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

                                   Exceptions
                                   ----------

The financial statements are presented as unaudited in the Form 10-K as of March
31,  2005 and 2004 and for the three years ended March 31, 2005 as the Report of
the Independent  Registered Public Accounting Firm could not be filed within the
prescribed  time period because the issuer was not able to obtain audit opinions
which refer to the auditing standards of the Public Company Accounting Oversight
Board  (United  States)  (PCAOB) of property  partnerships,  in which the issuer
holds  noncontrolling  limited  partner  interests.   The  non-affiliated  local
operating  partnership  general  partners engage the  accountants  auditing each
local operating partnership.

Historically,  the  audits,  and the  reports  thereon,  of the local  operating
partnerships  were  performed in accordance  with  Generally  Accepted  Auditing
Standards (GAAS).

On May 11,  2005 draft  guidance  was issued by the  Public  Company  Accounting
Oversight  Board which was  confirmed  on June 24, 2005 by the AICPA  Center for
Public Company Audit Firms,  that clearly  establishes  the  requirement for the
audit  reports of the  operating  partnerships  of a Public Fund to refer to the
auditing standards of the PCAOB.

The audits of the operating  partnerships  were performed  primarily  during the
months of January,  February and March and refer to Generally  Accepted Auditing
Standards. We have all appropriate originally signed opinions from the operating
partnerships; however, they do not refer to the auditing standards of the Public
Company Accounting Oversight Board.

Our independent  registered public accounting firm has performed an audit of the
registrant  but cannot issue an opinion in accordance  with the standards of the
Public Company  Accounting  Oversight Board (United States).  Therefore,  we are
filing our 10-K as "UNAUDITED" as it is without an audit opinion.



<PAGE>




                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-K

    (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, 2005

                                       OR

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


             For the transition period from __________ to __________

                         Commission file number: 0-26048

                 WNC HOUSING TAX CREDIT FUND IV, L.P., Series 1
             (Exact name of registrant as specified in its charter)

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

    17782 Sky Park Circle                                      92614-6404
    Irvine, CA                                                 (Zip Code)
    (Address of principal executive offices)

                                       (714) 662-5565
                                      (Telephone number)

           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
                                (Title of Class)

    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___ No_X_




<PAGE>


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

Indicate by check mark whether the registrant is an accelerated filer.
Yes      No   X
   -----    -----

State the aggregate market value of the voting and non-voting common equity held
by non-affiliates  computed by reference to the price at which the common equity
was last sold, or the average bid and asked price of such common  equity,  as of
the last business day of the registrant's most recently  completed second fiscal
quarter.

                                  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 or membership  interests in limited  partnerships or limited liability
companies  ("Local  Limited   Partnerships")   which  own  multi-family  housing
complexes  that are  eligible  for Federal  low-income  housing  and, in certain
cases, California low-income housing tax credits ("Low Income Housing Credits").

The general partner of the Partnership is WNC Tax Credit Partners IV, L.P. ("TCP
IV"  or  the  "General  Partner").  The  general  partner  of  TCP  IV is  WNC &
Associates,  Inc. ("Associates").  The chairman and president of Associates owns
substantially  all 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."

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

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  owns and  operates  a  multi-family
housing  complex  (the  "Housing  Complexes")  which  qualify for the Low Income
Housing Credits.  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 California Low Income Housing Credit
to be used against  California  taxes  otherwise due in each year of a four-year
period. Each 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,  dated May 4, 1993, (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, 2005, 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.

Certain Risks and Uncertainties

An investment in the  Partnership  and the  Partnership's  investments  in Local
Limited  Partnerships  and their Housing  Complexes are subject to risks.  These
risks may impact the tax benefits of an investment in the  Partnership,  and the
amount of proceeds  available for distribution to the Limited Partners,  if any,
on liquidation of the Partnership's investments. Some of those risks include the
following:

The Low Income  Housing  Credit rules are extremely  complicated.  Noncompliance
with these rules  results in the loss of future Low Income  Housing  credits and
the  fractional  recapture  of Low Income  Housing  Credits  already  taken.  An
individual  Limited  Partner's  ability to use tax credits is  limited.  In most
cases,  the  annual  amount of Low Income  Housing  Credits  that an  individual
Limited Partner can use is limited to the tax liability due on the person's last
$25,000 of taxable  income.  Low Income Housing Credits may be the only material
benefit from the  Partnership  because  Limited  Partners may not get back their
capital.  Any  transactions  between  the  Partnership  and  Associates  and its
affiliates will entail conflicts of interest.

The Partnership has invested in a limited number of Local Limited  Partnerships.
Such  limited  diversity  means that the  results of  operation  of each  single
Housing  Complex  will have a greater  impact on the  Partnership.  With limited
diversity,   poor   performance   of  one  Housing   Complex  could  impair  the
Partnership's ability to satisfy its investment objectives. Each Housing Complex
is subject to mortgage  indebtedness.  If a Local Limited  Partnership failed to
pay its  mortgage,  it  could  lose  its  Housing  Complex  in  foreclosure.  If
foreclosure  were to occur during the first 15 years,  the loss of any remaining
future Low Income  Housing  Credits,  and a  fractional  recapture  of prior Low
Income Housing Credits,  would occur. At any time, a foreclosure would result in
a loss of the Partnership's  investment in the Housing Complex.  The Partnership
is a limited partner or non-managing  member of each Local Limited  Partnership.
Accordingly,  the  Partnership  will have very  limited  rights with  respect to
management of the Local Limited Partnerships.  The Partnership will rely totally
on the Local General Partners.  Neither the  Partnership's  investments in Local
Limited Partnerships, nor the Local Limited Partnerships' investments in Housing
Complexes,  are 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 interests in Local Limited Partnerships; limitations
on removal of Local  General  Partners;  limitations  on subsidy  programs;  and
possible changes in applicable regulations. Uninsured casualties could result in
loss of property  and Low Income  Housing  Credits and  recapture  of Low Income
Housing Credits  previously  taken. The value of real estate is subject to risks
from fluctuating  economic conditions,  including  employment rates,  inflation,
tax, environmental,  land use and zoning policies,  supply and demand of similar
properties, and neighborhood conditions, among others.

The  ability of Limited  Partners to claim tax losses  from the  Partnership  is
limited.  The IRS may audit the  Partnership or a Local Limited  Partnership and
challenge  the tax  treatment  of tax items.  The  amount of Low Income  Housing
Credits and tax losses allocable to the Limited Partners could be reduced if the
IRS were  successful  in such a  challenge.  The  alternative  minimum tax could
reduce tax benefits from an investment in the  Partnership.  Changes in tax laws
could also impact the tax benefits from an investment in the Partnership  and/or
the value of the Housing Complexes.

There are limits on the transferability of Units, including a prohibition on the
transfer of more than 50% of the Units in a 12-month  period.  No trading market
for the Units exists or is expected to develop.  Limited  Partners may be unable
to sell their Units except at a discount and should consider their Units to be a
long-term investment.  Individual Limited Partners will have no recourse if they
disagree with actions authorized by a vote of the majority of Limited Partners.

Substantially  all of the Low Income Housing Credits  anticipated to be realized
from the Local Limited Partnerships have been realized. The Partnership does not
anticipate  being  allocated a significant  amount of Low Income Housing Credits
from the Local  Limited  Partnerships  in the  future.  Until the Local  Limited
Partnerships  have completed the 15 year Low Income  Housing  Credit  compliance
period risks exist for potential recapture of prior low Income Housing Credits.


                                       4


<PAGE>

Anticipated  future and  existing  cash  resources  of the  Partnership  are not
sufficient   to  pay  existing   liabilities   of  the   Partnership.   However,
substantially all of the existing  liabilities of the Partnership are payable to
the General  Partner and/or its  affiliates.  Though the amounts  payable to the
General Partner and/or its affiliates are contractually  currently payable,  the
Partnership  anticipates that the General Partner and/or its affiliates will not
require the payment of these contractual  obligations until capital reserves are
in excess of the aggregate of then  existing  contractual  obligations  and then
anticipated future foreseeable  obligations of the Partnership.  The Partnership
would be adversely  affected  should the General  Partner  and/or its affiliates
demand current  payment of the existing  contractual  obligations and or suspend
services for this or any other reason.

Exit Strategy

The IRS  compliance  period for  low-income  housing  tax credit  properties  is
generally  15  years  following   construction  or  rehabilitation   completion.
Associates was one of the first in the industry to offer syndicated  investments
in Low Income  Housing  Credits.  The  initial  programs  are  completing  their
compliance periods.

With that in mind, the Partnership is continuing its review of the Partnership's
holdings,  with special emphasis on the more mature  properties  including those
that have satisfied the IRS compliance  requirements.  The review considers many
factors,  including extended use requirements on the property (such as those due
to mortgage restrictions or state compliance  agreements),  the condition of the
property,  and the tax consequences to the Limited Partners from the sale of the
property.

Upon identifying  those  properties with the highest  potential for a successful
sale,  refinancing  or  syndication,  the  Partnership  expects to proceed  with
efforts to liquidate those properties.  The objective is to maximize the Limited
Partners' return wherever possible and, ultimately, to wind down the Partnership
when it no longer  provides tax  benefits to Limited  Partners.  However,  Local
Limited  Partnership  interests may be disposed at any time by Associates in its
discretion.  To date no  properties  in the  Partnership  have been selected for
disposition.

Item 2.  Properties

Through its investments in Local Limited  Partnerships,  the  Partnership  holds
indirect  ownership  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:

                                       5



<PAGE>
<TABLE>
<CAPTION>



                                                  -------------------------------  -------------------------------------------------
                                                       As of March 31, 2005                 As of December 31, 2004
                                                  -------------------------------  -------------------------------------------------
                                                                                                           Estimated     Mortgage
                                                    Partnership's                                          Aggregate     Loans of
                                    General         Total Investment   Amount of                           Low Income    Local
Local Limited                       Partner         in Local Limited   Investment      Number              Housing       Limited
Partnership Name     Location       Name            Partnership        Paid to Date   of Units  Occupancy  Credits(1)    Partnership
------------------------------------------------------------------------------------------------------------------------------------
<S>                 <C>            <C>              <C>               <C>               <C>      <C>       <C>            <C>

                                    1600
                     Alpine,        Capital
Alpine Manor, L.P.   Texas          Company,Inc.    $ 195,000          $ 195,000         36       100%     $ 394,000       $ 895,000

Baycity Village
Apartments,                         Green Companies
Limited              Baytown,       Development
Partnership          Texas          Group, Inc.       301,000            301,000         62        94%       629,000       1,413,000

Beckwood                            Phillips
Manor Seven          Marianna,      Development
Limited Partnership  Arkansas       Corporation       307,000            307,000         42        93%       636,000       1,367,000

Briscoe
Manor Limited        Galena,        McKnight &
Partnership          Maryland       Decoster, Inc     308,000            308,000         31       100%       648,000       1,464,000

Evergreen                           Phillips
Four Limited         Maynard,       Development
Partnership          Arkansas       Corporation       195,000            195,000         24        75%       402,000         855,000

Fawn Haven                          Georg E.
Limited              Manchester,    and Maharg
Partnership          Ohio           Realty, Inc.      167,000            167,000         28        89%       376,000         838,000

                     Ft.            1600
Fort Stockton        Stockton,      Capital
Manor, L.P.          Texas          Company, Inc.     224,000            224,000         36       100%       453,000       1,032,000

Hidden Valley        Gallup,        Alan
Limited              New            Deke
Partnership          Mexico         Noftsker          412,000            412,000         40        98%       801,000       1,460,000

HOI Limited          Lenoir,        Housing
Partnership Of       North          Opportunities,
Lenoir               Carolina       Inc.              198,000            198,000         34        97%       400,000         497,000

Indian Creek
Limited              Bucyrus,       Georg E.
Partnership          Ohio           Maharg            306,000            306,000         48        90%       637,000       1,441,000

                     San Luis       San Luis Obispo
Laurel Creek         Obispo,        Non-Profit
Apartments           California     Housing Corp.   1,030,000          1,030,000         24       100%     2,103,000         541,000
</TABLE>

                                       6
<PAGE>

<TABLE>
<CAPTION>
                                                  -------------------------------  -------------------------------------------------
                                                       As of March 31, 2005                 As of December 31, 2004
                                                  -------------------------------  -------------------------------------------------
                                                                                                           Estimated     Mortgage
                                                    Partnership's                                          Aggregate     Loans of
                                    General         Total Investment   Amount of                           Low Income    Local
Local Limited                       Partner         in Local Limited   Investment      Number              Housing       Limited
Partnership Name     Location       Name            Partnership        Paid to Date   of Units  Occupancy  Credits(1)    Partnership
------------------------------------------------------------------------------------------------------------------------------------
<S>                 <C>            <C>               <C>                <C>             <C>       <C>       <C>             <C>

Madisonville Manor
Senior Citizens      Madisonville,  Jean
Complex, Ltd.        Texas          Johnson           174,000            174,000         32        97%       375,000         888,000

Mt. Graham           Safford,       Rural
Housing, Ltd.        Arizona        Housing, Inc.     410,000            410,000         40        90%       788,000       1,380,000

Northside Plaza      Angleton,      Jean
Apartments, Ltd.     Texas          Johnson           282,000            282,000         48       100%       607,000       1,335,000

                                    1600
Pampa                Pampa,         Capital
Manor, L.P.          Texas          Company, Inc.     180,000            180,000         32       100%       363,000         831,000

                                    Community
                                    Housing
                                    Assistance
                                    Program, Inc.,
                                    a California
Regency Court        Monrovia,      Nonprofit
Partners             California     Corporation     1,692,000          1,690,000        115       100%     3,293,000       4,858,000

Sandpiper Square,    Aulander,
a Limited            North          I. Norwood
Partnership          Carolina       Stone             219,000            219,000         24       100%       433,000         930,000

Seneca Falls East    Seneca         David R. Bacon
Apartments           Falls, New     and Frank
Company II, L.P.     York           Salvatore         270,000            270,000         32        91%       360,000         878,000

                                    1600
                     Vernon,        Capital
Vernon Manor, L.P.   Texas          Company,Inc.      177,000            177,000         28       100%       325,000         739,000

                                    Thomas E.
                                    Connelly, Jr.,
                                    TEC Rental
                                    Properties Inc.,
                     Calhoun        Warren H.
                     Falls,         Abernathy, II
Waterford Place, a   South          and Solid
Limited Partnership  Carolina       South, Inc.       272,000            272,000         32        88%       549,000       1,157,000
</TABLE>


                                       7
<PAGE>
<TABLE>
<CAPTION>
                                                  -------------------------------  -------------------------------------------------
                                                       As of March 31, 2005                 As of December 31, 2004
                                                  -------------------------------  -------------------------------------------------
                                                                                                           Estimated     Mortgage
                                                    Partnership's                                          Aggregate     Loans of
                                    General         Total Investment   Amount of                           Low Income    Local
Local Limited                       Partner         in Local Limited   Investment      Number              Housing       Limited
Partnership Name     Location       Name            Partnership        Paid to Date   of Units  Occupancy  Credits(1)    Partnership
------------------------------------------------------------------------------------------------------------------------------------
<S>                 <C>            <C>          <C>                 <C>                <C>        <C>    <C>            <C>

Yantis Housing,      Yantis,        Charles
Housing, Ltd.        Texas          Cannon Jr.        145,000            145,000         24        96%       287,000         615,000
                                                  -----------        -----------        ---        ---   -----------    ------------

                                                  $ 7,464,000        $ 7,462,000        812        95%   $14,859,000    $ 25,414,000
                                                  ===========        ===========        ===        ===   ===========    ============
</TABLE>

(1) Represents  aggregate  anticipated Low Income Housing Credits to be received
over the 10 year credit  period if Housing  Complexes are retained and rented in
compliance with credit rules for the 15-year  compliance  period.  Approximately
95% of the  anticipated  Low Income Housing  Credits have been received from the
Local  Limited  Partnerships  and are no longer  available  to the  Partnerships
Limited Partners.


                                       8
<PAGE>

<TABLE>
<CAPTION>
                                         ---------------------------------------------------------------------------
                                                            For the year ended December 31, 2004
                                         ---------------------------------------------------------------------------
                                                                                                 Low Income Housing
                                                                                                 Credits Allocated
 Partnership Name                                 Rental Income            Net Income (Loss)     to Partnership
--------------------------------------------------------------------------------------------------------------------
<S>                                               <C>                   <C>                          <C>

Alpine Manor, L.P.                                  $ 124 ,000           $  (15,000)                 99%

Baycity Village Apartments, Limited
Partnership                                            301,000             (110,000)                 99%

Beckwood Manor Seven Limited Partnership               172,000              (80,000)                 95%

Briscoe Manor Limited Partnership                      190,000              (28,000)                 99%

Evergreen Four Limited Partnership                     100,000              (22,000)                 95%

Fawn Haven Limited Partnership                          81,000              (30,000)                 99%

Fort Stockton Manor, L.P.                              140,000              (19,000)                 99%

Hidden Valley Limited Partnership                      192,000              (13,000)                 99%

HOI Limited Partnership Of Lenoir                      163,000              (14,000)                 99%

Indian Creek Limited Partnership                       144,000              (37,000)                 99%

Laurel Creek Apartments                                220,000               24,000                  99%

Madisonville Manor Senior Citizens
Complex, Ltd.                                          121,000               (2,000)                 99%

Mt. Graham Housing, Ltd.                               183,000              (51,000)                 99%

Northside Plaza Apartments, Ltd.                       173,000              (10,000)                 99%

Pampa Manor, L.P.                                       97,000              (20,000)                 99%

Regency Court Partners                                 758,000             (188,000)                 99%

Sandpiper Square, a Limited Partnership                104,000              (24,000)                 99%

Seneca Falls East Apartments Company
II, L.P.                                               169,000              (24,000)              99.98%

Vernon Manor, L.P.                                     106,000               (6,000)                 99%

Waterford Place, a Limited Partnership                 128,000              (35,000)                 99%

Yantis Housing, Ltd.                                    92,000               (2,000)                 99%
                                                    ----------           -----------
                                                    $3,758,000           $ (706,000)
                                                    ==========           ===========
</TABLE>

                                       9


<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,  Related Stockholder Matters and
Issuer Purchases of Equity Securities

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  or  otherwise  transferred  only if certain  requirements  in the
     Partnership Agreement are satisfied.

(b)  At March 31, 2005, there were 716 Limited Partners and 9 assignees of Units
     who were not admitted as 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.  Any such distributions would be
     made in accordance with the terms of the Partnership Agreement.

(d)  No securities are authorized for issuance by the  Partnership  under equity
     compensation plans.

(e)  Except as may have  otherwise been  previously  reported,  no  unregistered
     securities were sold by the Partnership  during the three years ended March
     31, 2005, 2004 and 2003.

Item 5b. Use of Proceeds

NOT APPLICABLE

Item 5c. Purchases of Equity Securities by the Issuer and Affiliated Purchasers

NONE


                                       10


<PAGE>

Item 6.  Selected Financial Data

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

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

                                 2005         2004         2003         2002         2001
                              -----------  -----------  -----------  -----------  -----------
<S>                        <C>           <C>          <C>          <C>          <C>
                              (unaudited)
ASSETS

Cash and cash equivalents   $    191,640  $   222,356  $   238,047  $   277,292  $   312,214
Investments in limited
  partnerships, net            1,121,294    1,395,876    1,965,138    2,234,002    2,823,846

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

                            $  1,312,934  $ 1,618,232  $ 2,203,185  $ 2,511,294  $ 3,136,060
                              ===========  ===========  ===========  ===========  ===========
LIABILITIES

Payables to limited
partnerships                $      2,303  $     2,303  $     2,303  $     2,303  $     2,303
Accrued fees and expenses
  due to general partner
  and affiliates                 177,069      158,992      147,057      134,569      115,667

PARTNERS' EQUITY               1,133,562    1,456,937    2,053,825    2,374,422    3,018,090
                              -----------  -----------  -----------  -----------  -----------

                            $  1,312,934  $ 1,618,232  $ 2,203,185  $ 2,511,294  $ 3,136,060
                              ===========  ===========  ===========  ===========  ===========
</TABLE>


Selected  results  of  operations,  cash  flows  and other  information  for the
Partnership are as follows:
<TABLE>
<CAPTION>
                                          For the Years Ended
                                               March 31
                          -----------------------------------------------------------------

                             2005         2004         2003         2002          2001
                          -----------  -----------  -----------   ----------   ------------
<S>                    <C>           <C>          <C>           <C>           <C>
                          (unaudited)
Loss from operations
(Note 1)                $   (200,567) $  (197,156) $   (81,348)  $  (78,700)  $    (76,146)
Equity in losses of
limited
  partnerships              (122,808)    (399,732)    (239,249)    (564,968)      (666,388)
                          -----------  -----------  -----------   ----------   ------------

Net loss                $   (323,375) $  (596,888) $  (320,597)  $ (643,668)  $   (742,534)
                          ===========  ===========  ===========   ==========   ============

Net loss allocated to:
  General Partner       $     (3,233) $    (5,969) $    (3,206)  $   (6,437)  $     (7,425)
                          ===========  ===========  ===========   ==========   ============

  Limited Partners      $   (320,142) $  (590,919) $  (317,391)  $ (637,231)  $   (735,109)
                          ===========  ===========  ===========   ==========   ============

Net loss per limited
  partner unit          $     (32.01) $    (59.09) $    (31.74)  $   (63.72)  $     (73.51)
                          ===========  ===========  ===========   ==========   ============

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

Note 1 - Loss from  operations  for the  years  ended  March  31,  2005 and 2004
includes a charge for impairment  losses on investments in limited  partnerships
of $127,956,  and $124,048,  respectively.  (See Note 2 to the audited financial
statements.)


                                       11
<PAGE>

<TABLE>
<CAPTION>
                                         For the Years Ended
                                              March 31
                          -----------------------------------------------------------------

                             2005         2004         2003         2002          2001
                          -----------  -----------  -----------   ----------   ------------
<S>                    <C>           <C>          <C>          <C>          <C>
                          (unaduited)
Net cash provided by
  (used in):
  Operating activities  $   (44,610)  $  (43,185)  $  (45,048)  $  (35,847)  $     (18,169)
  Investing activities       13,894       27,494        5,803          925          20,169
                         -----------  -----------  -----------   -----------   -----------

Net change in cash
and Cash equivalents        (30,716)     (15,691)     (39,245)     (34,922)          2,000

Cash and cash
equivalents,
  beginning of period       222,356      238,047      277,292      312,214         310,214
                         -----------  -----------  -----------   -----------   ------------

Cash and cash
equivalents,
  end of period         $   191,640   $  222,356   $  238,047   $  277,292   $     310,214
                         ===========  ===========  ===========   ==========    ============
</TABLE>

Low Income Housing Credits per Unit were as follows for the years ended December
31:
<TABLE>
<CAPTION>
                                      2004          2003           2002           2001            2000
                                   -----------   ------------   ------------   ------------    ----------
<S>                             <C>            <C>            <C>            <C>            <C>

Federal                          $        118  $         119   $       146    $       145    $       149

State                                       -              -             -              -              -
                                   -----------   ------------   ------------   ------------   -----------

Total                            $        118  $         119   $       146    $       145    $       149
                                   ===========   ============   ============   ============   ===========
</TABLE>
Item 7. Management's  Discussion and Analysis of Financial Condition and Results
of Operations

Forward Looking Statements

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

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

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

Critical Accounting Policies and Certain Risks and Uncertainties

The   Partnership   believes  that  the  following   discussion   addresses  the
Partnership's most significant accounting policies,  which are the most critical
to  aid  in  fully  understanding  and  evaluating  the  Partnership's  reported
financial results, and certain of the Partnership's risks and uncertainties.

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.

                                       12
<PAGE>

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.

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  Partnerships'  results of operations
and for any  contributions  made and  distributions  received.  The  Partnership
reviews the  carrying  amount of an  individual  investment  in a Local  Limited
Partnership for possible  impairment whenever events or changes in circumstances
indicate that the carrying  amount of such  investment  may not be  recoverable.
Recoverability  of such investment is measured by the estimated value derived by
management,  generally  consisting of the sum of the remaining future Low-Income
Housing  Credits  estimated to be allocable to the Partnership and the estimated
residual  value  to  the  Partnership.  If an  investment  is  considered  to be
impaired,  the  Partnership  reduces the carrying value of its investment in any
such Local Limited  Partnership.  The  accounting  policies of the Local Limited
Partnerships,  generally,  are  expected  to be  consistent  with  those  of the
Partnership.  Costs incurred by the Partnership in acquiring the investments are
capitalized  as part of the investment  account and are being  amortized over 30
years (See Notes 2 and 3 to the financial statements).

Equity in losses of limited  partnerships for each year ended March 31 have been
recorded by the Partnership based on nine months of reported results provided by
the Local  Limited  Partnerships  for each year ended  December  31 and on three
months of results  estimated  by  management  of the  Partnership.  Management's
estimate for the three-month  period is based on either actual unaudited results
reported  by  the  Local  Limited  Partnerships  or  historical  trends  in  the
operations of the Local Limited  Partnerships.  In subsequent  annual  financial
statements,  upon  receiving  the actual  annual  results  reported by the Local
Limited  Partnerships,  management  reverses its prior  estimate and records the
actual results reported by the Local Limited Partnerships. Equity in losses from
the Local Limited  Partnerships  allocated to the Partnership are not recognized
to the extent that the investment  balance would be adjusted below zero. As soon
as the investment  balance  reaches zero,  amortization  of the related costs of
acquiring the investment are accelerated to the extent of losses available.

Distributions  received from the Local Limited Partnerships are accounted for as
a  reduction  of  the  investment  balance.  Distributions  received  after  the
investment  has reached  zero are  recognized  as income.  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.

Income Taxes

No provision for income taxes has been  recorded in the financial  statements as
any  liability  and/or  benefits  for income  taxes flows to the partners of the
Partnership and is their obligation and/or benefit.  For income tax purposes the
Partnership reports on a calendar year basis.

Certain Risks and Uncertainties

An investment in the  Partnership  and the  Partnership's  investments  in Local
Limited  Partnerships  and their Housing  Complexes are subject to risks.  These
risks may impact the tax benefits of an investment in the  Partnership,  and the
amount of proceeds  available for distribution to the Limited Partners,  if any,
on liquidation of the Partnership's investments. Some of those risks include the
following:

The Low Income  Housing  Credit rules are extremely  complicated.  Noncompliance
with these rules results in the loss of future Low Income  Housing  Credit s and
the fractional  recapture of Low Income Housing  Credits  already taken. In most
cases the annual amount of Low Income Housing Credits that an individual can use
is limited to the tax  liability  due on the  person's  last  $25,000 of taxable
income.  The  Local  Limited  Partnerships  may be  unable  to sell the  Housing
Complexes  at a price  which  would  result in the  Partnership  realizing  cash
distributions or proceeds from the transaction. Accordingly, the Partnership may
be unable to distribute  any cash to its Limited  Partners.  Low Income  Housing
Credits may be the only benefit from an investment in the Partnership.

                                       13
<PAGE>

The Partnership has invested in a limited number of Local Limited  Partnerships.
Such  limited  diversity  means that the  results of  operation  of each  single
Housing  Complex  will have a greater  impact on the  Partnership.  With limited
diversity,   poor   performance   of  one  Housing   Complex  could  impair  the
Partnership's ability to satisfy its investment objectives. Each Housing Complex
is subject to mortgage  indebtedness.  If a Local Limited  Partnership failed to
pay its  mortgage,  it  could  lose  its  Housing  Complex  in  foreclosure.  If
foreclosure  were to occur during the first 15 years,  the loss of any remaining
future Low Income Housing  Credits,  a fractional  recapture of prior Low Income
Housing  Credits,  and a loss of the  Partnership's  investment  in the  Housing
Complex would occur. The Partnership is a limited partner or non-managing member
of each Local Limited Partnership.  Accordingly,  the Partnership will have very
limited rights with respect to management of the Local Limited Partnerships. The
Partnership  will  rely  totally  on the Local  General  Partners.  Neither  the
Partnership's  investments in Local Limited Partnerships,  nor the Local Limited
Partnerships'  investments in Housing Complexes, are 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 interests
in Local Limited Partnerships; limitations on removal of Local General Partners;
limitations on subsidy programs; and possible changes in applicable regulations.
Uninsured  casualties  could result in loss of property  and Low Income  Housing
Credits and recapture of Low Income Housing Credits  previously taken. The value
of real  estate  is  subject  to risks  from  fluctuating  economic  conditions,
including employment rates, inflation,  tax, environmental,  land use and zoning
policies, supply and demand of similar properties,  and neighborhood conditions,
among others.

The  ability of Limited  Partners to claim tax losses  from the  Partnership  is
limited.  The IRS may audit the  Partnership or a Local Limited  Partnership and
challenge  the tax  treatment  of tax items.  The  amount of Low Income  Housing
Credits and tax losses allocable to the Limited Partners could be reduced if the
IRS were  successful  in such a  challenge.  The  alternative  minimum tax could
reduce tax benefits from an investment in the  Partnership.  Changes in tax laws
could also impact the tax benefits from an investment in the Partnership  and/or
the value of the Housing Complexes.

Substantially  all of the Low Income Housing Credits  anticipated to be realized
from the Local Limited Partnerships have been realized. The Partnership does not
anticipate  being  allocated a significant  amount of Low Income Housing Credits
from the Local  Limited  Partnerships  in the  future.  Until the Local  Limited
Partnerships  have completed the 15 year Low Income  Housing  Credit  compliance
period risks exist for potential recapture of prior Low Income Housing Credits.

No trading  market  for the Units  exists or is  expected  to  develop.  Limited
Partners  may be unable to sell  their  Units  except at a  discount  and should
consider their Units to be a long-term  investment.  Individual Limited Partners
will have no recourse if they disagree with actions  authorized by a vote of the
majority of Limited Partners.

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

Anticipated  future and  existing  cash  resources  of the  Partnership  are not
sufficient   to  pay  existing   liabilities   of  the   Partnership.   However,
substantially all of the existing  liabilities of the Partnership are payable to
the General  Partner and/or its  affiliates.  Though the amounts  payable to the
General Partner and/or its affiliates are contractually  currently payable,  the
Partnership  anticipates that the General Partner and/or its affiliates will not
require the payment of these contractual  obligations until capital reserves are
in excess of the aggregate of then  existing  contractual  obligations  and then
anticipated future foreseeable  obligations of the Partnership.  The Partnership
would be adversely  affected  should the General  Partner  and/or its affiliates
demand current  payment of the existing  contractual  obligations and or suspend
services for this or any other reason.


                                       14
<PAGE>

Financial Condition

The  Partnership's  assets at March 31, 2005 consisted  primarily of $192,000 in
cash  and  aggregate  investments  in  the  21  Local  Limited  Partnerships  of
$1,121,000.  Liabilities  at March 31, 2005 were $179,000 of which  $177,000 was
accrued  annual  management  fees and  reimbursement  for  expenses  paid by the
General  Partner  and/or  its  affiliates  and $2,000 was a payable to a limited
partnership.

Results of Operations

Year  Ended  March  31,  2005   Compared  to  Year  Ended  March  31,  2004  The
Partnership's  net  loss for the  year  ended  March  31,  2005 was  $(323,000),
reflecting  a decrease of $274,000  from the net loss  experienced  for the year
ended March 31,  2004.  The decrease in net loss is due to equity in losses from
limited  partnerships  which  decreased by $277,000 to  $(123,000)  for the year
ended March 31, 2005 from  $(400,000) for the year ended March 31, 2004.  Equity
in losses  of  limited  partnerships  decreased  from the prior  year due to the
Partnership  not recognizing  certain losses of the Local Limited  Partnerships.
The investments in such Local Limited  Partnerships  had reached $0 at March 31,
2005.  Since the  Partnership's  liability  with respect to its  investments  is
limited, losses in excess of investment are not recognized.  Which was offset by
an increase in loss from operations of approximately  $(3,000) due to a decrease
in amortization of acquisition fees and costs of $8,000, a $(4,000)  increase in
impairment loses, a $(4,000) increase in other operating expenses and a $(3,000)
decrease in total income.

Year  Ended  March  31,  2004   Compared  to  Year  Ended  March  31,  2003  The
Partnership's  net  loss for the  year  ended  March  31,  2004 was  $(597,000),
reflecting an increase of $(276,000) from the net loss  experienced for the year
ended March 31,  2003.  The increase in net loss is due to equity in losses from
limited  partnerships  which  increased by $(161,000) to $(400,000) for the year
ended March 31, 2004 from $(239,000) for the year ended March 31,  2003.  Equity
in losses  of  limited  partnerships  increased  from the  prior  year due to an
increase of the  write-off  of  acquisition  fees and costs in the current  year
related to the investments that have gone below zero. Additionally, there was an
increase in loss from operations of approximately  $(116,000)  largely due to an
impairment  loss of $(124,000) for the year ended March 31, 2004. The impairment
loss was due to a  certain  limited  partnership  whose net  investment  balance
exceeded the remaining tax credits and residual  value.  The impairment loss was
offset by a decrease in  amortization  of  acquisition  fees and costs of $6,000
along with an increase in income of $3,000 in the current year.

Liquidity and Capital Resources

Year Ended  March 31,  2005  Compared to Year Ended March 31, 2004 Net cash used
during the year ended March 31, 2005 was $(31,000) compared to net cash used for
the year ended March 31, 2003 of  $(16,000).  The change was  primarily due to a
$(13,000) decrease of cash provided by investing activities due to the $(13,000)
decrease in  distributions  received  from  limited  partnerships.  Along with a
$(2,000) decrease in cash used in operating activities.

Year Ended  March 31,  2004  Compared to Year Ended March 31, 2003 Net cash used
during the year ended March 31, 2004 was $(16,000) compared to net cash used for
the year ended March 31, 2003 of  $(39,000).  The change was  primarily due to a
$21,000  increase of cash  provided by investing  activities  due to the $21,000
increase in distributions received from limited partnerships.

The financial statements of one Local Limited Partnership were prepared assuming
the limited  partnership will continue as a going concern.  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  discussed  below.  The
Partnership had a $0 remaining  investment in such Local Limited  Partnership at
March 31, 2005 and 2004.  The  Partnership's  original  investment  in the Local
Limited  Partnership  approximated  $1,691,585.  Through  December 31, 2004, 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, 2004 and 2003, the carrying value of such
property  on the books and  records  of the Local  Limited  Partnership  totaled
$5,918,598 and $6,114,888, respectively.


                                       15
<PAGE>



The Partnership  expects its future cash flows,  together with its net available
assets at March 31, 2005, to be  sufficient  to meet all  currently  foreseeable
future cash  requirements.  This  excludes  amounts  owed to  Associates  by the
Partnership disclosed below.

Future Contractual Cash Obligations

The following table  summarizes our future  contractual  cash  obligations as of
March 31, 2005:
<TABLE>
<CAPTION>
                                  2006       2007       2008        2009       2010      Thereafter    Total

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

Asset Management Fees (1)     $  211,167  $   42,000  $  42,000  $   42,000  $  42,000  $ 1,680,000  $ 2,059,167
Capital Contributions
   Payable to Lower Tier
   Partnerships                    2,303           -          -           -          -            -        2,303
                                ---------  ---------  ---------   ---------  ---------   ----------   ----------
Total contractual cash
   obligations                $  213,470  $   42,000  $  42,000  $   42,000  $  42,000  $ 1,680,000  $ 2,061,470
                                =========   =========  =========  =========  =========   ==========   ==========
</TABLE>

(1)  Asset  Management  Fees  are  payable  annually  until  termination  of the
Partnership,  which is to occur no later than  2050.  The  estimate  of the fees
payable included herein assumes the retention of the  Partnership's  interest in
all Housing Complexes until 2050. Amounts due to the General Partner as of March
31, 2005 have been  included in the 2006  column.  The General  Partner does not
anticipate that these fees will be paid until such time as capital  reserves are
in excess of the  aggregate  of the  existing  contractual  obligations  and the
anticipated future foreseeable obligations of the Partnership.

For  additional   information   regarding  asset  management  fees  and  capital
contributions  payable to Local Limited  Partnerships,  see Notes 3 and 4 to the
financial statements included elsewhere herein.

Off-Balance Sheet Arrangements

The Partnership has no off-balance sheet arrangements.

Exit Strategy

The IRS  compliance  period for  low-income  housing  tax credit  properties  is
generally  15 years from  occupancy  following  construction  or  rehabilitation
completion.  WNC was one of the first in the industry to offer investments using
the tax credit.  Now these very first programs are completing  their  compliance
period.

With that in mind, we are continuing our review of the  Partnership's  holdings,
with special  emphasis on the more mature  properties  including those that have
satisfied the IRS compliance requirements. Our review will consider many factors
including  extended  use  requirements  on the  property  (such as those  due to
mortgage  restrictions  or state  compliance  agreements),  the condition of the
property,  and the tax consequences to the Limited Partners from the sale of the
property.

Upon identifying  those  properties with the highest  potential for a successful
sale, refinancing or syndication, we expect to proceed with efforts to liquidate
those  properties.  Our  objective is to maximize the Limited  Partners'  return
wherever  possible  and,  ultimately,  to wind down  those  funds that no longer
provide tax benefits to Limited  Partners.  However,  Local Limited  Partnership
interests may be disposed at any time by Associates in its  discretion.  To date
no properties in the Partnership have been selected.


                                       16

<PAGE>



Impact of New Accounting Pronouncements

As of March 31,  2004,  the  Partnership  adopted FASB  Interpretation  No. 46 -
Revised,  Consolidation  of  Variable  Interest  Entities  ("FIN46R").  FIN  46R
provides  guidance as to when a company should include the assets,  liabilities,
and  activities  of  a  variable   interest  entity  ("VIE")  in  its  financial
statements,   and  when  a  company  should  disclose   information   about  its
relationship  with a VIE. A VIE is a legal structure used to conduct  activities
or hold assets, and a VIE must be consolidated by a company if it is the primary
beneficiary  because a primary  beneficiary absorbs the majority of the entity's
expected losses, the majority of the expected residual returns, or both.

Under FIN 46R, the Local Limited  Partnerships in which the Partnership  invests
are VIEs. However,  management does not consolidate the Partnership's  interests
in these VIE's under FIN46R,  as the  Partnership  is not considered the primary
beneficiary.  Rather,  the  Partnership  currently  records  the  amount  of the
investment in the Local Limited  Partnerships  as an asset in the balance sheet,
and  recognizes  its share of Local  Limited  Partnership  income or loss in the
statement of operations.

The Partnership's balance in its investment in Local Limited Partnerships,  plus
the risk of recapture of tax credits previously recognized on these investments,
represents its maximum exposure to loss. The  Partnership's  exposure to loss is
mitigated  by  the  condition  and  financial   performance  of  the  underlying
properties,  as well as the  strength of the Local  General  Partners  and their
guarantee against credit recapture.

In May 2005, the FASB issued Statement of Financial Accounting Standards No. 154
(SFAS 154),  "Accounting  Changes and Error Corrections" which provides guidance
on the  accounting  for and  reporting of accounting  changes and  correction of
errors.  This  statement  changes the  requirements  for the  accounting for and
reporting  of a change in  accounting  principle  and  applies to all  voluntary
changes in  accounting  principle.  It also  applies to changes  required  by an
accounting pronouncement in the unusual instance that the pronouncement does not
include  specific  transition  provisions.   This  statement  is  effective  for
accounting  changes and  corrections  of errors made in fiscal  years  beginning
after December 15, 2005. The  Partnership  does not anticipate a material effect
upon the adoption of this statement.

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk

NOT APPLICABLE

Item 8.  Financial Statements and Supplementary Data


                                       17
<PAGE>



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

                                 BALANCE SHEETS

 Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.


<TABLE>
<CAPTION>
                                                                               March 31
                                                                    -------------------------------

                                                                        2005              2004
                                                                    --------------    -------------
<S>                                                              <C>               <C>

ASSETS

Cash                                                              $       191,640   $      222,356
Investments in limited partnerships (Notes 2 and 3)                     1,121,294        1,395,876
                                                                    --------------    -------------

                                                                  $     1,312,934   $    1,618,232
                                                                    ==============    =============

LIABILITIES AND PARTNERS' EQUITY
  (DEFICIT)

Liabilities:
   Payable to a limited partnership (Note 4)                      $         2,303   $        2,303
   Accrued fees and advances due to General
     Partner and affiliate (Note 3)                                       177,069          158,992
                                                                    --------------    -------------

     Total liabilities                                                    179,372          161,295
                                                                    --------------    -------------

Commitments and contingencies

Partners' equity (deficit):
   General partner                                                        (88,565)         (85,332)
   Limited partners (10,000 units authorized,
     10,000 units issued and outstanding)                               1,222,127        1,542,269
                                                                    --------------    -------------

     Total partners' equity                                             1,133,562        1,456,937
                                                                    --------------    -------------

                                                                  $     1,312,934   $    1,618,232
                                                                    ==============    =============
</TABLE>



                 See accompanying notes to financial statements
                                       18

<PAGE>


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

                            STATEMENTS OF OPERATIONS

Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.


<TABLE>
<CAPTION>
                                                                       For the Years Ended
                                                                             March 31
                                                            -------------------------------------------

                                                               2005            2004           2003
                                                            ------------   -------------   ------------
<S>                                                      <C>            <C>              <C>

Interest income                                           $         667  $        2,093   $      3,714
Other income                                                     10,179          12,238          7,475
                                                            ------------   -------------   ------------

Total income                                                     10,846          14,331         11,189
                                                            ------------   -------------   ------------

Operating expenses:
   Amortization (Notes 2 and 3)                                   9,924          17,988         23,812
   Asset management fees (Note 3)                                42,000          42,000         42,000
   Impairment loss (Note 2)                                     127,956         124,048              -
   Accounting                                                    21,550          19,176         19,919
   Other                                                          9,983           8,275          6,806
                                                            ------------   -------------   ------------

    Total operating expenses                                    211,413         211,487         92,537
                                                            ------------   -------------   ------------

Loss from operations                                           (200,567)       (197,156)       (81,348)

Equity in losses of limited
  partnerships (Note 2)                                        (122,808)       (399,732)      (239,249)
                                                            ------------   -------------   ------------

Net loss                                                  $    (323,375)$      (596,888)  $   (320,597)
                                                            ============   =============   ============

Net loss allocated to:
   General Partner                                        $      (3,233)$        (5,969)  $     (3,206)
                                                            ============   =============   ============

   Limited Partners                                       $    (320,142)$      (590,919)  $   (317,391)
                                                            ============   =============   ============

Net loss per limited partner unit                         $      (32.01)$        (59.09)  $     (31.74)
                                                            ============   =============   ============

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



                 See accompanying notes to financial statements
                                       19
<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, 2005, 2004 and 2003

Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.


<TABLE>
<CAPTION>
                                                               General            Limited              Total
                                                               Partner            Partners
                                                            ---------------    ---------------     ---------------
<S>                                                      <C>                <C>                <C>

Partners' equity (deficit) at March 31, 2002              $        (76,157)  $     2,450,579    $      2,374,422

Net loss                                                            (3,206)         (317,391)           (320,597)
                                                            ---------------    ---------------     ---------------

Partners' equity (deficit) at March 31, 2003                       (79,363)        2,133,188           2,053,825

Net loss                                                            (5,969)         (590,919)           (596,888)
                                                            ---------------    ---------------     ---------------

Partners' equity (deficit) at March 31, 2004                       (85,332)        1,542,269           1,456,937

Net loss                                                            (3,233)         (320,142)           (323,375)
                                                            ---------------    ---------------     ---------------

Partners' equity (deficit) at March 31, 2005              $        (88,565)  $     1,222,127    $     (1,133,562)
                                                            ===============    ===============     ===============
</TABLE>



                 See accompanying notes to financial statements
                                       20


<PAGE>



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

                            STATEMENTS OF CASH FLOWS

Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.


<TABLE>
<CAPTION>
                                                                                       For the Years Ended
                                                                                            March 31
                                                                         ------------------------------------------------

                                                                            2005            2004              2003
                                                                         -----------    --------------   ----------------

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

Cash flows from operating activities:
   Net loss                                                             $  (323,375)  $      (596,888)  $       (320,597)
   Adjustments to reconcile net loss to
    net cash used in operating activities:
    Amortization                                                              9,924            17,988             23,812
    Equity in losses of limited
      partnerships                                                          122,808           399,732            239,249
    Impairment loss                                                         127,956           124,048                  -
    Increase in accrued fees and
      expenses due to General Partner
      and affiliates                                                         18,077            11,935             12,488
                                                                         -----------    --------------   ----------------

Net cash used in operating activities                                       (44,610)          (43,185)           (45,048)
                                                                         -----------    --------------   ----------------

Cash flows from investing activities:
   Distributions from limited
     partnerships                                                            13,894            27,494              5,803
                                                                         -----------    --------------   ----------------


Net decrease in cash and cash equivalents                                   (30,716)          (15,691)           (39,245)

Cash and cash equivalents, beginning of period                              222,356           238,047            277,292
                                                                         -----------    --------------   ----------------

Cash and cash equivalents, end of period                               $    191,640   $       222,356   $        238,047
                                                                         ===========    ==============   ================

SUPPLEMENTAL DISCLOSURE OF
  CASH FLOW INFORMATION:
   Taxes paid                                                          $        800   $           800   $            800
                                                                         ===========    ==============   ================
</TABLE>

                 See accompanying notes to financial statements
                                       21

<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, 2005, 2004 and 2003

Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.



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

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

WNC Housing Tax Credit Fund IV, L.P., Series 1, a California Limited Partnership
(the  "Partnership"),  was  formed on May 4, 1993 under the laws of the state of
California,  and commenced  operations on October 20, 1993. The  Partnership was
formed to invest  primarily in other limited  partnerships  (the "Local  Limited
Partnerships")  which  own  and  operate  multi-family  housing  complexes  (the
"Housing Complexes") 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.
("Associates")  is the general partner of the General Partner.  The chairman and
president  of  Associates  own  substantially  all of the  outstanding  stock of
Associates.  The  business of the  Partnership  is conducted  primarily  through
Associates, as the Partnership has no employees of its own.

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

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.


                                       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, 2005, 2004 and 2003

Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.

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

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

An investment in the  Partnership  and the  Partnership's  investments  in Local
Limited  Partnerships  and their Housing  Complexes are subject to risks.  These
risks may impact the tax benefits of an investment in the  Partnership,  and the
amount of proceeds  available for distribution to the Limited Partners,  if any,
on liquidation of the Partnership's investments. Some of those risks include the
following:

The Low Income  Housing  Credit rules are extremely  complicated.  Noncompliance
with these rules results in the loss of future Low Income  Housing  Credit s and
the fractional  recapture of Low Income Housing  Credits  already taken. In most
cases the annual amount of Low Income Housing Credits that an individual can use
is limited to the tax  liability  due on the  person's  last  $25,000 of taxable
income.  The  Local  Limited  Partnerships  may be  unable  to sell the  Housing
Complexes  at a price  which  would  result in the  Partnership  realizing  cash
distributions or proceeds from the transaction. Accordingly, the Partnership may
be unable to distribute  any cash to its Limited  Partners.  Low Income  Housing
Credits may be the only benefit from an investment in the Partnership.

The Partnership has invested in a limited number of Local Limited  Partnerships.
Such  limited  diversity  means that the  results of  operation  of each  single
Housing  Complex  will have a greater  impact on the  Partnership.  With limited
diversity,   poor   performance   of  one  Housing   Complex  could  impair  the
Partnership's ability to satisfy its investment objectives. Each Housing Complex
is subject to mortgage  indebtedness.  If a Local Limited  Partnership failed to
pay its  mortgage,  it  could  lose  its  Housing  Complex  in  foreclosure.  If
foreclosure  were to occur during the first 15 years,  the loss of any remaining
future Low Income Housing  Credits,  a fractional  recapture of prior Low Income
Housing  Credits,  and a loss of the  Partnership's  investment  in the  Housing
Complex would occur. The Partnership is a limited partner or non-managing member
of each Local Limited Partnership.  Accordingly,  the Partnership will have very
limited rights with respect to management of the Local Limited Partnerships. The
Partnership  will  rely  totally  on the Local  General  Partners.  Neither  the
Partnership's  investments in Local Limited Partnerships,  nor the Local Limited
Partnerships'  investments in Housing Complexes, are 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 interests
in Local Limited Partnerships; limitations on removal of Local General Partners;
limitations on subsidy programs; and possible changes in applicable regulations.
Uninsured  casualties  could result in loss of property  and Low Income  Housing
Credits and recapture of Low Income Housing Credits  previously taken. The value
of real  estate  is  subject  to risks  from  fluctuating  economic  conditions,
including employment rates, inflation,  tax, environmental,  land use and zoning
policies, supply and demand of similar properties,  and neighborhood conditions,
among others.

The  ability of Limited  Partners to claim tax losses  from the  Partnership  is
limited.  The IRS may audit the  Partnership or a Local Limited  Partnership and
challenge  the tax  treatment  of tax items.  The  amount of Low Income  Housing
Credits and tax losses allocable to the Limited Partners could be reduced if the
IRS were  successful  in such a  challenge.  The  alternative  minimum tax could
reduce tax benefits from an investment in the  Partnership.  Changes in tax laws
could also impact the tax benefits from an investment in the Partnership  and/or
the value of the Housing Complexes.

Substantially  all of the Low Income Housing Credits  anticipated to be realized
from the Local Limited Partnerships have been realized. The Partnership does not
anticipate  being  allocated a significant  amount of Low Income Housing Credits
from the Local  Limited  Partnerships  in the  future.  Until the Local  Limited
Partnerships  have completed the 15 year Low Income  Housing  Credit  compliance
period risks exist for potential recapture of prior Low Income Housing Credits.


                                       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, 2005, 2004 and 2003

Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.

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

No trading  market  for the Units  exists or is  expected  to  develop.  Limited
Partners  may be unable to sell  their  Units  except at a  discount  and should
consider their Units to be a long-term  investment.  Individual Limited Partners
will have no recourse if they disagree with actions  authorized by a vote of the
majority of Limited Partners.

Anticipated  future and  existing  cash  resources  of the  Partnership  are not
sufficient   to  pay  existing   liabilities   of  the   Partnership.   However,
substantially all of the existing  liabilities of the Partnership are payable to
the General  Partner and/or its  affiliates.  Though the amounts  payable to the
General Partner and/or its affiliates are contractually  currently payable,  the
Partnership  anticipates that the General Partner and/or its affiliates will not
require the payment of these contractual  obligations until capital reserves are
in excess of the aggregate of then  existing  contractual  obligations  and then
anticipated future foreseeable  obligations of the Partnership.  The Partnership
would be adversely  affected  should the General  Partner  and/or its affiliates
demand current  payment of the existing  contractual  obligations and or suspend
services for this or any other reason.

Exit Strategy
-------------

The IRS  compliance  period for  low-income  housing  tax credit  properties  is
generally  15 years from  occupancy  following  construction  or  rehabilitation
completion.  WNC was one of the first in the industry to offer investments using
the tax credit.  Now these very first programs are completing  their  compliance
period.

With that in mind,  the  Partnership  is continuing to review the  Partnership's
holdings,  with special emphasis on the more mature  properties  including those
that have satisfied the IRS compliance  requirements.  The Partnership's  review
will consider many factors,  including extended use requirements on the property
(such as those due to mortgage restrictions or state compliance agreements), the
condition of the property, and the tax consequences to the Limited Partners from
the sale of the property.

Upon identifying  those  properties with the highest  potential for a successful
sale,  refinancing  or  syndication,  the  Partnership  expects to proceed  with
efforts  to  liquidate  those  properties.  The  Partnership's  objective  is to
maximize the Limited Partners' return wherever possible and, ultimately, to wind
down those funds that no longer  provide tax  benefits to Limited  Partners.  To
date no properties in the Partnership have been selected.

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  Partnerships'  results of operations
and for any  contributions  made and  distributions  received.  The  Partnership
reviews the  carrying  amount of an  individual  investment  in a Local  Limited
Partnership for possible  impairment whenever events or changes in circumstances
indicate that the carrying  amount of such  investment  may not be  recoverable.
Recoverability  of such investment is measured by the estimated value derived by
management,  generally  consisting of the sum of the remaining future Low-Income
Housing  Credits  estimated to be allocable to the Partnership and the estimated
residual  value  to  the  Partnership.  If an  investment  is  considered  to be
impaired,  the  Partnership  reduces the carrying value of its investment in any
such Local Limited  Partnership.  The  accounting  policies of the Local Limited
Partnerships,  generally,  are  expected  to be  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 limited  partnerships for each year ended March 31 have been
recorded by the Partnership based on nine months of reported results provided by
the Local  Limited  Partnerships  for each year ended  December  31 and on three
months of results  estimated  by  management  of the  Partnership.

                                       24


<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2005, 2004 and 2003

Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.

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

Management's  estimate  for the  three-monthperiod  is  based on  either  actual
unaudited  results  reported by the Local  Limited  Partnerships  or  historical
trends in the operations of the Local Limited Partnerships. In subsequent annual
financial  statements,  upon receiving the actual annual results reported by the
Local Limited  Partnerships,  management reverses its prior estimate and records
the actual results reported by the Local Limited Partnerships.  Equity in losses
from  the  Local  Limited  Partnerships  allocated  to the  Partnership  are not
recognized to the extent that the  investment  balance  would be adjusted  below
zero.  As soon as the  investment  balance  reaches  zero,  amortization  of the
related  costs of acquiring  the  investment  are  accelerated  to the extent of
losses  available  (see Note 3). 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  from the Local Limited  Partners are accounted for as a reduction
of the  investment  balance.  Distributions  received  after the  investment has
reached zero are recognized as income.

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 original maturities
of three months or less when purchased to be cash  equivalents.  As of March 31,
2005 and 2004, the Partnership had no cash equivalents.

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

At March 31,  2005,  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.

Reclassifications
-----------------

Certain  reclassifications  have  been  made  to the  2004  and  2003  financial
statements to be consistent with the 2005 presentation.

Income Taxes
------------

No provision  for income taxes has been recorded in the  accompanying  financial
statements  as any  liability  and/or  benefits for income taxes as income taxes
flows to the partners of the Partnership and is their obligation and/or benefit.
For income tax purposes the Partnership reports on a calendar year basis.

                                       25


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2005, 2004 and 2003

Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.

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

New Accounting Pronouncements
-----------------------------

As of March 31,  2004,  the  Partnership  adopted FASB  Interpretation  No. 46 -
Revised,  Consolidation  of  Variable  Interest  Entities  ("FIN46R").  FIN  46R
provides  guidance as to when a company should include the assets,  liabilities,
and  activities  of  a  variable   interest  entity  ("VIE")  in  its  financial
statements,   and  when  a  company  should  disclose   information   about  its
relationship  with a VIE. A VIE is a legal structure used to conduct  activities
or hold assets, and a VIE must be consolidated by a company if it is the primary
beneficiary  because a primary  beneficiary absorbs the majority of the entity's
expected losses, the majority of the expected residual returns, or both.

Under FIN 46R, the Local Limited  Partnerships in which the Partnership  invests
are VIEs. However,  management does not consolidate the Partnership's  interests
in these VIE's under FIN46R,  as the  Partnership  is not considered the primary
beneficiary.  Rather,  the  Partnership  currently  records  the  amount  of the
investment in the Local Limited  Partnerships  as an asset in the balance sheet,
and  recognizes  its share of Local  Limited  Partnership  income or loss in the
statement of operations.

The Partnership's balance in its investment in Local Limited Partnerships,  plus
the risk of recapture of tax credits previously recognized on these investments,
represents its maximum exposure to loss. The  Partnership's  exposure to loss is
mitigated  by  the  condition  and  financial   performance  of  the  underlying
properties,  as well as the  strength of the Local  General  Partners  and their
guarantee against credit recapture.

In May 2005, the FASB issued Statement of Financial Accounting Standards No. 154
(SFAS 154),  "Accounting  Changes and Error Corrections" which provides guidance
on the  accounting  for and  reporting of accounting  changes and  correction of
errors.  This  statement  changes the  requirements  for the  accounting for and
reporting  of a change in  accounting  principle  and  applies to all  voluntary
changes in  accounting  principle.  It also  applies to changes  required  by an
accounting pronouncement in the unusual instance that the pronouncement does not
include  specific  transition  provisions.   This  statement  is  effective  for
accounting  changes and  corrections  of errors made in fiscal  years  beginning
after December 15, 2005. The  Partnership  does not anticipate a material effect
upon the adoption of this statement.

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.  The
respective Local 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, 2005 and 2004,  are  approximately  $1,890,000  and
$1,403,000, 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, acquisition, selection and other costs related to the acquisition of the
investments which have been capitalized in the Partnership's investment account,
impairment  losses  recorded  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.


                                       26
<PAGE>



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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2005, 2004 and 2003

Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.

NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued
-------------------------------------------------------

A loss in value from a Local Limited  Partnership other than a temporary decline
would be recorded as an impairment loss. Impairment is measured by comparing the
investment  carrying  amount to the sum of the total amount of the remaining tax
credits  allocated  to  the  fund  and  the  estimated  residual  value  of  the
investment. Accordingly, the Partnership recorded an impairment loss of $127,956
and $124,048 during the years ended March 31, 2005 and 2004, respectively.

At March 31, 2005, 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,  2005,  2004 and
2003 amounting to approximately $561,000,  $354,000 and $332,000,  respectively,
have not been  recognized.  As of March 31,  2005,  the  aggregate  share of net
losses not recognized by the Partnership amounted to $1,811,000.

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

                                                                     2005               2004              2003
                                                                ----------------   ---------------    --------------
<S>                                                          <C>                <C>                <C>

Investments per balance sheet,
    beginning of period                                       $       1,395,876  $      1,965,138   $     2,234,002
Distributions received from limited
    partnerships                                                        (13,894)          (27,494)           (5,803)
Equity in losses of limited partnerships                               (122,808)         (399,732)         (239,249)
Impairment loss                                                        (127,956)         (124,048)                -
Amortization of paid acquisition fees
    and costs                                                            (9,924)          (17,988)          (23,812)
                                                                ----------------   ---------------    --------------

Investments per balance sheet,
    end of period                                             $       1,121,294  $      1,395,876   $     1,965,138
                                                                ================   ===============    ==============
</TABLE>


                                       27
<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, 2005, 2004 and 2003

Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.

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:
<TABLE>
<CAPTION>
                                                   COMBINED CONDENSED BALANCE SHEETS

                                                                                     2004               2003
                                                                                ---------------    ---------------
<S>                                                                          <C>                <C>

ASSETS

Buildings and improvements, net of accumulated
  depreciation as of December 31, 2004 and 2003 of
$10,961,000 and  $ 9,941,414, respectively                                    $     23,747,000   $     24,858,000
Land                                                                                 1,692,000          1,674,000
Due from related parties                                                                 8,000             13,000
Other assets                                                                         2,432,000          2,362,000
                                                                                ---------------    ---------------

                                                                              $     27,879,000   $     28,907,000
                                                                                ===============    ===============

LIABILITIES

Mortgage loans payable                                                        $     25,414,000   $     24,752,000
Due to related parties                                                                 871,000            914,000
Other liabilities                                                                    1,198,000          1,969,000
                                                                                ---------------    ---------------

                                                                                    27,483,000         27,635,000
                                                                                ---------------    ---------------

PARTNERS' CAPITAL  (DEFICIT)

WNC Housing Tax Credits Fund IV, L.P., Series 1                                       (769,000)            (7,000)
Other partners                                                                       1,165,000          1,279,000
                                                                                ---------------    ---------------

                                                                                       396,000          1,272,000
                                                                                ---------------    ---------------

                                                                              $     27,879,000   $     28,907,000
                                                                                ===============    ===============
</TABLE>


                                       28

<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, 2005, 2004 and 2003

Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.

NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued
-------------------------------------------------------
<TABLE>
<CAPTION>
                                              COMBINED CONDENSED STATEMENTS OF OPERATIONS

                                                                 2004                2003               2002
                                                            ---------------     ---------------    ---------------
<S>                                                      <C>                 <C>                <C>

Revenues                                                  $      3,837,000   $       3,746,000   $      3,581,000
                                                            ---------------     ---------------    ---------------

Expenses:
  Operating expenses                                             2,692,000           2,583,000          2,251,000
  Interest expense                                                 785,000             833,000            860,000
  Depreciation and amortization                                  1,066,000           1,078,000          1,076,000
                                                            ---------------     ---------------    ---------------

   Total expenses                                                4,543,000           4,494,000          4,187,000
                                                            ---------------     ---------------    ---------------

Net loss                                                  $       (706,000)  $        (748,000)  $       (606,000)
                                                            ===============     ===============    ===============

Net loss allocable to the Partnership                     $       (695,000)  $        (736,000)  $       (597,000)
                                                            ===============     ===============    ===============

Net loss recorded by the Partnership                      $       (123,000)  $        (400,000)  $       (239,000)
                                                            ===============     ===============    ===============
</TABLE>

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

The financial statements of one Local Limited Partnership were prepared assuming
the limited  partnership will continue as a going concern.  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  discussed  below.  The
Partnership  had $0 remaining  investment in such Local Limited  Partnership  at
March 31, 2005 and 2004.  The  Partnership's  original  investment  in the Local
Limited  Partnership  approximated  $1,691,585.  Through  December 31, 2004, 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, 2004 and 2003, the carrying value of such
property  on the books and  records  of the Local  Limited  Partnership  totaled
$918,598 and $6,114,888, respectively.



                                       29
<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, 2005, 2004 and 2003

Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.

NOTE 3 - RELATED PARTY TRANSACTIONS
-----------------------------------
Under the terms of the  Partnership  Agreement,  the  Partnership has paid or 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
          $706,741 and $616,251 as of March 31, 2005 and 2004, respectively.  Of
          the  accumulated  amortization  recorded on the balance sheet at March
          31, 2005,  $80,565,  $140,544  and $49,656 of the related  expense was
          reflected as equity in losses of limited partnerships during the years
          ended  March 31,  2005,  2004 and 2003,  respectively,  to reduce  the
          respective  net  acquisition  fee  component of  investments  in local
          limited  partnerships  to zero for those  Local  Limited  Partnerships
          which would otherwise be below a zero balance.

          Reimbursement  of costs incurred by the General  Partner in connection
          with  the   acquisition   of   Local   Limited   Partnerships.   These
          reimbursements  have not exceeded 1.2% of the gross  proceeds.  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.

          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, for the life of the Partnership. Management fees of $42,000
          were incurred  during each of the years ended March 31, 2005, 2004 and
          2003, of which $30,000 was paid during each of the years.

          The  Partnership  reimbursed the General Partner or its affiliates for
          operating  expenses  incurred on behalf of the Partnership.  Operating
          expense  reimbursements were approximately  $25,500 and $27,500 during
          the years ended March 31, 2005 and 2004, 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, 2004 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.  No such fee was  incurred in the three
          year period ended March 31, 2005.

          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  $37,275,  $35,780 and
          $33,926  for  the  years  ended  March  31,   2005,   2004  and  2003,
          respectively.

The accrued fees and advances due to the General Partner and affiliates  consist
of the following at:
<TABLE>
<CAPTION>
                                                                                             March 31
                                                                                   ------------------------------
                                                                                        2005             2004
                                                                                   -------------    -------------
<S>                                                                             <C>              <C>

Reimbursement for expenses paid by the General Partner
  and/or an affiliate                                                            $        7,902   $        1,825

Asset management fee payable                                                            169,167          157,167
                                                                                   -------------    -------------
                                                                                 $      177,069   $      158,992
                                                                                   =============     ============
</TABLE>
The General  Partner does not anticipate that these accrued fees will be paid in
full until such time as capital reserves are in excess of the future foreseeable
working capital requirements of the Partnership.


                                       30

<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, 2005, 2004 and 2003

Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.

NOTE 4 - PAYABLES TO LIMITED PARTNERSHIPS
-----------------------------------------

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

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

The following is a summary of the quarterly operations for the years ended March
31:
<TABLE>
<CAPTION>
                                           June 30           September 30       December 31           March 31
                                        ---------------     ---------------    ---------------     ---------------

               2005
               ----
<S>                                  <C>                  <C>                <C>                <C>

Income                                $          2,000     $         4,000    $            -     $        5,000

Operating expenses                             (16,000)            (30,000)          (22,000)          (143,000)

Equity in losses of limited
     partnerships                              (19,000)            (19,000)          (18,000)           (67,000)

Net loss                                       (33,000)            (45,000)          (40,000)          (205,000)

Net Loss available to limited
     partners                                  (33,000)            (45,000)          (39,000)          (203,000)

Net Loss per limited partner unit                   (3)                 (4)               (4)               (20)

               2004

Income                                $          3,000     $         4,000    $            -     $        7,000

Operating expenses                             (24,000)            (31,000)          (18,000)          (138,000)

Equity in losses of limited
     partnerships                              (48,000)            (48,000)          (48,000)          (256,000)

Net loss                                       (69,000)            (75,000)          (66,000)          (387,000)

Net Loss available to limited
     partners                                  (68,000)            (75,000)          (65,000)          (383,000)

Net Loss per limited partner unit                   (7)                 (7)               (7)               (38)
</TABLE>



                                       31

<PAGE>



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

NOT APPLICABLE

Item 9a. Controls and Procedures

As of the end of the period covered by this report,  the  Partnership's  General
Partner, under the supervision and with the participation of the Chief Executive
Officer and Chief Financial  Officer of Associates  carried out an evaluation of
the effectiveness of the Fund's "disclosure  controls and procedures" as defined
in  Securities  Exchange  Act of 1934  Rule  13a-15  and  15d-15.  Based on that
evaluation,  the Chief Executive  Officer and Principal  Financial  Officer have
concluded  that  as of  the  end of the  period  covered  by  this  report,  the
Partnership's  disclosure controls and procedures were adequate and effective in
timely  alerting  them  to  material  information  relating  to the  Partnership
required to be included in the Partnership's periodic SEC filings.

Changes  in  internal  controls.  There  were no  changes  in the  Partnership's
internal control over financial reporting that occurred during the quarter ended
March 31, 2005 that materially affected,  or are reasonably likely to materially
affect, the Partnership's internal control over financial reporting.

PART III

Item 10. Directors and Executive Officers of the Registrant

(a)  Identification of Directors,  (b) Identification of Executive Officers, (c)
     ---------------------------------------------------------------------------
     Identification of Certain Significant Employees,  (d) Family Relationships,
     ---------------------------------------------------------------------------
     and (e) Business Experience
     ---------------------------
The  Partnership has no directors,  executive  officers or employees of its own.
The following biographical information is presented for the directors, executive
officers  and   significant   employees  of  Associates,   which  has  principal
responsibility for the Partnership's affairs.

Associates is a California corporation which was organized in 1971. Its officers
and significant employees are:

Wilfred N. Cooper, Sr.         Chairman of the Board
Wilfred N. Cooper, Jr.         President and Chief Executive Officer
David N. Shafer, Esq.          Executive Vice President
Sylvester P. Garban            Senior Vice President - Institutional Investments
Thomas J. Riha, CPA            Senior Vice President - Chief Financial Officer
Michael J. Gaber               Senior Vice President - Acquisitions
Edward W. Peters               President WNC Management, Inc.

In addition to Wilfred N. Cooper,  Sr., the directors of Associates  are Wilfred
N. Cooper, Jr., David N. Shafer, and Kay L. Cooper. The principal shareholder of
Associates is a trust established by Wilfred N. Cooper, Sr. and Kay L. Cooper.

Wilfred N.  Cooper,  Sr.,  age 73, is the founder  and  Chairman of the Board of
Directors of Associates,  a Director of WNC Capital  Corporation,  and a general
partner in some of the  partnerships  previously  sponsored by  Associates.  Mr.
Cooper has been actively involved in the affordable housing industry since 1968.
Previously,  during 1970 and 1971,  he was  founder and a principal  of Creative
Equity  Development  Corporation,  a predecessor of Associates,  and of Creative
Equity Corporation, a real estate investment firm. For 12 years before 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.  He has testified before committees of the U.S. Senate and the U.S.
House  of  Representatives.  Mr.  Cooper  is a Life  Director  of  the  National
Association of Home Builders,  a National  Trustee for NAHB's  Political  Action
Committee, and a past Chairman of NAH's Multifamily Council. He is a Director of
the National Housing Conference and a member of NHC's Board of Governors,  and a
founder and Director of the California Housing Consortium.  He is the husband of
Kay Cooper and the father of Wilfred N. Cooper,  Jr. Mr. Cooper  graduated  from
Pomona College in 1956 with a Bachelor of Arts degree.

                                       32
<PAGE>


Wilfred  N.  Cooper,  Jr.,  age  41,  is  President,  Chief  Executive  Officer,
Secretary,  a Director and a member of the Acquisition  Committee of Associates.
He is President and a Director of, and a registered  principal with, WNC Capital
Corporation, and is a Director and Vice President of WNC Management, Inc. He has
been involved in real estate  investment and acquisition  activities  since 1988
when he  joined  Associates.  Previously,  he  served  as a  Government  Affairs
Assistant with Honda North America in Washington, D.C. Mr. Cooper is a member of
the Editorial  Advisory  Boards of Affordable  Housing  Finance and LIHC Monthly
                                   ----------------------------     ------------
Report,  a  Steering  Member  of  the  Housing  Credit  Group  of  the  National
------
Association  of Home  Builders,  a  member  of the Tax  Policy  Council  for the
National Trust for Historic Preservation,  a member of the Advisory Board of the
New York State  Association for Affordable  Housing,  a member of the Urban Land
Institute and a member of TEC  International.  He is the son of Wilfred  Cooper,
Sr. and Kay Cooper.  Mr. Cooper  graduated from The American  University in 1985
with a Bachelor of Arts degree.

David N. Shafer, age 52, is Executive Vice President, a Director and a member of
the  Acquisition  Committee of  Associates,  and a Director,  Vice President and
Secretary of WNC Management,  Inc. Mr. Shafer has been active in the real estate
industry  since 1984.  Before  joining  Associates in 1990, he was engaged as an
attorney  in the private  practice  of law with a  specialty  in real estate and
taxation.  Mr. Shafer is a Director and past 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.

Sylvester  P.  Garban,   age  58,  is  Senior  Vice  President  -  Institutional
Investments  of  Associates   and  a  registered   principal  with  WNC  Capital
Corporation.  Mr. Garban has been involved in real estate investment  activities
since 1978.  Before  joining  Associates  in 1989,  he served as Executive  Vice
President with MRW,  Inc., a real estate  development  and management  firm. Mr.
Garban is a member of the National Association of Affordable Housing Lenders and
the Financial Planning Association.  He graduated from Michigan State University
in 1967 with a Bachelor of Science degree in Business Administration.

Thomas J. Riha, age 49, is Senior Vice President - Chief Financial Officer and a
member of the  Acquisition  Committee  and the  Commercial  Real Estate Group of
Associates and Vice President,  Treasurer and a Director of WNC Management, Inc.
He has been involved in real estate acquisition and investment  activities since
1979.  Before joining  Associates 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.

Michael J. Gaber,  age 38, is Senior Vice President - Acquisitions  and a member
of the Acquisition  Committee and the Commercial Real Estate Group of Associates
and a Vice President of WNC Management, Inc. Mr. Gaber has been involved in real
estate acquisition,  valuation and investment activities since 1989 and has been
associated  with  Associates  since 1997.  Prior to joining  Associates,  he was
involved in the valuation and  classification of major assets,  restructuring of
debt and analysis of real estate taxes with H.F.  Ahmanson & Company,  parent of
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.

Edward W. Peters, age 52, is President of WNC Management,  Inc. He has more than
12 years of  experience in all facets of property  management.  Prior to joining
WNC in 2003,  Mr.  Peters  served as Vice  President  and  Director  of Property
Management  at Design  Center  Housing  Services,  Inc.  and as Director at John
Stewart Company. He is a licensed real estate broker in the State of California,
a  certified  occupancy   specialist  (COS),  and  holds  two  national  housing
compliance  certificates:  the housing credit compliance professional (HCCP) and
the national credit compliance  professional-executive  (NCP-e). Mr. Peters is a
Director of the Affordable  Housing  Management  Association  and graduated from
Rutgers University in 1990 with a Master of Science degree in social work and in
1983 from Antioch University with a Master of Science degree in education.

Kay L. Cooper,  age 68, is a Director of  Associates.  Mrs.  Cooper was the sole
proprietor of Agate 108, a manufacturer and retailer of home accessory products,
from 1975 until its sale in 1998. She is the wife of Wilfred Cooper, Sr. and the
mother of Wilfred  Cooper,  Jr. Ms.  Cooper  graduated  from the  University  of
Southern California in 1958 with a Bachelor of Science degree.

                                       33


<PAGE>



(f)  Involvement in Certain Legal Proceedings
     ----------------------------------------
     Inapplicable.

(g)  Promoters and Control Persons
     -----------------------------
     Inapplicable.

(h)  Audit  Committee  Financial  Expert,  and (i)  Identification  of the audit
     ---------------------------------------------------------------------------
     Committee
     ---------
     Neither the Partnership nor Associates has an audit committee.

(j) Changes to Nominating Procedures
    --------------------------------

     Inapplicable

(k) Code of Ethics
    --------------
     WNC & Associates  has adopted a Code of Ethics  which  applies to the Chief
     Executive Officer and Chief Financial Officer of WNC & Associates. The Code
     of Ethics will be provided  without  charge to any person who  requests it.
     Such requests  should be directed to: Investor  Relations at  (714)662-5565
     extension 118.

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 accrues in an
     amount  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,  2005,  2004 and  2003.  The
     Partnership  paid the General  Partner or its  affiliates  $30,000 of those
     fees during the years ended March 31, 2005, 2004 and 2003.

(b)  Subordinated  Disposition Fee. A subordinated  disposition fee in an amount
     equal to 1% of the sale price may be 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, 2004, and
     (ii) 6% for the balance of the Partnership's term. No disposition fees have
     been incurred.

(c)  Operating Expenses.  The Partnership  reimbursed the General Partner or its
     affiliates for operating  expenses of  approximately  $25,500,  $27,500 and
     $25,000 during the years ended March 31, 2005, 2004 and 2003, respectively.

(d)  Interest  in  Partnership.   The  General   Partner   receives  1%  of  the
     Partnership's  allocated Low Income  Housing  Credits,  which  approximated
     $11,000,  $15,000 and  $15,000  for the  General  Partner for the tax years
     ending December 31, 2004, 2003 and 2002, respectively.  The General Partner
     is also entitled to receive a percentage of cash distributions.  There were
     no distributions of cash to the General Partner during the years presented.


                                       34


<PAGE>


Item 12.  Security  Ownership of Certain  Beneficial  Owners and  Management and
          Related Stockholder Matters

(a)  Securities Authorized for Issuance Under Equity Compensation Plans
     ------------------------------------------------------------------
     The  Partnership has no  compensation  plans under which  intereests in the
     Partnership are authorized for issuance.

(b)  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.

(c)  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.

(d)  Changes in Control
     ------------------
     The  management  and control of the General  Partner and of Associates  and
     their  affiliates  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,
     reimbursement  of  expenses,  and the General  Partne's  interests  in the
     Partnership,  as discussed in Item 11 and in the notes to the Partnership's
     financial statements.


                                       35


<PAGE>


Item 14.  Principal Accountant Fees and Services

The  following  is a  summary  of  fees  paid to the  Partnership's  independent
registered public accounting firm for the years ended March 31:
<TABLE>
<CAPTION>
                                             2005                2004
                                        ---------------     ---------------
<S>                                  <C>                   <C>

Audit Fees                            $         18,550     $        19,351
Audit-related Fees                                   -                   -
Tax Fees                                         3,000               1,625
All Other Fees                                       -                   -
                                        ---------------     ---------------

TOTAL                                 $         21,550     $        20,976
                                        ===============     ===============
</TABLE>


The  Partnership  has no Audit  Committee.  All audit services and any permitted
non-audit services performed by the Partnership's  independent registered public
accounting firm are preapproved by the General Partner.



                                       36


<PAGE>


PART IV.

Item 15. Exhibits and Financial Statement Schedules

Financial Statements

(a)(1) List of Financial statements included in Part II hereof:
       --------------------------------------------------------
       Unaudited Balance Sheets, March 31, 2005 and 2004
       Unaudited Statements of Operations for the years ended March 31, 2005,
       2004 and 2003
       Unaudited Statements of Partners' Equity (Deficit) for the years ended
       March 31, 2005, 2004 and 2003
       Unaudited Statements of Cash Flows for the years ended March 31, 2005,
       2004 and 2003
       Unaudited Notes to Financial Statements

(a)(2) List of Financial statement schedule included in Part IV hereof:
       ---------------------------------------------------------------
       Unaudited Schedule III - Real Estate Owned by Local Limited Partnerships

(a)(3) Exhibits.
       ---------

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

31.1    Certification  of the  Principal  Executive  Officer  pursuant to Rule
        13a-14  and  15d-14,  as  adopted  pursuant  to  section  302  of  the
        Sarbanes-Oxley Act of 2003. (filed herewith)

31.2    Certification  of the  Principal  Financial  Officer  pursuant to Rule
        13a-14  and  15d-14,  as  adopted  pursuant  to  section  302  of  the
        Sarbanes-Oxley Act of 2003. (filed herewith)

32.1    Section 1350  Certification  of the Chief  Executive  Officer.  (filed
        herewith)

32.2    Section 1350  Certification  of the Chief  Financial  Officer.  (filed
        herewith)

99.1    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 99.1.

99.2    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 99.2.

99.3    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 99.3.

99.4    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 99.4.

99.5    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 99.5.


                                       37

<PAGE>



99.6      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 99.6.

99.7      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 99.7.

99.8      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 99.8.

99.9      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 99.9.

99.10     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 99.10.

99.11     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 99.11.

99.12     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 99.12.

99.13     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 99.13.

99.14     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 99.14.

99.15     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 99.15.

99.16     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 99.16.

99.17     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 99.17.

99.18     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 99.18.

99.19     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 99.19.

99.20     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 99.20.

99.21     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 99.21.

                                      38

<PAGE>


99.22     Financial  Statements of Regency Court,  as of and for the years ended
          December 31, 2003 and 2002 together with Independent  Auditors' Report
          thereon;  filed as exhibit  99.6 on Form 10-K dated March 31,  2004; a
          significant subsidiary of the Partnership.

99.23     Financial  Statements  of Laurel Creek  Apartments,  as of and for the
          years ended  December  31,  2004 and 2003  together  with  Independent
          Auditors' Report thereon; a significant subsidiary of the Partnership.
          (filed herewith)



                                       39

<PAGE>




WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2005
<TABLE>
<CAPTION>
                           ------------------------------------------ --------------------------------------------------------------
                                    As of March 31, 2005                                   As of December 31, 2004
                           ------------------------------------------ --------------------------------------------------------------
                                    Total Investment   Amount of       Mortgage Loans of   Property                         Net
                                    in Local Limited   Investment      Local Limited       and             Accumulated      Book
Partnership Name    Location        Partnership        Paid to Date    Partnerships        Equipment       Depreciation     Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                 <C>             <C>               <C>             <C>                <C>               <C>           <C>

                    Alpine,
Alpine Manor, L.P.  Texas           $  195,000        $  195,000      $  895,000         $ 1,171,000      $  306,000     $  865,000

Baycity Village
Apartments,
Limited             Baytown,
Partnership         Texas              301,000           301,000       1,413,000           1,841,000         741,000      1,100,000

Beckwood Manor
Seven Limited       Marianna,
Partnership         Arkansas           307,000           307,000       1,367,000           1,805,000         712,000      1,093,000

Briscoe Manor
Limited             Galena,
Partnership         Maryland           308,000           308,000       1,464,000           1,845,000         692,000      1,153,000

Evergreen Four
Limited             Maynard,
Partnership         Arkansas           195,000           195,000         855,000           1,129,000         441,000        688,000

Fawn Haven
Limited             Manchester,
Partnership         Ohio               167,000           167,000         838,000           1,075,000         444,000        631,000

Fort Stockton       Ft. Stockton,
Manor, L.P.         Texas              224,000           224,000       1,032,000           1,248,000         307,000        941,000

                    Gallup,
Hidden Valley       New
Limited Partnership Mexico             412,000           412,000       1,460,000           2,016,000         538,000      1,478,000


HOI Limited         Lenoir,
Partnership Of      North
Lenoir              Carolina           198,000           198,000         497,000           1,174,000         379,000        795,000

Indian Creek        Bucyrus,
Limited Partnership Ohio               306,000           306,000       1,441,000           1,778,000         664,000      1,114,000

                    San Luis
Laurel Creek        Obispo,
Apartments          California       1,030,000         1,030,000         541,000           2,165,000         738,000      1,427,000
</TABLE>


                                       40
<PAGE>
WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2005
<TABLE>
<CAPTION>

                           ------------------------------------------ --------------------------------------------------------------
                                    As of March 31, 2005                                   As of December 31, 2004
                           ------------------------------------------ --------------------------------------------------------------
                                    Total Investment   Amount of       Mortgage Loans of   Property                         Net
                                    in Local Limited   Investment      Local Limited       and             Accumulated      Book
Partnership Name    Location        Partnership        Paid to Date    Partnerships        Equipment       Depreciation     Value
------------------------------------------------------------------------------------------------------------------------------------

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

Madisonville Manor
Senior Citizens     Madisonville,
Complex, Ltd.       Texas              174,000           174,000         888,000           1,159,000         218,000        941,000

Mt. Graham          Safford,
Housing, Ltd.       Arizona            410,000           410,000       1,380,000           1,917,000         733,000      1,184,000

Northside Plaza     Angleton,
Apartments, Ltd.    Texas              282,000           282,000       1,335,000           1,755,000        351,000       1,404,000

Pampa Manor, L.P.   Pampa, Texas       180,000           180,000         831,000           1,033,000        263,000         770,000

Regency Court       Monrovia,
Partners            California       1,692,000          1,690,000      4,858,000           7,708,000      1,789,000       5,919,000

Sandpiper Square,   Aulander,
a Limited           North
Partnership         Carolina           219,000            219,000        930,000           1,236,000        321,000         915,000

Seneca Falls        Seneca
East Apartments     Falls, New
Company II, L.P.    York               270,000            270,000        878,000           1,238,000        287,000         951,000

Vernon Manor, L.P.  Vernon, Texas      177,000            177,000        739,000             905,000        228,000         677,000

Waterford Place,    Calhoun
a Limited           Falls, South
Partnership         Carolina           272,000            272,000      1,157,000           1,503,000        623,000         880,000

Yantis
Housing, Ltd.       Yantis, Texas      145,000            145,000        615,000             699,000        186,000         513,000
                                 -------------      -------------   ------------        ------------   ------------    -------------
                                  $  7,464,000       $  7,462,000   $ 25,414,000        $ 36,400,000   $ 10,961,000    $ 25,439,000
                                 =============       ============   ============        ============    ===========    =============
</TABLE>

                                       41

<PAGE>


WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2005
<TABLE>
<CAPTION>

                              --------------------------------------------------------------------------------------
                                                      For the year ended December 31, 2004
                              --------------------------------------------------------------------------------------
                                                    Net Income     Year Investment                Estimated Useful
      Partnership Name          Rental Income         (Loss)          Acquired         Status       Life (Years)
--------------------------------------------------------------------------------------------------------------------
<S>                                    <C>            <C>              <C>            <C>              <C>

Alpine Manor, L.P.                     $ 124,000       $ (15,000)       1994           Completed         40

Baycity Village Apartments,
Limited Partnership                      301,000        (110,000)       1994           Completed         30

Beckwood Manor Seven Limited
Partnership                              172,000         (80,000)       1993           Completed       27.5

Briscoe Manor Limited
Partnership                              190,000         (28,000)       1994           Completed       27.5

Evergreen Four Limited
Partnership                              100,000         (22,000)       1994           Completed       27.5

Fawn Haven Limited
Partnership                               81,000         (30,000)       1994           Completed       27.5

Fort Stockton Manor, L.P.                140,000         (19,000)       1994           Completed         40

Hidden Valley Limited
Partnership                              192,000         (13,000)       1994           Completed         40

HOI Limited Partnership Of
Lenoir                                   163,000         (14,000)       1993           Completed         40

Indian Creek Limited
Partnership                              144,000         (37,000)       1994           Completed       27.5

Laurel Creek Apartments                  220,000          24,000        1994           Completed       27.5

Madisonville Manor Senior
Citizens Complex, Ltd.                   121,000          (2,000)       1994           Completed         50

Mt. Graham Housing, Ltd.                 183,000         (51,000)       1994           Completed       27.5

Northside Plaza Apartments,
Ltd.                                     173,000         (10,000)       1994           Completed         50

Pampa Manor, L.P.                         97,000         (20,000)       1994           Completed         40

Regency Court Partners                   758,000        (188,000)       1994           Completed         40

Sandpiper Square, a Limited
Partnership                              104,000         (24,000)       1994           Completed         35

Seneca Falls East Apartments
Company II, L.P.                         169,000         (24,000)       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, 2005
<TABLE>
<CAPTION>

                              --------------------------------------------------------------------------------------
                                                      For the year ended December 31, 2004
                              --------------------------------------------------------------------------------------
                                                    Net Income     Year Investment                Estimated Useful
      Partnership Name          Rental Income         (Loss)          Acquired         Status       Life (Years)
--------------------------------------------------------------------------------------------------------------------
<S>                                 <C>              <C>               <C>            <C>               <C>

Vernon Manor, L.P.                       106,000          (6,000)       1994           Completed         40

Waterford Place, a Limited
Partnership                              128,000         (35,000)       1994           Completed         40

Yantis Housing, Ltd.                      92,000          (2,000)       1994           Completed         40
                                     -----------      -----------
                                     $ 3,758,000      $ (706,000)
                                      ==========       ==========
</TABLE>


                                       43
<PAGE>


WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2004
<TABLE>
<CAPTION>
                           ------------------------------------------ --------------------------------------------------------------
                                    As of March 31, 2004                                   As of December 31, 2003
                           ------------------------------------------ --------------------------------------------------------------
                                    Total Investment   Amount of       Mortgage Loans of   Property                         Net
                                    in Local Limited   Investment      Local Limited       and             Accumulated      Book
Partnership Name    Location        Partnership        Paid to Date    Partnerships        Equipment       Depreciation     Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                <C>              <C>              <C>              <C>                <C>              <C>             <C>

                     Alpine,
Alpine Manor, L.P.   Texas           $  195,000        $  195,000      $  900,000          $ 1,171,000      $  278,000    $  893,000

Baycity Village
Apartments,         Baytown,
Limited Partnership Texas              301,000           301,000       1,428,000            1,838,000         677,000      1,161,000

Beckwood Manor
Seven Limited       Marianna,
Partnership         Arkansas           307,000           307,000       1,372,000            1,805,000         651,000      1,154,000

Briscoe Manor       Galena,
Limited Partnership Maryland           308,000           308,000       1,470,000            1,845,000         633,000      1,212,000

Evergreen Four
Limited             Maynard,
Partnership         Arkansas           195,000           195,000         859,000            1,129,000         403,000        726,000

Fawn Haven
Limited             Manchester,
Partnership         Ohio               167,000           167,000         843,000            1,073,000         407,000        666,000

Fort Stockton       Ft. Stockton
Manor, L.P.         Texas              224,000           224,000       1,037,000            1,248,000         277,000        971,000

                    Gallup,
Hidden Valley       New
Limited Partnership Mexico             412,000           412,000       1,466,000            2,005,000         482,000      1,523,000

HOI Limited         Lenoir,
Partnership Of      North
Lenoir              Carolina           198,000           198,000         512,000            1,174,000         346,000        828,000

Indian Creek        Bucyrus,
Limited Partnership Ohio               306,000           306,000       1,449,000            1,778,000         603,000      1,175,000

                    San Luis
Laurel Creek        Obispo,
Apartments          California       1,030,000         1,030,000         576,000            2,165,000         670,000      1,495,000
</TABLE>


                                       44
<PAGE>


WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2004
<TABLE>
<CAPTION>
                           ------------------------------------------ --------------------------------------------------------------
                                    As of March 31, 2004                                   As of December 31, 2003
                           ------------------------------------------ --------------------------------------------------------------
                                    Total Investment   Amount of       Mortgage Loans of   Property                         Net
                                    in Local Limited   Investment      Local Limited       and             Accumulated      Book
Partnership Name    Location        Partnership        Paid to Date    Partnerships        Equipment       Depreciation     Value
------------------------------------------------------------------------------------------------------------------------------------

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

Madisonville Manor
Senior Citizens     Madisonville,
Complex, Ltd.       Texas              174,000           174,000         892,000            1,154,000         188,000        966,000

Mt. Graham          Safford,
Housing, Ltd.       Arizona            410,000           410,000       1,387,000            1,908,000         664,000      1,244,000

Northside Plaza     Angleton,
Apartments, Ltd.    Texas              282,000           282,000       1,341,000            1,753,000         315,000      1,438,000

Pampa Manor, L.P.   Pampa, Texas       180,000           180,000         834,000            1,033,000         237,000        796,000

Regency             Monrovia,
Court Partners      California       1,692,000         1,690,000       4,045,000            7,707,000       1,593,000      6,114,000

Sandpiper Square,   Aulander,
a Limited           North
Partnership         Carolina           219,000           219,000         934,000            1,200,000         290,000        910,000

Seneca Falls        Seneca
East Apartments     Falls, New
Company II, L.P.    York               270,000           270,000         882,000           1,235,000         241,000        994,000

Vernon Manor, L.P.  Vernon, Texas      177,000           177,000         743,000             906,000         206,000        700,000

Waterford Place,    Calhoun
a Limited           Falls, South
Partnership         Carolina           272,000           272,000       1,163,000           1,503,000         574,000        929,000

Yantis
Housing, Ltd.       Yantis, Texas      145,000           145,000         619,000             843,000         206,000        637,000
                                   -----------        ----------     -----------         -----------     -----------    ------------
                                   $ 7,464,000       $ 7,462,000     $24,752,000         $36,473,000     $ 9,941,000     $26,532,000
                                   ===========       ===========     ===========         ===========     ===========    ============
</TABLE>

                                       45

<PAGE>



WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2004
<TABLE>
<CAPTION>
                              ---------------------------------------------------------------------------------------
                                                      For the year ended December 31, 2003
                              ---------------------------------------------------------------------------------------
                                                                       Year Investment               Estimated Useful
Partnership Name                     Rental Income        Net Loss     Acquired         Status       Life (Years)
---------------------------------------------------------------------------------------------------------------------
<S>                                    <C>             <C>             <C>             <C>              <C>

Alpine Manor, L.P.                      $122,000        $(15,000)       1994           Completed         40

Baycity Village Apartments,
Limited Partnership                      321,000         (31,000)       1994           Completed         30

Beckwood Manor Seven Limited
Partnership                              153,000         (64,000)       1993           Completed       27.5

Briscoe Manor Limited
Partnership                              187,000         (48,000)       1994           Completed       27.5

Evergreen Four Limited
Partnership                               86,000         (44,000)       1994           Completed       27.5

Fawn Haven Limited
Partnership                               87,000         (20,000)       1994           Completed       27.5

Fort Stockton Manor, L.P.                136,000         (15,000)       1994           Completed         40

Hidden Valley Limited
Partnership                              188,000         (23,000)       1994           Completed         40

HOI Limited Partnership Of
Lenoir                                   150,000         (35,000)       1993           Completed         40

Indian Creek Limited
Partnership                              148,000         (39,000)       1994           Completed       27.5

Laurel Creek Apartments                  206,000          19,000        1994           Completed       27.5

Madisonville Manor Senior
Citizens Complex, Ltd.                   122,000          (5,000)       1994           Completed         50

Mt. Graham Housing, Ltd.                 158,000         (60,000)       1994           Completed       27.5

Northside Plaza Apartments,
Ltd.                                     172,000         (15,000)       1994           Completed         50

Pampa Manor, L.P.                         93,000         (21,000)       1994           Completed         40

Regency Court Partners                   726,000        (227,000)       1994           Completed         40

Sandpiper Square, a Limited
Partnership                              105,000         (15,000)       1994           Completed         35

Seneca Falls East Apartments
Company II, L.P.                         152,000         (32,000)       1998           Completed         40
</TABLE>

                                       46

<PAGE>


WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2004
<TABLE>
<CAPTION>
                              ---------------------------------------------------------------------------------------
                                                      For the year ended December 31, 2003
                              ---------------------------------------------------------------------------------------
                                                                       Year Investment               Estimated Useful
Partnership Name                     Rental Income        Net Loss     Acquired         Status       Life (Years)
---------------------------------------------------------------------------------------------------------------------
<S>                                  <C>             <C>               <C>            <C>               <C>

Vernon Manor, L.P.                       107,000          (2,000)       1994           Completed         40

Waterford Place, a Limited
Partnership                              132,000         (39,000)       1994           Completed         40

Yantis Housing, Ltd.                      82,000         (17,000)       1994           Completed         40
                                     -----------     ------------
                                     $ 3,633,000     $  (748,000)
                                     ===========     ============
</TABLE>

                                       47

<PAGE>


WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2003
<TABLE>
<CAPTION>

                               -------------------------------------- --------------------------------------------------------------
                                    As of March 31, 2003                                   As of December 31, 2002
                               -------------------------------------- --------------------------------------------------------------
                                    Total Investment   Amount of       Mortgage Loans of   Property                         Net
                                    in Local Limited   Investment      Local Limited       and             Accumulated      Book
Partnership Name    Location        Partnership        Paid to Date    Partnerships        Equipment       Depreciation     Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                 <C>            <C>                <C>             <C>                <C>              <C>              <C>

                    Alpine,
Alpine Manor, L.P.  Texas           $  195,000         $  195,000      $ 904,000          $ 1,169,000      $  249,000      $ 920,000

Baycity Village
Apartments,
Limited             Baytown,
Partnership         Texas              301,000            301,000      1,442,000            1,837,000         613,000      1,224,000

Beckwood Manor
Seven Limited       Marianna,
Partnership         Arkansas           307,000            307,000      1,377,000            1,805,000         589,000      1,216,000

Briscoe Manor
Limited             Galena,
Partnership         Maryland           308,000            308,000      1,476,000            1,845,000         570,000      1,275,000

Evergreen Four
Limited             Maynard,
Partnership         Arkansas           195,000            195,000        862,000            1,129,000         364,000        765,000

Fawn Haven
Limited             Manchester,
Partnership         Ohio               167,000            167,000        847,000            1,072,000         370,000        702,000

Fort Stockton       Ft. Stockton,
Manor, L.P.         Texas              224,000            224,000      1,042,000            1,249,000         246,000      1,003,000

                    Gallup,
Hidden Valley       New
Limited Partnership Mexico             412,000            412,000      1,472,000            1,988,000         430,000      1,558,000

HOI Limited         Lenoir,
Partnership Of      North
Lenoir              Carolina           198,000            198,000        526,000            1,178,000         316,000        862,000

Indian Creek        Bucyrus,
Limited Partnership Ohio               306,000            306,000      1,456,000            1,776,000         543,000      1,233,000

                    San Luis
Laurel Creek        Obispo,
Apartments          California       1,030,000          1,030,000        609,000            2,165,000         602,000      1,563,000
</TABLE>

                                       48
<PAGE>
WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2003
<TABLE>
<CAPTION>
                               -------------------------------------- --------------------------------------------------------------
                                    As of March 31, 2003                                   As of December 31, 2002
                               -------------------------------------- --------------------------------------------------------------
                                    Total Investment   Amount of       Mortgage Loans of   Property                         Net
                                    in Local Limited   Investment      Local Limited       and             Accumulated      Book
Partnership Name    Location        Partnership        Paid to Date    Partnerships        Equipment       Depreciation     Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                 <C>               <C>              <C>             <C>                 <C>               <C>            <C>

Madisonville Manor
Senior Citizens     Madisonville,
Complex, Ltd.       Texas              174,000            174,000        895,000           1,151,000         164,000        987,000

Mt. Graham          Safford,
Housing, Ltd.       Arizona            410,000            410,000      1,394,000           1,886,000         594,000       1,292,000

Northside Plaza     Angleton,
Apartments, Ltd.    Texas              282,000            282,000      1,348,000           1,745,000         280,000       1,465,000

Pampa Manor, L.P.   Pampa, Texas       180,000            180,000        838,000           1,032,000         212,000         820,000

Regency             Monrovia,
Court Partners      California       1,692,000          1,690,000      5,017,000           7,707,000       1,396,000       6,311,000

Sandpiper Square,   Aulander,
a Limited           North
Partnership         Carolina           219,000            219,000        938,000           1,193,000         261,000         932,000

Seneca Falls        Seneca
East Apartments     Falls, New
Company II, L.P.    York              270,000             270,000        885,000           1,229,000         195,000       1,034,000

Vernon Manor, L.P.  Vernon, Texas     177,000             177,000        745,000             905,000         184,000         721,000

Waterford Place,    Calhoun
a Limited           Falls, South
Partnership         Carolina          272,000             272,000      1,169,000           1,503,000         513,000         990,000

Yantis              Yantis,
Housing, Ltd.       Texas             145,000             145,000        622,000             842,000         185,000         657,000
                                  -----------         -----------    -----------        ------------     -----------     -----------
                                  $ 7,464,000         $ 7,462,000    $25,864,000         $36,406,000     $ 8,876,000     $27,530,000
                                  ===========         ===========    ===========        ============     ===========     ===========
</TABLE>

                                       49


<PAGE>



WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2003
<TABLE>
<CAPTION>
                              --------------------------------------------------------------------------------------
                                                      For the year ended December 31, 2002
                              --------------------------------------------------------------------------------------
                                                                      Year Investment               Estimated Useful
Partnership Name                    Rental Income      Net Loss       Acquired          Status      Life (Years)
--------------------------------------------------------------------------------------------------------------------
<S>                                   <C>            <C>                <C>           <C>               <C>

Alpine Manor, L.P.                     $ 121,000      $  (17,000)       1994           Completed         40

Baycity Village Apartments,
Limited Partnership                      309,000         (31,000)       1994           Completed         30

Beckwood Manor Seven Limited
Partnership                              148,000         (41,000)       1993           Completed       27.5

Briscoe Manor Limited
Partnership                              179,000         (50,000)       1994           Completed       27.5

Evergreen Four Limited
Partnership                               83,000         (40,000)       1994           Completed       27.5

Fawn Haven Limited
Partnership                               85,000         (15,000)       1994           Completed       27.5

Fort Stockton Manor, L.P.                131,000         (22,000)       1994           Completed         40

Hidden Valley Limited
Partnership                              182,000         (23,000)       1994           Completed         40

HOI Limited Partnership Of
Lenoir                                   148,000         (18,000)       1993           Completed         40

Indian Creek Limited
Partnership                              148,000         (28,000)       1994           Completed       27.5

Laurel Creek Apartments                  194,000         (19,000)       1994           Completed       27.5

Madisonville Manor Senior
Citizens Complex, Ltd.                   110,000          (1,000)       1994           Completed         50

Mt. Graham Housing, Ltd.                 148,000         (64,000)       1994           Completed       27.5

Northside Plaza Apartments,
Ltd.                                     171,000         (10,000)       1994           Completed         50

Pampa Manor, L.P.                         95,000         (26,000)       1994           Completed         40

Regency Court Partners                   686,000         (75,000)       1994           Completed         40

Sandpiper Square, a Limited
Partnership                               98,000         (23,000)       1994           Completed         35

Seneca Falls East Apartments
Company II, L.P.                         152,000         (25,000)       1998           Completed         40
</TABLE>


                                       50

<PAGE>


WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2003
<TABLE>
<CAPTION>
                              --------------------------------------------------------------------------------------
                                                      For the year ended December 31, 2002
                              --------------------------------------------------------------------------------------
                                                                      Year Investment                Estimated Useful
Partnership Name                    Rental Income       Net Loss      Acquired          Status       Life (Years)
--------------------------------------------------------------------------------------------------------------------
<S>                                     <C>             <C>            <C>             <C>               <C>

Vernon Manor, L.P.                        96,000          (8,000)       1994           Completed         40

Waterford Place, a Limited
Partnership                              126,000         (46,000)       1994           Completed         40


Yantis Housing, Ltd.                      77,000         (24,000)       1994           Completed         40
                                      ----------       ----------
                                     $ 3,487,000      $ (606,000)
                                     ===========      ===========
</TABLE>


                                       51

<PAGE>

                                   SIGNATURES


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

By:      WNC & Associates, Inc.,
         General Partner




         By:      /s/ Wilfred N. Cooper, Jr.
                  --------------------------
                  Wilfred N. Cooper, Jr.,
                  President of WNC & Associates, Inc.

Date:  November 21, 2005

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




By:      /s/ Wilfred N. Cooper, Jr.
         --------------------------
         Wilfred N. Cooper, Jr.,
         Chief Executive Officer, President and Director of
         WNC & Associates, Inc. (chief executive officer)

Date:  November 21, 2005




By:      /s/ Thomas J. Riha
         ------------------
         Thomas J. Riha,
         Senior Vice-President - Chief Financial Officer of
         WNC & Associates, Inc. (chief financial officer and principal
         accounting officer)

Date:  November 21, 2005




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

Date:  November 21, 2005




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

Date:  November 21, 2005


                                       52