FORM 10-K

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   (Mark One)

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

                    For the fiscal year ended March 31, 2002

                                       OR

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

             For the transition period from __________ to __________

                         Commission file number: 0-26048


                  WNC HOUSING TAX CREDITS 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.

                                       1
<PAGE>


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 93.65% of the
outstanding  stock  of  Associates.   Wilfred  N.  Cooper,   Jr.,  President  of
Associates,  owns 3.01% of the outstanding stock of Associates.  The business of
the Partnership is conducted  primarily through Associates as neither TCP IV nor
the Partnership have employees of their own.

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

Description of Business

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

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

                                       3
<PAGE>


As of March 31, 2002, the Partnership  had invested in twenty-one  Local Limited
Partnerships.  Each of these Local Limited  Partnerships  owns a Housing Complex
that is eligible  for the  federal  Low Income  Housing  Credit.  Certain  Local
Limited Partnerships may also benefit from government programs promoting low- or
moderate-income housing.

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

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

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

Item 2.  Properties

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

                                       4
<PAGE>


    PAGE>



<TABLE>
<CAPTION>

                                                                                -------------------------   ------------------------
                                                                                  As of March 31, 2002       As of December 31, 2001
                                                                                -------------------------   ------------------------
                                                           Partnership's                                    Estimated   Encumbrances
                                                          Total Investment   Amount of                      Low Income      of Local
                                                           In Local Limited  Investment  Number              Housing        Limited
 Partnership Name      Location    General Partner Name    Partnerships    Paid to Date  Of Units Occupancy  Credits    Partnerships
------------------------------------------------------------------------------------------------------------------------------------
<S>                    <C>          <C>                   <C>           <C>                 <C>      <C>  <C>           <C>
Alpine Manor,          Alpine,      1600 Capital Company,
L.P.                   Texas        Inc.                  $  195,000    $   195,000         36       100% $    394,000  $    909,000

Baycity Village                     Green Companies
Apartments, Limited    Baytown,     Development
Partnership            Texas        Group, Inc.              301,000        301,000         62        97%      629,000     1,455,000

Beckwood Manor Seven   Marianna,    Phillips Development
Limited Partnership    Arkansas     Corporation              307,000        307,000         42        98%      636,000     1,383,000

Briscoe Manor Limited  Galena,      McKnight &
Partnership            Maryland     Decoster, Inc.           308,000        308,000         31       100%      648,000     1,481,000

Evergreen
Four Limited           Maynard,     Phillips Development
Partnership            Arkansas     Corporation              195,000        195,000         24        88%      402,000       865,000

Fawn Haven Limited     Manchester,  Georg E. Maharg and
Partnership            Ohio         Maharg Realty, Inc.      167,000        167,000         28        96%      376,000       851,000

Fort Stockton          Ft.Stockton, 1600 Capital
Manor, L.P.            Texas        Company,Inc.             224,000        224,000         36       100%      453,000     1,046,000

Hidden
Valley Limited         Gallup, New  Alan Deke
Partnership            Mexico       Noftsker                 412,000        412,000         40       100%      801,000     1,477,000

HOI Limited                         North
Partnership Of         Lenoir,      Housing Opportunities,
Lenoir                 Carolina     Inc.                     198,000        198,000         34       100%      400,000       539,000

Indian Creek Limited   Bucyrus,     Georg E.
Partnership            Ohio         Maharg                   306,000        306,000         48        85%      637,000     1,462,000

Laurel                 San Luis     San Luis Obispo
Creek                  Obispo,      Non-Profit
Apartments             California   Housing Corp.          1,030,000      1,030,000         24       100%    2,103,000       611,000

Madisonville
Manor Senior
Citizens               Madisonville,
Complex, Ltd.          Texas        Jean Johnson             174,000        174,000         32        91%      375,000       898,000

</TABLE>

                                       5
<PAGE>





<TABLE>
<CAPTION>

                                                                                -------------------------   ------------------------
                                                                                  As of March 31, 2002       As of December 31, 2001
                                                                                -------------------------   ------------------------
                                                           Partnership's                                    Estimated   Encumbrances
                                                          Total Investment   Amount of                      Low Income      of Local
                                                           In Local Limited  Investment  Number              Housing        Limited
 Partnership Name      Location    General Partner Name    Partnerships    Paid to Date  Of Units Occupancy  Credits    Partnerships
------------------------------------------------------------------------------------------------------------------------------------
<S>                    <C>         <C>                    <C>           <C>                <C>       <C>  <C>           <C>
Mt. Graham             Safford,     Rural Housing,
Housing, Ltd.          Arizona      Inc.                     410,000        410,000         40        93%      788,000     1,400,000

Northside Plaza        Angleton,    Jean
Apartments, Ltd.       Texas        Johnson                  282,000        282,000         48        96%      607,000     1,354,000

Pampa Manor,           Pampa,       1600 Capital
L.P.                   Texas        Company,Inc.             180,000        180,000         32        91%      363,000       841,000

                                    Community Housing
                                    Assistance Program,
Regency                             Inc., a California
Court                  Monrovia,    Nonprofit
Partners               California   Corporation            1,692,000      1,690,000        115       100%    3,293,000     5,088,000

Sandpiper Square, a
Limited   North        Aulander,    I. Norwood
Partnership            Carolina     Stone                    219,000        219,000         24        92%      433,000       942,000

Seneca Falls East      Seneca       David R. Bacon
Apartments             Falls, New   and Frank
Company II, L.P.       York         Salvatore                270,000        270,000         32       100%      360,000       888,000

Vernon Manor,          Vernon,      1600 Capital Company,
L.P.                   Texas        Inc.                     177,000        177,000         28        96%      325,000       748,000

                                    Thomas E. Connelly, Jr.,
                       Calhoun      TEC Rental Properties
Waterford Place,       Falls,       Inc., Warren H.
a Limited              South        Abernathy, II and Solid
Partnership            Carolina     South, Inc.              272,000        272,000         32       100%      549,000     1,174,000

Yantis Housing,        Yantis,      Charles
Ltd.                   Texas        Cannon Jr.                145,000        145,000        24        92%      287,000       625,000
                                                          -----------   ------------       ----      ----- ------------ ------------
                                                          $ 7,464,000   $  7,462,000       812        96% $ 14,859,000  $ 26,037,000
                                                          ===========   ============       ===       ===== ===========  ============
</TABLE>
                                        6
<PAGE>


<TABLE>
<CAPTION>
                                             -----------------------------------------------------------------------
                                                              For the year ended December 31, 2001
                                             -----------------------------------------------------------------------
                                                                                                Low Income Housing
                                                                                                 Credits Allocated
                 Partnership Name                Rental Income             Net Loss               to Partnership
--------------------------------------------------------------------------------------------------------------------
<S>                                                  <C>                  <C>                        <C>
Alpine Manor, L.P.                                   $ 113,000            $ (19,000)                 99%

Baycity Village Apartments, Limited
Partnership                                            248,000              (51,000)                 99%

Beckwood Manor Seven Limited Partnership               148,000              (75,000)                 95%

Briscoe Manor Limited Partnership                      174,000              (64,000)                 99%

Evergreen Four Limited Partnership                      89,000              (37,000)                 95%

Fawn Haven Limited Partnership                          84,000              (24,000)                 99%

Fort Stockton Manor, L.P.                              123,000              (14,000)                 99%

Hidden Valley Limited Partnership                      176,000              (18,000)                 99%

HOI Limited Partnership Of Lenoir                      142,000              (26,000)                 99%

Indian Creek Limited Partnership                       145,000              (33,000)                 99%

Laurel Creek Apartments                                180,000               (4,000)                 99%

Madisonville Manor Senior Citizens
Complex, Ltd.                                          104,000              (12,000)                 99%

Mt. Graham Housing, Ltd.                               138,000              (69,000)                 99%

Northside Plaza Apartments, Ltd.                       151,000              (30,000)                 99%

Pampa Manor, L.P.                                       94,000              (27,000)                 99%

Regency Court Partners                                 657,000             (162,000)                 99%

Sandpiper Square, a Limited Partnership                 99,000              (17,000)                 99%

Seneca Falls East Apartments Company
II, L.P.                                               144,000              (27,000)               99.98%

Vernon Manor, L.P.                                      92,000               (4,000)                 99%

Waterford Place, a Limited Partnership                 125,000              (50,000)                 99%

Yantis Housing, Ltd.                                    73,000              (26,000)                 99%
                                                   -----------          ------------
                                                   $ 3,299,000          $  (789,000)
                                                   ===========          ============
</TABLE>
                                       7
<PAGE>

Item 3.  Legal Proceedings

NONE.

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

NONE.

PART II.
--------

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

Item 5a.

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

(b)  At March 31, 2002, there were 732 Limited Partners.

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

(d)  No unregistered  securities  were sold by the  Partnership  during the year
     ended March 31, 2002.

Item 5b.

NOT APPLICABLE

Item 6.  Selected Financial Data

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

                                                  March 31                              December 31
                              --------------------------------------------------  ------------------------
                                 2002         2001         2000         1999         1998         1997
                              -----------  -----------  -----------  -----------  -----------  -----------
<S>                         <C>          <C>          <C>          <C>          <C>          <C>
ASSETS

Cash and cash equivalents   $    277,292 $    312,214 $    310,214 $    341,350 $    389,536 $    778,448
Investments in limited
  partnerships, net            2,234,002    2,823,846    3,538,899    4,298,485    4,495,621    4,976,247
Due from affiliate                                  -       18,407            -            -            -
Other assets                                        -            -            -            -        3,000
                              -----------  -----------  -----------  -----------  -----------  -----------
                            $  2,511,294 $  3,136,060 $  3,867,520 $  4,639,835 $  4,885,157 $  5,757,695
                              ===========  ===========  ===========  ===========  ===========  ===========
LIABILITIES
Payables to limited                      $
partnerships                $      2,303        2,303 $      2,303 $     25,301 $     25,301 $     84,303
Accrued fees and expenses
  due to general partner
  and affiliates                 134,569      115,667      104,593       80,940      106,500       65,235

PARTNERS' EQUITY               2,374,422    3,018,090    3,760,624    4,533,594    4,753,356    5,608,157
                              -----------  -----------  -----------  -----------  -----------  -----------
                            $  2,511,294 $  3,136,060 $  3,867,520 $  4,639,835 $  4,885,157 $  5,757,695
                              ===========  ===========  ===========  ===========  ===========  ===========
</TABLE>

                                       8
<PAGE>


<TABLE>
<CAPTION>

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

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

<S>                     <C>           <C>         <C>          <C>          <C>          <C>          <C>
Loss from operations    $    (78,700) $   (76,146)$    (79,134)$    (33,750)$    (17,496)$   (126,723)$     (62,968)
Equity in losses of
limited
  partnerships              (564,968)    (666,388)    (693,836)    (186,012)    (185,500)    (728,078)     (764,430)
                          -----------  -----------  -----------   ----------   ----------   ----------   -----------
Net loss                $   (643,668) $  (742,534)$   (772,970)$   (219,762)$   (202,996)$   (854,801)$    (827,398)
                          ===========  ===========  ===========   ==========   ==========   ==========   ===========
Net loss allocated to:
  General Partner       $     (6,437) $    (7,425)$     (7,730)$     (2,198)$     (2,030)$     (8,548)$      (8,274)
                          ===========  ===========  ===========   ==========   ==========   ==========   ===========
   Limited Partners     $   (637,231) $  (735,109)$   (765,240)$   (217,564)$   (200,966)$   (846,253)$    (819,124)
                          ===========  ===========  ===========   ==========   ==========   ==========   ===========
Net loss per limited
  partner unit          $     (63.72) $    (73.51)$     (76.52)$     (21.76)$     (20.10)$     (84.63)$      (81.91)
                          ===========  ===========  ===========   ==========   ==========   ==========   ===========
Outstanding weighted
  limited partner units       10,000       10,000       10,000       10,000       10,000       10,000        10,000
                          ===========  ===========  ===========   ==========   ==========   ==========   ===========
</TABLE>
<TABLE>
<CAPTION>

                                  For the Years Ended              For the Three Months       For the Years Ended
                                        March 31                      Ended March 31              December 31
                          -------------------------------------   -----------------------   ------------------------
                             2002         2001         2000         1999         1998         1998          1997
                          -----------  -----------  -----------   ----------   ----------   ----------   -----------
<S>                     <C>          <C>          <C>          <C>          <C>          <C>          <C>
Net cash provided by
  (used in):
  Operating activities  $    (35,847)$    (18,169)$    (45,392)$    (52,186)$     (5,082)$    (54,089)$     (51,546)
  Investing activities           925       20,169       14,256        4,000        5,225     (334,823)     (170,284)
  Financing activities             -            -            -            -            -            -         3,253
                          -----------  -----------  -----------   ----------   ----------   ----------   -----------
Net change in cash
and
  cash equivalents           (34,922)      2,000       (31,136)     (48,186)        143      (388,912)     (218,577)

Cash and cash equivalents,
  beginning of period        312,214      310,214      341,350      389,536      778,448      778,448       997,025
                          -----------  -----------  -----------   ----------   ----------   ----------   -----------
Cash and cash equivalents,
  end of period         $    277,292 $    312,214 $    310,214  $   341,350  $   778,591  $   389,536  $    778,448
                          ===========  ===========  ===========   ==========   ==========   ==========   ===========
</TABLE>
<TABLE>
<CAPTION>

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

                                     2001            2000             1999             1998             1997
                                 -------------   --------------   -------------    -------------    -------------
<S>                            <C>             <C>              <C>              <C>              <C>
Federal                        $          145  $           149  $          146   $          142   $          143

State                                       -                -               -                -                -
                                 -------------   --------------   -------------    -------------    -------------
Total                          $          145  $           149  $          146   $          142   $          143
                                 =============   ==============   =============    =============    =============
</TABLE>

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

Forward Looking Statements

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

                                       9
<PAGE>


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

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

Financial Condition

The  Partnership's  assets at March 31, 2002 consisted  primarily of $277,000 in
cash and aggregate  investments in the twenty-one Local Limited  Partnerships of
$2,234,000.  Liabilities at March 31, 2002 were $137,000,  of which $133,000 was
accrued annual management fees, and $2,000 was payables to limited partnerships.

Results of Operations

Year  Ended  March  31,  2002  Compared  to  Year  Ended  March  31,  2001.  The
Partnership's  net  loss for the  year  ended  March  31,  2002 was  $(644,000),
reflecting  a decrease  of $99,000  from the net loss  experienced  for the year
ended  March 31,  2001.  The decline in net loss is  primarily  due to equity in
losses of limited  partnerships which declined by $101,000 to $(565,000) for the
year ended March 31, 2002 from  $(666,000)  for the year ended  March 31,  2001.
Equity in losses of  limited  partnerships  decreased  from  prior year due to a
reduction  of the  write-off of  acquisition  fees and costs in the current year
related to the investments that have gone below zero.

Year  Ended  March  31,  2001   Compared  to  Year  Ended  March  31,  2000  The
Partnership's  net  loss for the  year  ended  March  31,  2001 was  $(743,000),
reflecting  a decrease  of $30,000  from the net loss  experienced  for the year
ended  March 31,  2000.  The decline in net loss is  primarily  due to equity in
losses of limited  partnerships  which declined by $28,000 to $(666,000) for the
year ended March 31, 2001 from  $(694,000)  for the year ended  March 31,  2000.
Equity in losses of limited  partnerships  increased due to the reduction of the
cooperative  net  acquisition  fee  component of  investments  in Local  Limited
Partnerships to zero for those Local Limited  Partnerships which would otherwise
be below a zero  balance.  This  decrease  was a result of the  Partnership  not
recognizing certain losses of the Local Limited Partnerships. The investments in
such Local  Limited  Partnerships  had reached $0 at March 31,  2000.  Since the
Partnership's  liability with respect to its  investments is limited,  losses in
excess of investments are not recognized.

Cash Flows

Year Ended March 31, 2002  Compared to Year Ended March 31, 2001.  Net cash used
during  the year  ended  March  31,  2002 was  $(35,000),  compared  to net cash
provided for the year ended March 31, 2001 of $2,000.  The change was  primarily
due to a $18,000  increase of cash used for operating  expenses of which $10,000
resulted  from a decrease  in  interest  income,  and an  increase of $16,000 in
capital contributions paid to the Local Limited Partnerships.

Year Ended  March 31,  2001  Compared  to Year Ended  March 31,  2000.  Net cash
provided  during the year ended March 31, 2001 was $2,000,  compared to net cash
used for the year ended March 31, 2000 of  $(31,000).  The change was  primarily
due to the  collection  of $18,000 of amounts due from an affiliate and due to a
$13,000  decrease in amounts  reimbursed to the General  Partner or  affiliates.
This was offset by a $17,000  decrease of cash used for  investments  in limited
partnerships  and by a $11,000  decrease in  distributions  received  from Local
Limited Partnerships.


                                       10
<PAGE>


The Partnership  expects its future cash flows,  together with its net available
assets at March 31, 2002, to be  sufficient  to meet all  currently  foreseeable
future cash requirements.

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk

NOT APPLICABLE

Item 8.  Financial Statements and Supplementary Data



                                       11
<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 sheets of WNC Housing Tax Credit Fund
IV, L.P., Series 1 (a California Limited  Partnership) (the "Partnership") as of
March 31, 2002 and 2001,  and the related  statements of  operations,  partners'
equity  (deficit)  and cash flows for the years ended March 31,  2002,  2001 and
2000. These financial  statements are the  responsibility  of the  Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements  based  on  our  audits.  A  significant  portion  of  the  financial
statements of the limited  partnerships  in which the  Partnership  is a limited
partner were audited by other  auditors whose reports have been furnished to us.
As discussed in Note 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 72% and 69% of the total assets of the Partnership at March 31, 2002
and 2001,  respectively.  Our  opinion,  insofar as it  relates  to the  amounts
included in the financial  statements  for the limited  partnerships  which were
audited by others, is based solely on the reports of the other auditors.

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

In our  opinion,  based on our audits and the  reports  of other  auditors,  the
financial statements referred to above present fairly, in all material respects,
the  financial  position of WNC Housing  Tax Credit Fund IV,  L.P.,  Series 1 (a
California  Limited  Partnership) as of March 31, 2002 and 2001, and the results
of its  operations  and its cash flows for the years ended March 31, 2002,  2001
and 2000, in conformity with  accounting  principles  generally  accepted in the
United States of America.




                                                   /S/BDO SEIDMAN, LLP
                                                      BDO SEIDMAN, LLP

Orange County, California
May 16, 2002
                                       12
<PAGE>

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

                                 BALANCE SHEETS
<TABLE>
<CAPTION>



                                                                               March 31
                                                                    -------------------------------
                                                                        2002             2001
                                                                    --------------   --------------

<S>                                                               <C>              <C>
ASSETS

Cash and cash equivalents                                         $       277,292  $       312,214
Investments in limited partnerships (Notes 2 and 3)                     2,234,002        2,823,846
                                                                    --------------   --------------

                                                                  $     2,511,294  $     3,136,060
                                                                    ==============   ==============

LIABILITIES AND PARTNERS' EQUITY
  (DEFICIT)

Liabilities:
   Payables to limited partnerships (Note 4)                      $         2,303  $         2,303
   Accrued fees and advances due to General
     Partner and affiliate (Note 3)                                       134,569          115,667
                                                                    --------------   --------------

     Total liabilities                                                    136,872          117,970
                                                                    --------------   --------------

Commitments and contingencies

Partners' equity (deficit):
   General partner                                                        (76,157)         (69,720)
   Limited partners (10,000 units authorized,
     10,000 units issued and outstanding)                               2,450,579        3,087,810
                                                                    --------------   --------------

     Total partners' equity                                             2,374,422        3,018,090
                                                                    --------------   --------------

                                                                  $     2,511,294  $     3,136,060
                                                                    ==============   ==============
</TABLE>

                 See accompanying notes to financial statements

                                       13
<PAGE>


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

                            STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>





                                                                       For the Years Ended
                                                                             March 31
                                                            -------------------------------------------
                                                               2002            2001           2000
                                                            ------------   -------------   ------------
<S>                                                       <C>            <C>             <C>
Interest income                                           $       7,808  $       18,304  $      15,541
Other income                                                      9,798           4,200              -
                                                            ------------   -------------   ------------

Total income                                                     17,606          22,504         15,541
                                                            ------------   -------------   ------------
Operating expenses:
   Amortization (Notes 2 and 3)                                  23,951          28,496         28,496
   Asset management fees (Note 3)                                42,000          42,000         42,105
   Other                                                         30,355          28,154         24,074
                                                            ------------   -------------   ------------

    Total operating expenses                                     96,306          98,650         94,675
                                                            ------------   -------------   ------------

Loss from operations                                            (78,700)        (76,146)       (79,134)

Equity in losses of limited
  partnerships (Note 2)                                        (564,968)       (666,388)      (693,836)
                                                            ------------   -------------   ------------

Net loss                                                  $    (643,668) $     (742,534) $    (772,970)
                                                            ============   =============   ============

Net loss allocated to:
   General partner                                        $      (6,437) $       (7,425) $      (7,730)
                                                            ============   =============   ============

   Limited partners                                       $    (637,231) $     (735,109) $    (765,240)
                                                            ============   =============   ============

Net loss per limited partner unit                         $      (63.72) $       (73.51) $      (76.52)
                                                            ============   =============   ============

Outstanding weighted limited
  partner units                                                  10,000          10,000         10,000
                                                            ============   =============   ============
</TABLE>

                 See accompanying notes to financial statements
                                       14
<PAGE>


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

                    STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

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


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

<S>                                                       <C>                <C>                <C>
Partners' equity (deficit) at March 31, 1999              $        (54,565)  $     4,588,159    $      4,533,594

Net loss                                                            (7,730)         (765,240)           (772,970)
                                                            ---------------    ---------------     ---------------

Partners' equity (deficit) at March 31, 2000                       (62,295)        3,822,919           3,760,624

Net loss                                                            (7,425)         (735,109)           (742,534)
                                                            ---------------    ---------------     ---------------

Partners' equity (deficit) at March 31, 2001                       (69,720)        3,087,810           3,018,090

Net loss                                                            (6,437)         (637,231)           (643,668)
                                                            ---------------    ---------------     ---------------
Partners' equity (deficit) at March 31, 2002              $        (76,157)  $     2,450,579    $      2,374,422
                                                            ===============    ===============     ===============
</TABLE>
                 See accompanying notes to financial statements
                                       15
<PAGE>


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

                            STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>




                                                                                       For the Years Ended
                                                                                            March 31
                                                                         ------------------------------------------------
                                                                            2002            2001              2000
                                                                         -----------    --------------   ----------------


<S>                                                                     <C>           <C>               <C>
Cash flows from operating activities:
   Net loss                                                            $   (643,668)  $      (742,534)  $       (772,970)
   Adjustments to reconcile net loss to
     net cash used in operating activities:
    Amortization                                                             23,951            28,496             28,496
    Equity in losses of limited
      partnerships                                                          564,968           666,388            693,836
    Change in accrued fees and
      expenses due to General Partner
      and affiliates                                                         18,902            11,074             23,653
    Change in other assets                                                        -            18,407            (18,407)
                                                                         -----------    --------------   ----------------
Net cash used in operating activities                                       (35,847)          (18,169)           (45,392)
                                                                         -----------    --------------   ----------------
Cash flows from investing activities:
   Investments in limited partnerships,
     net                                                                    (16,028)               28            (17,134)
   Distributions from limited
     partnerships                                                            16,953            20,141             31,390
                                                                         -----------    --------------   ----------------
Net cash provided by
  investing activities                                                          925            20,169             14,256
                                                                         -----------    --------------   ----------------
Net increase (decrease) in cash and cash equivalents                        (34,922)            2,000            (31,136)

Cash and cash equivalents, beginning
  of period                                                                 312,214           310,214            341,350
                                                                         -----------    --------------   ----------------
Cash and cash equivalents, end of
  period                                                               $    277,292   $       312,214   $        310,214
                                                                         ===========    ==============   ================
SUPPLEMENTAL DISCLOSURE OF
  CASH FLOW INFORMATION
   Taxes paid                                                          $        800   $           800   $            800
                                                                         ===========    ==============   ================
</TABLE>

                 See accompanying notes to financial statements

                                       16
<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

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



NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

WNC Housing Tax Credit Fund IV, L.P., Series 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. F 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 93.65% of the outstanding stock of WNC. Wilfred N.
Cooper, Jr., President of WNC, owns 3.01% of the outstanding stock of WNC.

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

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

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


                                       17
<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

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



NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued

Risks and Uncertainties
-----------------------

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

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

Method of Accounting for Investments in Limited Partnerships
------------------------------------------------------------

The Partnership  accounts for its investments in limited  partnerships using the
equity method of  accounting,  whereby the  Partnership  adjusts its  investment
balance for its share of the Local Limited  Partnership's  results of operations
and for any distributions received. The accounting policies of the Local Limited
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).

Equity in losses of Local  Limited  Partnerships  for the years  ended March 31,
2002, 2001 and 2000 have been recorded by the  Partnership  based on nine months
of reported  results  provided by the Local  Limited  Partnerships  and on three
months of results  estimated by management of the Partnership.  Equity in losses
of limited  partnerships  allocated to the Partnership will not be recognized to
the extent that the investment  balance would be adjusted below zero. As soon as
the  investment  balance  reaches  zero,  the  related  costs of  acquiring  the
investment are accelerated to the extent of losses available (see Note 2).

Offering Expenses
-----------------

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

                                       18
<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

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


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued

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

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

Cash and Cash Equivalents
-------------------------

The  Partnership   considers  all  highly  liquid   investments  with  remaining
maturities of three months or less when purchased to be cash equivalents.  There
were no cash equivalents as of March 31, 2002 and 2001.

Concentration of Credit Risk
----------------------------

At March 31,  2002,  the  Partnership  maintained  a cash  balance  at a certain
financial institution in excess of the maximum federally insured amounts.

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

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

Reporting Comprehensive Income
------------------------------

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

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

In October 2001, the FASB issued Statement of Financial Accounting Standards No.
144,  "Accounting  for the  Impairment or Disposal of Long-Lived  Assets" ("SFAS
144"),  which  requires  that  long-lived  assets  be  measured  at the lower of
carrying amount or fair value less cost to sell,  whether reported in continuing
operations or in discontinued  operations.  Therefore,  discontinued  operations
will no longer be  measured  at net  realizable  value or  include  amounts  for
operating  losses that have not yet  occurred.  SFAS 144 is effective for fiscal
years  beginning  after  December  15,  2001,  and  generally,  is to be applied
prospectively.  The  Partnership  has not yet  completed  its  evaluation of the
impact of SFAS 144 on its financial position or results of operations.


                                       19
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

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



NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS

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

The  Partnership's  investments  in Local Limited  Partnerships  as shown in the
balance  sheets  at March 31,  2002 and 2001,  are  approximately  $867,000  and
$692,000,  respectively,  greater than the Partnership's equity at the preceding
December  31 as shown in the  Local  Limited  Partnerships'  combined  financial
statements  presented  below.  This  difference  is primarily  due to unrecorded
losses,  as discussed below,  acquisition,  selection and other costs related to
the  acquisition  of  the  investments   which  have  been  capitalized  in  the
Partnership's  investment  account and to capital  contributions  payable to the
limited  partnerships  which were netted  against  partner  capital in the Local
Limited Partnership's financial statements. The Partnership's investment is also
lower than the Partnership's equity as shown in the Local Limited  Partnership's
combined  financial  statements  due to the  estimated  losses  recorded  by the
Partnership for the three month period ended March 31.

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

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

At March 31, 2002 and 2001,  the  investment  accounts in certain  Local Limited
Partnerships  have  reached  a zero  balance.  Consequently,  a  portion  of the
Partnership's  estimate  of its share of losses  for the years  ended  March 31,
2002, 2001 and 2000 amounting to  approximately  $212,000,  $97,000 and $75,000,
respectively,  have not been  recognized.  As of March 31, 2002,  the  aggregate
share of net losses not recognized by the Partnership amounted to $461,000.

Following is a summary of the equity method activity of the investments in Local
Limited Partnerships for the periods presented:
<TABLE>
<CAPTION>
                                                                                For the Years Ended
                                                                                     March 31
                                                                ----------------------------------------------------

                                                                     2002               2001              2000
                                                                ----------------   ---------------    --------------

<S>                                                           <C>                <C>                <C>
Investments per balance sheet, beginning
   of period                                                  $       2,823,846  $      3,538,899   $     4,298,485
Capital contributions paid, net                                          16,028               (28)           (5,864)
Distributions received                                                  (16,953)          (20,141)          (31,390)
Equity in losses of limited partnerships                               (564,968)         (666,388)         (693,836)
Amortization of paid acquisition fees
   and costs                                                            (23,951)          (28,496)          (28,496)
                                                                ----------------   ---------------    --------------

Investments per balance sheet, end
   of period                                                  $       2,234,002  $      2,823,846   $     3,538,899
                                                                ================   ===============    ==============
</TABLE>

                                       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 March 31, 2002, 2001 and 2000


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
<TABLE>
<CAPTION>
                                                                                     2001               2000
                                                                                ---------------    ---------------

<S>                                                                           <C>                <C>
ASSETS

Buildings and improvements, net of accumulated
  depreciation of $7,809,000 and $6,724,000 for  2001
  and 2000, respectively                                                      $     26,880,000   $     27,914,000
Land                                                                                 1,668,000          1,657,000
Due from related parties                                                                14,000             16,000
Other assets                                                                         2,080,000          2,090,000
                                                                                ---------------    ---------------

                                                                              $     30,642,000   $     31,677,000
                                                                                ===============    ===============

LIABILITIES

Mortgage and construction loans payable                                       $     26,037,000   $     26,222,000
Due to related parties                                                                 912,000            693,000
Other liabilities                                                                    1,003,000          1,286,000
                                                                                ---------------    ---------------

                                                                                    27,952,000         28,201,000
                                                                                ---------------    ---------------

PARTNERS' CAPITAL

WNC Housing Tax Credits Fund IV, L.P., Series 1                                      1,367,000          2,132,000
Other partners                                                                       1,323,000          1,344,000
                                                                                ---------------    ---------------

                                                                                     2,690,000          3,476,000
                                                                                ---------------    ---------------

                                                                              $     30,642,000   $     31,677,000
                                                                                ===============    ===============
</TABLE>
                                       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 March 31, 2002, 2001 and 2000


NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued

                   COMBINED CONDENSED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>

                                                                 2001                2000               1999
                                                            ---------------     ---------------    ---------------
<S>                                                       <C>                 <C>               <C>
Revenues                                                  $      3,400,000    $      3,397,000  $       3,342,000
                                                            ---------------     ---------------    ---------------

Expenses:
  Operating expenses                                             2,250,000           2,198,000          2,196,000
  Interest expense                                                 841,000             841,000            905,000
  Depreciation and amortization                                  1,098,000           1,142,000          1,058,000
                                                            ---------------     ---------------    ---------------

   Total expenses                                                4,189,000           4,181,000          4,159,000
                                                            ---------------     ---------------    ---------------

Net loss                                                  $       (789,000)   $       (784,000) $        (817,000)
                                                            ===============     ===============    ===============

Net loss allocable to the Partnership                     $       (777,000)   $       (772,000) $        (806,000)
                                                            ===============     ===============    ===============

Net loss recorded by the Partnership                      $       (565,000)   $       (666,000) $        (694,000)
                                                            ===============     ===============    ===============
</TABLE>

Certain Local Limited  Partnerships have incurred  significant  operating losses
and  have  working  capital  deficiencies.  In the  event  these  Local  Limited
Partnerships continue to incur significant operating losses,  additional capital
contributions  by the  Partnership  and/or  the Local  General  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, and the loss and recapture of the related tax credits could occur.

The financial statements of one Local Limited Partnership were prepared assuming
the limited partnership will continue as a going concern.  The Partnership had a
$256,705 and $441,770, remaining investment in such Local Limited Partnership at
March 31, 2002 and 2001, respectively.  The Partnership's original investment in
the Local Limited  Partnership  approximated  $1,691,585.  Through  December 31,
2001, the Local 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, 2001 and 2000, the carrying
value of such property on the books and records of the Local Limited Partnership
totaled  $6,507,470  and  $6,703,761.  The auditor for this entity has 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.


                                       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 March 31, 2002, 2001 and 2000


NOTE 3 - RELATED PARTY TRANSACTIONS

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

     Acquisition  fees  of up to 8% of the  gross  proceeds  from  the  sale  of
     Partnership  units as compensation for services rendered in connection with
     the  acquisition of Local Limited  Partnerships.  At the end of all periods
     presented,   the  Partnership   incurred   acquisition  fees  of  $800,000.
     Accumulated  amortization  of these  capitalized  costs  was  $384,251  and
     $243,289 as of March 31, 2002 and 2001,  respectively.  Of the  accumulated
     amortization recorded on the balance sheet at March 31, 2001 $59,327 of the
     related  expense was reflected as equity in losses of limited  partnerships
     on the statement of operations  during the fourth quarter of the year ended
     March 31, 2001 to reduce the  respective net  acquisition  fee component of
     investments in local limited  partnerships  to zero for those Local Limited
     Partnerships which would otherwise be below a zero balance. During the year
     ended March 31, 2002, an additional  $117,011 was recognized under the same
     methodology.

     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.  At the  end of all  periods
     presented, the Partnership had incurred acquisition costs of $54,949, which
     have been included in  investments in limited  partnerships.  At the end of
     all years presented  accumulated  amortization  amounted to $54,949. Of the
     accumulated  amortization  recorded on the balance sheet at March 31, 2001,
     $44,256 of the related expense was reflected as equity in losses of limited
     partnerships  on the statement of operations  during the fourth  quarter of
     the year ended March 31, 2001 to reduce the respective net acquisition cost
     component of  investments in local limited  partnerships  to zero for those
     Local Limited Partnerships which would otherwise be below a zero balance.

     An annual asset  management  fee equal to the greater  amount of (i) $2,000
     for each apartment  complex,  or (ii) 0.275% of gross  proceeds.  In either
     case,  the fee will be decreased or increased  annually based on changes to
     the Consumer  Price  Index.  However,  in no event will the maximum  amount
     exceed  0.2% of the  invested  assets  of the Local  Limited  Partnerships,
     including the  Partnership's  allocable share of the mortgages.  Management
     fees of $42,000 were incurred  during the years ended March 31, 2002,  2001
     and 2000, of which $24,500, $30,000 and $16,310 was paid, respectively.

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

     An affiliate of the General Partner provides management services for one of
     the properties in the limited partnerships.  Management fees were earned by
     the  affiliate in the amount of $55,040,  $53,276 and $50,259 for the years
     ended March 31, 2002, 2001 and 2000.

     The accrued fees and advances due to General Partner and affiliates consist
     of the following:
<TABLE>
<CAPTION>

                                                                                      March 31
                                                                  -------------------------------------------------
                                                                      2002             2001              2000
                                                                  --------------    ------------    ---------------

<S>                                                             <C>               <C>             <C>

Reimbursement for expenses paid by the General Partner
  or an affiliate                                               $         1,402   $           -   $            926

Asset management fee payable                                            133,167         115,667            103,667
                                                                  --------------    ------------    ---------------

Total                                                           $       134,569   $     115,667   $        104,593
                                                                  ==============    ============    ===============
</TABLE>

                                       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 March 31, 2002, 2001 and 2000


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).
<TABLE>
<CAPTION>
NOTE 5 - QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)


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

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

               2002

<S>                                   <C>                 <C>               <C>                 <C>
Income                                $          3,000    $         2,000   $          1,000    $         11,000

Operating expenses                             (21,000)           (30,000)           (22,000)            (23,000)

Equity in losses of limited
     partnerships                             (121,000)          (175,000)           (87,000)           (182,000)

Net loss                                      (139,000)          (203,000)          (108,000)           (194,000)

Loss available to limited partners            (137,000)          (201,000)          (107,000)           (192,000)

Loss per limited partner unit                      (14)               (20)               (11)                (19)

               2001

Income                                $          5,000    $         9,000   $          5,000    $          3,000

Operating expenses                             (22,000)           (34,000)           (20,000)            (23,000)

Equity in losses of limited
     partnerships                             (180,000)          (180,000)          (179,000)           (127,000)

Net loss                                      (197,000)          (205,000)          (194,000)           (147,000)

Loss available to limited partners            (195,000)          (203,000)          (193,000)           (144,000)

Loss per limited partner unit                      (20)               (20)               (19)                (14)
</TABLE>
NOTE 6 - 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.

                                       24
<PAGE>



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

NOT APPLICABLE

PART III

Item 10. Directors and Executive Officers of the Registrant

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

Directors and Executive Officers of WNC & Associates, Inc.

The directors of WNC & Associates,  Inc. are Wilfred N. Cooper,  Sr., who serves
as Chairman of the Board,  David N.  Shafer,  Wilfred N. Cooper,  Jr. and Kay L.
Cooper.  The  principal  shareholder  of  WNC  &  Associates,  Inc.  is a  trust
established by Wilfred N. Cooper, Sr.

Wilfred N.  Cooper,  Sr.,  age 71, is the  founder,  Chairman,  Chief  Executive
Officer,  and a Director of WNC &  Associates,  Inc.,  a Director of WNC Capital
Corporation,  and a general partner in some of the programs previously sponsored
by the  Sponsor.  Mr.  Cooper has been  involved in real estate  investment  and
acquisition  activities  since 1968.  Previously,  during 1970 and 1971,  he was
founder and principal of Creative Equity Development Corporation,  a predecessor
of WNC & Associates,  Inc., and of Creative  Equity  Corporation,  a real estate
investment firm. For 12 years prior to that, Mr. Cooper was employed by Rockwell
International  Corporation,  last  serving as its  manager of housing  and urban
developments where he had  responsibility  for factory-built  housing evaluation
and project  management  in urban  planning  and  development.  Mr.  Cooper is a
Director of the  National  Association  of Home  Builders  (NAHB) and a National
Trustee  for NAHB's  Political  Action  Committee,  a Director  of the  National
Housing  Conference  (NHC)  and a member  of  NHC's  Executive  Committee  and a
Director of the National Multi-Housing Council (NMHC). Mr. Cooper graduated from
Pomona College in 1956 with a Bachelor of Arts degree.

Wilfred N.  Cooper,  Jr.,  age 39, is  President,  Chief  Operating  Officer,  a
Director and a member of the Acquisition Committee of WNC & Associates,  Inc. He
is President of, and a registered  principal  with, WNC Capital  Corporation,  a
member firm of the NASD, and is a Director of WNC  Management,  Inc. He has been
involved in investment and  acquisition  activities  with respect to real estate
since he joined the  Sponsor  in 1988.  Prior to this,  he served as  Government
Affairs  Assistant with Honda North America in Washington,  D.C. Mr. Cooper is a
member of the Advisory Board for LIHC Monthly Report,  a Director of NMHC and an
Alternate  Director of NAHB. He graduated  from The American  University in 1985
with a Bachelor of Arts degree.

David N.  Shafer,  age 50, is  Executive  Vice  President,  a Director,  General
Counsel,  and a member of the Acquisition  Committee of WNC & Associates,  Inc.,
and a  Director  and  Secretary  of WNC  Management,  Inc.  Mr.  Shafer has been
involved in real estate investment and acquisition  activities since 1984. Prior
to joining the Sponsor in 1990, he was  practicing  law with a specialty in real
estate and taxation.  Mr.  Shafer is a Director and President of the  California
Council of Affordable  Housing and a member of the State Bar of California.  Mr.
Shafer graduated from the University of California at Santa Barbara in 1978 with
a Bachelor of Arts  degree,  from the New  England  School of Law in 1983 with a
Juris  Doctor  degree (cum laude) and from the  University  of San Diego in 1986
with a Master of Law degree in Taxation.

Thomas J. Riha, age 47, became Chief Financial  Officer  effective January 2001.
Prior to his  appointment  as Chief  Financial  Officer he was Vice  President -
Asset Management and a member of the Acquisition  Committee of WNC & Associates,
Inc. and a Director and Chief Executive Officer of WNC Management, Inc. Mr. Riha
has been involved in acquisition and investment  activities with respect to real
estate since 1979.  Prior to joining the Sponsor in 1994,  Mr. Riha was employed
by Trust Realty Advisor, a real estate acquisition and management company,  last
serving as Vice  President - Operations.  Mr. Riha graduated from the California
State  University,  Fullerton in 1977 with a Bachelor of Arts degree (cum laude)
in Business Administration with a concentration in Accounting and is a Certified
Public  Accountant  and a member of the American  Institute of Certified  Public
Accountants.

                                       25
<PAGE>


Sy P. Garban,  age 56, is Vice  President - National  Sales of WNC & Associates,
Inc.  and has been  employed by the  Sponsor  since  1989.  Mr.  Garban has been
involved in real estate  investment  activities since 1978. Prior to joining the
Sponsor he served as  Executive  Vice  President  of MRW,  Inc.,  a real  estate
development  and management  firm.  Mr. Garban is a member of the  International
Association of Financial  Planners.  He graduated from Michigan State University
in 1967 with a Bachelor of Science degree in Business Administration.

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

David Turek, age 47, is Vice President - Originations of WNC & Associates,  Inc.
He has been involved with real estate  investment and finance  activities  since
1976 and has been employed by WNC & Associates,  Inc.  since 1996.  From 1995 to
1996,  Mr. Turek served as a consultant  for a national Tax Credit sponsor where
he was responsible for on-site feasibility studies and due diligence analyses of
Tax Credit properties.  From 1990 to 1995, he was involved in the development of
conventional  and tax credit  multi-family  housing.  He is a Director  with the
Texas Council for Affordable Rural Housing and graduated from Southern Methodist
University in 1976 with a Bachelor of Business Administration degree.

Kay L. Cooper,  age 65, is a Director of WNC & Associates,  Inc. Mrs. Cooper was
the founder and sole  proprietor  of Agate 108, a  manufacturer  and retailer of
home  accessory  products,  from 1975 until 1998.  She is the wife of Wilfred N.
Cooper,  Sr., and the mother of Wilfred N. Cooper, 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 $42,000 were incurred during the years ended
     March 31,  2002,  2001 and 2000,  respectively.  The  Partnership  paid the
     General  Partner or its  affiliates  $24,500,  $30,000 and $16,310 of those
     fees during the years ended March 31, 2002, 2001 and 2000, respectively.

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

(c)  Operating Expenses.  The Partnership  reimbursed the General Partner or its
     affiliates for operating  expenses of  approximately  $28,000,  $26,000 and
     $9,000 during the year ended March 31, 2002, 2001 and 2000, respectively.

(d)  Interest  in  Partnership.   The  General   Partner   receives  1%  of  the
     Partnership's  allocated Low Income  Housing  Credits,  which  approximated
     $15,000  for the  General  Partner  for all years  presented.  The  General
     Partner is also entitled to receive 1% of cash distributions. There were no
     distributions of cash to the General Partner during the years presented.

                                       26

<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.

                                       27
<PAGE>

PART IV.

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

Financial Statements

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

         Report of Independent Certified Public Accountants
         Balance Sheets, March 31, 2002 and 2001
         Statements of Operations for the years ended March 31, 2002, 2001
          and 2000
         Statements of Partners' Equity (Deficit) for the years ended March 31,
          2002, 2001 and 2000
         Statements of Cash Flows for the years ended March 31, 2002, 2001
          and 2000
         Notes to Financial Statements

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

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

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

1.       None

(c)      Exhibits.
         ---------

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

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

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

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

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

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

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

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

                                       28
<PAGE>


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

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

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

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

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

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

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

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

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

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

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

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

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

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

21.1     Financial  Statements of Laurel Creek  Apartments,  for the years ended
         December 31, 1999 and 1998 together with  Independent  Auditors' Report
         thereon;  filed as exhibit  21.1 on Form 10-K dated March 31,  2000;  a
         significant subsidiary of the Partnership.

                                       29
<PAGE>


21.2     Financial  Statements  of Laurel  Creek  Apartments,  as of and for the
         years  ended  December  31,  2000 and 1999  together  with  Independent
         Auditors'  Report  thereon;  filed as  exhibit  21.2 on Form 10-K dated
         March 31, 2001; a significant subsidiary of the Partnership.

21.3     Financial  Statements  of Laurel  Creek  Apartments,  as of and for the
         years  ended  December  31,  2001 and 2000  together  with  Independent
         Auditors'  Report  thereon;  filed as  exhibit  21.3 on Form 10-K dated
         March 31, 2002; a significant subsidiary of the Partnership.

21.4     Financial  Statements of Regency  Court,  as of and for the years ended
         December 31, 2001 and 2000 together with  Independent  Auditors' Report
         thereon;  filed as exhibit  21.4 on Form 10-K dated March 31,  2002;  a
         significant subsidiary of the Partnership.

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

                                       30
<PAGE>

               Report of Independent Certified Public Accounts on
                          Financial Statement Schedules




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


The audits  referred to in our report dated May 16, 2002,  relating to the 2002,
2001 and 2000  financial  statements  of WNC  Housing  Tax Credit  Fund IV, L.P.
Series 1 (the  "Partnership"),  which is  contained in Item 8 of this Form 10-K,
included  the  audit of the  accompanying  financial  statement  schedules.  The
financial  statement  schedules  are  the  responsibility  of the  Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statement schedules based upon our audits.

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


                                                /s/ BDO SEIDMAN, LLP
Orange County, California                           BDO SEIDMAN, LLP
May 16, 2002



                                       31
<PAGE>


WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2002
<TABLE>
<CAPTION>
                                                               ----------------------------------  ---------------------------------
                                                                     As of March 31, 2001                  As of December 31, 2000
                                                               ----------------------------------  ---------------------------------
                                           Total Investment   Amount of    Encumbrances
                                           in Local Limited   Investment  of Local Limited  Property and    Accumulated     Net Book
          Partnership Name      Location    Partnerships      Paid to Date  Partnerships    Equipment       Depreciation       Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                             <C>          <C>           <C>               <C>            <C>             <C>         <C>
Alpine Manor,                   Alpine,
L.P.                            Texas        $  195,000    $   195,000       $   909,000    $  1,170.000    $  221,000  $    949,000

Baycity Village
Apartments, Limited             Baytown,
Partnership                     Texas           301,000        301,000         1,455,000       1,829,000     550,000       1,279,000

Beckwood Manor Seven            Marianna,
Limited Partnership             Arkansas        307,000        307,000         1,383,000       1,789,000     527,000       1,262,000

Briscoe Manor Limited           Galena,
Partnership                     Maryland        308,000        308,000         1,481,000       1,845,000      505,000      1,340,000

Evergreen
Four Limited                    Maynard,
Partnership                     Arkansas        195,000        195,000           865,000       1,129,000      325,000        804,000

Fawn Haven Limited              Manchester,
Partnership                     Ohio            167,000        167,000           851,000       1,072,000      333,000        739,000

Fort Stockton                   Ft.Stockton,
Manor, L.P.                     Texas           224,000        224,000         1,046,000       1,248,000      216,000      1,032,000

Hidden
Valley Limited                  Gallup, New
Partnership                     Mexico          412,000        412,000         1,477,000       1,981,000      378,000      1,603,000

HOI Limited
Partnership Of                  Lenoir,
Lenoir                          Carolina        198,000        198,000           539,000       1,173,000      238,000        890,000

Indian Creek Limited            Bucyrus,
Partnership                     Ohio            306,000        306,000         1,462,000       1,777,000      483,000      1,294,000

Laurel Creek                    San Luis Obispo,
Apartments                      California    1,030,000      1,030,000           611,000       2,165,000      534,000      1,631,000

</TABLE>

                                       32
<PAGE>



WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2002
<TABLE>
<CAPTION>
                                                               ----------------------------------  ---------------------------------
                                                                     As of March 31, 2001                  As of December 31, 2000
                                                               ----------------------------------  ---------------------------------
                                           Total Investment   Amount of    Encumbrances
                                           in Local Limited   Investment  of Local Limited  Property and    Accumulated     Net Book
          Partnership Name      Location    Partnerships      Paid to Date  Partnerships    Equipment       Depreciation       Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                             <C>        <C>                 <C>          <C>             <C>           <C>           <C>
Madisonville Manor Senior       Madisonville,
Citizens Complex, Ltd.          Texas           174,000            174,000       898,000       1,150,000      140,000      1,010,000

Mt. Graham                      Safford,
Housing, Ltd.                   Arizona         410,000            410,000     1,400,000       1,883,000      525,000      1,358,000

Northside Plaza                 Angleton,
Apartments, Ltd.                Texas           282,000            282,000     1,354,000       1,741,000      244,000      1,497,000

Pampa Manor, L.P.               Pampa, Texas    180,000            180,000       841,000       1,032,000      186,000        846,000

Regency Court                   Monrovia,
Partners                        California    1,692,000          1,690,000     5,088,000       7,708,000    1,200,000      6,508,000

Sandpiper Square, a Limited     Aulander,North
Partnership                     Carolina        219,000            219,000       942,000       1,193,000      231,000        962,000

Seneca Falls                    Seneca
East Apartments                 Falls, New
Company II, L.P.                York            270,000            270,000       888,000       1,227,000      151,000      1,076,000

Vernon Manor, L.P.              Vernon, Texas   177,000            177,000       748,000         905,000      162,000        743,000

Waterford Place,                Calhoun
a Limited                       Falls, South
Partnership                     Carolina        272,000            272,000     1,174,000       1,501,000      452,000      1,049,000

Yantis Housing, Ltd.            Yantis, Texas   145,000            145,000       625,000         839,000      163,000        676,000
                                           ------------         ----------  ------------    ------------- -----------   ------------
                                           $  7,464,000        $ 7,462,000  $ 26,037,000    $ 36,357,000  $ 7,809,000   $ 28,548,000
                                           ============         ==========  ============    ============  ============  ============
</TABLE>
                                       33
<PAGE>


WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2002
<TABLE>
<CAPTION>
                              --------------------------------------------------------------------------------------
                                                      For the year ended December 31, 2001
                              --------------------------------------------------------------------------------------
                                                                   Year Investment                Estimated Useful
      Partnership Name          Rental Income        Net Loss         Acquired         Status       Life (Years)
--------------------------------------------------------------------------------------------------------------------

<S>                                    <C>           <C>                <C>            <C>              <C>
Alpine Manor, L.P.                     $ 113,000     $   (19,000)       1994           Completed         40

Baycity Village Apartments,
Limited Partnership                      248,000         (51,000)       1994           Completed         30

Beckwood Manor Seven Limited
Partnership                              148,000         (75,000)       1993           Completed        27.5

Briscoe Manor Limited
Partnership                              174,000         (64,000)       1994           Completed        27.5

Evergreen Four Limited
Partnership                               89,000         (37,000)       1994           Completed        27.5

Fawn Haven Limited
Partnership                               84,000         (24,000)       1994           Completed        27.5

Fort Stockton Manor, L.P.                123,000         (14,000)       1994           Completed         40

Hidden Valley Limited
Partnership                              176,000         (18,000)       1994           Completed         40

HOI Limited Partnership Of
Lenoir                                   142,000         (26,000)       1993           Completed         40

Indian Creek Limited
Partnership                              145,000         (33,000)       1994           Completed        27.5

Laurel Creek Apartments                  180,000          (4,000)       1994           Completed        27.5

Madisonville Manor Senior
Citizens Complex, Ltd.                   104,000         (12,000)       1994           Completed         50

Mt. Graham Housing, Ltd.                 138,000         (69,000)       1994           Completed        27.5

Northside Plaza Apartments,
Ltd.                                     151,000         (30,000)       1994           Completed         50

Pampa Manor, L.P.                         94,000         (27,000)       1994           Completed         40

Regency Court Partners                   657,000        (162,000)       1994           Completed         40

Sandpiper Square, a Limited
Partnership                               99,000         (17,000)       1994           Completed         35

Seneca Falls East Apartments
Company II, L.P.                         144,000         (27,000)       1998           Completed         40
</TABLE>


                                       34
<PAGE>


WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2002
<TABLE>
<CAPTION>
                              --------------------------------------------------------------------------------------
                                                      For the year ended December 31, 2001
                              --------------------------------------------------------------------------------------
                                                                   Year Investment                Estimated Useful
      Partnership Name          Rental Income        Net Loss         Acquired         Status       Life (Years)
--------------------------------------------------------------------------------------------------------------------
<S>                                       <C>             <C>           <C>            <C>               <C>
Vernon Manor, L.P.                        92,000          (4,000)       1994           Completed         40

Waterford Place, a Limited
Partnership                              125,000         (50,000)       1994           Completed         40


Yantis Housing, Ltd.                      73,000         (26,000)       1994           Completed         40
                                     -----------      -----------
                                     $ 3,299,000      $ (789,000)
                                     ===========      ===========
</TABLE>

                                       35
<PAGE>


WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2001
<TABLE>
<CAPTION>
                                                               ----------------------------------  ---------------------------------
                                                                     As of March 31, 2001                  As of December 31, 2000
                                                               ----------------------------------  ---------------------------------
                                           Total Investment   Amount of    Encumbrances
                                           in Local Limited   Investment  of Local Limited  Property and    Accumulated     Net Book
          Partnership Name      Location    Partnerships      Paid to Date  Partnerships    Equipment       Depreciation       Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                             <C>          <C>           <C>               <C>            <C>             <C>         <C>
Alpine Manor,                   Alpine,
L.P.                            Texas        $  195,000    $   195,000       $   913,000    $  1,170.000    $  192,000  $    978,000

Baycity Village
Apartments, Limited             Baytown,
Partnership                     Texas           301,000        301,000         1,467,000       1,829,000     486,000       1,343,000

Beckwood Manor Seven            Marianna,
Limited Partnership             Arkansas        307,000        307,000         1,387,000       1,790,000     463,000       1,327,000

Briscoe Manor Limited           Galena,
Partnership                     Maryland        308,000        308,000         1,485,000       1,812,000      4415,000     1,371,000

Evergreen
Four Limited                    Maynard,
Partnership                     Arkansas        195,000        195,000           868,000       1,129,000      285,000        844,000

Fawn Haven Limited              Manchester,
Partnership                     Ohio            167,000        167,000           855,000       1,069,000      296,000        773,000

Fort Stockton                   Ft.Stockton,
Manor, L.P.                     Texas           224,000        224,000         1,051,000       1,248,000      186,000      1,062,000

Hidden
Valley Limited                  Gallup, New
Partnership                     Mexico          412,000        412,000         1,482,000       1,979,000      321,000      1,658,000

HOI Limited
Partnership Of                  Lenoir,
Lenoir                          Carolina        198,000        198,000           551,000       1,168,000      250,000        981,000

Indian Creek Limited            Bucyrus,
Partnership                     Ohio            306,000        306,000         1,469,000       1,776,000      416,000      1,360,000

Laurel Creek                    San Luis Obispo,
Apartments                      California    1,030,000      1,030,000           636,000       2,165,000      464,000      1,701,000

</TABLE>

                                       36
<PAGE>

WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2001
<TABLE>
<CAPTION>

                                                               ----------------------------------  ---------------------------------
                                                                     As of March 31, 2001                  As of December 31, 2000
                                                               ----------------------------------  ---------------------------------
                                           Total Investment   Amount of    Encumbrances
                                           in Local Limited   Investment  of Local Limited  Property and    Accumulated     Net Book
          Partnership Name      Location    Partnerships      Paid to Date  Partnerships    Equipment       Depreciation       Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                             <C>        <C>                 <C>          <C>             <C>           <C>           <C>
Madisonville Manor Senior       Madisonville,
Citizens Complex, Ltd.          Texas           174,000            174,000       900,000       1,150,000      118,000      1,032,000

Mt. Graham                      Safford,
Housing, Ltd.                   Arizona         410,000            410,000     1,406,000       1,878,000      454,000      1,424,000

Northside Plaza                 Angleton,
Apartments, Ltd.                Texas           282,000            282,000     1,359,000       1,776,000      208,000      1,528,000

Pampa Manor, L.P.               Pampa, Texas    180,000            180,000       844,000       1,032,000      161,000        871,000

Regency Court                   Monrovia,
Partners                        California    1,692,000          1,690,000     5,156,000       7,708,000    1,004,000      6,704,000

Sandpiper Square, a Limited     Aulander,North
Partnership                     Carolina        219,000            219,000       946,000       1,193,000      198,000        995,000

Seneca Falls                    Seneca
East Apartments                 Falls, New
Company II, L.P.                York            270,000            270,000       890,000       1,224,000      107,000      1,117,000

Vernon Manor, L.P.              Vernon, Texas   161,000            161,000       751,000         905,000      140,000        765,000

Waterford Place,                Calhoun
a Limited                       Falls, South
Partnership                     Carolina        272,000            272,000     1,179,000       1,495,000      391,000      1,104,000

Yantis Housing, Ltd.            Yantis, Texas   145,000            145,000       627,000         839,000      143,000        696,000
                                           ------------         ----------  ------------    ------------- -----------   ------------
                                           $  7,448,000        $ 7,446,000  $ 26,222,000    $ 36,295,000  $ 6,724,000   $ 29,571,000
                                           ============         ==========  ============    ============  ============  ============
</TABLE>
                                       37
<PAGE>




WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2001
<TABLE>
<CAPTION>
                              --------------------------------------------------------------------------------------
                                                      For the year ended December 31, 2000
                              --------------------------------------------------------------------------------------
                                                                   Year Investment                Estimated Useful
      Partnership Name          Rental Income        Net Loss         Acquired         Status       Life (Years)
--------------------------------------------------------------------------------------------------------------------
<S>                                    <C>           <C>                <C>            <C>              <C>
Alpine Manor, L.P.                     $ 103,000     $   (23,000)       1994           Completed         40

Baycity Village Apartments,
Limited Partnership                      259,000         (55,000)       1994           Completed         30

Beckwood Manor Seven Limited
Partnership                              151,000         (59,000)       1993           Completed        27.5

Briscoe Manor Limited
Partnership                              165,000         (96,000)       1994           Completed        27.5

Evergreen Four Limited
Partnership                               83,000         (36,000)       1994           Completed        27.5

Fawn Haven Limited
Partnership                               81,000         (22,000)       1994           Completed        27.5

Fort Stockton Manor, L.P.                116,000         (22,000)       1994           Completed         40

Hidden Valley Limited
Partnership                              156,000         (30,000)       1994           Completed         40

HOI Limited Partnership Of
Lenoir                                   131,000         (34,000)       1993           Completed         40

Indian Creek Limited
Partnership                              139,000         (40,000)       1994           Completed        27.5

Laurel Creek Apartments                  169,000         (35,000)       1994           Completed        27.5

Madisonville Manor Senior
Citizens Complex, Ltd.                   111,000           1,000        1994           Completed         50

Mt. Graham Housing, Ltd.                 144,000         (67,000)       1994           Completed        27.5

Northside Plaza Apartments,
Ltd.                                     152,000         (17,000)       1994           Completed         50

Pampa Manor, L.P.                         98,000         (34,000)       1994           Completed         40

Regency Court Partners                   657,000         (62,000)       1994           Completed         40

Sandpiper Square, a Limited
Partnership                               99,000         (15,000)       1994           Completed         35

Seneca Falls East Apartments
Company II, L.P.                         143,000         (22,000)       1998           Completed         40
</TABLE>

                                       38

<PAGE>



WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2001
<TABLE>
<CAPTION>
                              --------------------------------------------------------------------------------------
                                                      For the year ended December 31, 2000
                              --------------------------------------------------------------------------------------
                                                                   Year Investment                Estimated Useful
      Partnership Name          Rental Income        Net Loss         Acquired         Status       Life (Years)
--------------------------------------------------------------------------------------------------------------------
<S>                                       <C>            <C>            <C>            <C>               <C>
Vernon Manor, L.P.                        78,000         (32,000)       1994           Completed         40

Waterford Place, a Limited
Partnership                              115,000         (55,000)       1994           Completed         40

Yantis Housing, Ltd.                      71,000         (29,000)       1994           Completed         40
                                     -----------      -----------
                                     $ 3,221,000      $ (784,000)
                                     ===========      ===========
</TABLE>
                                       39
<PAGE>


WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2000
<TABLE>
<CAPTION>
                                                               ----------------------------------  ---------------------------------
                                                                     As of March 31, 2000                  As of December 31, 1999
                                                               ----------------------------------  ---------------------------------
                                           Total Investment   Amount of    Encumbrances
                                           in Local Limited   Investment  of Local Limited  Property and    Accumulated     Net Book
          Partnership Name      Location    Partnerships      Paid to Date  Partnerships    Equipment       Depreciation       Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                             <C>          <C>           <C>               <C>            <C>             <C>         <C>
Alpine Manor,                   Alpine,
L.P.                            Texas        $  195,000    $   195,000       $   916,000    $  1,170.000    $  163,000  $  1,007,000

Baycity Village
Apartments, Limited             Baytown,
Partnership                     Texas           301,000        301,000         1,478,000       1,829,000     419,000       1,410,000

Beckwood Manor Seven            Marianna,
Limited Partnership             Arkansas        307,000        307,000         1,391,000       1,790,000     395,000       1,395,000

Briscoe Manor Limited           Galena,
Partnership                     Maryland        308,000        308,000         1,490,000       1,812,000     343,000       1,469,000

Evergreen
Four Limited                    Maynard,
Partnership                     Arkansas        195,000        195,000           871,000       1,129,000      241,000        888,000

Fawn Haven Limited              Manchester,
Partnership                     Ohio            167,000        167,000           859,000       1,069,000      259,000        810,000

Fort Stockton                   Ft.Stockton,
Manor, L.P.                     Texas           224,000        224,000         1,055,000       1,248,000      156,000      1,092,000

Hidden
Valley Limited                  Gallup, New
Partnership                     Mexico          412,000        412,000         1,487000       1,944,000       269,000      1,675,000

HOI Limited
Partnership Of                  Lenoir,
Lenoir                          Carolina        198,000        198,000           562,000       1,168,000      217,000        951,000

Indian Creek Limited            Bucyrus,
Partnership                     Ohio            306,000        306,000         1,475,000       1,776,000      351,000      1,425,000

Laurel Creek                    San Luis Obispo,
Apartments                      California    1,030,000      1,030,000           660,000       2,165,000      393,000      1,772,000

</TABLE>

                                       40
<PAGE>



WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2000
<TABLE>
<CAPTION>

                                                               ----------------------------------  ---------------------------------
                                                                     As of March 31, 2000                  As of December 31, 1999
                                                               ----------------------------------  ---------------------------------
                                           Total Investment   Amount of    Encumbrances
                                           in Local Limited   Investment  of Local Limited  Property and    Accumulated     Net Book
          Partnership Name      Location    Partnerships      Paid to Date  Partnerships    Equipment       Depreciation       Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                             <C>        <C>                 <C>          <C>             <C>           <C>           <C>
Madisonville Manor Senior       Madisonville,
Citizens Complex, Ltd.          Texas           174,000            174,000       903,000       1,149,000       95,000      1,054,000

Mt. Graham                      Safford,
Housing, Ltd.                   Arizona         410,000            410,000     1,411,000       1,874,000      382,000      1,492,000

Northside Plaza                 Angleton,
Apartments, Ltd.                Texas           282,000            282,000     1,364,000       1,736,000      171,000      1,565,000

Pampa Manor, L.P.               Pampa, Texas    180,000            180,000       846,000       1,029,000      135,000        894,000

Regency Court                   Monrovia,
Partners                        California    1,692,000          1,690,000     4,324,000       7,658,000      809,000      6,849,000

Sandpiper Square, a Limited     Aulander,North
Partnership                     Carolina        219,000            219,000       949,000       1,190,000      166,000      1,024,000

Seneca Falls                    Seneca
East Apartments                 Falls, New
Company II, L.P.                York            270,000            270,000       893,000       1,220,000       61,000      1,159,000

Vernon Manor, L.P.              Vernon, Texas   161,000            161,000       764,000         905,000      118,000        787,000

Waterford Place,                Calhoun
a Limited                       Falls, South
Partnership                     Carolina        272,000            272,000     1,184,000       1,518,000      335,000      1,183,000

Yantis Housing, Ltd.            Yantis, Texas   145,000            145,000       630,000         838,000      122,000        716,000
                                           ------------         ----------  ------------    ------------- -----------   ------------
                                           $  7,448,000        $ 7,446,000  $ 25,512,000    $ 36,217,000  $ 5,600,000   $ 30,617,000
                                           ============         ==========  ============    ============  ============  ============
</TABLE>
                                       41
<PAGE>



WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2000
<TABLE>
<CAPTION>
                              --------------------------------------------------------------------------------------
                                                      For the year ended December 31, 1999
                              --------------------------------------------------------------------------------------
                                                                   Year Investment                Estimated Useful
      Partnership Name          Rental Income        Net Loss         Acquired         Status       Life (Years)
--------------------------------------------------------------------------------------------------------------------
<S>                                    <C>           <C>                <C>            <C>              <C>
Alpine Manor, L.P.                     $ 148,000     $   (26,000)       1994           Completed         40

Baycity Village Apartments,
Limited Partnership                      234,000         (60,000)       1994           Completed         30

Beckwood Manor Seven Limited
Partnership                              147,000         (47,000)       1993           Completed        27.5

Briscoe Manor Limited
Partnership                              161,000         (21,000)       1994           Completed        27.5

Evergreen Four Limited
Partnership                               78,000         (35,000)       1994           Completed        27.5

Fawn Haven Limited
Partnership                               87,000         (24,000)       1994           Completed        27.5

Fort Stockton Manor, L.P.                112,000         (22,000)       1994           Completed         40

Hidden Valley Limited
Partnership                              157,000         (24,000)       1994           Completed         40

HOI Limited Partnership Of
Lenoir                                   121,000         (51,000)       1993           Completed         40

Indian Creek Limited
Partnership                              145,000         (41,000)       1994           Completed        27.5

Laurel Creek Apartments                  166,000         (26,000)       1994           Completed        27.5

Madisonville Manor Senior
Citizens Complex, Ltd.                   105,000          (9,000)       1994           Completed         50

Mt. Graham Housing, Ltd.                 149,000         (64,000)       1994           Completed        27.5

Northside Plaza Apartments,
Ltd.                                     145,000         (20,000)       1994           Completed         50

Pampa Manor, L.P.                         99,000         (31,000)       1994           Completed         40

Regency Court Partners                   661,000        (220,000)       1994           Completed         40

Sandpiper Square, a Limited
Partnership                               98,000         (14,000)       1994           Completed         35

Seneca Falls East Apartments
Company II, L.P.                         141,000         (18,000)       1998           Completed         40
</TABLE>

                                       42
<PAGE>



WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2000
<TABLE>
<CAPTION>
                              --------------------------------------------------------------------------------------
                                                      For the year ended December 31, 1999
                              --------------------------------------------------------------------------------------
                                                                   Year Investment                Estimated Useful
      Partnership Name          Rental Income        Net Loss         Acquired         Status       Life (Years)
 -------------------------------------------------------------------------------------------------------------------
<S>                                       <C>            <C>            <C>            <C>               <C>
Vernon Manor, L.P.                        86,000         (12,000)       1994           Completed         40

Waterford Place, a Limited
Partnership                              122,000         (36,000)       1994           Completed         40


Yantis Housing, Ltd.                      74,000         (16,000)       1994           Completed         40
                                     -----------      -----------
                                     $ 3,236,000      $ (817,000)
                                     ===========      ===========
</TABLE>


                                       43
<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/ Wilfred N. Cooper, Jr.
     --------------------------
Wilfred N. Cooper, Jr., President
Chief Operating Officer of WNC & Associates, Inc.

Date: JUNE 06, 2002


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

Date: JUNE 06, 2002


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

Date: JUNE 06, 2002


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


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

Date: JUNE 06, 2002


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

Date: JUNE 06, 2002






<PAGE>



                             LAUREL CREEK APARTMENTS
                       (A California Limited Partnership)
                          AUDITED FINANCIAL STATEMENTS
                                DECEMBER 31, 2001












<PAGE>




                             LAUREL CREEK APARTMENTS
                          AUDITED FINANCIAL STATEMENTS
                                DECEMBER 31, 2001




                                TABLE OF CONTENTS
                                                                            Page

Independent Auditors' Report                                                   1

Balance Sheet                                                                  2

Statement of Income, Expenses and
         Changes in Partners' Capital                                          3

Statement of Cash Flows                                                        4

Notes to Financial Statements                                                  5








<PAGE>



                          INDEPENDENT AUDITORS' REPORT



To the Board of Directors
Laurel Creek Apartments
San Luis Obispo, California

We have audited the  accompanying  balance  sheet of Laurel Creek  Apartments (A
California  Limited  Partnership)  as of December 31, 2001 and December 31, 2000
and the  related  statements  of income,  expenses,  and  changes  in  partners'
capital, and cash flows for the years then ended. These financial statements are
the  responsibility of the Partnerships'  management.  Our  responsibility is to
express an opinion on these financial statements based on our audit.

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 provides a reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material  respects,  the financial position of Laurel Creek Apartments as of
December 31, 2001 and December 31, 2000,  and the results of its  operations for
the  years  then  ended  in  conformity  with  generally   accepted   accounting
principles.





February 7, 2002

<PAGE>





                             LAUREL CREEK APARTMENTS
                                  BALANCE SHEET
                           DECEMBER 31, 2001 AND 2000
<TABLE>
<CAPTION>
                                                                                2001                  2000
                                                                                ----                  ----

<S>                                                                    <C>                     <C>
ASSETS
CURRENT ASSETS
         Cash (Note 2)                                                 $          48,449       $        27,206
         Accounts receivable                                                       1,050                   863
         Prepaid expenses                                                          1,173                 1,149
                                                                        ----------------       ---------------
         TOTAL CURRENT ASSETS                                                     50,672                29,218

Restricted reserves (Note 3)                                                      32,419                27,619

Land, structures and equipment, net of
         accumulated depreciation of $533,911
         and $463,746 (Note 4)                                                 1,631,443             1,701,608

Organizational costs, net of accumulated
         amortization of $13,993 and
         $12,325 (Note 5)                                                         12,925                14,593
                                                                       -----------------       ---------------
         TOTAL ASSETS                                                  $       1,727,459       $     1,773,038
                                                                       =================       ===============
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES
         Accounts payable - other                                      $           8,614       $        10,580
         Accounts payable - related party (Note 7)                                 4,159                10,325
         Security deposits payable                                                 8,260                 7,486
         Current portion of long-term debt (Note 6)                               28,934                24,717
                                                                       -----------------        --------------
         TOTAL CURRENT LIABILITIES                                                49,967                53,108

Long-term debt (Note 6)                                                          581,668               611,326
                                                                       -----------------        --------------
         TOTAL LIABILITIES                                                       631,635               664,434

Partners' capital                                                              1,095,824             1,108,604
                                                                       ------------------       ---------------
         TOTAL LIABILITIES AND
              PARTNERS' CAPITAL                                        $       1,727,459       $     1,773,038
                                                                       ==================       ===============
</TABLE>


                             See accompanying notes.
                                       2
<PAGE>


                             LAUREL CREEK APARTMENTS
                        STATEMENT OF INCOME, EXPENSES AND
                          CHANGES IN PARTNERS' CAPITAL
                 FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000
<TABLE>
<CAPTION>


                                                                               2001                  2000
                                                                               ----                  ----

<S>                                                                   <C>                    <C>
OPERATING INCOME
         Rental income                                                $         180,345      $        165,469
         Tenant charges                                                             434                 3,874
         Other                                                                      169                     -
                                                                      -----------------      -----------------
         TOTAL OPERATING INCOME                                                 180,948               169,343
                                                                      -----------------      -----------------
OPERATING EXPENSES
         Administration                                                          18,645                17,996
         Insurance and taxes                                                      3,709                 4,464
         Maintenance                                                             22,867                38,924
         Utilities                                                               20,074                19,512
         Depreciation and amortization                                           71,833                72,716
                                                                      ------------------     -----------------
         TOTAL EXPENSES                                                         137,128               153,612
                                                                      ------------------     -----------------
         NET INCOME (LOSS) FROM OPERATIONS                                       43,820                15,731
                                                                      ------------------     -----------------
OTHER INCOME AND EXPENSES
         Interest income                                                          2,612                 1,620
         Interest expense                                                       (50,490)              (52,506)
                                                                      ------------------     -----------------
         NET OTHER INCOME UNDER EXPENSES                                        (47,878)              (50,886)
                                                                      ------------------     -----------------
         NET LOSS                                                                (4,058)              (35,155)

BEGINNING PARTNERS' CAPITAL                                                   1,108,604              ,147,135

Partner withdrawals                                                              (8,722)               (3,376)
                                                                      ------------------     -----------------
ENDING PARTNERS' CAPITAL                                              $        1,095,824     $      1,108,604
                                                                      ==================     =================
</TABLE>


                             See accompanying notes.
                                        3
<PAGE>


                             LAUREL CREEK APARTMENTS
                             STATEMENT OF CASH FLOWS
                      YEAR ENDED DECEMBER 31, 2001 AND 2000
<TABLE>
<CAPTION>


                                                                       2001                2000
                                                                       ----                ----
<S>                                                           <C>                      <C>
CASH FLOWS FROM OPERATING ACTIVITIES

         Net loss                                             $        (4,058)         $     (35,155)
         Adjustments to reconcile net loss to
             Net cash provided by operating activities
                  Depreciation and amortization                        71,833                 72,716
                  (Increase) decrease in:
                           Accounts receivable                           (187)                   368
Prepaid expenses                                                          (24)                  (438)
                           Restricted reserves                         (4,800)                (4,800)
                  Increase (decrease) in:
                           Accounts payable - other                    (1,966)                 2,095
                           Accounts payable - related parties          (6,166)               (10,027)
                           Security deposits payable                      774                    456
                                                              ------------------       --------------
         NET CASH PROVIDED BY
                  OPERATING ACTIVITIES                                 55,406                 25,215
                                                              ------------------       --------------

CASH FLOWS FROM FINANCING ACTIVITIES

         Capital withdrawals                                           (8,722)                (3,376)
         Payment of debt                                              (25,441)               (23,843)
                                                              ------------------       --------------
         NET CASH USED IN FINANCING ACTIVITIES                        (34,163)               (27,219)
                                                              ------------------       --------------
NET INCREASE (DECREASE) IN CASH                                        21,243                 (2,004)

CASH - BEGINNING OF YEAR                                               27,206                 29,210
                                                              ------------------       --------------
CASH - END OF YEAR                                            $        48,449          $      27,206
                                                              ==================       ==============
</TABLE>



                             See accompanying notes.
                                       4
<PAGE>


                             LAUREL CREEK APARTMENTS
                        NOTES TO THE FINANCIAL STATEMENTS
                                                  DECEMBER 31, 2001


Note 1 - DEFINITION OF REPORTING  ENTITY AND SUMMARY OF  SIGNIFICANT  ACCOUNTING
         POLICIES

          The Laurel Creek Apartments is a California Limited  Partnership which
          was formed on May 17, 1994. The  partnership  was formed to construct,
          acquire,  own, operate,  maintain,  manage,  lease, sell,  mortgage or
          otherwise  dispose of a 24 unit apartment  complex located in the City
          of San Luis Obispo, California.

          As of the  report  date  there are two  partners  in the  partnership,
          consisting of one general and one limited partner.

          Summary of Significant Accounting Policies

               a.   Basis of accounting

               The  partnership  is  accounted  for  on  the  accrual  basis  of
               accounting.  Under this method  revenues are recognized when they
               are earned and expenses are recognized when they are incurred.

               b.   Fixed assets and depreciation

               Fixed  assets  are  carried at cost.  Expenditures  for the fixed
               assets are  capitalized.  Maintenance  and repairs are charged to
               operations.  Depreciation is calculated  using the  straight-line
               basis over the estimated useful lives.

               c.   Income taxes

               Taxable  income or  expenses  and  related  tax  credits  are not
               reflected as expenses or credits of the partnership.  These items
               are the responsibilities of the individual partners.

                                       5
<PAGE>


                             LAUREL CREEK APARTMENTS
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2001

                                   (Continued)

Note 2 - CASH

          Cash consists of $47,658 deposited into savings or checking  accounts,
          and $791 is on  deposit  with the  State of  California  Local  Agency
          Investment  Fund. At December 31, 2001 the amount  deposited  into the
          savings accounts and the Local Agency  Investment Fund earned interest
          at rates from 3.30% to 3.52% respectively.

Note 3 - RESTRICTED CASH

          Restricted  cash  consists  of $32,419  maintained  in a money  market
          account  earning 3.30%.  This cash is reserved for the  replacement of
          structures and equipment.

Note 4 - LAND, STRUCTURES AND EQUIPMENT

          Property and equipment  and  accumulated  depreciation  consist of the
          following:
<TABLE>
<CAPTION>
                                                                                  Accumulated
                                                                   Cost           Depreciation

<S>                                                     <C>                <C>
               Land                                     $     275,000      $               -
               Building                                     1,868,634                512,420
               Equipment                                       21,720                 21,491

                                                        $   2,165,354      $         533,911
Note 5 - ORGANIZATION COSTS

    Organization costs and accumulated amortization consist of the following:


                                                                                   Accumulated
                                                                 Cost              Amortization

               Organization costs                       $      26,918      $          13,993
</TABLE>

                                       6
<PAGE>



                             LAUREL CREEK APARTMENTS
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2001

                                   (Continued)


Note 6 - NOTE PAYABLE

          The Agency has a mortgage  note  payable to the First Bank of San Luis
          Obispo.  The note requires  principal and interest  payments  totaling
          $6,381 each month until  9/1/2014.  The note bears  interest at 8% per
          annum. The following is a schedule of the debt payment requirements to
          maturity:

                    Year ending
                    December 31

                         2002                                   $         76,569
                         2003                                             76,569
                         2004                                             76,569
                         2005                                             76,569
                         2006                                             76,569
                         Thereafter                                      587,026

                             Total                                       969,871

                         Less amounts representing
                            interest                                     359,269

                                                                $        610,602

Note 7 - RELATED PARTIES

          The accounting and  administrative  functions of the  partnership  are
          performed  by  employees  of the Housing  Authority of the City of San
          Luis Obispo (the Authority). Two members of the general partner's (San
          Luis Obispo Nonprofit Housing Corporation) board of directors are also
          members of the board of commissioner's of the Housing Authority of the
          City of San Luis Obispo.

          At December 31, 2001 the partnership owed the Authority $4,159. During
          the year ended December 31, 2001, the  partnership  paid the Authority
          $17,337 in maintenance expenses and management fees.






                                       7
<PAGE>


Note 8 - LAND DONATION AND LEASE

          The land  upon  which  the  Laurel  Creek  Apartments  were  built was
          originally  leased  from the City of San Luis Obispo (the City) by the
          Housing Authority of the City of San Luis Obispo (the Authority). This
          lease  agreement was later assigned from the Authority to the San Luis
          Obispo Nonprofit Housing Corporation (the Corporation).  The lease was
          later assigned to the Laurel Creek Apartments Partnership. Each of the
          above  mentioned  agencies  have common board members or in some other
          manner have oversight  responsibilities  over the other organizations;
          which would qualify them as related parties.

          The lease expires on April 29, 2046.  The  provisions for extending or
          renewing the lease term are not specified and are contingent  upon the
          continuation of the project being used to provide  affordable  housing
          to lower income families. The annual lease payments are $1 per year.

          The  land was  recorded  on the  Agency's  books  of  accounts  at the
          appraised value on the date the land lease was assigned to the Agency.
          This  appraised  value  was  $275,000.  The value of the land was also
          recorded as a capital  contribution  from the general  partner on that
          date.

<PAGE>









                             Regency Court Partners
                             (A Limited Partnership)

                          Audited Financial Statements
                                December 31, 2001



<PAGE>






                                    CONTENTS





                                                                            Page

INDEPENDENT AUDITOR'S REPORT                                                 1-2
FINANCIAL STATEMENTS:
      Balance Sheets                                                         3-4
      Statements of Operations and Changes in Partners' Equity                 5
      Statements of Changes in Partners' Equity                                6
      Statements of Cash Flows                                               7-8
      Notes to Financial Statements                                         9-15
SUPPLEMENTARY INFORMATION:
      Supplemental Schedule of Expenses                                       16
      Supplemental Data Required by CHFA                                   17-19
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROLS                          20-21
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE
      WITH LAWS AND REGULATIONS                                               22
CERTIFICATION OF GENERAL PARTNER                                              23


<PAGE>









Partners
Regency Court Partners
Costa Mesa, California



                          INDEPENDENT AUDITOR'S REPORT


I have audited the  accompanying  balance  sheet of Regency  Court  Partners,  a
California  Limited  Partnership  (CHFA Project No. 92-002-S) as of December 31,
2000 and 2001, and the related statements of operations and changes in partners'
equity, and cash flows for the years then ended. These financial  statements are
the  responsibility  of the  partnership's  management.  My responsibility is to
express an opinion on these financial statements based on my audits.

I conducted my audits in accordance with auditing  standards  generally accepted
in the United States,  Government  Auditing  Standards issued by the Comptroller
General of the United  States,  and the standards  for financial and  compliance
audits  contained  in  California   Housing  Finance  Agency  Audited  Financial
Statements Handbook (revised December 1991). Those standards require that I plan
and  perform  the  audits 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.  I believe  that my
audits provide a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all
material  respects,   the  financial  position  of  Regency  Court  Partners,  a
California  Limited  Partnership  (RHCP Project No. 92-002-S) as of December 31,
2000 and 2001,  and the  results  of its  operations  and its cash flows for the
years then ended in conformity with accounting  principles generally accepted in
the United States.

My audit was  conducted  for the purpose of forming an opinion on the  financial
statements taken as a whole. The accompanying supplementary information shown on
pages 16 to 19 is presented for the purpose of additional  analysis and is not a
required part of the basic financial  statements of Regency Court Partners (RHCP
Project No.  92-002-S).  Such  information  has been  subjected  to the auditing
procedures  applied in the audit of the basic  financial  statements  and, in my
opinion,  is fairly stated in all material respects in relation to the financial
statements taken as a whole.




<PAGE>


Regency Court Partners
CHFA Project No. 92-002-S
Independent Auditor's Report, December 31, 2001
Page 2




     In accordance with Government Auditing Standards, I have also issued a
report  dated  March 4, 2002 on my  consideration  of  Regency  Court  Partners'
internal  control  structure and a report dated March 4, 2002 on its  compliance
with laws and regulations.

     The accompanying financial statements have been prepared assuming that the

Partnership  will  continue as a going  concern.  As  discussed in Note 2 to the
financial  statements,  the  Partnership  has suffered  recurring  losses and an
ongoing  need for capital  infusion to meet normal  financial  obligations  that
raise  substantial  doubt  about its  ability to  continue  as a going  concern.
Management's  plans in regard to these matters are also described in Note 2. The
accompanying  financial  statements  do not include any  adjustments  that might
result from the outcome of this uncertainty.



                                                     /s/JACK GILK
                                                        JACK GILK

March 4, 2002                                          33-0724657





               See the accompanying notes to financial statements.
               ---------------------------------------------------
                                       2
<PAGE>


                             REGENCY COURT PARTNERS
                            CHFA Project No. 92-002-S
                       (A California Limited Partnership)
--------------------------------------------------------------------------------
                   BALANCE SHEETS, DECEMBER 31, 2000 AND 2001
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>

                                   A S S E T S



                                                                           2001                    2000
                                                                       -------------           -------------
<S>                                                                    <C>                     <C>
Current Assets:
     Operating cash and equivalents                                    $       4,235           $      13,111
     Tenant security deposit cash                                             25,643                  24,232
     Tenant accounts receivable                                                  111                   1,032
     Other accounts receivable                                                     -                     330
     Prepaid expenses                                                         10,415                   9,188
     Tax impound account                                                      72,381                  69,067
     Hazard insurance impound account                                          9,768                   8,982
     Earthquake insurance impound account                                      9,308                  16,670
                                                                       -------------           -------------
              Total current assets                                           131,861                 142,612
                                                                       -------------           -------------

Property, Building and Equipment, At Cost:
     Building and improvements                                             7,703,983               7,703,983
     Equipment                                                                 3,572                   3,572
                                                                       -------------           -------------
                                                                           7,707,555               7,707,555
     Accumulated depreciation                                             (1,200,085)             (1,003,794)
                                                                         -----------           -----------
              Property, building, and equipment - net                      6,507,470               6,703,761
                                                                       -------------           -------------

Other Assets:
     Replacement reserve                                                     105,628                  96,452
     CHFA partner suspense account                                            51,191                  48,934
     Unamortized deferred costs                                               26,415                  33,018
                                                                       -------------           -------------
              Total other assets                                             183,234                 178,404
                                                                       -------------           -------------

                                                                          $6,822,565              $7,024,777
                                                                          ==========              ==========
</TABLE>

               See the accompanying notes to financial statements.
               ---------------------------------------------------
                                       3
<PAGE>



Regency Court Partners
CHFA Project No. 92-002-S
Balance Sheets, December 31, 2000 and 2001
Page 2
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------



                        LIABILITIES AND PARTNERS' EQUITY


                                                                           2001                    2000
                                                                       -------------           -------------
<S>                                                                    <C>                     <C>
Current Liabilities:
     Current portion of mortgage payable                               $      71,918           $      67,170
     Accounts payable                                                          7,712                   6,708
     Tenant security trust liability                                          24,237                  23,597
     Accrued interest                                                         23,941                  24,325
     Accrued other                                                             2,525                       -
     Unearned rental income                                                      242                   4,119
                                                                       -------------           -------------
              Total current liabilities                                      127,900                 125,919

Long-term Debt:
     Accrued property tax                                                    346,612                 346,612
     Accrued interest                                                        192,828                 165,828
     Accrued expenses                                                        167,000                 167,000
     Mortgage payable, less current portion                                4,122,179               4,194,098
     Other note payable                                                      894,900                 894,900

Partners' equity                                                             968,471               1,130,420
                                                                       -------------           -------------

                                                                       $   6,822,565           $   7,024,777
                                                                       =============           =============
</TABLE>

               See the accompanying notes to financial statements.
               ---------------------------------------------------
                                       4
<PAGE>


                             REGENCY COURT PARTNERS
                            CHFA Project No. 92-002-S
                       (A California Limited Partnership)
--------------------------------------------------------------------------------
                      STATEMENTS OF OPERATIONS AND CHANGES
       IN PARTNERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2000 AND 2001
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>

                                                                           2001                    2000
                                                                       -------------           -------------
<S>                                                                    <C>                     <C>
Revenue:
     Tenant gross potential rents                                      $     568,837           $     597,724
     Rental assistance                                                        92,711                  77,168
     Excess assistance                                                         5,026                       -
     Less vacancies                                                           (9,388)               (18,143)
                                                                         ------------           -------------
     Net rental income                                                       657,186                 656,749
     Laundry and vending income                                                7,000                   7,076
     Tenant charges income                                                       270                     971
     Interest income                                                          11,847                  12,952
                                                                         ------------           -------------
              Total revenues                                                 676,303                 677,748
                                                                         ------------           -------------

Expenses:
     Payroll and related costs                                                83,566                  73,267
     Administrative                                                           70,223                  72,827
     Utilities                                                                65,938                  57,763
     Operating and maintenance                                                74,435                  67,066
     Insurance and taxes                                                      24,765                  22,781
     Interest                                                                316,430                 320,891
     Depreciation                                                            202,895                 201,666
                                                                        -------------           -------------
              Total expenses                                                 838,252                 816,261
                                                                        -------------           -------------

Net loss before extraordinary items                                         (161,949)               (138,513)

Extraordinary items:
     Prior years adjustment to CDC note payable                                    -                  28,218
     Reduction of prior years property tax accrual                                 -                  48,000
                                                                        -------------           -------------

Net Loss                                                                    (161,949)                (62,295)

Partners' equity - beginning                                               1,130,420               1,192,715
                                                                        -------------           -------------

Partners' equity - ending                                              $     968,471           $   1,130,420
                                                                        =============           =============
</TABLE>



               See the accompanying notes to financial statements.
               ---------------------------------------------------
                                       5
<PAGE>



                             REGENCY COURT PARTNERS
                            CHFA Project No. 92-002-S
                       (A California Limited Partnership)
--------------------------------------------------------------------------------
                    STATEMENTS OF CHANGES IN PARTNERS' EQUITY
                 FOR THE YEARS ENDED DECEMBER 31, 2000 AND 2001
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>

                                           Old                New
                                         General            General            Limited
                                         Partner            Partner            Partner             Total
                                      -------------     --------------     -------------      --------------

<S>                                   <C>               <C>              <C>                 <C>
Balance - December 31, 1999           $     729,544     $      (5,816)   $      468,987      $     1,192,715

Net Loss - 2000                                   -              (623)          (61,672)             (62,295)
                                      -------------     --------------    --------------      ---------------

Balance - December 31, 2000                 729,544            (6,439)          407,315            1,130,420

Net Loss - 2001                                   -            (1,619)         (160,330)            (161,949)
                                      -------------     --------------    --------------      ---------------

Balance - December 31, 2001           $     729,544     $      (8,058)   $      246,985      $       968,471
                                      =============     ==============    ==============      ===============

Profit and loss percentage
       at December 31, 2001                 0%                 1%                99%               100%
                                      =============     ===============   ==============      ===============
</TABLE>

               See the accompanying notes to financial statements.
               ---------------------------------------------------
                                       6
<PAGE>


                             REGENCY COURT PARTNERS
                            CHFA Project No. 92-002-S
                       (A California Limited Partnership)
--------------------------------------------------------------------------------
                            STATEMENTS OF CASH FLOWS
                 FOR THE YEARS ENDED DECEMBER 31, 2000 AND 2001
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>

                                                                            2001                    2000
                                                                        ------------             -----------
<S>                                                                     <C>                      <C>
Cash flows from operating activities:
     Rental receipts                                                    $    547,471             $   568,802
     Tenant assistance payments                                               92,711                  77,168
     Interest receipts                                                           684                   1,084
     Other receipts                                                            7,270                   8,047
     Payments to suppliers and employees:
         Administrative expenses                                             (21,772)                (17,065)
         Management fees                                                     (52,185)                (53,606)
         Utilities                                                           (65,938)                (64,356)
         Salaries and wages                                                  (53,344)                (46,531)
         Operating and maintenance                                           (68,068)                (71,720)
         Payroll taxes                                                        (5,304)                 (4,382)
         Property insurance                                                  (21,425)                (19,446)
         Miscellaneous taxes and insurance                                   (14,212)                (12,402)
         Interest on mortgage                                               (289,814)               (289,199)
         Tenant security deposits                                              ( 771)                   (635)
                                                                       -------------             -----------
              Net cash provided by operating activities                       55,303                  75,759
                                                                       -------------             -----------

Cash flows from investing activities:
     Deposits to reserve, including interest                                 (37,612)                (38,332)
     Withdrawals from reserve                                                 28,436                  63,124
     Reserve interest                                                         11,163                   5,332
     Funding of tax and insurance impound - net                                1,005                  (5,955)
     Capital expenditures                                                          -                 (49,224)
                                                                       -------------             -----------
         Net cash used in investing activities                                 2,992                 (25,055)
                                                                       -------------             -----------

Cash flow used in financing activities -
     Mortgage principal payments                                             (67,171)                (67,784)
                                                                       -------------             -----------

Net increase (decrease) in cash                                               (8,876)                (17,080)
Cash at beginning of year                                                     13,111                  30,191
                                                                       -------------             -----------

Cash at end of year                                                    $       4,235             $    13,111
                                                                       =============             ===========
</TABLE>

               See the accompanying notes to financial statements.
               ---------------------------------------------------
                                       7
<PAGE>



Regency Court Partners
CHFA Project No. 92-002-S
Statements of Cash Flows, December 31, 2000 and 2001
Page 2

--------------------------------------------------------------------------------



                           Reconciliation of Net Loss
                  to Net Cash Provided by Operating Activities
<TABLE>
<CAPTION>



                                                                            2001                   2000
                                                                       -------------           -------------

<S>                                                                     <C>                      <C>
Net Loss                                                                $   (161,949)            $   (62,295)
Adjustments to reconcile net loss to net cash
     Provided by operating activities:
     Depreciation and amortization                                           202,894                 201,665
     Decrease (increase) in:
         Security deposit cash                                                (1,411)                 (1,098)
         Receivables                                                           1,251                  (1,362)
         Prepaids                                                             (1,227)                 (2,876)
     Increase (decrease) in:
         Payables                                                              1,004                  (5,885)
         Security deposit liability                                              640                     463
         Accrued interest                                                     26,616                  31,692
         Other accruals                                                        2,525                       -
         Unearned income                                                      (3,877)                  3,541
     Reserve and impound interest earned                                     (11,163)                (11,868)
     Extraordinary items                                                           -                 (76,218)
                                                                        ------------             -----------

Net cash provided by operating activities                               $     55,303             $    75,759
                                                                        ============             ===========
</TABLE>

               See the accompanying notes to financial statements.
               ---------------------------------------------------

                                       8
<PAGE>







                             REGENCY COURT PARTNERS
                            CHFA Project No. 92-002-S
                       (A California Limited Partnership)
--------------------------------------------------------------------------------
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2001
--------------------------------------------------------------------------------



1.   ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Organization:  Regency Court Partners is a California  limited  partnership
     formed in 1992 to acquire an interest in real property located in Monrovia,
     California and to construct and operate thereon an apartment complex of 115
     units for low-income  senior citizens.  Mortgage  financing was provided by
     the California  Housing Finance Agency (CHFA).  Such projects are regulated
     under  the  terms of a  Regulatory  Agreement  with  CHFA,  including  rent
     charges, operating methods and other matters.

     Capitalization   and   Depreciation:   Assets  are  recorded  at  cost  and
     depreciated  for  financial  accounting  purposes  using the  straight-line
     method over their estimated  useful lives.  The principal  estimated useful
     lives  used in  computing  the  depreciation  provisions  are 40 years  for
     building and 10 years for  equipment The policy of the project is to charge
     amounts  expended  for  maintenance,  repairs,  and minor  replacements  to
     expense,  and  to  capitalize   expenditures  for  major  replacements  and
     betterments.

     Deferred Costs: Deferred costs, comprised substantially of tax credit fees,
     are amortized over their estimated useful life of ten years.

     Cash and Cash  Equivalents:  For  purposes of  reporting  cash flows,  cash
     includes unrestricted cash in bank, cash on hand, savings accounts, and all
     certificates of deposit with original maturities of three months or less.

     The Partnership maintains its cash in bank deposit accounts, which at times
     may exceed  federally  insured limits.  The Partnership has not experienced
     any losses in such accounts.  The Partnership believes it is not exposed to
     any significant credit risk on cash and cash equivalents.

     Estimates:  The  preparation  of financial  statements in  conformity  with
     generally  accepted  accounting  principles  requires  management  to  make
     estimates and assumptions  that affect:  (1) the reported amounts of assets
     and  liabilities  and  disclosure  of  contingencies  at  the  date  of the
     financial statements, and (2) the reported amounts of revenues and expenses
     during  the  reporting  period.  Actual  results  could  differ  from those
     estimates.

     Rental Income and Unearned Rents: The Partnership  rents apartment units on
     a month to  month  basis  and  recognizes  revenues  when  earned.  Advance
     receipts of rents are classified as liabilities until earned.

                                       9
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<PAGE>


Regency Court Partners
CHFA Project No. 92-002-S
Notes to Financial Statements, December 31, 2001
Page 2

--------------------------------------------------------------------------------


     Income  Taxes:  No provision is made for income taxes since such taxes,  if
     any, are the liability of the individual partners.

     Reclassifications:  Certain  reclassifications  have  been made to the 1999
     financial statements to conform with the 2000 presentation.

2.   GOING CONCERN AND PROPERTY TAX LIABILITY

     The accompanying financial statements have been prepared assuming the
     Partnership will continue as a going concern which contemplates the
     realization of assets and the satisfaction of liabilities in the normal
     course of business. A number of factors including recurring losses and a
     working capital deficiency raise substantial doubt about the Partnership's
     ability to continue as a going concern.

     The  Partnership  has not  received  real  property  tax  bills  since  the
     inception  of its land lease in 1994,  and  accordingly,  has not paid real
     property  taxes since that date. The  Partnership  has applied for property
     tax exemption,  under the California welfare  organization  exemption,  for
     1999 and 1998  property  tax.  The  Partnership  has  also  requested  that
     property  taxes  from June 1995  through  December  1997,  be  abated.  The
     Partnership  believes that it will receive the abatement for 1999, 1998 and
     future  taxes due to the  non-profit  status  of its  general  partner.  In
     addition,  the  Partnership is optimistic  about receiving an abatement for
     the property  taxes for the period June 1995 through  December  1997, as it
     had a non-profit general partner during that time period.

     Communications   with   governmental   authorities   indicate   application
     processing is three to five years behind.  However,  authorities state that
     tax  exemption  will  likely  be  granted.  In  December  of 2000 the first
     applications were returned as accepted for the tax periods 99-00 and 00-01.
     Accordingly,  one-half of the 1999  property tax accrual has been  reversed
     and no accrual has been made for the year 2000.

     These financial  statements  reflect a liability of $346,612 as of December
     31, 2001 and 2000 for unbilled/unpaid property taxes. The liability will be
     reduced when future tax  exemptions  are received.  Cash generated from the
     Partnership's  operations  has not been  sufficient  enough to pay such tax
     liability.



                                       10
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<PAGE>


Regency Court Partners
CHFA Project No. 92-002-S
Notes to Financial Statements, December 31, 2001
Page 3

--------------------------------------------------------------------------------


     If an abatement  for prior years' taxes is not  obtained,  the  Partnership
     will seek to  negotiate a 5 year  payment  plan  during  which to pay those
     taxes. If the Partnership is unsuccessful,  it may request additional funds
     from the limited partner to satisfy this obligation.  However,  the limited
     partner is under no obligation to contribute  any additional  amounts.  The
     Partnership  believes the abatement of property  taxes,  if obtained,  will
     enable the Partnership to fund its on-going operations.

     The  Partnership's  continued  existence is  dependent  upon its ability to
     resolve its liquidity  problems,  principally  by obtaining an abatement of
     real property  taxes and/or  obtaining  additional  equity  capital.  While
     pursuing  the  tax  abatement  and/or   additional   equity  funding,   the
     Partnership  must  continue  to  operate  on  limited  cash flow  generated
     internally.

     The  financial  statements do not include any  adjustments  relating to the
     recoverability  and  classification  of liabilities that might be necessary
     should  the  Partnership  be unable to  continue  as a going  concern.  The
     Partnership's continuation as a going concern is dependent upon its ability
     to general  sufficient cash flow to meet its obligations on a timely basis,
     to comply with the terms of its financing  agreement,  to obtain additional
     financing or  refinancing  as may be  required,  and  ultimately  to attain
     profitability.

3.   EXTRAORDINARY ITEMS

     Prior Years  Adjustment to CDC Note Payable and Related  Accrued  Interest:
     Communication with Community Development Commission,  County of Los Angeles
     (CDC)  confirmed  that the balance of the note payable at December 31, 2000
     was $894,900.  Balance in the December 31, 1999  financial  statements  was
     $899,950 - a difference of $5050. In addition, accrued interest on the note
     payable was  confirmed as $165,828 at December 31, 2000.  Interest  expense
     for the  2000  year on the  CDC  note  payable  is  appropriately  $27,000.
     Accordingly,  the adjustment of $23,168 to prior years accrued interest was
     treated as an extraordinary item as is the adjustment to the balance of the
     note payable. Total items related to CDC note payable amount to $28,218.

     Prior Years  Adjustment to Accrued  Property Tax: During the year 2000, tax
     exemptions  were  received for the 99-00 and 00-01 tax years.  Accordingly,
     one-half of the prior 1999  accrual for  property  tax was  reversed and is
     being reported as an extraordinary item.

                                       11
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<PAGE>


Regency Court Partners
CHFA Project No. 92-002-S
Notes to Financial Statements, December 31, 2001
Page 4


--------------------------------------------------------------------------------

4.   RESTRICTED FUNDS

     As required by the  Regulatory  Agreement  with CHFA,  the  Partnership  is
     required to make  monthly  impound  deposits to cover  insurance  premiums,
     property  taxes and to  maintain  an  operating  reserve  and a reserve for
     replacements.  These  restricted  funds are held by, and  expenditures  are
     subject to,  supervision  and approval by CHFA.  The  operating  reserve is
     funded by a letter of credit.

5.   MORTGAGE PAYABLE

     California  Housing  Finance Agency 6.85% real estate  mortgage  payable in
     monthly installments of $29,749,  including interest.  Final payment is due
     in the year 2025. The mortgage may not be paid in advance without  approval
     of CHFA,  nor may the  building be sold,  demolished  or  alterations  made
     without CHFA's prior approval.                                  $4,194,097

     Less current portion                                               (71,918)
                                                                      ----------
                                                                     $4,122,179

     Principal amounts maturing for the next five years are:

         2002                   $71,918
         2003                    77,002
         2004                    82,446
         2005                    88,274
         2006                    94,514



                                       12
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<PAGE>


Regency Court Partners
CHFA Project No. 92-002-S
Notes to Financial Statements, December 31, 2001
Page 5

--------------------------------------------------------------------------------


6.   OTHER NOTE PAYABLE

     Community   Development   Commission,   County  of  Los  Angeles  (CDC)  3%
     construction   loan  secured  by  second   trust  deed  on  buildings   and
     improvements.  Payments made to the extent there are residual receipts.  In
     the event that  residual  rental  receipts are  available in any year,  70%
     thereof  shall  be paid to the  holder  of the  construction  loan  and the
     remaining  30% balance will be paid to the CDC as rent on the ground lease.
     Upon payment of $750,000 of the outstanding  balance,  3.4% of the residual
     rental  receipts  shall be paid to the CDC as repayment  of  principal  and
     interest.  All  unpaid  amounts  will be due and  payable in the year 2025.
     Accrued interest is $192,828 at December 31, 2001.                 $894,900

7.   RELATED PARTY TRANSACTIONS

     The Regulatory  Agreement with CHFA limits the maximum annual distributions
     to  partners.  Such  distributions  are payable  only from surplus cash (as
     defined),  but accumulate and may be distributed to the extent surplus cash
     is  generated  from future  operations.  No surplus  cash was  available at
     December 31, 2001 and 2000.

     Capital Contributions: The limited partner, WNC Housing Tax Credit Fund IV,
     L.P.  Series  I, a 99%  limited  partner,  is  required  to make a  capital
     contribution  of  $1,691,585,  in  amounts  and at times as  stated  in the
     Limited Partnership Agreement. The limited partner's cash contributions may
     be reduced to account for reduced tax benefits,  if any. As of December 31,
     2001, the limited partner has contributed $1,641,782.

     Profit or Loss Allocations: All items included in the calculation of income
     or loss not arising from a sale or refinancing,  and all tax credits, shall
     be allocated 99% to the limited partner and 1% to the general partner.


                                          13
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<PAGE>


Regency Court Partners
CHFA Project No. 92-002-S
Notes to Financial Statements, December 31, 2001
Page 6

--------------------------------------------------------------------------------


     Cash  Distributions:   Residual  rental  receipts,  as  defined,  shall  be
     distributed as follows:

     (i) 70% to the CDC until $750,000 of the construction loan has been repaid;
     3.4% thereafter;

     (ii) 30% to the CDC as payment under the ground lease;

     (iii)The  remaining  residual  rental  receipts shall be distributed to the
     Partners in proportion to their partnership interests.

     Distribution of sale or refinancing proceeds, as defined,  shall be made in
     accordance with the Limited Partnership Agreement.

     A monthly asset management fee is payable to the general  partner.  Fees of
     $22,383 and $20,700 were incurred for the years 2001 and 2000 respectively.

     An  affiliate  of one of the  former  general  partners  provided  property
     management services to the Partnership from January 1996 to September 1997.
     Such  services are now  provided by an  affiliate  of the limited  partner.
     Included in  long-term  accrued  expenses at December 31, 2001 and December
     31, 2000 is $88,000 of management fees payable to such entity.

     An affiliate of the limited partner provides property  management  services
     to the Partnership.  Property  management fees were $32,657 and $32,576 for
     the years 2001 and 2000, respectively.

8.   COMMITMENTS AND CONTINGENCIES

     Purchase Option: On January 4, 1994, the Partnership executed a Disposition
     and  Development  Agreement with the CDC. The  Disposition  and Development
     Agreement grants the Partnership the option to purchase the Rental Property
     under  construction  commencing  on the  first  day of the 15th year of the
     ground  lease and  ending  on the last day of the 20th  year of the  ground
     lease.  The purchase  price will be the future value of the CDC's  original
     interest in the Rental Property under  construction based on an 8% annually
     compounded  return,  less any payments made by the  Partnership  related to
     interest.

     Ground Lease: On January 4, 1994, the  Partnership  executed a Ground Lease
     Agreement with the CDC.  Future minimum rental payments on the ground lease
     are based on 30% of residual rental receipts,  as defined, and will be paid
     annually  through  2049.  No  payments  were made  during  the years  ended
     December 31, 2001 and 2000.

                                       14
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<PAGE>


Regency Court Partners
CHFA Project No. 92-002-S
Notes to Financial Statements, December 31, 2001
Page 7

--------------------------------------------------------------------------------


9.   CURRENT VULNERABILITY DUE TO CERTAIN CONCENTRATIONS

     The  Partnership's  sole  asset  is  a  115-unit  apartment  complex.   The
     Partnership's  operations are  concentrated in the multifamily  real estate
     market  In  addition,  the  Partnership  operates  in a  heavily  regulated
     environment.   The   operations   of  the   project   are  subject  to  the
     administrative  directives,  rules and  regulations  of federal,  state and
     local  regulatory  agencies,  including,  but not  limited  to  CHFA.  Such
     administrative  directives,  rules and regulations are subject to change by
     an act of congress,  the State of  California or an  administrative  change
     mandated by CHFA.  Such changes may occur with little  notice or inadequate
     funding to pay for related costs,  including the additional  administrative
     burden, to comply with a change.

                                       15
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