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EXCEL - IDEA: XBRL DOCUMENT - INDEPENDENCE TAX CREDIT PLUS LP IVFinancial_Report.xls
EX-31.1 - EXHIBIT 31.1 - INDEPENDENCE TAX CREDIT PLUS LP IVv367993_ex31-1.htm
EX-31.2 - EXHIBIT 31.2 - INDEPENDENCE TAX CREDIT PLUS LP IVv367993_ex31-2.htm
EX-32.1 - EXHIBIT 32.1 - INDEPENDENCE TAX CREDIT PLUS LP IVv367993_ex32-1.htm
EX-32.2 - EXHIBIT 32.2 - INDEPENDENCE TAX CREDIT PLUS LP IVv367993_ex32-2.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 10-Q

 

 

 

(Mark One)

 

þQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended December 31, 2013

 

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 0-17015

 

INDEPENDENCE TAX CREDIT PLUS L.P. IV

(Exact name of registrant as specified in its charter)

 

Delaware   13-3809869
(State or other jurisdiction of incorporation or organization)   (I.R.S. Employer Identification No.)
     
100 Church Street, New York, New York   10007
(Address of principal executive offices)   (Zip Code)

 

(212) 317-5700
Registrant’s telephone number, including area code
 
 
(Former name, former address and former fiscal year, if changed since last report)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. þ Yes   ¨ No

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). þ Yes   ¨ No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer  o   Accelerated filer  ¨
     
Non-accelerated filer  o  (Do not check if a smaller reporting company) Smaller reporting company  þ

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). o Yes þ No

 

 

 

 
 

 

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

Consolidated Balance Sheets

 

   December 31,   March 31, 
   2013   2013 
   (Unaudited)   (Audited) 
ASSETS          
           
Operating assets          
Property and equipment - (at cost, net of accumulated depreciation of $16,744,771 and $19,056,585, respectively)  $3,743,526   $5,268,589 
Cash and cash equivalents   1,054,238    1,117,442 
Cash held in escrow   1,139,748    1,299,719 
Deferred costs (net of accumulated amortization of $282,624 and $257,455, respectively)   293,491    318,660 
Due from local general partners and affiliates (Note 2)   665,345    662,083 
Other assets   426,483    249,829 
           
Total assets  $7,322,831   $8,916,322 
           
LIABILITIES AND PARTNERS’ DEFICIT          
           
Operating liabilities          
Mortgage notes payable  $16,522,071   $18,102,636 
Accounts payable   364,776    309,287 
Accrued interest payable   4,567,380    4,350,317 
Security deposits payable   220,380    261,472 
Interest rate swap (Note 3)   44,000    69,000 
Due to local general partners and affiliates (Note 2)   1,834,601    1,852,020 
Due to general partners and affiliates (Note 2)   3,007,230    2,851,598 
           
Total liabilities   26,560,438    27,796,330 
           
Commitments and contingencies (Note 7)          
           
Partners’ deficit          
           
Limited partners  (45,844 BACs issued and outstanding)   (18,420,361)   (19,102,162)
General partners   (576,164)   (583,051)
           
Independence Tax Credit Plus L.P. IV total   (18,996,525)   (19,685,213)
           
Noncontrolling interests   (241,082)   805,205 
           
Total partners’ deficit   (19,237,607)   (18,880,008)
           
Total liabilities and partners’ deficit  $7,322,831   $8,916,322 

 

See accompanying notes to consolidated financial statements.

 

- 2 -
 

 

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

Consolidated Statements of Operations

(Unaudited)

 

   Three Months Ended   Nine Months Ended 
   December 31,   December 31, 
   2013   2012 *   2013   2012 * 
                 
Revenues                    
Rental income  $832,805   $833,943   $2,576,243   $2,550,931 
Other   12,429    9,639    40,983    39,518 
                     
Total revenues   845,234    843,582    2,617,226    2,590,449 
                     
Expenses                    
General and administrative   229,387    286,057    900,994    799,110 
General and administrative-related parties (Note 2)   112,834    109,816    380,996    426,180 
Repairs and maintenance   70,922    192,140    372,127    454,770 
Operating and other   113,555    109,703    353,428    343,785 
Real estate taxes   25,118    24,712    75,539    73,688 
Insurance   31,667    30,436    97,274    92,615 
Interest   232,254    219,083    638,891    631,408 
Change in fair value of interest rate swap (Note 3)   (10,000)   (3,000)   (25,000)   (2,000)
Depreciation and amortization   50,213    146,582    168,734    439,745 
                     
Total expenses from operations   855,950    1,115,529    2,962,983    3,259,301 
                     
Loss from operations   (10,716)   (271,947)   (345,757)   (668,852)
Income from discontinued operations (including gain on sale of properties) (Note 6)   124,383    2,398,671    170,327    5,361,145 
                     
Net income (loss)   113,667    2,126,724    (175,430)   4,692,293 
                     
Net (income) loss attributable to noncontrolling interests from operations   (817)   117    (892)   (320)
Net loss (income) attributable to noncontrolling interests from discontinued operations   865,019    (628,344)   865,010    (1,089,405)
                     
Net loss (income) attributable to noncontrolling interests   864,202    (628,227)   864,118    (1,089,725)
                     
Net income attributable to Independence Tax Credit Plus L.P. IV  $977,869   $1,498,497   $688,688   $3,602,568 
                     
Loss from operations – limited partners   (11,417)   (269,112)   (343,183)   (662,480)
Income from discontinued operations – limited partners   979,508    1,752,624    1,024,984    4,229,022 
                     
Net income – limited partners  $968,091   $1,483,512   $681,801   $3,566,542 
                     
Number of BACs outstanding   45,844    45,844    45,844    45,844 
                     
Loss from operations– limited partners-per weighted average BAC  $(0.25)  $(5.87)  $(7.49)  $(14.45)
Income from discontinued operations– limited partners- per weighted average BAC   21.36    38.23    22.36    92.25 
                     
Net income– limited partners- per weighted average BAC  $21.11   $32.36   $14.87   $77.80 

 

* Reclassified for comparative purposes.

 

See accompanying notes to consolidated financial statements.

 

- 3 -
 

 

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

Consolidated Statement of Changes in Partners’ Deficit

(Unaudited)

 

       Limited   General   Noncontrolling 
   Total   Partners   Partner   Interests 
                 
Partners’ deficit – April 1, 2013  $(18,880,008)  $(19,102,162)  $(583,051)  $805,205 
                     
Net (loss) income   (175,430)   681,801    6,887    (864,118)
                     
Distributions   (182,169)   -    -    (182,169)
                     
Partners’ deficit  – December 31, 2013  $(19,237,607)  $(18,420,361)  $(576,164)  $(241,082)

 

See accompanying notes to consolidated financial statements.

 

- 4 -
 

 

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Unaudited)

 

   Nine Months Ended 
   December 31, 
   2013   2012 
         
Cash flows from operating activities:          
Net (loss) income  $(175,430)  $4,692,293 
Adjustments to reconcile net (loss) income to net cash provided by operating activities:          
Depreciation and amortization   248,320    583,430 
Gain on sale of properties   (165,728)   (5,336,670)
Change in fair value of rate swap   (25,000)   (2,000)
Changes in assets and liabilities:          
Increase in cash held in escrow   (55,340)   (161,516)
(Increase) decrease in due from local general partners and affiliates   (3,262)   46,136 
(Increase) decrease in other assets   (243,859)   57,272 
Increase (decrease) in accounts payable   67,672    (72,200)
Increase in accrued interest payable   224,860    225,360 
Increase (decrease) in security deposit payable   10,918    (7,293)
(Decrease) increase in due to local general partners and affiliates   (4,395)   5,117 
Increase in due to general partner and affiliates   160,357    343,974 
           
Total adjustments   214,543    (4,318,390)
           
Net cash provided by operating activities   39,113    373,903 
           
Cash flows from investing activities:          
Decrease in cash held in escrow   48,495    5,353 
Proceeds from sale of property   2,200,000    2,450,000 
Costs paid relating to sale of property   (1,891,888)   (493,370)
Net repayments to local general partners and affiliates   (13,024)   (122,770)
           
Net cash provided by investing activities   343,583    1,839,213 
           
Cash flows from financing activities:          
Repayments of mortgage notes   (263,731)   (345,289)
Distributions to noncontrolling interests   (182,169)   (1,323,452)
           
Net cash used in financing activities   (445,900)   (1,668,741)
           
Net (decrease) increase in cash and cash equivalents   (63,204)   544,375 
Cash and cash equivalents at beginning of period   1,117,442    893,534 
Cash and cash equivalents at end of period  $1,054,238   $1,437,909 
           
Summarized below are the components of the gain on sale of properties:          
Proceeds from sale of property- net  $(308,112)  $(1,956,630)
Property and equipment, net of accumulated depreciation   1,301,913    2,881,691 
Deferred costs   -    52,097 
Other assets   67,205    42,520 
Cash held in escrow   166,816    648,554 
Accounts payable   (12,184)   (46,974)
Mortgage payable   (1,316,834)   (4,877,431)
Accrued interest   (7,797)   (1,969,487)
Security deposits   (52,010)   (45,298)
Due to local general partners and affiliates   -    (60,732)
Due to general partners and affiliates   (4,725)   (26,126)
Capital contribution- General Partner   -    21,146 

 

See accompanying notes to consolidated financial statements.

 

- 5 -
 

 

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

December 31, 2013

(Unaudited)

 

NOTE 1 – General

 

The consolidated financial statements, as of December 31, 2013, include the accounts of Independence Tax Credit Plus L.P. IV (the “Partnership”) and eight other limited partnerships (“subsidiary partnerships”, “subsidiaries” or “Local Partnerships”) owning affordable apartment complexes (“Properties”) that are eligible for the low-income housing tax credits. Some of the Properties may also be eligible for the historic rehabilitation tax credits. The general partner of the Partnership is Related Independence L.L.C., a Delaware limited liability company (the “General Partner”), which was managed by an affiliate of Centerline Holding Company (“Centerline”). On June 12, 2013, Centerline and an affiliate of Hunt Companies, Inc. (“Hunt”) entered into an agreement and plan of merger. On November 14, 2013, the shareholders of Centerline approved the acquisition of Centerline by an affiliate of Hunt Capital Partners, LLC, the affordable housing division affiliate of Hunt. Hunt is the ultimate parent of the manager of the general partner of the General Partner. For information on Hunt, see www.huntcompanies.com. The information contained on, or connected to, Hunt’s website is not incorporated by reference into this Form 10-Q. 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 (“Local General Partners”) 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 third fiscal quarter ends December 31st. The third quarter for all subsidiaries ends September 30th. Accounts of the subsidiaries have been adjusted for intercompany transactions from October 1st through December 31st. The Partnership’s fiscal quarter ends three months after the subsidiaries 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.

 

The net loss (income) attributable to noncontrolling interests amounted to approximately $864,000 and $(628,000) and $864,000 and $(1,090,000) for the three and nine months ended December 31, 2013 and 2012, respectively. The Partnership’s investment in each subsidiary is equal to the respective subsidiary’s partners’ equity less noncontrolling interest capital, if any.

 

Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted or condensed. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Partnership’s Annual Report on Form 10-K for the year ended March 31, 2013.

 

The books and records of the Partnership are maintained on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. In the opinion of the General Partner of the Partnership, the accompanying unaudited consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the consolidated financial position of the Partnership as of December 31, 2013, the results of its operations for the three and nine months ended December 31, 2013 and 2012 and its cash flows for the nine months ended December 31, 2013 and 2012. However, the operating results and cash flows for the nine months ended December 31, 2013 may not be indicative of the results for the entire year.

 

Recent Accounting Pronouncements

 

In February 2013, the Financial Accounting Standards Board issued an accounting standards update ("ASU") No. 2013-02 "Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income," requiring new disclosures for items reclassified out of accumulated other comprehensive income ("AOCI"), including (1) changes in AOCI balances by component and (2) significant items reclassified out of AOCI. The guidance does not amend any existing requirements for reporting net income or OCI in the financial statements. The standards update was effective for reporting periods beginning after December 15, 2012, to be applied prospectively. The adoption of this standard had no impact on the Partnership’s consolidated financial statements.

 

Use of Estimates

 

The preparation of consolidated financial statements requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

 

NOTE 2 – Related Party Transactions

 

A)Related Party Expenses

 

An affiliate of the General Partner has a 0.01% interest as a special limited partner in each of the Local Partnerships.

 

The costs incurred to related parties from operations for the three and nine months ended December 31, 2013 and 2012 were as follows:

 

- 6 -
 

 

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

December 31, 2013

(Unaudited)

 

   Three Months Ended   Nine Months Ended 
   December 31,   December 31, 
   2013   2012 *   2013   2012 * 
                 
Partnership management fees (a)  $44,000   $35,775   $138,000   $171,900 
Expense reimbursement (b)   41,682    41,996    147,263    152,620 
Local administrative fee (c)   5,500    6,000    18,500    19,500 
                     
Total general and administrative-General Partners   91,182    83,771    303,763    344,020 
Property management fees incurred to affiliates of the subsidiary partnerships’ general partners   21,652    26,045    77,233    82,160 
                     
Total general and administrative-related parties  $112,834   $109,816   $380,996   $426,180 

 

* Reclassified for comparative purposes.

 

The costs incurred to related parties from discontinued operations for the three and nine months ended December 31, 2013 and 2012 were as follows:

 

   Three Months Ended   Nine Months Ended 
   December 31,   December 31, 
   2013   2012 *   2013   2012 * 
                 
Local administrative fee (c)  $1,500   $4,000   $4,500   $13,500 
                     
Total general and administrative-General Partner   1,500    4,000    4,500    13,500 
                     
Property management fees incurred to affiliates of the subsidiary partnerships' general partners   9,283    20,922    27,671    69,999 
                     
Total general and administrative-related parties  $10,783   $24,922   $32,171   $83,499 

 

* 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 are deferred without interest and will be payable out of sales or refinancing proceeds only to the extent of available funds after payments on all Partnership liabilities have been made other than those owed to the General Partner and its affiliates. Partnership management fees owed to the General Partner amounting to approximately $2,675,000 and $2,544,000 were accrued and unpaid as of December 31, 2013 and March 31, 2013, respectively. Current year partnership management fees may be paid out of operating reserves or refinancing and sales proceeds. However, the General Partner cannot demand payment of the deferred fees beyond the Partnership’s ability to pay them.

 

(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. Expense reimbursements and asset monitoring fees owed to the General Partner and its affiliates amounting to approximately $42,000 and $37,000 were accrued and unpaid as of December 31, 2013 and March 31, 2013, respectively. The General Partner does not intend to demand payment of the deferred payables beyond the Partnership’s ability to pay them. The Partnership anticipates that these will be paid, if at all, from working capital reserves or future sales proceeds.

 

(c)Independence SLP IV L.P., a special limited partner of the subsidiary partnerships, is entitled to receive a local administrative fee of up to $5,000 per year from each subsidiary partnership. Local administrative fees owed to Independence SLP IV L.P. amounting to $289,000 and $271,000 were accrued and unpaid as of December 31, 2013 and March 31, 2013, respectively. These fees have been deferred in certain cases and the Partnership anticipates that they will be paid, if at all, from working capital reserves or future sales proceeds.

 

As of December 31, 2013 and March 31, 2013, the Partnership owed $1,000 and $0, respectively, to the General Partner for expenses it paid on its behalf.

 

- 7 -
 

 

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

December 31, 2013

(Unaudited)

 

B) Due to/from Local General Partners and Affiliates

 

The amounts due to Local General Partners and affiliates from operating liabilities consist of the following:

 

   December 31,   March 31, 
   2013   2013 
         
Development fee payable  $1,441,171   $1,441,171 
Consulting fee payable   50,000    50,000 
Operating advances   343,188    356,212 
Management and other fees   242    4,637 
           
   $1,834,601   $1,852,020 

 

Due from Local General Partners and affiliates from operating assets consists of the following:

 

   December 31,   March 31, 
   2013   2013 
         
Local general partner loan receivable  $665,345   $662,083 

 

NOTE 3– Fair Value of Financial Instruments

 

The following methods and assumptions were used to estimate the fair value of each class of financial instruments (all of which are held for nontrading purposes) for which it is practicable to estimate that value:

 

Cash and Cash Equivalents and Cash Held in Escrow

 

The carrying amount approximates fair value.

 

Accounts Payable and Other Liabilities

 

The carrying amounts approximate fair value due to their short-term nature.

 

Mortgage Notes Payable, Accrued Interest and Interest Rate Swap Agreement

 

The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described as follows:

 

Level 1:Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

 

Level 2:Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

 

Level 3:Unobservable inputs that reflect the Partnership’s own assumptions.

 

The estimated fair value of mortgage notes payable has been determined using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Consequently, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange. The following are financial instruments for which the Partnership’s estimate of fair value differs from the carrying amounts:

 

- 8 -
 

 

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

December 31, 2013

(Unaudited)

 

   At December 31, 2013   At March 31, 2013 
   Carrying       Carrying     
   Amount   Fair Value   Amount   Fair Value 
                 
LIABILITIES:                    
Mortgage notes  $16,522,071   $9,479,856   $18,102,636   $10,388,375 

 

For the mortgage notes, fair value is estimated using Level 3 inputs and calculated using present value cash flow models based on a discount rate. Centerline has not been active in the tender option bond market, through which these bonds have been securitized in the past. To assist in valuing these notes, the Partnership held separate discussions with various third party investment banks who are leaders in the municipal bond business. The discussions produced assumptions that were based on market conditions as well as the credit quality of the underlying property partnerships, which held the mortgage notes, to determine what discount rates to utilize.

 

Interest Rate Swap Agreement

 

For the interest rate swap, in the absence of readily determinable fair values, the fair value is estimated by the Partnership with the assistance of valuations obtained from the Bank of Hawaii (the “Bank”), at which the swap transaction is held. The interest rate swap is valued based on the Bank’s estimate of the net present value of the expected cash flows from each transaction subject to the interest rate swap using relevant mid-market data inputs and based on the assumption of no unusual market conditions or forced liquidation. The preceding method described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Partnership believes its valuation method is appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

 

On August 24, 2010, GP Kaneohe Limited Partnership (“Kaneohe”), a subsidiary partnership, entered into an interest rate swap agreement with the Bank as a prerequisite for obtaining refinancing on its original mortgage note payable in the amount of $2,297,000. The agreement provides a fixed rate of interest on the notional amount, as provided in the agreement, in exchange for the variable rate. The swap contract became effective September 1, 2010. The following are the terms under the swap:

 

Fixed swap – initial notional amount  $3,050,000 
Fixed swap – current notional amount   2,901,000 
Fixed rate   4.65%
Variable rate at September 30, 2013   3.75%
Termination date   September 1, 2015 

 

Fair value for the interest rate swap is estimated using Level 2 inputs. At September 30, 2013, the fair value of the interest rate swap was approximately $44,000.

 

Derivative Instruments not meeting the criteria for hedge accounting (or for which an entity elects not to apply hedge accounting to the derivative in the event that the criteria are met) are recorded at fair value with any change in fair value reflected in the statement of operations in the period of change.

 

Due to General Partner and Affiliates and Due to/from Local General Partners and Affiliates

 

Management believes it is not practical to estimate the fair value of due to General Partner and affiliates and due to/from Local General Partners and affiliates because market information on such obligations is not currently available.

 

NOTE 4 – Sale of Properties

 

The Partnership is currently in the process of developing a plan to dispose of all of its investments. It is anticipated that this process will continue to take a number of years. During the nine months ended December 31, 2013, one Local Partnership sold its property and the related assets and liabilities. Through December 31, 2013, the Partnership has sold its limited partnership interest in four Local Partnerships and the property and the related assets and liabilities of three Local Partnerships have been sold. There can be no assurance as to when the Partnership will dispose of its seven remaining investments or the amount of proceeds which may be received. However, based on the historical operating results of the Local Partnerships and the current economic conditions, including changes in tax laws, it is unlikely that the proceeds from such sales received by the Partnership will be sufficient to return to the limited partners their original investments. All gains and losses on sales are included in discontinued operations.

 

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INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

December 31, 2013

(Unaudited)

 

On October 4, 2013, the property and the related assets and liabilities of Guymon Housing Partners, L.P. (“Guymon”) were sold to an affiliate of the Local General Partner for a sales price of $2,200,000.  The Partnership received $188,875 as distributions from this sale after the repayment of the mortgages, other liabilities, closing costs and distributions to other partners of approximately $2,011,000. The sale resulted in a gain of approximately $166,000 which was recorded during the quarter ended December 31, 2013.

 

On December 31, 2012, the Partnership sold its limited partnership interest in Belmont/McBride Apartments Limited Partnership (“Belmont”) to an affiliate of the Local General Partner for a sales price of $10. The sale resulted in a gain of approximately $2,646,000 resulting from the write-off of the deficit basis in the Local Partnership of the same amount at the date of sale, which was recorded during the quarter ended December 31, 2012. In addition, the sale resulted in a noncash contribution to the Local Partnership from the General Partner of approximately $21,000 as a result of the write-off of fees owed by the Local Partnership to an affiliate of the General Partner.

 

On September 28, 2012, the property and the related assets and liabilities of New Zion Limited Partnership (“New Zion”) were sold to an unaffiliated third party purchaser for a sales price of $2,450,000.  The Partnership received $663,560 as distributions from this sale after the repayment of the mortgages, other liabilities, closing costs and distributions to other partners of approximately $1,786,000. The sale resulted in a gain of approximately $883,000 which was recorded during the quarter ended September 30, 2012. In addition, the sale resulted in a write-off of operating advances of approximately $191,000 owed to an affiliate of the General Partner. An adjustment to the gain of approximately $(226,000) was recorded during the quarter ended December 31, 2012, resulting in an overall gain of approximately $657,000

 

On June 11, 2012, the Partnership sold its limited partnership interest in Marlton Housing Partnership, L.P (“Marlton”) to an affiliate of the Local General Partner for a sales price of $1. The sale resulted in a gain of approximately $2,125,000 resulting from the write-off of the deficit basis in the Local Partnership of the same amount at the date of sale, which was recorded during the quarter ended June 30, 2012. An adjustment to the gain of approximately $(91,000) was recorded during the quarter ended September 30, 2012, resulting in an overall gain of approximately $2,034,000.

 

NOTE 5 – Assets Held for Sale

 

On August 19, 2013, the Partnership had entered into assignment and assumption agreements to sell its limited partnership interest in (i) Figueroa Senior Housing Limited Partnership (“Figueroa”) to an unaffiliated third party purchaser for the sale price of $214,264 and (ii) NNPHI Senior Housing Limited Partnership (“Normandie”) to an unaffiliated third party purchaser for a sales price of $120,788.  During the quarter ended December 31, 2013, negotiations fell through on both contracts and they are no longer under contract for sale.  Management has determined that the sale of these two properties might not be likely in the near future, and as such, they have been reclassified from discontinued operations into continuing operations.

 

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INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

December 31, 2013

(Unaudited)

 

NOTE 6 – Discontinued Operations

 

The following table summarizes the results of operations of the Local Partnerships that are classified as discontinued operations. For the three and nine months ended December 31, 2013, Guymon, which was sold during the period, was classified as discontinued operations in the consolidated financial statements. For the three and nine months ended December 31, 2012, Belmont, Marlton and New Zion, which were sold during the period, and Guymon, in order to present comparable results to the nine months ended December 31, 2013, were classified as discontinued operations in the consolidated financial statements.

 

Consolidated Statements of Discontinued Operations:

 

   Three Months Ended   Nine Months Ended 
   December 31,   December 31, 
   2013   2012 *   2013   2012 * 
                 
Revenues                    
                     
Rental income  $187,813   $412,259   $562,267   $1,343,291 
Other   (7,366)   (22,246)   (12,787)   21,068 
Gain on sale of properties(Note 4)   165,728    2,419,601    165,728    5,336,670 
                     
Total revenue   346,175    2,809,614    715,208    6,701,029 
                     
Expenses                    
General and administrative   50,166    88,251    110,504    322,152 
General and administrative-related parties (Note 2)   10,783    24,922    32,171    83,499 
Repairs and maintenance   37,734    74,573    61,160    237,064 
Operating and other   58,876    77,998    158,265    234,042 
Real estate taxes   3,437    8,664    10,312    30,946 
Insurance   5,163    15,730    18,242    47,446 
Interest   29,466    73,479    74,641    241,049 
Depreciation and amortization   26,167    47,326    79,586    143,686 
                     
Total expenses   221,792    410,943    544,881    1,339,884 
                     
Income from discontinued operations   124,383    2,398,671    170,327    5,361,145 
                     
Noncontrolling interest in loss (income) of subsidiaries from discontinued operations   865,019    (628,344)   865,010    (1,089,405)
                     
Income from discontinued operations – Independence Tax Credit Plus IV  $989,402   $1,770,327   $1,035,337   $4,271,740 
                     
Income from discontinued operations – limited partners  $979,508   $1,752,624   $1,024,984   $4,229,022 
                     
Number of BACs outstanding   45,844    45,844    45,844    45,844 
                     
Income from discontinued operations– limited partners- per weighted average BAC  $21.36   $38.23   $22.36   $92.25 

 

* Reclassified for comparative purpose.

 

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INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

December 31, 2013

(Unaudited)

 

Cash Flows from Discontinued Operations:

 

   Nine Months Ended 
   December 31, 
   2013   2012 * 
         
Net cash provided by operating activities  $2,746,525   $1,296,962 
           
Net cash provided by investing activities  $241,826   $3,611,972 
           
Net cash used in financing activities  $(3,013,895)  $(5,034,517)

 

* Reclassified for comparative purposes.

 

NOTE 7 – Commitments and Contingencies

 

a) Liquidity

 

At December 31, 2013, the Partnership’s liabilities exceeded assets by $19,237,607, and for the nine months ended December 31, 2013, the Partnership incurred a net loss of $(175,430). These factors raise substantial doubt about the Partnership’s ability to continue as a going concern. As discussed in Note 2, partnership management fees of approximately $2,675,000 will be payable out of sales or refinancing proceeds only to the extent of available funds after payments on all other Partnership liabilities have been made other than those owed to the General Partner and its affiliates. As such, the General Partner cannot demand payment of these deferred fees beyond the Partnership’s ability to pay them.

 

All of the mortgage payable balance of $16,522,071 and the accrued interest payable balance of $4,567,380 is of a nonrecourse nature and secured by the respective properties. The Partnership is currently in the process of developing a plan to dispose of all of its investments. Historically, the mortgage notes and accrued interest thereon have been assumed by the buyer in instances of sales of the Partnership’s interest or have been paid off from sales proceeds in instances of sales of the property. In most instances when the Partnership’s interest was sold and liabilities were assumed, the Partnership recognized a gain from the sale. The Partnership owns the limited partner interest in all its investments, and as such has no financial responsibility to fund operating losses incurred by the Local Partnerships. The maximum loss the Partnership would incur is its net investment in the respective Local Partnerships and the potential recapture of the Tax Credits if the investment is lost before the expiration of the Compliance Period. Dispositions of any investment in a Local Partnership are not anticipated to impact the future results of liquidity or financial condition of the Partnership.

 

The Partnership has unconsolidated working capital reserves of approximately $489,000 at December 31, 2013. Such amount is considered sufficient to cover the Partnership’s day to day operating expenses, excluding fees to the General Partner, for at least the next year. The Partnership’s operating expenses, excluding the Local Partnerships’ expenses and related party expenses amounted to approximately $160,000 for the nine months ended December 31, 2013.

 

Management believes the above mitigating factors enable the Partnership to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

b) Uninsured Cash and Cash Equivalents

 

The Partnership maintains its cash and cash equivalents in various banks. The accounts at each bank are insured by the Federal Deposit Insurance Corporation (“FDIC”).

 

c) Leases

 

Certain subsidiary partnerships have land lease arrangements whereby they are obligated to pay $1 per annum through June 2054.

 

d) Cash Distributions

 

Cash distributions from the Local Partnerships to the Partnership are restricted by the provisions of the respective agreements of limited partnership of the Local Partnerships and/or the U.S. Department of Housing and Urban Development.

 

e) Property Management Fees

 

Property management fees incurred by the Local Partnerships amounted to $57,542 and $82,315 and $171,831 and $261,425 for the three and nine months ended December 31, 2013 and 2012, respectively. Of these fees, $30,935 and $46,967 and $104,904 and $152,159 were incurred to the Local General Partners for the three and nine months ended December 31, 2013 and 2012, respectively, which include $9,283 and $20,922 and $27,671 and $69,999 of fees relating to discontinued operations for the three and nine months ended December 31, 2013 and 2012, respectively.

 

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INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

December 31, 2013

(Unaudited)

 

f) Other

 

The Partnership is subject to risks incidental to potential losses arising from the management and ownership of real estate. The Partnership can also be affected by poor economic conditions generally; however no more than (29%) of the properties are located in any single state. There are also substantial risks associated with owning properties receiving government assistance, for example the possibility that Congress may not appropriate funds to enable the U.S. Department of Housing and Urban Development (“HUD”) to make rental assistance payments. HUD also restricts annual cash distributions to partners based on operating results and a percentage of the owners’ equity contribution. The Partnership cannot sell or substantially liquidate its investments in subsidiary partnerships during the period that the subsidy agreements are in existence without HUD’s approval. Furthermore there may not be market demand for apartments at full market rents when the rental assistance contract expires.

 

The Partnership and BACs holders began to recognize Tax Credits with respect to a Property when the Credit Period for such Property commenced (generally ten years from the date of investment or, if later, the date the Property is leased to qualified tenants). Because of the time required for the acquisition, completion and rent-up of Properties, the amount of Tax Credits per BAC gradually increased over the first three years of the Partnership. Tax Credits not recognized in the first three years were recognized in the 11th through 13th years. As of December 31, 2012, all the Local Partnerships had completed their Credit Periods. However, each Local Partnership must continue to comply with the Tax Credit requirements until the end of the Compliance Period in order to avoid recapture of the Tax Credits. The Compliance Periods will continue through December 31, 2017 with respect to the Properties depending upon when the Compliance Period commenced.

 

g) Subsequent Events

 

The Partnership evaluated all subsequent events from the date of the balance sheet through the issuance date of this report and determined that there were no events or transactions occurring during the subsequent event reporting period which require recognition or disclosure in the consolidated financial statements.

 

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

Liquidity and Capital Resources

 

The Partnership originally invested all of its net proceeds in fourteen Local Partnerships of which, approximately $148,000 remains to be paid to the Local Partnerships (including approximately $123,000 being held in escrow). The Partnership is currently in the process of developing a plan to dispose of all its investments. During the nine months ended December 31, 2013, one Local Partnership sold its property and the related assets and liabilities. Through December 31, 2013, the Partnership has sold its limited partnership interests in four Local Partnerships and the property and the related assets and liabilities of three Local Partnerships have been sold. There can be no assurance as to when the Partnership will dispose of its seven remaining investments or the amount of proceeds which may be received. However, based on the historical operating results of the Local Partnerships and the current economic conditions, including changes in tax laws, it is unlikely that the proceeds from such sales received by the Partnership will be sufficient to return to the limited partners their original investments. All gains and losses on sales are included in discontinued operations.

 

Short-Term

 

The Partnership’s primary sources of funds include: (i) working capital reserves; (ii) interest earned on the working capital reserves; (iii) cash distributions from operations of the Local Partnerships; and (iv) sales and/or refinance proceeds and distributions. Such funds, although minimal (other than possible sales and/or refinance proceeds and distributions), are available to meet the obligations of the Partnership. During the nine months ended December 31, 2013, and 2012, distributions from operations of the Local Partnerships amounted to approximately $21,000 and $40,000, respectively. In addition, during the nine months ended December 31, 2013, and 2012, distributions to the Partnership from sales proceeds amounted to approximately $189,000 and $710,000, respectively. The Partnership does not anticipate providing cash distributions to BACs holders in circumstances other than refinancing or sales.

 

During the nine months ended December 31, 2013, cash and cash equivalents of the Partnership and its consolidated Local Partnerships decreased approximately $63,000. This decrease was due to repayment of mortgage notes ($263,000), net repayments to local general partners and affiliates ($13,000) and distributions to noncontrolling interests ($182,000), which exceeded proceeds from a sale of property, net of closing costs ($308,000), a decrease in cash held in escrow relating to investing activities ($48,000) and net cash provided by operating activities ($39,000). Included in the adjustments to reconcile the net loss to net cash provided by operating activities is depreciation and amortization in the amount of approximately ($248,000) and a change from interest rate swap of approximately ($25,000).

 

Total expenses from operations for the three and nine months ended December 31, 2013, and 2012, excluding depreciation and amortization, interest, unrealized change in interest rate swap and general and administrative-related parties, totaled $470,649 and $643,048 and $1,799,362 and $1,763,968, respectively.

 

Accounts payable from operations as of December 31, 2013 and March 31, 2013 were $364,776 and $309,287, respectively. Accounts payable are short term liabilities which are expected to be paid from operating cash flows, working capital balances at the Local Partnership level, Local General Partner advances and in certain circumstances advances from the Partnership. Accrued interest payable from operations as of December 31, 2013 and March 31, 2012 was $4,567,380 and $4,350,317, respectively. Such amount represents the accrued interest on all mortgage loans, which include primary and secondary loans. Certain secondary loans have provisions such that interest is accrued but not payable until a future date. The Partnership anticipates the payment of accrued interest on the secondary loans (which make up the majority of the accrued interest payable amount and which have been accumulating since the Partnership’s investment in the respective Local Partnership) will be made from future refinancings or sales proceeds of the respective Local Partnerships. In addition, each Local Partnership’s mortgage notes are collateralized by the land and buildings of the respective Local Partnership, and are without further recourse to the Partnership. The maximum loss the Partnership would incur is its net investment in the respective Local Partnership.

 

The Partnership has an unconsolidated working capital reserve of approximately $489,000 at December 31, 2013. Such amount is considered sufficient to cover the Partnership’s day to day operating expenses, excluding fees to the General Partner, for at least the next fiscal year.

 

At December 31, 2013, the Partnership’s liabilities exceeded assets by $19,237,607 and for the nine months ended December 31, 2013, the Partnership incurred a net loss of $(175,430). However, because 1) the provisions of the secondary loans defer the payment of accrued interest of the respective Local Partnerships and will be made from future refinancing or sales proceeds of the respective Local Partnerships, 2) the General Partner continues to defer the payment of fees as discussed below and in Note 2 to the Financial Statements, and 3) the Partnership has sufficient unconsolidated working capital reserves to cover the Partnership’s day to day operating expenses, the Partnership (and the applicable Local Partnerships) believes it has sufficient liquidity and ability to generate cash and to meet existing and known or reasonably likely future cash requirements over both the short and long term.

 

Long-Term

 

Partnership management fees owed to the General Partner amounting to approximately $2,675,000 and $2,544,000 were accrued and unpaid as of December 31, 2013, and March 31, 2013, respectively, and are included in the line item Due to general partners and affiliates in the consolidated balance sheets. Unpaid partnership management fees for any year are to be deferred without interest and will be payable out of sales or refinancing proceeds only to the extent of available funds after payments on all Partnership liabilities have been made other than to those owed to the General Partner and its affiliates.

 

All other payables are expected to be paid, if at all, from working capital reserves. See Note 2 in Item 1 for further discussion of amounts due to the General Partner and its affiliates. The General Partner does not anticipate making any future advances of operating funds to any of the Local Partnerships in which the Partnership has invested. Even if a situation arose where the General Partner and its affiliates needed to but were not able to make operating advances in the future due to lack of funds, the only impact on the Partnership would be that it would lose its investment in that particular Local Partnership. The Partnership’s ability to continue its operations would not be affected.

 

The Partnership’s liquidity considerations are discussed in Note 7a in Item 1.

 

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Since the maximum loss the Partnership would be liable for is its net investment in the respective subsidiary partnerships, the resolution of any existing contingencies is not anticipated to impact future liquidity or the financial condition of the Partnership in a material way. However, the Partnership’s loss of its investment in a Local Partnership may result in recapture of Tax Credits if the investment is lost before expiration of the Compliance Period.

 

Except as described above, 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 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 had originally invested the proceeds of its Offering in 14 Local Partnerships, all of which had their Tax Credits fully in place during the Credit Periods. As of December 31, 2012, all the Local Partnerships had completed their Credit Periods. However, each Local Partnership must continue to comply with the Tax Credit requirements until the end of the Compliance Period in order to avoid recapture of the Tax Credits. The Compliance Periods will continue through December 31, 2017 with respect to the Properties depending upon when the Compliance Period commenced.

 

Off-Balance Sheet Arrangements

 

The Partnership has no off-balance sheet arrangements.

 

Fair Value Measurements

 

See Note 3 in Item 1 for methods and assumptions used to estimate the fair value of each class of financial instruments (all of which are held for nontrading purposes) for which it is practicable to estimate that value.

 

Critical Accounting Policies and Estimates

 

The preparation of consolidated financial statements requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of certain accounting estimates considered critical by the Partnership. The summary should be read in conjunction with the more complete discussion of the Partnership’s accounting policies included in Item 8, Note 2 to the consolidated financial statements in the Partnership’s Annual Report on Form 10-K for the year ended March 31, 2013.

 

Property and Equipment

 

Property and equipment to be held and used are carried at cost which includes the purchase price, acquisition fees and expenses, construction period interest 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 ASC 360, Property, Plant and Equipment. A loss 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 (using the fair market value based on comparative sales) when the Property is considered to be impaired and the depreciated cost exceeds estimated fair value.

 

At the time management commits to a plan to dispose of a specific asset, said asset is adjusted to the lower of carrying amount or fair value less costs to sell. These assets are classified as property and equipment-held for sale and are not depreciated. Property and equipment that are held for sale are included in discontinued operations. There are two assets classified as property and equipment-held for sale as of December 31, 2013.

 

During the nine months ended December 31, 2013, the Partnership did not record any loss on impairment of assets. Through December 31, 2013, the Partnership has recorded approximately $33,280,000 as an aggregate loss on impairment of property.

 

Revenue Recognition

 

Rental income is earned primarily under standard residential operating leases and is typically due the first day of each month, but can vary by Property due to the terms of the tenant leases. Rental income is recognized when earned and charged to tenants’ accounts receivable if not received by the due date. Rental payments received in advance of the due date are deferred until earned. Rental subsidies are recognized as rental income during the month in which it is earned.

 

Other revenues are recorded when earned and consist of the following items: interest income earned on cash and cash equivalent balances and cash held in escrow balances, income from forfeited security deposits, late charges, laundry and vending income and other rental related items.

 

Income Taxes

 

The Partnership is not required to provide for, or pay, any federal income taxes. Net income or loss generated by the Partnership is passed through to the partners and is required to be reported by them. The Partnership may be subject to state and local taxes in jurisdictions in which it operates. For income tax purposes, the Partnership has a fiscal year ending December 31.

 

- 15 -
 

 

Results of Operations

 

The results of operations for the three and nine months ended December 31, 2013 and 2012, consisted primarily of the results of the Partnership’s investment in Local Partnerships. The following discussion excludes the Partnership’s results of its discontinued operations, which are not reflected below.

 

Rental income increased approximately 1% for the three and nine months ended December 31, 2013, as compared to the corresponding periods in 2012, primarily due to an increase in occupancies and rental rates at several Local Partnerships.

 

Total expenses, excluding general and administrative, general and administrative-related parties, repairs and maintenance, depreciation and amortization and unrealized loss on interest rate swap remained fairly consistent, with an increase of approximately 5% and 1% for the three and nine months ended December 31, 2013, as compared to the corresponding periods in 2012.

 

General and administrative expenses decreased approximately $57,000 and increased approximately $102,000 for the three and nine months ended December 31, 2013, as compared to the corresponding periods in 2012. The three month decrease is primarily due to a decrease in legal and other consulting fees at one Local Partnership. The nine month increase is primarily due to an increase in repairs, maintenance and office salaries at one Local Partnership and an increase in audit fees at the Partnership level.

 

General and administrative-related parties’ expenses decreased approximately $45,000 for nine months ended December 31, 2013, as compared to the corresponding period in 2012, primarily due to a decrease in partnership management fees and expense reimbursements resulting from the sale of properties at the Partnership level.

 

Repairs and maintenance expense decreased approximately $121,000 and $83,000 for the three and nine months ended December 31, 2013, as compared to the corresponding periods in 2012, primarily due to a decrease in fire system inspection and repairs at one Local Partnership and a decrease in carpet replacement and door replacements at a second Local Partnership.

 

Depreciation and amortization decreased approximately $96,000 and $271,000 for the three and nine months ended December 31, 2013, as compared to the corresponding periods in 2012, primarily due to reduction of the property and equipment as a result of a loss on impairment of assets recorded during the year ended March 31, 2013 at five Local Partnerships.

 

Change in fair value of interest rate swap decreased approximately $7,000 and $23,000 for the three and nine months ended December 31, 2013, as compared to the corresponding periods in 2012, primarily due to the change in fair value of the interest rate swap agreement at one Local Partnership.

 

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

 

Not applicable.

 

Item 4. Controls and Procedures.

 

(a)  Evaluation of Disclosure Controls and Procedures. The Principal Executive Officer and Chief Financial Officer of Related Independence L.L.C, the general partner of the Partnership, have evaluated the effectiveness of the Partnership’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (“Exchange Act”) as of the end of the period covered by this report. Based on such evaluation, such officers have concluded that, as of the end of such period, the Partnership’s disclosure controls and procedures are effective.

 

(b)  Changes in Internal Controls over Financial Reporting. During the period ended December 31, 2013, there were no changes in the Partnership’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Partnership’s internal control over financial reporting.

 

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PART II. OTHER INFORMATION

 

Item 1. Legal Proceedings. – None
     
Item 1A. Risk Factors. – No changes
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. – None
     
Item 3. Defaults upon Senior Securities. – None
     
Item 4. Mine Safety Disclsoures. – None
     
Item 5. Other Information. – On November 14, 2013, Robert A. Pace resigned as a Chief Financial Officer and Principal Accounting Officer and was subsequently replaced by Mark B. Hattier.  Also, on November 14, 2013, Robert L. Levy resigned as President and Chief Executive Officer and was subsequently replaced by Alan T. Fair.
     
Item 6. Exhibits.
     
  (4) Form of Amended and Restated Agreement of Limited Partnership of the Partnership (attached to the Prospectus as Exhibit A)*
     
  (10A) Form of Subscription Agreement (attached to the Prospectus as Exhibit B)*
     
  (10B) Form of Escrow Agreement between the Partnership and the Escrow Agent**
     
  (10C) Form of Purchase and Sales Agreement pertaining to the Partnership’s acquisition of Local Partnership Interests**
     
  (10D) Form of Amended and Restated Agreement of Limited Partnership of Local Partnerships**
     
  (31.1)+ Certification Pursuant to Rule 13a-14(a) or Rule 15d-14(a)
     
  (31.2)+ Certification Pursuant to Rule 13a-14(a) or Rule 15d-14(a)
     
  (32.1)+ Certification Pursuant to Section 1350 of Title 18 of the United States Code (18 U.S.C. 1350)
     
  (32.2)+ Certification Pursuant to 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.
     
  + Filed herewith.

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

INDEPENDENCE TAX CREDIT PLUS L.P. IV

(Registrant)

 

    By: RELATED INDEPENDENCE L.L.C.,
      a General Partner
           
Date: February 19, 2014     By: /s/ Mark B. Hattier  
          Mark B. Hattier  
          Chief Financial Officer and Principal Accounting Officer
             
Date: February 19, 2014     By: /s/ Alan T. Fair  
          Alan T. Fair  
          President and Principal Executive Officer

 

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