 2005, the property suffered a

lightning strike and subsequent fire. The resulting damage forced the residents of 8 units from their apartments. Those living in 6 of the 8 units were allowed to return to their homes after the building's sprinkler system was re-activated, approximately one week later. The 2 remaining units and the attic area above them suffered substantial damage and the units were unoccupied while construction and repairs were being completed. As of September 2005, all construction and repair work was completed and the units were re-occupied. High operating expenses and overfunding of the replacement reserve prevented Grayson Manor from generating cash in 2005. Through third quarter of 2006, expenses were below budget, occupancy averaged 99%, and the property was generating cash.

Calgory Apartments III, LP (Calgory Apartment III) is a 24 unit development located in Bismarck, ND. Average occupancy for 2005 was 87%. The average occupancy through the third quarter of 2006 was 94%. The property is located in a highly competitive area with an overabundance of rental options. The investment general partner will continue to work with the operating general partner to stabilize the physical occupancy. The operating general partner continues to fund all operating deficits, despite the expiration of their guarantee. The mortgage, trade payables, property taxes, and insurance are current.

Jackson Bond, LP (Park Ridge Apartments) is a 136 unit property located in Jackson, TN. Vacancy and concession losses, as well as excessive bad debt, caused this property to operate below breakeven in 2005. The investment general partner visited the property in January 2006, and has since made recommendations to the operating general partner to improve the performance of the property. Occupancy trended upward in the third quarter; as of September 30, 2006 the property was 96% occupied. Management anticipates occupancy will remain strong through the fourth quarter. The investment general partner will continue to conduct monthly conference calls with management to ensure that the proper controls and procedures are in place. The operating general partner continues to fund operating deficits at the property. Since the property never converted to fixed rate financing, any operating deficits through the compliance period are guaranteed by the operating general partner's construction guaranty.

Lake Apartments IV Limited Partnership (Lake Apartments IV) is a 24-unit property located in Fargo, ND. During 2005 the property operated with an average occupancy of 87% but was able to operate above breakeven. Average occupancy through the third

quarter of 2006 was 79% and as a result the property operated at a deficit. The property is located in a highly competitive area and in an attempt to maintain occupancy levels the operating general partner lowers rental rates whenever occupancy levels drop below 90%. The investment general partner will continue to work with the operating general partner to monitor operations and occupancy at the property. The operating general partner continues to fund all operating deficits, despite the expiration of their guarantee. Although the property has had low occupancy, there are no deferred maintenance items at this time. The mortgage, trade payables, property taxes, and insurance are current.

Series 27

As of September 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 16 properties at September 30, 2006, all of which were at 100% Qualified Occupancy.

For the period ended September 30, 2006 and 2005, Series 27 reflects net loss from Operating Partnerships of $(594,905) and $(457,857), respectively, which includes depreciation and amortization of $871,240 and $855,462, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 27 has invested in Magnolia Place Apartments Partnership (the "Calhoun Partnership") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). Magnolia Place Apts sustained major flood damage as well as damage to flooring, appliances, decking, sheetrock, roof vents, shingles and siding due to Hurricane Katrina. Shortly after the storm, the Operating General Partner took immediate action to remove carpets and fixtures that might create an environment for mold. All but 12 apartments will require removal of both wall and ceiling drywall. Removal of drywall has been completed on the damaged apartments and wall installation began on January 9, 2006. Kitchen cabinets were installed during the months of February and March and have been completed as of March 31, 2006. All roofs have been replaced and all apartments have been treated for mold prevention. Insuran ce proceeds of $1,236,866 have been distributed to the operating general partner and have been deposited into a Magnolia Development Account with the lender controlling the distribution of funds. Estimated cost to repair the complex is $1,066,238. Any insurance proceeds remaining after repairs have been made will be distributed in accordance with the partnership agreement. Renovation has been completed and the investment general partner is working with the management company to try and ascertain how much insurance proceeds remain. The affordable housing property owned by the Calhoun Partnership is located in Mississippi and consist of 40 apartment units in total. The low income housing tax credit available annually to Series 27 from the Calhoun Partnership is approximately $129,037, which is approximately 5% of the total annual tax credit available to investors in Series 27.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the investment general partner that the Reimer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the investment general partner learned that the US Attorney intended to bring criminal charges against some members of the Reimer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 27 is not an investor. The investment general partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.

In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.

The investment general partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the investment general partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.

In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.

Centrum Fairfax II, LP (Forest Glen at Sully Station Phase II) is a 119 unit senior complex located in Fairfax, VA which has historically experienced low occupancy. In 2004, average physical occupancy was 83%. Through the fourth quarter of 2005, the average occupancy was 77%. As of the first quarter of 2006, average occupancy increased to 89% and as of March 2006 physical occupancy was 97%. In the second quarter 2006, the property operated with physical occupancy of 95%. Physical occupancy further increased to 100% in the third quarter 2006. The operating general partner has requested the investment general partner's approval to convert one bedroom apartments to two bedroom apartments at the adjacent project (Centrum Fairfax I, Forest Glen at Sully Station Phase I). The operating general partner will be

relocating the one bedroom residence from adjacent phase I to phase II which would improve the overall performance of the project. The operating general partner started the conversion process in the fourth quarter of 2005. The investment general partner is currently reviewing their request to convert the units. The property is in excellent physical condition. The operating general partner's contractual obligation to fund operating deficits expired in the third quarter of 2003. Despite this expiration, the operating general partner has continued to fund deficits and has indicated a commitment to continue to do so through the compliance period. The mortgage, taxes, insurance and payables are current.

Holly Heights, LP (Holly Heights Apartments) is a 30 unit property located in Storm Lake, Iowa. The property continues to incur operating deficits due to high tenant turnover and low rental rates. This property operated with an average occupancy of 92% in 2005. Occupancy averaged 92% through the third quarter of 2006. Despite the recent upswing in occupancy compared to 73% in 2004, there are still limited job opportunities in the area and, as a result, residents continue to move to other areas to find work. In response to declining occupancy, the management agent intensified leasing efforts by offering concessions of one month free rent and other incentives, including lower rents, no security deposits and increased resident referral rewards. As a result of the lower than desired occupancy combined with low rental rents, there is negative cash flow and high payables. In addition, the property suffers from a high interest rate on the permanent mortgage. Debt service at the property adversely affects the pro perty's overall operations. Management has presented the loan to various lenders, but net operating income cannot support a new loan. The investment general partner will continue to closely monitor the property. The operating general partner continues to fund the operating deficits, as needed. The mortgage, taxes, and insurance are all current.

Angelou Court (Angelou Court Apts.) is a 23 unit co-op property located in Harlem, New York. The partnership operated below breakeven due to increasing resident receivables and high operating expenses. Management had some success in the second quarter with aggressive eviction proceedings resulting in third quarter decrease of $11,068 in tenant accounts receivables. The operating general partner and management continue to explore options to reduce utility costs, including educating residents about conservation and seeking grants from utility companies. The investment general partner met with the operating general partner and management in March 2006 and found the property to be in excellent condition, and Harlem is undergoing a great deal of urban revitalization. The property pays no property taxes as the result of their non-profit, tax-exempt status. The mortgage and insurance are current and the operating general partner is funding deficits.

Kiehl Partners (Park Crest Apartments) is a 216 unit property located in Sherwood, AR. In 2005, occupancy averaged 85% and the property expended $42,000. Low occupancy and a dramatic rise in administrative, bad debt and maintenance expenses due to mismanagement were responsible for the cash deficit. At year-end, new on-site and regional staffs were hired to focus on strengthening the resident base and improving collections. Despite the replacement of the on-site property manager at year-end 2005 the property's occupancy has not improved. Occupancy averaged 81% through the third quarter of 2006. Third party shopping reports, conducted in both April and July, confirmed that the site continues to suffer from poor leasing technique. The regional manager may consider the replacement of the current property manager in the fourth quarter of 2006 if occupancy does not improve. The investment general partner will continue to conduct monthly conferences calls with management to ensure that the proper controls and p rocedures are in place. The operating general partner continues to fund operating deficits at the property. Since the property never converted to fixed rate financing, any operating deficits through the compliance period are guaranteed by the operating general partner's construction guaranty.

Series 28

As of September 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 26 properties at September 30, 2006, all of which were at 100% Qualified Occupancy.

For the period ended September 30, 2006 and 2005, Series 28 reflects net loss from Operating Partnerships of $(552,769) and $(782,051), respectively, which includes depreciation and amortization of $1,106,729 and $1,155,811, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 28 has invested in 6 Operating Partnerships (the "Calhoun Partnerships") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). Bienville III Apts, Cottonwood Apts, Jackson Place Apts and Maplewood Apts sustained minor damage to siding, shingles, roof vents and roofs due to Hurricane Rita. All repairs for Bienville III Apts were completed on October 24, 2005. All repairs for Cottonwood Apts were completed on December 10, 2005. All repairs for Jackson Place were completed on January 27, 2006. All repairs for Maplewood were completed on March 19, 2006. The repairs for all four properties damaged during Hurricane Rita were paid for out of operations. No insurance proceeds were received. The Operating Partnerships are Bienville III Apartments, Blanchard Partnership, Cottonwood Partnership, in Commendam, Evangeline Partnership, Jackson Place Apartments LP and M aplewood Apartments Partnership. The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 200 apartment units in total. The low income housing tax credit available annually to Series 28 from the Calhoun Partnerships is approximately $516,536, which is approximately 12% of the total annual tax credit available to investors in Series 28.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the investment general partner that the Reimer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the investment general partner learned that the US Attorney intended to bring criminal charges against some members of the Reimer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 28 is not an investor. The investment general partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.
In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.

The investment general partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing

Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the investment general partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.

In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.

1374 Boston Road, LP (1374 Boston Road) is a 15-unit property located in Bronx, New York. The property continues to experience below breakeven operations due to low occupancy and high debt service payments. The partnership had an average occupancy of 82% in the second quarter of 2006, a slight increase over the first quarter average of 78%. The investment general partner has been unable to get third quarter information despite frequent, repeated requests. Many of the vacant units are the result of evictions for non-payment of rent. The management company states they have a hard time filling these units due to the lack of creditworthy applicants. In 2003, the partnership recorded a $112,000 loan from the operating general partner to pay for a tax lien. This loan is being repaid at 7% interest. Further investigation showed that the tax lien was incurred during the construction period, and should have been funded by the operating general partner, without reimbursement, as part of his obligation to co mplete construction of the property per the partnership agreement and the development agreement. The investment general partner's repeated requests to restructure the loan were not heeded. In September 2005, legal counsel for the investment general partner sent a letter demanding a removal of the loan from the partnership account and the return of all payments made on this loan. The operating general partner's response did not address the issue satisfactorily. Additionally, in December 2005, a title search on the partnership showed at least $60,000 in liens incurred by the operating general partner that were never reported to the investment general partner. The investment general partner evaluated the impact of removing the operating general partner since these issues remain unresolved and has determined not to go forward at this time. The small size and location of the property, resulting in very limited real estate value, as well as the operating general partner's continued funding do not support an extended legal battle for removal. The investment general partner continues to monitor this property. The mortgage, property taxes and insurance are current.

Cottonwood Apartments (Cottonwood Partnership) is a 24 unit family development located in Cottonwood, Louisiana. The property operated at a deficit of $(12,223) in 2005. Stagnant rents caused the cash flow deficit in 2005. Occupancy has improved

from 96% in 2005 to 100% through three quarters of 2006. According to the 2006 unaudited reports, rental income is showing significant improvements. Should this trend continue, the property will reach break-even by year end. The general partner has an operating deficit guarantee, which is unlimited in time and amount.

Jackson Place Apartments, L.P. (Jackson Place Apartments) is a 40 unit development located in Jackson, LA. The property operated at a deficit of $15,262 in 2005, when using required reserves. Occupancy has improved in 2006 sustaining a 98% average compared to 95% during 2005. The 2006 unaudited financial reports show decreased expenses which have allowed the property to produce positive cash flow through the first three quarters. Flat rental rates are still a cause for concern at Jackson Place and a rent increase would certainly have a positive benefit on the property's cash flow. Without a rent increase, the property will need to maintain operating with expenses that are well below state average. In 2005, the property sustained minor shingle damage from Hurricane Rita. Repairs were completed in January of 2006 and costs were paid for from operations. The operating general partner has an operating deficit guarantee, which is unlimited in time and amount.

Maplewood Apartments Partnership, (Maplewood Apartments)is a 40 unit development located in Winnfield, LA. The property operated at a deficit of ($32,671)while maintaining a 91% occupancy rate in 2005. The loss was directly attributable to stagnant rents and an increase in maintenance and administration costs. Occupancy is showing improvement in 2006, averaging 93% for the first three quarters. According to the unaudited financial reports, the property is continuing to operate with expenses similar to the 2005 audited numbers. In an effort to offset the high expenses a rent increase went into effect on September 1, 2006. The operating general partner has an operating deficit guarantee, which is unlimited in time and amount.

Sumner House LP (Sumner House Apartments) is a 79 unit property located in Hartford, CT. In 2005 this property had an average occupancy of 74% and high operating expenses, which resulted in negative cash flow. Through third quarter in 2006, average occupancy improved to 95% and the property generated $11,542 of cash. The property spent over $17,000 in repairs in first quarter 2006 in order to update units and change carpeting. These repairs were needed in order to increase the overall appeal of the property. Regarding the area, drug activity, high crime, and a recent murder on the premises have disrupted operations and attributed to recent turnover. The operating general partner is focused on building a better reputation for the property and surrounding area and is working with the local police to increase safety. The operating general partner implemented a strict resident selection process and is very optimistic about the future of this property and the surrounding area. All ta xes, insurance, and mortgage payments are current for this property.

Series 29

As of September 30, 2006 and 2005 the average Qualified Occupancy for the Series was 100%. The series had a total of 22 properties at September 30, 2006 all of which were 100% Qualified Occupancy.

For the period ended September 30, 2006 and 2005, Series 29 reflects net loss from Operating Partnerships of $(590,960) and $(902,988), respectively, which includes depreciation and amortization of $1,249,376 and $1,337,450, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 29 has invested in 3 Operating Partnerships (the "Calhoun Partnerships") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). Edgewood Apts sustained minor damage to shingles, siding and roof vents due to Hurricane Katrina. Missing shingles and vents were replaced. Soffit, fascia and vinyl siding will be repaired by the on-site maintenance employee and will be paid for out of operations. Westfield Apts sustained major damage to shingles, decking and water damage all due to Hurricane Rita. All repairs for Westfield Apts were completed on March 11, 2006 and were paid for through insurance proceeds totaling $116,047.68. The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 152 apartment units in total. The low income

housing tax credit available annually to Series 29 from the Calhoun Partnerships is approximately $603,385, which is approximately 14% of the total annual tax credit available to investors in Series 29.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the investment general partner that the Reimer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the investment general partner learned that the US Attorney intended to bring criminal charges against some members of the Reimer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 29 is not an investor. The investment general partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certifica tion and the amount of tax credit generated.

In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.

The investment general partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the investment general partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be

in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.

In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.

Lombard Partners, LP (Lombard Heights Apts.) located in Springfield, Missouri, operated below breakeven in 2005. The main reason for its cash expenditure is

its low occupancy, which averaged 72% in 2005. The operating general partner felt that the property was operating below breakeven due to the performance of the management company. The operating general partner took over management of the property at the beginning of the first quarter of 2005. At that time, they evicted a number of non-paying residents and the re-leasing of the units has been slow, which has caused the property to continue to operate below breakeven throughout 2006. The operating general partner has funded all deficits. The property continues to struggle with occupancy and has averaged 50% through the third quarter of 2006. The operating general partner has made several changes to improve the management and leasing of the property. In the past, they have employed a resident as the on-site manager and have not had a dedicated property phone line. They have now set up a business line and have noticed that the telephone calls have been fairly steady. The property is now being managed by a non-resident who has property management experience. The property is bordered by three apartment communities and it is the only property that offers three bedroom units. The operating general partner has made contact with the managers of the adjacent communities who have indicated they will refer applicants looking for three bedroom units to Lombard Partners, LP. In the past the operating general partner has had difficulty reporting in a timely manner. The investment general partner will be working closely with the new management company and the operating general partner to improve reporting for the property.

Bryson Apartments, Limited Partnership (Pecan Hill Apartments) is a 16-unit development located in Bryson, TX. The property operated at a deficit of ($5,323) in 2005. The property achieved 100% occupancy as of the end of the third quarter of 2006, which is a significant increase from year end of 2005, which reflected 81%. If occupancy can sustain at current levels, the property will begin to function as a more viable asset. The operating general partner continues to fund all deficits.

Forest Hill Apartments, L.P. (The Arbors) is an 85 unit, senior property located in Richmond, VA. In the first quarter of 2004, the property was severely damaged by a fire. There were no reported injuries as a result of the loss and all of the residents were successfully relocated. The fire marshal has been unable to definitively determine the cause of the fire. The operating general partner received an initial insurance payment totaling $500,000 and at that time it was determined that the building should be razed due to the significant fire and water damage. In the third quarter 2004, the lender approved the release of sufficient insurance proceeds of $148,000 to raze the property. After bidding the property repairs, the operating general partner determined that there were additional costs of approximately $1.4 million due to building code changes since its original construction in 1998. The operating general partner's primary underwriter, and their excess property insurance carrier, determined that the policy did not cover code changes of more then $10,000. The operating general partner appealed their initial determination regarding additional coverage and in February 2006 the appeal was denied.

The operating general partner received an additional insurance payment totaling $3 million dollars, representing the insurance company's estimate to rebuild the community minus the code change upgrades in dispute. The insurance proceeds are currently being held by the lender. The operating general partner was able to reduce

the original construction budget by $1,167,306. Main reduction costs were site work, verticals and contingency. The reduction of the construction budget eliminated the originally anticipated shortfall of $1,257,519. As a result, in early October 2006, the operating general partner received a commitment letter from VHDA indicating approval of the additional debt of $1,600,000. The operating general partner has indicated that construction will begin in early November 2006 and the project should be complete within nine months. Once construction starts, the investment general partner will be closely monitoring the construction progress of the property.

Kiehl Partners (Park Crest Apartments) is a 216 unit property located in Sherwood, AR. In 2005, occupancy averaged 85% and the property expended $42,000. Low occupancy and a dramatic rise in administrative, bad debt and maintenance expenses due to mismanagement were responsible for the cash deficit. At year-end, new on-site and regional staffs were hired to focus on strengthening the resident base and improving collections. Despite the replacement of the on-site property manager at year-end 2005 the property's occupancy has not improved. Occupancy averaged 81% through the third quarter of 2006. Third party shopping reports, conducted in both April and July, confirmed that the site continues to suffer from poor leasing technique. The regional manager may consider the replacement of the current property manager in the fourth quarter of 2006 if occupancy does not improve. The investment general partner will continue to conduct monthly conferences calls with management to ensure that the proper controls and p rocedures are in place. The operating general partner continues to fund operating deficits at the property. Since the property never converted to fixed rate financing, any operating deficits through the compliance period are guaranteed by the operating general partner's construction guaranty.

Ozark Associates, LP (Regency Apartments) is a 16 unit property located in Poplarville, MS. This partnership was added to the watch list during the third quarter 2006, due low revenue. Occupancy has been poor because 7 of the property's 16 units have been down due to damage caused by Hurricane Katrina. Management did not list the 7 units as vacant in 2005 because the partnership was still receiving 100% of its rental subsidies for the 7 units through Rural Development. An insurance claim was filed, but the claim has not been settled and management does not anticipate receipt of insurance proceeds that will be applied to repair the down units until December 2006. Management has also requested lost rent money through the end of the year since the 7 vacant units have substantially impacted the cash position of the partnership. The investment general partner will conduct monthly conference calls with management to ensure that the insurance claim is settled and the proper repairs are made by Decemeber 31, 200 6. All taxes, insurance, and mortgage payments are current for this property.

Westfield Apartments (Westfield Apartments Partnership) is a 40 unit development located in Welsh, Louisiana and is approximately 100 miles from Baton Rouge, the nearest large city. The property has struggled from a failure to attain projected rents. The property operated at a deficit of ($23,965) in 2005 which was mainly caused by a rent income loss of ($21,000) due to Hurricane Rita. According to the 2006 unaudited financials, the property has increased rental income and maintained below average expenses which has allowed the property to break-even. As of September 1, 2006, rents at Westfield were increased $40 per unit which will help the property maintain positive cash flow moving forward. The general partner has an operating deficit guarantee, which is unlimited in time and amount.

Series 30

As of September 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 18 properties at September 30, 2006, all of which were at 100% Qualified Occupancy.

For the period ended September 30, 2006 and 2005, Series 30 reflects net loss from Operating Partnerships of $(561,226) and $(537,565), respectively, which includes depreciation and amortization of $685,364 and $668,082, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Bellwood Four, LP (Whistle Stop Apartments) is a 28 unit family complex in Gentry, AR. Occupancy through third quarter 2006 averaged 91%. In 2005 the property expended $32,000 of cash and averaged 91% occupancy. However, occupancy significantly improved to 100% in the fourth quarter of 2005 and the property generated cash in that quarter. In 2006, expenses are slightly lower the state averages and income increased 23% compared to 2005. Through September of 2006, the property expended ($5,612) of cash. Taxes, mortgage, and insurance are all current for this property.

Mesa Grande, LP (Mesa Grande Apartments) is a 72 unit, family property located in Carlsbad, New Mexico. In April 2003, the mortgage lender issued a default notice and, after the Operating General Partner took no steps to remedy the situation, accelerated the note. In November 2003, the investment general partner replaced the management company. In 2004, the investment general partner filed a civil action against the operating general partner to force it to honor its obligation to fund operating deficits. In October 2004, the investment general partner removed the operating general partner.

In September 2004, the original lender sold the non-performing loan to a new lender who accelerated the loan. The investment general partner met with the lender to propose a work-out plan that included restructuring the debt to allow for a significant cash infusion for deferred maintenance and back taxes. The lender refused to restructure the debt and began the foreclosure process in December 2004.

Throughout 2005, the investment general partner made several attempts to resolve the debt, all of which were rejected by the lender. On November 16, 2005, the investment general partner received a Notice of Non-Compliance with Section 42 from the New Mexico Mortgage Finance Authority. The management company addressed as many of the cited issues as it could with funds available from the property, but was unable to make some roof and exterior repairs because the lender declined to release insurance proceeds it had received related to these repairs.

The lender suspended active efforts to foreclose its mortgage throughout most of 2005, but renewed its efforts in January 2006, by filing a Motion for Summary Judgment in the foreclosure action. The partnership and New Mexico Mortgage Finance Authority agreed to stipulate to a judgment of foreclosure. The Stipulation was recorded and the property was sold at foreclosure sale in July 2006, with the lender bidding in the property for the amount of its debt claim. The lender has been in possession of the property, collecting rents and directing the operations of the property, since May 1, 2006. Annual losses generated by the Operating Partnership which were applied against the investment general partnership's investment in the Operating Partnership in accordance with the equity method of accounting had previously reduced the investment general partnership investment in the Operating Partnership to zero. Accordingly, no gain or loss on the foreclosure of the investment general partner interest has been re corded. Recapture and interest resulting from this 2006 event are estimated to be $741,543 and $209,111 respectively.

Sunrise Homes, LP (Sunrise Homes and Broadway Place Apartments) consists of two family properties containing a total of 44 units, located in Hobbs, New Mexico. In April 2003, the mortgage lender issued a default notice and, after the operating general partner took no steps to remedy the situation, accelerated the note. In November 2003, the investment general partner replaced the management company. In 2004, the investment general partner filed a civil action against the operating general partner to force it to honor its obligation to fund operating deficits. In October 2004, the investment general partner removed the operating general partner.

In September 2004, the original lender sold the non-performing loan to a new lender who accelerated the loan. The investment general partner met with the lender to propose a work-out plan that included restructuring the debt to allow for a significant cash infusion for deferred maintenance and back taxes. The lender refused to restructure the debt and began the foreclosure process in December 2004.

Throughout 2005, the investment general partner made several attempts to resolve the debt, all of which were rejected by the lender. On November 16 2005, the investment general partner received a Notice of Non-Compliance with Section 42 from New Mexico

Mortgage Finance Authority. The management company addressed as many of the cited issues as it could with funds available from the property, but was unable to make some roof and exterior repairs because the lender declined to release insurance proceeds it had received related to these repairs.

The lender suspended active efforts to foreclose its mortgage throughout most of 2005, but renewed its efforts in January 2006, by filing a Motion for Summary Judgment in the foreclosure action. The partnership and New Mexico Mortgage Finance Authority agreed to stipulate to a judgment of foreclosure. The Stipulation was recorded and the property was sold at foreclosure sale in July 2006, with the lender bidding in the property for the amount of its debt claim. The lender has been in possession of the property, collecting rents and directing the operations of the property, since May 1, 2006. Annual losses generated by the Operating Partnership which were applied against the investment general partnership's investment in the Operating Partnership in accordance with the equity method of accounting had previously reduced the investment general partnership investment in the Operating Partnership to zero. Accordingly, no gain or loss on the foreclosure of the investment general partner's interest has been recorded. Recapture and interest resulting from this 2006 event are estimated to be $642,208 and $184,459 respectively.

JMC, LLC (Farwell Mills Apts.) is a 27 unit development located in Lisbon, ME. In 2005, the property expended $19,000 and occupancy averaged 89% in 2005. Occupancy has improved in 2006, averaging 92% through the third quarter. The investment general partner conducted a site evaluation of the property in July 2006. Although the condition of the property was good, the investment general partner believes corporate management's approach to leasing and application processing has hindered the property's ability to achieve occupancy in the high 90's. Given the property's central location and demand in the market, it could sustain high occupancy if better leasing techniques were implemented and if applications were processed in a timely manner. The investment general partner has addressed these management issues and is currently working with the operating general partner to improve his management company's policies and procedures. The operating general partner's operating de ficit guarantee, capped at $400,000, expires in July 2013.

Linden Partners II (Western Trails Apartments II) is a 30 unit property located in Council Bluffs, IA. This property has seen improvements in occupancy since 2004. Occupancy averaged 88% in 2004, 93% in 2005, and through third quarter 2006 averaged 91%. The operating general partner took over management of the property in 2005, which positively impacted the property operations and brought stability to the complex. Through the third quarter 2006, the property expended ($7,474) of cash. With in-house management, the operating general partner anticipates a decrease in operating expenses. Through third quarter 2006 expenses have decreased 30%, mostly in maintenance. The investment general partner will continue to monitor operations with the operating general partner to ensure the maintenance expense reductions do not adversely affect the property. Taxes, insurance, and mortgage payments are all current for this property.

Nocona Apartments, LP (Nocona Apartments) is a 36-unit property located in Nocona, Texas. Historically, the property has been plagued with low occupancy due to a slowed local economy and a challenging rural location. 2005 was a year of improvement for the property. The property operated at a surplus of$2,230. The property achieved 81% occupancy as of the end of the third qwuarter of 2006. The managing agent has expanded their marketing to include networking with local businesses and providing brochures at the local chamber of commerce in order to increase occupancy. The operating general partner has an unlimited guarantee in time and amount and continues to fund any shortfalls.

Millwood Park, LP (Millwood Park Apartments) is a 172 unit new construction family property located in Douglasville, Georgia. The property's occupancy has struggled in a highly competitive market, which is 21 miles outside of Atlanta. A double murder occurred in the property's parking lot, which led to high turnover. Occupancy was at a low of 65% in August 2005. The operating general partner responded with move-in specials and heavy advertising with local businesses and rental guides. Although occupancy has improved significantly, averaging 90% for the first three quarters of 2006, it has slipped in the third quarter to an average of 89% and was at 87% as of

September 2006. Revenue over the first eight months of 2006 has increased by 15%. Expenses over the same period have decreased by 14%. The operating general partner continues to honor an operating deficit guarantee that remains in effect until 2011. The mortgage, taxes and insurance are all current.

Series 31

As of September 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 27 properties at September 30, 2006, all of which were at 100% Qualified Occupancy.

For the period ended September 30, 2006 and 2005, Series 31 reflects net loss from Operating Partnerships of $(805,293) and $(830,975), respectively, which includes depreciation and amortization of $1,538,377 and $1,646,765, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Summerdale Partners LP, II (Summerdale Commons - Phase II) is a 108 unit property located in Atlanta, GA. In 2004, operations at the property declined as a result of decreased occupancy and greater than average operating expenses. In 2005, although operating expenses decreased from the prior year, the property continued to struggle with occupancy, bad debt, and high resident receivables. Physical occupancy through the third quarter of 2006 is averaging 81%. Current occupancy levels are not sufficient to allow the property to operate at breakeven. It has recently been brought to the attention of the operating general partners that the majority of the vacant units were not ready to rent. Many units required appliances, carpeting and various repairs. The former site manager was lax in enforcing the screening criteria and had a policy of renting recently vacated units "as is" by offering rent reductions. Once these issues were discovered the site manager was replaced. The new manager has est ablished a strict screening criteria for new residents, as well as enforcing rigid collection policies. However, they are still dealing with a significant number of evictions. The operating general partner has maintained that the Public Housing units bring a stigma to the property, making it difficult to rent units. The operating general partner has been in negotiations with the Housing Authority and is moving forward with opting out of the Public Housing Program. The formal request was submitted to HUD and is close to approval. It had been held up do to a clerical issue with HUD. As part of this process, the public housing residents will be issued resident-based vouchers. Additionally, as part of the proposed agreement with the Housing Authority, the operating general partner has requested the release of an operating reserve account currently held by the Housing Authority. The funds would be utilized to pay down existing payables, and to make necessary physical improvements to the property, including making vacant units rent ready. The investment general partner has been working with the operating general partner in order to ensure steps are taken to increase occupancy, as well as improve rental collections. The investment general partner is monitoring the progress of the negotiations with the Housing Authority. The investment general partner has contracted with a consultant to work with the operating general partner in improving operations at the property. All mortgages, taxes, and insurance are current. Operating deficits are currently being funded by accruing payables. The partnership has an operating deficit reserve account and an operating guaranty in place by the operating general partner. The investment general partner will continue to closely monitor the efforts of the operating general partner until operations have stabilized.

Canton Housing One, LP (Madison Heights Apartments) is an 80 unit property located in Canton, Mississippi. Occupancy averaged 87% in 2005. The property was unable to breakeven in 2005 due to low occupancy and ineffective site management. In addition, management continues to struggle with the weak resident profile that required a strong campaign of evicting residents who do not pay their rent. Management has taken several measures in its effort to increase occupancy including advertisements in local newspapers, rental concessions, and the hiring of a fulltime, onsite manager in March of 2006. As a direct result, the occupancy increased to 89% through the third quarter 2006. The mortgage, property taxes and insurance are current.

Canton Housing Four, LP (Canton Manor Apartments) is a 32 unit property located in Canton, Mississippi. In 2005 the property was unable to breakeven due to low occupancy and ineffective site management. Occupancy averaged 85% in 2005. As a direct result of management's efforts to advertise the property in local newspapers, offer attractive rental concessions and employ a full-time onsite manager, occupancy

increased to an average of 93% through the third quarter of 2006. Management is continuing to focus its efforts on controlling the operating expenses and believes that, with increased occupancy levels, the property will be able to support its operations.

Riverbend Housing Associates (Riverbend Estates) is a 28 unit property located in Biddeford, ME. Vacancy loss has hindered the property's ability to break even. Management has had difficulty finding residents who qualify for the property's 60% income level units. Occupancy has averaged 89% through the third quarter. Management has repeatedly targeted prospective tenants through outreach; however, interest continues to come from potential residents qualifying at the 30% income level. Consequently, management has begun to rent the 60% income level units to residents qualifying at lower income levels through the third quarter. In addition to the difficulty in attracting renters that qualify at the 60% income level, the investment general partner believes corporate management's approach to leasing and application processing has hindered the property's ability to achieve higher occupancy. The investment general partner addressed this issue and is currently working with the operating general partner to improve his management company's policies and procedures. The operating general partner will continue to defer fees due to an affiliated management company and maintenance company, to fund the deficit. The operating deficit guarantee is capped at $300,000 and expires on December 31, 2012.

Pilot Point Apartments, LP (Pilot Point Apartments) is a 40-unit property located in Pilot Point, TX. During 2005 the property operated below breakeven due to high operating expenses and an average occupancy of 88%. Average occupancy through the third quarter of 2006 was 86%. The property continues to operate below breakeven due to continued high expenses and occupancy that remains below 90%. The local town where the property is located has a very poor economy. There are two other apartment complexes in the town that both experienced a drop in occupancy in 2006. The closest large employers are 30 to 40 miles away. In an effort to attract and retain residents, management offers a $50 cash award for all friends referred to the complex that rent an apartment. Advertising is in local newspapers and with the local housing authority. The investment general partner will continue to monitor the property to ensure that occupancy improves and stabilizes. All taxes, insurance and mortgage payments are curren t.

San Angelo Bent Tree, LP (Bent Tree Apartments) is a 112-unit family complex located in San Angelo, Texas. During 2005 the property operated below breakeven due to high operating expenses and an average occupancy of 91%. Occupancy declined in the third and fourth quarters of 2005, averaging 87%, as a result of the housing authority cutting back on funds and having removed several residents from the program. In addition, the threat of the nearby air base closing sent many of the military wives home to live with family outside of San Angelo. The unit turnover caused operating expenses, specifically maintenance expenses, to be higher in 2005 then they had been in 2004. In the second quarter of 2006, San Angelo has smoothed out issues with the air base and housing received additional funds. The management agent continues to market the available units by working closely with the housing authority and by various marketing efforts, such as advertising in local and rental publications, to attract qualified resid ents. Because of the management's marketing efforts, occupancy has rebounded to an average of 97% in the third quarter 2006. The investment general partner will continue to monitor the property to ensure the stabilization of occupancy levels and operating expenses. The property's mortgage, real estate taxes, and insurance are current.

Series 32

As of September 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 17 properties at September 30, 2006, all of which were at 100% Qualified Occupancy

For the period ended September 30, 2006 and 2005, Series 32 reflects net loss from Operating Partnerships of $(783,453) and $(835,158), respectively, which includes depreciation and amortization of $1,221,754 and $1,122,571, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 32 has invested in 3 Operating Partnerships (the "Calhoun Partnerships") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). The operating partnerships are Pearlwood Apartments LP, Pecan Manor Apartments and Pineridge Apartments Partnership. Pearlwood Apts sustained minor damage to shingles and roof vents due to Hurricane Katrina. All repairs for Pearlwood Apts were completed on October 17, 2005 and were paid for out of operations. Pecan Manor sustained major damage to shingles, vents, fascia, sheetrock, and wet flooring due to Hurricane Rita. The repairs to the shingles have been completed, and interior and sheetrock repairs are in progress. The partnership has received insurance proceeds totaling $147,694.91. Pineridge Apts sustained major damage to shingles, roof vents, roofs, decking, flooring and fences due to Hurricane Katrina. The carpets, shin gles, interior sheetrock, and fence repairs have been completed. The fascia, soffit, and siding repairs are in progress. The investment general partner is trying to ascertain how the operating general partner paid for these repairs. The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana or Mississippi and consist of approximately 120 apartment units in total. The low income housing tax credit available annually to Series 32 from the Calhoun Partnerships is approximately $537,868, which is approximately 11% of the total annual tax credit available to investors in Series 32.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the investment general partner that the Reimer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the investment general partner learned that the US Attorney intended to bring criminal charges against some members of the Reimer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 32 is not an investor. The investment general partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.

In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.

The investment general partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and

accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the investment general partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.

In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.

FFLM Associates is an Operating Partnership that owns 3 limited partner interests, one of which is Carriage Pointe Investors, LP. Carriage Pointe Investors LP (Carriage Pointe Apartments) is an 18 unit, two building property in Old Bridge, New Jersey. Historically this property suffered from negative cash flow, high accounts payable, and under-funded replacement reserves. Average occupancy through the third quarter of 2006 was 98%. The operating general partner was successful in 2004 in getting the lender to reduce the interest rate on the loan by 2%, however, debt service is still 49% of the property's total income. The operating general partner will continue to attempt to reduce the debt service. The property expended $12,968 of cash through the second quarter of 2006. The mortgage, taxes, insurance and payables are current.

Indiana Development, LP (Clear Creek Apartments) is a 64-unit development, located in North Manchester, Indiana. The property has historically operated below breakeven as a result of low occupancy which averaged 76% as the third quarter of 2006. The property suffered cash losses of ($113,684) and ($53,329) for the years 2004 and 2005, respectively. The project's physical appearance and condition is good. Management, however has been ineffective. The operating general partner does not have an affiliated management company and has sought to manage the property using third party management companies. The operating general partner has engaged four management companies in four years. The most recent management company assumed

management in April 2006 and is still sorting out issues created by the previous management companies. To date, the operating general partner has funded all operating deficits. Although an unlimited operating deficit guarantee is still in effect, the operating general partners' ability to fund continued operating deficits is in question.

Jackson Bond, LP (Park Ridge Apartments) is a 136 unit property located in Jackson, TN. Vacancy and concession losses, as well as excessive bad debt, caused this property to operate below breakeven in 2005. The investment general partner visited the property in January 2006, and has since made recommendations to the operating general partner to improve the performance of the property. Occupancy trended upward in the third quarter of 2006 to 96% occupied. Management anticipates occupancy will

remain strong through the fourth quarter. The investment general partner will continue to conduct monthly conference calls with management to ensure that the proper controls and procedures are in place. The operating general partner continues to fund operating deficits at the property. Since the property never converted to fixed rate financing, any operating deficits through the compliance period are guaranteed by the operating general partner's construction guaranty.

Martinsville I Limited (Martinsville Apartments) is a 13-apartment project located in

Shelbyville, KY. The property operated at a deficit of ($20,000) in 2005 and has expened over ($7,000) through the third quarter 2006. The average occupancy declined to 78% through the third quarter of 2006 from an average occupancy of 94% in 2005 The decline in average occupancy is due to 6 move outs in the month of August 2006. Expenses in 2005 increased 32% from 2004. Major increases in operating expenses were due to make-ready expenses for vacant units and a large increase in utilities. Operating expenses through the third quarter of 2006 are lower then 2005 levels on an annualized basis. However, with the lower occupancy, the property is still not projected to operate above breakeven in 2006.

Parkside Plaza, L.P. (Parkside Plaza Apartments) is a 39-unit co-op property located in Harlem, New York. The property operated below breakeven in 2005 and in the first two quarters of 2006 due to low rental income, collections loss, and high expenses. With reduced administrative and utility costs in the third quarter of 2006, the property operated above break-even and payables were reduced. The partnership received approval of a 10% rent increase effective January 2006 which added approximately $20,000 to the annual rent revenue. The investment general partner visited the property in March 2006 to view the properties and to meet with the operating general partner and management to discuss issues at the property. Management is working to reduce tenant delinquencies by aggressively filing late notices and pursuing evictions through the housing court and has had success in the second quarter in obtaining judgments against six non-paying households. In line with the cooperative documents, management is a ssessing unit maintenance charges to the residents. Other methods of improving collections, including posting payments received in common areas, improving relations with residents, and a proposal to assess property debt and collection charges to residents are also being reviewed and considered. In the fourth quarter 2005, the operating general partner discovered that $24,000 is owed to the partnership for overpayment of taxes on a tax exempt property. Management has requested a refund. Management continues to explore options to reduce utility costs, including tenant education on conservation and applications were filed in the first quarter to a non-profit agency for assistance and grants to cover increased utility expenses. The investment general partner continues to work with the operating general partner to improve operations. All mortgages and insurance payments are current. The property pays no property taxes as the result of a tax-exempt status.

Courtside Housing Associates, Limited Partnership (Courtside Apartments) is a 44-unit property located in Cottonwood, Arizona. The property operated well below breakeven in the third quarter of 2006 due to annualized operating expenses of almost $6,000 per unit. The operating general partner has been proactive and is working closely with the third-party management company to reduce operating expenses, particularly administrative costs, and replenish the property's diminishing replacement reserve account. Although the operating general partner's operating deficit guarantee

expired in 2004, they have acknowledged that they will need to fund deficits this year. The mortgage, real estate taxes and insurance payments are all current. The tax credit compliance period ends in 2012.

Series 33

As of September 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 10 properties at September 30, 2006, all of which were at 100% Qualified Occupancy.

For the period ended September 30, 2006 and 2005, Series 33 reflects net loss from Operating Partnerships of $(459,981) and $(324,157), respectively, which includes

depreciation and amortization of $614,705 and $462,028, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 33 has invested in Forest Park Apartments (the "Calhoun Partnership") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). The affordable housing property owned by the Calhoun Partnership is located in Louisiana and consists of approximately 40 apartment units in total. The low income housing tax credit available annually to Series 33 from the Calhoun Partnership is approximately $208,599, which is approximately 8% of the total annual tax credit available to investors in Series 33.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the investment general partner that the Reimer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the investment general partner learned that the US Attorney intended to bring criminal charges against some members of the Reimer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 33 is not an investor. The investment general partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.

In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.

The investment general partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing

Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the

$1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the investment

general partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.

In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.

FFLM Associates is an Operating Partnership that owns 3 limited partner interests, one of which is Carriage Pointe Investors, LP. Carriage Pointe Investors LP (Carriage Pointe Apartments) is an 18 unit, two building property in Old Bridge, New Jersey. Historically this property suffered from negative cash flow, high accounts payable, and under-funded replacement reserves. Average occupancy through the third quarter of 2006 averaged 98%. The operating general partner was successful in 2004 in getting the lender to reduce the interest rate on the loan by 2%, however debt service is still 49% of the property's total income. The operating general partner will continue to attempt to reduce the debt service. The property expended $12,968 of cash through the second quarter of 2006. The mortgage, taxes, insurance and payables are current.

Forest Park Apartments (Stonewall Retirement Village) is a 40 unit development located in Stonewall, LA. The property operated at a deficit of $20,283 in 2005 while maintaining an average occupancy rate of 98%. In the first quarter of 2006, the property's occupancy was 100%, yet the property operated at a deficit due to flat rental rates and increasing operating expenses, including real estate taxes. During the second quarter the property continued to sustain 100% occupancy with a slight increase in revenue. Occupancy declined in the third quarter of 2006, but continues to maintain a high average of 99% for 2006. Third quarter unaudited financials show an increase in rental income due to a much needed $40 per unit rent increase on September 1, 2006, which allowed the property to produce positive cash flow. High occupancy combined with improved efforts by the management company in controlling expenses will help in reducing the operating deficit at year end. The operating general partner has an operating d eficit guarantee that is unlimited in time and amount.

Stearns Assisted Housing Associates, L.P. (Stearns Assisted Housing), is a 20-unit property in Millinocket, ME providing congregate housing to seniors. In 2005, occupancy averaged 96% and the property expended $14,215 due to high maintenance and utility expenses. The site was originally a high school, and the high ceilings make the site expensive to heat in the winter months. Through the third quarter of 2006, occupancy averaged 92%. Following the historical trend, seasonal utility and maintenance expenses began to normalize in the warmer months, and the partnership was

able to recoup a portion of the cash deficit in the third quarter of 2006. In 2005, the operating general partner advanced money to the partnership to fund the cash deficit. The operating general partner's operating deficit guaranty is unlimited in time and amount.

Bradford Group Partners of Jefferson County, LP (Bradford Park Apartments) is a 50 unit senior complex located in Jefferson City, TN. Occupancy at this property averaged 88% in 2005 and is up to 92% through September 2006. The site manager has been successful in retaining current residents by offering different types of incentives, such as one month free rent and a $50 referral fee. The property is also being advertised in the local newspapers. The taxes and insurance are being properly

escrowed and the mortgage is current. The property is currently operating at break-even.

Merchants Court, LP (Merchants Court Apartment) is a 192-unit property located in Dallas, GA. The property struggled with occupancy problems due to competitive homeownership programs. In early 2006, a new Wal-Mart Superstore opened nearby, increasing the applicant pool. As a result, third quarter 2006 occupancy increased to 99% from the first quarter 2006 average of 94%, and the leasing agent maintains a wait list. Management is now focusing on increasing economic occupancy. Concessions are no longer being offered to new move-ins and the site staff is increasing their rent collection efforts to reduce delinquencies. The average delinquency in 2006 was reduced to 6% of the monthly income from an average of 12% in 2005. Tenant retention is also a priority, and the site manager implemented a kids' club (a social club for the residents' children) and a one-day maintenance turnaround guarantee, and is planning various social events for the families. To encourage lease renewals, they are giving renewing residents coupons for free maintenance services to be performed by the on-site maintenance staff, such as carpet cleaning and window cleaning. Third-party accounts payable are slowly being paid down with operating cash. Mortgage and insurance payments are all current. In the first quarter of 2006, the operating general partner confirmed that taxes would be paid by an affiliate as an advance, but due to funding difficulties, the tax payment remained outstanding. In September 2006, the permanent lender issued a default letter for non-payment of taxes and underfunding the operating reserve account. The operating general partner has paid the outstanding taxes and continues to work with the lender toward a waiver of the operating reserve requirement. As of October 2006, no tax lien has been filed on the property. The property is now generating sufficient cash that the tax and insurance escrow is being funded on a monthly basis. The investment general partner continues to monitor the status of the tax payme nts and the improving performance of this property on a weekly basis.

Series 34

As of September 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 14 properties at September 30, 2006, all of which were at 100% Qualified Occupancy.

For the period ended September 30, 2006 and 2005, Series 34 reflects net loss from Operating Partnerships of $(516,095) and $(857,923), respectively, which includes depreciation and amortization of $1,054,344 and $1,101,760, respectively. This is an interim period estimate; it is not indicative of the final year end results.

RHP 96-I, LP (Hillside Club I Apartments), is a 56-unit property located in Petosky, Michigan, which has operated below breakeven as a result of low occupancy, which averaged 83% through Q3 2006. The property suffered cash losses of ($80,898) and ($50,619) for the years 2004 and 2005 respectively. The project's physical appearance and condition is good. Management, however has been ineffective. The operating general partner does not have an affiliated management company and has sought to manage the property using third-party management companies. The operating general partner has engaged four management companies in four years. The most recent management company assumed management in April 2006, and is still sorting out issues created by the previous management companies. To date, the operating general partner has funded all operating deficits. Although an unlimited operating deficit guarantee

is still in effect, the operating general partners' ability to fund continued operating deficits is in question.

Merchants Court, LP (Merchants Court Apartment) is a 192-unit property located in Dallas, GA. The property struggled with occupancy problems due to competitive homeownership programs. In early 2006, a new Wal-Mart Superstore opened nearby, increasing the applicant pool. As a result, third quarter 2006 occupancy increased to 99% from the first quarter 2006 average of 94%, and the leasing agent maintains a wait list. Management is now focusing on increasing economic occupancy. Concessions are no longer being offered to new move-ins and the site staff is increasing their rent collection efforts to reduce delinquencies. The average delinquency in 2006 was reduced to 6% of the monthly income from an average of 12% in 2005. Tenant retention

is also a priority, and the site manager implemented a kids' club (a social club for the residents' children) and a one-day maintenance turnaround guarantee, and is planning various social events for the families. To encourage lease renewals, they are giving renewing residents coupons for free maintenance services to be performed by the on-site maintenance staff, such as carpet cleaning and window cleaning. Third-party accounts payable are slowly being paid down with operating cash. Mortgage and insurance payments are all current. In the first quarter of 2006, the operating general partner confirmed that taxes would be paid by an affiliate as an advance, but due to funding difficulties, the tax payment remained outstanding. In September 2006, the permanent lender issued a default letter for non-payment of taxes and underfunding the operating reserve account. The operating general partner has paid the outstanding taxes and continues to work with the lender toward a waiver of the operating reserve requ irement. As of October 2006, no tax lien has been filed on the property. The property is now generating sufficient cash that the tax and insurance escrow is being funded on a monthly basis. The investment general partner continues to monitor the status of the tax payments and the improving performance of this property on a weekly basis.

Millwood Park, LP (Millwood Park Apartments) is a 172 unit new construction family property located in Douglasville, Georgia. The property's occupancy has struggled in a highly competitive market, which is 21 miles outside of Atlanta. A double murder occurred in the property's parking lot, which led to high turnover. Occupancy was at a low of 65% in August 2005. The operating general partner responded with move-in specials and heavy advertising with local businesses and rental guides. Although occupancy has improved significantly, averaging 90% for the first three quarters of 2006, it has slipped in the third quarter to an average of 89% and was at 87% as of September 2006. Revenue over the first eight months of 2006 has increased by 15%. Expenses over the same period have decreased by 14%. The operating general partner continues to honor an operating deficit guarantee that remains in effect until 2011. The mortgage, taxes and insurance are all current.

Series 35

As of September 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 11 properties at September 30, 2006, all of which were at 100% Qualified Occupancy.

For the period ended September 30, 2006 and 2005, Series 35 reflects net loss from Operating Partnerships of $(473,655) and $(464,941), respectively, which includes depreciation and amortization of $762,412 and $777,880, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Tennessee Partners XII, LP (Autumn Park) is a 104 unit property located in Dickson, Tennessee. In 2005, the property operated with a 94% occupancy average. In the first and second quarters of 2006, the investment general partner worked with the management company to enhance overall management by improving resident selection and collections. This approach cut bad debt by half as compared to the prior year's average; however, occupancy declined as many non-paying residents were evicted. Occupancy averaged 88% through the second quarter of 2006. Despite the decline in occupancy, the units were recovered quickly and occupancy improved in the third quarter, averaging 96%. The investment general partner will continue to conduct monthly conference calls with management to ensure that the proper controls and procedures are enforced. The operating general partner continues to fund cash shortfalls at the property. Any operating deficits through the compliance period are guaranteed by the operating general partner's construction guaranty unless the partnership converts to fixed rate permanent financing. The operating general partner is very active in the tax credit business, and has ample incentive and resources to continue supporting deficits.

Columbia Wood, LP (Columbia Wood Townhomes) is a 120 unit property located in Newnan, GA. Through the third quarter of 2006, the partnership expended annualized cash of $1,175 per unit as a result of high operating expenses, concessions and bad debt. This expenditure represents a reduction of 6% from the 2005 levels. Operating expenses have risen from 2005 levels and exceed the state average by 13% through the

third quarter of 2006. This rise in operating expenses has been off-set by a 12% rise in income per unit, which is the result of a significant increase in occupancy levels. Historically, occupancy has been a problem at this property due to competition from low priced town homes nearby and an immature Newnan, GA, affordable housing market. Occupancy averaged 86% in 2005, but has risen to 97% through the third quarter of 2006 as new jobs have brought additional qualified residents to the market. Despite recent increases in occupancy levels, management continues to offer rental concessions to attract and retain residents. Due to the competitive nature of the market, it is anticipated that concessions will remain a fixture in the market for some time. Management continues to aggressively market the property through local media and promote community building activities, including summer breakfast and lunch programs for children and holiday parties. Additional focus placed on improving collections has helpe d management to maximize rental income. All real estate taxes, insurance and mortgage payments are current. The operating general partner's obligation to fund operating deficits is unlimited in amount until the time of rental achievement, which has not yet occurred.

Series 36

As of September 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 11 properties at September 30, 2006, all of which were at 100% Qualified Occupancy.

For the period ended September 30, 2006 and 2005, Series 36 reflects net loss from Operating Partnerships of $(217,274) and $(265,001), respectively, which includes depreciation and amortization of $516,008 and $530,781, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 36 has invested in 2 Operating Partnerships (the "Calhoun Partnerships") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). The operating partnerships are Willowbrook Apartments Partnership and Wingfield Apartments LP. Willowbrook Apts and Wingfield Apts sustained minor damage to shingles, roof vents, siding and carpets due to Hurricane Rita. Interior repairs for Willowbrook Apts have been completed. Roof repair was completed for $1,500, siding and soffit for $1,100. Repairs were completed on July 13, 2006. All repairs for Wingfield Apts were completed on May 3, 2006. Repairs for both, Willowbrook and Wingfield, will be paid for out of operations. No insurance proceeds were received. The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 80 apartment units in total. The low income hou sing tax credit available annually to Series 36 from the Calhoun Partnerships is approximately $382,522, which is approximately 18% of the total annual tax credit available to investors in Series 36.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the investment general partner that the Reimer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the investment general partner learned that the US Attorney intended to bring criminal charges against some members of the Reimer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 36 is not an investor. The investment general partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.

In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.

The investment general partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the investment general partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.

In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.

New Caney Housing II, LP (Garden Gates Apartments) is a 32 unit family property located in New Caney, TX. In 2005 the property operated at 71% occupancy due to increased competition and ineffective site management. The property is in a very competitive market with the competition offering significant specials to retain and increase occupancy rates. There were 250 new affordable units built in the radius of 2 miles from New Caney Housing II within the last year. There were four different managers during that time and some longer than desirable periods between managers. Also, the regional supervisor over the property did a less than effective job. As of December 2005, a new manager and a new regional manager were in place. They both focused on a stronger marketing effort and management has built an incentive based compensation package for the manager which focuses on reducing vacancies, while at

the same time increasing collection percentages. In August of 2005, the investment general partner conducted a visit to New Caney II and concluded that the property was in need of substantial exterior capital improvements. In the fourth quarter of 2005 the repairs were completed and property's curb appeal has been greatly improved. Occupancy had rebounded in the fourth quarter of 2005 and increased to 87% through the third quarter of 2006. Operating expenses were in line with the investment general partner's prior year state average expense per unit. The mortgage, taxes and insurance are all current. The management company is deferring all fees until operations improve. The capital improvements were funded from the replacement reserve.

Series 37

As of September 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 7 properties at September 30, 2006, all of which were at 100% Qualified Occupancy.

For the period ended September 30, 2006 and 2005, Series 37 reflects net loss from Operating Partnerships of $(405,750) and $(310,062), respectively, which includes depreciation and amortization of $898,913 and $669,636, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Columbia Wood, LP (Columbia Wood Townhomes) is a 120 unit property located in Newnan, GA. Through the third quarter of 2006, the partnership expended annualized cash of $1,175 per unit as a result of high operating expenses, concessions and bad debt. This expenditure represents a reduction of 6% from the 2005 levels. Operating expenses have risen from 2005 levels and exceed the state average by 13% through the third quarter of 2006. This rise in operating expenses has been off-set by a 12% rise in income per unit, which is the result of a significant increase in occupancy levels. Historically, occupancy has been a problem at this property due to competition from low priced town homes nearby and an immature Newnan, GA, affordable housing market. Occupancy averaged 86% in 2005, but has risen to 97% through the third quarter of 2006 as new jobs have brought additional qualified residents to the market. Despite recent increases in occupancy levels, management continues to offer rental concessions to attr act and retain residents. Due to the competitive nature of the market, it is anticipated that concessions will remain a fixture in the market for some time. Management continues to aggressively market the property through local media and promote community building activities, including summer breakfast and lunch programs for children and holiday parties. Additional focus placed on improving collections has helped management to maximize rental income. All real estate taxes, insurance and mortgage payments are current. The operating general partner's obligation to fund operating deficits is unlimited in amount until the time of rental achievement, which has not yet occurred.

Stearns Assisted Housing Associates, L.P. (Stearns Assisted Housing), is a 20-unit property in Millinocket, ME providing congregate housing to seniors. In 2005, occupancy averaged 96% and the property expended $14,215 due to high maintenance and utility expenses. The site was originally a high school, and the high ceilings make the site expensive to heat in the winter months. Through the third quarter of 2006, occupancy averaged 92%. Following the historical trend, seasonal utility and maintenance expenses began to normalize in the warmer months, and the partnership was able to recoup a portion of the cash deficit in the third quarter of 2006. In 2005, the operating general partner advanced money to the partnership to fund the cash deficit. The operating general partner's operating deficit guaranty is unlimited in time and amount.

Series 38

As of September 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 10 properties at September 30, 2006, all of which were at 100% qualified occupancy.

For the period ended September 30, 2006 and 2005, Series 38 reflects net loss from Operating Partnerships of $(185,266) and $(234,245), respectively, which includes depreciation and amortization of $594,389 and $489,531, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 38 has invested in 2 Operating Partnerships (the "Calhoun Partnerships") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). The operating partnerships are Hammond Place Apartments Partnership and Willowbrook II Apartments Partnership. Willowbrook II Apts sustained minor damage to carpets, shingles, siding and roof bents due to Hurricane Rita. Carpets were cleaned, roof was repaired for $2,775 and siding & soffit was repaired for $2,500. Exterior repairs were completed on July 13, 2006. All repairs for Willowbrook II Apts will be paid for out of operations. Hammond Place Apts sustained major damage to shingles, roof vents, decking, trees, fences and flooring due to Hurricane Katrina. A tree was removed and all structural damage and sheetrock was repaired. The missing shingles and vents were replaced and all loose vents were secured. The chain link fence was repaired and vinyl siding and fascia metal repair is being replaced for $4,170. The Partnership did not receive insurance proceeds for the damage. The investment general partner is trying to ascertain how the operating general partner paid for the repairs. The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 80 apartment units in total. The low income housing tax credit available annually to Series 38 from the Calhoun Partnerships is approximately $386,388, which is approximately 16% of the total annual tax credit available to investors in Series 38.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the investment general partner that the Reimer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the investment general partner learned that the US Attorney intended to bring criminal charges against some members of the Reimer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 38 is not an investor. The investment general partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.

In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.

The investment general partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid

amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the investment general partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.

In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.

Series 39

As of September 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 9 properties at September 30, 2006, all of which were at 100% Qualified Occupancy.

For the period ended September 30, 2006 and 2005, Series 39 reflects net loss from Operating Partnerships of $(342,389) and $(383,635), respectively, which includes depreciation and amortization of $543,321 and $405,369, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 39 has invested in 2 Operating Partnerships (the "Calhoun Partnerships") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). The operating partnerships are Tally-Ho II Partnership and Timber Trails I Partnership. Timber Trails I Apts sustained minor shingle damage due to Hurricane Rita. The missing shingles were replaced on September 26, 2005 and were paid for out of operations. No insurance proceeds were collected. The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 58 apartment units in total. The low income housing tax credit available annually to Series 39 from the Calhoun Partnerships is approximately $126,268, which is approximately 6% of the total annual tax credit available to investors in Series 39.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the investment general partner that the Reimer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the investment general partner learned that the US Attorney intended to bring criminal charges against some members of the Reimer Calhoun Group for falsifying the certified cost basis upon which the Louisiana

Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 39 is not an investor. The investment general partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certification and the amount of tax credit generated.

In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.

The investment general partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the investment general partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.

In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership

accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.

Arbors at Ironwood, LP (Arbors at Ironwood), is an 88-unit family property located in Mishawaka, IN. In December, 2005 occupancy declined slightly to 91% and remained at that level through first quarter of 2006. However, operations improved in the second and third quarters of 2006, with average occupancy averaging 92%. The site manager continues to implement resident appreciation activities and marketing traffic is good due in part to positive word-of-mouth. The property continues to operate above breakeven and taxes, insurance, and mortgage payments are all current. Although property occupancy, operations and overall curb appeal have greatly improved, the investment general partner continues to work closely with the operating general partner and management company. Occupancy reports are received each week and monthly conference calls are held with Sterling Management staff to review progress. The property is expected to maintain, at least, above 90% occupancy and breakeven operations through 2006.

Series 40

As of September 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 16 properties at September 30, 2006, all of which at 100% Qualified Occupancy.

For the period ended September 30, 2006 and 2005, Series 40 reflects net loss from Operating Partnerships of $(351,432) and $(394,560), respectively, which includes depreciation and amortization of $692,198 and $728,074, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 40 has invested in 3 Operating Partnerships (the "Calhoun Partnerships") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). The operating partnerships are Center Place Apartments II LP and Oakland Partnership. Oakland Apts sustained minor shingle and sheetrock damage due to Hurricane Rita. All repairs were completed on January 14, 2006 and were paid for out of operations. No insurance proceeds were collected. The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana or Texas and consist of approximately 126 apartment units in total. The low income housing tax credit available annually to Series 40 from the Calhoun Partnerships is approximately $255,292, which is approximately 10% of the total annual tax credit available to investors in Series 40.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the investment general partner that the Reimer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the investment general partner learned that the US Attorney intended to bring criminal charges against some members of the Reimer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 40 is not an investor. The investment general partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.

In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison

sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.

The investment general partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the investment general partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.

In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.

Arbors at Ironwood, LP (Arbors at Ironwood), is an 88-unit family property located in Mishawaka, IN. In December, 2005 occupancy declined slightly to 91% and remained at that level through first quarter of 2006. However, operations improved in the second and third quarters of 2006, with average occupancy averaging 92%. The site manager continues to implement resident appreciation activities and marketing traffic is good due in part to positive word-of-mouth. The property continues to operate above breakeven and taxes, insurance, and mortgage payments are all current. Although property occupancy, operations and overall curb appeal have greatly improved, the investment general partner continues to work closely with the operating general partner and management company. Occupancy reports are received each week and monthly conference calls are held with Sterling Management staff to review progress. The property is expected to maintain, at least, above 90% occupancy and breakeven operations through 2006.

Series 41

As of September 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 22 properties at September 30, 2006 all of which were at 100% Qualified Occupancy.

For the period ended September 30, 2006 and 2005, Series 41 reflects net loss from Operating Partnerships of $(773,845) and $(656,360), respectively, which includes depreciation and amortization of $964,189 and $971,660, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 41 has invested in 2 Operating Partnerships (the "Calhoun Partnerships") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). The operating partnerships are Bienville Partnership and Red Hill Apartments I Partnership. Bienville Apts and Red Hill Apts sustained minor damage to shingles, roof vents, windows, trees and siding due to Hurricane Rita. All repairs for Bienville Apts and Red Hill Apts were completed in the fourth Quarter of 2005 and will be paid for out of operations. No insurance proceeds were collected. The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 64 apartment units in total. The low income housing tax credit available annually to Series 41 from the Calhoun Partnerships is approximately $128,767, which is approximately 5% of the total annual tax credit available to investors in Series 41.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the investment general partner that the Reimer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the investment general partner learned that the US Attorney intended to bring criminal charges against some members of the Reimer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 41 is not an investor. The investment general partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.

In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.

The investment general partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing

Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the investment general partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.

In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.

San Diego/Fox Hollow, LP (Hollywood Palms Apts.) and its limited partner, BCP/Fox Hollow LLC (Plaintiff) filed a lawsuit against the former operating general partner and its affiliates for breaches of various agreements. In December of 2004, a judgment was filed in the Superior Court of the State of California (San Diego County) awarding the plaintiffs the amount of $3,507,426 plus post-judgment interest at an annual rate of 10%. In addition, attorney's fees for the plaintiffs were awarded in the amount of $1,125,000 plus $123,697 in costs. The investment general partner is currently pursuing payment of the aforementioned judgments through a mediation process scheduled for this fall.

In the first quarter of 2005, six families were temporarily relocated for two weeks from one building as a precaution while repairs were undertaken to stabilize hillside soils due to the movement of a retaining wall. An affiliate of the investment general partner funded these emergency repairs and continues to do so on an as needed basis. The partnership has asserted in court that the retaining wall was not constructed properly and has filed suit against the original general contractor of the property, who was replaced before completion of construction. The operating general partner is reviewing bids for the final stabilization work and the property continues to operate above breakeven.

The operating general partner of Breeze Cove Limited Partnership entered into an agreement to sell the property and the transaction closed in March 2006. As part of the purchase agreement, the buyer is required to maintain the property as affordable housing through the end of the tax credit compliance period, and to provide a recapture bond to avoid the recapture of the tax credits that have been taken. After payment of the outstanding mortgage balance of approximately $1,828,883, the proceeds to the investment general partner were $512,415, all of which were allocated to Series 20. Annual losses generated by the Operating Partnership, which were applied against the investment general partner's investment in the operating partnership in accordance with the equity method of accounting, had previously reduced the investment limited partner's investment in the operating partnership to zero.

Accordingly, no gain or loss on the sale of the investment general partner interest has been recorded.

Brookstone Place II LDHA, LP (Brookstone Place II Apartments), is a 72 unit family property located in Port Huron, MI. The property has operated below expectations for several years due to regional economic weakness, the market's saturation with moderate income properties and the operating general partner's inability to identify and maintain consistent management at the site and regional levels. The site management and maintenance positions experienced significant turnover in 2005. Occupancy averaged 88% in 2005 and stood at 81% in December 2005. During the fourth quarter of 2005, the operating general partner informed the investment general partner that it was unwilling to continue funding operating deficits. Starting in October 2005, the partnership defaulted on its mortgage payments resulting in default and acceleration notices from the lender.

In April 2006, the lender to the first phase of the project (Brookstone I) initiated foreclosure on that phase, creating a high level of uncertainty among the tenants of both phases. As a result, Brookstone II's occupancy has dropped to approximately 65% as of the third quarter of 2006.

In May 2006, the lender to Brookstone II indicated that it too intends to proceed with foreclosure and advertised a foreclosure sale for June 2006. The investment general partners' analysis indicated that the costs of maintaining the property outweighed the benefits of receiving the remaining tax credits and determined that it was in the best interest of the investment general partner to forfeit the property if the lender refused to restructure the debt. The foreclosure sale took place on August 17, 2006, with the lender bidding in the property for the amount of the debt. There is a 6 month redemption period during which the partnership may redeem the property from foreclosure.

After the foreclosure sale, the new operating general partner (Premier Management) expressed interest in taking control of Brookstone II as well. Premier reached agreement with the lender to repay the bank in full during the redemption period and provided an LOI contemplating the transfer of the operating general partner and investment general partner interests to Premier and a new investor/limited partner respectively. Although under the contemplated transaction, the existing investment general partner will not receive significant consideration for the transfer of its interest (and future tax credits) to the new investor, the existing investment general partner will be able to avoid recapture at no cost to itself, because the new entity has agreed both to keep the property affordable and to provide a recapture bond for the benefit of the existing investment general parnter. The investment general partner believes this transaction, if it can be closed, represents a significant improvement over what wil l otherwise occur, as it would avoid recapture of credits.

Rural Housing Partners of Mendota, LP (Northline Terrace), is a 24 unit family property located in Mendota, IL. In 2005, the property had an average occupancy of 82%. Through the third quarter 2006 occupancy averaged 85% and the property is operating below breakeven. Occupancy issues at the property stem from a lack of qualified applicants in the area. Management has increased advertising in the hope of reaching a new audience that was unaware of the complex. Also, management contacts the local county and community agencies bi-weekly in an effort to obtain new tenants. The investment general partner will continue to work with the operating general partner to stabilize operations. The mortgage, property taxes, and insurance are current.

Cascade Commons, LP (Cascades Crossing) is a 320-unit affordable multifamily development located in Sterling, Va., a suburb of Washington, D.C. The operating general partner refinanced the existing mortgage, increasing debt from $14,985,000 to $23,000,000. The operating general partner, as part of the approval process, conceded a priority return of equity and a 50/50 cash flow split (after accounting for the incentive management fee), in exchange for a $5,000,000 priority return of equity paid upon the refinancing of the property, a 30% share of future cash flow,

and a 30% share of future capital proceeds. In addition, exit language was negotiated into the Partnership Agreement to allow the investment general partner, at its discretion, to exit the partnership upon expiration of the compliance period. Upon completion of the refinance, the investment general partner was paid $5,429,737 in refinance proceeds and estimated cash flow through 2004. The balance of the proceeds were paid to other investment general partners, one of which is affiliated and one of which is non-affiliated with the investment general partner. The amount received by each investment general partner was based on their percentage ownership in the Partnership. Of the remaining proceeds, the net distribution to investors was approximately $139,000. This represented a per BAC distribution of $.05. The total return to the investors was distributed based on the number of BAC's held by each investor. The remaining proceeds will be retained to improve the Series reserves, and in the event that t he cash flow estimate was overstated, to make a cash flow reimbursement back to the Partnership. Occupancy averaged 97% through the third quarter of 2006.

Series 42

As of September 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 23 properties at September 30, 2006. Out of the total 22 were at 100% Qualified Occupancy. The series also had 1 property under construction at September 30, 2006.

For the period ended September 30, 2006 and 2005, Series 42 reflects net loss from Operating Partnerships of $(520,122) and $(382,153), respectively, which includes depreciation and amortization of $884,421 and $962,746, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 42 has invested in 2 Operating Partnerships (the "Calhoun Partnerships") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). The Operating Partnerships are Natchez Place II Partnership and Wingfield Apartments Partnership II. Natchez Apts sustained minor damage to shingles, roof vents, siding, and carpets due to Hurricane Rita. All repairs for Natchez Apts were completed on October 22, 2005 and were paid for out of operations. Wingfield Apts II sustained major damage to shingles, vents, siding and roof leaks. Roof damage was covered. The roofing bid submitted was not approved so the partnership has submitted a second roofing bid from Gulf Coast Builders for $36,249, which they are currently awaiting approval. The operating general partner has completed all insurance claims and is awaiting payment of the claims. The affordable housing properties owned b y the Calhoun Partnerships are located in Louisiana and consist of approximately 74 apartment units in total. The low income housing tax credit available annually to Series 42 from the Calhoun Partnerships is approximately $286,417, which is approximately 13% of the total annual tax credit available to investors in Series 42.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the investment general partner that the Reimer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the investment general partner learned that the US Attorney intended to bring criminal charges against some members of the Reimer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 42 is not an investor. The investment general partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.

In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner

obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.

The investment general partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the investment general partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.

In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.

San Diego/Fox Hollow, LP (Hollywood Palms Apts.) and its limited partner, BCP/Fox Hollow LLC (Plaintiff) filed a lawsuit against the former operating general partner and its affiliates for breaches of various agreements. In December of 2004, a judgment was filed in the Superior Court of the State of California (San Diego County) awarding the plaintiffs the amount of $3,507,426 plus post-judgment interest at an annual rate of 10%. In addition, attorney's fees for the plaintiffs were awarded in the amount of $1,125,000 plus $123,697 in costs. The investment general partner is currently pursuing payment of the aforementioned judgments through a mediation process scheduled for this fall.

In the first quarter of 2005, six families were temporarily relocated for two weeks from one building as a precaution while repairs were undertaken to stabilize hillside soils due to the movement of a retaining wall. An affiliate of the investment general partner funded these emergency repairs and continues to do so on an as needed basis. The partnership has asserted in court that the retaining wall was not constructed properly and has filed suit against the original general contractor of the property, who was replaced before completion of construction. The operating general partner is reviewing bids for the final stabilization work and the property continues to operate above breakeven.

Dorchester Court Limited Dividend Housing Association, LP (Dorchester Court Apartments) is a 131 unit apartment complex located in Port Huron, MI. Seventy-five percent of the units are devoted to elderly housing. Due to construction delays and slow initial lease-up, the property experienced difficulty generating positive cash flow. One of the operating general partners was unable to contribute his share of the advances required under the operating deficit guarantee. In July 2005, the defaulting operating general partner was replaced with a new operating general partner. The new operating general partner has significant resources and experience in real estate and contributed approximately $190,000 in funds to the Operating Partnership to bring the mortgage and accounts payable current. The occupancy for the third quarter of 2006 was 98% and average 2006 year to date occupancy is 94%. In order to attract new residents, management has continued to market the property aggressively in local newspapers and reduced the required security deposit to $99 for new residents with good credit. Due to low rental rates, which are the product of a depressed local economy, the property is operating at a deficit. A reduction in the monthly insurance premium took effect in April 2006. With this reduction, the property generated cash for the months of April and May. The property expended cash in the third quarter of 2006; however, this is largely due to management performing significant capital improvements to continue to attract new residents and payment of a debt refinancing deposit.

The operating general partner and the new management team continue to seek ways to differentiate the property from its competition and increase rental revenue. Due to negative cash flow, the operating general partner has not caused the partnership to fund the replacement reserve account, which currently has a $0 balance. The operating general partner is trying to refinance the debt at a lower interest rate. If successful, the refinance should result in significant improvements in operations and adequate funding of the replacement reserve. The mortgage, taxes and insurance payments are all current. The operating general partner continues to advance funds to the partnership to meet operating deficits.

HS Housing, LP (Helios Station Apartments), is a 30 unit family property located in Lafayette, CO. On May 1, 2006 the investment general partner was informed that the housing authority issued an IRS Form 8823 for an unqualified unit due to student status. In July of 2006 the housing authority issued a "corrected" IRS Form 8823 stating that the non-compliance issue had been corrected. The one unit was out of compliance from June of 2005 through May of 2006. Although the property generated $454 per unit in 2005, it suffered from declining occupancy and high operating expenses. Occupancy averaged 92% in 2005, but closed the year at 83% in December 2005, while per unit operating expenses were 35% higher than the state average. Operations through the third quarter of 2006 yielded an annualized expenditure of $3,067 per unit, due to continued high operating expenses and low occupancy. Occupancy has averaged 81% through the third quarter of 2006. Over the same period, annualized operating expen ses increased due to rising utilities and very high maintenance costs and closed the quarter 100% higher than the state average. The investment general partner will work with management to improve resident recruitment and retention and to control operating expenses. A new site manager with a favorable track record at another nearby property took over management responsibilities at Helios Station during the third quarter of 2006 and is working to fill vacant units and manage expenses. All real estate taxes, insurance, and mortgage payments are current. The operating general partner's obligation to fund operating deficits is unlimited in time and amount.

Los Lunas Apartments, LP (Hillridge Apartments), located in Los Lunas, NM, is a 38-unit property. The operating general partner felt the management company was not overseeing the property sufficiently and stepped in as the management agent in June 2005. Since the new management has taken over, operations have improved through the fourth quarter of 2005 with average occupancy of 87%, however, the property was not able to breakeven. In the first quarter of 2006, average physical occupancy further improved to 96%. However, in the second quarter 2006, due to some eviction, average occupancy decreased to 87%. In the third quarter average physical occupancy further decreased to 86%. According the operating general partner, the occupancy downturn is the result of natural cycles that was noticed from time to time at the properties. Physical occupancy is expected to stabilize activity in the fourth quarter 2006. The operating general partner has also renegotiated the laundry contract with the vendor and all of the machines were upgraded. The property has received funds from the vendor for re-signing the contract. The property also received funds from the vendor for re-signing the contract.

Jeremy Associates, LP (Coopers Crossing Apartments) is a 93-unit family development located in Las Colinas, Texas. Average occupancy through the third quarter of 2006 was 95%. The property is operating below breakeven due to high operating costs.

The property experiences high operating costs attributed to foundation and stress cracks identified in an engineer's report issued in 2003. The report revealed foundation movement in five buildings. Between 2001 and 2003 a total of $61,310 in foundation work was completed. In 2004 capital expenditures reflect monies for immediate repair to rebuild three stair towers and two landings related to foundation movement at total cost of $23,140; and metal perimeter fence repair on the west side of the community that re-braced due to ground movement and car damage at total cost of $5,290 were completed in March 2004. Other capital work consisted of carpet replacements, vinyl replacement, boiler repairs, a new heat exchanger and swimming pool repair work related to code changes. The overall estimate to complete the foundation work and address the interior issues as a result of the movement was estimated at $170,000. Several emergency repairs were needed to rebuild three deteriorating stair towers, resulting f rom foundation movement. The operating general partner continues to monitor movement in the five buildings identified in the engineer's report and address the issues as they presented. In 2006, $111,300 in repairs were included in the budget to address the structural issues; however, to date the high operating expenses are not allowing for the cash to be available to make the improvements. A soil test was completed in September 2006 to address the shifting buildings. Once the results from the soil test are received, the operating general partner will determine what course of action needs to be taken to fix the shifting buildings. The operating general partner has stated they fund the cost of necessary repairs to the foundations and buildings once the proper course of action is determined. The investment general partner continues to visit the property and review the work completed to date. Discussions regarding the future improvements with the operating general partner are ongoing. The investment general partner will continue to work with the operating general partner through the completion of the improvements and the reduction of the operating expenses. The mortgage, trade payables, property taxes and insurance are current.

Centenary Housing, LP. (Centenary Tower Apartments) is a 100 unit senior property located in St. Louis, MO. The partnership expended cash of $150 per unit in 2005, due to operating expenses which exceeded the state average by 25%. Through the third quarter of 2006, operating expenses have been brought in line with the state average. Operating expenses continue to be driven by administrative, maintenance and utilities expenses, and bad debt. The investment general partner continues to work with management to sustain reductions in administrative and maintenance costs, to improve collections, and to promote energy efficient practices. Decreased operating expenses have allowed the partnership to generate annualized cash of $36 per unit through the third quarter of 2006. All real estate tax, insurance and mortgage payments are current. The operating general partner's obligation to fund operating deficits in unlimited in time and amount.

Wingfield Apartments II (Wingfield Apartments Partnership II) is a 42 unit development located in Kinder, Louisiana, approximately 130 miles from Baton Rouge. The property suffered from an inability to meet projected rents in its rural marketplace, resulting in expended cash of ($35,000) in 2005. Occupancy has improved in 2006 with an average of 99% through three quarters of 2006. Effective September 1, 2006, the property received a much needed rent increase. After reviewing the 2006 unaudited financials, the property is expected to operate with a deficit similar to the 2005 audited results. Operating expenses have continued to run higher than state average thus reducing the possibility of the property reaching break even status in 2006. Management will need to control expenses and continue to sustain high occupancy averages in order to reduce the year end cash deficit.

Series 43

As of September 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 23 properties at September 30, 2006. Out of the total 22 were at 100% Qualified Occupancy. The series also had 1 property under construction at September 30, 2006.

For the period ended September 30, 2006 and 2005, Series 43 reflects net loss from Operating Partnerships of $(698,610) and $(687,403), respectively, which includes depreciation and amortization of $1,277,877 and $1,246,302, respectively. This is an interim period estimate; it is not indicative of the final year end results.

San Diego/Fox Hollow, LP (Hollywood Palms Apts.) and its limited partner, BCP/Fox Hollow LLC (Plaintiff) filed a lawsuit against the former operating general partner and its affiliates for breaches of various agreements. In December of 2004, a judgment was filed in the Superior Court of the State of California (San Diego County) awarding the plaintiffs the amount of $3,507,426 plus post-judgment interest at an annual rate of 10%. In addition, attorney's fees for the plaintiff were awarded in the amount of $1,125,000 plus $123,697 in costs. The investment general partner is currently pursuing payment of the aforementioned judgments through a mediation process scheduled for this fall.

In the first quarter of 2005, six families were temporarily relocated for two weeks from one building as a precaution while repairs were undertaken to stabilize hillside soils due to the movement of a retaining wall. An affiliate of the investment general partner funded these emergency repairs and continues to do so on an as needed basis. The partnership has asserted in court that the retaining wall was not constructed properly and has filed suit against the original general contractor of the property, who was replaced before completion of construction. The operating general partner is reviewing bids for the final stabilization work and the property continues to operate above breakeven.

Dorchester Court Limited Dividend Housing Association, LP (Dorchester Court Apartments) is a 131 unit apartment complex located in Port Huron, MI. Seventy-five percent of the units are devoted to elderly housing. Due to construction delays and slow initial lease-up, the property experienced difficulty generating positive cash flow. One of the operating general partners was unable to contribute his share of the advances required under the operating deficit guarantee. In July 2005, the defaulting operating general partner was replaced with a new operating general partner. The new operating general partner has significant resources and experience

in real estate and contributed approximately $190,000 in funds to the Operating Partnership to bring the mortgage and accounts payable current. The occupancy for the third quarter of 2006 was 98% and average 2006 year to date occupancy is 94%. In order to attract new residents, management has continued to market the property aggressively in local newspapers and reduced the required security deposit to $99 for new residents with good credit. Due to low rental rates, which are the product of a depressed local economy, the property is operating at a deficit. A reduction in the monthly insurance premium took effect in April 2006. With this reduction, the property generated cash for the months of April and May. The property expended cash in the third quarter of 2006; however, this is largely due to management performing significant capital improvements to continue to attract new residents and payment of a debt refinancing deposit.

The operating general partner and the new management team continue to seek ways to differentiate the property from its competition and increase rental revenue. Due to negative cash flow, the operating general partner has not caused the partnership to fund the replacement reserve account, which currently has a $0 balance. The operating general partner is trying to refinance the debt at a lower interest rate. If successful, the refinance should result in significant improvements in operations and adequate funding of the replacement reserve. The mortgage, taxes and insurance payments are all current. The operating general partner continues to advance funds to the partnership to meet operating deficits.

Lakewood Apartments-Saranac, LP (Lakewood Apartments) is a 24 unit property located in Saranac, MI. The property operates without rental assistance and competes with three area properties which offer Section 8 subsidies. Historically, management has had difficulty qualifying prospective residents. Throughout the third quarter 2006, physical occupancy has decreased to 80%. Marketing efforts continue and include one month rental concessions, move-in specials, and application fee waivers. Operating expenses are higher than average due to maintenance costs, as well as an increase in advertising and payroll expenses. Further, economic occupancy remains low due to rental concessions. Although the replacement reserve is underfunded, the partnership is funding under an approved workout plan with Rural Development. Taxes, insurance and mortgage payments are current. The operating general partner's Operating Deficit Guaranty is in effect through February 2009, with a funding limit of $200,000. To date, the o perating general partner has funded $11,800, of which $10,600 was funded in 2005. The remaining deficit has been funded from cash and accrued management fees.

Carpenter School I Elderly Apartments, L.P. (Carpenter School I Elderly Apartments) is a 38 unit property located in Natchez, MS. The operating partnership has operated below breakeven since 2004. A new regional manager for the operating general partner was hired in August 2005. The regional manager found that the property suffered from high tenant receivables and high maintenance costs. Upon further investigation into these issues in order to improve operation, they discovered falsification of records by the site manager and improper maintenance at the site resulting in high expenses. The two involved employees were arrested, indicted, and are scheduled for trial in the near future. The regional manager has instituted a number of policy changes in order to better control operations. In addition to changes in rent collection, supply purchases, and maintenance expenses, the operating general partner now performs background checks on prospective employees. Due to some deaths at the property in the t hird quarter 2006 occupancy dropped to 77%. Recent newspaper advertisement has improved traffic and occupancy has is expected to increase in fourth quarter to 95%. The regional manager believes that with the implemented changes the property will begin to operate at breakeven in the first quarter 2007. The investment general partner will continue to work with the operating general partner in an effort to bring operations above breakeven.

Parkside Plaza, L.P. (Parkside Plaza Apartments) is a 39-unit co-op property located in Harlem, New York. The property operated below breakeven in 2005 and in the first two quarters of 2006 due to low rental income, collections loss, and high expenses. With reduced administrative and utility costs in the third quarter of 2006, the property operated above break-even and payables were reduced. The partnership received approval of a 10% rent increase effective January 2006 which added

approximately $20,000 to the annual rent revenue. The investment general partner visited the property in March 2006 to view the property and to meet with the general partner and management to discuss issues at the property. Management is working to reduce tenant delinquencies by aggressively filing late notices and pursuing evictions through the housing court and has had success in the second quarter in obtaining judgments against six non-paying households. In line with the cooperative documents, management is assessing unit maintenance charges to the residents. Other methods of improving collections, including posting payments received in common areas, improving relations with residents, and a proposal to assess property debt and collection charges to residents, are also being reviewed and considered. In the fourth quarter 2005, the operating general partner discovered that $24,000 is owed to the partnership for overpayment of taxes on a tax exempt property. Management has requested a refund. Manage ment continues to explore options to reduce utility costs, including tenant education on conservation and applications were filed in the first quarter to a non-profit agency for assistance and grants to cover increased utility expenses. The investment general partner continues to work with the operating general partner to improve operations. All mortgages and insurance payments are current. The property pays no property taxes as the result of a tax-exempt status.

Series 44

As of September 30, 2006 and 2005, the average Qualified Occupancy was 98.9% and 100%, respectively. The series had a total of 10 properties at September 30, 2006. Out of the total, 9 were at 100% Qualified Occupancy. The series also had 1 property in active lease up at September 30, 2006.

For the period ended September 30, 2006 and 2005, Series 44 reflects net loss from Operating Partnerships of $(596,089) and $(347,271), respectively, which includes depreciation and amortization of $836,780 and $695,034, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 45

As of September 30, 2006 and 2005, the average Qualified Occupancy was 100% and 98.8%, respectively. The series had a total of 31 properties at September 30, 2006, all of which were at 100% Qualified Occupancy.

For the period ended September 30, 2006 and 2005, Series 45 reflects net loss from Operating Partnerships of $(724,871) and $(329,765), respectively, which includes depreciation and amortization of $1,296,599 and $667,600 respectively. This is an interim period estimate; it is not indicative of the final year end results.

Brookstone Place II LDHA, LP (Brookstone Place II Apartments), is a 72 unit family property located in Port Huron, MI. The property has operated below expectations for several years due to regional economic weakness, the market's saturation with moderate income properties and the operating general partner's inability to identify and maintain consistent management at the site and regional levels. The site management and maintenance positions experienced significant turnover in 2005. Occupancy averaged 88% in 2005 and stood at 81% in December 2005. During the fourth quarter of 2005, the operating general partner informed the investment general partner that it was unwilling to continue funding operating deficits. Starting in October 2005, the partnership defaulted on its mortgage payments resulting in default and acceleration notices from the lender.

In April 2006, the lender to the first phase of the project (Brookstone I) initiated foreclosure on that phase, creating a high level of uncertainty among the tenants of both phases. As a result, Brookstone II's occupancy has dropped to approximately 65% as of the third quarter of 2006.

In May 2006, the lender to Brookstone II indicated that it too intends to proceed with foreclosure and advertised a foreclosure sale for June 2006. The investment general partners' analysis indicated that the costs of maintaining the property outweighed the benefits of receiving the remaining tax credits and determined that it was in the best interest of the investment general partner to forfeit the property if

the lender refused to restructure the debt. The foreclosure sale took place on August 17, 2006, with the lender bidding in the property for the amount of the debt. There is a 6 month redemption period during which the partnership may redeem the property from foreclosure.

After the foreclosure sale, the new operating general partner (Premier Management) expressed interest in taking control of Brookstone II as well. Premier reached agreement with the lender to repay the bank in full during the redemption period and provided an LOI contemplating the transfer of the operating general partner and investment general partner interests to Premier and a new investor/limited partner respectively. Although under the contemplated transaction, the existing investment general partner will not receive significant consideration for the transfer of its interest (and future tax credits) to the new investor, the existing investment general partner will be able to avoid recapture at no cost to itself, because the new entity has agreed both to keep the property affordable and to provide a recapture bond for the benefit of the existing investment general parnter. The investment general partner believes this transaction, if it can be closed, represents a significant improvement over what wil l otherwise occur, as it would avoid recapture of credits.

Childress Apartments LTD, (Fairview Manor Apartments) is a 48 unit development located in Childress, TX. The property operated at a deficit of ($26,421) in 2005. The property achieved 88% occupancy as of the end of third quarter of 2006, from an average occupancy of 74% in 2005. If occupancy can sustain at current levels the property will begin to function as a more viable asset. The operating general partner continues to fund all deficits.

Harbet Avenue, LP (William B. Quarton Place) is a 28 unit family property located in Cedar Rapids, Iowa. The investment general partner has learned that during 2004 and through February 2005 inappropriate checks and wires were made to the operating general partner from the partnership's escrow and operating accounts. The total of the misappropriated funds has been determined to be $142,758. The operating general partner is a not-for-profit organization that was experiencing financial difficulties. The accounting manager was able to make the monetary transfers due to a lack of oversight from the interim director. The accounting manager was fired in March 2005. The operating general partner has hired a new executive director and implemented steps to ensure that this cannot happen in the future. In order to repay the funds back to the partnership, the Board of the not-for-profit has formed a Property Options Committee to review all of their assets for a potential sale. Proceeds from the sale of propert ies and from unrestricted donations will be targeted for the refunding of the partnership accounts. The Board has begun negotiating a sale of one of their largest multi-family residential properties and is currently working with their attorneys to establish a timeline for the sale. Through the end of 2005, $20,825 has been repaid to the partnership, leaving a balance of $121,934. Payments through September 2006 total $63,785 with the balance remaining of $58,549. The operating general partner will continue to repay approximately $2,000 monthly through returned management fees, facilitator charges, and cash contributions while exploring other options of funding this liability. Representatives of the investment general partner visited the site and met with the new Executive Director of the not-for-profit organization. The property shows well and is currently operating above breakeven. A default notice was sent to the operating general partner on September 1, 2005. The default notice was followed up by a demand letter sent to the operating general partner in July 2006. The investment general partner is working with attorneys to determine the best way to ensure the funds are restored to the Partnership in a prompt manner.

Series 46

As of September 30, 2006 and 2005, the average Qualified Occupancy was 97.4% and 100%, respectively. The series had a total of 14 properties at September 30, 2006. Out of the total, 13 were at 100% Qualified Occupancy. The series also had 1 property in active lease up at September 30, 2006.

For the period ended September 30, 2006 and 2005, Series 46 reflects net loss from Operating Partnerships of $(276,780) and $(67,864), respectively, which includes depreciation and amortization of $563,858 and $389,633, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Panola Apartments (Panola Housing, Ltd) is a 32 unit development located in Carthage, Texas. The property operated at a deficit of ($26,152) in 2005. Occupancy has been strong averaging 98% in 2005 and 99% through the third quarter of 2006. Upon review of the third quarter unaudited financial information, it appears as though the property's performance will be similar to 2005 year end audited results. Operating expenses still appear to be above state averages and rental income does not show any apparent improvement. HUD provides Panola with rental assistance and therefore rents are also controlled by HUD. Since HUD has not allowed a rent increase, management will need to find ways to reduce operating expenses in order for the property to diminish the operating deficit heading into year end 2006. The general partner has an operating deficit guarantee that is unlimited in time and amount.

Principal Critical Accounting Policies and Estimates

The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, which requires the Fund to make various estimates and assumptions. A summary of significant accounting policies is provided in Note 1 to the financial statements. The following section is a summary of certain aspects of those accounting policies that may require subjective or complex judgments and are most important to the portrayal of the Fund's financial condition and results of operations. The Fund believes that there is a low probability that the use of different estimates or assumptions in making these judgments would result in materially different amounts being reported in the financial statements.

The Fund is required to assess potential impairments to its long-lived assets, which is primarily investments in limited partnerships. The Fund accounts for its investment in limited partnerships in accordance with the equity method of accounting since the Partnership does not control the operations of the Operating Partnerships.

If the book value of the Fund's investment in an Operating Partnership exceeds the estimated value derived by management, which generally consists of the remaining future low-income housing credits allocable to the Fund and the estimated residual value to the Fund, the Fund reduces its investment in the Operating Partnership and includes such reduction in equity in loss of investment of limited partnerships.

As of March 31, 2004, the Fund adopted FASB Interpretation No. 46 - Revised ("FIN46R"), "Consolidation of Variable Interest Entities." FIN 46R provides guidance on when a company should include the assets, liabilities, and activities of a variable interest entity ("VIE") in its financial statements and when it should disclose information about its relationship with a VIE. A VIE is a legal structure used to conduct activities or hold assets, which must be consolidated by a company if it is the primary beneficiary because it absorbs the majority of the entity's expected losses, the majority of the expected returns, or both.

Based on the guidance of FIN 46R, the operating partnerships in which the Fund invests meet the definition of a VIE. However, management does not consolidate the Fund's interests in these VIEs under FIN 46R, as it is not considered to be the primary beneficiary. The Fund currently records the amount of its investment in these partnerships as an asset on its balance sheet, recognizes its share of partnership income or losses in the statements of operations, and discloses how it accounts for material types of these investments in its financial statements.

The Fund's balance in investment in operating limited partnerships, plus the risk of recapture of tax credits previously recognized on these investments, represents its maximum exposure to loss. The Fund's exposure to loss on these partnerships is mitigated by the condition and financial performance of the underlying properties as well as the strength of the local general partners and their guarantee against credit recapture.

Item 3	Quantitative and Qualitative Disclosure About Market Risk
	Not Applicable

Item 4	Controls & Procedures
	(a)	Evaluation of Disclosure Controls and Procedures
		As of the end of the period covered by this report, the Fund's general partner, under the supervision and with the participation of the Principal Executive Officer and Principal Financial Officer of C&M Management Inc., carried out an evaluation of the effectiveness of the Fund's "disclosure controls and procedures" as defined in the Securities Exchange Act of 1934 Rules 13a-15 and 15d-15. Based on that evaluation, the Fund's Principal Executive Officer and Principal Financial Officer have concluded that as of the end of the period covered by this report, the Fund's disclosure controls and procedures were adequate and effective in timely alerting them to material information relating to the Fund required to be included in the Fund's periodic SEC filings.
	(b)	Changes in Internal Controls
		There were no changes in the Fund's internal control over financial reporting that occurred during the quarter ended September 30, 2006 that materially affected, or are reasonably likely to materially affect, the Fund's internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings
	None
Item 1A.	Risk Factors
	Not Applicable
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds
	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
		31.a Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of John P. Manning, Principal Executive Officer, filed herewith
		31.b Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of Marc N. Teal, Principal Financial Officer, filed herewith
		32.a Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of John P. Manning, Principal Executive Officer, filed herewith
		32.b Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Marc N. Teal, Principal Financial Officer, filed herewith

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 hereunto duly authorized.

	Boston Capital Tax Credit Fund IV L.P.
	By:	Boston Capital Associates IV L.P. General Partner
	By:	BCA Associates Limited Partnership General Partner
	By:	C&M Management, Inc. General Partner
Date: January 23, 2007		By:	/s/ John P. Manning John P. Manning

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

DATE:	SIGNATURE:	TITLE:
January 23, 2007	/s/ John P. Manning	Director, President (Principal Executive Officer), C&M Management, Inc.; Director, President (Principal Executive Officer) BCTC IV Assignor Corp.
	John P. Manning
January 23, 2007	/s/ Marc N. Teal Marc N. Teal	Sr. Vice President, Chief Financial Officer (Principal Accounting and Financial Officer) C&M Management Inc.; Sr. Vice President, Chief Financial Officer (Principal Accounting and Financial Officer) BCTC IV Assignor Corp.

EX-31

Exhibit 31.a

I, John P. Manning, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Boston Capital Tax Credit Fund IV L.P.;
2. Based on my knowledge, this 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 report;
3. Based on my knowledge, the financial statements, and other financial information included in this 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 report;
4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

1. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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 report is being prepared;
2. evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
3. disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

1. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

1. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
2. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: January 23, 2007	/s/ John P. Manning
	John P. Manning
	Principal Executive Officer

EX-31

Exhibit 31.b

I, Marc Teal, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Boston Capital Tax Credit Fund IV L.P.;
2. Based on my knowledge, this 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 report;
3. Based on my knowledge, the financial statements, and other financial information included in this 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 report;
4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

1. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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 report is being prepared;
2. evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
3. disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

1. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

1. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
2. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: January 23, 2007	/s/ Marc N. Teal
	Marc N. Teal Principal Financial Officer

EX-32

EXHIBIT 32.a

CERTIFICATION 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 of Boston Capital Tax Credit Fund IV L.P. (the "Fund") on Form 10-Q for the period ended September 30, 2006 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, John P. Manning, Principal Executive Officer of the general partner of the general partner of the Fund's general partner, C&M Management Inc., certify, 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 my knowledge, after due inquiry:

(1)	The Report fully complies with the requirements of section 13(a)-15 or 15(d)-15 of the Securities and 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 Fund.

Date:
January 23, 2007	/s/ John P. Manning
	John P. Manning
	Principal Executive Officer

A signed original of this written statement required by Section 906, or other

document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Fund and will be retained by the Fund and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32

EXHIBIT 32.b

CERTIFICATION 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 of Boston Capital Tax Credit Fund IV L.P. (the "Fund") on Form 10-Q for the period ended September 30, 2006 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Marc N. Teal, Principal Financial Officer of the general partner of the general partner of the Fund's general partner, C&M Management Inc., certify, 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 my knowledge, after due inquiry:

(1)	The Report fully complies with the requirements of section 13(a)-15 or 15(d)-15 of the Securities and 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 Fund.

Date:
January 23, 2007	/s/ Marc N. Teal
	Marc. N. Teal
	Principal Financial Officer

A signed original of this written statement required by Section 906, or other

document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Fund and will be retained by the Fund and furnished to the Securities and Exchange Commission or its staff upon request.