UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- ------- EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 2003
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- ------- EXCHANGE ACT OF 1934
Commission File Number 33-89968
INDEPENDENCE TAX CREDIT PLUS L.P. IV
------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 13-3809869
- ------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
625 Madison Avenue, New York, New York 10022
- --------------------------------------- --------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212)421-5333
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
------- -------
Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Act).
Yes No X
------- -------
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
============ ============
December 31, March 31,
2003 2003
------------ ------------
(Unaudited)
ASSETS
Property and equipment - at cost,
net of accumulated depreciation
of $13,756,328 and $11,915,199,
respectively $ 67,559,449 $ 69,391,714
Cash and cash equivalents 1,810,863 2,037,966
Cash held in escrow 3,350,967 2,961,291
Deferred costs, net of accumulated
amortization of $468,453 and
$401,523, respectively 710,663 777,593
Other assets 598,437 492,936
------------ ------------
Total assets $ 74,030,379 $ 75,661,500
============ ============
2
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(continued)
============ ============
December 31, March 31,
2003 2003
------------ ------------
(Unaudited)
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Liabilities:
Mortgage notes payable $ 35,882,730 $ 36,401,006
Accounts payable and other
liabilities 8,525,820 7,429,413
Due to local general partners and
affiliates 2,338,389 2,583,149
Due to general partner and affiliates 1,989,326 1,680,574
------------ ------------
Total liabilities 48,736,265 48,094,142
------------ ------------
Minority interest 1,930,447 1,951,864
------------ ------------
Partners' capital (deficit):
Limited partners (45,844 BACs
issued and outstanding) 23,537,564 25,766,873
General partner (173,897) (151,379)
------------ ------------
Total partners' capital (deficit) 23,363,667 25,615,494
------------ ------------
Total liabilities and partners'
capital (deficit) $ 74,030,379 $ 75,661,500
============ ============
The accompanying notes are an integral part of these consolidated condensed
financial statements.
3
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Consolidated Condensed Statements of Operations
(Unaudited)
=========================== ===========================
Three Months Ended Nine Months Ended
December 31, December 31,
--------------------------- ---------------------------
2003 2002* 2003 2002*
--------------------------- ---------------------------
Revenues
Rental income $ 1,420,070 $ 1,405,711 $ 4,319,100 $ 4,172,842
Other income
(principally
interest) 43,031 52,637 141,075 156,520
----------- ----------- ----------- -----------
Total revenues 1,463,101 1,458,348 4,460,175 4,329,362
----------- ----------- ----------- -----------
Expenses
General and
administrative 320,978 362,430 1,101,690 1,114,229
General and
administrative-
related parties 155,127 147,554 477,848 446,046
Repairs and
maintenance 274,389 229,055 764,341 701,370
Operating 160,324 166,191 508,095 495,405
Taxes 38,082 37,388 128,132 121,327
Insurance 102,846 75,015 265,700 189,778
Interest 497,519 539,316 1,579,554 1,621,609
Depreciation and
amortization 640,976 635,540 1,908,059 1,906,025
----------- ----------- ----------- -----------
Total expenses 2,190,241 2,192,489 6,733,419 6,595,789
----------- ----------- ----------- -----------
Loss before
minority
interest (727,140) (734,141) (2,273,244) (2,266,427)
Minority interest in
loss of subsidiary
partnerships 8,325 2,572 21,417 18,510
----------- ----------- ----------- -----------
Net loss $ (718,815) $ (731,569) $(2,251,827) $(2,247,917)
=========== =========== =========== ===========
Net loss - limited
partners $ (711,627) $ (724,253) $(2,229,309) $(2,225,438)
=========== =========== =========== ===========
Number of BACs
outstanding 45,844 45,844 45,844 45,844
=========== =========== =========== ===========
Net loss per BAC $ (15.52) $ (15.79) $ (48.63) $ (48.54)
=========== =========== =========== ===========
* Reclassified for comparative purposes.
The accompanying notes are an integral part of these consolidated condensed
financial statements.
4
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Consolidated Condensed Statement of Changes in Partners'
Capital (Deficit)
For the Nine Months Ended December 31, 2003
(Unaudited)
============================================
Limited General
Total Partners Partner
--------------------------------------------
Partners' capital
(deficit) - April 1,
2003 $ 25,615,494 $ 25,766,873 $ (151,379)
Net loss (2,251,827) (2,229,309) (22,518)
------------ ------------ ------------
Partners' capital
(deficit) -
December 31, 2003 $ 23,363,667 $ 23,537,564 $ (173,897)
============ ============ ============
The accompanying notes are an integral part of these consolidated condensed
financial statements.
5
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Consolidated Condensed Statements of Cash Flows
(Unaudited)
==========================
Nine Months Ended
December 31,
--------------------------
2003 2002
--------------------------
Cash flows from operating activities:
Net loss $(2,251,827) $(2,247,917)
----------- -----------
Adjustments to reconcile net loss
to net cash provided by (used in)
operating activities:
Depreciation and amortization 1,908,059 1,906,025
Minority interest in loss of
subsidiary partnerships (21,417) (18,510)
Increase in cash held in escrow (330,802) (362,072)
Increase in other assets (105,501) (216,315)
Increase in accounts payable
and other liabilities 1,096,407 691,771
Increase in due to local general
partners and affiliates 11,536 0
Decrease in due to local general
partners and affiliates (4,266) (39,770)
Increase in due to general
partner and affiliates 308,752 216,877
----------- -----------
Total adjustments 2,862,768 2,178,006
----------- -----------
Net cash provided by (used in)
operating activities 610,941 (69,911)
----------- -----------
6
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Consolidated Condensed Statements of Cash Flows
(Unaudited)
(continued)
==========================
Nine Months Ended
December 31,
--------------------------
2003 2002
--------------------------
Cash flows from investing activities:
Increase in property and equipment (8,864) (5,181)
Increase in cash held in escrow (58,874) 0
Increase in due to local general
partners and affiliates 98 120,797
Decrease in due to local general
partners and affiliates (252,128) (318,173)
----------- -----------
Net cash used in investing activities (319,768) (202,557)
----------- -----------
Cash flows from financing activities:
Principal reduction of mortgage notes (518,276) (156,509)
Decrease in capitalization of
consolidated subsidiaries
attributable to minority interest 0 (123,278)
----------- -----------
Net cash used in financing
activities (518,276) (279,787)
----------- -----------
Net decrease in cash and cash
equivalents (227,103) (552,255)
Cash and cash equivalents at
beginning of period 2,037,966 2,461,056
----------- -----------
Cash and cash equivalents at
end of period $ 1,810,863 $ 1,908,801
=========== ===========
Supplemental disclosure of cash flow information:
Cash paid during period for
interest $ 661,505 $ 907,549
=========== ===========
The accompanying notes are an integral part of these consolidated condensed
financial statements.
7
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Notes to Financial Statements
December 31, 2003
(Unaudited)
Note 1 - General
The consolidated financial statements include the accounts of Independence Tax
Credit Plus L.P. IV (the "Partnership") and fourteen other limited partnerships
("subsidiary partnerships", "subsidiaries" or "Local Partnerships") owning
affordable apartment complexes that are eligible for the low-income housing tax
credit, some of which apartment complexes may also be eligible for the historic
rehabilitation tax credit. The general partner of the Partnership is Related
Independence L.L.C., a Delaware limited liability company (the "General
Partner"). Through the rights of the Partnership and/or an affiliate of the
General Partner, which affiliate has a contractual obligation to act on behalf
of the Partnership to remove the general partner of the subsidiary partnerships
and to approve certain major operating and financial decisions, the Partnership
has a controlling financial interest in the subsidiary partnerships.
For financial reporting purposes, the Partnership's fiscal quarter ends December
31. All subsidiaries have fiscal quarters ending September 30. Accounts of the
subsidiaries have been adjusted for intercompany transactions from October 1
through December 31. The Partnership's fiscal quarter ends December 31 in order
to allow adequate time for the subsidiaries' financial statements to be prepared
and consolidated.
All intercompany accounts and transactions with the subsidiary partnerships have
been eliminated in consolidation.
Increase (decrease) in the capitalization of consolidated subsidiaries
attributable to minority interest arise from cash contributions from and cash
distributions to the minority interest partners.
Losses attributable to minority interests which exceed the minority interests'
investment in a subsidiary have been charged to the Partnership. Such losses
aggregated approximately $2,000 and $1,000, $5,000 and $5,000 for the three and
nine months ended December 31, 2003 and 2002, respectively. The Partnership's
investment in each subsidiary is equal to the respective subsidiary's partners'
equity less minority interest capital, if any. In consolidation, all subsidiary
8
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Notes to Financial Statements
December 31, 2003
(Unaudited)
partnership losses are included in the Partnership's capital account except for
losses allocated to minority interest capital.
Certain information and note disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been omitted or condensed. These condensed financial statements should be
read in conjunction with the financial statements and notes thereto included in
the Partnership's Annual Report on Form 10-K for the year ended March 31, 2003.
The books and records of the Partnership are maintained on the accrual basis of
accounting in accordance with generally accepted accounting principles. In the
opinion of the General Partner of the Partnership, the accompanying unaudited
financial statements contain all adjustments (consisting only of normal
recurring adjustments) necessary to present fairly the financial position of the
Partnership as of December 31, 2003, its results of operations for the three and
nine months ended December 31, 2003 and 2002 and its cash flows for the nine
months ended December 31, 2003 and 2002. However, the operating results for the
nine months ended December 31, 2003 may not be indicative of the results for the
entire year.
9
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Notes to Financial Statements
December 31, 2003
(Unaudited)
Note 2 - Related Party Transactions
An affiliate of the General Partner has a .01% interest as a special limited
partner in each of the Local Partnerships.
The costs incurred to related parties for the three and nine months ended
December 31, 2003 and 2002 were as follows:
Three Months Ended Nine Months Ended
December 31, December 31,
------------------- -------------------
2003 2002* 2003 2002*
------------------- -------------------
Partnership manage-
ment fees (a) $ 84,280 $ 84,280 $252,840 $252,840
Expense reimburse-
ment (b) 31,706 26,027 107,945 82,951
Local administrative
fee (c) 13,000 12,000 39,000 36,000
-------- -------- -------- --------
Total general and
administrative-
General Partner 128,986 122,307 399,785 371,791
-------- -------- -------- --------
Property manage-
ment fees incurred
to affiliates of the
subsidiary
partnerships'
general
partners (d) 26,141 25,247 78,063 74,255
-------- -------- -------- --------
Total general and
administrative-
related parties $155,127 $147,554 $477,848 $446,046
======== ======== ======== ========
* Reclassified for comparative purposes.
(a) The General Partner is entitled to receive a partnership management fee,
after payment of all Partnership expenses, which together with the annual local
administrative fees will not exceed a maximum of 0.5% per annum of invested
assets (as defined in the Partnership Agreement), for administering the affairs
of the Partnership. Subject to the foregoing limitation, the partnership
management fee will be determined by the General Partner in its sole discretion
based upon its review of the Partnership's investments. Unpaid partnership
management fees for any year will be accrued without interest and will be
payable from working capital reserves or to the extent of available funds after
10
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Notes to Financial Statements
December 31, 2003
(Unaudited)
the Partnership has made distributions to the limited partners of sale or
refinancing proceeds equal to their original capital contributions plus a 10%
priority return thereon (to the extent not theretofore paid out of cash flow).
Partnership management fees owed to the General Partner amounting to
approximately $1,545,000 and $1,292,000 were accrued and unpaid as of December
31, 2003 and March 31, 2003, respectively.
(b) The Partnership reimburses the General Partner and its affiliates for actual
Partnership operating expenses incurred by the General Partner and its
affiliates on the Partnership's behalf. The amount of reimbursement from the
Partnership is limited by the provisions of the Partnership Agreement. Another
affiliate of the General Partner performs asset monitoring for the Partnership.
These services include site visits and evaluations of the subsidiary
partnerships' performance.
(c) Independence SLP IV L.P., a special limited partner of the subsidiary
partnerships, is entitled to receive a local administrative fee of $0 to $5,000
per year from each subsidiary partnership.
(d) Property management fees incurred by the Local Partnerships amounted to
$89,662, $84,472, $266,807 and $252,029 for the three and nine months ended
December 31, 2003 and 2002, respectively. Of these fees, $26,141, $25,247,
$78,063 and $74,255 were incurred to affiliates of the subsidiary partnerships'
general partners.
Note 3 - New Accounting Pronouncements
In January 2003, the Financial Accounting Standards Board ("FASB") issued FASB
Interpretation No. 46, "Consolidation of Variable Interest Entities" ("FIN 46").
FIN 46 is applicable immediately for variable interest entities created after
January 31, 2003. For variable interest entities created before February 1,
2003, the provisions of FIN 46 were originally applicable no later than December
15, 2003. The Partnership has not created any variable interest entities after
January 31, 2003. In December 2003 the FASB redeliberated certain proposed
modifications and revised FIN 46 ("FIN 46 (R)"). The revised provisions are
applicable no later than the first reporting period ending after March 15, 2004.
11
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Notes to Financial Statements
December 31, 2003
(Unaudited)
The adoption of FIN 46 and FIN 46 (R) is not anticipated to have a material
impact on the Partnership's financial reporting and disclosures.
In May 2003, the FASB issued SFAS No. 150, "Accounting for Certain Financial
Instruments with Characteristics of both Liabilities and Equity". SFAS No. 150
changes the accounting for certain financial instruments that, under previous
guidance, could be classified as equity or "mezzanine" equity, by now requiring
those instruments to be classified as liabilities ( or assets in some
circumstances) in the Consolidated Condensed Balance Sheets. Further, SFAS No.
150 requires disclosure regarding the terms of those instruments and settlement
alternatives. The guidance in SFAS No. 150 generally was effective for all
financial instruments entered into or modified after May 31, 2003, and was
otherwise effective at the beginning of the first interim period beginning after
June 15, 2003. The Partnership has evaluated SFAS No. 150 and determined that it
does not have an impact on the Partnership's financial reporting and
disclosures.
12
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Liquidity and Capital Resources
- -------------------------------
The Partnership's primary sources of funds, in addition to operations, include
(i) interest earned on Gross Proceeds which are invested in tax-exempt money
market instruments pending final payments to Local Partnerships and (ii) working
capital reserves and interest earned thereon. All these sources of funds are
available to meet obligations of the Partnership.
As of December 31, 2003, the Partnership has invested approximately $37,814,000
(including approximately $1,161,000 classified as a loan repayable from
sale/refinancing proceeds in accordance with the Contribution Agreement, which
has been eliminated in consolidation, and not including acquisition fees of
approximately $1,771,000) of net proceeds in fourteen Local Partnerships of
which approximately $1,413,000 remains to be paid to the Local Partnerships
(including approximately $615,000 being held in escrow) as certain benchmarks,
such as occupancy level, must be attained prior to the release of the funds.
During the nine months ended December 31, 2003, approximately $180,000 was paid
to the Local Partnerships (none of which was released from escrow).
For the nine months ended December 31, 2003, cash and cash equivalents of the
Partnership and its fourteen consolidated Local Partnerships decreased by
approximately $227,000. This decrease was due to an increase in property and
equipment ($9,000), principal reduction of mortgage notes ($518,000), an
increase in cash held in escrow relating to investing activities ($59,000) and a
net decrease in due to local general partners and affiliates relating to
investing activities ($252,000) which exceeded cash provided by operating
activities ($611,000). Included in the adjustments to reconcile the net loss to
cash provided by operating activities is depreciation and amortization of
approximately $1,908,000.
At December 31, 2003, there is approximately $130,000 in the working capital
reserves. The General Partner believes that these reserves, plus any cash
distributions received from the operations of the Local Partnerships, will be
sufficient to fund the Partnership's ongoing operations for the foreseeable
future not including fees owed to the General Partner. During the nine months
ended December 31, 2003, there have been no cash distributions received from the
Local Partnerships.
Management is not aware of any trends or events, commitments or uncertainties,
which have not otherwise been disclosed that will or are likely to impact
liquidity in a material way. Management believes the only impact would be from
laws that have not yet been adopted. The portfolio is diversified by the
13
location of the properties around the United States so that if one area of the
country is experiencing downturns in the economy, the remaining properties in
the portfolio may be experiencing upswings. However, the geographic
diversification of the portfolio may not protect against a general downturn in
the national economy. The Partnership has fully invested the proceeds of its
offering in fourteen Local Partnerships, all of which have their tax credits in
place, and are expected to begin expiring in 2006. The tax credits will be
attached to the property for a period of ten years, and will be transferable
with the property during the remainder of such ten-year period. If trends in the
real estate market warranted the sale of a property, the remaining tax credits
would transfer to the new owner, thereby adding value to the property on the
market. However, such value declines each year and is not included in the
financial statement carrying amount.
Critical Accounting Policies
- ----------------------------
In preparing the consolidated financial statements, management has made
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting periods. Actual results could differ
from those estimates. Set forth below is a summary of the accounting policies
that management believes are critical to the preparation of the consolidated
financial statements. The summary should be read in conjunction with the more
complete discussion of the Company's accounting policies included in Note 2 to
the consolidated financial statements which are include in the Partnership's
annual report on Form 10-K for the year ended March 31, 2003.
a) Property and Equipment
Property and equipment to be held and used are carried at cost which includes
the purchase price, acquisition fees and expenses, and any other costs incurred
in acquiring the properties. The cost of property and equipment is depreciated
over their estimated useful lives using accelerated and straight-line methods.
Expenditures for repairs and maintenance are charged to expense as incurred;
major renewals and betterments are capitalized. At the time property and
equipment are retired or otherwise disposed of, the cost and accumulated
depreciation are eliminated from the assets and accumulated depreciation
accounts and the profit or loss on such disposition is reflected in earnings.
The Partnership complies with Statement of Financial Accounting Standards (SFAS)
No. 144 "Accounting for the Impairment or Disposal of Long-Lived Assets". A loss
14
on impairment of assets is recorded when management estimates amounts
recoverable through future operations and sale of the property on an
undiscounted basis are below depreciated cost. At that time property investments
themselves are reduced to estimated fair value (generally using discounted cash
flows) when the property is considered to be impaired and the depreciated cost
exceeds estimated fair value.
b) Income Taxes
No provision has been made for income taxes in the accompanying consolidated
financial statements since such taxes, if any, are the responsibility of the
individual partners. For income tax purposes, the Partnership has a fiscal year
ending December 31.
New Accounting Pronouncements
- -----------------------------
In January 2003, the Financial Accounting Standards Board ("FASB") issued FASB
Interpretation No. 46, "Consolidation of Variable Interest Entities" ("FIN 46").
FIN 46 is applicable immediately for variable interest entities created after
January 31, 2003. For variable interest entities created before February 1,
2003, the provisions of FIN 46 were originally applicable no later than December
15, 2003. The Partnership has not created any variable interest entities after
January 31, 2003. In December 2003 the FASB redeliberated certain proposed
modifications and revised FIN 46 ("FIN 46 (R)"). The revised provisions are
applicable no later than the first reporting period ending after March 15, 2004.
The adoption of FIN 46 and FIN 46 (R) is not anticipated to have a material
impact on the Partnership's financial reporting and disclosures.
In May 2003, the FASB issued SFAS No. 150, "Accounting for Certain Financial
Instruments with Characteristics of both Liabilities and Equity". SFAS No. 150
changes the accounting for certain financial instruments that, under previous
guidance, could be classified as equity or "mezzanine" equity, by now requiring
those instruments to be classified as liabilities ( or assets in some
circumstances) in the Consolidated Balance Sheets. Further, SFAS No. 150
requires disclosure regarding the terms of those instruments and settlement
alternatives. The guidance in SFAS No. 150 generally was effective for all
financial instruments entered into or modified after May 31, 2003, and was
otherwise effective at the beginning of the first interim period beginning after
June 15, 2003. The Partnership has evaluated SFAS No. 150 and determined that it
does not have an impact on the Partnership's financial reporting and
disclosures.
15
Results of Operations
- ---------------------
The results of operations for the three and nine months ended December 31, 2003
and 2002 continued to be in the form of rental income with corresponding
expenses divided among operations, depreciation and mortgage interest.
Rental income increased approximately 1% and 4% for the three and nine months
ended December 31, 2003 as compared to the corresponding periods in 2002,
primarily due to rental rate increases.
Other income decreased approximately $10,000 and $15,000 for the three and nine
months ended December 31, 2003 as compared to the corresponding periods in 2002,
primarily due to lower cash and cash equivalent balances earning interest at the
Partnership level as well as decreases in interest earned on cash and cash
equivalent balances due to a reduction in the interest rates at the Local
Partnerships.
Total expenses, excluding repairs and maintenance and insurance, remained fairly
consistent, with a decrease of approximately 2% and an increase of less than 1%
for the three and nine months ended December 31, 2003 as compared to the
corresponding periods in 2002.
Repairs and maintenance expense increased approximately $45,000 for the three
months ended December 31, 2003 as compared to the corresponding period in 2002,
primarily due to tree trimming, fence replacement and the exterior of the
property being pressure washed at one Local Partnership.
Insurance expense increased approximately $28,000 and $76,000 for the three and
nine months ended December 31, 2003 as compared to the corresponding periods in
2002, primarily due to increases in insurance premiums at the Local
Partnerships.
Item 3. Quantitative and Qualitative Disclosures about
Market Risk
None
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
- ------------------------------------------------
The Chief Executive Officer and Chief Financial Officer of Related Independence
L.L.C., which is the general partner of Independence Tax Credit Plus L.P. IV
(the "Partnership"), have evaluated the Partnership's disclosure controls and
16
procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the
Securities Exchange Act of 1934 (the "Exchange Act")) as of December 31, 2003
(the "Evaluation Date"). Based on such evaluation, such officers have concluded
that, as of the Evaluation Date, the Partnership's disclosure controls and
procedures are effective in alerting them, on a timely basis, to material
information relating to the Partnership required to be included in the
Partnership's reports filed or submitted under the Exchange Act .
Changes in Internal Control Over Financial Reporting
- ----------------------------------------------------
There has been no significant change in the Partnership's internal control over
financial reporting during the Partnership's fiscal quarter ended December 31,
2003 which has materially affected, or is reasonably likely to materially
affect, such internal control over financial reporting.
17
PART II. OTHER INFORMATION
Item 1. Legal Proceedings - None
Item 2. Changes in 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 and Reports on Form 8-K
(a) Exhibits
(4) Form of Amended and Restated Agreement of Limited Partner-
ship of the Partnership (attached to the Prospectus as Exhibit A)*
(10A) Form of Subscription Agreement (attached to the Prospectus
as Exhibit B)*
(10B) Form of Escrow Agreement between the Partnership and the
Escrow Agent**
(10C) Form of Purchase and Sales Agreement pertaining to the
Partnership's acquisition of Local Partnership Interests**
(10D) Form of Amended and Restated Agreement of Limited
Partnership of Local Partnerships**
31.1 Certification Pursuant to Rule 13a-14(a) or Rule 15d-14(a).
32.1 Certification Pursuant to Rule 13a-14(b) or Rule 15d-14(b)
and Section 1350 of Title 18 of the United States Code (18 U.S.C. 1350).
* Incorporated herein by reference to the final Prospectus
as filed pursuant to Rule 424 under the Securities Act of 1933.
** Filed as an exhibit to the Registration Statement on Form
S-11 of the Partnership (File No. 33-89968) and incorporated herein by reference
thereto.
(b) Reports on Form 8-K - No reports on Form 8-K were filed
during the quarter.
18
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
INDEPENDENCE TAX CREDIT PLUS L.P. IV
------------------------------------
(Registrant)
By: RELATED INDEPENDENCE L.L.C.,
General Partner
Date: February 6, 2004
By: /s/ Alan P. Hirmes
------------------
Alan P. Hirmes,
President and Member
(principal executive and financial officer)
Date: February 6, 2004
By: /s/ Glenn F. Hopps
------------------
Glenn F. Hopps,
Treasurer
(principal accounting officer)
Exhibit 31.1
CERTIFICATION PURSUANT TO RULE
13a-14(a) or RULE 15d-14(a)
I, Alan P. Hirmes, Chief Executive Officer and Chief Financial Officer of
Related Independence L.L.C. (the "General Partner"), which is the General
Partner of Independence Tax Credit Plus L.P. IV (the "Partnership"), hereby
certify that:
1) I have reviewed this quarterly report on Form 10-Q for the period
ending December 31, 2003 of the Partnership;
2) Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements made, in light of the
circumstances under which such statements were made, not misleading
with respect to the period covered by this quarterly report;
3) Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and
cash flows of the Partnership as of, and for, the periods presented in
this quarterly report;
4) I am responsible for establishing and maintaining disclosure controls
and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) and internal control over financial reporting (as defined in
Exchange Act Rues 13a-15(f) and 15d-15(f)) for the Partnership and I
have:
a) designed such disclosure controls and procedures or caused such
disclosure controls and procedures to be designed under my supervision,
to ensure that material information relating to the Partnership
including its consolidated subsidiaries, is made known to me by others
within those entities, particularly during the period in which this
quarterly report was being prepared;
b) designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under my
supervision, to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting
principles; and
c) evaluated the effectiveness of the Partnership'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 quarterly report based on such
evaluation; and
d) disclosed in this quarterly report any change in the Partnership's
internal control over financial reporting that occurred during the
period ending December 31, 2003 that has materially affected, or is
reasonably likely to materially affect, the Partnership's internal
control over financial reporting; and
5) I have disclosed, based on my most recent evaluation of internal
control over financial reporting, to the Partnership's auditors and to
the boards of directors of the General Partners:
a) 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 Partnership's ability to
record, process, summarize and report financial information; and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the Partnership's
internal control over financial reporting.
Date: February 6, 2004
----------------
By: /s/ Alan P. Hirmes
------------------
Alan P. Hirmes
Chief Executive Officer and
Chief Financial Officer
Exhibit 32.1
CERTIFICATION PURSUANT
TO RULE 13a-14(b) OR RULE 15d-14(b)
AND SECTION 1350 OF TITLE 18
OF THE UNITED STATES CODE (18 U.S.C. 1350)
In connection with the Quarterly Report of Independence Tax Credit Plus L.P. IV
(the "Partnership") on Form 10-Q for the period ended December 31, 2003 as filed
with the Securities and Exchange Commission on the date hereof (the "Report"),
I, Alan P. Hirmes, Chief Executive Officer and Chief Financial Officer of
Related Independence L.L.C. which is the general partner of the Partnership,
certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906
of the Sarbanes-Oxley Act of 2002, that:
(1) The Report fully complies with the requirements of section 13(a) or
15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all
material respects, the financial condition and result of operations of the
Partnership.
By: /s/Alan P. Hirmes
-----------------
Alan P. Hirmes
Chief Executive Officer and Chief Financial Officer
February 6, 2004