FORM 10-K

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   (Mark One)

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

                    For the fiscal year ended March 31, 2002

                                       OR


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

             For the transition period from __________ to __________

                         Commission file number: 0-28370


                  WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 2


California                                                           33-0596399
(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. <060>o<048><057><057><062>

                                       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 2 (the  "Partnership")  is a
California Limited  Partnership formed under the laws of the State of California
on September 27, 1993. The Partnership was formed to acquire limited partnership
interests in other limited  partnerships or limited liability  companies ("Local
Limited Partnerships") which own multifamily housing complexes that are eligible
for low-income housing federal and, in some cases, California income tax credits
(the "Low Income Housing Credit").

The general  partner of the Partnership is WNC Tax Credit Partners IV, L.P. (the
"General  Partner").  The  general  partner  of  the  General  Partner  is WNC &
Associates,  Inc.  ("Associates").  The chairman and president own substantially
all of the outstanding  stock of Associates.  The business of the Partnership is
conducted  primarily  through the general  partner,  as the  Partnership  has no
employees of its own.

Pursuant to a  registration  statement  filed with the  Securities  and Exchange
Commission on October 20, 1993, in July 1994 the Partnership  commenced a public
offering of 20,000 Units of Limited Partnership Interests ("Units"),  at a price
of $1,000 per Unit. As of the close of the public offering in July 1995, a total
of 15,600 Units representing approximately $15,241,000 had been sold. Holders of
Limited Partnership Interests are referred to herein as "Limited Partners."

Sempra Energy Financial, a California corporation,  which is not an affiliate of
the Partnership or General Partner,  has purchased 4,000 Units, which represents
25.6% of the Units  outstanding  for the  Partnership.  Sempra Energy  Financial
invested  $3,641,000.  A  discount  of  $359,000  was  allowed  due to a  volume
discount. See Item 12(a) in this 10-K.

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  to  the  Prospectus   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.

As of March 31, 2002, the Partnership  had invested in twenty-two  Local Limited
Partnerships.  Each of these Local Limited  Partnerships  owns a Housing Complex
that is eligible for the federal Low Income Housing Credit. Certain

                                       3
<PAGE>

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


                                       4
<PAGE>

<TABLE>
<CAPTION>

                                                         -------------------------   -----------------------------------------------
                                                            As of March 31, 2002               As of December 31, 2001
                                                         -------------------------   -----------------------------------------------
                                                           Partnership's                                    Estimated   Encumbrances
                                                          Total Investment   Amount of                      Low Income      of Local
                                   General Partner         In Local Limited  Investment  Number              Housing        Limited
 Partnership Name      Location        Name                Partnerships    Paid to Date  Of Units Occupancy  Credits    Partnerships
------------------------------------------------------------------------------------------------------------------------------------
<S>                     <C>           <C>                 <C>           <C>                 <C>     <C>   <C>            <C>
Apartment Housing of    East          Apartment Developers
East Brewton,           Brewton,      Inc. and Thomas H.
Ltd.                    Alabama       Cooksey             $   1,192,000 $  1,192,000        40       97%  $  1,863,000   $ 1,139,000

Autumn Trace            Silsbee,      Olsen Securities
Associates, Ltd.        Texas         Corp.                     412,000      412,000        58       91%       714,000     1,243,000

Broken Bow                            Retro
Apartments I, Limited   Broken Bow,   Development,
Partnership             Nebraska      Inc.                      608,000      608,000        16      100%     1,127,000       586,000

Candleridge
Apartments              Waukee,       Eric A.
of Waukee L.P. II       Iowa          Sheldahl                  125,000      125,000        23      100%       230,000       676,000


                                      Boyd Management, Inc.
Chadwick                              Gordon L. Blackwell
Limited                 Edan, North   and Regency
Partnership             Carolina      Investment Associates     378,000      378,000        48      100%       735,000     1,540,000

Comanche
Retirement              Comanche,     Max L.
Village, Ltd.           Texas         Rightmer                  136,000      136,000        22      100%       265,000       589,000

Crossings II Limited
Dividend Housing
Association Limited     Portage,      Raymond T.
Partnership             Michigan      Cato, Jr.                 432,000      432,000       114       96%       739,000     5,812,000

                                      Philip Wallis, James
EW, a Wisconsin                       Poehlman, Cynthia
Limited                Evansville,    Solfest Wallis, and
Partnership            Wisconsin      Anita Poehlman            164,000      164,000        16       88%       306,000       613,000
</TABLE>

                                       5
<PAGE>
<TABLE>
<CAPTION>


                                                         -------------------------   -----------------------------------------------
                                                            As of March 31, 2002               As of December 31, 2001
                                                         -------------------------   -----------------------------------------------
                                                           Partnership's                                    Estimated   Encumbrances
                                                          Total Investment   Amount of                      Low Income      of Local
                                   General Partner         In Local Limited  Investment  Number              Housing        Limited
 Partnership Name      Location        Name                Partnerships    Paid to Date  Of Units Occupancy  Credits    Partnerships
------------------------------------------------------------------------------------------------------------------------------------
<S>                     <C>           <C>                       <C>          <C>            <C>     <C>        <C>         <C>
                                      Conrad L. Beggs,
Garland Street                        Audrey D. Beggs,
Limited                 Malvarn,      Russell J. Altizer,
Partnership             Arkansas      and Marjorie L. Beggs     164,000      164,000        18      100%       319,000       690,000

Hereford Seniors        Hereford,     Winston
Community, Ltd.         Texas         Sullivan                  167,000      167,000        28       93%       330,000       796,000

Hickory Lane            Newton,       Olsen Securities
Associates, Ltd         Texas         Corp.                     174,000      174,000        24       92%       320,000       593,000

Honeysuckle Court       Vidor,        Olsen Securities
Associates, Ltd.        Texas         Corp                      339,000      339,000        48       98%       622,000     1,159,000

Klimpel Manor,          Fullerton,    Klimpel Manor
Ltd                     California    Apartments              1,774,000    1,774,000        59       98%     3,360,000     1,297,000

Lamesa Seniors          Lamesa,       Winston
Community, Ltd.         Texas         Sullivan                  143,000      143,000        24       83%       284,000       669,000

Laredo Heights          Navasota,     Donald W.
Apartments Ltd.         Texas         Sowell                    225,000      225,000        48       96%       413,000       981,000

Mountainview            North         John C.
Apartments              Wilkesboro,   Loving and
Limited                 North         Gordon D.
Partnership             Carolina      Brown, Jr.                195,000      195,000        24      100%       387,000       989,000

Palestine Seniors       Palestine,    Winston
Community, Ltd.         Texas         Sullivan                  225,000      225,000        42       93%       446,000     1,119,000

Pecan Grove             Forrest       Conrad Beggs, Audrey
Limited                 City,         Beggs and Russell
Partnership             Arkansas      Altizer                   240,000      240,000        32       94%       486,000     1,104,000
</TABLE>

                                       6
<PAGE>

<TABLE>
<CAPTION>

                                                         -------------------------   -----------------------------------------------
                                                            As of March 31, 2002               As of December 31, 2001
                                                         -------------------------   -----------------------------------------------
                                                           Partnership's                                    Estimated   Encumbrances
                                                          Total Investment   Amount of                      Low Income      of Local
                                   General Partner         In Local Limited  Investment  Number              Housing        Limited
 Partnership Name      Location        Name                Partnerships    Paid to Date  Of Units Occupancy  Credits    Partnerships
------------------------------------------------------------------------------------------------------------------------------------
<S>                     <C>           <C>                  <C>          <C>                <C>       <C> <C>            <C>
                                      Philip R. Hammond,
Pioneer Street          Bakersfield,  Jr. and Walter A.
Associates              Associates    Dwelle                  2,222,000    2,222,000       112       88%     4,116,000     1,836,000

Sidney                                Retro Development,
Apartments I,                         Inc.  And Most
Limited                 Sidney,       Worshipful Prince
Partnership             Nebraska      Hall Grand Lodge          530,000      530,000        18       89%       972,000       431,000

                        Orange        Philip R. Hammond,
Southcove               Cove,         Jr. and Diane M.
Associates              California    Hammond                 2,000,000    2,000,000        54       98%     3,585,000     1,521,000

Walnut Turn             Buna,         Olsen Securities
Associates, Ltd.        Texas         Corp.                     188,000      188,000        24       96%       344,000       686,000
                                                           ------------ ------------      -----     ---- -------------  ------------
                                                           $ 12,033,000 $ 12,033,000       892       95% $  21,963,000  $ 26,069,000
                                                           ============ ============      ====      ==== =============   ===========

</TABLE>

                                       7
<PAGE>
<TABLE>
<CAPTION>


                                ------------------------------------------------------------------------------------
                                                       For the year ended December 31, 2001
                                ------------------------------------------------------------------------------------
                                                                                             Low Income Housing
                                                                                            Credits Allocated to
       Partnership Name               Rental Income              Net Loss                       Partnership
--------------------------------------------------------------------------------------------------------------------
<S>                                            <C>                   <C>                                     <C>
Apartment Housing of East
Brewton, Ltd.                                  $  116,000            $   (74,000)                            98.99%

Autumn Trace Associates, Ltd.
                                                  232,000                (33,000)                            95.00%

Broken Bow Apartments I,
Limited Partnership                                49,000                (37,000)                            99.00%

Candleridge Apartments of
Waukee L.P. II                                    125,000                 (9,000)                            99.00%

Chadwick Limited Partnership                      189,000                (36,000)                            99.00%

Comanche Retirement Village,
Ltd.                                               74,000                (13,000)                            99.00%

Crossings II Limited Dividend
Housing Association Limited
Partnership                                       738,000                (88,000)                            98.99%

EW, a Wisconsin Limited
Partnership                                        76,000                (33,000)                            99.00%

Garland Street Limited
Partnership                                        76,000                (31,000)                            99.00%

Hereford Seniors Community,
Ltd.                                               89,000                (11,000)                            99.00%

Hickory Lane Associates, Ltd                       90,000                (26,000)                            99.00%

Honeysuckle Court Associates,
Ltd.                                              202,000                (42,000)                            95.00%

Klimpel Manor, Ltd                                398,000                (52,000)                            96.00%

Lamesa Seniors Community, Ltd.
                                                  110,000                (43,000)                            99.00%

Laredo Heights Apartments Ltd.
                                                  181,000                (20,000)                            99.00%

Mountainview Apartments
Limited Partnership                                99,000                (10,000)                            99.00%

Palestine Seniors Community,
Ltd.                                              134,000               (16,000)                             99.00%

Pecan Grove Limited Partnership                   124,000               (41,000)                             99.00%
</TABLE>
                                       8
<PAGE>

<TABLE>
<CAPTION>


                                ------------------------------------------------------------------------------------
                                                       For the year ended December 31, 2001
                                ------------------------------------------------------------------------------------
                                                                                             Low Income Housing
                                                                                            Credits Allocated to
       Partnership Name               Rental Income              Net Loss                       Partnership
--------------------------------------------------------------------------------------------------------------------
<S>                                               <C>                    <C>                                 <C>
Pioneer Street Associates                         487,000                (87,000)                            99.00%

Sidney Apartments I, Limited                       71,000                (36,000)
Partnership                                                                                                  99.00%

Southcove Associates                              216,000               (120,000)                            99.00%

Walnut Turn Associates, Ltd.                      91,000                 (27,000)                            99.00%
                                              -----------             -----------
                                              $3,967,000              $ (885,000)
                                              ===========             ===========
</TABLE>
                                        9

<PAGE>



Item 3.  Legal Proceedings

During 2000,  Associates identified a potential problem with a developer who, at
the time, was the local general partner in six Local Limited  Partnerships.  The
Partnership  has a 99%  limited  partnership  interest in two of those six Local
Limited  Partnerships.  Those  investments  are Broken Bow Apartments I, Limited
Partnership and Sidney Apartments I, Limited Partnership.  All of the properties
continue to experience  operating  deficits.  The local general  partner  ceased
funding the operating deficits,  which placed the Local Limited  Partnerships in
jeopardy  of  foreclosure.  Consequently,  Associates  voted to remove the local
general partner and the management company from the Local Limited  Partnerships.
After the local  general  partner  contested its removal,  Associates  commenced
legal action on behalf of the Local Limited  Partnerships  and was successful in
getting a receiver  appointed to manage the Local  Limited  Partnerships  and an
unaffiliated  entity appointed as property manager.  Associates was subsequently
successful  in attaining a summary  judgment to confirm the removal of the local
general partner, the receiver was discharged and Associates now controls all six
of the Local Limited Partnerships.

The six Local Limited  Partnerships  (hereinafter  referred to as  "Defendants")
were  defendants  in a separate  lawsuit.  The  lawsuit was filed by eight other
partnerships   in  which  the  local  general   partner  of  the  Local  Limited
Partnerships is or was involved (the  "Plaintiffs").  The Plaintiffs allege that
the local general  partner  accepted  funds from the  Plaintiffs  and improperly
loaned these funds to the Defendants. In July 2001, this lawsuit was settled for
an  aggregate   amount  of  $35,000  of  which  the   Partnership's   share  was
approximately $11,700.

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, 2002, there were 849 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 year
     ended March 31, 2002.

Item 5b.

NOT APPLICABLE


                                       10
<PAGE>


Item 6.  Selected Financial Data

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

                                             March 31                              December 31
                         --------------------------------------------------  ------------------------
                            2002         2001         2000         1999         1998         1997
                         -----------  -----------  -----------  -----------  -----------  -----------
<S>                    <C>          <C>          <C>          <C>          <C>          <C>
ASSETS
Cash and cash
equivalents            $     32,342 $     84,147 $    180,133 $    552,348 $    738,364 $  1,480,862
Investments in limited
  partnerships, net       6,677,963    7,432,933    8,311,454   10,092,782   10,274,595    9,738,583
Loans receivable                  -            -            -            -            -      259,496
Other assets                  3,998          998          998          998        2,534       20,245
                         -----------  -----------  -----------  -----------  -----------  -----------
                       $  6,714,303 $  7,518,078 $  8,492,585 $ 10,646,128 $ 11,015,493 $ 11,499,186
                         ===========  ===========  ===========  ===========  ===========  ===========
LIABILITIES
Payables  to limited
  partnerships         $          - $          - $          - $    421,025 $    605,517 $    411,543
Accrued expenses              4,000       48,569       86,965            -            -            -
Accrued fees and
   expenses
  due to general
   partner
  and affiliates            316,573      107,278       72,598       29,722       28,066        1,137

PARTNERS' EQUITY          6,393,730    7,362,231    8,333,022   10,195,381   10,381,910   11,086,506
                         -----------  -----------  -----------  -----------  -----------  -----------
                       $  6,714,303 $  7,518,078 $  8,492,585 $ 10,646,128 $ 11,015,493 $ 11,499,186
                         ===========  ===========  ===========  ===========  ===========  ===========
</TABLE>

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

                                  For the Years Ended              For the Three Months       For the Years Ended
                                        March 31                      Ended March 31              December 31
                          -------------------------------------   -----------------------   ------------------------
                             2002         2001         2000         1999         1998         1998          1997
                          -----------  -----------  -----------   ----------   ----------   ----------    ----------
                                                                               (Unaudited)

<S>                     <C>           <C>          <C>          <C>          <C>          <C>         <C>
Loss from
  operations (Note 1)   $   (251,713) $  (139,153) $  (870,197) $   (21,846) $    (1,492) $   (50,484)$     (31,969)
Equity in losses of
   limited
  partnerships              (716,788)    (831,638)    (992,162)    (164,683)    (191,552)    (658,728)     (737,115)
                          -----------  -----------  -----------   ----------   ----------   ----------    ----------
Net loss                $   (968,501) $  (970,791) $(1,862,359) $  (186,529) $  (193,044) $  (709,212)$    (769,084)
                          ===========  ===========  ===========   ==========   ==========   ==========    ==========
Net loss allocated to:
   General partner      $     (9,685) $    (9,708) $   (18,624) $    (1,865) $    (1,930) $    (7,092)$      (7,691)
                          ===========  ===========  ===========   ==========   ==========   ==========    ==========
   Limited partners     $   (958,816) $  (961,083) $(1,843,735) $  (184,664) $  (191,114) $  (702,120)$    (761,393)
                          ===========  ===========  ===========   ==========   ==========   ==========    ==========
Net loss per limited
  partner unit          $     (61.46) $    (61.61) $   (118.19) $    (11.84) $    (12.25) $    (45.01)$      (48.81)
                          ===========  ===========  ===========  ===========   ==========   ==========    ==========
Outstanding weighted
  limited partner
  units                       15,600       15,600       15,600       15,600       15,600       15,600        15,600
                          ===========  ===========  ===========   ==========   ==========   ==========    ==========
</TABLE>

Note 1 - Loss from operations in 2000 includes a charge for impairment losses on
investments  in limited  partnerships  of  $766,559.  (See Note 2 to the audited
financial statements.)


                                       11
<PAGE>
<TABLE>
<CAPTION>

                                  For the Years Ended              For the Three Months       For the Years Ended
                                        March 31                      Ended March 31              December 31
                          -------------------------------------   -----------------------   ------------------------
                             2002         2001         2000         1999         1998         1998          1997
                          -----------  -----------  -----------   ----------   ----------   ----------   -----------
                                                                               (Unaudited)
<S>                     <C>          <C>          <C>          <C>          <C>           <C>          <C>
Net cash provided by
  (used in):
  Operating activities  $    (52,055)$   (101,935)$    (19,827)$     (8,424)$     12,245  $    26,255  $     52,765
  Investing activities           250        5,949     (352,388)    (177,592)    (109,910)    (768,753)     (935,090)
  Financing activities             -            -            -            -            -            -        (8,202)
                          -----------  -----------  -----------   ----------   ----------   ----------   -----------
Net change in cash and
  cash equivalents           (51,805)     (95,986)    (372,215)    (186,016)     (97,665)    (742,498)     (890,527)

Cash and cash
  equivalents,
  beginning of period         84,147      180,133      552,348      738,364    1,480,862    1,480,862     2,371,389
                          -----------  -----------  -----------   ----------   ----------   ----------   -----------
Cash and cash
  equivalents,
  end of period         $     32,342 $     84,147 $    180,133  $   552,348  $ 1,383,197  $   738,364  $  1,480,862
                          ===========  ===========  ===========   ==========   ==========   ==========   ===========

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

                              2001               2000              1999              1998              1997
                          --------------    ---------------    --------------    -------------     -------------
Federal                 $           137   $            141   $           135   $          124    $          113
State                                 -                  -                 -                -                 -
                          --------------    ---------------    --------------    -------------     -------------
Total                   $           137   $            141   $           135   $          124    $          113
                          ==============    ===============    ==============    =============     =============
</TABLE>

Item 7. Management's  Discussion and Analysis of Financial Condition and Results
        of Operations

Forward Looking Statements

With  the  exception  of  the  discussion  regarding   historical   information,
"Management's  Discussion  and  Analysis of Financial  Condition  and Results of
Operations"  and other  discussions  elsewhere in this Form 10-K contain forward
looking statements. Such statements are based on current expectations subject to
uncertainties  and other  factors which may involve known and unknown risks that
could  cause  actual  results  of  operations  to differ  materially  from those
projected or implied. Further, certain forward-looking statements are based upon
assumptions about future events which may not prove to be accurate.

Risks and uncertainties  inherent in forward looking statements include, but are
not  limited  to,  our  future  cash  flows and  ability  to  obtain  sufficient
financing, level of operating expenses, conditions in the low income housing tax
credit property market and the economy in general, as well as legal proceedings.
Historical  results are not necessarily  indicative of the operating results for
any future period.

Subsequent  written and oral forward  looking  statements  attributable to us or
persons  acting on our behalf  are  expressly  qualified  in their  entirety  by
cautionary  statements  in this Form 10-K and in other reports we filed with the
Securities and Exchange  Commission.  The following discussion should be read in
conjunction  with  the  Financial  Statements  and the  Notes  thereto  included
elsewhere in this filing.


                                       12
<PAGE>


Uncertainty and Commitments with Respect to Investment in Broken Bow and Sidney

The  Partnership  has two  investments  accounted  for under the equity  method,
consisting of 99% limited partnership interests in each of Broken Bow Apartments
I,  Limited  Partnership   ("Broken  Bow")  and  Sidney  Apartments  I,  Limited
Partnership ("Sidney").

During the year  ended  March 31,  2000,  Broken  Bow and  Sidney  continued  to
experience operational difficulties and negative cash flows from operations, and
ceased paying their lender.  Foreclosure  procedures were commenced by these two
Local Limited  Partnerships'  lender.  Management performed an evaluation of the
Partnership's remaining investment balances in Broken Bow and Sidney,  including
any other  anticipated  costs and determined  that an impairment  adjustment was
necessary.  An  impairment  loss of $766,559 was  recognized  for the year ended
March 31, 2000.  This  impairment  loss included  $558,688 in remaining net book
value of the  Partnership's  investments in Broken Bow and Sidney,  $120,906 and
$30,753 of cash advances,  a $37,670  accrual for anticipated  legal costs,  and
$18,542 of estimated accounting and other related costs.

As a result of the foregoing,  the Partnership,  Broken Bow,  Sidney,  and a WNC
subsidiary  executed a work-out  agreement  with the lender  (the  "Agreement"),
which was  effective  December 14,  2001.  Broken Bow was required to pay to the
lender  $165,000 as a partial  settlement of the  indebtedness  due and owing by
Broken  Bow due to the  fact  that  their  loan  was a  construction  loan.  The
Partnership advanced the aforementioned  monies to Broken Bow and fully reserved
the amount as of March 31, 2002. The balance of the  indebtedness  due and owing
to the lender by Broken Bow was  satisfied by the  execution  of two  promissory
notes.  The first note  totals  $85,000,  bears  interest  at 7% per annum,  and
requires  principal and interest  payments totaling $600 per month through April
2014, at which date the unpaid principal  balance is due. The second note totals
$500,000,  bears  interest at 1% per annum,  and has payments due monthly out of
available  cash flow, as defined,  with the unpaid  principal  balance due April
2014. The balance of the  indebtedness due and owing to the lender by Sidney was
satisfied  by the  execution  of two  promissory  notes.  The first note  totals
$130,000,  bears interest at 7% per annum,  and requires  principal and interest
payments  totaling  $900 per month  through April 2012, at which date the unpaid
principal  is due.  The second note totals  $300,000,  bears  interest at 1% per
annum, and has payments due monthly out of available cash flow, as defined, with
the  unpaid  principal  balance  due  April  2014.  The  Partnership  and  a WNC
subsidiary have executed a guarantee for the payment of both notes of Broken Bow
and Sidney.  In addition,  several other  commitments were made.  Broken Bow and
Sidney  executed  a grant deed to the  lender in the event  that  either  entity
defaults  under the terms and  provisions  of the  notes.  The deeds are held in
escrow,  and if Broken Bow or Sidney defaults on either note, the lender may, at
its option,  record the  respective  deed.  In  addition,  the  Partnership  has
assigned  the  lender  as  additional  collateral  all  of  its  residual  value
interests, as defined, in all of the Local Limited Partnerships. The Partnership
and the Local Limited  Partnerships  are  prohibited  from  selling,  assigning,
transferring or further encumbering the Housing Complexes retained by each Local
Limited Partnership.

As a result of the operating  difficulties mentioned above, there is uncertainty
as to additional  costs,  if any, that the  Partnership  may incur in connection
with its  investment in Broken Bow and Sidney and as to whether the  Partnership
will ultimately retain its interest in these Local Limited Partnerships.  In the
event the Partnership  does not  successfully  retain its interest in Broken Bow
and Sidney,  the Partnership  would be exposed to the cessation and recapture of
the related tax credits.  The Partnership's  financial statements do not include
any adjustments that might result from the outcome of these uncertainties.

Financial Condition

The  Partnership's  assets at March 31, 2002  consisted  primarily of $32,000 in
cash,  $4,000 in other assets and aggregate  investments in the twenty-two Local
Limited  Partnerships  of  $6,678,000.  Liabilities  at March 31, 2002 primarily
consisted of $4,000 of accrued  expenses and $317,000 due to General  Partner or
affiliates for advances.


                                       13
<PAGE>


Results of Operations

Year Ended March 31, 2002 Compared to Year Ended March 31, 2001 The Partnerships
net loss for the year ended March 31, 2002 was $(969,000), reflecting a decrease
of $(2,000) from the net loss  experienced  for the year ended March 31, 2000 of
$(971,000).  The  decline  in net loss is due to a  reduction  in the  equity in
losses  of  limited  partnerships  which  decreased  by  $115,000,  offset by an
increase in operating expenses of $111,000 and a decrease in income of $2,000.

Year Ended March 31, 2001 Compared to Year Ended March 31, 2000 The Partnerships
net loss for the year ended March 31, 2001 was $(971,000), reflecting a decrease
of $(891,000) from the net loss experienced for the year ended March 31, 2000 of
$(1,862,000).  The decline in net loss is due to the  impairment  loss  recorded
during  2000 in  connection  with  two of the  limited  partnership  investments
totaling $767,000,  a reduction in the equity in losses of limited  partnerships
which decreased by $160,000 due largely to the impairment loss recorded in 2000,
offset by a reduction  in income of $8,000 and an  increase  in other  operating
expenses fees of $27,000.

Cash Flows

Year Ended March 31, 2002  Compared to Year Ended March 31, 2001 Net decrease in
cash for the year ended March 31, 2002 was $(52,000)  compared to a net decrease
in cash for the year ended  March 31, 2001 of  $(96,000).  The change of $44,000
was due primarily to a decrease in cash used in operating  activities of $50,000
due  primarily  to the  increase in accrued fees and expenses due to the General
Partner and affiliates, offset by a net decrease of $6,000 in distributions from
limited partnerships.

Year Ended March 31, 2001  Compared to Year Ended March 31, 2000 Net decrease in
cash for the year ended March 31, 2001 was $(96,000)  compared to a net decrease
in cash for the year ended March 31, 2000 of $(372,000).  The change of $276,000
was due  primarily  to a  decrease  in cash  paid  for  investments  in  limited
partnerships  of  $251,000,  a decrease of $121,000 in cash  advances to limited
partnerships,  offset by an increase of $47,000 of fees paid to General Partner,
a net  decrease of $28,000 in  distributions  from  limited  partnerships  and a
decrease in income of $8,000.

During the year ended March 31, 2002 and 2001 accrued payables, which consist of
an  advance  from WNC &  Associates,  Inc.  to fund an  advance to Broken Bow of
$165,000 and related party management fees due to the General Partner  increased
by $44,000, a net increase of $209,000.  The General Partner does not anticipate
that  these  accrued  management  fees will be paid in full  until  such time as
capital   reserves  are  in  excess  of  future   foreseeable   working  capital
requirements of the Partnership.

The  Partnership  does not expect its future cash flows,  together  with its net
available  assets at March 31,  2002,  to be  sufficient  to meet all  currently
foreseeable future cash requirements.  Accordingly, WNC and Associates, Inc. has
agreed to provide advances sufficient to fund the operations and working capital
requirements of the Partnership through April 1, 2003.

Impact of New Accounting Pronouncement

In October 2001, the FASB issued Statement of Financial Accounting Standards No.
144,  "Accounting  for the  Impairment or Disposal of Long-Lived  Assets" ("SFAS
144"), which addresses  accounting and financial reporting for the impairment or
disposal of long-lived assets.  SFAS 144 is effective for fiscal years beginning
after  December 15, 2001,  and generally,  is to be applied  prospectively.  The
Partnership  has not yet completed  its  evaluation of the impact of SFAS 144 on
its financial position or results of operations.

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk

NOT APPLICABLE

Item 8.  Financial Statements and Supplementary Data


                                       14
<PAGE>








Report of Independent Certified Public Accountants


To the Partners
WNC Housing Tax Credit Fund IV, L.P., Series 2


We have audited the  accompanying  balance sheets of WNC Housing Tax Credit Fund
IV, L.P., Series 2 (a California Limited  Partnership) (the "Partnership") as of
March 31, 2002 and 2001,  and the related  statements of  operations,  partners'
equity  (deficit)  and cash flows for the years ended March 31,  2002,  2001 and
2000. 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 3 to the financial statements, the Partnership accounts for
its investments in limited  partnerships using the equity method. The portion of
the Partnership's  investments in limited partnerships audited by other auditors
represented 83% and 81% of the total assets of the Partnership at March 31, 2002
and 2001,  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 auditing standards generally accepted
in the  United  States of  America.  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 2 (a
California  Limited  Partnership) as of March 31, 2002 and 2001, and the results
of its  operations  and its cash flows for the years ended March 31, 2002,  2001
and 2000, in conformity with  accounting  principles  generally  accepted in the
United States of America.

The  Partnership   currently  has  insufficient  working  capital  to  fund  its
operations. As discussed in Note 7 to the accompanying financial statements, WNC
& Associates, Inc., has agreed to provide advances sufficient enough to fund the
operations and working capital  requirements of the Partnership through April 1,
2003.



                                                    /s/BDO SEIDMAN, LLP

Orange County, California
June 13, 2002

                                       15
<PAGE>


                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 2
                       (A California Limited Partnership)

                                 BALANCE SHEETS
<TABLE>
<CAPTION>

                                                                            March 31
                                                                 -------------------------------

                                                                     2002             2001
                                                                 --------------   --------------
<S>                                                            <C>              <C>
 ASSETS

 Cash and cash equivalents                                     $        32,342  $        84,147
 Investments in limited partnerships,
   net (Notes 2, 3, 4 and 7)                                         6,677,963        7,432,933
 Other assets                                                            3,998              998
                                                                 --------------   --------------

                                                               $     6,714,303  $     7,518,078
                                                                 ==============   ==============

 LIABILITIES AND PARTNERS' EQUITY (DEFICIT)

 Liabilities:
   Accrued expenses (Note 2)                                   $         4,000  $        48,569
   Accrued fees and expenses due to General
     Partner and affiliates (Note 4)                                   316,573          107,278
                                                                 --------------   --------------

      Total liabilities                                                320,573          155,847
                                                                 --------------   --------------

 Commitments and contingencies (Notes 2, 3 and 7)

 Partners' equity (deficit):
    General partner                                                    (88,375)         (78,690)
    Limited partners (20,000 units authorized;
      15,600 units issued and outstanding)                           6,482,105        7,440,921
                                                                 --------------   --------------

          Total partners' equity                                     6,393,730        7,362,231
                                                                 --------------   --------------

                                                               $     6,714,303  $     7,518,078
                                                                 ==============   ==============
</TABLE>

See report of independent certified public accountants and accompanying notes to
financial statements.
                                       16
<PAGE>


                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 2
                       (A California Limited Partnership)

                            STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>



                                                                   For the Years Ended March 31
                                                         --------------------------------------------------
                                                              2002              2001              2000
                                                         ---------------    -------------     -------------
<S>                                                    <C>                <C>               <C>
Interest income                                        $          2,083   $        7,274    $       14,374
Reporting fees                                                    5,800            2,950             4,000
                                                         ---------------    -------------     -------------
Total income                                                      7,883           10,224            18,374
                                                         ---------------    -------------     -------------
Operating expenses:
   Amortization (Notes 3 and 4)                                  37,932           40,934            40,935
   Asset management fees (Note 4)                                44,000           44,000            42,900
   Provision for uncollectible advances to limited
      partnership (Note 2)                                      165,000                -                 -
   Other                                                         12,664           64,443            38,177
   Impairment on investments in limited
      partnerships (Notes 2 and 3)                                    -                -           766,559
                                                         ---------------    -------------     -------------
         Total operating expenses                               259,596          149,377           888,571
                                                         ---------------    -------------     -------------
Loss from operations                                           (251,713)        (139,153)         (870,197)

Equity in losses of limited
  partnerships (Note 3)                                        (716,788)        (831,638)         (992,162)
                                                         ---------------    -------------     -------------
Net loss                                               $       (968,501) $      (970,791)   $   (1,862,359)
                                                         ===============    =============     =============
Net loss allocated to:
   General partner                                     $         (9,685) $        (9,708)   $      (18,624)
                                                         ===============    =============     =============
   Limited partners                                    $       (958,816) $      (961,083)   $   (1,843,735)
                                                         ===============    =============     =============
Net loss per limited partner unit                      $         (61.46) $        (61.61)   $      (118.19)
                                                         ===============    =============     =============
Outstanding weighted limited partner units                       15,600           15,600            15,600
                                                         ===============    =============     =============
</TABLE>

See report of independent certified public accountants and accompanying notes to
financial statements.
                                       17
<PAGE>


                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 2
                       (A California Limited Partnership)

                    STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

                For The Years Ended March 31, 2002, 2001 and 2000
<TABLE>
<CAPTION>


                                                             General             Limited              Total
                                                             Partner             Partners
                                                          ---------------     ---------------     --------------
<S>                                                     <C>                <C>                 <C>
Partners' equity (deficit) at March 31, 1999            $        (50,358)  $     10,245,739    $    10,195,381

Net loss                                                         (18,624)        (1,843,735)        (1,862,359)
                                                          ---------------     ---------------     --------------

Partners' equity (deficit) at March 31, 2000                     (68,982)         8,402,004          8,333,022

Net loss                                                          (9,708)          (961,083)          (970,791)
                                                          ---------------     ---------------     --------------

Partners' equity (deficit) at March 31, 2001                     (78,690)         7,440,921          7,362,231

Net loss                                                          (9,685)          (958,816)          (968,501)
                                                          ---------------     ---------------     --------------
Partners' equity (deficit) at March 31, 2002            $        (88,375)  $      6,482,105    $     6,393,730
                                                          ===============     ===============     ==============
</TABLE>
See report of independent certified public accountants and accompanying notes to
financial statements.

                                       18
<PAGE>


                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 2
                       (A California Limited Partnership)

                            STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>



                                                                  For the Years Ended March 31
                                                       ---------------------------------------------------
                                                           2002               2001               2000
                                                       --------------     -------------      -------------
<S>                                                  <C>               <C>                <C>
Cash flows from operating activities:
  Net loss                                           $      (968,501)  $      (970,791)   $    (1,862,359)
  Adjustments to reconcile net loss to net
  cash used in operating activities:
    Amortization                                              37,932            40,934             40,935
    Impairment loss on investments in limited
      partnerships                                                 -                 -            766,559
    Equity in losses of limited
      partnerships                                           716,788           831,638            992,162
    Change in other assets                                    (3,000)                -                  -
    Change in accrued expenses                               (44,569)          (38,396)                 -
    Change in accrued fees and expenses
     due to General Partner and affiliates                   209,295            34,680             42,876
                                                       --------------     -------------      -------------
Net cash used in operating activities                        (52,055)         (101,935)           (19,827)
                                                       --------------     -------------      -------------
Cash flows from investing
  activities:
  Investments in limited
    partnerships, net                                              -                 -           (251,149)
  Distributions from limited
    partnerships                                                 250             5,949             19,667
  Cash advances to limited partnerships                            -                 -           (120,906)
                                                       --------------     -------------      -------------
Net cash provided by (used in) investing
  activities                                                     250             5,949           (352,388)
                                                       --------------     -------------      -------------
Net decrease in cash and cash
  equivalents                                                (51,805)          (95,986)          (372,215)

Cash and cash equivalents,
  beginning of period                                         84,147           180,133            552,348
                                                       --------------     -------------      -------------
Cash and cash equivalents, end of
  period                                             $        32,342    $       84,147     $      180,133
                                                       ==============     =============      =============
SUPPLEMENTAL DISCLOSURE
   OF CASH FLOW INFORMATION:
    Taxes paid                                       $           800    $          800     $          800
                                                       ==============     =============      =============
</TABLE>
See report of independent certified public accountants and accompanying notes to
financial statements.
                                       19
<PAGE>


                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 2
                       (A California Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS

                For The Years Ended March 31, 2002, 2001 and 2000





NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
---------------------------------------------------

Organization
------------

WNC Housing Tax Credit Fund IV, L.P., Series 2 (the "Partnership") was formed on
September  27,  1993  under the laws of the state of  California  and  commenced
operations on July 18, 1994. 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.  The  chairman and  president  own
substantially all of the outstanding stock of WNC.

The Partnership  shall continue in full force and effect until December 31, 2050
unless terminated prior to that date pursuant to the partnership agreement.

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 20,000 units at $1,000 per unit
("Units").  The  offering of Units  concluded  in July 1995 at which time 15,600
Units representing subscriptions,  net of discounts for volume purchases of more
than 100 units,  in the amount of  $15,241,000  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  contributions  and a subordinated  disposition fee (as described in
Note 4) 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.


                                       20
<PAGE>


                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 2
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2002, 2001 and 2000




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
Partnership 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 Notes 3 and 4).

Equity in losses from Local Limited  Partnerships  for the years ended March 31,
2002, 2001 and 2000 have been recorded by the  Partnership  based on nine months
of reported  results  provided by the Local  Limited  Partnerships  and on three
months of results  estimated by management of the Partnership.  Equity in losses
from  the  limited  partnerships  allocated  to  the  Partnership  will  not  be
recognized to the extent that the  investment  balance  would be adjusted  below
zero.  As soon as the  investment  balance  reaches  zero,  amortization  of the
related  costs of acquiring  the  investment  are  accelerated  to the extent of
losses available (see Note 3).

                                       21
<PAGE>


                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 2
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2002, 2001 and 2000


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
--------------------------------------------------------------

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 partners'  capital and amounted to  $1,971,172  at the end of all
periods presented.

Use of Estimates
----------------

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America 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  highly liquid  investments  with maturities of three
months or less when purchased to be cash  equivalents.  As of March 31, 2002 and
2001, the Partnership had no cash equivalents.

Net Loss Per Limited Partner Unit
---------------------------------

Net loss per  limited  partner  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
------------------------------

The  Statement of Financial  Accounting  Standards  ("SFAS") No. 130,  Reporting
Comprehensive  Income  established  standards  for the  reporting and display of
comprehensive  income (loss) and its components in a full set of general-purpose
financial statements. The Partnership had no items of other comprehensive income
during the years ended  March 31,  2002,  2001 and 2000,  as defined by SFAS No.
130.

New Accounting Pronouncement
----------------------------

In October 2001, the FASB issued Statement of Financial Accounting Standards No.
144,  "Accounting  for the  Impairment or Disposal of Long-Lived  Assets" ("SFAS
144"), which addresses  accounting and financial reporting for the impairment or
disposal of long-lived assets.  SFAS 144 is effective for fiscal years beginning
after  December 15, 2001,  and generally,  is to be applied  prospectively.  The
Partnership  has not yet completed  its  evaluation of the impact of SFAS 144 on
its financial position or results of operations.


                                       22
<PAGE>

                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 2
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2002, 2001 and 2000



NOTE 2 - UNCERTAINTY AND  COMMITMENTS  WITH RESPECT TO INVESTMENTS IN BROKEN BOW
--------------------------------------------------------------------------------
         AND SIDNEY, continued
         ---------------------

The  Partnership  has two  investments  accounted  for under the equity  method,
consisting of 99% limited partnership interests in each of Broken Bow Apartments
I,  Limited  Partnership   ("Broken  Bow")  and  Sidney  Apartments  I,  Limited
Partnership ("Sidney").

During the year  ended  March 31,  2000,  Broken  Bow and  Sidney  continued  to
experience operational difficulties and negative cash flows from operations, and
ceased paying their lender.  Foreclosure  procedures were commenced by these two
Local Limited  Partnerships'  lender.  Management performed an evaluation of the
Partnership's remaining investment balances in Broken Bow and Sidney,  including
any other  anticipated  costs and determined  that an impairment  adjustment was
necessary.  An  impairment  loss of $766,559 was  recognized  for the year ended
March 31, 2000.  This  impairment  loss included  $558,688 in remaining net book
value of the  Partnership's  investments in Broken Bow and Sidney,  $120,906 and
$30,753 of cash advances,  a $37,670  accrual for anticipated  legal costs,  and
$18,542 of estimated accounting and other related costs.

As a result of the foregoing,  the Partnership,  Broken Bow,  Sidney,  and a WNC
subsidiary  executed a work-out  agreement  with the lender  (the  "Agreement"),
which was  effective  December 14,  2001.  Broken Bow was required to pay to the
lender  $165,000 as a partial  settlement of the  indebtedness  due and owing by
Broken  Bow due to the  fact  that  their  loan  was a  construction  loan.  The
Partnership advanced the aforementioned  monies to Broken Bow and fully reserved
the amount as of March 31, 2002. The balance of the  indebtedness  due and owing
to the lender by Broken Bow was  satisfied by the  execution  of two  promissory
notes.  The first note  totals  $85,000,  bears  interest  at 7% per annum,  and
requires  principal and interest  payments totaling $600 per month through April
2014, at which date the unpaid principal  balance is due. The second note totals
$500,000,  bears  interest at 1% per annum,  and has payments due monthly out of
available  cash flow, as defined,  with the unpaid  principal  balance due April
2014. The balance of the  indebtedness due and owing to the lender by Sidney was
satisfied  by the  execution  of two  promissory  notes.  The first note  totals
$130,000,  bears interest at 7% per annum,  and requires  principal and interest
payments  totaling  $900 per month  through April 2012, at which date the unpaid
principal  is due.  The second note totals  $300,000,  bears  interest at 1% per
annum, and has payments due monthly out of available cash flow, as defined, with
the  unpaid  principal  balance  due  April  2014.  The  Partnership  and  a WNC
subsidiary have executed a guarantee for the payment of both notes of Broken Bow
and Sidney.  In addition,  several other  commitments were made.  Broken Bow and
Sidney  executed  a grant deed to the  lender in the event  that  either  entity
defaults  under the terms and  provisions  of the  notes.  The deeds are held in
escrow,  and if Broken Bow or Sidney defaults on either note, the lender may, at
its option,  record the  respective  deed.  In  addition,  the  Partnership  has
assigned  the  lender  as  additional  collateral  all  of  its  residual  value
interests, as defined, in all of the Local Limited Partnerships. The Partnership
and the Local Limited  Partnerships  are  prohibited  from  selling,  assigning,
transferring or further encumbering the Housing Complexes retained by each Local
Limited Partnership.

As a result of the operating  difficulties mentioned above, there is uncertainty
as to additional  costs,  if any, that the  Partnership  may incur in connection
with its  investment in Broken Bow and Sidney and as to whether the  Partnership
will ultimately retain its interest in these Local Limited Partnerships.  In the
event the Partnership  does not  successfully  retain its interest in Broken Bow
and Sidney,  the Partnership  would be exposed to the cessation and recapture of
the related tax credits.  The Partnership's  financial statements do not include
any adjustments that might result from the outcome of these uncertainties.

                                       23

<PAGE>


                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 2
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2002, 2001 and 2000


NOTE 3 - INVESTMENTS IN LIMITED PARTNERSHIPS
--------------------------------------------

As of March 31, 2002, the Partnership had acquired limited partnership interests
in twenty-two Local Limited Partnerships, each of which owns one Housing Complex
consisting  of an aggregate  of 892  apartment  units.  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
entitled to 96% to 99%,  as  specified  in the  partnership  agreements,  of the
operating  profits and losses,  taxable income and losses and tax credits of the
Limited Partnerships.

The  Partnership's  investments  in Local Limited  Partnerships  as shown in the
balance  sheets  at March  31,  2002 and 2001  are  approximately  $502,000  and
$454,000,  respectively,  greater than the Partnership's  equity as shown in the
Local Limited Partnerships'  combined financial statements presented below. 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.  The  Partnership's  investment is also lower than the Partnership's
equity as shown in the Local Limited Partnership's combined financial statements
due to the losses  recorded by the  Partnership for the three month period ended
March 31, and the impairment of two Local Limited Partnerships (see Note 2).

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, 2002, the investment accounts in certain Local Limited Partnerships
had reached a zero balance. Consequently a portion of the Partnership's estimate
of its  share of  losses  for the  year  ended  March  31,  2002,  2001 and 2000
amounting  to  approximately   $140,000,   $36,000  and  $9,000  have  not  been
recognized.  As of  March  31,  2002,  the  aggregate  share of net  losses  not
recognized by the Partnership amounted to $209,000.

Following is a summary of the equity method activity of the investments in
limited partnerships for the periods presented:
<TABLE>
<CAPTION>
                                                                         For the Years Ended
                                                                               March 31
                                                              -------------------------------------------
                                                                 2002           2001            2000
                                                              -----------    -----------    -------------

<S>                                                         <C>            <C>            <C>
Investments per balance sheet, beginning of year            $  7,432,933   $  8,311,454   $   10,092,782
Tax credit adjustment                                                  -              -          (62,593)
Impairment loss on investments in limited partnerships
   (Note 2)                                                            -              -         (766,559)
Capital contributions payable to Sidney and Broken Bow
   offset to book value                                                -              -         (107,283)
Accrued expense (Note 2)                                               -              -           86,965
Cash advances (Note 2)                                                 -              -          120,906
Distributions received                                              (250)        (5,949)         (19,667)
Equity in losses of limited partnerships                        (716,788)      (831,638)        (992,162)
Amortization of capitalized acquisition fees and costs           (37,932)       (40,934)         (40,935)
                                                              -----------    -----------    -------------
Investments per balance sheet, end of period                $  6,677,963   $  7,432,933   $    8,311,454
                                                              ===========    ===========    =============
</TABLE>

                                       24
<PAGE>

                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 2
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2002, 2001 and 2000


NOTE 3 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued
-------------------------------------------------------

The financial  information from the individual financial statements of the Local
Limited  Partnerships  includes 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
financial  information for Broken Bow and Sidney were  previously  excluded from
the 2000 and 1999  presentation  but  have  now  been  included  in all  periods
presented. See Note 2 for further discussion):

                        COMBINED CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>

                                                                                         2001                2000
                                                                               ---------------     ---------------
                                                                                                       (restated)
<S>                                                                          <C>                 <C>
ASSETS

Land                                                                         $      1,634,000    $      1,634,000
Buildings, net of accumulated amortization of $8,489,000 and
   $7,023,000 for 2001 and 2000, respectively                                      31,695,000          33,076,000
Due from affiliates                                                                    54,000              54,000
Other assets                                                                        2,532,000           2,245,000
                                                                               ---------------     ---------------

                                                                             $     35,915,000    $     37,009,000
                                                                               ===============     ===============


LIABILITIES

Mortgage and construction loans payable                                      $     26,069,000    $     26,555,000
Other liabilities (including due to related parties of $1,993,000 and
    $1,678,000 as of December 31, 2001 and  2000, respectively)                     2,742,000           2,457,000
                                                                               ---------------     ---------------

                                                                                   28,811,000          29,012,000
                                                                               ---------------     ---------------

PARTNERS' CAPITAL

WNC Housing Tax Credit Fund IV, L.P., Series 2                                      6,176,000           6,979,000
Other partners                                                                        928,000           1,018,000
                                                                               ---------------     ---------------

                                                                                    7,104,000           7,997,000
                                                                               ---------------     ---------------

                                                                             $     35,915,000    $     37,009,000
                                                                               ===============     ===============
</TABLE>
                                       25

<PAGE>


                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 2
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2002, 2001 and 2000





NOTE 3 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued
-------------------------------------------------------

                   COMBINED CONDENSED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>

                                                                 2001                2000               1999
                                                            ---------------     ---------------    ---------------
                                                                                  (restated)         (restated)

<S>                                                       <C>                <C>                 <C>
Revenues                                                  $      4,121,000   $       3,930,000   $      3,892,000
                                                            ---------------     ---------------    ---------------
Expenses:
  Operating expenses                                             2,559,000           2,368,000          2,255,000
  Interest expense                                               1,100,000           1,191,000          1,268,000
  Depreciation and amortization                                  1,347,000           1,367,000          1,316,000
                                                            ---------------     ---------------    ---------------
   Total expenses                                                5,006,000           4,926,000          4,839,000
                                                            ---------------     ---------------    ---------------
Net loss                                                  $       (885,000)  $        (996,000)  $       (947,000)
                                                            ===============     ===============    ===============
Net loss allocable to the Partnership                     $       (874,000)  $        (985,000)  $       (935,000)
                                                            ===============     ===============    ===============
Net loss recorded by the Partnership                      $       (717,000)  $        (832,000)  $       (992,000)
                                                            ===============     ===============    ===============
</TABLE>

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  Partner  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,  and the loss and  recapture  of the related  tax credits  could occur
(furthermore see Note 7).

NOTE 4 - 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 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   $1,058,950.   Accumulated
     amortization  of these  capitalized  costs was  $302,638 and $269,703 as of
     March 31,  2002 and 2001,  respectively.  Of the  accumulated  amortization
     recorded on the  balance  sheet at March 31,  2001,  $67,480 of the related
     expense was  reflected as equity in losses of limited  partnerships  on the
     statement of operations  during the fourth  quarter of the year ended March
     31,  2001 to  reduce  the  respective  net  acquisition  fee  component  of
     investments in local limited  partnerships  to zero for those Local Limited
     Partnerships which would otherwise be below a zero balance.

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.  The Partnership incurred acquisition costs
of $169,103,  at the end of all periods  presented,  which have been included in
investments in limited partnerships.  Accumulated  amortization was $110,059 and
$46,011,  as of  March  31,  2002 and  2001,  respectively.  Of the  accumulated
amortization  recorded on the balance  sheet at March 31,  2001,  $15,258 of the
related expense was reflected as equity in losses of limited partnerships on the
statement of  operations  during the fourth  quarter of the year ended March 31,
2001 to reduce the respective net  acquisition  cost component of investments in
local limited  partnerships to zero for those Local Limited  Partnerships  which
would  otherwise be below a zero balance.  During the year ended March 31, 2002,
an additional $59,051 was recognized under the same methodology.

                                       26
<PAGE>
                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 2
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2002, 2001 and 2000




NOTE  4  -  RELATED  PARTY TRANSACTIONS, continued
 --------------------------------------------------

          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  $44,000,  $44,000  and  $42,900  were
          incurred  during  the  years  ended  March  31,  2002,  2001 and 2000,
          respectively,  of which $0,  $3,750  and $3,750  were paid  during the
          years ended March 31, 2002, 2001 and 2000, 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.

The accrued fees and expenses due to General Partner and affiliates consisted of
the following:
<TABLE>
<CAPTION>
                                                                                   March 31
                                                                        -------------------------------
                                                                           2002              2001
                                                                        ------------    ---------------

<S>                                                                   <C>             <C>
Reimbursement for expenses paid by the General
  Partner or an affiliate                                             $     166,414   $          1,119

Asset management fee payable                                                150,159            106,159
                                                                        ------------    ---------------

Total                                                                 $     316,573   $        107,278
                                                                        ============    ===============
</TABLE>

The General  Partner does not  anticipate  that these  accrued fees will be paid
until such time as capital reserves are in excess of future foreseeable  working
capital requirements of the Partnership.


                                       27
<PAGE>



                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 2
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2002, 2001 and 2000


NOTE 5 - QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
----------------------------------------------------

The following is a summary of the quarterly operations for the years ended March
31, 2002 and 2001.
<TABLE>
<CAPTION>

                                                June 30          September 30        December 31          March 31
                                            ----------------    ---------------     ---------------    ---------------

                  2002
                  ----

<S>                                       <C>                 <C>                 <C>                <C>
Income                                    $             800   $            700    $            500   $          6,000

Operating expenses                                  (26,000)           (28,000)           (190,000)           (16,000)

Equity in losses of limited partnerships           (168,000)          (200,000)           (138,000)          (211,000)

Net loss                                           (194,000)          (227,000)           (328,000)          (218,000)

Loss available to limited partners                 (192,000)          (225,000)           (325,000)          (217,000)

Loss per limited partner unit                           (12)               (14)                (21)               (14)

                  2001
                  ----

Income                                    $           2,000   $          2,000    $          2,000   $          4,000

Operating expenses                                  (42,000)           (56,000)            (26,000)           (25,000)

Equity in losses of limited partnerships           (187,000)          (186,000)           (187,000)          (272,000)

Net loss                                           (227,000)          (240,000)           (211,000)          (293,000)

Loss available to limited partner                  (224,000)          (238,000)           (208,000)          (291,000)

Loss per limited partner unit                           (14)               (15)                (13)               (19)
</TABLE>

NOTE 6 - INCOME TAXES
---------------------

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

                                       28

<PAGE>


                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 2
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2002, 2001 and 2000

NOTE 7 - COMMITMENTS AND CONTINGENCIES
--------------------------------------

During 2000,  WNC  identified a potential  problem with a developer  who, at the
time,  was the local  general  partner in six Local  Limited  Partnerships.  The
Partnership  has a 99%  limited  partnership  interest in two of those six Local
Limited  Partnerships.  Those  investments  are Broken Bow Apartments I, Limited
Partnership, and Sidney Apartments I, Limited Partnership. All of the properties
continue to experience  operating  deficits.  The local general  partner  ceased
funding the operating deficits,  which placed the Local Limited  Partnerships in
jeopardy of  foreclosure.  Consequently,  WNC voted to remove the local  general
partner and the management  company from the Local Limited  Partnerships.  After
the local general partner  contested its removal,  WNC commenced legal action on
behalf  of the  Local  Limited  Partnerships  and was  successful  in  getting a
receiver appointed to manage the Local Limited  Partnerships and an unaffiliated
entity  appointed  as  property  manager.  WNC was  subsequently  successful  in
attaining  a summary  judgment  to  confirm  the  removal  of the local  general
partner,  the receiver was  discharged and WNC now controls all six of the Local
Limited Partnerships.

The six Local Limited  Partnerships  (hereinafter  referred to as  "Defendants")
were  defendants  in a separate  lawsuit.  The  lawsuit was filed by eight other
partnerships   in  which  the  local  general   partner  of  the  Local  Limited
Partnerships is or was involved (the  "Plaintiffs").  The Plaintiffs allege that
the local general  partner  accepted  funds from the  Plaintiffs  and improperly
loaned these funds to the Defendants. In July 2001, this lawsuit was settled for
an aggregate amount of $35,000. The Partnership's allocated share of $11,700 had
been accrued in full at March 31, 2001 and paid in full at March 31, 2002.

The  Partnership   currently  has  insufficient  working  capital  to  fund  its
operations. WNC and Associates, Inc., the general partner of the General Partner
of the Partnership, has agreed to provide advances sufficient enough to fund the
operations and working capital  requirements of the Partnership through April 1,
2003.


                                       29
<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,  David N. Shafer,  Wilfred N.  Cooper,  Jr. and Kay L.
Cooper.  The  principal  shareholders  of  WNC &  Associates,  Inc.  is a  trust
established by Wilfred N. Cooper, Sr.

Wilfred N.  Cooper,  Sr.,  age 71, is the  founder,  Chairman,  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.

Wilfred N. Cooper,  Jr., age 39, is President,  Executive Vice President,  Chief
Operating Officer, 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 50, is  Executive  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.

Thomas J. Riha, age 47, became Chief Financial  Officer  effective January 2001.
Prior to his  appointment  as Chief  Financial  Officer he was 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.

                                       30
<PAGE>

Sy P. Garban,  age 56, 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.

Michael J. Gaber,  age 36, is Vice President - Acquisitions  and a member of the
Acquisitions Committee of WNC & Associates,  Inc. Mr. Gaber has been involved in
real estate acquisition,  valuation and investment activities since 1989 and has
been employed with WNC since 1997.  Prior to joining WNC & Associates,  Inc., he
was involved in the valuation and classification of major assets,  restructuring
of debt and analysis of real estate taxes with the H.F. Ahmanson company, parent
to Home  Savings of America.  Mr.  Gaber  graduated  from the  California  State
University,  Fullerton  in 1991 with a Bachelor  of Science  degree in  Business
Administration - Finance.

David Turek, age 47, 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 65, 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.


                                       31
<PAGE>


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 the General
Partner or Associates for the following fees:

(a)  Annual Asset  Management Fee. An annual asset management fee of 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 changes 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 indebtedness related to the
     Housing  Complexes.  Fees of $44,000,  $44,000 and  $43,000  were  incurred
     during the years ended March 31,  2002,  2001 and 2000,  respectively.  The
     Partnership  paid the  General  Partner or its  affiliates  $0,  $4,000 and
     $4,000 of those fees during the years ended March 31, 2002,  2001 and 2000,
     respectively.

(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  Expense.  The Partnership  reimbursed the General Partner or its
     affiliates for operating  expenses of  approximately  $39,000,  $58,000 and
     $31,000 during the years ended March 31, 2002, 2001 and 2000, respectively.

(d)  Interest  in  Partnership.   The  General  Partners   receives  1%  of  the
     Partnership's  allocated Low Income  Housing  Credits,  which  approximated
     $22,000,  $22,000 and  $20,000 for the General  Partner for the years ended
     March 31,  2002,  2001 and 2000.  The General  Partner is also  entitled to
     receive 1% of cash  distributions.  There were no  distributions of cash to
     the General Partner during the years ended March 31, 2002, 2001 and 2000.

Item 12.  Security Ownership of Certain Beneficial Owners and Management

          Security Ownership of Certain Beneficial Owners

(a)       Security Ownership of Certain Beneficial Owners
          -----------------------------------------------

          The following is the only limited partner known to the General Partner
          to own beneficially in excess of 5% of the outstanding Units.
<TABLE>
<CAPTION>

                                         Name and Address of                Amount of Units
                 Title of Class          Beneficial Owner                      Controlled     Percent of Class
         ----------------------------------------------------------------------------------- -------------------
<S>      <C>                             <C>                                   <C>                    <C>

         Units of Limited Partnership    Sempra Energy Financial               4,000 Units            25.6%
         Interests                       P.O. Box 126943
                                         San Diego, CA 92113-6943
</TABLE>


                                       32
<PAGE>


     (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 its 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.


                                       33
<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
         Balance Sheets, March 31, 2002 and 2001
         Statements of Operations for the years ended March 31, 2002, 2001 and
           2000
         Statements of Partners' Equity (Deficit) for the years ended March
           31, 2002, 2001 and 2000
         Statements of Cash Flows for the years ended March 31, 2002, 2001 and
           2000
         Notes to Financial Statements

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

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

(b)      Reports on Form 8-K
         -------------------

1.       NONE

(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  which is included in  Post-Effective  No 11 to Registration
         Statement  on Form  S-11  dated  May 24,  1995  incorporated  herein by
         reference as Exhibit 3.

10.1     Amended  and  Restated  Agreement  of Limited  Partnership  of Chadwick
         Limited  Partnership  filed as exhibit  10.1 to Form 8-K dated July 22,
         1994 is hereby incorporated herein by reference as exhibit 10.1.

10.2     Second Amended and Restated Agreement of Limited Partnership of Garland
         Street Limited Partnership filed as exhibit 10.2 to Form 8-K dated July
         22, 1994 is hereby incorporated herein by reference as exhibit 10.2.

10.3     Amended and Restated Agreement of Limited Partnership of Lamesa Seniors
         Community,  Ltd.  filed as exhibit 10.3 to Form 8-K dated July 22, 1994
         is hereby incorporated herein by reference as exhibit 10.3.

10.4     Amended and  Restated  Agreement  of Limited  Partnership  of Palestine
         Seniors  Community,  Ltd.  filed as exhibit 10.4 to Form 8-K dated July
         22, 1994 is hereby incorporated herein by reference as exhibit 10.4.

10.5     Second  Amended  and  Restated  Agreement  of  Limited  Partnership  of
         Southcove  Associates filed as exhibit 10.1 to Form 8-K dated August 8,
         1994 is hereby incorporated herein by reference as exhibit 10.5.

10.6     Third  Amended  and  Restated  Agreement  of  Limited   Partnership  of
         Southcove  Associates filed as exhibit 10.2 to Form 8-K dated August 8,
         1994 is hereby incorporated herein by reference as exhibit 10.6.

10.7     Amended  and  Restated  Agreement  of Limited  Partnership  of Comanche
         Retirement Village, Ltd. filed as exhibit 10.1 to Form 8-K dated August
         31, 1994 is hereby incorporated herein by reference as exhibit 10.7.

10.8     Amended and Restated  Agreement of Limited  Partnership of Mountainview
         Apartments Limited  Partnership filed as exhibit 10.1 to Form 8-K dated
         September  21,  1994 is  hereby  incorporated  herein by  reference  as
         exhibit 10.8.

                                       34
<PAGE>

10.9     Second   Amendment  to  Amended  and  Restated   Agreement  of  Limited
         Partnership of Mountainview  Apartments  Limited  Partnership  filed as
         exhibit  10.2  to  Form  8-K  dated   September   21,  1994  is  hereby
         incorporated herein by reference as exhibit 10.9.

10.10    Amended and Restated  Agreement of Limited  Partnership  of Pecan Grove
         Limited  Partnership  filed as exhibit 10.3 to Form 8-K dated September
         21, 1994 is hereby incorporated herein by reference as exhibit 10.10.

10.11    Second   Amendment  to  Amended  and  Restated   Agreement  of  Limited
         Partnership of Pecan Grove Limited Partnership filed as exhibit 10.4 to
         Form 8-K dated  September  21,  1994 is hereby  incorporated  herein by
         reference as exhibit 10.11.

10.12    Second Amendment to and Entire  Restatement of the Agreement of Limited
         Partnership of Autumn Trace  Associates,  Ltd. filed as exhibit 10.1 to
         Form 8-K  dated  October  31,  1994 is  hereby  incorporated  herein by
         reference as exhibit 10.12.

10.13    Amended  and  Restated  Agreement  of  Limited  Partnership  of  EW , a
         Wisconsin  Limited  Partnership filed as exhibit 10.2 to Form 8-K dated
         October 31, 1994 is hereby  incorporated herein by reference as exhibit
         10.13.

10.14    Agreement  of Limited  Partnership  of  Klimpel  Manor,  Ltd.  filed as
         exhibit  10.3  to  Form  8-K  dated   September   21,  1994  is  hereby
         incorporated herein by reference as exhibit 10.14.

10.15    Amended and Restated  Agreement of Limited  Partnership of Hickory Lane
         Associates  Limited filed as exhibit 10.15 to Form 10-K dated  December
         31, 1995 is hereby incorporated herein by reference as exhibit 10.15.

10.16    Amended and Restated  Agreement of Limited  Partnership  of Honeysuckle
         Court  Associates,  Ltd.  filed as  exhibit  10.16 to Form  10-K  dated
         December 31, 1995 is hereby incorporated herein by reference as exhibit
         10.16.

10.17    Amended and Restated  Agreement of Limited  Partnership  of Walnut Turn
         Associates, Ltd. filed as exhibit 10.17 to Form 10-K dated December 31,
         1995 is hereby incorporated herein by reference as exhibit 10.17.

10.18    Amended and Restated Agreement of Limited Partnership of Pioneer Street
         Associates,  a California limited  partnership filed as exhibit 10.1 to
         Form 8-K dated July 5, 1995 is hereby  incorporated herein by reference
         as exhibit 10.18.

21.1     Financial statements of Pioneer Street Associates, a California Limited
         Partnership  as of and for the years ended  December  31, 2001 and 2000
         together  with  independent  auditors'  report  thereon;  a significant
         subsidiary of the Partnership.

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

                                       35
<PAGE>


              Report of Independent Certified Public Accountants on
                          Financial Statement Schedules





To the Partners
WNC Housing Tax Credit Fund IV, L.P., Series 2


The audits referred to in our report dated June 13, 2002,  relating to the 2002,
2001 and 2000  financial  statements  of WNC Housing  Tax Credit Fund IV,  L.P.,
Series 2 (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 present fairly, in all
material respects, the financial information set forth therein.



                                                 /s/BDO SEIDMAN, LLP


Orange County, California
June 13, 2002

                                       36
<PAGE>



WNC Housing Tax Credit Fund IV, L.P., Series 2
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2002
<TABLE>
<CAPTION>
                                          --------------------------------------  --------------------------------------------------
                                                 As of March 31, 2002                        As of December 31, 2001
                                          --------------------------------------  --------------------------------------------------
                                             Partnership's
                                           Total Investment   Amount of    Encumbrances
                                           in Local Limited   Investment  of Local Limited  Property and    Accumulated     Net Book
          Partnership Name      Location     Partnerships     Paid to Date  Partnerships    Equipment       Depreciation       Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                             <C>          <C>           <C>               <C>            <C>            <C>           <C>
Apartment Housing of            East Brewton,
East Brewton, Ltd.              Alabama      $ 1,192,000   $ 1,192,000       $ 1,139,000    $ 2,341,000    $  (254,000)  $ 2,087,000

Autumn Trace                    Silsbee,
Associates, Ltd.                Texas            412,000       412,000         1,243,000      2,058,000       (618,000)    1,440,000

Broken Bow Apartments I,        Broken Bow,
Limited Partnership             Nebraska         608,000       608,000           586,000      1,384,000       (171,000)    1,213,000

Candleridge Apartments          Waukee,
of Waukee L.P. II               Iowa             125,000       125,000           676,000        895,000       (202,000)      693,000

Chadwick Limited                Edan, North
Partnership                     Carolina         378,000       378,000         1,540,000      2,021,000       (344,000)    1,677,000

Comanche Retirement             Comanche,
Village, Ltd.                   Texas            136,000       136,000           589,000        761,000       (174,000)      587,000

Crossings II Limited Dividend
Housing Association Limited     Portage,
Partnership                     Michigan         432,000       432,000         5,812,000      6,952,000       (862,000)    6,090,000

EW, a Wisconsin Limited         Evansville,
Partnership                     Wisconson        164,000       164,000           613,000        900,000       (262,000)      638,000

Garland Street                  Malvarn,
Limited Partnership             Arkansas         164,000       164,000           690,000        927,000       (273,000)      654,000

Hereford Seniors                Hereford,
Community, Ltd.                 Texas            167,000       167,000           796,000      1,005,000       (167,000)      838,000
</TABLE>

                                       37
<PAGE>



WNC Housing Tax Credit Fund IV, L.P., Series 2
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2002
<TABLE>
<CAPTION>
                                          --------------------------------------  --------------------------------------------------
                                                 As of March 31, 2002                        As of December 31, 2001
                                          --------------------------------------  --------------------------------------------------
                                             Partnership's
                                           Total Investment   Amount of    Encumbrances
                                           in Local Limited   Investment  of Local Limited  Property and    Accumulated     Net Book
          Partnership Name      Location     Partnerships     Paid to Date  Partnerships    Equipment       Depreciation       Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                             <C>          <C>           <C>               <C>           <C>             <C>          <C>
Hickory Lane                    Newton,
Associates, Ltd                 Texas            174,000       174,000           593,000        950,000       (193,000)      757,000

Honeysuckle Court               Vidor,
Associates, Ltd.                Texas            339,000       339,000         1,159,000      1,833,000       (388,000)    1,445,000

Klimpel Manor,                  Fullerton,
Ltd                             California     1,774,000     1,774,000         1,297,000      3,588,000       (754,000)    2,834,000

Lamesa Seniors                  Lamesa,
Community, Ltd.                 Texas            143,000       143,000           669,000        820,000       (212,000)      608,000

Laredo Heights                  Navasota,
Apartments Ltd.                 Texas            225,000       225,000           981,000      1,374,000       (221,000)    1,153,000

Mountainview                    North
Apartments                      Wilkesboro,
Limited                         North
Partnership                     Carolina         195,000       195,000           989,000      1,212,000       (372,000)      840,000

Palestine Seniors               Palestine,
Community, Ltd.                 Texas            225,000       225,000         1,119,000      1,385,000       (265,000)    1,120,000

Pecan Grove
Limited                         Forrest City,
Partnership                     Arkansas         240,000       240,000         1,104,000      1,417,000       (427,000)      990,000

Pioneer Street                  Bakersfield,
Associates                      California     2,222,000     2,222,000         1,836,000      4,087,000     (1,023,000)    3,064,000

Sidney Apartments
I, Limited                      Sidney,
Partnership                     Nebraska         530,000       530,000           431,000      1,420,000       (214,000)    1,206,000

Southcove                       Orange Cove,
Associates                      California     2,000,000     2,000,000         1,521,000      3,448,000       (879,000)    2,569,000

Walnut Turn                     Buna,
Associates, Ltd.                Texas            188,000       188,000           686,000      1,040,000       (214,000)      826,000
                                             ------------  -----------       ------------  -------------   ------------ ------------
                                             $12,033,000   $12,033,000       $26,069,000   $ 41,818,000    $ 8,489,000  $ 33,329,000
                                             ============  ===========       ============  =============   ============ ============
</TABLE>


                                       38
<PAGE>



WNC Housing Tax Credit Fund IV, L.P., Series 2
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2002
<TABLE>
<CAPTION>
                                   ----------------------------------------------------------------------------------
                                                         For the year ended December 31, 2001
                                   ----------------------------------------------------------------------------------
                                                                              Year                     Estimated
                                                                           Investment                  Useful Life
         Partnership Name             Rental Income        Net loss          Acquired       Status      (Years)
---------------------------------------------------------------------------------------------------------------------
<S>                                        <C>               <C>                    <C>     <C>           <C>
Apartment Housing of East
Brewton, Ltd.                              $   116,000       $  (74,000)            1998    Completed       40 Years

Autumn Trace Associates, Ltd.                  232,000          (33,000)            1994    Completed     27.5 Years

Broken Bow Apartments I, Limited
Partnership                                     49,000          (37,000)            1996    Completed       40 Years

Candleridge Apartments of Waukee
L.P. II                                        125,000           (9,000)            1995    Completed     27.5 Years

Chadwick Limited Partnership                   189,000          (36,000)            1994    Completed       50 Years

Comanche Retirement Village, Ltd.
                                                74,000          (13,000)            1994    Completed       30 Years

Crossings II Limited Dividend
Housing Association Limited
Partnership                                    738,000          (88,000)            1997    Completed       40 Years

EW, a Wisconsin Limited
Partnership                                     76,000          (33,000)            1994    Completed     27.5 Years

Garland Street Limited Partnership
                                                76,000          (31,000)            1994    Completed     27.5 Years

Hereford Seniors Community, Ltd.
                                                89,000          (11,000)            1995    Completed       40 Years

Hickory Lane Associates, Ltd                    90,000          (26,000)            1995    Completed     27.5 Years

Honeysuckle Court Associates, Ltd.
                                               202,000          (42,000)            1995    Completed     27.5 Years

Klimpel Manor, Ltd                             398,000          (52,000)            1994    Completed       40 Years

Lamesa Seniors Community, Ltd.
                                               110,000          (43,000)            1994    Completed       40 Years

Laredo Heights Apartments Ltd.                 181,000          (20,000)            1996    Completed       45 Years

Mountainview Apartments Limited
Partnership                                     99,000          (10,000)            1994    Completed       40 Years

Palestine Seniors Community, Ltd.
                                               134,000          (16,000)            1994    Completed       40 Years
</TABLE>

                                       39
<PAGE>

WNC Housing Tax Credit Fund IV, L.P., Series 2
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2002
<TABLE>
<CAPTION>
                                   ----------------------------------------------------------------------------------
                                                         For the year ended December 31, 2001
                                   ----------------------------------------------------------------------------------
                                                                              Year                     Estimated
                                                                           Investment                  Useful Life
         Partnership Name             Rental Income        Net loss          Acquired       Status      (Years)
---------------------------------------------------------------------------------------------------------------------
<S>                                            <C>              <C>                 <C>     <C>           <C>
Pecan Grove Limited Partnership                124,000          (41,000)            1994    Completed     27.5 Years

Pioneer Street Associates                      487,000          (87,000)            1995    Completed     27.5 Years

Sidney Apartments I, Limited                    71,000          (36,000)
Partnership                                                                         1996    Completed       40 Years

Southcove Associates                           216,000         (120,000)            1994    Completed     27.5 Years

Walnut Turn Associates, Ltd.                    91,000          (27,000)            1995    Completed     27.5 Years
                                           ------------      -----------
                                           $ 3,967,000       $ (885,000)
                                           ============      ===========
</TABLE>


                                       40
<PAGE>



WNC Housing Tax Credit Fund IV, L.P., Series 2
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2001
<TABLE>
<CAPTION>
                                          --------------------------------------  --------------------------------------------------
                                                 As of March 31, 2001                        As of December 31, 2000(Restated)
                                          --------------------------------------  --------------------------------------------------
                                             Partnership's
                                           Total Investment   Amount of    Encumbrances
                                           in Local Limited   Investment  of Local Limited  Property and    Accumulated     Net Book
          Partnership Name      Location     Partnerships     Paid to Date  Partnerships    Equipment       Depreciation       Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                             <C>          <C>           <C>               <C>            <C>            <C>           <C>
Apartment Housing of            East Brewton,
East Brewton, Ltd.              Alabama      $ 1,192,000   $ 1,192,000       $ 1,145,000    $ 2,339,000    $  (168,000)  $ 2,171,000

Autumn Trace                    Silsbee,
Associates, Ltd.                Texas            412,000       412,000         1,253,000      2,059,000       (544,000)    1,515,000

Broken Bow Apartments I,        Broken Bow,
Limited Partnership             Nebraska         608,000       608,000           750,000      1,383,000       (130,000)    1,253,000

Candleridge Apartments          Waukee,
of Waukee L.P. II               Iowa             125,000       125,000           679,000        883,000       (171,000)      712,000

Chadwick Limited                Edan, North
Partnership                     Carolina         378,000       378,000         1,551,000      2,020,000       (298,000)    1,722,000

Comanche Retirement             Comanche,
Village, Ltd.                   Texas            136,000       136,000           591,000        748,000       (166,000)      582,000

Crossings II Limited Dividend
Housing Association Limited     Portage,
Partnership                     Michigan         432,000       432,000         5,905,000      6,952,000       (666,000)    6,286,000

EW, a Wisconsin Limited         Evansville,
Partnership                     Wisconson        164,000       164,000           613,000        882,000       (224,000)      658,000

Garland Street                  Malvarn,
Limited Partnership             Arkansas         164,000       164,000           693,000        924,000       (237,000)      687,000

Hereford Seniors                Hereford,
Community, Ltd.                 Texas            167,000       167,000           799,000      1,006,000       (142,000)      864,000
</TABLE>

                                       41
<PAGE>



WNC Housing Tax Credit Fund IV, L.P., Series 2
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2001
<TABLE>
<CAPTION>
                                          --------------------------------------  --------------------------------------------------
                                                 As of March 31, 2001                        As of December 31, 2000(Restated)
                                          --------------------------------------  --------------------------------------------------
                                             Partnership's
                                           Total Investment   Amount of    Encumbrances
                                           in Local Limited   Investment  of Local Limited  Property and    Accumulated     Net Book
          Partnership Name      Location     Partnerships     Paid to Date  Partnerships    Equipment       Depreciation       Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                             <C>          <C>           <C>               <C>           <C>             <C>          <C>
Hickory Lane                    Newton,
Associates, Ltd                 Texas            174,000       174,000           594,000        950,000       (160,000)      790,000

Honeysuckle Court               Vidor,
Associates, Ltd.                Texas            339,000       339,000         1,162,000      1,833,000       (323,000)    1,510,000

Klimpel Manor,                  Fullerton,
Ltd                             California     1,774,000     1,774,000         1,314,000      3,589,000       (649,000)    2,940,000

Lamesa Seniors                  Lamesa,
Community, Ltd.                 Texas            143,000       143,000           671,000        818,000       (184,000)      634,000

Laredo Heights                  Navasota,
Apartments Ltd.                 Texas            225,000       225,000         1,101,000      1,358,000       (179,000)    1,179,000

Mountainview                    North
Apartments                      Wilkesboro,
Limited                         North
Partnership                     Carolina         195,000       195,000           994,000      1,211,000       (197,000)    1,014,000

Palestine Seniors               Palestine,
Community, Ltd.                 Texas            225,000       225,000         1,124,000      1,385,000       (231,000)    1,154,000

Pecan Grove
Limited                         Forrest City,
Partnership                     Arkansas         240,000       240,000         1,109,000      1,402,000       (370,000)    1,032,000

Pioneer Street                  Bakersfield,
Associates                      California     2,222,000     2,222,000         1,862,000      4,087,000       (876,000)    3,211,000

Sidney Apartments
I, Limited                      Sidney,
Partnership                     Nebraska         530,000       530,000           430,000      1,419,000       (176,000)    1,243,000

Southcove                       Orange Cove,
Associates                      California     2,000,000     2,000,000         1,527,000      3,445,000       (753,000)    2,692,000

Walnut Turn                     Buna,
Associates, Ltd.                Texas            188,000       188,000           688,000      1,040,000       (179,000)      861,000
                                             ------------  -----------       ------------  -------------   ------------ ------------
                                             $12,033,000   $12,033,000       $26,555,000   $ 41,733,000    $(7,023,000) $ 34,710,000
                                             ============  ===========       ============  =============   ============ ============
</TABLE>


                                       42
<PAGE>



WNC Housing Tax Credit Fund IV, L.P., Series 2
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2001
<TABLE>
<CAPTION>


                                   ----------------------------------------------------------------------------------
                                                         For the year ended December 31, 2000(Restated)
                                   ----------------------------------------------------------------------------------
                                                                             Year                     Estimated
                                                         Net Income       Investment                  Useful Life
         Partnership Name             Rental Income        (loss)          Acquired       Status      (Years)
---------------------------------------------------------------------------------------------------------------------
<S>                                        <C>               <C>                    <C>     <C>           <C>
Apartment Housing of East
Brewton, Ltd.                              $   114,000       $  (89,000)            1998    Completed       40 Years

Autumn Trace Associates, Ltd.                  209,000          (47,000)            1994    Completed     27.5 Years

Broken Bow Apartments I, Limited
Partnership                                     41,000          (76,000)            1996    Completed       40 Years

Candleridge Apartments of Waukee
L.P. II                                        129,000           (4,000)            1995    Completed     27.5 Years

Chadwick Limited Partnership                   183,000          (27,000)            1994    Completed       50 Years

Comanche Retirement Village, Ltd.
                                                67,000          (16,000)            1994    Completed       30 Years

Crossings II Limited Dividend
Housing Association Limited
Partnership                                    648,000         (145,000)            1997    Completed       40 Years

EW, a Wisconsin Limited
Partnership                                     74,000          (67,000)            1994    Completed     27.5 Years

Garland Street Limited Partnership
                                                69,000          (30,000)            1994    Completed     27.5 Years

Hereford Seniors Community, Ltd.
                                                96,000                 0            1995    Completed       40 Years

Hickory Lane Associates, Ltd                    75,000          (32,000)            1995    Completed     27.5 Years

Honeysuckle Court Associates, Ltd.
                                               191,000          (47,000)            1995    Completed     27.5 Years

Klimpel Manor, Ltd                             374,000          (55,000)            1994    Completed       40 Years

Lamesa Seniors Community, Ltd.
                                               103,000          (26,000)            1994    Completed       40 Years

Laredo Heights Apartments Ltd.                 167,000            6,000             1996    Completed       45 Years

Mountainview Apartments Limited
Partnership                                     96,000          (18,000)            1994    Completed       40 Years

Palestine Seniors Community, Ltd.              148,000           11,000             1994    Completed       40 Years
</TABLE>

                                       43
<PAGE>


WNC Housing Tax Credit Fund IV, L.P., Series 2
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2001
<TABLE>
<CAPTION>

                                   ----------------------------------------------------------------------------------
                                                         For the year ended December 31, 2000(Restated)
                                   ----------------------------------------------------------------------------------
                                                                             Year                     Estimated
                                                         Net Income       Investment                  Useful Life
         Partnership Name             Rental Income        (loss)          Acquired       Status      (Years)
---------------------------------------------------------------------------------------------------------------------
<S>                                            <C>              <C>                 <C>     <C>           <C>
Pecan Grove Limited Partnership                123,000          (58,000)            1994    Completed     27.5 Years

Pioneer Street Associates                      491,000          (80,000)            1995    Completed     27.5 Years

Sidney Apartments I, Limited
Partnership                                     57,000          (61,000)            1996    Completed       40 Years

Southcove Associates                           226,000         (103,000)            1994    Completed     27.5 Years

Walnut Turn Associates, Ltd.                    92,000          (32,000)            1995    Completed     27.5 Years
                                          ------------       -----------
                                          $  3,773,000       $ (996,000)
                                          ============       ===========
</TABLE>

                                       44
<PAGE>



WNC Housing Tax Credit Fund IV, L.P., Series 2
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2000
 <TABLE>
<CAPTION>
                                          --------------------------------------  --------------------------------------------------
                                                 As of March 31, 2000                        As of December 31, 1999(Restated)
                                          --------------------------------------  --------------------------------------------------
                                             Partnership's
                                           Total Investment   Amount of    Encumbrances
                                           in Local Limited   Investment  of Local Limited  Property and    Accumulated     Net Book
          Partnership Name      Location     Partnerships     Paid to Date  Partnerships    Equipment       Depreciation       Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                             <C>          <C>           <C>               <C>            <C>            <C>           <C>
Apartment Housing of            East Brewton,
East Brewton, Ltd.              Alabama      $ 1,192,000   $ 1,192,000       $ 1,150,000    $ 2,339,000    $   (74,000)  $ 2,265,000

Autumn Trace                    Silsbee,
Associates, Ltd.                Texas            412,000       412,000         1,261,000      2,059,000       (469,000)    1,590,000

Broken Bow Apartments I,        Broken Bow,
Limited Partnership             Nebraska         608,000       608,000           750,000      1,383,000        (90,000)    1,293,000

Candleridge Apartments          Waukee,
of Waukee L.P. II               Iowa             125,000       125,000           682,000        883,000       (141,000)      742,000

Chadwick Limited                Edan, North
Partnership                     Carolina         378,000       378,000         1,561,000      2,010,000       (253,000)    1,757,000

Comanche Retirement             Comanche,
Village, Ltd.                   Texas            136,000       136,000           592,000        748,000       (138,000)      610,000

Crossings II Limited Dividend
Housing Association Limited     Portage,
Partnership                     Michigan         432,000       432,000         5,992,000      6,952,000       (470,000)    6,482,000

EW, a Wisconsin Limited         Evansville,
Partnership                     Wisconson        164,000       164,000           619,000        869,000       (189,000)      680,000

Garland Street                  Malvarn,
Limited Partnership             Arkansas         164,000       164,000           696,000        920,000       (200,000)      720,000

Hereford Seniors                Hereford,
Community, Ltd.                 Texas            167,000       167,000           802,000      1,005,000       (177,000)      888,000
</TABLE>

                                       45
<PAGE>


WNC Housing Tax Credit Fund IV, L.P., Series 2
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2000
<TABLE>
<CAPTION>
                                          --------------------------------------  --------------------------------------------------
                                                 As of March 31, 2000                        As of December 31, 1999(Restated)
                                          --------------------------------------  --------------------------------------------------
                                             Partnership's
                                           Total Investment   Amount of    Encumbrances
                                           in Local Limited   Investment  of Local Limited  Property and    Accumulated     Net Book
          Partnership Name      Location     Partnerships     Paid to Date  Partnerships    Equipment       Depreciation       Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                             <C>          <C>           <C>               <C>           <C>             <C>          <C>
Hickory Lane                    Newton,
Associates, Ltd                 Texas            174,000       174,000           596,000        924,000       (128,000)      796,000

Honeysuckle Court               Vidor,
Associates, Ltd.                Texas            339,000       339,000         1,165,000      1,780,000       (258,000)    1,522,000

Klimpel Manor,                  Fullerton,
Ltd                             California     1,774,000     1,774,000         1,962,000      3,576,000       (543,000)    3,033,000

Lamesa Seniors                  Lamesa,
Community, Ltd.                 Texas            143,000       143,000           673,000        818,000       (133,000)      685,000

Laredo Heights                  Navasota,
Apartments Ltd.                 Texas            225,000       225,000           995,000      1,350,000       (138,000)    1,212,000

Mountainview                    North
Apartments                      Wilkesboro,
Limited                         North
Partnership                     Carolina         195,000       195,000           998,000      1,211,000       (292,000)      919,000

Palestine Seniors               Palestine,
Community, Ltd.                 Texas            225,000       225,000         1,128,000      1,385,000       (198,000)    1,187,000

Pecan Grove
Limited                         Forrest City,
Partnership                     Arkansas         240,000       240,000         1,114,000      1,401,000       (312,000)    1,089,000

Pioneer Street                  Bakersfield,
Associates                      California     2,222,000     2,222,000         1,883,000      4,087,000       (729,000)    3,358,000

Sidney Apartments
I, Limited                      Sidney,
Partnership                     Nebraska         530,000       530,000           463,000      1,419,000       (138,000)    1,281,000

Southcove                       Orange Cove,
Associates                      California     2,000,000     2,000,000         1,532,000      3,445,000       (626,000)    2,819,000

Walnut Turn                     Buna,
Associates, Ltd.                Texas            188,000       188,000           690,000      1,015,000       (143,000)      872,000
                                             ------------  -----------       ------------  -------------   ------------ ------------
                                             $12,033,000   $12,033,000       $27,277,000   $ 41,579,000    $(5,779,000) $ 35,800,000
                                             ============  ===========       ============  =============   ============ ============
</TABLE>


                                       46
<PAGE>



WNC Housing Tax Credit Fund IV, L.P., Series 2
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2000
<TABLE>
<CAPTION>




                                   ----------------------------------------------------------------------------------
                                                         For the year ended December 31, 2000(Restated)
                                   ----------------------------------------------------------------------------------
                                                                             Year                     Estimated
                                                         Net Income       Investment                  Useful Life
         Partnership Name             Rental Income        (loss)          Acquired       Status      (Years)
---------------------------------------------------------------------------------------------------------------------
<S>                                        <C>               <C>                    <C>     <C>           <C>
Apartment Housing of East
Brewton, Ltd.                               $   91,000       $  (78,000)            1998    Completed       40 Years

Autumn Trace Associates, Ltd.                  204,000          (50,000)            1994    Completed     27.5 Years

Broken Bow Apartments I, Limited
Partnership                                     43,000         (111,000)            1996    Completed       40 Years

Candleridge Apartments of Waukee
L.P. II                                        120,000          (10,000)            1995    Completed     27.5 Years

Chadwick Limited Partnership                   188,000          (62,000)            1994    Completed       50 Years

Comanche Retirement Village, Ltd.
                                                68,000          (15,000)            1994    Completed       30 Years

Crossings II Limited Dividend
Housing Association Limited
Partnership                                    665,000         (140,000)            1997    Completed       40 Years

EW, a Wisconsin Limited
Partnership                                     99,000          (31,000)            1994    Completed     27.5 Years

Garland Street Limited Partnership
                                                66,000          (29,000)            1994    Completed     27.5 Years

Hereford Seniors Community, Ltd.
                                                93,000           (5,000)            1995    Completed       40 Years

Hickory Lane Associates, Ltd                   115,000          (16,000)            1995    Completed     27.5 Years

Honeysuckle Court Associates, Ltd.
                                               194,000          (23,000)            1995    Completed     27.5 Years

Klimpel Manor, Ltd                             362,000          (74,000)            1994    Completed       40 Years

Lamesa Seniors Community, Ltd.
                                                81,000          (11,000)            1994    Completed       40 Years

Laredo Heights Apartments Ltd.                 146,000           (3,000)            1996    Completed       45 Years

Mountainview Apartments Limited
Partnership                                     93,000          (13,000)            1994    Completed       40 Years

Palestine Seniors Community, Ltd.
                                               142,000            5,000             1994    Completed       40 Years
</TABLE>

                                       47
<PAGE>



WNC Housing Tax Credit Fund IV, L.P., Series 2
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2000
<TABLE>
<CAPTION>


                                   ----------------------------------------------------------------------------------
                                                         For the year ended December 31,1999(Restated)
                                   ----------------------------------------------------------------------------------
                                                                             Year                     Estimated
                                                         Net Income       Investment                  Useful Life
         Partnership Name             Rental Income        (loss)          Acquired       Status      (Years)
---------------------------------------------------------------------------------------------------------------------
<S>                                            <C>              <C>                 <C>     <C>           <C>
Pecan Grove Limited Partnership                120,000          (42,000)            1994    Completed     27.5 Years

Pioneer Street Associates                      482,000          (54,000)            1995    Completed     27.5 Years

Sidney Apartments I, Limited                    62,000          (47,000)
Partnership                                                                         1996    Completed       40 Years

Southcove Associates                           213,000         (109,000)            1994    Completed     27.5 Years

Walnut Turn Associates, Ltd.                    90,000          (29,000)            1995    Completed     27.5 Years
                                           -----------      ------------
                                           $ 3,737,000      $  (947,000)
                                           ===========      ============
</TABLE>



                                       48

<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 2

By:    WNC & Associates, Inc.       General Partner

By: /s/ Wilfred N. Cooper, Sr.
    --------------------------
Wilfred N. Cooper, Sr.,
Chairman and Chief Executive Officer of WNC & Associates, Inc.

Date:  July 12, 2002


By: /s/ Thomas J. Riha
    ------------------
Thomas J. Riha
Vice-President - Chief Financial Officer of WNC & Associates, Inc.

Date:  July 12, 2002



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, Jr.
   --------------------------
Wilfred N. Cooper, Jr., President and Director of WNC & Associates, Inc.

Date:  July 12, 2002


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

Date:  July 12, 2002



                                       49