FORM 10-K

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   (Mark One)

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

                    For the fiscal year ended March 31, 2000

                                       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: 0-28370


                 WNC HOUSING TAX CREDIT FUND IV, L.P. - Series 2

California                                                           33-0596399
State or other jurisdiction of                                 (I.R.S. Employer
incorporation or organization                                Identification No.)


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

                                 (714) 662-5565

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

                                      NONE

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

                      UNITS OF LIMITED PARTNERSHIP INTEREST

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

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


<PAGE>


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

                                  INAPPLICABLE


                       DOCUMENTS INCORPORATED BY REFERENCE

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

                                      NONE














                                       2
<PAGE>
PART I.

Item 1.  Business

Organization

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

The general  partner of the Partnership is WNC Tax Credit Partners IV, L.P. (the
"General  Partner").  The  general  partner  of  the  General  Partner  is WNC &
Associates,  Inc.  ("Associates").  Wilfred N. Cooper,  Sr.,  through the Cooper
Revocable  Trust,  owns 66.8% of the  outstanding  stock of Associates.  John B.
Lester,  Jr.  was the  original  limited  partner of the  Partnership  and owns,
through the Lester Family Trust,  28.6% of the outstanding  stock of Associates.
Wilfred N. Cooper,  Jr.,  President of Associates,  owns 2.1% of the outstanding
stock of  Associates.  The business of the  Partnership  is conducted  primarily
through the general partner, as the Partnership has no employees of its own.

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

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

Description of Business

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

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

                                       3
<PAGE>

of the Local Limited Partnership.  Notwithstanding the preceding,  circumstances
beyond the  control of the General  Partner or the Local  General  Partners  may
occur during the  Compliance  Period,  which would  require the  Partnership  to
approve the disposition of a Housing Complex prior to the end thereof,  possibly
resulting in recapture of Low Income Housing Credits.

As of March 31, 2000, the Partnership  had invested in twenty-two  Local Limited
Partnerships.  Each of these Local Limited  Partnerships  owns a Housing Complex
that is eligible  for the  federal  Low Income  Housing  Credit.  Certain  Local
Limited Partnerships may also benefit from government programs promoting low- or
moderate-income housing.

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

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

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

Item 2.  Properties

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


                                       4
<PAGE>
<TABLE>
<CAPTION>

                                                         -----------------------------  --------------------------------------------
                                                              As of March 31, 2000                As of December 31, 1999
                                                         -----------------------------  --------------------------------------------
                                                        Partnership's                                                   Encumbrances
                                                        Total Investment  Amount of                      Estimated Low  of Local
                                      General Partner   in Local Limited  Investment    Number    Occu-  Income Housing Limited
Partnership Name        Location      Name              Partnerships      Paid to Date  of Units  pancy  Credits        Partnerships
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                          <C>         <C>            <C>         <C>    <C>          <C>
Apartment Housing of    East          Apartment Developers
East Brewton, Ltd.      Brewton,      Inc. and Thomas H.
                        Alabama       Cooksey                $ 1,920,000 $ 1,192,000     40         98%       1,863,000 $  1,150,000

Autumn Trace            Silsbee,      Olsen Securities Corp.     412,000     412,000     58         90%    $    714,000    1,261,000
Associates, Ltd.        Texas

Broken Bow Apartments   Broken Bow,   Retro Development,
I, Limited Partnership  Nebraska      Inc.                       608,000     608,000     16         75%       1,127,000      750,000

Candleridge Apartments  Waukee,       Eric A. Sheldahl           125,000     125,000     23        100%         230,000      682,000
of Waukee L.P. II       Iowa

Chadwick Limited        Edan, North   Boyd Management, Inc.
Partnership             Carolina      Gordon L. Blackwell
                                      and Regency
                                      Investment Associates      378,000     378,000     48        100%         735,000    1,561,000

Comanche Retirement     Comanche,     Max L. Rightmer            136,000     136,000     22        100%         265,000      592,000
Village, Ltd.           Texas

Crossings II Limited    Portage,      Raymond T. Cato, Jr.       432,000     432,000    114         90%         739,000    5,992,000
Dividend Housing        Michigan
Association Limited
Partnership

EW, a Wisconsin         Evansville,   Philip Wallis, James
Limited Partnership     Wisconson     Poehlman, Cynthia
                                      Solfest Wallis, and
                                      Anita Poehlman             164,000     164,000     16         50%         306,000      619,000
</TABLE>
                                       5
<PAGE>
<TABLE>
<CAPTION>

                                                         -----------------------------  --------------------------------------------
                                                              As of March 31, 2000                As of December 31, 1999
                                                         -----------------------------  --------------------------------------------
                                                        Partnership's                                                   Encumbrances
                                                        Total Investment  Amount of                      Estimated Low  of Local
                                      General Partner   in Local Limited  Investment    Number    Occu-  Income Housing Limited
Partnership Name        Location      Name              Partnerships      Paid to Date  of Units  pancy  Credits        Partnerships
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                           <C>         <C>            <C>       <C>        <C>          <C>
Garland Street Limited  Malvarn,      Conrad L. Beggs,
Partnership             Arkansas      Audrey D. Beggs,
                                      Russell J. Altizer,
                                      and Marjorie L. Beggs     164,000     164,000      18        100%         319,000      696,000

Hereford Seniors        Hereford,     Winston Sullivan          167,000     167,000      28         96%         330,000      802,000
Community, Ltd.         Texas

Hickory Lane            Newton,       Olsen Securities Corp.    174,000     174,000      24         92%         320,000     596,000
Associates, Ltd         Texas

Honeysuckle Court       Vidor,        Olsen Securities Corp     339,000     339,000      48        100%         622,000    1,165,000
Associates, Ltd.        Texas

Klimpel Manor, Ltd      Fullerton,    Klimpel Manor
                        California    Apartments              1,774,000   1,774,000      59        100%       3,360,000    1,962,000

Lamesa Seniors          Lamesa,       Winston Sullivan          143,000     143,000      24         92%         284,000      673,000
Community, Ltd.         Texas

Laredo Heights          Navasota,     Donald W. Sowell          225,000     225,000      48         96%         413,000      995,000
Apartments Ltd.         Texas

Mountainview            North         John C. Loving and
Apartments Limited      Wilkesboro,   Gordon D. Brown, Jr.      195,000     195,000      24        100%         387,000      998,000
Partnership             North
                        Carolina

Palestine Seniors       Palestine,    Winston Sullivan          225,000     225,000      42        100%         446,000    1,128,000
Community, Ltd.         Texas

Pecan Grove Limited     Forrest       Conrad Beggs, Audrey
Partnership             City,         Beggs and Russell
                        Arkansas      Altizer                   240,000     240,000      32         97%         486,000    1,114,000
</TABLE>
                                       6
<PAGE>
<TABLE>
<CAPTION>

                                                         -----------------------------  --------------------------------------------
                                                              As of March 31, 1999                  As of December 31, 1998
                                                         -----------------------------  --------------------------------------------
                                                        Partnership's                                                   Encumbrances
                                                        Total Investment  Amount of                      Estimated Low  of Local
                                      General Partner   in Local Limited  Investment    Number    Occu-  Income Housing Limited
Partnership Name        Location      Name              Partnerships      Paid to Date  of Units  pancy  Credits        Partnerships
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                         <C>          <C>             <C>        <C>   <C>           <C>
Pioneer Street          Bakersfield,  Philip R. Hammond,
Associates              California    Jr. and Walter A.
                                      Dwelle                   2,222,000   2,222,000     112        92%       4,116,000    1,883,000

Sidney Apartments I,    Sidney,       Retro Development,
Limited Partnership     Nebraska      Inc.  And Most
                                      Worshipful Prince
                                      Hall Grand Lodge           530,000     530,000      18        72%         972,000      436,000

Southcove Associates    Orange Cove,  Philip R. Hammond,       2,000,000   2,000,000      54        91%       3,585,000    1,532,000
                        Califonia     Jr. and Diane M.
                                      Hammond

Walnut Turn             Buna,         Olsen Securities Corp.     188,000     188,000      24        92%         344,000      690,000
Associates, Ltd.        Texas                                 ----------  ----------     ---     ------      ----------   ----------
                                                            $ 12,033,000 $12,033,000     892     91.96%    $ 21,963,000 $ 27,277,000
                                                              ==========  ==========     ===     ======      ==========   ==========

</TABLE>

                                       7



<PAGE>
<TABLE>
<CAPTION>
                                            -----------------------------------------------------------------------
                                                               For the year ended December 31, 1999
                                            -----------------------------------------------------------------------
                                                                                        Low Income Housing Credits
Partnership Name                            Rental Income               Net loss        Allocated to Partnership
--------------------------------------------------------------------------------------------------------------------
<S>                                         <C>                     <C>                                   <C>
Apartment Housing of East
Brewton, Ltd.                               $     91,000            $    (78,000)                         98.99%

Autumn Trace Associates, Ltd.                    204,000                 (50,000)                         95.00%

Broken Bow Apartments I,
Limited Partnership                               43,000                (111,000)                         99.00%

Candleridge Apartments of
Waukee L.P. II                                   120,000                 (10,000)                         99.00%

Chadwick Limited Partnership                     188,000                 (62,000)                         99.00%

Comanche Retirement Village,
Ltd.                                              68,000                 (15,000)                         99.00%

Crossings II Limited Dividend
Housing Association Limited
Partnership                                      665,000                (140,000)                         98.99%

EW, a Wisconsin Limited
Partnership                                       99,000                 (31,000)                         99.00%

Garland Street Limited
Partnership                                       66,000                 (29,000)                         99.00%

Hereford Seniors Community,
Ltd.                                              93,000                  (5,000)                         99.00%

Hickory Lane Associates, Ltd                     115,000                 (16,000)                         99.00%

Honeysuckle Court Associates,
Ltd.                                             194,000                 (23,000)                         95.00%

Klimpel Manor, Ltd                               362,000                 (74,000)                         96.00%

</TABLE>
                                       8
<PAGE>

<TABLE>
<CAPTION>
                                            -----------------------------------------------------------------------
                                                               For the year ended December 31, 1999
                                            -----------------------------------------------------------------------
                                                                                        Low Income Housing Credits
Partnership Name                            Rental Income               Net loss        Allocated to Partnership
--------------------------------------------------------------------------------------------------------------------
<S>                                         <C>                     <C>                                   <C>
Lamesa Seniors Community, Ltd.                    81,000                 (11,000)                         99.00%

Laredo Heights Apartments Ltd.                   146,000                  (3,000)                         99.00%

Mountainview Apartments
Limited Partnership                               93,000                 (13,000)                         99.00%

Palestine Seniors Community,
Ltd.                                             142,000                   5,000                          99.00%

Pecan Grove Limited Partnership                  120,000                 (42,000)                         99.00%

Pioneer Street Associates                        482,000                 (54,000)                         99.00%

Sidney Apartments I, Limited
Partnership                                       62,000                 (47,000)                         99.00%

Southcove Associates                             213,000                (109,000)                         99.00%

Walnut Turn Associates, Ltd.                      90,000                 (29,000)                         99.00%
                                               ---------                --------
                                            $  3,737,000            $   (947,000)
                                               =========                ========

</TABLE>





                                       9

<PAGE>
Item 3.  Legal Proceedings

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

The six Local Limited Partnerships (hereinafter referred to as "Defendants") are
now defendants in a separate lawsuit.  The lawsuit has been filed by eight other
partnerships   in  which  the  local  general   partner  of  the  Local  Limited
Partnerships is or was involved (the  "Plaintiffs").  The Plaintiffs allege that
the local general  partner  accepted  funds from the  Plaintiffs  and improperly
loaned these funds to the  Defendants.  Discovery in this lawsuit is ongoing and
Associates  will  continue  to pursue  an  aggressive  defense  on behalf of the
Defendants.

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

NONE.

PART II.

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

Item 5a.

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

(b)  At March 31, 2000, there were 845 Limited Partners.

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

(d)  No  unregistered  securities  were sold by the  Partnership during the year
     ended March 31, 2000.

Item 5b.

NOT APPLICABLE


                                       10


<PAGE>


Item 6.  Selected Financial Data

Selected balance sheet information for the Partnership is as follows:
<TABLE>
<CAPTION>
                               March 31                               December 31
                       --------------------------  ---------------------------------------------------
                            2000         1999         1998         1997         1996         1995
                         -----------  -----------  -----------  -----------  -----------  -----------
<S>                    <C>          <C>          <C>          <C>          <C>          <C>
ASSETS
Cash and cash
 equivalents           $    180,133 $    552,348 $    738,364 $  1,480,862 $  2,371,389 $  5,285,730
Investments in
 limited                  8,311,454   10,092,782   10,274,595    9,738,583   10,096,100    9,417,744
 partnerships, net
Due from affiliate                -            -            -            -       53,200            -
Loans receivable                  -            -            -      259,496            -            -
Other assets                    998          998        2,534       20,245       10,956       29,568
                         -----------  -----------  -----------  -----------  -----------  -----------

                       $  8,492,585 $ 10,646,128 $ 11,015,493 $ 11,499,186 $ 12,531,645 $ 14,733,042
                         ===========  ===========  ===========  ===========  ===========  ===========

LIABILITIES
Payables  to limited
 partnerships          $          - $    421,025 $    605,517 $    411,543 $    666,716 $  2,134,797
Accrued expenses             86,965            -            -            -            -            -
Accrued fees and
 expenses due to
 general partner
 and affiliates              72,598       29,722       28,066        1,137        9,339      146,685

PARTNERS' EQUITY          8,333,022   10,195,381   10,381,910   11,086,506   11,855,590   12,451,560
                         -----------  -----------  -----------  -----------  -----------  -----------

                       $  8,492,585 $ 10,646,128 $ 11,015,493 $ 11,499,186 $ 12,531,645 $ 14,733,042
                         ===========  ===========  ===========  ===========  ===========  ===========

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

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

                            2000          1999         1998         1998         1997         1996         1995
                          ----------   -----------  -----------  -----------   ----------   ----------   ----------
                                                    (Unaudited)

Income (loss) from
 operations (Note 1)     $  (870,197) $   (21,846) $   (1,492) $  (50,484) $   (31,969) $    55,374 $     56,606
Equity in losses of
 limited
 partnerships               (992,162)    (164,683)   (191,552) $ (658,728)    (737,115)    (628,631)    (628,521)
                          -----------  -----------  ----------  ----------   ----------   ----------   ----------


Net loss                $ (1,862,359) $  (186,529) $ (193,044) $ (709,212) $  (769,084) $  (573,257) $  (571,915)
                          ===========  ===========  ==========  ==========   ==========   ==========   ==========

Net loss allocated to:
 General partner        $    (18,624) $    (1,865) $   (1,930) $   (7,092) $    (7,691) $    (5,733) $    (5,719)
                          ===========  ===========  ==========  ==========   ==========   ==========   ==========

 Limited partners       $ (1,843,735) $  (184,664) $ (191,114) $ (702,120) $  (761,393) $  (567,524) $  (566,196)
                          ===========  ===========  ==========  ==========   ==========   ==========   ==========

Net loss per limited
 partner unit           $    (118.19) $    (11.84) $   (12.25) $   (45.01) $    (48.81) $    (36.38) $    (46.90)
                          ===========  ===========  ==========  ==========   ==========   ==========   ==========


Outstanding weighted
 limited partner units        15,600       15,600      15,600      15,600       15,600       15,600       12,073
                          ===========  ===========  ==========  ==========   ==========   ==========   ==========

</TABLE>

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

                                       11

<PAGE>
<TABLE>
<CAPTION>
                            For the
                             Year
                             Ended         For the Three Months                    For the Years Ended
                            March 31          Ended March 31                           December 31
                          -----------  ------------------------  ---------------------------------------------------
                            2000          1999         1998         1998         1997         1996         1995
                          -----------  -----------  -----------  -----------   ----------   ----------   -----------
                                                    (Unaudited)
<S>                     <C>          <C>           <C>         <C>           <C>          <C>          <C>
Net cash provided by
 (used in):
 Operating activities   $   (19,827) $     (8,424) $    12,245 $     26,255  $    52,765  $    60,895  $    54,970
 Investing activities      (352,388)     (177,592)    (109,910)    (768,753)    (935,090)  (2,837,890)  (5,315,585)
 Financing activities             -             -            -            -       (8,202)    (137,346)   9,826,215
                          ----------   -----------  -----------  -----------   ----------   ----------   ----------

Net change in cash and
 cash equivalents          (372,215)     (186,016)     (97,665)    (742,498)    (890,527)  (2,914,341)   4,565,600

Cash and cash
 equivalents,
 beginning of period        552,348       738,364    1,480,862    1,480,862    2,371,389    5,285,730      720,130
                          ----------   -----------  -----------  -----------   ----------   ----------   ----------

Cash and cash
 equivalents,
 end of period          $   180,133  $    552,348  $ 1,383,197 $    738,364  $ 1,480,862  $ 2,371,389  $ 5,285,730
                          ==========   ===========  ===========  ===========   ==========   ==========   ==========

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

                                1999              1998               1997               1996              1995
                           ---------------   ----------------   ---------------    ---------------   ----------------

Federal                    $         135      $         124     $         113      $         105     $           76
State                                  -                  -                 -                  -                  -
                           --------------     --------------    --------------     --------------    ---------------

Total                      $         135      $         124     $         113      $         105     $           76
                           ==============     ==============    ==============     ==============    ===============
</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  Consolidated  Financial  Statements and the Notes thereto
included elsewhere in this filing.

                                       12
<PAGE>
Uncertainty with Respect to Investment in Broken Bow and Sidney

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

The independent  auditors engaged to perform an audit of Broken Bow and Sidney's
financial statements as of and for the year ended December 31, 1999, were unable
to form an opinion on those financial statements.  This was due to the inability
to  obtain  from  the  former  local  general  partner  certain  general  ledger
information   for  a  period  of   approximately   three   months  and  reliable
confirmations  of advances  to/notes  receivable  from the former local  general
partner.  Further,  the  independent  auditors were unable to obtain  management
representation  letters from the former property management company, which is an
affiliate of the former local general partner.  As a result, the Partnership has
not included the financial  information of Broken Bow and Sidney in the combined
condensed financial statements presented in Note 3 to the financial  statements.
The  combined  condensed  financial  information  presented  in Note 3 for prior
periods has been restated to exclude the accounts of Broken Bow and Sidney.  The
Partnership  has  reflected  equity in the net  losses of Broken  Bow and Sidney
totaling  $156,823  ($(10.05) per limited  partnership  unit) for the year ended
March 31, 2000,  based on nine months of reported results provided by Broken Bow
and  Sidney  and on three  months  of  results  estimated  by  Associates.  Such
estimates may be materially misstated due to the lack of corroborative financial
information.

Broken  Bow  and  Sidney  continue  to  experience   negative  cash  flows  from
operations.  During the year ended  March 31,  2000,  the  Partnership  advanced
$120,906  in cash to Broken  Bow and Sidney for  operating  expenses,  including
legal fees relating to certain  litigation  involving these and other properties
as  outlined  in Note 8, as well as  another  $30,753  in cash  since  year end.
Associates  is currently  negotiating  for a  restructuring  of the related bank
loans,  which would  increase cash flow from  operations.  Associates may not be
successful  in  the   restructuring  of  these  loans.  If  the  loans  are  not
restructured,  the  Partnership  may be  unable  to  support  these  properties.
Consequently,  the  Partnership  may be forced  to sell all or a portion  of its
interests in these properties.  Further,  the lender may attempt to foreclose on
the Broken Bow and Sidney properties.

As a result of the  foregoing,  Associates  has  performed an  evaluation of the
Partnership's remaining investment balances in Broken Bow and Sidney,  including
the  cash  advances  noted  above  and  other  anticipated  costs.  It has  been
determined that an impairment  adjustment is necessary and an impairment loss of
$766,559 has been  recognized at March 31, 2000.  This  impairment loss includes
$558,688 in remaining book value of the Partnership's  investments in Broken Bow
and Sidney  after the write off of $107,283  due to Broken Bow and  Sidney,  the
$120,906 and $30,753 cash  advances,  a $37,670  accrual for  anticipated  legal
costs, and $18,542 of estimated accounting and other related costs.

As a result of the aforementioned  operating  difficulties and the litigation as
discussed in Item 3, Legal  Proceedings,  there is uncertainty as to whether the
Partnership  will ultimately  retain its interests in Broken Bow and Sidney.  If
the  investments are sold or otherwise not retained,  the  Partnership  could be
subject to recapture of tax credits and certain prior tax  deductions.  There is
further  uncertainty as to costs that the  Partnership  may ultimately  incur in
connection  with its  investments  in Broken Bow and Sidney.  The  Partnership's
financial  statements do not include any adjustments  that might result from the
outcome of these uncertainties.

Financial Condition

The  Partnership's  assets at March 31, 2000 consisted  primarily of $180,000 in
cash and aggregate  investments in the twenty-two Local Limited  Partnerships of
$8,311,000.  Liabilities  at March 31, 2000  primarily  consisted  of $87,000 of
accrued expenses and $73,000 due to General Partner or affiliates for advances.

                                       13

<PAGE>
Results of Operations

Year  Ended  March 31,  2000  Compared  to Year Ended  December  31,  1998.  The
Partnerships  net loss for the  year  ended  March  31,  2000 was  $(1,862,000),
reflecting an increase of  $(1,153,000)  from the net loss  experienced  for the
year ended December 31, 1998 of  $(709,000).  The increase in net loss is due to
the impairment loss recorded in connection  with two of the limited  partnership
investments  totaling  $(767,000),  a reduction  in income of  $(29,000)  and an
increase in the equity in losses of limited partnerships of $(333,000).


Three Months Ended March 31, 1999 Compared to Three Months Ended March 31, 1998.
The  Partnership's  net loss for the  three  months  ended  March  31,  1999 was
$187,000  reflecting a decrease of $6,000 from the net loss  experienced for the
three months ended March 31, 1998.  The decline in net loss is primarily  due to
equity in losses of limited partnerships which declined by $27,000 to $(165,000)
for the three months ended March 31, 1999 from  $(192,000)  for the three months
ended March 31, 1998.  The reduction in equity losses  recognized  was partially
offset by an increase in loss from  operations  of $21,000 to $(22,000)  for the
three months ended March 31, 1999 from $(1,000) for the three months ended March
31, 1998, due to a comparable  increase in operating  expense  allocations and a
decrease in interest income.

Year Ended  December 31, 1998  Compared to Year Ended  December  31,  1997.  The
Partnership's net loss for 1998 was $(709,000), reflecting a decrease of $60,000
from the net loss  experienced in 1997. The decline in net loss is primarily due
to equity in losses from limited  partnerships  which  declined to $(659,000) in
1998 from $(737,000) in 1997 and a decrease in  amortization  expense of $9,000,
partially offset by a decrease in interest income of $27,000.

Cash Flows

Year Ended March 31, 2000 Compared to Year Ended December 31, 1998. Net decrease
in for the year ended March 31, 2000 was  $(372,000)  compared to a net decrease
in cash for the year ended December 31, 1998 of  $(742,000).  The change was due
primarily  to a decrease  in  investments  in limited  partnerships  of $787,000
offset  by  an  increase  of   $(121,000)  in  cash  advances  paid  to  limited
partnerships  and a decrease in loans  collected  from limited  partnerships  of
$(259,000). * * * *

Three Months Ended March 31, 1999 Compared to Three Months Ended March 31, 1998.
Net cash used  during the three  months  ended  March 31,  1999 was  $(186,000),
compared  to net cash used  during  the three  months  ended  March 31,  1998 of
$(98,000). The change was due primarily to an increase in investments in limited
partnerships of $72,000 and an increase in cash used for operating activities of
$20,000,   partially  offset  by  an  increase  in  distributions  from  limited
partnerships of $4,000.

Year Ended  December 31, 1998 Compared to Year Ended December 31, 1997. Net cash
used in 1998 was  $(742,000),  compared to net cash used in 1997 of  $(891,000).
The  change was due  primarily  to a decrease  in cash used for  investments  in
limited partnerships of $164,000, a refund of offering expenses received in 1998
of $5,000,  and a decrease in cash paid to the General Partner and or affiliates
of  $17,000,  partially  offset by a decrease  in  interest  income  received of
$35,000,  and a decline in  distributions  from Local  Limited  Partnerships  of
$2,000.

During the year ended March 31, 2000 and the three  months  ended March 31, 1999
accrued  payables,  which consist primarily of related party management fees due
to the General  Partner,  increased  by $130,000 and $2,000,  respectively.  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 future foreseeable  working
capital requirements of the Partnership.

The Partnership  expects its future cash flows,  together with its net available
assets at March 31, 2000, to be  sufficient  to meet all  currently  foreseeable
future cash requirements.

                                       14

<PAGE>
IMPACT OF YEAR 2000

WNC & Associates, Inc.

Status of Readiness

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

Non-IT Systems. The Partnership also relies on the non-IT systems of WNC. Non-IT
systems  include  machinery and  equipment  such as  telephones,  voice mail and
electronic postage equipment. The non-IT systems of WNC are year 2000 compliant.

Service  Providers.  WNC also  relies on the IT and  non-IT  systems  of service
providers. Service providers include utility companies,  financial institutions,
telecommunications carriers,  municipalities, and other outside vendors. WNC has
obtained verbal assurances from its material service providers (electrical power
provider,  financial institutions and telecommunications carriers) that their IT
and non-IT systems are year 2000  compliant.  To date,  WNC has not  encountered
significant year 2000 issues or business disruptions from its service providers.

Costs to Address Year 2000 Issues

The cost to address year 2000 issues for WNC has been less than $25,000.

Risk of Year 2000 Issues

Although WNC has  encountered no significant  year 2000 issues to date, the most
reasonable  and likely result from  non-year  2000  compliance of systems of the
service  providers  noted  above  would be the  disruption  of  normal  business
operations for WNC. This disruption could, in turn, lead to delays in performing
reporting and fiduciary responsibilities on behalf of the Partnership. The worst
case scenario would be the replacement of a service provider. These delays would
likely  be  temporary  and  would  likely  not  have a  material  effect  on the
Partnership or WNC.

Local Limited Partnerships

Status of Readiness

To date, WNC and the  Partnership  have  encountered  no  significant  year 2000
issues with respect to the Local Limited Partnerships.

Costs to Address Year 2000 Issues

There has been and will be no cost to the  Partnership  as a result of assessing
year 2000 issues for the Local  Limited  Partnerships.  Although no  significant
year 2000 issues have been  encountered to date, the cost to deal with potential
year 2000 issues of the Local Limited  Partnerships  cannot be estimated at this
time.

                                       15
<PAGE>

Risk of Year 2000 Issues

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

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk

NOT APPLICABLE

Item 8.  Financial Statements and Supplementary Data

                                       16
<PAGE>



Report of Independent Certified Public Accountants


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


We have audited the  accompanying  balance sheets of WNC Housing Tax Credit Fund
IV, L.P., Series 2 (a California Limited  Partnership) (the "Partnership") as of
March 31, 2000 and 1999,  and December 31, 1998,  and the related  statements of
operations,  partners'  equity (deficit) and cash flows for the year ended March
31, 2000,  the three months ended March 31, 1999 and the year ended December 31,
1998. These financial  statements are the  responsibility  of the  Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements  based  on  our  audits.  A  significant  portion  of  the  financial
statements of the limited  partnerships  in which the  Partnership  is a limited
partner were audited by other  auditors whose reports have been furnished to us.
As discussed in Note 3 to the financial statements, the Partnership accounts for
its investments in limited  partnerships using the equity method. The portion of
the Partnership's  investments in limited partnerships audited by other auditors
represented 81%, 75% and 72% of the total assets of the Partnership at March 31,
2000 and 1999 and December 31, 1998,  respectively.  Our opinion,  insofar as it
relates to the amounts  included  in the  financial  statements  for the limited
partnerships which were audited by others, is based solely on the reports of the
other auditors.

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

As  more  thoroughly  discussed  in  Note 2 to  the  financial  statements,  the
independent  auditors engaged to perform the audits of the financial  statements
as of and for the year ended December 31, 1999 for Broken Bow Apartments I, L.P.
("Broken Bow") and Sidney Apartments I, L.P. ("Sidney"),  were unable to express
an opinion on those financial  statements.  The Partnership has reflected equity
in the net losses of Broken  Bow and  Sidney  totaling  $156,823  ($(10.05)  per
limited partnership unit) for the year ended March 31, 2000. The Partnership has
also recorded an impairment  of its  investment in the two limited  partnerships
totaling  $766,559  ($(49.14) per limited  partnership  unit) for the year ended
March 31, 2000.

In our  opinion,  except for the effects of such  adjustments,  if any, as might
have been determined to be necessary had the  independent  auditors been able to
form an opinion on Broken Bow and Sidneys' financial  statements,  the financial
statements  referred to above  present  fairly,  in all material  respects,  the
financial  position  of WNC  Housing  Tax  Credit  Fund  V,  L.P.,  Series  3 (a
California Limited  Partnership) as of March 31, 2000 and 1999, and December 31,
1998,  and the results of its  operations  and its cash flows for the year ended
March 31,  2000,  the three  months  ended  March  31,  1999 and the year  ended
December 31, 1998, in conformity with generally accepted accounting principles.




                            /s/ BDO SEIDMAN, LLP
                                BDO SEIDMAN, LLP




Orange County, California
August 16, 2000

                                       17
<PAGE>



                          INDEPENDENT AUDITORS' REPORT



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


We have audited the statements of  operations,  partners'  equity  (deficit) and
cash flows of WNC  Housing  Tax Credit Fund IV,  L.P.,  Series 2 ( a  California
Limited  Partnership) (the  "Partnership") for the year ended December 31, 1997.
These  financial   statements  are  the   responsibility  of  the  Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audit. We did not audit the financial  statements of the
limited  partnerships in which WNC Housing Tax Credit Fund IV, L.P., Series 2 is
a limited partner.  These  investments,  as discussed in Note 2 to the financial
statements,  are accounted  for by the equity  method.  The  investment in these
limited  partnerships  represented  85% of the total  assets of WNC  Housing Tax
Credit Fund IV, L.P.,  Series 2 at December 31, 1997.  Substantially  all of the
financial  statements of the limited partnerships were audited by other auditors
whose reports have been furnished to us, and our opinion,  insofar as it relates
to the amounts included for these limited  partnerships,  is based solely on the
reports of the other auditors.

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

In our opinion,  based on our audits and the reports of the other auditors,  the
financial statements referred to above present fairly, in all material respects,
the  results of  operations  and cash flows of WNC  Housing  Tax Credit Fund IV,
L.P., Series 2 (a California Limited  Partnership),  for the year ended December
31, 1997, in conformity with generally accepted accounting principles.



                              /s/ CORBIN & WERTZ
                                  CORBIN & WERTZ

Irvine, California
April 23, 1998



                                       18


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

                                 BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                         March 31                 December 31
                                                               ------------------------------    --------------
                                                                   2000             1999             1998
                                                               --------------   -------------    --------------
  ASSETS
<S>                                                          <C>              <C>              <C>
  Cash and cash equivalents                                  $       180,133  $      552,348   $       738,364
  Investments in limited partnerships,
   net (Notes 2 and 3)                                             8,311,454      10,092,782        10,274,595
  Other assets                                                           998             998             2,534
                                                               --------------   -------------    --------------

                                                             $     8,492,585  $   10,646,128   $    11,015,493
                                                               ==============   =============    ==============

  LIABILITIES AND PARTNERS' EQUITY
   (DEFICIT)

  Liabilities:
   Payables to limited partnerships (Note 5)                 $             -  $      421,025   $       605,517
   Accrued expenses (Note 3)                                          86,965               -                 -
   Accrued fees and expenses due to General
    Partner and affiliates (Note 4)                                   72,598          29,722            28,066
                                                               --------------   -------------    --------------

       Total liabilities                                             159,563         450,747           633,583
                                                               --------------   -------------    --------------

  Commitments and contingencies (Note 7)

  Partners' equity (deficit):
   General partner                                                   (68,982)        (50,358)          (48,493)
   Limited partners (20,000 units authorized;
    15,600 units issued and outstanding)                           8,402,004      10,245,739        10,430,403
                                                               --------------   -------------    --------------

       Total partners' equity                                      8,333,022      10,195,381        10,381,910
                                                               --------------   -------------    --------------

                                                             $     8,492,585  $   10,646,128   $    11,015,493
                                                               ==============   =============    ==============


</TABLE>

                      See independent auditors' report and
                  accompanying notes to financial statements.
                                       19


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

                            STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
                                                                          For the
                                                           For the         Three
                                                            Year          Months
                                                            Ended          Ended            For the Years Ended
                                                           March 31       March 31               December 31
                                                        -------------   ------------    ----------------------------
                                                            2000           1999            1998            1997
                                                        -------------   ------------    ------------   -------------
<S>                                                   <C>             <C>             <C>            <C>
Interest income                                       $       14,374  $       6,850   $      47,017  $       74,570
Other income                                                   4,000              -               -               -
                                                        -------------   ------------    ------------   -------------

Total income                                                  18,374          6,850          47,017          74,570
                                                        -------------   ------------    ------------   -------------
Operating expenses:
 Amortization (Notes 3 and 4)                                 40,935         10,230          32,099          40,823
 Asset management fees (Note 4)                               42,900         10,725          42,900          42,900
 Other                                                        38,177          7,741          22,502          22,816
 Impairment on investments in limited
  partnerships (Note 2)                                      766,559              -               -               -
                                                        -------------   ------------    ------------   -------------

         Total operating expenses                            888,571         28,696          97,501         106,539
                                                        -------------   ------------    ------------   -------------

Income (loss) from operations                               (870,197)       (21,846)        (50,484)        (31,969)

Equity in losses of limited
 partnerships (Note 3)                                      (992,162)      (164,683)       (658,728)       (737,115)
                                                        -------------   ------------    ------------   -------------

Net loss                                              $   (1,862,359) $    (186,529)  $    (709,212) $     (769,084)
                                                        =============   ============    ============   =============
Net loss allocated to:
 General partner                                      $      (18,624) $      (1,865)  $      (7,092) $       (7,691)
                                                        =============   ============    ============   =============

 Limited partners                                     $   (1,843,735) $    (184,664)  $    (702,120) $     (761,393)
                                                        =============   ============    ============   =============

Net loss per limited partner unit                     $      (118.19) $      (11.84)  $      (45.01) $       (48.81)
                                                        =============   ============    ============   =============

Outstanding weighted limited partner units                    15,600         15,600          15,600          15,600
                                                        =============   ============    ============   =============
</TABLE>


                      See independent auditors' report and
                   accompanying notes to financial statements.
                                       20

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

                    STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

                       For The Year Ended March 31, 2000,
                  For The Three Months Ended March 31, 1999 and
                 For The Years Ended December 31, 1998 and 1997
<TABLE>
<CAPTION>
                                                                                 Limited
                                                           General Partner       Partners            Total
                                                          ----------------    ---------------    ---------------
<S>                                   <C>               <C>                <C>                <C>
Partners' equity (deficit) at January 1, 1997           $        (33,756)  $     11,889,346   $     11,855,590

Net loss                                                          (7,691)          (761,393)          (769,084)
                                                          ---------------     ---------------    ---------------

Partners' equity (deficit) at December 31, 1997                  (41,447)        11,127,953         11,086,506

Offering costs                                                        46              4,570              4,616

Net loss                                                          (7,092)          (702,120)          (709,212)
                                                          ---------------     ---------------    ---------------

Partners' equity (deficit) at December 31, 1998                  (48,493)        10,430,403         10,381,910

Net loss                                                          (1,865)          (184,664)          (186,529)
                                                          ---------------     ---------------    ---------------

Partners' equity (deficit) at March 31, 1999                     (50,358)        10,245,739         10,195,381

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

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

</TABLE>



                      See independent auditors' report and
                   accompanying notes to financial statements.
                                       21

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

                            STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                          For the
                                                           For the         Three
                                                            Year          Months
                                                            Ended          Ended            For the Years Ended
                                                           March 31       March 31               December 31
                                                       -------------   ------------    ----------------------------
                                                           2000           1999            1998            1997
                                                       -------------   ------------    ------------   -------------
<S>                                                 <C>            <C>             <C>            <C>
Cash flows from operating activities:
 Net loss                                           $  (1,862,359) $    (186,529)  $    (709,212) $     (769,084)
 Adjustments to reconcile net loss to net
 cash provided by operating activities:
  Amortization                                             40,935         10,230          32,099          40,823
  Impairment loss on investments in limited
    partnerships                                          766,559              -               -               -
  Equity in loss of limited
    partnerships                                          992,162        164,683         658,728         737,115
  Change in other assets                                        -          1,536          17,711           9,347
  Change in due from affiliates                                 -              -               -          34,564
  Change in accrued fees and expenses
   due to General Partner and affiliates                   42,876          1,656          26,929               -
                                                     -------------   ------------    ------------   -------------
Net cash provided by (used in)
 operating Activities                                     (19,827)        (8,424)         26,255          52,765
                                                     -------------   ------------    ------------   -------------
Cash flows from investing activities:
 Investments in limited
   partnerships, net                                     (251,149)      (184,492)     (1,037,700)       (674,929)
 Capitalized acquisition costs and
   fees                                                         -              -            (465)         (8,278)
 Distributions from limited
   partnerships                                            19,667          6,900           5,300           7,613
 Loans receivable                                               -              -         259,496        (259,496)
 Offering expenses                                              -              -           4,616               -
 Cash advances to limited partnerships                   (120,906)             -               -               -
                                                     -------------   ------------    ------------   -------------
Net cash used in investing
 activities                                              (352,388)      (177,592)       (768,753)       (935,090)
                                                     -------------   ------------    ------------   -------------
Cash flows from financing activities:
 Advances due to general partner
  and affiliates                                                -              -               -          (8,202)
                                                     -------------   ------------    ------------   -------------
Net cash used in financing
 activities                                                     -              -               -          (8,202)
                                                     -------------   ------------    ------------   -------------
Net decrease in cash and cash
 equivalents                                             (372,215)      (186,016)       (742,498)       (890,527)

Cash and cash equivalents,
 beginning of period                                      552,348        738,364       1,480,862       2,371,389
                                                     -------------   ------------    ------------   -------------
Cash and cash equivalents, end of
 period                                             $     180,133  $     552,348   $     738,364  $    1,480,862
                                                     =============   ============    ============   =============
</TABLE>
Continued
                                       22
<PAGE>


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

                      STATEMENTS OF CASH FLOWS - CONTINUED


<TABLE>
<CAPTION>

                                                        For the
                                         For the         Three
                                          Year           Months
                                          Ended          Ended            For the Years Ended
                                         March 31       March 31               December 31
                                       ------------    -----------     ------------------------------
                                          2000            1999            1998             1997
                                       ------------    -----------     -------------  ---------------
<S>                                  <C>             <C>            <C>             <C>
SUPPLEMENTAL DISCLOSURE
 OF CASH FLOW INFORMATION:
  Taxes paid                         $         800   $           -  $          800  $            800
                                       ============    ============   =============   ===============


















</TABLE>


                      See independent auditors' report and
                   accompanying notes to financial statements.
                                       23





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

                          NOTES TO FINANCIAL STATEMENTS

                       For the Year Ended March 31, 2000,
                  For The Three Months Ended March 31, 1999 and
                 For The Years Ended December 31, 1998 and 1997

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

WNC Housing Tax Credit Fund IV, L.P., Series 2 (the "Partnership") was formed on
September  27,  1993  under the laws of the state of  California  and  commenced
operations on July 18, 1994. The Partnership  was formed to invest  primarily in
other limited  partnerships  (the "Local  Limited  Partnerships")  which own and
operate multi-family housing complexes (the "Housing Complex") that are eligible
for low income housing  credits.  The local general partners (the "Local General
Partners")  of  each  Local  Limited   Partnership  retain   responsibility  for
maintaining, operating and managing the Housing Complex.

The  general  partner  is WNC  Tax  Credit  Partners,  IV,  L.P.  (the  "General
Partner"), a California limited partnership.  WNC & Associates,  Inc. ("WNC") is
the general partner of the General Partner.  Wilfred N. Cooper, Sr., through the
Cooper  Revocable  Trust,  owns 66.8% of the  outstanding  stock of WNC. John B.
Lester,  Jr.  was the  original  limited  partner of the  Partnership  and owns,
through the Lester Family Trust,  28.6% of the outstanding stock of WNC. Wilfred
N. Cooper, Jr., President of WNC, owns 2.1% of the outstanding stock of WNC.

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

The Partnership Agreement authorized the sale of 20,000 units at $1,000 per unit
("Units").  The  offering of Units  concluded  in July 1995 at which time 15,600
Units representing subscriptions,  net of discounts for volume purchases of more
than 100 units,  in the amount of  $15,241,000  had been  accepted.  The General
Partner has a 1% interest in operating  profits and losses,  taxable  income and
losses,  cash available for  distribution  from the Partnership and tax credits.
The limited  partners  will be  allocated  the  remaining  99% of these items in
proportion to their respective investments.

After the limited partners have received proceeds from sale or refinancing equal
to their capital contributions and their return on investment (as defined in the
Partnership  Agreement) and the General  Partner has received  proceeds equal to
its capital  contributions  and a subordinated  disposition fee (as described in
Note 4) from the remainder,  any additional sale or refinancing proceeds will be
distributed  90% to the limited  partners  (in  proportion  to their  respective
investments) and 10% to the General Partner.

Change in Reporting Year End

In 1999, the Partnership  elected to change its year end for financial reporting
purposes from December 31 to March 31. All  financial  information  reflected in
the financial statements and related footnotes has been adjusted for this change
in year end except for the combined condensed financial  information relating to
the Local Limited Partnerships included in Note 3.


                                       24


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                       For the Year Ended March 31, 2000,
                  For The Three Months Ended March 31, 1999 and
                 For The Years Ended December 31, 1998 and 1997

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued

Risks and Uncertainties

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

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

Method of Accounting For Investments in Limited Partnerships

The Partnership  accounts for its investments in limited  partnerships using the
equity method of  accounting,  whereby the  Partnership  adjusts its  investment
balance for its share of the Local Limited  Partnership's  results of operations
and for any distributions received. The accounting policies of the Local Limited
Partnership are consistent with those of the Partnership.  Costs incurred by the
Partnership  in  acquiring  the  investments  are  capitalized  as  part  of the
investment account and are being amortized over 30 years (see Note 3).

Losses from Local Limited Partnerships for the years ended December 31, 1998 and
1997 have been recorded by the Partnership based on reported results provided by
the Local Limited  Partnerships.  Losses from Local Limited Partnerships for the
three  months  ended March 31, 1999 have been  estimated  by  management  of the
Partnership.  Losses from limited partnerships for the year ended March 31, 2000
have been recorded by the Partnership  based on nine months of reported  results
provided  by the Local  Limited  Partnerships  and on three  months  of  results
estimated by management of the Partnership. Losses from the limited partnerships
allocated  to the  Partnership  will not be  recognized  to the extent  that the
investment balance would be adjusted below zero.

                                       25

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                       For the Year Ended March 31, 2000,
                  For The Three Months Ended March 31, 1999 and
                 For The Years Ended December 31, 1998 and 1997

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued

Offering Expenses

Offering  expenses consist of underwriting  commissions,  legal fees,  printing,
filing and  recordation  fees,  and other costs  incurred  with selling  limited
partnership  interests in the  Partnership.  The General Partner is obligated to
pay all  offering  and  organization  costs in  excess of 15%  (including  sales
commissions) of the total offering proceeds.  Offering expenses are reflected as
a reduction of  partners'  capital and amounted to $970,717 as of March 31, 1999
and December 31, 1998, and $975,333 as of December 31, 1997.

Use of Estimates

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

Cash and Cash Equivalents

The Partnership  considers  highly liquid  investments  with maturities of three
months or less when purchased to be cash  equivalents.  As of March 31, 2000 and
1999, and December 31, 1998, the Partnership had no cash equivalents.

Concentration of Credit Risk

At March 31,  2000,  the  Partnership  maintained  a cash  balance  at a certain
financial institution in excess of the maximum federally insured amounts.

Net Loss Per Limited Partner Unit

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

Reporting Comprehensive Income

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

Reclassifications

Certain  prior  year  balances  have been  reclassified  to  conform to the 2000
presentation.

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                       For the Year Ended March 31, 2000,
                  For The Three Months Ended March 31, 1999 and
                 For The Years Ended December 31, 1998 and 1997

NOTE 2 -  UNCERTAINTY  WITH  RESPECT TO  INVESTMENTS  IN BROKEN BOW AND  SIDNEY:
IMPAIRMENT OF INVESTMENTS

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

The independent  auditors engaged to perform an audit of Broken Bow and Sidneys'
financial statements as of and for the year ended December 31, 1999, were unable
to form an opinion on those financial statements.  This was due to the inability
to  obtain  from  the  former  local  general  partner  certain  general  ledger
information   for  a  period  of   approximately   three   months  and  reliable
confirmations  of advances  to/notes  receivable  from the former local  general
partner.  Further,  the  independent  auditors were unable to obtain  management
representation  letters from the former property management company, which is an
affiliate of the former local general partner.  As a result, the Partnership has
not included the financial  information of Broken Bow and Sidney in the combined
condensed financial statements presented in Note 3 to the financial  statements.
The  combined  condensed  financial  information  presented  in Note 3 for prior
periods has been restated to exclude the accounts of Broken Bow and Sidney.  The
Partnership  has  reflected  equity in the net  losses of Broken  Bow and Sidney
totaling  $156,823  ($(10.05) per limited  partnership  unit) for the year ended
March 31, 2000,  based on nine months of reported results provided by Broken Bow
and Sidney and on three months of results  estimated by WNC. Such  estimates may
be materially misstated due to the lack of corroborative financial information.

Broken  Bow  and  Sidney  continue  to  experience   negative  cash  flows  from
operations.  During the year ended  March 31,  2000,  the  Partnership  advanced
$120,906  in cash to Broken  Bow and Sidney for  operating  expenses,  including
legal fees relating to certain  litigation  involving these and other properties
as outlined in Note 8, as well as another $30,753 in cash since year end. WNC is
currently negotiating for a restructuring of the related bank loans, which would
increase  cash  flow  from  operations.   WNC  may  not  be  successful  in  the
restructuring of these loans. If the loans are not restructured, the Partnership
may be unable to support these properties.  Consequently, the Partnership may be
forced to sell all or a portion of its interests in these  properties.  Further,
the lender may attempt to foreclose on the Broken Bow and Sidney properties.

As  a  result  of  the  foregoing,  WNC  has  performed  an  evaluation  of  the
Partnership's remaining investment balances in Broken Bow and Sidney,  including
the  cash  advances  noted  above  and  other  anticipated  costs.  It has  been
determined that an impairment  adjustment is necessary and an impairment loss of
$766,559 has been  recognized at March 31, 2000.  This  impairment loss includes
$558,688 in remaining book value of the Partnership's  investments in Broken Bow
and Sidney;  the  $120,906  and $30,753  cash  advances,  a $37,670  accrual for
anticipated  legal costs, and $18,542 of estimated  accounting and other related
costs.

As a result of the aforementioned  operating  difficulties and the litigation as
discussed in Note 7, there is  uncertainty  as to whether the  Partnership  will
ultimately retain its interests in Broken Bow and Sidney. If the investments are
sold or otherwise not retained, the Partnership could be subject to recapture of
tax credits and certain prior tax deductions. There is further uncertainty as to
costs  that  the  Partnership  may  ultimately  incur  in  connection  with  its
investments in Broken Bow and Sidney. The Partnership's  financial statements do
not  include  any  adjustments  that  might  result  from the  outcome  of these
uncertainties.

NOTE 3 - INVESTMENTS IN LIMITED PARTNERSHIPS

As of the periods  presented,  the Partnership had acquired limited  partnership
interests  in  twenty-two  Local  Limited  Partnerships,  each of which owns one
Housing Complex  consisting of an aggregate of 892 apartment  units. As of March
31,  1999,  construction  or  rehabilitation  of all  but  one of the  apartment
complexes  had been  completed.  The  respective  general  partners of the Local
Limited   Partnerships  manage  the  day-to-day   operations  of  the  entities.
Significant Local Limited  Partnership  business decisions require approval from
the Partnership.  The Partnership,  as a limited partner,  is entitled to 96% to
99%, as specified in the partnership  agreements,  of the operating  profits and
losses, taxable income and losses and tax credits of the Limited Partnerships.

                                       27
<PAGE>
                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 2
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                       For the Year Ended March 31, 2000,
                  For The Three Months Ended March 31, 1999 and
                 For The Years Ended December 31, 1998 and 1997

NOTE 3 - INVESTMENTS IN LIMITED PARTNERSHIPS-continued

The  Partnership's  investments  in Local Limited  Partnerships  as shown in the
balance  sheets  at March  31,  2000 and 1999  are  approximately  $876,000  and
$2,170,000, respectively, greater than the Partnership's equity at the preceding
December  31 as shown in the  Local  Limited  Partnerships'  combined  financial
statements.  This difference is primarily due to unrecorded losses, as discussed
below, acquisition,  selection and other costs related to the acquisition of the
investments which have been capitalized in the Partnership's  investment account
and to capital  contributions  payable to the  limited  partnerships  which were
netted  against  partner  capital in the Local Limited  Partnership's  financial
statements.  The  Partnership's  investment is also lower than the Partnership's
equity as shown in the Local Limited Partnership's combined financial statements
due to the losses  recorded by the  Partnership for the three month period ended
March 31.  Lastly,  the  difference  is due to the  exclusion  of the  financial
statements  of Sidney  and  Broken  Bow from the  combined  condensed  financial
information presented below. See Note 2 for discussion.

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

Distributions  received by limited  partners are accounted for as a reduction of
the investment balance.  Distributions received after the investment has reached
zero are recognized as income. At March 31,2000 the investment account in one of
the Local  Limited  Partnerships  had  reached a zero  balance.  Consequently  a
portion of the Partnership's estimate of it's share of losses for the year ended
March 31, 2000 amounting to approximately  $9,000 has not been recognized by the
Partnership as of March 31, 2000.

Following  is a summary of the equity  method  activity  of the  investments  in
limited partnerships for the periods presented:
<TABLE>
<CAPTION>
                                                  For the Year     For the Three
                                                     Ended         Months Ended
                                                    March 31         March 31        For the Years Ended December 31
                                                 ---------------  ---------------    -------------------------------
                                                      2000             1999              1998              1997
                                                 ---------------  ---------------    -------------     -------------
<S>                                            <C>              <C>               <C>               <C>
Investments per balance sheet, beginning of
 year                                          $     10,092,782 $     10,274,595  $    9,738,583    $   10,096,100
Tax credit adjustment                                   (62,593)               -         (23,291)                -
Capital contributions to limited
 partnerships, net                                            -                -         827,482           194,036
Capital contributions to be paid                              -                -         427,483           225,720
Impairment loss on investments in limited
 partnerships                                          (766,559)               -               -                 -
Capital contributions payable to Sidney and
 Broken Bow offset to book value                       (107,283)               -               -                 -
Accrued expense (Note 2)                                 86,965                -               -                 -
Cash advances (Note 2)                                  120,906                -               -                 -
Capitalized acquisition fees and costs                        -                -             465             8,278
Distributions received                                  (19,667)          (6,900)         (5,300)           (7,613)
Equity in losses of limited partnerships               (992,162)        (164,683)       (658,728)         (737,115)
Amortization of paid acquisition fees and
 costs                                                  (40,935)         (10,230)        (32,099)          (40,823)
                                                   -------------   --------------   -------------     -------------

Investments per balance sheet, end of period   $      8,311,454 $     10,092,782  $   10,274,595    $    9,738,583
                                                   =============   ==============   =============     =============
</TABLE>
                                       28
<PAGE>
                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 2
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                       For the Year Ended March 31, 2000,
                  For The Three Months Ended March 31, 1999 and
                 For The Years Ended December 31, 1998 and 1997

NOTE 3 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued

The financial  information from the individual financial statements of the Local
Limited  Partnerships  includes rental and interest subsidies.  Rental subsidies
are included in total  revenues  and interest  subsidies  are  generally  netted
against interest expense.  Approximate combined condensed financial  information
from the individual financial statements of the Local Limited Partnerships as of
December  31 and for the years  then  ended is as  follows  (Combined  condensed
financial  information  for Broken Bow and Sidney  have been  excluded  from the
presentation below. See Note 2 for further discussion):

                        COMBINED CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                           1999               1998
                                                     ---------------     ---------------
ASSETS
<S>                                                <C>                 <C>
Buildings, net of accumulated amortization
 of $5,551,000 and $4,180,000
 for 1999 and 1998, respectively                   $     31,791,000    $     30,754,000
Land                                                      1,557,000           1,553,000
Construction in progress                                          -           1,895,000
Due from affiliates                                           1,000                   -
Other assets                                              2,194,000           2,074,000
                                                     ---------------     ---------------

                                                   $     35,543,000    $     36,276,000
                                                     ===============     ===============
LIABILITIES

Construction and mortgage loans payable            $     26,091,000    $     26,145,000
Other liabilities (including due to
 related parties of $437,000 and
 $465,000 for 1999 and 1998, respectively)                1,003,000           1,111,000
                                                     ---------------     ---------------

                                                         27,094,000          27,256,000
                                                     ---------------     ---------------
PARTNERS' CAPITAL

WNC Housing Tax Credit Fund IV, L.P., Series 2            7,435,000           7,923,000
Other partners                                            1,014,000           1,097,000
                                                     ---------------     ---------------

                                                          8,449,000           9,020,000
                                                     ---------------     ---------------

                                                   $     35,543,000    $     36,276,000
                                                     ===============     ===============
</TABLE>
                                       29
<PAGE>
                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 2
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                       For the Year Ended March 31, 2000,
                  For The Three Months Ended March 31, 1999 and
                 For The Years Ended December 31, 1998 and 1997

NOTE 3 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued

                   COMBINED CONDENSED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
                                                                 1999               1998                1997
                                                            ---------------    ---------------     ---------------
<S>                                                       <C>                <C>                <C>
Revenues                                                  $      3,768,000   $      3,750,000   $       3,420,000
                                                            ---------------    ---------------     ---------------
Expenses:
 Operating expenses                                              2,165,000          1,965,000           1,828,000
 Interest expense                                                1,154,000          1,131,000           1,181,000
 Depreciation and amortization                                   1,238,000          1,162,000           1,087,000
                                                            ---------------    ---------------     ---------------

  Total expenses                                                 4,557,000          4,258,000           4,096,000
                                                            ---------------    ---------------     ---------------

Net loss                                                  $       (789,000)  $       (508,000)  $        (676,000)
                                                            ===============    ===============     ===============
Net loss allocable to the Partnership, before equity
 in losses of Broken Bow and Sidney                       $       (778,000)  $       (501,000)  $        (661,000)
                                                            ===============    ===============     ===============
Net loss recorded by the Partnership,  before equity in
 losses of Broken Bow and Sidney                          $       (835,000)  $       (501,000)  $        (661,000)

Net loss of Broken Bow allocable to the Partnership               (109,000)           (42,000)             (5,000)

Net loss of Sidney allocable to the Partnership                    (48,000)          (116,000)            (71,000)
                                                            ---------------    ---------------     ---------------

Net loss recorded by the Partnership                      $       (992,000)  $       (659,000)  $        (737,000)
                                                            ===============    ===============     ===============
</TABLE>
Certain Local Limited  Partnerships have incurred  significant  operating losses
and  have  working  capital  deficiencies.  In the  event  these  Local  Limited
Partnerships continue to incur significant operating losses,  additional capital
contributions  by the  Partnership  and/or  the  Local  General  Partner  may be
required  to sustain  the  operations  of such Local  Limited  Partnerships.  If
additional  capital  contributions  are not made  when  they are  required,  the
Partnership's  investment in certain of such Local Limited Partnerships could be
impaired and the loss and recapture of the related tax credits could occur.

NOTE 4 - RELATED PARTY TRANSACTIONS

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

         Acquisition  fees of up to 8% of the  gross  proceeds  from the sale of
         Units as  compensation  for services  rendered in  connection  with the
         acquisition  of Local Limited  Partnerships.  At the end of all periods
         presented,  the Partnership  incurred  acquisition  fees of $1,058,950.
         Accumulated  amortization  of these  capitalized  costs  was  $166,925,
         $131,629  and  $124,017 as of March 31, 2000 and 1999 and  December 31,
         1998, respectively.

         Reimbursement  of costs  incurred by the General  Partner in connection
         with   the   acquisition   of   Local   Limited   Partnerships.   These
         reimbursements  have not  exceeded  1.2% of the gross  proceeds.  As of
         March 31, 2000 and 1999 and December 31, 1998, the Partnership incurred
         acquisition costs of $169,103,  for all periods  presented,  which have
         been  included  in  investments  in limited  partnerships.  Accumulated
         amortization was $25,117,  $19,478 and $16,859 as of March 31, 2000 and
         1999 and December 31, 1998, respectively.

                                       30
<PAGE>
                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 2
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                       For the Year Ended March 31, 2000,
                  For The Three Months Ended March 31, 1999 and
                 For The Years Ended December 31, 1998 and 1997

NOTE 4 - RELATED PARTY TRANSACTIONS, continued

         An  annual  asset  management  fee equal to the  greater  amount of (i)
         $2,000 for each apartment complex, or (ii) 0.275% of gross proceeds. In
         either case,  the fee will be decreased or increased  annually based on
         changes to the  Consumer  Price  Index.  However,  in no event will the
         maximum amount exceed 0.2% of the invested  assets of the Local Limited
         Partnerships,  including  the  Partnership's  allocable  share  of  the
         mortgages.  Management fees of $42,900 and $10,725 were incurred during
         the year ended  March 31,  2000 and the three  months  ended  March 31,
         1999, respectively, and $42,900 and $42,900 were incurred for the years
         ended  December  31, 1998 and 1997,  respectively,  of which $3,750 and
         $5,950  were paid  during the year ended  March 31,  2000 and the three
         months  ended March 31, 1999 and $4,616 and $6,000 were paid during the
         years ended December 31, 1998 and 1997, respectively.

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

The accrued fees and expenses due to General  Partner and affiliates  consist of
the following:
<TABLE>
<CAPTION>
                                                                 March 31               December 31
                                                        ----------------------------   -------------
                                                            2000            1999            1998
                                                        ---------       ------------   -------------
<S>                                                   <C>             <C>            <C>
Reimbursement for expenses paid by the General
 Partner or an affiliate                              $      6,689    $       2,963  $        6,082

Asset management fee payable                                65,909           26,759          21,984
                                                        -----------     ------------   -------------

Total                                                 $     72,598    $      29,722  $       28,066
                                                        ===========     ============   =============
</TABLE>
The General  Partner does not  anticipate  that these  accrued fees will be paid
until such time as capital reserves are in excess of future foreseeable  working
capital requirements of the Partnership.

NOTE 5 - PAYABLES TO LIMITED PARTNERSHIPS

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

NOTE 6 - INCOME TAXES

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

                                       31

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                       For the Year Ended March 31, 2000,
                  For The Three Months Ended March 31, 1999 and
                 For The Years Ended December 31, 1998 and 1997

NOTE 7 - COMMITMENTS AND CONTINGENCIES

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

The six Local Limited Partnerships (hereinafter referred to as "Defendants") are
now defendants in a separate lawsuit.  The lawsuit has been filed by eight other
partnerships   in  which  the  local  general   partner  of  the  Local  Limited
Partnerships is or was involved (the  "Plaintiffs").  The Plaintiffs allege that
the local general  partner  accepted  funds from the  Plaintiffs  and improperly
loaned these funds to the  Defendants.  Discovery in this lawsuit is ongoing and
WNC will continue to pursue an aggressive defense on behalf of the Defendants.


                                       32


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

NOT APPLICABLE

PART III.

Item 10.  Directors and Executive Officers of the Registrant

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

Directors and Executive Officers of WNC & Associates, Inc

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

Wilfred N.  Cooper,  Sr.,  age 69, is the  founder,  Chairman,  Chief  Executive
Officer,  and a Director of WNC &  Associates,  Inc.,  a Director of WNC Capital
Corporation,  and a general partner in some of the programs previously sponsored
by the  Sponsor.  Mr.  Cooper has been  involved in real estate  investment  and
acquisition  activities  since 1968.  Previously,  during 1970 and 1971,  he was
founder and principal of Creative Equity Development Corporation,  a predecessor
of WNC & Associates,  Inc., and of Creative  Equity  Corporation,  a real estate
investment firm. For 12 years prior to that, Mr. Cooper was employed by Rockwell
International  Corporation,  last  serving as its  manager of housing  and urban
developments where he had  responsibility  for factory-built  housing evaluation
and project  management  in urban  planning  and  development.  Mr.  Cooper is a
Director of the  National  Association  of Home  Builders  (NAHB) and a National
Trustee  for NAHB's  Political  Action  Committee,  a Director  of the  National
Housing  Conference  (NHC)  and a member  of  NHC's  Executive  Committee  and a
Director of the National Multi-Housing Council (NMHC). Mr. Cooper graduated from
Pomona College in 1956 with a Bachelor of Arts degree.

John B.  Lester,  Jr., age 66, is  Vice-Chairman,  a Director,  Secretary  and a
member of the Acquisition Committee of WNC & Associates, Inc., and a Director of
WNC Capital  Corporation.  Mr. Lester has 27 years of experience in  engineering
and construction and has been involved in real estate investment and acquisition
activities since 1986 when he joined the Sponsor. Previously, he was Chairman of
the Board and Vice President or President of E & L Associates,  Inc., a provider
of engineering and construction  services to the oil refinery and  petrochemical
industries,  which  he  co-founded  in  1973.  Mr.  Lester  graduated  from  the
University of Southern  California in 1956 with a Bachelor of Science  degree in
Mechanical Engineering.

Wilfred N. Cooper,  Jr., age 37, is Executive Vice  President,  Chief  Operating
Officer,  a  Director  and a  member  of  the  Acquisition  Committee  of  WNC &
Associates,  Inc. He is  President  of, and a  registered  principal  with,  WNC
Capital  Corporation,  a  member  firm of the  NASD,  and is a  Director  of WNC
Management,  Inc. He has been involved in investment and acquisition  activities
with respect to real estate since he joined the Sponsor in 1988.  Prior to this,
he  served  as  Government   Affairs  Assistant  with  Honda  North  America  in
Washington,  D.C. Mr. Cooper is a member of the Advisory  Board for LIHC Monthly
Report, a Director of NMHC and an Alternate  Director of NAHB. He graduated from
The American University in 1985 with a Bachelor of Arts degree.

David N.  Shafer,  age 48, is  Executive  Vice  President,  a Director,  General
Counsel,  and a member of the Acquisition  Committee of WNC & Associates,  Inc.,
and a  Director  and  Secretary  of WNC  Management,  Inc.  Mr.  Shafer has been
involved in real estate investment and acquisition  activities since 1984. Prior
to joining the Sponsor in 1990, he was  practicing  law with a specialty in real
estate and taxation.  Mr.  Shafer is a Director and President of the  California
Council of Affordable  Housing and a member of the State Bar of California.  Mr.
Shafer graduated from the University of California at Santa Barbara in 1978 with
a Bachelor of Arts  degree,  from the New  England  School of Law in 1983 with a
Juris  Doctor  degree (cum laude) and from the  University  of San Diego in 1986
with a Master of Law degree in Taxation.

                                       33

<PAGE>
Michael L. Dickenson, age 43, is Vice President and Chief Financial Officer, and
a member of the  Acquisition  Committee  of WNC &  Associates,  Inc.,  and Chief
Financial Officer of WNC Management,  Inc. He has been involved with acquisition
and  investment  activities  with  respect to real estate  since 1985.  Prior to
joining the Sponsor in March 1999, he was the Director of Financial  Services at
TrizecHahn  Centers Inc., a developer  and operator of  commercial  real estate,
from 1995 to 1999,  a Senior  Manager  with E&Y  Kenneth  Leventhal  Real Estate
Group, Ernst & Young, LLP, from 1988 to 1995, and Vice President of Finance with
Great Southwest  Companies,  a commercial and residential real estate developer,
from  1985 to 1988.  Mr.  Dickenson  is a  member  of the  Financial  Accounting
Standards  Committee for the National  Association of Real Estate  Companies and
the  American  Institute  of  Certified  Public  Accountants,  and a Director of
HomeAid  Southern  California,  a charitable  organization  affiliated  with the
building  industry.  He  graduated  from  Texas Tech  University  in 1978 with a
Bachelor of Business  Administration  -  Accounting  degree,  and is a Certified
Public Accountant in California and Texas.

Thomas J. Riha, age 45, is Vice President - Asset Management and a member of the
Acquisition  Committee  of WNC &  Associates,  Inc.  and a  Director  and  Chief
Executive  Officer  of WNC  Management,  Inc.  Mr.  Riha  has been  involved  in
acquisition  and investment  activities  with respect to real estate since 1979.
Prior to joining the  Sponsor in 1994,  Mr.  Riha was  employed by Trust  Realty
Advisor, a real estate acquisition and management company,  last serving as Vice
President - Operations. Mr. Riha graduated from the California State University,
Fullerton  in 1977 with a  Bachelor  of Arts  degree  (cum  laude)  in  Business
Administration  with a  concentration  in Accounting  and is a Certified  Public
Accountant  and  a  member  of  the  American   Institute  of  Certified  Public
Accountants.

Sy P. Garban,  age 54, is Vice  President - National  Sales of WNC & Associates,
Inc.  and has been  employed by the  Sponsor  since  1989.  Mr.  Garban has been
involved in real estate  investment  activities since 1978. Prior to joining the
Sponsor he served as  Executive  Vice  President  of MRW,  Inc.,  a real  estate
development  and management  firm.  Mr. Garban is a member of the  International
Association of Financial  Planners.  He graduated from Michigan State University
in 1967 with a Bachelor of Science degree in Business Administration.

N. Paul Buckland,  age 37, is Vice President - Acquisitions  and a member of the
Acquisition  Committee of WNC &  Associates,  Inc. He has been  involved in real
estate  acquisitions and investments since 1986 and has been employed with WNC &
Associates, Inc. since 1994. Prior to that, he served on the development team of
the Bixby Ranch that  constructed  apartment  units and Class A office  space in
California and neighboring  states,  and as a land acquisition  coordinator with
Lincoln  Property   Company  where  he  identified  and  analyzed   multi-family
developments. Mr. Buckland graduated from California State University, Fullerton
in 1992 with a Bachelor of Science degree in Business Finance.

David Turek, age 45, is Vice President - Originations of WNC & Associates,  Inc.
He has been involved with real estate  investment and finance  activities  since
1976 and has been employed by WNC & Associates,  Inc.  since 1996.  From 1995 to
1996,  Mr. Turek served as a consultant  for a national Tax Credit sponsor where
he was responsible for on-site feasibility studies and due diligence analyses of
Tax Credit properties.  From 1990 to 1995, he was involved in the development of
conventional  and tax credit  multi-family  housing.  He is a Director  with the
Texas Council for Affordable Rural Housing and graduated from Southern Methodist
University in 1976 with a Bachelor of Business Administration degree.

Kay L. Cooper,  age 63, is a Director of WNC & Associates,  Inc. Mrs. Cooper was
the founder and sole  proprietor  of Agate 108, a  manufacturer  and retailer of
home  accessory  products,  from 1975 until 1998.  She is the wife of Wilfred N.
Cooper,  Sr.,  the mother of Wilfred  N.  Cooper,  Jr. and the sister of John B.
Lester,  Jr. Ms. Cooper graduated from the University of Southern  California in
1958 with a Bachelor of Science degree.

                                       34

<PAGE>
Item 11.  Executive Compensation

The Partnership has no officers,  employees,  or directors.  However,  under the
terms of the  Partnership  Agreement the Partnership is obligated to the General
Partner or Associates for the following fees:

 (a)  Annual Asset Management Fee. An annual asset management fee of the greater
      of (i) $2,000 per  multi-family  housing  complex or (ii)  0.275% of Gross
      Proceeds.  The base fee amount will be adjusted  annually based on changes
      in the  Consumer  Price  Index,  however in no event will the annual asset
      management fee exceed 0.2% of Invested Assets. "Invested Assets" means the
      sum of the Partnership's  investment in Local Limited Partnerships and the
      Partnership's allocable share of the amount of indebtedness related to the
      Housing  Complexes.  Fees of $43,000,  $11,000 and $43,000  were  incurred
      during the year ended March 31, 2000 and the three  months ended March 31,
      1999 and the year ended December 31, 1998,  respectively.  The Partnership
      paid the General  Partner or its affiliates  $4,000,  $6,000 and $5,000 of
      those fees during the year ended March 31,  2000,  the three  months ended
      March 31, 1999 and the year ended December 31, 1998, respectively.

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

(c)   Operating Expense.  The Partnership  reimbursed the General Partner or its
      affiliates for operating  expenses of approximately  $31,000,  $11,000 and
      $6,000 during the year ended March 31, 2000,  the three months ended March
      31, 1999 and the year ended December 31, 1998, respectively.

(d)   Interest  in  Partnership.   The  General   Partners  receive  1%  of  the
      Partnership's  allocated Low Income Housing  Credits,  which  approximated
      $20,000 and $20,000 for the General  Partner for the years ended March 31,
      2000 and  December  31,  1998.  The  General  Partner is also  entitled to
      receive 1% of cash  distributions.  There were no distributions of cash to
      the General Partner during the year ended March 31, 2000, the three months
      ended March 31, 1999 or the year ended December 31, 1998.

Item 12.  Security Ownership of Certain Beneficial Owners and Management

         Security Ownership of Certain Beneficial Owners

 (a)     Security Ownership of Certain Beneficial Owners

         The following is the only limited  partner known to the General Partner
to own beneficially in excess of 5% of the outstanding Units.
<TABLE>
<CAPTION>
                                            Name and Address of               Amount of Units
                 Title of Class              Beneficial Owner                    Controlled       Percent of Class
           ----------------------------- ---------------------------------- ------------------- -------------------
<S>                                                                            <C>                    <C>
           Units of Limited              Sempra Energy Financial               4,000 Units            25.6%
           Partnership Interests         P.O. Box 126943
                                         San Diego, CA  92113-6943
</TABLE>
(b)      Security Ownership of Management

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

                                       35
<PAGE>
(c)      Changes in Control

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

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

Item 13.  Certain Relationships and Related Transactions

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


                                       36
<PAGE>
PART IV.

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

Financial Statements

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

         Report of Independent Certified Public Accountants
         Independent Auditors' Report
         Balance Sheets, March 31, 2000 and 1999 and December 31, 1998
         Statements of Operations  for the year and three months ended March 31,
          2000 and 1999  and for the  years  ended  December  31,  1998 and 1997
         Statements  of Partners'  Equity  (Deficit)  for the three months ended
          March 31, 2000 and 1999 and for the years ended  December 31, 1998 and
          1997
         Statements of Cash Flows for the year and three months ended  March 31,
          2000 and 1999 and for the years ended December 31, 1998 and 1997
         Notes to Financial Statements

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

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

(b)      Reports on Form 8-K

1.       A Form 8-K dated May 13, 1999 was filed on May 14, 1999  reporting  the
         dismissal of the Partnership's former auditors and  the  engagement  of
         new auditors. No financial statements were included.

(c)      Exhibits

3.1      Articles  of   incorporation   and  by-laws:   The  registrant  is  not
         incorporated. The Partnership Agreement is included as Exhibit B to the
         Prospectus  which is included in  Post-Effective  No 11 to Registration
         Statement  on Form  S-11  dated  May 24,  1995  incorporated  herein by
         reference as Exhibit 3.

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

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

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

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

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

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

                                       37
<PAGE>
10.7     Amended and  Restated  Agreement  of Limited  Partnership  of  Comanche
         Retirement  Village,  Ltd.  filed as  exhibit  10.1 to Form 8-K   dated
         August 31, 1994 is hereby  incorporated herein by reference as  exhibit
         10.7.

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

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

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

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

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

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

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

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

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

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

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

10.19    Certified financial statements of Pioneer Street  Associates,  a  Cali-
         fornia Limited Partnership as of and for  the  year  ended December 31,
         1999.

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

                                       38
<PAGE>


              Report of Independent Certified Public Accountants on
                          Financial Statement Schedules





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


The audits  referred to in our report  dated  August 16,  2000,  relating to the
2000,  1999 and 1998  financial  statements  of WNC  Housing Tax Credit Fund IV,
L.P.,  Series 2 (the  "Partnership"),  which is contained in Item 8 of this Form
10-K, included the audit of the accompanying financial statement schedules.  The
financial  statement  schedules  are  the  responsibility  of the  Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statement  schedules  based  upon  our  audits.  The  opinion  to the  financial
statements contains an audit scope limitation paragraph describing the inability
of the auditors to express an opinion on the  financial  statements of a limited
partnership.

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



                                      /s/ BDO SEIDMAN, LLP
                                          BDO SEIDMAN, LLP

Orange County, California
August 16, 2000













                                       39

<PAGE>

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

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

Broken Bow Apartments I,      Broken Bow,
Limited Partnership           Nebraska               608,000      608,000               *             *             *              *

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

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

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

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

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

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

Hereford Seniors              Hereford,
Community, Ltd.               Texas                  167,000      167,000         802,000     1,005,000       117,000        888,000

</TABLE>

* Results of Broken Bow  Apartments  I, L.P. and Sidney  Apartments I, L.P. have
not been  audited  and thus  have  been  excluded.  See Note 2 to the  financial
statements and report of certified public accountants.

                                       40
<PAGE>
WNC Housing Tax Credit Fund IV, L.P., Series 2
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2000
<TABLE>
<CAPTION>

                                          ----------------------------------  ------------------------------------------------------
                                               As of March 31, 2000                           As of December 31, 1999
                                          ----------------------------------  ------------------------------------------------------
                                          Partnership's Total   Amount of     Encumbrances of  Property
                                          Investment in Local   Investment    Local Limited    and        Accumulated      Net Book
Partnership Name              Location    Limited Partnerships  Paid to Date  Partnerships     Equipment  Depreciation     Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                           <C>                <C>           <C>            <C>           <C>          <C>             <C>
Hickory Lane                  Newton, Texas          174,000      174,000         596,000       924,000       128,000        796,000
Associates, Ltd

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

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

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

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

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


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

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

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

Sidney Apartments I,          Sidney, Nebraska       530,000        530,000             *             *             *              *
Limited Partnership

Southcove Associates          Orange Cove,
                              Califonia            2,000,000      2,000,000     1,532,000     3,445,000       626,000      2,819,000

Walnut Turn Associates,       Buna, Texas            188,000        188,000       690,000     1,015,000       143,000        872,000
Ltd.                                              ----------     ----------    ----------    ----------     ---------     ----------
                                                 $12,033,000    $12,033,000   $26,091,000   $38,777,000    $5,551,000    $33,226,000
                                                  ==========     ==========    ==========    ==========     =========     ==========
</TABLE>
                                       41
<PAGE>

WNC Housing Tax Credit Fund IV, L.P., Series 2
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2000
<TABLE>
<CAPTION>
                                  -----------------------------------------------------------------------------------
                                                         For the year ended December 31, 1999
                                  -----------------------------------------------------------------------------------
                                                                                   Year                    Estimated
                                                                                Investment                Useful Life
Partnership Name                        Rental Income         Net loss           Acquired     Status        (Years)
---------------------------------------------------------------------------------------------------------------------
<S>                                     <C>              <C>                        <C>                     <C>
Apartment Housing of East
Brewton, Ltd.                           $      91,000    $      (78,000)            1998    Completed       40 Years

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

Broken Bow Apartments I, Limited
Partnership                                         *                 *             1996    Completed       40 Years

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

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

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

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

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

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

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

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

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

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

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

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

Mountainview Apartments Limited
Partnership                                    93,000           (13,000)            1994    Completed       40 Years
</TABLE>

                                       42
<PAGE>
WNC Housing Tax Credit Fund IV, L.P., Series 2
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2000
<TABLE>
<CAPTION>
                                  -----------------------------------------------------------------------------------
                                                         For the year ended December 31, 1999
                                  -----------------------------------------------------------------------------------
                                                                                   Year                    Estimated
                                                                                Investment                Useful Life
Partnership Name                        Rental Income         Net loss           Acquired     Status        (Years)
---------------------------------------------------------------------------------------------------------------------
<S>                                     <C>              <C>                        <C>                     <C>
Palestine Seniors Community, Ltd.             142,000             5,000             1994    Completed       40 Years

Pecan Grove Limited Partnership               120,000           (42,000)            1994    Completed     27.5 Years

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

Sidney Apartments I, Limited
Partnership                                         *                 *             1996    Completed       40 Years

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

Walnut Turn Associates, Ltd.                   90,000           (29,000)            1995    Completed     27.5 Years
                                            ----------      ------------

                                        $   3,632,000    $     (789,000)
                                            ==========      ============


</TABLE>



                                       43

<PAGE>
WNC Housing Tax Credit Fund IV, L.P., Series 2
Schedule III
Real Estate Owned by Local Limited Partnerships
December 31, 1999
<TABLE>
<CAPTION>

                                           --------------------------------  -------------------------------------------------------
                                                As of March 31, 1999                         As of December 31, 1998
                                           --------------------------------  -------------------------------------------------------
                                          Partnership's Total   Amount of     Encumbrances of  Property
                                          Investment in Local   Investment    Local Limited    and         Accumulated     Net Book
Partnership Name              Location    Limited Partnerships  Paid to Date  Partnerships     Equipment   Depreciation    Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                           <C>                <C>           <C>            <C>           <C>          <C>             <C>
Apartment Housing of          East Brewton,
East Brewton, Ltd.            Alabama            $ 1,255,000   $  941,000     $ 1,011,000   $ 1,961,000   $         -    $ 1,961,000

Autumn Trace Associates,      Silsbee, Texas         412,000      412,000       1,269,000     2,059,000       394,000      1,665,000
Ltd.

Broken Bow Apartments I,      Broken Bow,
Limited Partnership           Nebraska               608,000      546,000         750,000     1,383,000        49,000      1,334,000

Candleridge Apartments        Waukee, Iowa           125,000      125,000         685,000       873,000       112,000        761,000
of Waukee L.P. II

Chadwick Limited              Edan, North
Partnership                   Carolina               378,000      378,000       1,571,000     2,011,000       207,000      1,804,000

Comanche Retirement           Comanche, Texas        136,000      136,000         594,000       748,000        97,000        651,000
Village, Ltd.

Crossings II Limited          Portage,
Dividend Housing              Michigan               432,000      432,000       6,074,000     6,952,000       273,000      6,679,000
Association Limited
Partnership

EW, a Wisconsin Limited       Evansville,
Partnership                   Wisconson              164,000      164,000         628,000       869,000       156,000        713,000

Garland Street Limited        Malvarn,
Partnership                   Arkansas               164,000      164,000         699,000       918,000       164,000        754,000

Hereford Seniors              Hereford,
Community, Ltd.               Texas                  167,000      167,000         804,000     1,006,000        94,000        912,000

Hickory Lane                  Newton, Texas          174,000      174,000         597,000       924,000        97,000        827,000
Associates, Ltd


</TABLE>
                                       44
<PAGE>

WNC Housing Tax Credit Fund IV, L.P., Series 2
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 1999
<TABLE>
<CAPTION>

                                          ----------------------------------  ------------------------------------------------------
                                               As of March 31, 1999                           As of December 31, 1998
                                          ----------------------------------  ------------------------------------------------------
                                          Partnership's Total   Amount of     Encumbrances of  Property
                                          Investment in Local   Investment    Local Limited    and        Accumulated      Net Book
Partnership Name              Location    Limited Partnerships  Paid to Date  Partnerships     Equipment  Depreciation     Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                           <C>                <C>           <C>            <C>           <C>          <C>             <C>

Honeysuckle Court             Vidor, Texas       $   339,000   $    339,000   $ 1,168,000   $ 1,780,000  $    195,000    $ 1,585,000
Associates, Ltd.

Klimpel Manor, Ltd            Fullerton,
                              California           1,774,000      1,774,000     1,984,000     3,576,000       437,000      3,139,000

Lamesa Seniors                Lamesa, Texas          143,000        143,000       675,000       818,000       114,000        704,000
Community, Ltd.

Laredo Heights                Navasota, Texas        225,000        225,000     1,001,000     1,349,000        98,000      1,251,000
Apartments Ltd.

Mountainview Apartments       North Wilkesboro,
Limited Partnership           North Carolina         195,000        195,000     1,002,000     1,211,000       140,000      1,071,000


Palestine Seniors             Palestine, Texas       225,000        225,000     1,132,000     1,384,000       164,000      1,220,000
Community, Ltd.

Pecan Grove Limited           Forrest City,
Partnership                   Arkansas               240,000        240,000     1,118,000     1,397,000       250,000      1,147,000

Pioneer Street                Bakersfield,
Associates                    California           2,222,000      2,222,000     1,903,000     4,086,000       581,000      3,505,000

Sidney Apartments I,          Sidney, Nebraska       530,000        484,000       444,000     1,419,000       100,000      1,319,000
Limited Partnership

Southcove Associates          Orange Cove,
                              Califonia            2,000,000      2,000,000     1,538,000     3,445,000       500,000      2,945,000

Walnut Turn Associates,       Buna, Texas            188,000        188,000       692,000     1,015,000       108,000        907,000
Ltd.                                              ----------     ----------    ----------    ----------     ---------     ----------
                                                 $12,096,000    $11,674,000   $27,339,000   $41,184,000    $4,330,000    $36,854,000
                                                  ==========     ==========    ==========    ==========     =========     ==========
</TABLE>

                                       45
<PAGE>
WNC Housing Tax Credit Fund IV, L.P., Series 2
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 1999
<TABLE>
<CAPTION>
                                  -----------------------------------------------------------------------------------
                                                         For the year ended December 31, 1998
                                  -----------------------------------------------------------------------------------
                                                                              Year                      Estimated
                                                                           Investment                  Useful Life
        Partnership Name             Rental Income         Net loss         Acquired        Status       (Years)
---------------------------------------------------------------------------------------------------------------------
<S>                                      <C>                <C>                     <C>                   <C>
Apartment Housing of East                                                                                 Not
Brewton, Ltd.                            $          -       $         -             1998    Est. 1999     Determined

Autumn Trace Associates, Ltd.                 206,000           (43,000)            1994    Completed     27.5 Years

Broken Bow Apartments I, Limited
Partnership                                    39,000          (117,000)            1996    Completed       40 Years

Candleridge Apartments of Waukee
L.P. II                                       116,000            (8,000)            1995    Completed     27.5 Years

Chadwick Limited Partnership                  188,000           (18,000)            1994    Completed       50 Years

Comanche Retirement Village, Ltd.              63,000           (21,000)            1994    Completed       30 Years

Crossings II Limited Dividend
Housing Association Limited
Partnership                                   692,000           (19,000)            1997    Completed       40 Years

EW, a Wisconsin Limited
Partnership                                   105,000           (20,000)            1994    Completed     27.5 Years

Garland Street Limited
Partnership                                    66,000           (26,000)            1994    Completed     27.5 Years

Hereford Seniors Community, Ltd.               89,000            (7,000)            1995    Completed       40 Years

Hickory Lane Associates, Ltd                   81,000           (13,000)            1995    Completed     27.5 Years

Honeysuckle Court Associates,
Ltd.                                          191,000           (18,000)            1995    Completed     27.5 Years

Klimpel Manor, Ltd                            344,000           (85,000)            1994    Completed       40 Years

Lamesa Seniors Community, Ltd.                 84,000            (8,000)            1994    Completed       40 Years

Laredo Heights Apartments Ltd.                166,000            (9,000)            1996    Completed       45 Years

Mountainview Apartments Limited
Partnership                                    90,000           (11,000)            1994    Completed       40 Years

</TABLE>

                                       46
<PAGE>
WNC Housing Tax Credit Fund IV, L.P., Series 2
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 1999
<TABLE>
<CAPTION>
                                  -----------------------------------------------------------------------------------
                                                         For the year ended December 31, 1998
                                  -----------------------------------------------------------------------------------
                                                                              Year                      Estimated
                                                                           Investment                  Useful Life
        Partnership Name             Rental Income         Net loss         Acquired        Status       (Years)
---------------------------------------------------------------------------------------------------------------------
<S>                                      <C>                <C>                     <C>                   <C>
Palestine Seniors Community, Ltd.             135,000            (1,000)            1994    Completed       40 Years

Pecan Grove Limited Partnership               114,000           (46,000)            1994    Completed     27.5 Years

Pioneer Street Associates                     507,000           (37,000)            1995    Completed     27.5 Years

Sidney Apartments I, Limited
Partnership                                    77,000           (42,000)            1996    Completed       40 Years

Southcove Associates                          218,000          (102,000)            1994    Completed     27.5 Years

Walnut Turn Associates, Ltd.                  129,000            (17,000)           1995    Completed     27.5 Years
                                          ------------        -----------
                                         $  3,700,000       $   (668,000)
                                          ============        ===========

</TABLE>
                                       47


<PAGE>
WNC Housing Tax Credit Fund IV, L.P., Series 2
Schedule III
Real Estate Owned by Local Limited Partnerships
December 31, 1998
<TABLE>
<CAPTION>

                                           -----------------------------------------------------------------------------------------
                                                                             As of December 31, 1998
                                           -----------------------------------------------------------------------------------------
                                          Partnership's Total   Amount of     Encumbrances of  Property
                                          Investment in Local   Investment    Local Limited    and         Accumulated     Net Book
Partnership Name              Location    Limited Partnerships  Paid to Date  Partnerships     Equipment   Depreciation    Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                           <C>                <C>           <C>            <C>           <C>          <C>             <C>
Apartment Housing of          East Brewton,
East Brewton, Ltd.            Alabama            $ 1,255,000   $  828,000     $ 1,011,000   $ 1,961,000   $         -    $ 1,961,000

Autumn Trace Associates,      Silsbee, Texas         412,000      412,000       1,269,000     2,059,000       394,000      1,665,000
Ltd.

Broken Bow Apartments I,      Broken Bow,
Limited Partnership           Nebraska               608,000      546,000         750,000     1,383,000        49,000      1,334,000

Candleridge Apartments        Waukee, Iowa           125,000      125,000         685,000       873,000       112,000        761,000
of Waukee L.P. II

Chadwick Limited              Edan, North
Partnership                   Carolina               378,000      378,000       1,571,000     2,011,000       207,000      1,804,000

Comanche Retirement           Comanche, Texas        136,000      136,000         594,000       748,000        97,000        651,000
Village, Ltd.

Crossings II Limited          Portage,
Dividend Housing              Michigan               432,000      361,000       6,074,000     6,952,000       273,000      6,679,000
Association Limited
Partnership

EW, a Wisconsin Limited       Evansville,
Partnership                   Wisconson              164,000      164,000         628,000       869,000       156,000        713,000

Garland Street Limited        Malvarn,
Partnership                   Arkansas               164,000      164,000         699,000       918,000       164,000        754,000

Hereford Seniors              Hereford,
Community, Ltd.               Texas                  167,000      167,000         804,000     1,006,000        94,000        912,000

Hickory Lane                  Newton, Texas          174,000      174,000         597,000       924,000        97,000        827,000
Associates, Ltd


</TABLE>
                                       48
<PAGE>
WNC Housing Tax Credit Fund IV, L.P., Series 2
Schedule III
Real Estate Owned by Local Limited Partnerships
December 31, 1998
<TABLE>
<CAPTION>

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

Honeysuckle Court             Vidor, Texas       $   339,000   $    339,000   $ 1,168,000   $ 1,780,000  $    195,000    $ 1,585,000
Associates, Ltd.

Klimpel Manor, Ltd            Fullerton,
                              California           1,774,000      1,774,000     1,984,000     3,576,000       437,000      3,139,000

Lamesa Seniors                Lamesa, Texas          143,000        143,000       675,000       818,000       114,000        704,000
Community, Ltd.

Laredo Heights                Navasota, Texas        225,000        225,000     1,001,000     1,349,000        98,000      1,251,000
Apartments Ltd.

Mountainview Apartments       North Wilkesboro,
Limited Partnership           North Carolina         195,000        195,000     1,002,000     1,211,000       140,000      1,071,000


Palestine Seniors             Palestine, Texas       225,000        225,000     1,132,000     1,384,000       164,000      1,220,000
Community, Ltd.

Pecan Grove Limited           Forrest City,
Partnership                   Arkansas               240,000        240,000     1,118,000     1,397,000       250,000      1,147,000

Pioneer Street                Bakersfield,
Associates                    California           2,222,000      2,222,000     1,903,000     4,086,000       581,000      3,505,000

Sidney Apartments I,          Sidney, Nebraska       530,000        484,000       444,000     1,419,000       100,000      1,319,000
Limited Partnership

Southcove Associates          Orange Cove,
                              Califonia            2,000,000      2,000,000     1,538,000     3,445,000       500,000      2,945,000

Walnut Turn Associates,       Buna, Texas            188,000        188,000       692,000     1,015,000       108,000        907,000
Ltd.                                              ----------     ----------    ----------    ----------     ---------     ----------
                                                 $12,096,000    $11,490,000   $27,339,000   $41,184,000    $4,330,000    $36,854,000
                                                  ==========     ==========    ==========    ==========     =========     ==========
</TABLE>

                                       49
<PAGE>
WNC Housing Tax Credit Fund IV, L.P., Series 2
Schedule III
Real Estate Owned by Local Limited Partnerships
December 31, 1998
<TABLE>
<CAPTION>
                                  -----------------------------------------------------------------------------------
                                                         For the year ended December 31, 1998
                                  -----------------------------------------------------------------------------------
                                                                              Year                      Estimated
                                                                           Investment                  Useful Life
        Partnership Name             Rental Income         Net loss         Acquired        Status       (Years)
---------------------------------------------------------------------------------------------------------------------
<S>                                      <C>                <C>                     <C>                   <C>
Apartment Housing of East                                                                                 Not
Brewton, Ltd.                            $          -       $         -             1998    Est. 1999     Determined

Autumn Trace Associates, Ltd.                 206,000           (43,000)            1994    Completed     27.5 Years

Broken Bow Apartments I, Limited
Partnership                                    39,000          (117,000)            1996    Completed       40 Years

Candleridge Apartments of Waukee
L.P. II                                       116,000            (8,000)            1995    Completed     27.5 Years

Chadwick Limited Partnership                  188,000           (18,000)            1994    Completed       50 Years

Comanche Retirement Village, Ltd.              63,000           (21,000)            1994    Completed       30 Years

Crossings II Limited Dividend
Housing Association Limited
Partnership                                   692,000           (19,000)            1997    Completed       40 Years

EW, a Wisconsin Limited
Partnership                                   105,000           (20,000)            1994    Completed     27.5 Years

Garland Street Limited
Partnership                                    66,000           (26,000)            1994    Completed     27.5 Years

Hereford Seniors Community, Ltd.               89,000            (7,000)            1995    Completed       40 Years

Hickory Lane Associates, Ltd                   81,000           (13,000)            1995    Completed     27.5 Years

Honeysuckle Court Associates,
Ltd.                                          191,000           (18,000)            1995    Completed     27.5 Years

Klimpel Manor, Ltd                            344,000           (85,000)            1994    Completed       40 Years

Lamesa Seniors Community, Ltd.                 84,000            (8,000)            1994    Completed       40 Years

Laredo Heights Apartments Ltd.                166,000            (9,000)            1996    Completed       45 Years

Mountainview Apartments Limited
Partnership                                    90,000           (11,000)            1994    Completed       40 Years

</TABLE>

                                       50
<PAGE>
WNC Housing Tax Credit Fund IV, L.P., Series 2
Schedule III
Real Estate Owned by Local Limited Partnerships
December 31, 1998
<TABLE>
<CAPTION>
                                  -----------------------------------------------------------------------------------
                                                         For the year ended December 31, 1998
                                  -----------------------------------------------------------------------------------
                                                                              Year                      Estimated
                                                                           Investment                  Useful Life
        Partnership Name             Rental Income         Net loss         Acquired        Status       (Years)
---------------------------------------------------------------------------------------------------------------------
<S>                                      <C>                <C>                     <C>                   <C>
Palestine Seniors Community, Ltd.             135,000            (1,000)            1994    Completed       40 Years

Pecan Grove Limited Partnership               114,000           (46,000)            1994    Completed     27.5 Years

Pioneer Street Associates                     507,000           (37,000)            1995    Completed     27.5 Years

Sidney Apartments I, Limited
Partnership                                    77,000           (42,000)            1996    Completed       40 Years

Southcove Associates                          218,000          (102,000)            1994    Completed     27.5 Years

Walnut Turn Associates, Ltd.                  129,000            (17,000)           1995    Completed     27.5 Years
                                          ------------        -----------
                                         $  3,700,000       $   (668,000)
                                          ============        ===========

</TABLE>
                                       51
<PAGE>
Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  registrant  has duly  caused  this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

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

By:    WNC & Associates, Inc.       General Partner

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

Date:  September 28, 2000


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

Date:  September 28, 2000



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., Director of WNC & Associates, Inc.

Date:  September 28, 2000


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

Date:  September 28, 2000


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

Date:  September 28, 2000




                                       52