FORM 10-K


                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   (Mark One)

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

                For the fiscal year ended _______________________

                                       OR

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


        For the transition period from January 1, 1999 to March 31, 1999

                         Commission file number: 0-26048

                 WNC HOUSING TAX CREDIT FUND IV, L.P., Series 1

California                                                           33-0563307
(State or other jurisdiction of                                (I.R.S. Employer
incorporation or organization)                               Identification No.)


              3158 Redhill Avenue, Suite 120, Costa Mesa, CA 92626

                                 (714) 662-5565

           Securities registered pursuant to Section 12(b) of the Act:


                                      NONE

           Securities registered pursuant to section 12(g) of the Act:

                      UNITS OF LIMITED PARTNERSHIP INTEREST

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 if disclosure of delinquent  filers  pursuant to Item 405
of Regulation  S-K is not contained  herein,  and will not be contained,  to the
best of registrant's  knowledge,  in definitive proxy or information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K.  x



                                       1
<PAGE>



State the  aggregate  market  value of the  voting and  non-voting
common equity held by non-affiliates of the registrant.

                                  INAPPLICABLE


                       DOCUMENTS INCORPORATED BY REFERENCE

List hereunder the following documents if incorporated by reference and the Part
of the Form 10-K  (e.g.,  Part I, Part II,  etc.)  into  which the  document  is
incorporated:  (1) Any  annual  report  to  security  holders;  (2) Any proxy or
information  statement;  and (3) Any prospectus filed pursuant to Rule 424(b) or
(c) under the  Securities Act of 1933.  The listed  documents  should be clearly
described for identification  purposes (e.g.,  annual report to security holders
for fiscal year ended December 24, 1980).

                                      NONE

















                                       2
<PAGE>
PART I.

Item 1.  Business

Organization

WNC  Housing  Tax  Credit  Fund  IV,  L.P.,  Series 1 (the  "Partnership")  is a
California Limited  Partnership formed under the laws of the State of California
on May 4,  1993.  The  Partnership  was formed to  acquire  limited  partnership
interests in limited partnerships or limited liability companies ("Local Limited
Partnerships")  which own  multifamily  housing  complexes that are eligible for
low-income housing federal and, in certain cases,  California income tax credits
("Low Income Housing Credits").

The general partner of the Partnership is WNC Tax Credit Partners IV, L.P. ("TCP
IV"). The general  partner of TCP IV is WNC & Associates,  Inc.  ("Associates").
Wilfred N. Cooper,  Sr., through the Cooper  Revocable Trust,  owns 66.8% of the
outstanding  stock of Associates.  John B. Lester,  Jr. was the original limited
partner of the Partnership and owns,  through the Lester Family Trust,  28.6% of
the  outstanding  stock  of  Associates.  The  business  of the  Partnership  is
conducted  primarily  through  Associates as neither TCP IV nor the  Partnership
have employees of their own.

Pursuant to a  registration  statement  filed with the  Securities  and Exchange
Commission,  on October 20, 1993, the Partnership commenced a public offering of
10,000 Units of Limited Partnership Interest ("Units"), at a price of $1,000 per
Unit. The Partnership's  offering terminated on July 19, 1994. A total of 10,000
Limited Partnership Interests representing $10,000,000 had been sold. Holders of
Limited Partnership Interests are referred to herein as "Limited Partners."

Description of Business

The  Partnership's  principal  business  objective  is to  provide  its  Limited
Partners with Low Income Housing Credits.  The Partnership's  principal business
therefore  consists of investing as a limited partner or non-managing  member in
Local  Limited  Partnerships  each of which will own and operate a  multi-family
housing  complex (the "Housing  Complex")  which will qualify for the Low Income
Housing Credit.  In general,  under Section 42 of the Internal  Revenue Code, an
owner of low-income housing can receive the Low Income Housing Credit to be used
to reduce  Federal  taxes  otherwise due in each year of a ten-year  period.  In
general,  under Section 17058 of the  California  Revenue and Taxation  Code, an
owner of low-income housing can receive the Low Income Housing Credit to be used
against  California taxes otherwise due in each year of a four-year period.  The
Housing Complex is subject to a fifteen-year  compliance period (the "Compliance
Period"),  and under state law may have to be maintained  as low income  housing
for 30 or more years.

In general,  in order to avoid  recapture  of Low Income  Housing  Credits,  the
Partnership  does not  expect  that it will  dispose of its  interests  in Local
Limited Partnerships ("Local Limited Partnership Interests") or approve the sale
by any Local Limited  Partnership of its Housing Complex prior to the end of the
applicable  Compliance  Period.  Because  of  (i)  the  nature  of  the  Housing
Complexes,  (ii) the  difficulty of predicting  the resale market for low-income
housing  15 or more years in the  future,  and (iii) the  ability of  government
lenders to  disapprove  of transfer,  it is not possible at this time to predict
whether the liquidation of the  Partnership's  assets and the disposition of the
proceeds,  if any, in  accordance  with the  Partnership's  Agreement of Limited
Partnership,  as amended by Supplements  thereto (the "Partnership  Agreement"),
will be able to be accomplished  promptly at the end of the 15-year period. If a
Local  Limited  Partnership  is  unable  to  sell  its  Housing  Complex,  it is
anticipated that the local general partner ("Local General Partner") will either
continue to operate such Housing Complex or take such other actions as the Local
General  Partner  believes  to be in the  best  interest  of the  Local  Limited
Partnership.  Notwithstanding the preceding, circumstances beyond the control of
the  General  Partner  or the  Local  General  Partners  may  occur  during  the
Compliance   Period,   which  would  require  the  Partnership  to  approve  the
disposition of a Housing Complex prior to the end thereof, possibly resulting in
recapture of Low Income Housing Credits.

                                       3
<PAGE>
As of March 31, 1999, the Partnership  had invested in twenty-one  Local Limited
Partnerships.  Each of these Local Limited  Partnerships  owns a Housing Complex
that is eligible  for the  federal  Low Income  Housing  Credit.  Certain  Local
Limited Partnerships may also benefit from government programs promoting low- or
moderate-income housing.

The Partnership's  investments in Local Limited  Partnerships are subject to the
risks incident to the management and ownership of low-income  housing and to the
management and ownership of multi-unit  residential  real estate.  Some of these
risks  are that the Low  Income  Housing  Credit  could be  recaptured  and that
neither the  Partnership's  investments  nor the Housing  Complexes owned by the
Local Limited Partnerships will be readily marketable. To the extent the Housing
Complexes  receive  government  financing  or operating  subsidies,  they may be
subject to one or more of the following risks: difficulties in obtaining tenants
for the Housing Complexes; difficulties in obtaining rent increases; limitations
on cash distributions; limitations on sales or refinancing of Housing Complexes;
limitations on transfers of Local Limited Partnership Interests;  limitations on
removal of Local General Partners; limitations on subsidy programs; and possible
changes in applicable regulations. The Housing Complexes are subject to mortgage
indebtedness.  If a  Local  Limited  Partnership  does  not  make  its  mortgage
payments,  the lender could foreclose resulting in a loss of the Housing Complex
and Low Income Housing Credits.  As a limited partner or non-managing  member of
the Local Limited  Partnerships,  the Partnership  will have very limited rights
with respect to  management  of the Local  Limited  Partnerships,  and will rely
totally  on the  general  partners  or  managing  members  of the Local  Limited
Partnerships for management of the Local Limited Partnerships.  The value of the
Partnership's  investments  will be subject to  changes  in  national  and local
economic conditions,  including unemployment  conditions,  which could adversely
impact vacancy levels, rental payment defaults and operating expenses.  This, in
turn, could substantially  increase the risk of operating losses for the Housing
Complexes and the Partnership.  In addition,  each Local Limited  Partnership is
subject to risks relating to environmental hazards and natural disasters,  which
might be uninsurable.  Because the Partnership's operations will depend on these
and other  factors  beyond the  control  of the  General  Partner  and the Local
General  Partners,  there can be no assurance  that the  anticipated  Low Income
Housing Credits will be available to Limited Partners.

In addition,  Limited  Partners are subject to risks in that the rules governing
the Low Income  Housing  Credit are  complicated,  and the use of credits can be
limited.  The only  material  benefit from an investment in Units may be the Low
Income Housing Credits. There are limits on the transferability of Units, and it
is unlikely that a market for Units will  develop.  All  Partnership  management
decisions are made by the General Partner.

As a limited partner or non-managing  member,  the  Partnership's  liability for
obligations of each Local Limited Partnership is limited to its investment.  The
Local General Partners of each Local Limited  Partnership retain  responsibility
for developing,  constructing,  maintaining,  operating and managing the Housing
Complexes.

Item 2.  Properties

Through its investments in Local Limited  Partnerships,  the  Partnership  holds
limited  partnership  interests in the Housing  Complexes.  The following  table
reflects the status of the twenty-one Housing Complexes as the dates and for the
periods indicated:

                                       4
<PAGE>
<TABLE>
<CAPTION>

                                                        ------------------------------ ---------------------------------------------
                                                              As of March 31, 1999                As of December 31, 1998
                                                        ------------------------------ ---------------------------------------------
                                                         Partnership's                                                  Encumbrances
                                                         Total Investment  Amount of                     Estimated Low  of Local
Partnership                             General Partner  in Local Limited  Investment    Number   Occu-  Income Housing Limited
Name                       Location     Name             Partnerships      Paid to Date  of Units pancy  Credits        Partnerships
------------------------------------------------------------------------------------------------------------------------------------
<S>                        <C>          <C>                  <C>            <C>            <C>     <C>    <C>           <C>
Alpine Manor, L.P.         Alpine,      1600 Capital
                           Texas        Company, Inc.        $   195,000  $   195,000       36      94%   $  394,000    $   920,000

Baycity Village            Baytown,     Green Companies
Apartments, Limited        Texas        Development
Partnership                             Group, Inc.              301,000      301,000       62      97%      629,000      1,489,000

Beckwood Manor Seven       Marianna,    Phillips Development
Limited Partnership        Arkansas     Corporation              307,000      307,000       42     100%      636,000      1,395,000

Briscoe Manor Limited      Galena,      McKnight & Decoster,
Partnership                Maryland     Inc.                     308,000      308,000       31     100%      648,000      1,521,000

Evergreen Four Limited     Maynard,     Phillips Development
Partnership                Arkansas     Corporation              195,000      195,000       24      75%      402,000        873,000

Fawn Haven Limited         Manchester,  Georg E. Maharg and
Partnership                Ohio         Maharg Realty, Inc.      167,000      167,000       28      93%      376,000        862,000

Fort Stockton Manor, L.P.  Ft.          1600 Capital Company,
                           Stockton,    Inc.                     224,000      224,000       36      86%      453,000      1,059,000
                           Texas

Hidden Valley Limited      Gallup, New  Alan Deke Noftsker       412,000      412,000       40      93%      801,000      1,491,000
Partnership                Mexico

HOI Limited Partnership    Lenoir,      Housing Opportunities,
Of Lenoir                  North        Inc.                     198,000      198,000       34     100%      400,000        572,000
                           Carolina

Indian Creek Limited       Bucyrus,     Georg E. Maharg          306,000      306,000       48      96%      637,000      1,542,000
Partnership                Ohio

Laurel Creek Apartments    San Luis     San Luis Obispo
                           Obispo,      Non-Profit
                           California   Housing Corp.          1,030,000    1,030,000       24     100%    2,103,000        681,000

Madisonville Manor Senior  Madison-     Jean Johnson             174,000      174,000       32     100%      375,000        905,000
Citizens Complex, Ltd.     ville,Texas

</TABLE>

                                       5
<PAGE>
<TABLE>
<CAPTION>

                                                        ------------------------------ ---------------------------------------------
                                                              As of March 31, 1999                As of December 31, 1998
                                                        ------------------------------ ---------------------------------------------
                                                         Partnership's                                                  Encumbrances
                                                         Total Investment  Amount of                     Estimated Low  of Local
Partnership                             General Partner  in Local Limited  Investment    Number   Occu-  Income Housing Limited
Name                       Location     Name             Partnerships      Paid to Date  of Units pancy  Credits        Partnerships
------------------------------------------------------------------------------------------------------------------------------------
<S>                        <C>          <C>                  <C>          <C>              <C>     <C>  <C>           <C>
Mt. Graham Housing, Ltd.   Safford,     Rural Housing, Inc.      410,000      410,000       40      98%      788,000      1,416,000
                           Arizona

Northside Plaza            Angleton,    Jean Johnson             282,000      282,000       48     100%      607,000      1,369,000
Apartments, Ltd.           Texas

Pampa Manor, L.P.          Pampa,       1600 Capital Company,
                           Texas        Inc.                     180,000      180,000       32      84%      363,000        849,000

Regency Court Partners     Monrovia,    Community Housing
                           California   Assistance Program,
                                        Inc., a California
                                        Nonprofit Corporation  1,692,000    1,690,000      115      98%            -      5,283,000

Sandpiper Square, a        Aulander,    I. Norwood Stone         219,000      219,000       24      96%      433,000        953,000
Limited Partnership        North
                           Carolina

Seneca Falls East          Seneca       David R. Bacon and
Apartments Company II,     Falls, New   Frank Salvatore          276,000      253,000       32      97%      106,000        896,000
L.P.                       York

Vernon Manor, L.P.         Vernon,      1600 Capital Company,
                           Texas        Inc.                     161,000      161,000       28     100%      325,000        786,000

Waterford Place, a         Calhoun      Thomas E. Connelly, Jr.,
Limited Partnership        Falls,       TEC Rental Properties
                           South        Inc., Warren H.
                           Carolina     Abernathy, II and Solid
                                        South, Inc.              272,000      272,000       32     100%      549,000      1,189,000

Yantis Housing, Ltd.       Yantis,      Charles Cannon Jr.       145,000      145,000       24     100%      287,000        633,000
                           Texas                               ---------    ---------      ---     ----   ----------     ----------
                                                             $ 7,454,000  $ 7,429,000      812      96% $ 11,312,000  $  26,684,000
                                                               =========    =========      ===     ====   ==========     ==========
</TABLE>
                                       6


<PAGE>
<TABLE>
<CAPTION>


                                         --------------------------------------------------------------------------
                                                              For the year ended December 31, 1998
                                         --------------------------------------------------------------------------
                                                                                            Low Income Housing
                                                                                            Credits Allocated to
Partnership Name                                  Rental Income       Net Income (loss)     Partnership
-------------------------------------------------------------------------------------------------------------------
<S>                                            <C>                   <C>                         <C>
Alpine Manor, L.P.                             $       104,000       $      (19,000)                99%

Baycity Village Apartments, Limited
Partnership                                            260,000              (48,000)                99%

Beckwood Manor Seven Limited Partnership               142,000              (49,000)                95%

Briscoe Manor Limited Partnership                      156,000              (57,000)                99%

Evergreen Four Limited Partnership                      68,000              (39,000)                95%

Fawn Haven Limited Partnership                          78,000              (26,000)                99%

Fort Stockton Manor, L.P.                              109,000              (21,000)                99%

Hidden Valley Limited Partnership                      149,000              (32,000)                99%

HOI Limited Partnership Of Lenoir                      119,000              (45,000)                99%

Indian Creek Limited Partnership                       136,000              (48,000)                99%

Laurel Creek Apartments                                164,000              (22,000)                99%

Madisonville Manor Senior Citizens
Complex, Ltd.                                          105,000               (4,000)                99%

Mt. Graham Housing, Ltd.                               147,000              (59,000)                99%

Northside Plaza Apartments, Ltd.                       142,000              (12,000)                99%

Pampa Manor, L.P.                                      104,000              (15,000)                99%

Regency Court Partners                                 646,000             (224,000)                99%

Sandpiper Square, a Limited Partnership                 92,000              (21,000)                99%

Seneca Falls East Apartments Company
II, L.P.                                               124,000                9,000              99.98%

Vernon Manor, L.P.                                      84,000              (31,000)                99%

Waterford Place, a Limited Partnership                 120,000              (25,000)                99%

Yantis Housing, Ltd.                                   73,000               (11,000)                99%
                                                   -----------           -----------
                                               $    3,122,000        $     (799,000)
                                                   ===========           ===========
</TABLE>
                                       7


<PAGE>
Item 3.  Legal Proceedings

NONE.

Item 4.  Submission of Matters to a Vote of Security Holders

NONE.

PART II.

Item 5.  Market for Registrant's Common Equity and Related Stockholder Matters

Item 5a.

(a)  The  Units  are not  traded on a public  exchange  but were sold  through a
     public offering.  It is not anticipated that any public market will develop
     for the  purchase  and  sale of any  Unit and  none  exists.  Units  can be
     assigned  only if certain  requirements  in the  Partnership  Agreement are
     satisfied.

(b)  At March 31, 1999, there were 729 Limited Partners.

(c)  The Partnership was not designed to provide cash  distributions  to Limited
     Partners in  circumstances  other than  refinancing  or  disposition of its
     investments in Local Limited Partnerships.

(d)  No unregistered  securities  were sold by the Partnership  during the three
     months ended March 31, 1999.

Item 5b.

NOT APPLICABLE

Item 6.  Selected Financial Data

Selected balance sheet information for the Partnership is as follows:
<TABLE>
<CAPTION>

                                March 31                                    December 31
                         ------------------------  ---------------------------------------------------------------
                               1999         1998         1998         1997         1996         1995         1994
                               ----         ----         ----         ----         ----         ----         ----
                                      (Unaudited)
ASSETS
<S>                    <C>          <C>          <C>          <C>          <C>          <C>          <C>
Cash and cash
  equivalents          $    341,350 $    778,591 $    389,536 $    778,448 $    997,025 $  1,410,867 $  2,107,761
Investments in limited
  partnerships, net       4,298,485    4,778,445    4,495,621    4,976,247    5,771,116    6,928,034    7,852,303
Due from affiliate                -            -            -            -        9,020            -      409,286
Other assets                      -        4,395            -        3,000        6,986       16,239       21,900
                         ----------   ----------   ----------   ----------   ----------   ----------   ----------
                       $  4,639,835 $  5,561,431 $  4,885,157 $  5,757,695 $  6,784,147 $  8,355,140 $ 10,391,250
                         ==========   ==========   ==========   ==========   ==========   ==========   ==========
LIABILITIES

Due to limited         $     25,301 $     84,303 $     25,301 $     84,303 $    256,610 $    799,745 $  2,289,218
  partnerships
Accrued fees and
  expenses
  due to general
  partner
  and affiliates             80,940       71,967      106,500       65,235       91,982       65,438       75,820

PARTNERS' EQUITY          4,533,594    5,405,161    4,753,356    5,608,157    6,435,555    7,489,957    8,026,212
                         ----------   ----------   ----------   ----------   ----------   -----------  ----------
                       $  4,639,835 $  5,561,431 $  4,885,157 $  5,757,695 $  6,784,147 $  8,355,140 $ 10,391,250
                         ==========   ==========   ==========   ==========   ==========   ==========   ==========
</TABLE>
                                       8
<PAGE>

Selected  results  of  operations,  cash  flows  and other  information  for the
Partnership are as follows:
<TABLE>
<CAPTION>

                           For the Three Months                          For the Years Ended
                              Ended March 31                                 December 31
                          ------------------------  ---------------------------------------------------------------
                               1999          1998         1998         1997          1996         1995         1994
                               ----          ----         ----         ----          ----         ----         ----
                                       (Unaudited
<S>                     <C>           <C>           <C>          <C>         <C>           <C>          <C>
Income (loss) from
  operations            $   (33,750)  $   (17,496)  $ (126,723)  $  (62,968) $    (30,845) $   (17,817) $    17,315
Equity in losses of
  limited partnerships     (186,012)     (185,500)    (728,078)    (764,430)   (1,023,557)    (727,986)    (413,316)
                          ---------    ----------   ----------   ----------     ---------    ---------    ---------

Net loss                $  (219,762)  $  (202,996)  $ (854,801)  $ (827,398) $ (1,054,402) $  (745,803) $  (396,001)
                          =========    ==========   ==========   ==========     =========    =========    =========
Net loss allocated to:
  General Partner       $    (2,198)  $    (2,030)  $   (8,548)  $   (8,274) $    (10,544) $    (7,458) $    (3,960)
                          =========    ==========   ==========   ==========     =========    =========    =========
  Limited Partners      $  (217,564)  $  (200,966)  $ (846,253)  $ (819,124) $ (1,043,858) $  (738,345) $  (392,041)
                          =========    ==========   ==========   ==========     =========    =========    =========
Net loss per limited
  partner unit          $    (21.76)  $    (20.10)  $   (84.63)  $   (81.91) $    (104.39) $    (73.83) $    (50.35)
                          =========    ==========   ==========   ==========     =========    =========    =========
Outstanding weighted
  limited partner units      10,000        10,000       10,000       10,000        10,000       10,000        7,787
                          =========    ==========   ==========   ==========     =========    =========    =========
Net cash provided by
  (used in):
  Operating activities  $   (52,186)  $    (5,082)  $  (54,089)  $  (51,546)       22,420  $    55,437  $    46,649
  Investing activities        4,000         5,225     (334,823)    (170,284)     (437,806)    (914,830)  (5,053,552)
  Financing activities            -             -            -        3,253         1,544      162,499    7,113,635
                          ---------    ----------   ----------   ----------     ---------    ---------    ---------
Net change in cash
  and cash
  equivalents               (48,186)          143     (388,912)    (218,577)     (413,842)    (696,894)   2,106,732

Cash and cash
  equivalents,
  beginning of period       389,536       778,448      778,448      997,025     1,410,867    2,107,761        1,029
                          ---------    ----------   ----------   ----------     ---------    ---------    ---------
Cash and cash
  equivalents,
  end of period         $   341,350   $   778,591   $  389,536   $  778,448  $    997,025  $ 1,410,867  $ 2,107,761
                          =========    ==========   ==========   ==========     =========    =========    =========

Low Income  Housing  Credit per Unit was as follows for the years ended December 31:

                              1998           1997         1996         1995          1994
                              ----           ----         ----         ----          ----

Federal                 $      142    $       143   $      136   $      101  $         36
State                            -              -            -            -             -
                            ------         ------       ------       ------         -----
Total                   $      142    $       143   $      136   $      101  $         36
                            ======         ======       ======       ======         =====
</TABLE>
                                       9
<PAGE>
Item 7. Management's  Discussion and Analysis of Financial Condition and Results
of Operations

Financial Condition

The  Partnership's  assets at March 31, 1999 consisted  primarily of $341,350 in
cash and aggregate  investments in the twenty-one Local Limited  Partnerships of
$4,298,485.  Liabilities at March 31, 1999 were  $106,241,  of which $77,977 was
accrued annual  management fees, $2,963 was for expenses paid by an affiliate of
the  General  Partner due to the General  Partner or  affiliate  and $25,301 was
payables to limited partnerships.

Results of Operations

Three Months Ended March 31, 1999 Compared to Three Months Ended March 31, 1998.
The  Partnership's  net loss for the  three  months  ended  March  31,  1999 was
$(220,000),  reflecting an increase of $17,000 from the net loss experienced for
the three months  ended March 31, 1998.  The increase in net loss is due to loss
from  operations  which  increased by $17,000 to  $(34,000)  for the three month
period  ended March 31, 1999 from  $(17,000)  for the three month  period  ended
March 31, 1998 due to an increase in other  operating  expenses of $15,000 and a
decrease in interest income of $2,000.

Year Ended  December 31, 1998  Compared to Year Ended  December  31,  1997.  The
Partnership's  net loss  for 1998 was  $(855,000),  reflecting  an  increase  of
$28,000  from the net loss  experienced  in 1997.  The  increase  in net loss is
primarily due to operating  expenses  which  increased to $(83,000) in 1998 from
$(17,000)  in 1997,  partially  offset by a  decrease  in equity in losses  from
limited  partnerships  of $36,000,  because  the  investments  in certain  Local
Limited Partnerships reached $0 during 1998.

Year Ended  December 31, 1997  Compared to Year Ended  December  31,  1996.  The
Partnership's  net loss  for  1997 was  $(827,000),  reflecting  a  decrease  of
$227,000  from the net loss  experienced  in 1996.  The  decrease in net loss is
primarily due to equity in losses from limited  partnerships  which decreased to
$(764,000) in 1997 from  $(1,024,000) in 1996 was partially offset by a decrease
in interest income of $26,000 and an increase in operating expenses of $6,000 in
1998.

Cash Flows

Three Months Ended March 31, 1999 Compared to Three Months Ended March 31, 1998.
Net cash used  during  the three  months  ended  March  31,  1999 was  $(48,000)
compared to a net  increase in cash for the three months ended March 31, 1998 of
$100.  The change was due to an increase in cash paid to the General  Partner of
affiliates  of  $32,000  and an  increase  in cash  paid to  third  parties  for
operating expenses of $15,000.

Year Ended  December 31, 1998 Compared to Year Ended December 31, 1997. Net cash
used in 1998 was  $(389,000),  compared to net cash used in 1997 of  $(219,000).
The change was due  primarily  to an  increase in cash used for  investments  in
limited  partnerships of $163,000,  an increase in operating costs paid to third
parties of $65,000, a decrease in distributions from Local Limited  Partnerships
of $2,000,  partially  offset by a decrease in cash paid to the General  Partner
and affiliates of $60,000.

                                       10
<PAGE>

Year Ended  December 31, 1997 Compared to Year Ended December 31, 1996. Net cash
used in 1997 was $(219,000),  compared to $(414,000) in 1996. The change was due
primarily to a decrease in cash used for investments in limited  partnerships of
$270,000,  partially  offset by an increase in cash paid to the General  Partner
and affiliates of $36,000,  a decrease in interest income of $26,000, a decrease
in interest receivable  collected of $5,000, an increase in operating costs paid
to third parties of $6,000,  and a decrease in distributions  from Local Limited
Partnerships of $2,000.

The Partnership  expects its future cash flows,  together with its net available
assets at March 31, 1999,  to be  sufficient  to meet all  currently  forseeable
future cash requirements.

Impact of Year 2000

WNC & Associates, Inc.

Status of Readiness

Information Technology (IT) Systems. The Partnership relies on the IT systems of
WNC, its ultimate  general  partner.  IT systems include  computer  hardware and
software  used to produce  financial  reports and tax return  information.  This
information  is then  used to  generate  reports  to  investors  and  regulatory
agencies, including the Internal Revenue Service and the Securities and Exchange
Commission. The IT systems of WNC are year 2000 compliant.

Non-IT Systems. The Partnership also relies on the non-IT systems of WNC. Non-IT
systems  include  machinery and  equipment  such as  telephones,  voice mail and
electronic  postage  equipment.  Except  for one  telephone  system,  the non-IT
systems of WNC are year 2000  compliant.  The one telephone  system will require
the replacement of one computer and one software application, both of which will
be completed on or before October 1, 1999.

Service  Providers.  WNC also  relies on the IT and  non-IT  systems  of service
providers. Service providers include utility companies,  financial institutions,
telecommunications carriers,  municipalities, and other outside vendors. WNC has
obtained verbal assurances from its material service providers (electrical power
provider,  financial institutions and telecommunications carriers) that their IT
and non-IT systems are year 2000 compliant.  There can be no assurance that this
compliance  information  is  correct.  There also can be no  assurance  that the
systems of other,  less-important  service providers and outside vendors will be
year 2000 compliant.

Costs to Address Year 2000 Issues

The cost to address  year 2000  issues for WNC has been less than  $20,000.  The
cost to replace the telephone  system noted above will be less than $5,000.  The
cost to deal with potential year 2000 issues of other outside  vendors cannot be
estimated at this time.

Risk of Year 2000 Issues

The most  reasonable and likely result from non-year 2000  compliance of systems
of the service  providers  noted above will be the disruption of normal business
operations for WNC. This disruption would, in turn, lead to delays in performing
reporting and fiduciary responsibilities on behalf of the Partnership. The worst
case scenario would be the replacement of a service provider. These delays would
likely  be  temporary  and  would  likely  not  have a  material  effect  on the
Partnership or WNC.

                                       11
<PAGE>

Local Limited Partnerships

Status of Readiness

WNC is in the  process of  obtaining  year 2000  certifications  from each Local
General Partner of each Local Limited  Partnership.  Those  certifications  will
represent  to the  Partnership  that the IT and non-IT  systems  critical to the
operation of the Housing Complexes and investor reporting to the Partnership are
year 2000 compliant. These certifications will also represent to the Partnership
that the IT and non-IT  systems of property  management  companies,  independent
accountants,    electrical   power   providers,   financial   institutions   and
telecommunications  carriers used by the Local Limited Partnership are year 2000
compliant.

There can be no assurance that the representations in the certifications will be
correct.   There  also  can  be  no   assurance   that  the  systems  of  other,
less-important  service  providers  and  outside  vendors,  upon which the Local
Limited Partnerships rely, will be year 2000 compliant.

Costs to Address Year 2000 Issues

There  will be no cost to the  Partnership  as a result of  assessing  year 2000
issues for the Local Limited Partnerships.  The cost to deal with potential year
2000 issues of the Local Limited Partnerships cannot be estimated at this time.

Risk of Year 2000 Issues

There may be Local  General  Partners who indicate  that they or their  property
management  company are not year 2000  compliant and do not have plans to become
year 2000  compliant  before the end of 1999.  There may be other Local  General
Partners who are  unwilling to respond to the  certification  request.  The most
likely result of either non-compliance or failure to respond will be the removal
and  replacement  of the property  management  company  and/or the Local General
Partner with year 2000 compliant operators.

Despite the efforts to obtain certifications, there can be no assurance that the
Partnership  will be unaffected  by year 2000 issues.  The most  reasonable  and
likely  result from non-year 2000  compliance  will be the  disruption of normal
business  operations  for the  Local  Limited  Partnerships,  including  but not
limited  to the  possible  failure  to  properly  collect  rents and meet  their
obligations in a timely manner.  This disruption  would, in turn, lead to delays
by  the  Local  Limited  Partnerships  in  performing  reporting  and  fiduciary
responsibilities  on behalf of the  Partnership.  The worst-case  scenario would
include the  initiation of  foreclosure  proceedings on the property by mortgage
debt holders. Under these circumstances, WNC or its affiliates will take actions
necessary  to  minimize  the risk of  foreclosure,  including  the  removal  and
replacement of a Local General  Partner by the  Partnership.  These delays would
likely  be  temporary  and  would  likely  not  have a  material  effect  on the
Partnership or WNC.

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk

NOT APPLICABLE

Item 8.  Financial Statements and Supplementary Data

                                       12

<PAGE>


               REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS


To the Partners
WNC Housing Tax Credit Fund IV, L.P., Series 1


We have audited the  accompanying  balance  sheet of WNC Housing Tax Credit Fund
IV, L.P., Series 1 (a California Limited  Partnership) (the "Partnership") as of
March 31, 1999 and December 31, 1998, and the related  statements of operations,
partners'  equity  (deficit) and cash flows for the three months ended March 31,
1999 and the year ended December 31, 1998.  These  financial  statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these  financial  statements  based on our audits.  A  significant
portion of the  financial  statements of the limited  partnerships  in which the
Partnership  is a limited  partner were audited by other  auditors whose reports
have been  furnished to us. As discussed in Note 2 to the financial  statements,
the Partnership  accounts for its investments in limited  partnerships using the
equity  method.   The  portion  of  the  Partnership's   investment  in  limited
partnerships  audited  by other  auditors  represented  62% and 61% of the total
assets of the Partnership at March 31, 1999 and December 31, 1998, respectively.
Our  opinion,  insofar as it relates to the amounts  included  in the  financial
statements for the limited  partnerships  which were audited by others, is based
solely on the reports of the other auditors.

We  conducted  our  audits  in  accordance  with  generally   accepted  auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We  believe  that our audits and the  reports  of the other  auditors  provide a
reasonable basis for our opinion.

In our  opinion,  based on our audits and the  reports  of other  auditors,  the
financial statements referred to above present fairly, in all material respects,
the  financial  position of WNC Housing  Tax Credit Fund IV,  L.P.,  Series 1 (a
California Limited  Partnership) as of March 31, 1999 and December 31, 1998, and
the  results of its  operations  and its cash flows for the three  months  ended
March  31,  1999 and the year  ended  December  31,  1998,  in  conformity  with
generally accepted accounting principles.



                                              /s/ BDO SEIDMAN, LLP
                                              BDO SEIDMAN, LLP

Orange County, California
July 30, 1999













                                       13
<PAGE>



                          INDEPENDENT AUDITORS' REPORT



To the Partners
WNC Housing Tax Credit Fund IV, L.P., Series 1


We have audited the  accompanying  balance  sheet of WNC Housing Tax Credit Fund
IV, L.P., Series 1 ( a California Limited Partnership) (the "Partnership") as of
December 31, 1997, and the related  statements of operations,  partners'  equity
(deficit)  and cash  flows for each of the years in the  two-year  period  ended
December 31, 1997.  These  financial  statements are the  responsibility  of the
Partnership's  management.  Our responsibility is to express an opinion on these
financial  statements  based  on our  audit.  We did  not  audit  the  financial
statements of the limited  partnerships in which WNC Housing Tax Credit Fund IV,
L.P., Series 1 is a limited partner.  These investments,  as discussed in Note 3
to the  financial  statements,  are  accounted  for by the  equity  method.  The
financial   statements  of  substantially  all  of  the  limited   partnerships,
representing  87% of the total  assets of WNC Housing Tax Credit Fund IV,  L.P.,
Series 1 at December 31, 1997, were audited by other auditors whose reports have
been  furnished  to us, and our  opinion,  insofar as it relates to the  amounts
included for these limited  partnerships,  is based solely on the reports of the
other auditors.

We  conducted  our  audits  in  accordance  with  generally   accepted  auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We  believe  that our audits and the  reports  of the other  auditors  provide a
reasonable basis for our opinion.

In our opinion,  based on our audits and the reports of the other auditors,  the
financial statements referred to above present fairly, in all material respects,
the  financial  position of WNC Housing  Tax Credit Fund IV,  L.P.,  Series 1 (a
California Limited  Partnership) as of December 31, 1997, and the results of its
operations and its cash flows for each of the years in the two-year period ended
December 31, 1997, in conformity with generally accepted accounting principles.



                                              /s/ CORBIN & WERTZ
                                              CORBIN & WERTZ
Irvine, California
April 23,  1998, except  for
Notes  2  and  6  which  are
dated as of December 4, 1998







                                       14
<PAGE>


                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 1
                       (A California Limited Partnership)

                                 BALANCE SHEETS


<TABLE>
<CAPTION>


                                                              March 31                        December 31
                                                    ------------------------------   ------------------------------
                                                            1999             1998             1998            1997
                                                            ----             ----             ----            ----
                                                                     (Unaudited)
ASSETS
<S>                                               <C>              <C>             <C>              <C>
Cash and cash equivalents                         $      341,350   $      778,591  $       389,536  $      778,448
Investments in limited partnerships
  (Note 2)                                             4,298,485        4,778,445        4,495,621       4,976,247
Other assets                                                   -            4,395                -           3,000
                                                       ---------        ---------        ---------       ---------
                                                  $    4,639,835   $    5,561,431  $     4,885,157  $    5,757,695
                                                       =========        =========        =========       =========
LIABILITIES AND PARTNERS' EQUITY
  (DEFICIT)

Liabilities:
  Payables to limited partnerships (Note 4)       $       25,301   $       84,303  $        25,301  $       84,303
  Accrued fees and advances due to General
    Partner and affiliate (Note 3)                        80,940           71,967          106,500          65,235
                                                       ---------        ---------        ---------       ---------
    Total liabilities                                    106,241          156,270          131,801         149,538
                                                       ---------        ---------        ---------       ---------
Commitments and contingencies

Partners' equity (deficit):
  General partner                                        (54,565)         (45,849)         (52,367)        (43,819)
  Limited partners (10,000 units authorized,
    10,000 units issued and outstanding)               4,588,159        5,451,010        4,805,723       5,651,976
                                                       ---------        ---------        ---------       ---------
     Total partners' equity                            4,533,594        5,405,161        4,753,356       5,608,157
                                                       ---------        ---------        ---------       ---------
                                                  $    4,639,835   $    5,561,431  $     4,885,157  $    5,757,695
                                                       =========        =========        =========       =========

</TABLE>

                 See accompanying notes to financial statements
                                       15

<PAGE>


                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 1
                       (A California Limited Partnership)

                            STATEMENTS OF OPERATIONS


<TABLE>
<CAPTION>
                                         For the Three Months Ended          For the Years Ended December 31
                                                  March 31
                                         ----------------------------   -------------------------------------------
                                                1999            1998           1998            1997           1996
                                                ----            ----           ----            ----           ----
                                                          (Unaudited)
<S>                                    <C>             <C>             <C>            <C>            <C>
Interest income                        $       4,084   $       6,187   $     27,708   $      25,676  $      51,654
                                           ---------      ----------      ---------       ---------      ---------
Operating expenses:
  Amortization (Note 2)                        7,124           7,827         31,369          31,416         31,032
  Asset management fees (Note 3)              10,000          10,000         40,000          40,000         40,000
  Other                                       20,710           5,856         83,062          17,228         11,467
                                           ---------      ----------      ---------       ---------      ---------
    Total operating expenses                  37,834          23,683        154,431          88,644         82,499
                                           ---------      ----------      ---------       ---------      ---------

Loss from operations                         (33,750)        (17,496)      (126,723)        (62,968)       (30,845)

Equity in losses of limited
  partnerships (Note 2)                     (186,012)       (185,500)      (728,078)       (764,430)    (1,023,557)
                                           ---------      ----------      ---------       ---------      ---------
Net loss                               $    (219,762)  $    (202,996)  $   (854,801)  $    (827,398) $  (1,054,402)
                                           =========      ==========      =========       =========      =========
Net loss allocated to:
   General partner                     $      (2,198)  $      (2,030)  $     (8,548)  $      (8,274) $     (10,544)
                                           =========      ==========      =========       =========      =========
   Limited partners                    $    (217,564)  $    (200,966)  $   (846,253)  $    (819,124) $  (1,043,858)
                                           =========      ==========      =========       =========      =========
Net loss per limited partner unit      $      (21.76)  $      (20.10)  $     (84.63)  $      (81.91) $     (104.39)
                                           =========      ==========      =========       =========      =========
Outstanding weighted limited
  partner units                               10,000          10,000         10,000          10,000         10,000
                                           =========      ==========      =========       =========      =========

</TABLE>

                 See accompanying notes to financial statements
                                       16

<PAGE>


                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 1
                       (A California Limited Partnership)

                    STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

                  For The Three Months Ended March 31, 1999 and
              For The Years Ended December 31, 1998, 1997 and 1996


                                     General        Limited
                                     Partner        Partners          Total
                                     -------        --------          -----

Partners' equity (deficit)
  at January 1, 1996             $  (25,001)     $  7,514,958    $   7,489,957

Net loss                            (10,544)       (1,043,858)      (1,054,402)
                                  ---------        ----------       ----------
Partners' equity (deficit)
  at December 31, 1996              (35,545)        6,471,100        6,435,555

Net loss                             (8,274)         (819,124)        (827,398)
                                  ---------        ----------       ----------
Partners' equity (deficit)
  at December 31, 1997              (43,819)        5,651,976        5,608,157

Net loss                             (8,548)         (846,253)        (854,801)
                                  ---------        ----------       ----------
Partners' equity (deficit)
  at December 31, 1998              (52,367)        4,805,723        4,753,356

Net loss                             (2,198)         (217,564)        (219,762)
                                  ---------        ----------       ----------
Partners' equity (deficit)
  at March 31, 1999              $  (54,565)     $  4,588,159    $   4,533,594
                                  =========        ==========       ==========


                 See accompanying notes to financial statements
                                       17

<PAGE>
                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 1
                       (A California Limited Partnership)

                            STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                            For the Three Months
                                               Ended March 31                 For the Years Ended December 31
                                          --------------------------    -----------------------------------------
                                                1999           1998           1998           1997           1996
                                                ----           ----           ----           ----           ----
                                                         (Unaudited)
Cash flows from operating activities:
<S>                                     <C>            <C>            <C>            <C>            <C>
  Net loss                              $   (219,762)  $   (202,996)  $   (854,801)  $   (827,398)  $ (1,054,402)
  Adjustments  to reconcile  net loss
    to net cash (used in) provided by
    operating activities:
    Amortization                               7,124          7,827         31,369         31,416         31,032
    Equity in losses of limited
      partnerships                           186,012        185,500        728,078        764,430      1,023,557
    Change in accrued fees and
      expenses due to general partner
      and affiliates                         (25,560)         6,732         41,265        (30,000)        25,000
    Change in receivable from
      affiliates                                   -              -              -          9,020         (9,020)
    Change in other assets                         -         (2,145)             -            986          6,253
                                           ---------      ---------      ---------      ---------      ---------
Net cash provided by (used in)
  operating activities                       (52,186)        (5,082)       (54,089)       (51,546)        22,420
                                           ---------      ---------      ---------      ---------      ---------
Cash flows from investing activities:
  Investments in limited
    partnerships, net                              -              -       (335,059)      (172,307)      (442,379)
  Capitalized acquisition costs and
    fees                                           -              -         (5,789)        (5,502)        (5,502)
  Distributions from limited
    partnerships                               4,000          5,225          6,025          7,525         10,075
                                           ---------      ---------      ---------      ---------      ---------
Net cash provided by (used in)
  investing activities                         4,000          5,225       (334,823)      (170,284)      (437,806)
                                           ---------      ---------      ---------      ---------      ---------
Cash flows from financing activities:
  Changes from advances from
    general partner and affiliates
    for:
    Other                                          -              -              -          3,253          1,544
                                           ---------      ---------      ---------      ---------      ---------
Net cash provided by financing
  activities                                       -              -              -          3,253          1,544
                                           ---------      ---------      ---------      ---------      ---------
Net increase (decrease) in cash and
  cash equivalents                           (48,186)           143       (388,912)      (218,577)      (413,842)

Cash and cash equivalents, beginning
  of period                                  389,536        778,448        778,448        997,025      1,410,867
                                           ---------      ---------      ---------      ---------      ---------
Cash and cash equivalents, end of
  period                                $    341,350   $    778,591   $    389,536   $    778,448   $    997,025
                                           =========      =========      =========      =========      =========

</TABLE>
                                       18


<PAGE>
                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 1
                       (A California Limited Partnership)

                      STATEMENTS OF CASH FLOWS - CONTINUED


<TABLE>
<CAPTION>


                                            For the Three Months
                                               Ended March 31                For the Years Ended December 31
                                          --------------------------    -----------------------------------------

                                                1999           1998           1998           1997           1996
                                                ----           ----           ----           ----           ----
                                                         (Unaudited)

SUPPLEMENTAL DISCLOSURE OF
  CASH FLOW INFORMATION
<S>                                     <C>            <C>            <C>            <C>            <C>
   Taxes paid                           $          -   $          -   $        800   $        800   $        800
                                           =========      =========      =========      =========      =========
</TABLE>

SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING AND INVESTING ACTIVITIES
During the year ended December 31, 1998, the Partnership  incurred,  but did not
pay, $22,998 in payables to a limited partnership.

















                 See accompanying notes to financial statements
                                       19

<PAGE>
                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 1
                       (A California Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS

       For The Three Months Ended March 31, 1999 and 1998 (Unaudited) and
              For The Years Ended December 31, 1998, 1997 and 1996

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

WNC Housing Tax Credit Fund IV, L.P., Series 1, a California Limited Partnership
(the  "Partnership"),  was  formed on May 4, 1993 under the laws of the state of
California,  and commenced  operations on October 20, 1993. The  Partnership was
formed to invest  primarily in other limited  partnerships  (the "Local  Limited
Partnerships")  which  own  and  operate  multi-family  housing  complexes  (the
"Housing  Complex") that are eligible for low income housing credits.  The local
general   partners  (the  "Local  General   Partners")  of  each  Local  Limited
Partnership retain  responsibility  for maintaining,  operating and managing the
Housing Complex.

The  general  partner  is WNC  Tax  Credit  Partners,  IV,  L.P.  (the  "General
Partner"), a California limited partnership.  WNC & Associates,  Inc. ("WNC") is
the general partner of the General Partner.  Wilfred N. Cooper, Sr., through the
Cooper  Revocable  Trust,  owns 66.8% of the  outstanding  stock of WNC. John B.
Lester,  Jr.  was the  original  limited  partner of the  Partnership  and owns,
through the Lester Family Trust, 28.6% of the outstanding stock of WNC.

The financial  statements  include only activity relating to the business of the
Partnership,  and do not give  effect to any assets that the  partners  may have
outside of their interests in the Partnership, or to any obligations,  including
income taxes, of the partners.

The  Partnership  Agreement  authorized the sale of up to 10,000 units at $1,000
per Unit  ("Units").  The offering of Units concluded in July 1994 at which time
10,000 Units in the amount of $10,000,000 had been accepted. The General Partner
has a 1% interest in operating  profits and losses,  taxable  income and losses,
cash  available  for  distribution  from the  Partnership  and tax credits.  The
limited  partners  will  be  allocated  the  remaining  99% of  these  items  in
proportion to their respective investments.

After the limited partners have received proceeds from sale or refinancing equal
to their capital contributions and their return on investment (as defined in the
Partnership  Agreement) and the General  Partner has received  proceeds equal to
its capital contribution and subordinated  disposition fee (as described in Note
3) from the  remainder,  any  additional  sale or  refinancing  proceeds will be
distributed  90% to the limited  partners  (in  proportion  to their  respective
investments) and 10% to the General Partner.

Change in Reporting Year End

The  Partnership  has  elected  to change its year end for  financial  reporting
purposes from December 31 to March 31. All  financial  information  reflected in
the financial statements and related footnotes has been adjusted for this change
in year end except for the combined condensed financial  information relating to
the Local Limited Partnerships included in Note 2.

Due to the change in year end, unaudited financial information as of and for the
three months ended March 31, 1998 is included in the  financial  statements  for
comparative  purposes  only.  The  financial  statements as of and for the three
months  ended  March  31,  1998  are  unaudited  but  include  all   adjustments
(consisting  of normal  recurring  adjustments)  which  are,  in the  opinion of
management,  necessary for a fair statement of financial position and results of
operations of the Partnership for the interim period.

                                       20


<PAGE>
                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 1
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

       For The Three Months Ended March 31, 1999 and 1998 (Unaudited) and
              For The Years Ended December 31, 1998, 1997 and 1996


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued

Risks and Uncertainties

The Partnership's  investments in Local Limited  Partnerships are subject to the
risks incident to the management and ownership of low-income  housing and to the
management and ownership of multi-unit  residential  real estate.  Some of these
risks  are that the low  income  housing  credit  could be  recaptured  and that
neither the  Partnership's  investments  nor the Housing  Complexes owned by the
Local Limited Partnerships will be readily marketable. To the extent the Housing
Complexes  receive  government  financing  or operating  subsidies,  they may be
subject to one or more of the following risks: difficulties in obtaining tenants
for the Housing Complexes; difficulties in obtaining rent increases; limitations
on cash distributions; limitations on sales or refinancing of Housing Complexes;
limitations on transfers of Local Limited Partnership Interests;  limitations on
removal of Local General Partners; limitations on subsidy programs; and possible
changes in applicable regulations.  The Housing Complexes are or will be subject
to  mortgage  indebtedness.  If a Local  Limited  Partnership  does not make its
mortgage payments, the lender could foreclose resulting in a loss of the Housing
Complex  and  low-income  housing  credits.  As a limited  partner  of the Local
Limited Partnerships, the Partnership will have very limited rights with respect
to management of the Local  Limited  Partnerships,  and will rely totally on the
Local General  Partners of the Local Limited  Partnerships for management of the
Local Limited Partnerships.  The value of the Partnership's  investments will be
subject  to  changes  in  national  and  local  economic  conditions,  including
unemployment  conditions,  which could adversely  impact vacancy levels,  rental
payment  defaults and operating  expenses.  This, in turn,  could  substantially
increase  the  risk of  operating  losses  for  the  Housing  Complexes  and the
Partnership.  In addition,  each Local Limited  Partnership  is subject to risks
relating  to  environmental  hazards  and  natural  disasters,  which  might  be
uninsurable. Because the Partnership's operations will depend on these and other
factors  beyond  the  control  of the  General  Partner  and the  Local  General
Partners,  there can be no assurance  that the  anticipated  low income  housing
credits will be available to Limited Partners.

In addition,  Limited  Partners are subject to risks in that the rules governing
the low income  housing  credit are  complicated,  and the use of credits can be
limited.  The only  material  benefit from an investment in Units may be the low
income housing credits. There are limits on the transferability of Units, and it
is unlikely that a market for Units will develop.  All management decisions will
be made by the General Partner.

Method of Accounting for Investments in Limited Partnerships

The Partnership  accounts for its investments in limited  partnerships using the
equity method of  accounting,  whereby the  Partnership  adjusts its  investment
balance for its share of the Local Limited  Partnership's  results of operations
and for any distributions received. The accounting policies of the Local Limited
Partnerships are consistent with those of the Partnership. Costs incurred by the
Partnership  in  acquiring  the  investments  are  capitalized  as  part  of the
investment account and are being amortized over 30 years (see Note 2).

Losses from limited partnerships for the years ended December 31, 1998, 1997 and
1996 have been recorded by the Partnership based on reported results provided by
the Local Limited  Partnerships.  Losses from limited partnerships for the three
months ended March 31, 1999 and 1998 have been  estimated by  management  of the
Partnership.  Losses from limited partnerships allocated to the Partnership will
not be  recognized to the extent that the  investment  balance would be adjusted
below zero.

Offering Expenses

Offering  expenses consist of underwriting  commissions,  legal fees,  printing,
filing and  recordation  fees,  and other costs  incurred  with selling  limited
partnership  interests in the  Partnership.  The General Partner is obligated to
pay all  offering  and  organization  costs in  excess of 15%  (including  sales
commissions) of the total offering proceeds.  Offering expenses are reflected as
a reduction of limited  partners'  capital and amounted to $1,356,705 at the end
of all periods presented.

                                       21
<PAGE>
                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 1
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

       For The Three Months Ended March 31, 1999 and 1998 (Unaudited) and
              For The Years Ended December 31, 1998, 1997 and 1996

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued

Use of Estimates

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of assets  and  liabilities  and  disclosure  of
contingent assets and liabilities at the date of the financial  statements,  and
the  reported  amounts of revenues  and expenses  during the  reporting  period.
Actual results could materially differ from those estimates.

Cash and Cash Equivalents

The  Partnership   considers  all  highly  liquid   investments  with  remaining
maturities of three months or less when purchased to be cash equivalents.  There
were no cash equivalents as of March 31, 1999 and December 31, 1998 and 1997.

Concentration of Credit Risk

At March 31,  1999,  the  Partnership  maintained  a cash  balance  at a certain
financial institution in excess of the maximum federally insured amounts.

Net Loss Per Limited Partner Unit

Net loss per limited  partnership  unit is  calculated  pursuant to Statement of
Financial  Accounting  Standards No. 128,  Earnings Per Share. Net loss per unit
includes no dilution  and is computed  by  dividing  loss  available  to limited
partners by the weighted average number of units outstanding during the period.
Calculation of diluted net income per unit is not required.

Reporting Comprehensive Income

In June 1997,  the FASB  issued  Statement  of  Financial  Accounting  Standards
("SFAS") No. 130, Reporting  Comprehensive  Income.  This statement  establishes
standards for reporting the components of comprehensive income and requires that
all items that are  required to be  recognized  under  accounting  standards  as
components of comprehensive  income be included in a financial statement that is
displayed with the same prominence as other financial statements.  Comprehensive
income  includes net income as well as certain items that are reported  directly
within a separate  component  of  Partners'  equity and bypass net  income.  The
Partnership  adopted the  provisions of this  statement in 1998. For the periods
presented,  the Partnership has no elements of other  comprehensive  income,  as
defined by SFAS No. 130.

Reclassifications

Certain  prior  year  balances  have been  reclassified  to  conform to the 1999
presentation.

                                       22
<PAGE>
                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 1
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

       For The Three Months Ended March 31, 1999 and 1998 (Unaudited) and
              For The Years Ended December 31, 1998, 1997 and 1996

NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS

As of the periods  presented,  the Partnership had acquired limited  partnership
interests  in  twenty-one  Local  Limited  Partnerships,  each of which owns one
housing  complex  consisting  of an  aggregate  of 812  apartment  units.  As of
December 31, 1998,  construction on all multifamily complexes was complete.  The
respective general partners of the Local Limited  Partnerships manage the day to
day operations of the entities.  Significant Local Limited Partnership  business
decisions require approval from the Partnership.  The Partnership,  as a limited
partner,  is  generally  entitled  to 99%,  as  specified  in the Local  Limited
Partnership agreements,  of the operating profits and losses, taxable income and
losses and tax credits of the Local Limited Partnerships.

The  Partnership's  investments  in Local Limited  Partnerships  as shown in the
balance sheets as of December 31, 1998 and 1997 are  approximately  $776,000 and
$817,000,  respectively,  greater than the Partnership's  equity as shown in the
Local Limited Partnerships'  financial statements.  This difference is primarily
due to unrecorded losses, as discussed below,  acquisition,  selection and other
costs related to the acquisition of the investments  which have been capitalized
in the Partnership's  investment account and to capital contributions payable to
the limited  partnerships which were netted against partner capital in the Local
Limited Partnership's financial statements.

Equity in losses of Local  Limited  Partnerships  is recognized in the financial
statements  until the related  investment  account is reduced to a zero balance.
Losses  incurred  after  the  investment  account  is  reduced  to zero  are not
recognized. If the Local Limited Partnerships report net income in future years,
the  Partnership  will resume applying the equity method only after its share of
such net  income  equals  the share of net  losses  not  recognized  during  the
period(s) the equity method was suspended.

Distributions  received by limited  partners are accounted for as a reduction of
the investment balance.  Distributions received after the investment has reached
zero are recognized as income.

At March 31, 1999, the investment accounts in certain Local Limited Partnerships
have  reached  a zero  balance.  Consequently,  a portion  of the  Partnership's
estimate of its share of losses for the three month  period ended March 31, 1999
amounting to approximately  $16,000 have not been recognized.  The Partnership's
share  of  losses  during   the  year  ended  December  31,  1998  amounting  to
approximately  $59,000,  have not been  recognized.  As of March 31,  1999,  the
aggregate  share of net losses not  recognized  by the  Partnership  amounted to
$75,000.

Following is a summary of the equity method activity of the investments in Local
Limited Partnerships for the periods presented:
<TABLE>
<CAPTION>

                                                            For the Three
                                                             Months Ended               For the Years Ended
                                                               March 31                    December 31
                                                            ---------------    -----------------------------------

                                                                      1999               1998                1997
                                                                      ----               ----                ----

<S>                                                       <C>                <C>                 <C>
Investments per balance sheet, beginning of period        $      4,495,621   $      4,976,247    $      5,771,116
Capital contributions paid, net                                          -            276,057                   -
Distributions received                                              (4,000)            (6,025)             (7,525)
Capitalized acquisition fees and costs                                   -              5,789               5,502
Equity in losses of limited partnerships                          (186,012)          (728,078)           (764,430)
Amortization of paid acquisition fees and costs                     (7,124)           (28,369)            (28,416)
                                                              -------------      -------------       -------------
Investments per balance sheet, end of period              $      4,298,485   $      4,495,621    $      4,976,247
                                                              =============      =============       =============

</TABLE>
                                       23

<PAGE>
                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 1
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

       For The Three Months Ended March 31, 1999 and 1998 (Unaudited) and
              For The Years Ended December 31, 1998, 1997 and 1996

NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued

The financial  information from the individual financial statements of the Local
Limited Partnerships include rental and interest subsidies. Rental subsidies are
included in total revenues and interest  subsidies are generally  netted against
interest expense.  Approximate combined condensed financial information from the
individual financial statements of the Local Limited Partnerships as of December
31 and for the years then ended is as follows:

                        COMBINED CONDENSED BALANCE SHEETS

                                                         1998             1997
                                                         ----             ----
ASSETS

Buildings and improvements,
  net of accumulated depreciation
  of $4,545,000 and $3,474,000 for 1998
  and 1997, respectively                        $  30,033,000    $  30,271,000
Land                                                1,610,000        1,221,000
Due from related parties                               31,000           13,000
Other assets                                        1,953,000        1,638,000
                                                   ----------       ----------
                                                $  33,627,000    $  33,143,000
                                                   ==========       ==========
LIABILITIES

Mortgage and construction loans payable         $  26,684,000    $  26,032,000
Other liabilities (including due to
  related parties of $957,000 and $751,000
  as of December 31, 1998 and 1997,
  respectively)                                     1,985,000        1,714,000
                                                   ----------       ----------
                                                   28,669,000       27,746,000
                                                   ----------       ----------
PARTNERS' CAPITAL

WNC Housing Tax Credit Fund IV, L.P., Series I      3,720,000        4,159,000
Other partners                                      1,238,000        1,238,000
                                                   ----------       ----------
                                                    4,958,000        5,397,000
                                                   ----------       ----------
                                                $  33,627,000    $  33,143,000
                                                   ===========      ===========

                                       24

<PAGE>
                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 1
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

       For The Three Months Ended March 31, 1999 and 1998 (Unaudited) and
              For The Years Ended December 31, 1998, 1997 and 1996

NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued

                   COMBINED CONDENSED STATEMENTS OF OPERATIONS

                                       1998             1997              1996
                                       ----             ----              ----

Revenues                   $      3,222,000   $    3,182,000    $    3,004,000
                                 ----------       ----------        ----------
Expenses:
  Operating expenses              2,054,000        1,874,000         1,889,000
  Interest expense                  880,000        1,019,000         1,064,000
  Depreciation and
    amortization                  1,087,000        1,064,000         1,087,000
                                 ----------       ----------        ----------
   Total expenses                 4,021,000        3,957,000         4,040,000
                                 ----------       ----------        ----------
Net loss                   $       (799,000) $      (775,000)   $   (1,036,000)
                                 ==========       ==========        ==========
Net loss allocable
  to the Partnership       $       (787,000) $      (764,000)   $   (1,024,000)
                                 ==========       ==========        ==========
Net loss recorded
  by the Partnership       $       (728,000) $      (764,000)   $   (1,024,000)
                                 ==========       ==========        ==========

Certain Local Limited  Partnerships have incurred  significant  operating losses
and  have  working  capital  deficiencies.  In the  event  these  Local  Limited
Partnerships continue to incur significant operating losses,  additional capital
contributions  by the  Partnership  and/or  the Local  General  Partners  may be
required  to sustain  the  operations  of such Local  Limited  Partnerships.  If
additional  capital  contributions  are not made  when  they are  required,  the
Partnership's  investment in certain of such Local Limited Partnerships could be
impaired.

The financial statements of one Local Limited Partnership were prepared assuming
the limited partnership will continue as a going concern.  The Partnership had a
$699,602  remaining  investment in such Lower Tier  Partnership  at December 31,
1998.  The  Partnership's  original  investment  in the Lower  Tier  Partnership
approximated $1,691,585.  Through December 31, 1998, the limited partnership has
had recurring losses,  working capital  deficiencies and has not been billed for
certain  property tax expenses due since 1994. The Local Limited  Partnership is
seeking  abatement  or an  extended  payment  plan to pay down  certain of these
liabilities;   however,  if  the  Local  Limited  Partnership  is  unsuccessful,
additional funding may be requested from the Partnership. In the event the Local
Limited  Partnership  is required to  liquidate  or sell its  property,  the net
proceeds could be  significantly  less than the carrying value of such property.
As of December  31, 1998 and 1997,  the carrying  value of such  property on the
books  and  records  of  the  Lower  Tier  Partnership  totaled  $7,041,056  and
$7,232,514.  The auditors for this entity have expressed substantial doubt as to
this entity's ability to continue as a going concern as a result of the property
tax issue.

In September  1996, the original  general  partners of this limited  partnership
were removed. The Los Angeles County Housing Development  Corporation ("LACHDC")
was named as the sole general  partner.  In September  1997,  Community  Housing
Assistance Program,  Inc., a California nonprofit corporation replaced LACHDC as
the sole general partner.

                                       25
<PAGE>
                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 1
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

       For The Three Months Ended March 31, 1999 and 1998 (Unaudited) and
              For The Years Ended December 31, 1998, 1997 and 1996

NOTE 3 - RELATED PARTY TRANSACTIONS

Under the terms of the  Partnership  Agreement,  the Partnership is obligated to
the General Partner or its affiliates for the following items:

     Acquisition  fees  of up to 8% of the  gross  proceeds  from  the  sale  of
     Partnership  units as compensation for services rendered in connection with
     the  acquisition of Local Limited  Partnerships.  At the end of all periods
     presented,   the  Partnership   incurred   acquisition  fees  of  $800,000.
     Accumulated amortization of these capitalized costs was $130,634,  $123,968
     and  $97,300  as of  March  31,  1999  and  December  31,  1998  and  1997,
     respectively.

     Reimbursement  of costs incurred by the General  Partner in connection with
     the acquisition of Local Limited  Partnerships.  These  reimbursements have
     not exceeded 1.2% of the gross proceeds.  As of March 31, 1999 and December
     31, 1998 and 1997, the Partnership  incurred  acquisition costs of $54,949,
     $54,949 and $49,160, respectively,  which have been included in investments
     in  limited  partnerships.  Accumulated  amortization  amounted  to $7,030,
     $6,572  and $4,871 as of March 31,  1999 and  December  31,  1998 and 1997,
     respectively.

     An annual asset  management  fee equal to the greater  amount of (i) $2,000
     for each apartment  complex,  or (ii) 0.275% of gross  proceeds.  In either
     case,  the fee will be decreased or increased  annually based on changes to
     the Consumer  Price  Index.  However,  in no event will the maximum  amount
     exceed  0.2% of the  invested  assets  of the Local  Limited  Partnerships,
     including the  Partnership's  allocable share of the mortgages.  Management
     fees of $10,000 were incurred  during the three months ended March 31, 1999
     and $40,000, $40,000 and $40,000 were incurred for the years ended December
     31, 1998, 1997 and 1996, respectively, of which $33,690 was paid during the
     three  months  ended March 31, 1999 and $0,  $70,000 and $15,000  were paid
     during 1998, 1997 and 1996, respectively.

     A subordinated  disposition fee in an amount equal to 1% of the sales price
     of real estate  sold.  Payment of this fee is  subordinated  to the limited
     partners  receiving a preferred return of 16% through December 31, 2003 and
     6% thereafter (as defined in the Partnership Agreement) and is payable only
     if the  General  Partner or its  affiliates  render  services  in the sales
     effort.

     An affiliate of the General Partner provides management services for one of
     the properties in the limited partnerships.  Management fees were earned by
     the  affiliate in the amount of $8,625 for the three months ended March 31,
     1999 and $38,348  and $9,519  during  1998 and 1997,  respectively.  In May
     1999, the affiliate of the general  partner  refunded  $7,086 and $1,887 of
     the management fees related to 1998 and 1997,  respectively,  in accordance
     with the terms of the Partnership's prospectus.

The accrued fees and advances due to General  Partner and affiliates  consist of
the following:
<TABLE>
<CAPTION>
                                              March 31                   December 31
                                          ---------------   ------------------------------------
                                                     1999               1998                1997
                                                     ----               ----                ----
<S>                                      <C>                <C>                 <C>
Reimbursement for expenses paid by
  the General Partner or an affiliate    $          2,963   $          4,833    $          3,568

Asset management fee payable                       77,977            101,667              61,667
                                              -----------        -----------         -----------
Total                                    $         80,940   $        106,500    $         65,235
                                              ===========        ===========         ===========
</TABLE>
                                       26
<PAGE>
                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 1
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

       For The Three Months Ended March 31, 1999 and 1998 (Unaudited) and
              For The Years Ended December 31, 1998, 1997 and 1996

NOTE 4 - PAYABLES TO LIMITED PARTNERSHIPS

Payables  to limited  partnerships  represent  amounts  which are due at various
times based on conditions specified in the limited partnership agreement.  These
contributions  are  payable  in  installments  and  are  due  upon  the  limited
partnership  achieving certain operating and development  benchmarks  (generally
within two years of the Partnership's initial investment).

NOTE 5 - INCOME TAXES

No provision for income taxes has been  recorded in the financial  statements as
any  liability  for  income  taxes  is the  obligation  of the  partners  of the
Partnership.

















                                       27
<PAGE>
Item  9.  Changes  in and  Disagreements  With  Accountants  on  Accounting  and
Financial Disclosure

NOT APPLICABLE

PART III

Item 10. Directors and Executive Officers of the Registrant

The Partnership has no directors or executive officers of its own. The following
biographical  information is presented for the directors and executive  officers
of Associates which has principal responsibility for the Partnership's affairs.

Directors and Executive Officers of WNC & Associates, Inc.

The directors of WNC & Associates,  Inc. are Wilfred N. Cooper,  Sr., who serves
as Chairman of the Board,  John B.  Lester,  Jr.,  David N.  Shafer,  Wilfred N.
Cooper, Jr. and Kay L. Cooper.  The principal  shareholders of WNC & Associates,
Inc. are trusts established by Wilfred N. Cooper, Sr. and John B. Lester, Jr.

Wilfred N. Cooper,  Sr., age 68, is the founder,  Chief Executive  Officer and a
Director of WNC & Associates, Inc., a Director of WNC Capital Corporation, and a
general partner in some of the programs previously sponsored by the Sponsor. Mr.
Cooper has been involved in real estate  investment and  acquisition  activities
since 1968.  Previously,  during 1970 and 1971,  he was founder and principal of
Creative  Equity  Development  Corporation,  a predecessor  of WNC & Associates,
Inc., and of Creative Equity Corporation,  a real estate investment firm. For 12
years  prior  to  that,  Mr.  Cooper  was  employed  by  Rockwell  International
Corporation, last serving as its manager of housing and urban developments where
he  had  responsibility   for  factory-built   housing  evaluation  and  project
management in urban  planning and  development.  Mr. Cooper is a Director of the
National  Association of Home Builders (NAHB) and a National  Trustee for NAHB's
Political Action Committee,  a Director of the National Housing Conference (NHC)
and a  member  of NHC's  Executive  Committee  and a  Director  of the  National
Multi-Housing  Council (NMHC).  Mr. Cooper graduated from Pomona College in 1956
with a Bachelor of Arts degree.

John B. Lester, Jr., age 65, is President, a Director, Secretary and a member of
the  Acquisition  Committee  of WNC &  Associates,  Inc.,  and a Director of WNC
Capital  Corporation.  Mr. Lester has 27 years of experience in engineering  and
construction  and has been involved in real estate  investment  and  acquisition
activities since 1986 when he joined the Sponsor. Previously, he was Chairman of
the Board and Vice President or President of E & L Associates,  Inc., a provider
of engineering and construction  services to the oil refinery and  petrochemical
industries,  which  he  co-founded  in  1973.  Mr.  Lester  graduated  from  the
University of Southern  California in 1956 with a Bachelor of Science  degree in
Mechanical Engineering.

Wilfred N. Cooper,  Jr., age 36, is Executive Vice  President,  a Director and a
member of the  Acquisition  Committee of WNC & Associates,  Inc. He is President
of, and a registered principal with, WNC Capital  Corporation,  a member firm of
the NASD,  and is a Director of WNC  Management,  Inc.  He has been  involved in
investment  and  acquisition  activities  with  respect to real estate  since he
joined  the  Sponsor in 1988.  Prior to this,  he served as  Government  Affairs
Assistant with Honda North America in Washington, D.C. Mr. Cooper is a member of
the Advisory Board for LIHC Monthly Report,  a Director of NMHC and an Alternate
Director of NAHB.  He  graduated  from The  American  University  in 1985 with a
Bachelor of Arts degree.

David N. Shafer, age 47, is Senior Vice President, a Director,  General Counsel,
and a member of the  Acquisition  Committee  of WNC &  Associates,  Inc.,  and a
Director and Secretary of WNC  Management,  Inc. Mr. Shafer has been involved in
real estate  investment and acquisition  activities since 1984. Prior to joining
the Sponsor in 1990, he was  practicing  law with a specialty in real estate and
taxation.  Mr. Shafer is a Director and President of the  California  Council of
Affordable  Housing  and a member  of the State Bar of  California.  Mr.  Shafer
graduated  from the  University  of  California  at Santa Barbara in 1978 with a
Bachelor of Arts degree, from the New England School of Law in 1983 with a Juris
Doctor  degree (cum laude) and from the  University  of San Diego in 1986 with a
Master of Law degree in Taxation.

                                       28

<PAGE>
Michael L. Dickenson, age 42, is Vice President and Chief Financial Officer, and
a member of the  Acquisition  Committee  of WNC &  Associates,  Inc.,  and Chief
Financial Officer of WNC Management,  Inc. He has been involved with acquisition
and  investment  activities  with  respect to real estate  since 1985.  Prior to
joining the Sponsor in March 1999, he was the Director of Financial  Services at
TrizecHahn  Centers Inc., a developer  and operator of  commercial  real estate,
from 1995 to 1999,  a Senior  Manager  with E&Y  Kenneth  Leventhal  Real Estate
Group, Ernst & Young, LLP, from 1988 to 1995, and Vice President of Finance with
Great Southwest  Companies,  a commercial and residential real estate developer,
from  1985 to 1988.  Mr.  Dickenson  is a  member  of the  Financial  Accounting
Standards  Committee for the National  Association of Real Estate  Companies and
the  American  Institute  of  Certified  Public  Accountants,  and a Director of
HomeAid  Southern  California,  a charitable  organization  affiliated  with the
building  industry.  He  graduated  from  Texas Tech  University  in 1978 with a
Bachelor of Business  Administration  -  Accounting  degree,  and is a Certified
Public Accountant in California and Texas.

Thomas J. Riha, age 44, is Vice President - Asset Management and a member of the
Acquisition  Committee  of WNC &  Associates,  Inc.  and a  Director  and  Chief
Executive  Officer  of WNC  Management,  Inc.  Mr.  Riha  has been  involved  in
acquisition  and investment  activities  with respect to real estate since 1979.
Prior to joining the  Sponsor in 1994,  Mr.  Riha was  employed by Trust  Realty
Advisor, a real estate acquisition and management company,  last serving as Vice
President - Operations. Mr. Riha graduated from the California State University,
Fullerton  in 1977 with a  Bachelor  of Arts  degree  (cum  laude)  in  Business
Administration  with a  concentration  in Accounting  and is a Certified  Public
Accountant  and  a  member  of  the  American   Institute  of  Certified  Public
Accountants.

Sy P. Garban,  age 53, is Vice  President - National  Sales of WNC & Associates,
Inc.  and has been  employed by the  Sponsor  since  1989.  Mr.  Garban has been
involved in real estate  investment  activities since 1978. Prior to joining the
Sponsor he served as  Executive  Vice  President  of MRW,  Inc.,  a real  estate
development  and management  firm.  Mr. Garban is a member of the  International
Association of Financial  Planners.  He graduated from Michigan State University
in 1967 with a Bachelor of Science degree in Business Administration.

N. Paul Buckland,  age 36, is Vice President - Acquisitions of WNC & Associates,
Inc. He has been involved in real estate acquisitions and investments since 1986
and has been employed with WNC & Associates,  Inc. since 1994. Prior to that, he
served on the  development  team of the Bixby Ranch that  constructed  apartment
units and Class A office space in California and  neighboring  states,  and as a
land  acquisition  coordinator with Lincoln Property Company where he identified
and analyzed multi-family  developments.  Mr. Buckland graduated from California
State  University,  Fullerton  in 1992  with a  Bachelor  of  Science  degree in
Business Finance.

David Turek, age 44, is Vice President - Originations of WNC & Associates,  Inc.
He has been involved with real estate  investment and finance  activities  since
1976 and has been employed by WNC & Associates,  Inc.  since 1996.  From 1995 to
1996,  Mr. Turek served as a consultant  for a national Tax Credit sponsor where
he was responsible for on-site feasibility studies and due diligence analyses of
Tax Credit properties.  From 1990 to 1995, he was involved in the development of
conventional  and tax credit  multi-family  housing.  He is a Director  with the
Texas Council for Affordable Rural Housing and graduated from Southern Methodist
University in 1976 with a Bachelor of Business Administration degree.

Kay L. Cooper,  age 62, is a Director of WNC & Associates,  Inc. Mrs. Cooper was
the founder and sole  proprietor  of Agate 108, a  manufacturer  and retailer of
home  accessory  products,  from 1975 until 1998.  She is the wife of Wilfred N.
Cooper,  Sr.,  the mother of Wilfred  N.  Cooper,  Jr. and the sister of John B.
Lester,  Jr. Ms. Cooper graduated from the University of Southern  California in
1958 with a Bachelor of Science degree.

Item 11.  Executive Compensation:

The Partnership has no officers,  employees,  or directors.  However,  under the
terms of the  Partnership  Agreement the  Partnership  is obligated to TCP IV or
Associates during the current or future years for the following fees:

(a)  Annual Asset  Management Fee. An annual asset management fee the greater of
     (i)  $2,000  per  multi-family  housing  complex,  or (ii)  0.275% of Gross
     Proceeds. The base fee amount will be adjusted annually based on the change
     in the  Consumer  Price Index.  However,  in no event will the annual asset
     management fee exceed 0.2% of Invested Assets.  "Invested Assets" means the
     sum of the Partnership's  investment in Local Limited  Partnerships and the
     Partnership's  allocable share of the amount of the indebtedness related to
     the Housing Complexes. Fees of $10,000 and $40,000 were incurred during the
     three  months  ended March 31, 1999 and the year ended  December  31, 1998,
     respectively.  The  Partnership  paid the General Partner or its affiliates
     $33,690 and $0 of those fees during the three  months  ended March 31, 1999
     and the year ended December 31, 1998, respectively.

                                       29

<PAGE>
(b)  Subordinated  Disposition Fee. A subordinated  disposition fee in an amount
     equal to 1% of the  sale  price  received  in  connection  with the sale or
     disposition of a Housing  Complex.  Subordinated  disposition  fees will be
     subordinated  to  the  prior  return  of  the  Limited   Partners'  capital
     contributions  and  payment  of the  return on  investment  to the  Limited
     Partners.  "Return  on  Investment"  means an  annual,  cumulative  but not
     compounded,  "return" to the Limited Partners (including Low Income Housing
     Credits) as a class, on their adjusted capital contributions commencing for
     each Limited  Partner on the last day of the calendar  quarter during which
     the Limited Partner's capital  contribution is received by the Partnership,
     calculated at the following  rates:  (i) 16% through December 31, 2003, and
     (ii) 6% for the balance of the Partnership's term. No disposition fees have
     been paid.

(c)  Operating Expenses.  The Partnership  reimbursed the General Partner or its
     affiliates  for  operating  expenses  of  approximately  $21,000 and $1,000
     during the three  months  ended March 31, 1999 and the year ended  December
     31, 1998, respectively.

(d)  Interest  in  Partnership.   The  General   Partner   receives  1%  of  the
     Partnership's  allocated Low Income  Housing  Credits,  which  approximated
     $14,000 for the General  Partner for the year ended  December 31, 1998. The
     General Partner is also entitled to receive 1% of cash distributions. There
     were no  distributions  of cash to the  General  Partner  during  the three
     months ended March 31, 1999 or the year ended December 31, 1998.

Item 12.  Security Ownership of Certain Beneficial Owners and Management

(a)  Security Ownership of Certain Beneficial Owners

     No person is known to the General Partner to own  beneficially in excess of
     5% of the outstanding units.

(b)  Security Ownership of Management

     Neither the General  Partner,  its  affiliates,  nor any of the officers or
     directors  of  the  General  Partner  or its  affiliates  own  directly  or
     beneficially any Units in the Partnership.

(c)  Changes in Control

     The  management  and control of the  General  Partner may be changed at any
     time in accordance with their respective organizational documents,  without
     the  consent  or  approval  of  the  Limited  Partners.  In  addition,  the
     Partnership  Agreement provides for the admission of one or more additional
     and successor General Partners in certain circumstances.

     First,   with  the   consent   of  any  other   General   Partners   and  a
     majority-in-interest  of the  Limited  Partners,  any  General  Partner may
     designate  one or  more  persons  to be  successor  or  additional  General
     Partners. In addition,  any General Partner may, without the consent of any
     other General Partner or the Limited Partners,  (i) substitute in its stead
     as General  Partner  any  entity  which has,  by merger,  consolidation  or
     otherwise,  acquired  substantially  all  of its  assets,  stock  or  other
     evidence of equity interest and continued its business, or (ii) cause to be
     admitted to the Partnership an additional General Partner or Partners if it
     deems such  admission to be necessary or desirable so that the  Partnership
     will be classified a partnership for Federal income tax purposes.  Finally,
     a  majority-in-interest  of the Limited Partners may at any time remove the
     General Partner of the Partnership and elect a successor General Partner.

Item 13.  Certain Relationships and Related Transactions

The General Partner manages all of the Partnership's  affairs.  The transactions
with  the  General  Partner  are  primarily  in the  form  of  fees  paid by the
Partnership for services  rendered to the Partnership and the General  Partner's
interests  in the  Partnership,  as discussed in Item 11 and in the notes to the
Partnership's financial statements.

                                       30

<PAGE>
PART IV.

Item 14.  Exhibits, Financial Statement Schedules, and Reports on Form 8-K

Financial Statements

(a)(1)   Financial statements included in Part II hereof:

         Report of Independent Certified Public Accountants
         Independent Auditors' Report
         Balance Sheets, March 31, 1999  and  1998 (Unaudited) and  December 31,
           1998 and 1997
         Statements of Operations  for the three months ended March 31, 1999 and
           1998 (Unaudited) and the years ended December 31, 1998, 1997 and 1996
         Statements  of Partners'  Equity  (Deficit)  for the three months ended
           March 31, 1999 and for the years  ended December 31, 1998,  1997  and
           1996
         Statements  of Cash Flows for the three months ended March 31, 1999 and
           1998 (Unaudited) and for the years ended December 31, 1998,  1997 and
           1996
         Notes to Financial Statements

(a)(2)   Financial statement schedule included in Part IV hereof:

         Report of Independent Certified Public Accountants on  Financial State-
           ment Schedules
         Schedule III - Real Estate Owned by Local Limited Partnerships

(b)      Reports on Form 8-K.

1.       A Form 8-K dated May 13, 1999 was filed on May 14, 1999  reporting  the
         Partnership's  change  in fiscal  year end  to March  31. No  financial
         statements were included.

(c)      Exhibits.

3.1      Articles  of  incorporation   and  by-laws:   The  registrant  is   not
         incorporated.  The  Partnership  Agreement is included as Exhibit B  to
         the  Prospectus,  filed as Exhibit  28.1 to Form 10-K  for fiscal  year
         ended December 31, 1995.

10.1     Second  Amended  and  Restated  Agreement  of  Limited  Partnership  of
         Beckwood Manor Seven Limited Partnership filed  as exhibit 10.1 to Form
         8-K dated December 8, 1993 is hereby  incorporated  herein by reference
         as exhibit 10.1.

10.2     Amended and Restated Agreement of Limited  Partnership  of Alpine Manor
         filed as exhibit 10.3 to Post-Effective  Amendment No 1 dated  February
         16, 1994 is hereby incorporated herein by reference as exhibit 10.2.

10.3     Second  Amended  and  Restated  Agreement  of  Limited  Partnership  of
         Briscoe  Manor,   Limited   Partnership   filed  as  exhibit  10.4   to
         Post-Effective  Amendment  No 1  dated  February  16,  1994  is  hereby
         incorporated herein by reference as exhibit 10.3.

10.4     Amended and Restated Agreement and Certificate of  Limited  Partnership
         of  Evergreen  Four,  Limited  Partnership  filed as  exhibit  10.5  to
         Post-Effective  Amendment  No 1  dated  February  16,  1994  is  hereby
         incorporated herein by reference as exhibit 10.4.

10.5     Amended and Restated Agreement and  Certificate of Limited  Partnership
         of  Fawn  Haven,   Limited   Partnership   filed  as  exhibit  10.6  to
         Post-Effective  Amendment  No 1 dated  February  16,  1994   is  hereby
         incorporated herein by reference as exhibit 10.5.

10.6     Amended  and  Restated  Agreement  of  Limited   Partnership  of   Fort
         Stockton, L. P. filed as exhibit 10.7 to Post-Effective Amendment No  1
         dated February 16, 1994 is hereby  incorporated herein by reference  as
         exhibit 10.6.

                                       31
<PAGE>
10.7     Amended and Restated Agreement and Certificate of  Limited  Partnership
         of Madison Manor Senior Citizens  Complex,  Ltd. filed as  exhibit 10.8
         to  Post-Effective  Amendment  No 1 dated  February 16, 1994 is  hereby
         incorporated herein by reference as exhibit 10.7.

10.8     Amended and Restated Agreement and Certificate of  Limited  Partnership
         of Mt. Graham  Housing,  Ltd. filed as exhibit 10.9  to  Post-Effective
         Amendment No 1 dated February 16, 1994  is hereby  incorporated  herein
         by reference as exhibit 10.8.

10.9     Amended and Restated Agreement and Certificate of  Limited  Partnership
         of  Northside  Plaza   Apartments,  Ltd.  filed  as  exhibit  10.10  to
         Post-Effective  Amendment  No 1 dated  February  16,  1994  is   hereby
         incorporated herein by reference as exhibit 10.9.

10.10    Amended and Restated Agreement of Limited  Partnership of Pampa  Manor,
         L.P.  filed as exhibit  10.11 to  Post-Effective  Amendment No 1  dated
         February  16,  1994 is  hereby  incorporated  herein  by  reference  as
         exhibit 10.10.

10.11    Amended  and  Restated  Agreement  of  Limited  Partnership  of  Vernon
         Manor,  L.P. filed as exhibit 10.12 to  Post-Effective  Amendment  No 1
         dated February 16, 1994 is hereby  incorporated herein by reference  as
         exhibit 10.11.

10.12    Amended and  Restated  Agreement of Limited  Partnership  of  Waterford
         Place, A Limited  Partnership filed as exhibit 10.13 to  Post-Effective
         Amendment No 1 dated February 16, 1994 is  hereby  incorporated  herein
         by reference as exhibit 10.12.

10.13    Amended  and  Restated  Agreement  of  Limited  Partnership  of  Yantis
         Housing,  Ltd filed as exhibit 10.13 to Post-Effective  Amendment  No 1
         dated February 16, 1994 is hereby  incorporated herein by reference  as
         exhibit 10.13.

10.14    Third  Amended  and  Restated  Agreement  of  Limited  Partnership  and
         Certificate of Limited Partnership of Indian Creek  Limited Partnership
         filed as exhibit  10.16 to  Post-Effective  Amendment  No 2 dated March
         11, 1994 is hereby incorporated herein by reference as exhibit 10.14.

10.15    Agreement of Limited  Partnership of Laurel Creek  Apartments filed  as
         exhibit  10.1 to Form 8-K  dated May 25,  1994 is  hereby  incorporated
         herein by reference as exhibit 10.15.

10.16    Second  Amended  and  Restated  Agreement  of  Limited  Partnership  of
         Sandpiper Square, A Limited  Partnership filed as exhibit 10.2 to  Form
         8-K dated May 25, 1994 is hereby  incorporated  herein by reference  as
         exhibit 10.16.

10.17    Amended  and  Restated  Agreement  of Limited  Partnership  of  Regency
         Court  Partners  filed as exhibit 10.1 to Form 8-K dated  June 30, 1994
         is hereby incorporated herein by reference as exhibit 10.17.

10.18    Disposition  and  Development  Agreement  By and Between The  Community
         Development  Commission  of the County of Los Angeles and Regency Court
         Partners  (including  forum of Ground  Lease)  filed as exhibit 10.2 to
         Form 8-K dated June 30, 1994 is hereby incorporated herein by reference
         as exhibit 10.18.

10.19    Amended and  Restated  Agreement  of Limited  Partnership  of Bay  City
         Village  Apartments,  Limited  Partnership  filed as exhibit  10.19  to
         Post-Effective   Amendment   No  4  dated  July  14,  1994  is   hereby
         incorporated herein by reference as exhibit 10.19.

10.20    Second  Amended  and  Restated  Agreement  of  Limited  Partnership  of
         Hidden  Valley   Limited   Partnership   filed  as   exhibit  10.20  to
         Post-Effective   Amendment   No  4  dated   July  14,  1994  is  hereby
         incorporated herein by reference as exhibit 10.20.

10.21    Amended and Restated  Agreement of Limited  Partnership of HOI  Limited
         Partnership of Lenoir and Amendments thereto filed as exhibit 10.21  to
         Post-Effective   Amendment   No  4  dated  July  14,  1994  is   hereby
         incorporated herein by reference as exhibit 10.21.

(d)      Financial  statement  schedules  follow,  as set  forth  in  subsection
         (a)(2) hereof.

                                       32
<PAGE>


               Report of Independent Certified Public Accounts on
                          Financial Statement Schedules




To the Partners
WNC Housing Tax Credit Fund IV, L.P. Series 1


The audits  referred to in our report dated July 30, 1999,  relating to the 1999
and 1998 financial  statements of WNC Housing Tax Credit Fund IV, L.P.  Series 1
(the  "Partnership"),  which is contained in Item 8 of this Form 10-K,  included
the audit of the  accompanying  financial  statement  schedules.  The  financial
statement schedules are the responsibility of the Partnership's management.  Our
responsibility is to express an opinion on these financial  statement  schedules
based upon our audits.

In our opinion,  such financial  statement  schedules  presents  fairly,  in all
material respects, the financial information set forth therein.


                                             /s/BDO SEIDMAN, LLP
                                             BDO SEIDMAN, LLP

Orange County, California
July 30, 1999



















                                       33

<PAGE>

WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 1999
<TABLE>
<CAPTION>

                                              --------------------------------- ----------------------------------------------------
                                                   As of March 31, 1999                      As of December 31, 1998
                                              --------------------------------- ----------------------------------------------------
                                              Partnership's Total   Amount of    Encumbrances of                             Net
                                              Investment in Local   Investment   Local Limited  Property and  Accumulated    Book
Partnership Name                    Location  Limited Partnerships  Paid to Date Partnerships   Equipment     Depreciation   Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                                              <C>             <C>            <C>         <C>            <C>         <C>
Alpine Manor, L.P.                  Alpine,
                                    Texas        $  195,000      $  195,000     $   920,000  $  1,167,000   $  134,000  $  1,033,000

Baycity Village Apartments,         Baytown,
Limited Partnership                 Texas           301,000         301,000       1,489,000     1,829,000      353,000     1,476,000

Beckwood Manor Seven Limited        Marianna,
Partnership                         Arkansas        307,000         307,000       1,395,000     1,789,000      327,000     1,462,000

Briscoe Manor Limited Partnership   Galena,
                                    Maryland        308,000         308,000       1,521,000     1,813,000      305,000     1,508,000

Evergreen Four Limited Partnership  Maynard,
                                    Arkansas        195,000         195,000         873,000     1,128,000      199,000       929,000

Fawn Haven Limited Partnership      Manchester,
                                    Ohio            167,000         167,000         862,000     1,070,000      218,000       852,000

Fort Stockton Manor, L.P.           Ft.
                                    Stockton,
                                    Texas           224,000         224,000       1,059,000     1,249,000      126,000     1,123,000

Hidden Valley Limited Partnership   Gallup, New
                                    Mexico          412,000         412,000       1,491,000    1,938,000      218,000     1,720,000

HOI Limited Partnership Of Lenoir   Lenoir,
                                    North
                                    Carolina        198,000         198,000         572,000     1,167,000      184,000       983,000

Indian Creek Limited Partnership    Bucyrus,
                                    Ohio            306,000         306,000       1,542,000     1,775,000      285,000     1,490,000

Laurel Creek Apartments             San Luis
                                    Obispo,
                                    California    1,030,000       1,030,000         681,000     2,166,000      322,000     1,844,000
</TABLE>

                                       34

<PAGE>

WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 1999
<TABLE>
<CAPTION>

                                              ---------------------------------- ---------------------------------------------------
                                                     As of March 31, 1999                      As of December 31, 1998
                                              ---------------------------------- ---------------------------------------------------
                                              Partnership's Total  Amount of     Encumbrances of                             Net
                                              Investment in Local  Investment    Local Limited  Property and  Accumulated    Book
 Partnership Name                   Location  Limited Partnerships Paid to Date  Partnerships   Equipment     Depreciation   Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                                             <C>             <C>          <C>            <C>             <C>         <C>
Madisonville Manor Senior Citizens  Madisonville,
Complex, Ltd.                       Texas       $   174,000     $   174,000     $   905,000   $  1,150,000   $   72,000  $ 1,078,000

Mt. Graham Housing, Ltd.            Safford,
                                    Arizona         410,000         410,000       1,416,000      1,873,000      311,000    1,562,000

Northside Plaza Apartments, Ltd.    Angleton,
                                    Texas           282,000         282,000       1,369,000      1,724,000      135,000    1,589,000

Pampa Manor, L.P.                   Pampa,
                                    Texas           180,000         180,000         849,000      1,029,000      110,000      919,000

Regency Court Partners              Monrovia,
                                    California    1,692,000       1,690,000       5,283,000      7,658,000      617,000    7,041,000

Sandpiper Square, a Limited         Aulander,
Partnership                         North
                                    Carolina        219,000         219,000         953,000      1,191,000      134,000    1,057,000

Seneca Falls East Apartments        Seneca
Company II, L.P.                    Falls, New      276,000         253,000         896,000      1,213,000       21,000    1,192,000
                                    York

Vernon Manor, L.P.                  Vernon,
                                    Texas           161,000         161,000         786,000        904,000       96,000      808,000

Waterford Place, a Limited          Calhoun
Partnership                         Falls, South
                                    Carolina        272,000         272,000       1,189,000      1,518,000      277,000    1,241,000

Yantis Housing, Ltd.                Yantis,
                                    Texas           145,000         145,000         633,000        837,000      101,000      736,000
                                                  ---------       ---------      ----------     ----------    ---------   ----------
                                                $ 7,454,000     $ 7,429,000    $ 26,684,000  $  36,188,000 $  4,545,000 $ 31,643,000
                                                  =========       =========      ==========     ==========    =========   ==========
</TABLE>
                                       35

<PAGE>

WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 1999
<TABLE>
<CAPTION>
                                --------------------------------------------------------------------------------------
                                                      For the year ended December 31, 1998
                                --------------------------------------------------------------------------------------
                                                                    Year Investment                 Estimated Useful
Partnership Name                   Rental Income       Net Loss        Acquired         Status        Life (Years)
----------------------------------------------------------------------------------------------------------------------

<S>                                 <C>            <C>                  <C>            <C>             <C>
Alpine Manor, L.P.                  $    104,000   $    (19,000)        1994           Completed         40

Baycity Village Apartments,
Limited Partnership                      260,000        (48,000)        1994           Completed         30

Beckwood Manor Seven Limited
Partnership                              142,000        (49,000)        1993           Completed       27.5

Briscoe Manor Limited
Partnership                              156,000        (57,000)        1994           Completed       27.5

Evergreen Four Limited
Partnership                               68,000        (39,000)        1994           Completed       27.5

Fawn Haven Limited
Partnership                               78,000        (26,000)        1994           Completed       27.5

Fort Stockton Manor, L.P.                109,000        (21,000)        1994           Completed         40

Hidden Valley Limited
Partnership                              149,000        (32,000)        1994           Completed         40

HOI Limited Partnership Of
Lenoir                                   119,000        (45,000)        1993           Completed         40

Indian Creek Limited
Partnership                              136,000        (48,000)        1994           Completed       27.5

Laurel Creek Apartments                  164,000        (22,000)        1994           Completed       27.5

Madisonville Manor Senior
Citizens Complex, Ltd.                   105,000         (4,000)        1994           Completed         50

Mt. Graham Housing, Ltd.                 147,000        (59,000)        1994           Completed       27.5

Northside Plaza Apartments,
Ltd.                                     142,000        (12,000)        1994           Completed         50

</TABLE>
                                       36
<PAGE>

WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 1999
<TABLE>
<CAPTION>
                                --------------------------------------------------------------------------------------
                                                      For the year ended December 31, 1998
                                --------------------------------------------------------------------------------------
                                                                    Year Investment                 Estimated Useful
Partnership Name                   Rental Income       Net Loss        Acquired         Status        Life (Years)
----------------------------------------------------------------------------------------------------------------------
<S>                                 <C>            <C>                  <C>            <C>             <C>
Pampa Manor, L.P.                        104,000        (15,000)        1994           Completed         40

Regency Court Partners                   646,000       (224,000)        1994           Completed         40

Sandpiper Square, a Limited
Partnership                               92,000        (21,000)        1994           Completed         35

Seneca Falls East Apartments
Company II, L.P.                         124,000          9,000         1998           Completed         40

Vernon Manor, L.P.                        84,000        (31,000)        1994           Completed         40

Waterford Place, a Limited
Partnership                              120,000        (25,000)        1994           Completed         40

Yantis Housing, Ltd.                      73,000        (11,000)        1994           Completed         40
                                      ----------     ----------
                                    $  3,122,000   $   (799,000)
                                      ==========     ==========
</TABLE>
                                       37



<PAGE>
WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
December 31, 1998
<TABLE>
<CAPTION>

                                              --------------------------------------------------------------------------------------
                                                                               As of December 31, 1998
                                              --------------------------------------------------------------------------------------
                                              Partnership's Total   Amount of    Encumbrances of                             Net
                                              Investment in Local   Investment   Local Limited  Property and  Accumulated    Book
Partnership Name                    Location  Limited Partnerships  Paid to Date Partnerships   Equipment     Depreciation   Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                                              <C>             <C>         <C>            <C>            <C>         <C>
Alpine Manor, L.P.                  Alpine,
                                    Texas        $  195,000      $  195,000     $   920,000  $  1,167,000   $  134,000  $  1,033,000

Baycity Village Apartments,         Baytown,
Limited Partnership                 Texas           301,000         301,000       1,489,000     1,829,000      353,000     1,476,000

Beckwood Manor Seven Limited        Marianna,
Partnership                         Arkansas        307,000         307,000       1,395,000     1,789,000      327,000     1,462,000

Briscoe Manor Limited Partnership   Galena,
                                    Maryland        308,000         308,000       1,521,000     1,813,000      305,000     1,508,000

Evergreen Four Limited Partnership  Maynard,
                                    Arkansas        195,000         195,000         873,000     1,128,000      199,000       929,000

Fawn Haven Limited Partnership      Manchester,
                                    Ohio            167,000         167,000         862,000     1,070,000      218,000       852,000

Fort Stockton Manor, L.P.           Ft.
                                    Stockton,
                                    Texas           224,000         224,000       1,059,000     1,249,000      126,000     1,123,000

Hidden Valley Limited Partnership   Gallup, New
                                    Mexico          412,000         412,000       1,491,000    1,938,000      218,000     1,720,000

HOI Limited Partnership Of Lenoir   Lenoir,
                                    North
                                    Carolina        198,000         198,000         572,000     1,167,000      184,000       983,000

Indian Creek Limited Partnership    Bucyrus,
                                    Ohio            306,000         306,000       1,542,000     1,775,000      285,000     1,490,000

Laurel Creek Apartments             San Luis
                                    Obispo,
                                    California    1,030,000       1,030,000         681,000     2,166,000      322,000     1,844,000
</TABLE>

                                       38

<PAGE>

WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
December 31, 1999
<TABLE>
<CAPTION>

                                              --------------------------------------------------------------------------------------
                                                                                   As of December 31, 1998
                                              --------------------------------------------------------------------------------------
                                              Partnership's Total  Amount of     Encumbrances of                             Net
                                              Investment in Local  Investment    Local Limited  Property and  Accumulated    Book
Partnership Name                    Location  Limited Partnerships Paid to Date  Partnerships   Equipment     Depreciation   Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                                             <C>             <C>          <C>            <C>             <C>         <C>
Madisonville Manor Senior Citizens  Madisonville,
Complex, Ltd.                       Texas       $   174,000     $   174,000     $   905,000   $  1,150,000   $   72,000  $ 1,078,000

Mt. Graham Housing, Ltd.            Safford,
                                    Arizona         410,000         410,000       1,416,000      1,873,000      311,000    1,562,000

Northside Plaza Apartments, Ltd.    Angleton,
                                    Texas           282,000         282,000       1,369,000      1,724,000      135,000    1,589,000

Pampa Manor, L.P.                   Pampa,
                                    Texas           180,000         180,000         849,000      1,029,000      110,000      919,000

Regency Court Partners              Monrovia,
                                    California    1,692,000       1,690,000       5,283,000      7,658,000      617,000    7,041,000

Sandpiper Square, a Limited         Aulander,
Partnership                         North
                                    Carolina        219,000         219,000         953,000      1,191,000      134,000    1,057,000

Seneca Falls East Apartments        Seneca
Company II, L.P.                    Falls, New      276,000         253,000         896,000      1,213,000       21,000    1,192,000
                                    York

Vernon Manor, L.P.                  Vernon,
                                    Texas           161,000         161,000         786,000        904,000       96,000      808,000

Waterford Place, a Limited          Calhoun
Partnership                         Falls, South
                                    Carolina        272,000         272,000       1,189,000      1,518,000      277,000    1,241,000

Yantis Housing, Ltd.                Yantis,
                                    Texas           145,000         145,000         633,000        837,000      101,000      736,000
                                                  ---------       ---------      ----------     ----------    ---------   ----------
                                                $ 7,454,000     $ 7,429,000    $ 26,684,000  $  36,188,000 $  4,545,000 $ 31,643,000
                                                  =========       =========      ==========     ==========    =========   ==========
</TABLE>
                                       39
<PAGE>

WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
December 3l, 1998
<TABLE>

                                   ---------------------------------------------------------------------------------
                                                      For the year ended December 31, 1998
                                   ---------------------------------------------------------------------------------
                                                                     Year Investment                 Estimated Useful
Partnership Name                    Rental Income       Net Loss          Acquired       Status        Life (Years)
--------------------------------------------------------------------------------------------------------------------
<S>                                      <C>            <C>             <C>                              <C>
Alpine Manor, L.P.                   $   104,000    $   (19,000)        1994           Completed         40

Baycity Village Apartments,
Limited Partnership                      260,000        (48,000)        1994           Completed         30

Beckwood Manor Seven Limited
Partnership                              142,000        (49,000)        1993           Completed       27.5

Briscoe Manor Limited
Partnership                              156,000        (57,000)        1994           Completed       27.5

Evergreen Four Limited
Partnership                               68,000        (39,000)        1994           Completed       27.5

Fawn Haven Limited
Partnership                               78,000        (26,000)        1994           Completed       27.5

Fort Stockton Manor, L.P.                109,000        (21,000)        1994           Completed         40

Hidden Valley Limited
Partnership                              149,000        (32,000)        1994           Completed         40

HOI Limited Partnership Of
Lenoir                                   119,000        (45,000)        1993           Completed         40

Indian Creek Limited
Partnership                              136,000        (48,000)        1994           Completed       27.5

Laurel Creek Apartments                  164,000        (22,000)        1994           Completed       27.5

Madisonville Manor Senior
Citizens Complex, Ltd.                   105,000         (4,000)        1994           Completed         50

Mt. Graham Housing, Ltd.                 147,000        (59,000)        1994           Completed       27.5

Northside Plaza Apartments,
Ltd.                                     142,000        (12,000)        1994           Completed         50

</TABLE>
                                       40
<PAGE>


WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
December 3l, 1998
<TABLE>

                                   ---------------------------------------------------------------------------------
                                                      For the year ended December 31, 1998
                                   ---------------------------------------------------------------------------------
                                                                     Year Investment                 Estimated Useful
Partnership Name                    Rental Income       Net Loss          Acquired       Status        Life (Years)
--------------------------------------------------------------------------------------------------------------------
<S>                                      <C>            <C>             <C>                              <C>
Pampa Manor, L.P.                        104,000        (15,000)        1994           Completed         40

Regency Court Partners                   646,000       (224,000)        1994           Completed         40

Sandpiper Square, a Limited
Partnership                               92,000        (21,000)        1994           Completed         35

Seneca Falls East Apartments             124,000          9,000         1998           Completed         40
Company II, L.P.

Vernon Manor, L.P.                        84,000        (31,000)        1994           Completed         40

Waterford Place, a Limited
Partnership                              120,000        (25,000)        1994           Completed         40

Yantis Housing, Ltd.                      73,000        (11,000)        1994           Completed         40
                                       ---------       --------
                                    $  3,122,000    $  (799,000)
                                       =========       ========
</TABLE>
                                       41




<PAGE>


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.


WNC HOUSING TAX CREDIT FUND IV, L.P., Series 1 (Registrant))


By:  WNC Tax Credit Partners IV, L.P.,  General Partner

By:  WNC & Associates, Inc., General Partner



By:  /s/ John B. Lester, Jr.
John B. Lester, Jr.,
President of WNC & Associates, Inc.

Date: August 5, 1999


By:  /s/ Michael L. Dickenson
Michael L. Dickenson,
Vice-President - Chief Financial Officer of WNC & Associates, Inc.

Date: August 5, 1999


By:  /s/ Wilfred N. Cooper, Sr.
Wilfred N. Cooper, Sr., General Partner

Date: August 5, 1999

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following  persons on behalf of the  registrant and
in the capacities and on the dates indicated.


By  /s/ Wilfred N. Cooper, Sr.
Wilfred N. Cooper, Sr., Chairman of the Board of WNC & Associates, Inc.

Date: August 5, 1999



By: /s/ John B. Lester, Jr.
John B. Lester, Jr., Director of WNC & Associates, Inc.

Date: August 5, 1999


By:  /s/ David N. Shafer
David N Shafer, Director of WNC & Associates, Inc.

Date: August 5, 1999







                                       42