FORM 10-K/A
                                 AMENDMENT NO. 1

                       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 December 31, 1998

                                       OR

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


                        For the transition period from to

                         Commission file number: 0-26048

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

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


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

                                 (714) 662-5565

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


                                      NONE

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

                      UNITS OF LIMITED PARTNERSHIP INTEREST

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

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


                                       1
<PAGE>


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

                                  INAPPLICABLE


                       DOCUMENTS INCORPORATED BY REFERENCE

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

                                      NONE


















                                      2

<PAGE>

PART I.

Item 1.  Business

Organization

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

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

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

Description of Business

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

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

                                       3
<PAGE>


As of December 31,  1998,  the  Partnership  had  invested in  twenty-one  Local
Limited  Partnerships.  Each of these Local Limited  Partnerships owns a Housing
Complex  that is eligible  for the federal Low Income  Housing  Credit.  Certain
Local Limited  Partnerships may also benefit from government  programs promoting
low- or moderate-income housing.

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

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

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

Item 2.  Properties

Through its investments in Local Limited  Partnerships,  the  Partnership  holds
limited  partnership  interests in the Housing  Complexes.  The following  table
reflects the status of the twenty-one  Housing Complexes as of December 31, 1998
and for the periods indicated:

                                       4
<PAGE>
<TABLE>
<CAPTION>
                                    ------------------------------------------------------------------------------------------------
                                                                      As of December 31, 1998
                                    ------------------------------------------------------------------------------------------------
                                                                    Partnership's Total  Amount of    Estimated Low  Encumbrances of
Partnership                    General Partner    Number     Occu-  Investment in Local  Investment   Income Housing Local Limited
Name            Location       Name               of Units   pancy  Limited Partnerships Paid to Date  Credits       Partnerships
------------------------------------------------------------------------------------------------------------------------------------
<S>             <C>           <C>                       <C>    <C>    <C>              <C>          <C>            <C>

Alpine Manor,   Alpine,       1600 Capital Company,
L.P.            Texas         Inc.                      36      94%   $  195,000       $  195,000   $   394,000    $   920,000

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

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

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

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

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

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

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

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

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

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

Madisonville    Madisonville, Jean Johnson              32     100%      174,000          174,000       375,000        905,000
Manor Senior    Texas
Citizens
Complex, Ltd.
</TABLE>
                                       5

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

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

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

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

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

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

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

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

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

<PAGE>

<TABLE>
<CAPTION>

                                    --------------------------------------------
                                        For the year ended December 31, 1998
                                    --------------------------------------------
                                                      Net     Low Income Housing
                                         Rental       Income  Credits Allocated
Partnership Name                         Income       (loss)  to  Partnership
--------------------------------------------------------------------------------
<S>                                 <C>            <C>                  <C>

Alpine Manor, L.P.                  $   104,000    $  (19,000)             99%

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Yantis Housing, Ltd.                     73,000       (11,000)             99%
                                      ---------     ---------
                                   $  3,122,000    $ (799,000)
                                      =========     =========

</TABLE>

                                       7
<PAGE>


Item 3.  Legal Proceedings

NONE.

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

NONE.

PART II.

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

Item 5a.

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

(b)  At December 31, 1998, there were 727 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 1998.

Item 5b.

NOT APPLICABLE

Item 6.  Selected Financial Data

Selected  balance  sheet  information  for the  Partnership  is as follows as of
December 31:
<TABLE>
<CAPTION>

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

ASSETS
<S>                             <C>               <C>              <C>                <C>              <C>
Cash and cash equivalents       $   389,536       $   778,448      $   997,025        $ 1,410,867      $  2,107,761
Investments in limited
 partnerships, net                4,495,621         4,976,247        5,771,116          6,928,034         7,852,303
Due from affiliate                        -                 -            9,020                  -           409,286
Other assets                              -             3,000            6,986             16,239            21,900
                                  ---------         ---------        ---------          ---------        ----------
                                $ 4,885,157       $ 5,757,695      $ 6,784,147        $ 8,355,140      $ 10,391,250
                                  =========         =========        =========          =========        ==========


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

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

                                       8
<PAGE>

Selected  results  of  operations,  cash  flows  and other  information  for the
Partnership are as follows for the years ended December 31:
<TABLE>
<CAPTION>

                                     1998              1997              1996              1995              1994
                                     ----              ----              ----              ----              ----
Income(loss) from
<S>                            <C>               <C>             <C>                 <C>               <C>
 operations                    $   (126,723)     $    (62,968)   $     (30,845)      $    (17,817)     $     17,315
Equity in losses from
 limited partnerships              (728,078)         (764,430)      (1,023,557)          (727,986)         (413,316)
                                  ---------         ---------       ----------          ---------         ---------
Net loss                       $   (854,801)     $   (827,398)   $  (1,054,402)      $   (745,803)     $   (396,001)
                                  =========         =========       ==========          =========         =========
Net loss allocated to:
        General partner        $     (8,548)     $     (8,274)   $     (10,544)      $     (7,458)     $     (3,960)
                                  =========         =========       ==========          =========         =========
        Limited partners       $   (846,253)     $   (819,124)   $  (1,043,858)      $   (738,345)     $   (392,041)
                                  =========         =========       ==========          =========         =========
Net loss per limited
 partner unit                  $     (84.63)     $     (81.91)   $     (104.39)      $     (73.83)     $     (50.35)
                                  =========         =========       ==========          =========         =========
Outstanding weighted
 limited partner units               10,000            10,000           10,000             10,000             7,787
                                  =========         =========       ==========          =========         =========

                                     1998              1997              1996              1995              1994
                                     ----              ----              ----              ----              ----
Net cash provided by
 (used in):
     Operating activities      $    (54,089)     $    (51,546)   $      22,420       $     55,437      $     46,649
     Investing activities          (334,823)         (170,284)        (437,806)          (914,830)       (5,053,552)
     Financing activities                 -             3,253            1,544            162,499         7,113,635
                                  ---------         ---------       ----------          ---------         ---------
Net change in cash
 and cash equivalents              (388,912)         (218,577)        (413,842)          (696,894)        2,106,732
Cash and cash
 equivalents,
 beginning of period                778,448           997,025        1,410,867          2,107,761             1,029
                                  ---------         ---------        ---------          ---------         ---------
Cash and cash
 equivalents, end of
 period                        $    389,536      $    778,448    $     997,025       $  1,410,867      $  2,107,761
                                  =========         =========        =========          =========         =========

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

                                     1998              1997              1996              1995              1994
                                     ----              ----              ----              ----              ----
Federal                        $        142      $        143    $         136       $        101      $         36
State                                     -                 -                -                  -                 -
                                  ---------         ---------        ---------          ---------         ---------
Total                          $        142      $        143    $         136       $        101      $         36
                                  =========         =========        =========          =========         =========

</TABLE>

                                       9
<PAGE>

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

Financial Condition

The Partnership's assets at December 31, 1998 consisted primarily of $390,000 in
cash and aggregate  investments in the twenty-one Local Limited  Partnerships of
$4,496,000.  Liabilities at December 31, 1998 were  $132,000,  of which $102,000
was accrued annual management fees, $5,000 was for expenses paid by an affiliate
of the General  Partner due to the General  Partner or affiliate and $25,000 was
payables to limited partnerships.

Results of Operations

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

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

Cash Flows

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

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

The Partnership  expects its future cash flows,  together with its net available
assets at December 31, 1998, to be  sufficient to meet all currently  forseeable
future cash requirements.

Impact of Year 2000

WNC & Associates, Inc.

Status of Readiness

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

                                       10
<PAGE>

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

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

Costs to Address Year 2000 Issues

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

Risk of Year 2000 Issues

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

Local Limited Partnerships

Status of Readiness

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

                                       11
<PAGE>

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

Costs to Address Year 2000 Issues

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

Risk of Year 2000 Issues

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

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

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk

NOT APPLICABLE

Item 8.  Financial Statements and Supplementary Data






                                       12
<PAGE>









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

                              FINANCIAL STATEMENTS

              For The Years Ended December 31, 1998, 1997 and 1996

                                      with

               REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS




















                                       13


<PAGE>

               REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS


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


We have audited the  accompanying  balance  sheet of WNC Housing Tax Credit Fund
IV, L.P., Series 1 (a California Limited  Partnership) (the "Partnership") as of
December 31, 1998, and the related  statements of operations,  partners'  equity
(deficit) and cash flows for the year then ended. These financial statements are
the  responsibility of the Partnership's  management.  Our  responsibility is to
express  an  opinion  on  these  financial  statements  based  on our  audit.  A
significant portion of the financial  statements of the limited  partnerships in
which the  Partnership is a limited partner were audited by other auditors whose
reports  have been  furnished  to us. As  discussed  in Note 2 to the  financial
statements, the Partnership accounts for its investments in limited partnerships
using the equity method. The portion of the Partnership's  investment in limited
partnerships  audited by other auditors  represented  61% of the total assets of
the Partnership at December 31, 1998. 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 audit in accordance with generally accepted auditing standards.
Those standards  require that we plan and perform the audit to obtain reasonable
assurance   about  whether  the  financial   statements  are  free  of  material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We  believe  that our audit and the  reports  of the  other  auditors  provide a
reasonable basis for our opinion.

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



                                                   BDO SEIDMAN, LLP

Orange County, California
April 5, 1999









                                       14
<PAGE>






                          INDEPENDENT AUDITORS' REPORT



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


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

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

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



                                                      CORBIN & WERTZ



Irvine, California
April 23, 1998, except for Notes 2 and 6
which are dated as of December 4, 1998













                                       15
<PAGE>


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

                                 BALANCE SHEETS

                           December 31, 1998 and 1997


                                                1998                    1997
                                                ----                    ----
ASSETS

Cash and cash equivalents              $        389,536      $         778,448
Investments in limited
 partnerships (Notes 2 and 6)                 4,495,621              4,976,247
Other assets                                          -                  3,000
                                           ------------          -------------
                                       $      4,885,157      $       5,757,695
                                           ============          =============

LIABILITIES AND PARTNERS' EQUITY
 (DEFICIT)

Liabilities:
 Payables to limited partnerships
  (Notes 4 and 6)                      $         25,301      $          84,303
 Accrued fees and advances due
  to General Partner and
  affiliate (Note 3)                            106,500                 65,235
                                           ------------          -------------
         Total liabilities                      131,801                149,538
                                           ------------          -------------
Commitments and contingencies
 (Note 6)                                             -                      -

Partners' equity (deficit):
 General partner                                (52,367)               (43,819)
 Limited partners (10,000 units
  authorized - 10,000 units
  outstanding at December 31, 1998
  and 1997)                                   4,805,723              5,651,976
                                           ------------          -------------
         Total partners' equity               4,753,356              5,608,157
                                           ------------          -------------
                                       $      4,885,157      $       5,757,695
                                           ============          =============



                 See accompanying notes to financial statements
                                       16

<PAGE>

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

                            STATEMENTS OF OPERATIONS

              For The Years Ended December 31, 1998, 1997 and 1996


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

Interest income                   $        27,708  $     25,676   $     51,654
                                        ---------     ---------      ---------

Operating expenses:
 Amortization                              31,369        31,416         31,032
 Asset management fees (Note 3)            40,000        40,000         40,000
 Other                                     83,062        17,228         11,467
                                        ---------     ---------      ---------
   Total operating expenses               154,431        88,644         82,499
                                        ---------     ---------      ---------
Loss from operations                     (126,723)      (62,968)       (30,845)
Equity in losses from limited
 partnerships (Note 2)                   (728,078)     (764,430)    (1,023,557)
                                        ---------     ---------      ---------
Net loss                          $      (854,801)  $  (827,398)  $ (1,054,402)
                                        =========     =========      =========
Net loss allocated to:
    General partner               $        (8,548)  $    (8,274)  $    (10,544)
                                        =========     =========      =========

    Limited partners              $      (846,253)  $  (819,124)  $ (1,043,858)
                                        =========     =========      =========
Net loss per limited
 partner unit                     $        (84.63)  $    (81.91)  $    (104.39)
                                        =========     =========      =========

Outstanding weighted limited
 partner units                             10,000        10,000         10,000
                                        =========     =========      =========





                 See accompanying notes to financial statements
                                       17
<PAGE>


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

                    STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

              For The Years Ended December 31, 1998, 1997 and 1996


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

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

Net loss                             (10,544)       (1,043,858)     (1,054,402)
                                 -----------       -----------     -----------

Partners' equity (deficit)
 at December 31, 1996                (35,545)        6,471,100       6,435,555

Net loss                              (8,274)         (819,124)       (827,398)
                                 -----------       -----------     -----------

Partners' equity (deficit)
 at December 31, 1997                (43,819)        5,651,976       5,608,157

Net loss                              (8,548)         (846,253)       (854,801)
                                 -----------       -----------     -----------

Partners' equity (deficit)
 at December 31, 1998        $       (52,367)   $    4,805,723   $   4,753,356
                                 ===========       ===========     ===========













                 See accompanying notes to financial statements
                                       18
<PAGE>

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

                            STATEMENTS OF CASH FLOWS

              For The Years Ended December 31, 1998, 1997 and 1996
<TABLE>
<CAPTION>

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

Cash flows from operating activities:
<S>                                                <C>                   <C>                   <C>
 Net loss                                          $      (854,801)      $     (827,398)       $    (1,054,402)
 Adjustments to reconcile net loss to net cash
  (used in) provided by operating activities:
   Amortization                                             31,369               31,416                 31,032
   Equity in losses from limited partnerships              728,078              764,430              1,023,557
   Change in accrued fees and expenses due
    to General Partner and affiliates                       41,265              (30,000)                25,000
   Change in receivable from affiliate                           -                9,020                 (9,020)
   Change in other assets                                        -                  986                  6,253
                                                        ----------           ----------             ----------

 Net cash (used in) provided by
  operating activities                                     (54,089)             (51,546)                22,420
                                                        ----------           ----------             ----------

Cash flows from investing activities:
 Investments in limited partnerships, net                 (335,059)            (172,307)              (442,379)
 Capitalized acquisition costs and fees                     (5,789)              (5,502)                (5,502)
 Distributions from limited partnerships                     6,025                7,525                 10,075
                                                        ----------           ----------             ----------

 Net cash used in investing activities                    (334,823)            (170,284)              (437,806)
                                                        ----------           ----------             ----------

Cash flows from financing activities:
 Changes from advances from general partner
  and affiliates for:
   Other                                                         -                3,253                  1,544
                                                        ----------           ----------             ----------

  Net cash provided by financing activities                      -                3,253                  1,544
                                                        ----------           ----------             ----------

Net decrease in cash and cash equivalents                 (388,912)            (218,577)              (413,842)

Cash and cash equivalents, beginning of year               778,448              997,025              1,410,867
                                                        ----------           ----------             ----------

Cash and cash equivalents, end of year                $    389,536       $      778,448        $       997,025
                                                        ==========           ==========             ==========

SUPPLEMENTAL DISCLOSURE OF CASH
 FLOW INFORMATION:
    Taxes paid                                        $        800       $          800        $           800
                                                        ==========           ==========             ==========
</TABLE>
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING AND INVESTING ACTIVITIES:
    During the year ended December 31, 1998, the Partnership  incurred,  but did
    not pay, $22,998 in payables to a limited partnership.

                 See accompanying notes to financial statements
                                       19
<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

              For The Years Ended December 31, 1998, 1997 and 1996



NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

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

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

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

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

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

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


                                       20
<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

              For The Years Ended December 31, 1998, 1997 and 1996


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued


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 in the transferability of Units, and it
is unlikely that a market for Units will develop.  All management decisions will
be made by the General Partner.

Method of Accounting for Investments in Limited Partnerships

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

Losses  from  limited  partnerships  allocated  to the  Partnership  will not be
recognized to the extent that the  investment  balance  would be adjusted  below
zero.

Offering Expenses

Offering  expenses consist of underwriting  commissions,  legal fees,  printing,
filing and  recordation  fees,  and other costs  incurred  with selling  limited
partnership  interests in the  Partnership.  The General Partner is obligated to
pay all  offering  and  organization  costs in  excess of 15%  (including  sales
commissions) of the total offering proceeds.  Offering expenses are reflected as
a reduction of limited partners' capital and amounted to $606,705 as of December
31, 1998 and 1997.








                                       21
<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

              For The Years Ended December 31, 1998, 1997 and 1996

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued

Use of Estimates

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

Cash and Cash Equivalents

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

Concentration of Credit Risk

At December  31, 1998 and 1997,  the  Partnership  maintained  cash  balances at
certain  financial  institutions  in excess  of the  maximum  federally  insured
amounts.

Net Loss Per Limited Partner Unit

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

Reporting Comprehensive Income

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

Reclassifications

Certain  prior  year  balances  have been  reclassified  to  conform to the 1998
presentation.

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

              For The Years Ended December 31, 1998, 1997 and 1996

NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS

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

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

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

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

During 1998, the investment accounts in certain Local Limited  Partnerships have
reached a zero balance.  Consequently,  the Partnership's share of losses during
the year ended  December 31, 1998  amounting to  approximately  $59,000 have not
been recognized.

Following is a summary of the equity method activity of the investments in Local
Limited Partnerships for the years ended December 31:

                                                  1998                1997
                                                  ----                ----

Investments per balance sheet,
 beginning of year                      $      4,976,247    $       5,771,116
Capital contributions to limited
 partnerships, net                               276,057                    -
Distributions paid                                (6,025)              (7,525)
Capitalized acquisition fees and costs             5,789                5,502
Equity in losses from limited
 partnerships                                   (728,078)            (764,430)
Amortization of paid acquisition
 fees and costs                                  (28,369)             (28,416)
                                         ---------------     ----------------

Investments per balance sheet,
 end of year                            $      4,495,621    $       4,976,247
                                         ===============     ================


                                       23
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

              For The Years Ended December 31, 1998, 1997 and 1996

NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued

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

                        COMBINED CONDENSED BALANCE SHEETS

                                                1998                    1997
                                                ----                    ----
ASSETS

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

LIABILITIES

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

                                            28,669,000               27,746,000
                                       ---------------         ----------------

PARTNERS' CAPITAL

WNC Housing Tax Credit Fund, L.P.            3,720,000                4,159,000
Other partners                               1,238,000                1,238,000
                                       ---------------         ----------------

                                             4,958,000                5,397,000
                                       ---------------         ----------------

                                      $     33,627,000        $      33,143,000
                                       ===============         ================



                                       24
<PAGE>
                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 1
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

              For The Years Ended December 31, 1998, 1997 and 1996


NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued

                   COMBINED CONDENSED STATEMENTS OF OPERATIONS

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

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

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

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

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


                                       25

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

              For The Years Ended December 31, 1998, 1997 and 1996


NOTE 3 - RELATED PARTY TRANSACTIONS

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

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

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

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

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

         An affiliate of the General Partner  provides  management  services for
         one of the properties in the limited  partnerships.  Management fees of
         $38,348 and $9,519 were earned by the  affiliate  during 1998 and 1997,
         respectively.

The  accrued  fees and  advances  due to General  Partner and  affiliates  as of
December 31, 1998 and 1997 consist of the following:

                                                  1998                 1997
                                                  ----                 ----
Reimbursement for expenses paid by an
    affiliate of the General Partner.   $          4,833     $           3,568

Asset management fee payable                     101,667                61,667
                                         ---------------      ----------------

                                        $        106,500     $          65,235
                                         ===============      ================


                                       26
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

              For The Years Ended December 31, 1998, 1997 and 1996

NOTE 4 - PAYABLES TO LIMITED PARTNERSHIPS

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

NOTE 5 - INCOME TAXES

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

NOTE 6 - COMMITMENTS AND CONTINGENCIES

In October 1998, the Partnership  acquired a 99% limited partner  interest in an
additional  limited  partnership  which  committed the Partnership to additional
contributions of approximately  $276,000, of which $253,000 has been contributed
by the Partnership as of December 31, 1998.













                                       27
<PAGE>



Item  9.  Changes  in and  Disagreements  With  Accountants  on  Accounting  and
Financial Disclosure

(a)(1)

(i)      On February 16, 1999 Corbin & Wertz,  Irvine,  California was dismissed
         as  the  Partnership's principal  independent accountant.

(ii)     During the last two fiscal  years of the  Partnership,  the  reports of
         Corbin & Wertz  respecting the financial  statements of the Partnership
         did not contain an adverse opinion or a disclaimer of opinion, nor were
         any such reports  qualified or modified as to uncertainty,  audit scope
         or accounting principles.

(iii)    The decision  to  change  accountants  was  approved  by  the  board of
         directors  of  WNC  &  Associates,  Inc., the general  partner  of  the
         Partnership.

(iv)     During the last two fiscal years and  subsequent  interim period of the
         Partnership there were no disagreements  between Corbin & Wertz and the
         Partnership  on any  matter  of  accounting  principles  or  practices,
         financial statement  disclosure,  or auditing scope or procedure of the
         nature  described  in Item  304(a)(1)(iv)  of  Securities  and Exchange
         Commission Regulation S-K.

(v)      During the last two fiscal years and  subsequent  interim period of the
         Partnership  there were no reportable events of the nature described in
         Item 304(a)(1)(v) of Securities and Exchange Commission Regulation S-K.

(a)(2)

On December 16, 1998, BDO Seidman,  LLP,  Costa Mesa,  California was engaged as
the Partnership's principal independent  accountant.  During the last two fiscal
years and subsequent interim period of the Partnership,  the Partnership did not
consult BDO Seidman,  LLP regarding (i) either,  the  application  of accounting
principles to a specified  transaction;  or the type of audit opinion that might
be rendered on the Partnership's  financial statements,  or (ii) any matter that
was  the  subject  of a  disagreement  (as  defined  in  Item  304(a)(1)(iv)  of
Securities and Exchange Commission Regulation S-K) or was a reportable event (as
defined in Item  304(a)(1)(v) of Securities and Exchange  Commission  Regulation
S-K).

PART III

Item 10. Directors and Executive Officers of the Registrant

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

Directors and Executive Officers of WNC & Associates, Inc.

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

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

                                       28

<PAGE>


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

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

David N. Shafer, age 46, is Senior Vice President, a Director,  General Counsel,
and a member of the  Acquisition  Committee  of WNC &  Associates,  Inc.,  and a
Director and Secretary of WNC  Management,  Inc. Mr. Shafer has been involved in
real estate  investment and acquisition  activities since 1984. Prior to joining
the Sponsor in 1990, he was  practicing  law with a specialty in real estate and
taxation.  Mr. Shafer is a Director and President of the  California  Council of
Affordable  Housing  and a member  of the State Bar of  California.  Mr.  Shafer
graduated  from the  University  of  California  at Santa Barbara in 1978 with a
Bachelor of Arts degree, from the New England School of Law in 1983 with a Juris
Doctor  degree (cum laude) and from the  University  of San Diego in 1986 with a
Master of Law degree in Taxation.

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

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

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

                                       29
<PAGE>


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

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

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

Item 11.  Executive Compensation:

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

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

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

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

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

                                       30
<PAGE>


Item 12. Security Ownership of Certain Beneficial Owners and Management

(a)      Security Ownership of Certain Beneficial Owners

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

(b)      Security Ownership of Management

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

(c)      Changes in Control

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

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

Item 13.  Certain Relationships and Related Transactions

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

PART IV.

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

Financial Statements

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

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

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

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


                                       31
<PAGE>

(b)      Reports on Form 8-K.

1.       A  Form 8-K  dated  February 3, 1999  was filed  on  February  10, 1999
         reporting the dismissal of the  Partnership's  former auditors and  the
         engagement of new auditors.  No financial statements were included.

(c)      Exhibits.

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

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

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

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

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

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

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

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

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

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

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

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

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

                                       32

<PAGE>


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

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

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

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

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

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

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

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

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

(d)      Financial  statement  schedule  follows,  as set forth in subsection
         (a)(2) hereof.


                                       33
<PAGE>


               Report of Independent Certified Public Accounts on
                          Financial Statement Schedule




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


The audit  referred to in our report  dated April 5, 1999,  relating to the 1998
financial  statements  of WNC Housing  Tax Credit  Fund IV,  L.P.  Series 1 (the
"Partnership"),  which is  contained  in Item 8 of this Form 10-K,  included the
audit of the accompanying  financial statement schedule. The financial statement
schedule  is  the   responsibility   of  the   Partnership's   management.   Our
responsibility  is to express an opinion on this  financial  statement  schedule
based upon our audit.

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


                                                   BDO SEIDMAN, LLP



Orange County, California
April 5, 1999












                                       34


<PAGE>


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

                                   -------------------------------------------------------------------------------------------------
                                                                        As of December 31, 1998
                                   -------------------------------------------------------------------------------------------------
                                              Partnership's Total   Amount of    Encumbrances of                             Net
                                              Investment in Local   Investment   Local Limited  Property and  Accumulated    Book
Partnership Name                    Location  Limited Partnerships  Paid to Date Partnerships   Equipment     Depreciation   Value
------------------------------------------------------------------------------------------------------------------------------------

Alpine Manor, L.P.                  Alpine,
<S>                                              <C>             <C>         <C>            <C>            <C>         <C>
                                    Texas        $  195,000      $  195,000  $   920,000    $  1,167,000   $  134,000  $  1,033,000


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

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

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

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

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

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

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

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

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

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

                                       35

<PAGE>

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

                                    ------------------------------------------------------------------------------------------------
                                                                        As of December 31, 1998
                                    ------------------------------------------------------------------------------------------------
                                              Partnership's Total  Amount of     Encumbrances of                             Net
                                              Investment in Local  Investment    Local Limited  Property and  Accumulated    Book
 Partnership Name                   Location  Limited Partnerships Paid to Date  Partnerships   Equipment     Depreciation   Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                                             <C>             <C>          <C>            <C>             <C>         <C>

Madisonville Manor Senior Citizens  Madisonville,
Complex, Ltd.                       Texas       $   174,000     $   174,000  $   905,000    $  1,150,000    $   72,000  $ 1,078,000

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

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

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

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

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

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

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

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

Yantis Housing, Ltd.                Yantis,
                                    Texas           145,000         145,000      633,000         837,000       101,000      736,000
                                                  ---------       ---------   ----------      ----------     ---------   ----------

                                                $ 7,454,000     $ 7,429,000 $ 26,684,000   $  36,188,000  $  4,545,000 $ 31,643,000
                                                  =========       =========   ==========      ==========     =========   ==========
</TABLE>

                                       36

<PAGE>


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

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


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

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

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

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

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

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

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

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

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

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

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

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

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

Pampa Manor, L.P.               104,000        (15,000)       1994    Completed       40

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

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

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

</TABLE>

                                       37
<PAGE>


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

                     ----------------------------------------------------------------------------
                                                 For the year ended December 31, 1998
                     ----------------------------------------------------------------------------
                              Rental                   Year Investment           Estimated Useful
Partnership Name              Income         Net Loss     Acquired    Status     Life (Years)
-------------------------------------------------------------------------------------------------
<S>                        <C>             <C>               <C>     <C>              <C>
Vernon Manor, L.P.              84,000         (31,000)      1994    Completed        40

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

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

                                       38

<PAGE>


Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  Registrant  has duly  caused  this report to be signed on its
behalf by the undersigned, thereunto duly authorized.


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


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

By:  WNC & Associates, Inc., General Partner



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

Date: July 27, 1999


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

Date: July 27, 1999


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

Date: July 27, 1999

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


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

Date: July 27, 1999



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

Date: July 27, 1999


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

Date: July 27, 1999





                                     39