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, 2001

                                       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: 0-20057


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

             California                          33-0391979
      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|

                                       1
<PAGE>


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

                                  INAPPLICABLE


                       DOCUMENTS INCORPORATED BY REFERENCE

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

                                      NONE


                                       2
<PAGE>



PART I.

Item 1.  Business

Organization

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

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

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

Description of Business

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

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

                                       3
<PAGE>


As of March 31, 2001, the Partnership  had invested in twenty-one  Local Limited
Partnerships.  Each of these Local Limited  Partnerships  owns a Housing Complex
that is eligible  for the  federal  Low Income  Housing  Credit.  Certain  Local
Limited Partnerships may also benefit from government programs promoting low- or
moderate-income housing.

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

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

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

Item 2.  Properties

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

                                       4
<PAGE>

<TABLE>
<CAPTION>
                                                                  ------------------------------  ----------------------------------
                                                                        As of March 31, 2001              December 31, 2000
                                                                   ------------------------------  ---------------------------------
Partnership Name          Location         General Partner    Partnership's     Amount of                              Encumbrances
                                               Name          Total Investment  Investment                  Estimated Low    of Local
                                                             in Local Limited   Paid to    Number          Income Housing    Limited
                                                              Partnerships      Date      of Units  Occupancy  Credits  Partnerships
----------------------------------------------------------------------------------------------     ---------------------------------
<S>                       <C>              <C>                   <C>          <C>              <C>     <C>    <C>          <C>
Alpine Manor, L.P.        Alpine,          1600 Capital ,
                          Texas            Inc.Company           $ 195,000    $ 195,000        36      92%    $ 394,000    $ 913,000

Baycity Village           Baytown,         Green Companies
Apartments,               Texas            Development
Limited Partnership                        Group, Inc.             301,000      301,000        62      94%      629,000    1,467,000

Beckwood Manor Seven      Marianna,        Phillips Development
Limited Partnership       Arkansas         Corporation             307,000      307,000        42      95%      636,000    1,387,000

Briscoe Manor Limited     Galena,          McKnight &
Partnership               Maryland         Decoster,Inc.           308,000      308,000        31     100%      648,000    1,485,000

Evergreen Four Limited    Maynard,         Phillips Development
Partnership               Arkansas         Corporation             195,000      195,000        24      88%      402,000      868,000

Fawn Haven Limited        Manchester,      Georg E. Maharg and
Partnership               Ohio             Maharg Realty, Inc.     167,000      167,000        28      93%      376,000      855,000

Fort Stockton             Ft.Stockton,     1600 Capital
Manor, L.P.               Texas            Company,Inc.            224,000      224,000        36     100%      453,000    1,051,000

Hidden Valley Limited     Gallup, New      Alan Deke
Partnership               Mexico           Noftsker                412,000      412,000        40      93%      801,000    1,482,000

HOI Limited Partnership   Lenoir, North    Housing
Of Lenoir                 Carolina         Opportunities,Inc.      198,000      198,000        34     100%      400,000      551,000

Indian Creek Limited      Bucyrus,         Georg E. Maharg
Partnership               Ohio                                     306,000      306,000        48      92%      637,000    1,469,000

Laurel Creek              San Luis         San Luis Obispo
Apartments                Obispo,          Non-Profit
                          California       Housing Corp.         1,030,000    1,030,000        24     100%    2,103,000      636,000

Madisonville Manor        Madisonville,    Jean
Senior Citizens           Texas            Johnson                 174,000      174,000        32      94%      375,000      900,000
Complex, Ltd.
</TABLE>

                                       5
<PAGE>

<TABLE>
<CAPTION>
                                                                  ------------------------------  ---------------------------------
                                                                       As of March 31, 2001              December 31, 2000
                                                                   ------------------------------  ---------------------------------
Partnership Name          Location         General Partner    Partnership's     Amount of                              Encumbrances
                                               Name          Total Investment  Investment                  Estimated Low    of Local
                                                             in Local Limited   Paid to    Number          Income Housing    Limited
                                                              Partnerships      Date      of Units  Occupancy  Credits  Partnerships
------------------------------------------------------------------------------------------------   ---------------------------------
<S>                       <C>              <C>                 <C>          <C>               <C>     <C>  <C>          <C>
Mt. Graham                Safford,         Rural Housing, .
Housing, Ltd.             Arizona          Inc                     410,000      410,000        40      95%      788,000    1,406,000

Northside Plaza           Angleton,        Jean
Apartments, Ltd.          Texas            Johnson                 282,000      282,000        48      96%      607,000    1,359,000

Pampa Manor, L.P.         Pampa,           1600 Capital
                          Texas            Company, Inc.           180,000      180,000        32      88%      363,000      844,000
                                           Community Housing

Regency Court             Monrovia,        Assistance Program,
Partners                  California       Inc.,a California
                                           Nonprofit
                                           Corporation           1,692,000    1,690,000       115      99%    3,293,000    5,156,000

Sandpiper Square, a       Aulander,        I. Norwood
Limited Partnership       North Carolina   Stone                   219,000      219,000        24     100%      433,000      946,000

Seneca Falls East         Seneca           David R. Bacon
Apartments                Falls, New       and Frank
Company II, L.P.          York             Salvatore               270,000      270,000        32      97%      360,000      890,000

Vernon Manor,             Vernon,          1600 Capital
L.P.                      Texas            Company,Inc.            161,000      161,000        28      86%      325,000      751,000

Waterford Place,          Calhoun          Thomas E. Connelly, Jr.,
a Limited                 Falls,           TEC Rental Properties
Partnership               South            Inc., Warren H.
                          Carolina         Abernathy, II and Solid
                                           South, Inc.             272,000      272,000        32      88%      549,000    1,179,000

Yantis Housing, Ltd.      Yantis,          Charles Cannon Jr.
                          Texas                                    145,000      145,000        24      88%      287,000      627,000
                                                               -----------  -----------      -----     ----  -----------  ----------

                                                               $ 7,448,000  $ 7,446,000       812      94% $ 14,859,000 $ 26,222,000
                                                               ============ ============      ====     ===  ===========  ===========

</TABLE>
                                       6

<PAGE>

<TABLE>
<CAPTION>
                                         ---------------------------------------------------------------------------
                                                            For the year ended December 31, 2000
                                         ---------------------------------------------------------------------------
                                                                                         Low Income Housing
                                                                                            Credits Allocated to
            Partnership Name                 Rental Income       Net Income (loss)               Partnership
--------------------------------------------------------------------------------------------------------------------
<S>                                               <C>                  <C>                          <C>
Alpine Manor, L.P.                                $ 103,000            $ (23,000)                   99%

Baycity Village Apartments, Limited
Partnership                                         259,000              (55,000)                   99%


Beckwood Manor Seven Limited Partnership            151,000              (59,000)                   95%

Briscoe Manor Limited Partnership                   165,000              (96,000)                   99%

Evergreen Four Limited Partnership                   83,000              (36,000)                   95%

Fawn Haven Limited Partnership                       81,000              (22,000)                   99%

Fort Stockton Manor, L.P.                           116,000              (22,000)                   99%

Hidden Valley Limited Partnership                   156,000              (30,000)                   99%

HOI Limited Partnership Of Lenoir                   131,000              (34,000)                   99%

Indian Creek Limited Partnership                    139,000              (40,000)                   99%

Laurel Creek Apartments                             169,000              (35,000)                   99%

Madisonville Manor Senior Citizens
Complex, Ltd.                                       111,000                1,000                    99%

Mt. Graham Housing, Ltd.                            144,000              (67,000)                   99%

Northside Plaza Apartments, Ltd.                    152,000              (17,000)                   99%

Pampa Manor, L.P.                                    98,000              (34,000)                   99%

Regency Court Partners                              657,000              (62,000)                   99%


Sandpiper Square, a Limited Partnership              99,000              (15,000)                   99%

Seneca Falls East Apartments Company
II, L.P.                                            143,000              (22,000)                99.98%

Vernon Manor, L.P.                                   78,000              (32,000)                   99%

Waterford Place, a Limited Partnership              115,000              (55,000)                   99%

Yantis Housing, Ltd.                                 71,000              (29,000)                   99%
                                                -----------          ------------

                                                $ 3,221,000          $  (784,000)
                                                ===========          ============

</TABLE>
                                       7

<PAGE>


Item 3.  Legal Proceedings

NONE.

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

NONE.

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

Item 5a.

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

(b)  At March 31, 2001, there were 731 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, 2001.

Item 5b.

NOT APPLICABLE

Item 6.  Selected Financial Data

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

                                 2001         2000         1999         1998         1997         1996
                              -----------  -----------  -----------  -----------  -----------  -----------

<S>                         <C>          <C>          <C>          <C>          <C>          <C>
ASSETS
Cash and cash equivalents   $    312,214 $    310,214 $    341,350 $    389,536 $    778,448 $    997,025

Investments in limited
  partnerships, net            2,823,846    3,538,899    4,298,485    4,495,621    4,976,247    5,771,116
Due from affiliate                     -       18,407            -            -            -        9,020
Other assets                           -            -            -            -        3,000        6,986
                              -----------  -----------  -----------  -----------  -----------  -----------

                            $  3,136,060 $  3,867,520 $  4,639,835 $  4,885,157 $  5,757,695 $  6,784,147
                              ===========  ===========  ===========  ===========  ===========  ===========
LIABILITIES

Payables to limited         $
partnerships                       2,303 $      2,303 $     25,301 $     25,301 $     84,303 $    256,610
Accrued fees and expenses
  due to general partner
  and affiliates                 115,667      104,593       80,940      106,500       65,235       91,982

PARTNERS' EQUITY               3,018,090    3,760,624    4,533,594    4,753,356    5,608,157    6,435,555
                              -----------  -----------  -----------  -----------  -----------  -----------

                            $  3,136,060 $  3,867,520 $  4,639,835 $  4,885,157 $  5,757,695 $  6,784,147
                              ===========  ===========  ===========  ===========  ===========  ===========

</TABLE>

                                       8
<PAGE>

<TABLE>
<CAPTION>

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

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

                             2001         2000         1999         1998              1998         1997          1996
                          -----------  -----------  -----------   ----------   ----------   ----------   -----------
                                                                  (Unaudited
<S>                    <C>            <C>           <C>           <C>           <C>           <C>          <C>
Loss from operations   $     (76,146) $    (79,134) $    (33,750) $    (17,496) $   (126,723) $   (62,968) $    (30,845)
Equity in losses of
limited
 partnerships               (666,388)     (693,836)     (186,012)     (185,500)     (728,078)    (764,430)   (1,023,557)
                          -----------  -----------   -----------   ------------  ------------  -----------  ------------

Net loss               $    (742,534) $   (772,970) $   (219,762) $   (202,996) $   (854,801) $  (827,398) $ (1,054,402)
                          ===========  ===========   ===========   ============= =============  ==========  ============
Net loss allocated to:
  General Partner      $      (7,425) $     (7,730) $     (2,198) $     (2,030) $     (8,548) $    (8,274) $    (10,544)
                          ===========  ============  ===========   ============= ============  =========== ============
  Limited Partners     $    (735,109) $   (765,240) $   (217,564) $   (200,966) $   (846,253) $  (819,124) $ (1,043,858)
                          ===========  ============  ===========   ============  ============  ===========  ============
Net loss per limited
  partner unit         $      (73.51) $     (76.52) $     (21.76) $     (20.10) $     (84.63) $    (81.91) $    (104.39)
                          ===========  ============  ============  ============= ============  ===========  ============
Outstanding weighted
  limited partner
units                         10,000        10,000        10,000        10,000        10,000      10,000        10,000
                          ===========  ============  ===========   ============  ============  ===========  ============
</TABLE>
<TABLE>
<CAPTION>
                            For the Years Ended       For the Three Months              For the Years Ended
                                  March 31               Ended March 31                     December 31
                          -------------------------  ------------------------   ------------------------------------
                             2001         2000         1999         1998              1998         1997          1996
                          -----------  -----------  -----------   ----------   ----------   ----------   -----------
<S>                       <C>         <C>           <C>           <C>           <C>           <C>             <C>
Net cash provided by
  (used in):
  Operating activities   $  (18,169)  $    (45,392) $    (52,186) $     (5,082) $    (54,089) $   (51,546)    $  22,420
  Investing activities       20,169         14,256         4,000         5,225      (334,823)    (170,284)      (437,806)
  Financing activities             -             -             -             -             -        3,253         1,544
                          -----------  -----------  -----------   ----------   ----------   ----------       -----------

Net change in cash
and
  cash equivalents             2,000       (31,136)      (48,186)          143      (388,912)    (218,577)     (413,842)

Cash and cash
equivalents,
  beginning of period        310,214       341,350       389,536       778,448       778,448      997,025     1,410,867
                          -----------  -----------    -----------   ----------   ----------   ----------   -----------

Cash and cash
equivalents,
  end of period         $    312,214  $    310,214 $     341,350  $    778,591  $    389,536  $   778,448  $    997,025
                         ===========   ===========  ===========     ==========    ==========   ==========   ===========
</TABLE>
<TABLE>
<CAPTION>
Low Income Housing Credit per Unit was as follows for the years ended December 31:
                                  2000               1999               1998              1997               1996
                             ----------------   ---------------    ---------------   ----------------   ----------------
<S>                                 <C>               <C>                <C>                <C>                <C>
Federal                             $    149          $    146           $    142           $    143           $    136
State                                      -                 -                  -                  -                  -
                                    --------          ---------          ---------          ---------          ----------
Total                               $    149          $    146           $    142           $    143           $    136
                                    ========          =========          =========          =========          ==========
</TABLE>
Item 7. Management's  Discussion and Analysis of Financial Condition and Results
of Operations

Forward Looking Statements

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

                                       9

<PAGE>


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

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

Financial Condition

The  Partnership's  assets at March 31, 2001 consisted  primarily of $312,000 in
cash and aggregate  investments in the twenty-one Local Limited  Partnerships of
$2,824,000.  Liabilities at March 31, 2001 were $118,000,  of which $116,000 was
accrued annual management fees, and $2,000 was payables to limited partnerships.

Results of Operations

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

Year  Ended  March 31,  2000  Compared  to Year Ended  December  31,  1998.  The
Partnership's  net  loss for the  year  ended  March  31,  2000 was  $(773,000),
reflecting  a decrease  of $82,000  from the net loss  experienced  for the year
ended  December 31, 1998.  The decline in net loss is primarily due to equity in
losses from limited partnerships which declined by $34,000 to $(694,000) for the
year ended March 31, 2000 from  $(728,000) for the year ended December 31, 1998.
This decrease was a result of the Partnership not recognizing  certain losses of
the  Local  Limited   Partnerships.   The  investments  in  such  Local  Limited
Partnerships had reached $0 at March 31, 2000. Since the Partnership's liability
with respect to its  investments is limited,  losses in excess of investment are
not recognized. In addition, the Partnership experienced a decrease in operating
expenses  paid to third  parties of $59,000  partially  offset by a decrease  in
interest income of $12,000.

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
$(220,000),  reflecting an increase of $17,000 from the net loss experienced for
the three months  ended March 31, 1998.  The increase in net loss is due to loss
from  operations  which  increased by $17,000 to  $(34,000)  for the three month
period  ended March 31, 1999 from  $(17,000)  for the three month  period  ended
March 31, 1998 due to an increase in other  operating  expenses of $15,000 and a
decrease in interest income of $2,000.


                                       10

<PAGE>


Cash Flows

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

Year Ended March 31, 2000  Compared to Year Ended  December 31,  1998.  Net cash
used during the year ended March 31,  2000 was  $(31,000),  compared to net cash
used  for the year  ended  December  31,  1998 of  $(389,000).  The  change  was
primarily due to a decrease in cash used for investments in limited partnerships
and  capitalized  acquisition  fees  and  costs  of  $324,000,  an  increase  in
distributions received from Local Limited Partnerships of $25,000 and a decrease
in cash used in operating  activities,  resulting  primarily  from a decrease in
interest  income  received  and a  decrease  in cash paid to third  parties  for
operating expenses.

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  $(48,000)
compared to a net  increase in cash for the three months ended March 31, 1998 of
$100.  The change was due to an increase in cash paid to the General  Partner of
affiliates  of  $32,000  and an  increase  in cash  paid to  third  parties  for
operating expenses of $15,000.

The Partnership  expects its future cash flows,  together with its net available
assets at March 31, 2001, to be  sufficient  to meet all  currently  foreseeable
future cash requirements.


Item 7A.  Quantitative and Qualitative Disclosures About Market Risk

NOT APPLICABLE

Item 8.  Financial Statements and Supplementary Data

                                       11
<PAGE>




               REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS





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


We have audited the  accompanying  balance  sheet of WNC Housing Tax Credit Fund
IV, L.P., Series 1 (a California Limited  Partnership) (the "Partnership") as of
March 31, 2001 and 2000,  and the related  statements of  operations,  partners'
equity (deficit) and cash flows for the years ended March 31, 2001 and 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 2 to the
financial  statements,  the Partnership  accounts for its investments in limited
partnerships   using  the  equity  method.  The  portion  of  the  Partnership's
investment in limited partnerships audited by other auditors represented 69% and
63% of the  total  assets  of the  Partnership  at  March  31,  2001  and  2000,
respectively.  Our opinion, insofar as it relates to the amounts included in the
financial  statements for the limited partnerships which were audited by others,
is based solely on the reports of the other auditors.

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

In our  opinion,  based on our audits and the  reports  of other  auditors,  the
financial statements referred to above present fairly, in all material respects,
the  financial  position of WNC Housing  Tax Credit Fund IV,  L.P.,  Series 1 (a
California  Limited  Partnership) as of March 31, 2001 and 2000, and the results
of its  operations  and its cash flows for the years  ended  March 31,  2001 and
2000,  the three  months  ended March 31, 1999 and the year ended  December  31,
1998, in conformity with accounting  principles generally accepted in the United
States of America.





                                              /s/ BDO SEIDMAN, LLP
Orange County, California                         BDO SEIDMAN, LLP
June 26, 2001

                                       12

<PAGE>


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

                                 BALANCE SHEETS


<TABLE>
<CAPTION>

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

                                                                        2001             2000
                                                                  --------------   --------------
<S>                                                               <C>              <C>
ASSETS

Cash and cash equivalents                                         $       312,214  $       310,214
Investments in limited partnerships (Notes 2 and 3)                     2,823,846        3,538,899
Other assets                                                                    -           18,407
                                                                    --------------   --------------
                                                                  $     3,136,060  $     3,867,520
                                                                    ==============   ==============
LIABILITIES AND PARTNERS' EQUITY
  (DEFICIT)
Liabilities:
   Payables to limited partnerships (Note 4)                      $         2,303  $         2,303
   Accrued fees and advances due to General
     Partner and affiliate (Note 3)                                       115,667          104,593
                                                                    --------------   --------------
     Total liabilities                                                    117,970          106,896
                                                                    --------------   --------------

Commitments and contingencies

Partners' equity (deficit):
   General partner                                                        (69,720)         (62,295)
   Limited partners (10,000 units authorized,
     10,000 units issued and outstanding)                               3,087,810         3,822,919
                                                                    --------------   --------------
     Total partners' equity                                             3,018,090         3,760,624
                                                                    --------------   --------------
                                                                  $     3,136,060   $     3,867,520
                                                                    ==============    ==============
</TABLE>

                 See accompanying notes to financial statements
                                       13
<PAGE>


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

                            STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
                                                                                            For the
                                                                                             Three
                                                                                            Months         For the Year
                                                                For the Years Ended          Ended            Ended
                                                                     March 31               March 31       December 31
                                                            ---------------------------    ------------   --------------
                                                               2001            2000           1999             1998
                                                            ------------   -------------   ------------    -------------
<S>                                                       <C>            <C>              <C>             <C>
Interest income                                           $      18,304  $        15,541  $       4,084   $       27,708
Other income                                                      4,200                -              -                -
                                                            ------------   -------------   ------------    -------------

Total income                                                     22,504           15,541          4,084           27,708

Operating expenses:
   Amortization (Note 2)                                         28,496           28,496          7,124           31,369
   Asset management fees (Note 3)                                42,000           42,105         10,000           40,000
   Other                                                         28,154           24,074         20,710           83,062
                                                            ------------   -------------   ------------    -------------

    Total operating expenses                                     98,650           94,675         37,834          154,431
                                                            ------------   -------------   ------------    -------------
Loss from operations                                            (76,146)         (79,134)       (33,750)        (126,723)
Equity in losses of limited
  partnerships (Note 2)                                        (666,388)        (693,836)      (186,012)        (728,078)
                                                            ------------   -------------   ------------    -------------
Net loss                                                  $    (742,534) $      (772,970) $    (219,762)$       (854,801)
                                                            ============   =============   ============     =============
Net loss allocated to
   General partner                                        $      (7,425) $        (7,730) $      (2,198)$         (8,548)
                                                            ============   =============   ============     =============
   Limited partners                                       $    (735,109) $      (765,240) $    (217,564)$       (846,253)
                                                            ============   =============   ============     =============
Net loss per limited partner unit                         $      (73.51) $        (76.52) $      (21.76)$         (84.63)
                                                            ============   =============   ============      =============
Outstanding weighted limited
  partner units                                                  10,000           10,000         10,000           10,000
                                                            ============   =============    ============     =============
                 See accompanying notes to financial statements

</TABLE>
                                       14

<PAGE>

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

                    STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

                  For The Years Ended March 31, 2001 and 2000,
                  For The Three Months Ended March 31, 1999 and
                      For The Year Ended December 31, 1998
<TABLE>
<CAPTION>
                                                               General            Limited
                                                               Partner            Partners             Total
                                                           ---------------    ---------------     ---------------
<S>                                                       <C>               <C>                   <C>
Partners' equity (deficit) at January 1, 1998             $        (43,819) $        5,651,976    $      5,608,157

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

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

Net loss                                                            (2,198)           (217,564)           (219,762)
                                                            ---------------    ---------------     ---------------

Partners' equity (deficit) at March 31, 1999                       (54,565)          4,588,159           4,533,594

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

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

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

Partners' equity (deficit) at March 31, 2001              $        (69,720) $        3,087,810    $      3,018,090
                                                            ===============    ===============     ===============
                 See accompanying notes to financial statements
</TABLE>
                                       15

<PAGE>

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

                            STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                            For the
                                                                                             Three
                                                                                            Months         For the Year
                                                                For the Years Ended          Ended            Ended
                                                                     March 31               March 31       December 31
                                                            ---------------------------    ------------   --------------
                                                               2001            2000           1999             1998
                                                           ------------   -------------   --------------   ----------------
<S>                                                     <C>           <C>            <C>               <C>
Cash flows from operating activities:
   Net loss                                             $   (742,534) $    (772,970) $       (219,762) $        (854,801)
   Adjustments to reconcile net loss to
     net cash used in operating activities:
    Amortization                                              28,496         28,496             7,124             31,369
    Equity in losses of limited
      partnerships                                           666,388        693,836           186,012            728,078
    Change in accrued fees and
      expenses due to general partner
      and affiliates                                          11,074         23,653           (25,560 )           41,265
    Change in other assets                                    18,407        (18,407 )               -                  -
                                                          -----------    -----------    --------------   ----------------

Net cash used in operating activities                        (18,169)       (45,392)          (52,186)           (54,089)
                                                          -----------    -----------    --------------   ----------------
Cash flows from investing activities:
   Investments in limited partnerships,
     net                                                          28        (17,134)                -           (335,059)
   Capitalized acquisition costs and
     fees                                                          -              -                 -             (5,789)
   Distributions from limited
     partnerships                                             20,141         31,390             4,000              6,025
                                                          -----------    -----------    --------------   ----------------
Net cash provided by (used in)
  investing activities                                        20,169         14,256             4,000           (334,823)
                                                          -----------    -----------    --------------   ----------------
Net increase (decrease) in cash and cash equivalents           2,000        (31,136)          (48,186)          (388,912)

Cash and cash equivalents, beginning
  of period                                                  310,214        341,350           389,536            778,448
                                                          -----------    -----------    --------------   ----------------
Cash and cash equivalents, end of
  period                                                $    312,214   $    310,214   $       341,350  $         389,536
                                                          ===========    ===========    ==============   ================
SUPPLEMENTAL DISCLOSURE OF
  CASH FLOW INFORMATION
   Taxes paid                                           $        800  $         800  $              -  $             800
                                                          ============   ============   ==============   ================

</TABLE>

                                       16

<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                  For The Years Ended March 31, 2001 and 2000,
                  For The Three Months Ended March 31, 1999 and
                      For The Year Ended December 31, 1998


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

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

The  general  partner  is WNC  Tax  Credit  Partners,  IV,  L.P.  (the  "General
Partner"), a California limited partnership.  WNC & Associates,  Inc. ("WNC") is
the general partner of the General Partner.  Wilfred N. Cooper, Sr., through the
Cooper  Revocable  Trust,  owns 66.8% of the  outstanding  stock of WNC. John B.
Lester,  Jr.  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 up to 10,000 units at $1,000
per Unit  ("Units").  The offering of Units concluded in July 1994 at which time
10,000 Units in the amount of $10,000,000 had been accepted. The General Partner
has a 1% interest in operating  profits and losses,  taxable  income and losses,
cash  available  for  distribution  from the  Partnership  and tax credits.  The
limited  partners  will  be  allocated  the  remaining  99% of  these  items  in
proportion to their respective investments.

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

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 2.




                                       17
<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  For The Years Ended March 31, 2001 and 2000,
                  For The Three Months Ended March 31, 1999 and
                      For The Year Ended December 31, 1998

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
--------------------------------------------------------------
Risks and Uncertainties
-----------------------

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

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

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

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

Losses from limited  partnerships for the year ended December 31, 1998 have been
recorded  by the  Partnership  based on reported  results  provided by the Local
Limited  Partnerships.  Losses from  limited  partnerships  for the three months
ended March 31,  1999 have been  estimated  by  management  of the  Partnership.
Losses from Local  Limited  Partnerships  for the years ended March 31, 2001 and
2000 have been  recorded  by the  Partnership  based on nine  months of reported
results  provided  by the  Local  Limited  Partnerships  and on three  months of
results  estimated  by  management  of  the  Partnership.  Losses  from  limited
partnerships  allocated to the Partnership  will not be recognized to the extent
that the investment balance would be adjusted below zero.

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

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

                                       18
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  For The Years Ended March 31, 2001 and 2000,
                  For The Three Months Ended March 31, 1999 and
                      For The Year Ended December 31, 1998

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
--------------------------------------------------------------
Use of Estimates
----------------

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

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

The  Partnership   considers  all  highly  liquid   investments  with  remaining
maturities of three months or less when purchased to be cash equivalents.  There
were no cash equivalents as of March 31, 2001 and 2000.

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

At March 31,  2001,  the  Partnership  maintained  a cash  balance  at a certain
financial institution in excess of the maximum federally insured amounts.

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

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

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

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.

NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS
--------------------------------------------

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

                                       19
<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  For The Years Ended March 31, 2001 and 2000,
                  For The Three Months Ended March 31, 1999 and
                      For The Year Ended December 31, 1998


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

The  Partnership's  investments  in Local Limited  Partnerships  as shown in the
balance  sheets  at March 31,  2001 and 2000,  are  approximately  $692,000  and
$618,000,  respectively,  greater than the Partnership's equity at the preceding
December  31 as shown in the  Local  Limited  Partnerships'  combined  financial
statements  presented  below.  This  difference  is primarily  due to unrecorded
losses,  as discussed below,  acquisition,  selection and other costs related to
the  acquisition  of  the  investments   which  have  been  capitalized  in  the
Partnership's  investment  account and to capital  contributions  payable to the
limited  partnerships  which were netted  against  partner  capital in the Local
Limited Partnership's financial statements. The Partnership's investment is also
lower than the Partnership's equity as shown in the Local Limited  Partnership's
combined  financial  statements  due to the  estimated  losses  recorded  by the
Partnership for the three month period ended March 31.

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

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

At March 31, 2001 and 2000,  the  investment  accounts in certain  Local Limited
Partnerships  have  reached  a zero  balance.  Consequently,  a  portion  of the
Partnership's estimate of its share of losses for the years ended March 31, 2001
and  2000  and the  three  month  period  ended  March  31,  1999  amounting  to
approximately  $97,000,  $75,000  and  $16,000,  respectively,   have  not  been
recognized. The Partnership's share of losses during the year ended December 31,
1998 amounting to approximately $59,000 has not been recognized. As of March 31,
2001,  the  aggregate  share of net losses  not  recognized  by the  Partnership
amounted to $247,000.

Following is a summary of the equity method activity of the investments in Local
Limited Partnerships for the periods presented:
<TABLE>
<CAPTION>

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

                                                   2001              2000               1999              1998
                                              ---------------  -----------------   ---------------    --------------
<S>                                         <C>                    <C>           <C>                <C>
Investments per balance sheet, beginning
   of period                                $      3,538,899       $   4,298,485  $     4,495,621   $     4,976,247
Capital contributions paid, net                          (28)             (5,864)               -           276,057
Distributions received                               (20,141)            (31,390)          (4,000)           (6,025)
Capitalized acquisition fees and costs                     -                  -                 -             5,789
Equity in losses of limited partnerships            (666,388)           (693,836)        (186,012)         (728,078)
Amortization of paid acquisition fees
   and costs                                         (28,496)            (28,496)          (7,124)          (28,369)
                                              ---------------  -----------------   ---------------    --------------

Investments per balance sheet, end
   of period                                $      2,823,846       $   3,538,899  $     4,298,485   $     4,495,621
                                              ===============  =================   ===============    ==============
</TABLE>


                                       20
<PAGE>

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

                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  For The Years Ended March 31, 2001 and 2000,
                  For The Three Months Ended March 31, 1999 and
                      For The Year Ended December 31, 1998



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

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

                        COMBINED CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>


                                                                                     2000               1999
                                                                                ---------------    ---------------
<S>                                                                           <C>                <C>
ASSETS

Buildings and improvements, net of accumulated
  depreciation of $6,724,000 and $5,600,000 for 2000
  and 1999, respectively                                                      $     27,914,000   $     29,007,000
Land                                                                                 1,657,000          1,610,000
Due from related parties                                                                16,000             14,000
Other assets                                                                         2,090,000          2,051,000
                                                                                ---------------    ---------------

                                                                              $     31,677,000   $     32,682,000
                                                                                ===============    ===============

LIABILITIES

Mortgage and construction loans payable                                       $     26,222,000   $     25,512,000
Due to related parties                                                                 693,000            844,000
Other liabilities                                                                    1,286,000          2,078,000
                                                                                ---------------    ---------------

                                                                                    28,201,000         28,434,000
                                                                                ---------------    ---------------

PARTNERS' CAPITAL

WNC Housing Tax Credits Fund IV, L.P., Series 1                                      2,132,000          2,921,000
Other partners                                                                       1,344,000          1,327,000
                                                                                ---------------    ---------------

                                                                                     3,476,000          4,248,000
                                                                                ---------------    ---------------

                                                                              $     31,677,000   $     32,682,000
                                                                                ===============    ===============
</TABLE>

                                       21

<PAGE>


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

                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  For The Years Ended March 31, 2001 and 2000,
                  For The Three Months Ended March 31, 1999 and
                      For The Year Ended December 31, 1998



NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued
-------------------------------------------------------
                   COMBINED CONDENSED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                                 2000                1999               1998
                                                            ---------------     ---------------    ---------------
<S>                                                       <C>                 <C>                <C>
Revenues                                                  $      3,397,000    $      3,342,000   $      3,222,000
                                                            ---------------     ---------------    ---------------

Expenses:
  Operating expenses                                             2,198,000           2,196,000          2,054,000
  Interest expense                                                 841,000             905,000            880,000
  Depreciation and amortization                                  1,142,000           1,058,000          1,087,000
                                                            ---------------     ---------------    ---------------

   Total expenses                                                4,181,000           4,159,000          4,021,000
                                                            ---------------     ---------------    ---------------

Net loss                                                  $       (784,000)  $        (817,000)  $       (799,000)
                                                            ===============     ===============    ===============

Net loss allocable to the Partnership                     $       (772,000)  $        (806,000)  $       (787,000)
                                                            ===============     ===============    ===============

Net loss recorded by the Partnership                      $       (666,000)  $        (694,000)  $       (728,000)
                                                            ===============     ===============    ===============
</TABLE>
Certain Local Limited  Partnerships have incurred  significant  operating losses
and  have  working  capital  deficiencies.  In the  event  these  Local  Limited
Partnerships continue to incur significant operating losses,  additional capital
contributions  by the  Partnership  and/or  the Local  General  Partners  may be
required  to sustain  the  operations  of such Local  Limited  Partnerships.  If
additional  capital  contributions  are not made  when  they are  required,  the
Partnership's  investment in certain of such Local Limited Partnerships could be
impaired, and the loss and recapture of the related tax credits could occur.

The financial statements of one Local Limited Partnership were prepared assuming
the limited partnership will continue as a going concern.  The Partnership had a
$441,770,  $427,978,  $644,019 and $699,602  remaining  investment in such Local
Limited  Partnership  at March 31, 2001,  2000 and 1999,  and December 31, 1998,
respectively.  The  Partnership's  original  investment  in  the  Local  Limited
Partnership  approximated  $1,691,585.  Through  December  31,  2000,  the Local
Limited Partnership has had recurring losses,  working capital  deficiencies and
has not been billed for certain  property tax expenses due since 1994. The Local
Limited Partnership is seeking abatement or an extended payment plan to pay down
certain of these  liabilities;  however,  if the Local  Limited  Partnership  is
unsuccessful,  additional funding may be requested from the Partnership.  In the
event the  Local  Limited  Partnership  is  required  to  liquidate  or sell its
property,  the net proceeds could be significantly  less than the carrying value
of such  property.  As of December 31, 2000 and 1999, the carrying value of such
property  on the books and  records  of the Local  Limited  Partnership  totaled
$6,703,761  and  $6,849,598.   The  auditors  for  this  entity  have  expressed
substantial  doubt as to this entity's ability to continue as a going concern as
a result of the property tax issue.

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



                                       22
<PAGE>





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

                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  For The Years Ended March 31, 2001 and 2000,
                  For The Three Months Ended March 31, 1999 and
                      For The Year Ended December 31, 1998




NOTE 3 - RELATED PARTY TRANSACTIONS
-----------------------------------

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

     Acquisition  fees  of up to 8% of the  gross  proceeds  from  the  sale  of
     Partnership  units as compensation for services rendered in connection with
     the  acquisition of Local Limited  Partnerships.  At the end of all periods
     presented,   the  Partnership   incurred   acquisition  fees  of  $800,000.
     Accumulated  amortization  of these  capitalized  costs  was  $243,289  and
     $157,298 as of March 31, 2001 and 2000,  respectively.  Of the  accumulated
     amortization recorded on the balance sheet at March 31, 2001 $59,327 of the
     related  expense was reflected as equity in losses of limited  partnerships
     on the statement of operations  during the fourth quarter of the year ended
     March 31, 2001 to reduce the  respective net  acquisition  fee component of
     investments in local limited  partnerships  to zero for those Local Limited
     Partnerships which would otherwise be below a zero balance.

     Reimbursement  of costs incurred by the General  Partner in connection with
     the acquisition of Local Limited  Partnerships.  These  reimbursements have
     not  exceeded  1.2%  of  the  gross  proceeds.  At the  end of all  periods
     presented,  the Partnership  incurred  acquisition costs of $54,949,  which
     have been  included in  investments  in limited  partnerships.  Accumulated
     amortization  amounted to $54,949 and $8,861 as of March 31, 2001 and 2000,
     respectively. Of the accumulated amortization recorded on the balance sheet
     at March 31, 2001,  $44,256 of the related  expense was reflected as equity
     in losses of limited partnerships on the statement of operations during the
     fourth  quarter of the year ended March 31,  2001 to reduce the  respective
     net acquisition cost component of investments in local limited partnerships
     to zero for those Local Limited Partnerships which would otherwise be below
     a zero balance.

     An annual asset  management  fee equal to the greater  amount of (i) $2,000
     for each apartment  complex,  or (ii) 0.275% of gross  proceeds.  In either
     case,  the fee will be decreased or increased  annually based on changes to
     the Consumer  Price  Index.  However,  in no event will the maximum  amount
     exceed  0.2% of the  invested  assets  of the Local  Limited  Partnerships,
     including the  Partnership's  allocable share of the mortgages.  Management
     fees of $42,000  were  incurred  during the years  ended March 31, 2001 and
     2000, $10,000 during the three months ended March 31, 1999, and $40,000 was
     incurred for the year ended  December 31, 1998 of which $30,000 and $16,310
     was paid during the years ended March 31, 2001 and 2000, and $33,690 during
     the three months ended March 31, 1999, respectively, and $0 was paid during
     1998.

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

     An affiliate of the General Partner provides management services for one of
     the properties in the limited partnerships.  Management fees were earned by
     the  affiliate  in the amount of $53,276  and  $50,259  for the years ended
     March 31,  2001 and 2000 and $8,625 for the three  months  ended  March 31,
     1999, and $38,348 during the year ended December 31, 1998. In May 1999, the
     affiliate  of  the  general  partner  refunded  $7,086  and  $1,887  of the
     management fees related to 1998 and 1997, respectively,  in accordance with
     the terms of the Partnership's prospectus.

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

                                                                      2001             2000              1999
                                                                  --------------    ------------    ---------------
<S>                                                             <C>               <C>             <C>

Reimbursement for expenses paid by the General Partner
  or an affiliate                                               $             -   $         926   $          2,963

Asset management fee payable                                            115,667         103,667             77,977
                                                                  --------------    ------------    ---------------

Total                                                           $       115,667   $     104,593   $         80,940
                                                                  ==============    ============    ===============

</TABLE>

                                       23
<PAGE>

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

                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  For The Years Ended March 31, 2001 and 2000,
                  For The Three Months Ended March 31, 1999 and
                      For The Year Ended December 31, 1998


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

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

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

The following is a summary of the quarterly operations for the years ended March
31, 2001 and 2000 (in thousands, except for per unit data).
<TABLE>
<CAPTION>

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

               2001
<S>                                   <C>                 <C>                <C>                 <C>
Income                                $          5,000    $          9,000   $          5,000    $          3,000

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

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

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

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

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

               2000

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

Operating expenses                             (23,000)            (27,000)           (24,000)            (21,000)

Equity in losses of limited
     partnerships                             (196,000)           (191,000)          (189,000)           (118,000)

Net loss                                      (215,000)           (214,000)          (209,000)           (135,000)

Loss available to limited partners            (213,000)           (212,000)          (207,000)           (133,000)

Loss per limited partner unit                      (21)                (21)               (21)                (13)

</TABLE>

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

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

                                       24

<PAGE>


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

NOT APPLICABLE

PART III

Item 10. Directors and Executive Officers of the Registrant

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

Directors and Executive Officers of WNC & Associates, Inc.

The directors of WNC & Associates,  Inc. are Wilfred N. Cooper,  Sr., who serves
as Chairman of the Board,  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 70, 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 67, is  Vice-Chairman,  a Director,  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 38, is  President,  Chief  Operating  Officer,  a
Director and a member of the Acquisition Committee of WNC & Associates,  Inc. He
is President of, and a registered  principal  with, WNC Capital  Corporation,  a
member firm of the NASD, and is a Director of WNC  Management,  Inc. He has been
involved in investment and  acquisition  activities  with respect to real estate
since he joined the  Sponsor  in 1988.  Prior to this,  he served as  Government
Affairs  Assistant with Honda North America in Washington,  D.C. Mr. Cooper is a
member of the Advisory Board for LIHC Monthly Report,  a Director of NMHC and an
Alternate  Director of NAHB. He graduated  from The American  University in 1985
with a Bachelor of Arts degree.

David N.  Shafer,  age 49, 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.

                                       25
<PAGE>



Thomas J. Riha, age 46, became Chief Financial  Officer  effective January 2001.
Prior to his  appointment  as Chief  Financial  Officer he was Vice  President -
Asset Management and a member of the Acquisition  Committee of WNC & Associates,
Inc. and a Director and Chief Executive Officer of WNC Management, Inc. Mr. Riha
has been involved in acquisition and investment  activities with respect to real
estate since 1979.  Prior to joining the Sponsor in 1994,  Mr. Riha was employed
by Trust Realty Advisor, a real estate acquisition and management company,  last
serving as Vice  President - Operations.  Mr. Riha graduated from the California
State  University,  Fullerton in 1977 with a Bachelor of Arts degree (cum laude)
in Business Administration with a concentration in Accounting and is a Certified
Public  Accountant  and a member of the American  Institute of Certified  Public
Accountants.

Sy P. Garban,  age 55, 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 38, 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 46, 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 64, is a Director of WNC & Associates,  Inc. Mrs. Cooper was
the founder and sole  proprietor  of Agate 108, a  manufacturer  and retailer of
home  accessory  products,  from 1975 until 1998.  She is the wife of Wilfred N.
Cooper,  Sr.,  the mother of Wilfred  N.  Cooper,  Jr. and the sister of John B.
Lester,  Jr. Ms. Cooper graduated from the University of Southern  California in
1958 with a Bachelor of Science degree.

Item 11.  Executive Compensation:

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

(a)  Annual Asset  Management Fee. An annual asset management fee the greater of
     (i)  $2,000  per  multi-family  housing  complex,  or (ii)  0.275% of Gross
     Proceeds. The base fee amount will be adjusted annually based on the change
     in the  Consumer  Price Index.  However,  in no event will the annual asset
     management fee exceed 0.2% of Invested Assets.  "Invested Assets" means the
     sum of the Partnership's  investment in Local Limited  Partnerships and the
     Partnership's  allocable share of the amount of the indebtedness related to
     the Housing Complexes.  Fees of $42,000,  $42,000, $10,000 and $40,000 were
     incurred  during the years ended March 31, 2001 and 2000,  the three months
     ended March 31, 1999, and the year ended  December 31, 1998,  respectively.
     The  Partnership  paid  the  General  Partner  or its  affiliates  $30,000,
     $16,310, $33,690 and $0 of those fees during the years ended March 31, 2001
     and 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.

                                  26
<PAGE>

(c)  Operating Expenses.  The Partnership  reimbursed the General Partner or its
     affiliates for operating expenses of approximately $26,000, $9,000, $21,000
     and $1,000 during the year ended March 31, 2001 and 2000,  the three months
     ended March 31, 1999, and the year ended December 31, 1998, respectively.

(d)  Interest  in  Partnership.   The  General   Partner   receives  1%  of  the
     Partnership's  allocated Low Income  Housing  Credits,  which  approximated
     $15,000,  $15,000 and  $14,000 for the General  Partner for the years ended
     December 31, 2000, 1999 and 1998, respectively. The General Partner is also
     entitled to receive 1% of cash  distributions.  There were no distributions
     of cash to the  General  Partner  during the years ended March 31, 2001 and
     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

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

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

(b)  Security Ownership of Management
     -------------------------------

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

(c)  Changes in Control
     ------------------

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

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

Item 13.  Certain Relationships and Related Transactions

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

                                       27

<PAGE>


PART IV.

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

Financial Statements

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

       Report of Independent  Certified Public Accountants Balance Sheets, March
       31, 2001 and 2000  Statements of Operations for the years ended March 31,
       2001 and 2000,  the three  months ended March 31, 1999 and the year ended
       December  31, 1998  Statements  of  Partners'  Equity for the years ended
       March 31, 2001 and 2000,  the three  months  ended March 31, 1999 and the
       year ended December 31, 1998 Statements of Cash Flows for the years ended
       March 31, 2001 and 2000,  the three  months  ended March 31, 1999 and the
       year ended December 31, 1998 Notes to Financial Statements

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

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

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

1.     None

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

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

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

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

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

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

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

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

                                       28
<PAGE>


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

21.1   Financial  Statements  of Laurel  Creek  Apartments,  for the years ended
       December 31, 1999 and 1998 together  with  Independent  Auditors'  Report
       Thereon; a significant subsidiary of the Partnership.

                                       29
<PAGE>


21.2   Financial  Statements  of Laurel  Creek  Apartments,  for the years ended
       December 31, 2000 and 1999 together  with  Independent  Auditors'  Report
       Thereon; a significant subsidiary of the Partnership.

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


                                       30

<PAGE>


               Report of Independent Certified Public Accounts on
                          Financial Statement Schedules




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


The audits referred to in our report dated June 26, 2001,  relating to the 2001,
2000, 1999 and 1998 financial statements of WNC Housing Tax Credit Fund IV, L.P.
Series 1 (the  "Partnership"),  which is  contained in Item 8 of this Form 10-K,
included  the  audit of the  accompanying  financial  statement  schedules.  The
financial  statement  schedules  are  the  responsibility  of the  Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statement schedules based upon our audits.

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


                                        /s/ BDO SEIDMAN, LLP
Orange County, California                   BDO SEIDMAN, LLP
June 26, 2001




                                       31

<PAGE>


WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2001
<TABLE>
<CAPTION>
                                               ------------------------------------------ ----------------------------------------
                                                          As of March 31, 2001                As of December 31, 2000
                                                  ----------------------------------------------------------------------------------
                                                  Total Investment   Amount of     Encumbrances of
                                                  in Local Limited InvestmentPaid  Local Limited  Property and  Accumulated Net Book
         Partnership Name         Location           Partnerships    to Date       Partnerships   Equipment     Depreciation  Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                               <C>                <C>              <C>          <C>          <C>          <C>           <C>
Alpine                            Alpine,
Manor, L.P.                       Texas              $  195,000       $  195,000   $  913,000   $ 1,170,000  $  192,000    $ 978,000

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

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

Briscoe Manor Limited             Galena,
Partnership                       Maryland              308,000          308,000    1,485,000     1,812,000     441,000    1,371,000

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

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

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

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

HOI Limited Partnership           Lenoir, North
Of Lenoir                         Carolina              198,000          198,000      551,000     1,168,000     250,000      918,000

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

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

</TABLE>

                                       32
<PAGE>


<TABLE>
<CAPTION>
WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2001
                                                ------------------------------------------ ----------------------------------------
                                                          As of March 31, 2001                As of December 31, 2000
                                                  ----------------------------------------------------------------------------------
                                                  Total Investment   Amount of     Encumbrances of
                                                  in Local Limited InvestmentPaid  Local Limited  Property and  Accumulated Net Book
         Partnership Name         Location           Partnerships    to Date       Partnerships   Equipment     Depreciation  Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                               <C>              <C>                <C>        <C>           <C>          <C>         <C>
Madisonville Manor Senior         Madisonville,
Citizens Complex, Ltd.            Texas                 174,000          174,000      900,000     1,150,000     118,000    1,032,000

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

Northside Plaza                   Angleton,
Apartments, Ltd.                  Texas                 282,000          282,000    1,359,000     1,736,000     208,000    1,528,000

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

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

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

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

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

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

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

</TABLE>

                                       33
<PAGE>



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

                                                        ---------------------------------------
                                                          For the year ended December 31, 2000
                                                        ---------------------------------------
          Partnership Name               Rental          Net        Year Investment    Status     Estimated Useful
                                         Income     Income/(loss)      Acquired                     Life (Years)
--------------------------------------------------------------------------------------------------------------------
<S>                                    <C>           <C>                <C>            <C>               <C>
Alpine Manor, L.P.                     $ 103,000     $   (23,000)       1994           Completed          40

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Seneca Falls East Apartments
Company II, L.P.                         143,000         (22,000)       1998           Completed          40
</TABLE>
                                       34
<PAGE>



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

                                                        ---------------------------------------
                                                          For the year ended December 31, 2000
                                                        ---------------------------------------
          Partnership Name               Rental          Net        Year Investment    Status     Estimated Useful
                                         Income     Income/(loss)      Acquired                     Life (Years)
------------------------------------------------------------------------------------------------------------------
<S>                                  <C>              <C>               <C>            <C>                <C>
Vernon Manor, L.P.                        78,000         (32,000)       1994           Completed          40

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


Yantis Housing, Ltd.                      71,000         (29,000)       1994           Completed          40
                                     ----------       -----------

                                     $ 3,221,000      $ (784,000)
                                     ===========      ===========
</TABLE>
                                       35


<PAGE>



WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2000
<TABLE>
<CAPTION>
                                                ------------------------------------------ ----------------------------------------
                                                          As of March 31, 2000                As of December 31, 1999
                                                  ----------------------------------------------------------------------------------
                                                  Total Investment   Amount of     Encumbrances of
                                                  in Local Limited InvestmentPaid  Local Limited  Property and  Accumulated Net Book
         Partnership Name         Location           Partnerships    to Date       Partnerships   Equipment     Depreciation  Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                               <C>                <C>              <C>          <C>          <C>          <C>          <C>
Alpine                            Alpine,
Manor, L.P.                       Texas              $  195,000       $  195,000   $  916,000   $ 1,170,000  $  163,000  $ 1,007,000

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

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

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

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

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

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

Hidden Valley Limited             Gallup, New
Partnership                       Mexico                412,000          412,000    1,487,000     1,944,000     269,000    1,675,000

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

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

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

</TABLE>

                                       36
<PAGE>



WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2000
<TABLE>
<CAPTION>
                                                ------------------------------------------ ----------------------------------------
                                                          As of March 31, 2000                As of December 31, 1999
                                                  ----------------------------------------------------------------------------------
                                                  Total Investment   Amount of     Encumbrances of
                                                  in Local Limited InvestmentPaid  Local Limited  Property and  Accumulated Net Book
         Partnership Name         Location           Partnerships    to Date       Partnerships   Equipment     Depreciation  Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                               <C>              <C>                <C>        <C>           <C>          <C>         <C>
Madisonville Manor Senior         Madisonville,
Citizens Complex, Ltd.            Texas                 174,000          174,000      903,000     1,149,000      95,000    1,054,000

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

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

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

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

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

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

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

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

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

</TABLE>

                                       37
<PAGE>



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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

</TABLE>

                                       38
<PAGE>



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

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

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

</TABLE>
                                       39

<PAGE>

, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 1999
<TABLE>
<CAPTION>
                                                ------------------------------------------ ----------------------------------------
                                                          As of March 31, 1999                As of December 31, 1998
                                                  ----------------------------------------------------------------------------------
                                                  Total Investment   Amount of     Encumbrances of
                                                  in Local Limited InvestmentPaid  Local Limited  Property and  Accumulated Net Book
         Partnership Name         Location           Partnerships    to Date       Partnerships   Equipment     Depreciation  Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                               <C>                <C>              <C>          <C>          <C>          <C>          <C>
Alpine                            Alpine,
Manor, L.P.                       Texas              $  195,000       $  195,000   $  920,000   $ 1,167,000  $  134,000  $ 1,033,000

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

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

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

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

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

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

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

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

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

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

</TABLE>

                                       40
<PAGE>

Madisonville MaP., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 1999
<TABLE>
<CAPTION>
                                                ------------------------------------------ ----------------------------------------
                                                          As of March 31, 1999                As of December 31, 1998
                                                  ----------------------------------------------------------------------------------
                                                  Total Investment   Amount of     Encumbrances of
                                                  in Local Limited InvestmentPaid  Local Limited  Property and  Accumulated Net Book
         Partnership Name         Location           Partnerships    to Date       Partnerships   Equipment     Depreciation  Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                               <C>              <C>                <C>        <C>           <C>          <C>         <C>
Madisonville Manor Senior         Madisonville,
Citizens Complex, Ltd.            Texas                 174,000          174,000      905,000     1,150,000      72,000    1,078,000

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

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

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

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

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

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

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

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

Yantis Housing, Ltd.              Yantis, Texas         145,000          145,000      633,000       837,000     101,000      736,000
                                                   ---------          ---------- ------------  --------------   -------- -----------
                                                   $  7,454,000       $7,429,000 $ 26,684,000  $ 36,188,000 $ 4,545,000 $ 31,643,000
                                                  =============      ==========  ============  ============ =========== ============

</TABLE>

                                       41
<PAGE>



WNC Housing Tax Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 1999
<TABLE>
<CAPTION>
                              --------------------------------------------------------------------------------------
                                                      For the year ended December 31, 1998
                              --------------------------------------------------------------------------------------
                                                                   Year Investment                Estimated Useful
      Partnership Name          Rental Income        Net Loss         Acquired         Status       Life (Years)
--------------------------------------------------------------------------------------------------------------------
<S>                                 <C>              <C>                <C>            <C>              <C>
Alpine Manor, L.P.                  $    104,000     $   (19,000)       1994           Completed          40

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

</TABLE>

                                       42
<PAGE>



x Credit Fund IV, L.P., Series 1
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 1999
<TABLE>
<CAPTION>
                             --------------------------------------------------------------------------------------


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

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

Yantis Housing, Ltd.                                                    1994           Completed          40
                                          73,000          (11,000)
                                   --------------     ------------

                                   $   3,122,000      $  (799,000)
                                   ==============     ============

</TABLE>

                                       43
<PAGE>



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


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


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

By:  WNC & Associates, Inc., General Partner



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

Date: July 11, 2001


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

Date: July 11, 2001

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


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

Date: July 11, 2001


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

Date July 11, 2001


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

Date: July 11, 2001





                                       44
<PAGE>










                             LAUREL CREEK APARTMENTS
                       (A California Limited Partnership)
                          AUDITED FINANCIAL STATEMENTS
                                DECEMBER 31, 2000















<PAGE>


                             LAUREL CREEK APARTMENTS
                          AUDITED FINANCIAL STATEMENTS
                                DECEMBER 31, 2000




                                TABLE OF CONTENTS
                                                                         Page

Independent Auditors' Report                                               1

Balance Sheet                                                              2

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

Statement of Cash Flows                                                    4

Notes to Financial Statements                                              5


<PAGE>



                          INDEPENDENT AUDITORS' REPORT



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

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

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

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

                                 /s/ Wallace E. Rowe,CPA
                                     Wallace E. Rowe.CPA


February 9, 2001

                                       1
<PAGE>





                             LAUREL CREEK APARTMENTS
                                  BALANCE SHEET
                                DECEMBER 31, 2000
<TABLE>
<CAPTION>
<S>                                                           <C>
ASSETS

CURRENT ASSETS
         Cash (Note 2)                                        $              27,206
         Accounts receivable                                                    863
         Prepaid expenses                                                     1,149
                                                                 -----------------------------
                  TOTAL CURRENT ASSETS                                       29,218
Restricted reserves (Note 3)                                                 27,619
Land, structures and equipment, net of
         accumulated depreciation of $463,746 (Note 4)                    1,701,608
Organizational costs, net of accumulated
         amortization of $12,325 (Note 5)                                    14,593
                                                              ---------------------------------
                  TOTAL ASSETS                                $           1,773,038
                                                             =================================
LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES
         Accounts payable - related party (Note 7)            $              10,325
         Accounts payable - other                                            10,580
         Security deposits payable                                            7,486
         Current portion of long-term debt (Note 6)                          24,717
                                                              ---------------------------------
                  TOTAL CURRENT LIABILITIES                                  53,108

Long-term debt (Note 6)                                                     611,326
                                                              ---------------------------------
                  TOTAL LIABILITIES                                         664,434

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


                             See accompanying notes.

                                       2
<PAGE>


                             LAUREL CREEK APARTMENTS
                        STATEMENT OF INCOME, EXPENSES AND
                          CHANGES IN PARTNERS' CAPITAL
                      FOR THE YEAR ENDED DECEMBER 31, 2000

<TABLE>
<CAPTION>
<S>                                                               <C>
OPERATING INCOME
         Rental income                                           $          165,469
         Tenant charges                                                       3,874
                                                                 --------------------------------
                  TOTAL INCOME                                              169,343
                                                                 --------------------------------
OPERATING EXPENSES
         Administration                                                      17,996
         Insurance and taxes                                                  4,464
         Maintenance                                                         38,924
         Utilities                                                           19,512
         Depreciation and amortization                                       72,716
                                                                 --------------------------------

                  TOTAL EXPENSES                                            153,612
                                                                 --------------------------------
                  NET INCOME (LOSS)  FROM OPERATIONS                         15,731
                                                                 --------------------------------

OTHER INCOME AND EXPENSES
         Interest income                                                      1,620
         Interest expense                                                   (52,506)
                                                                 --------------------------------

                  NET OTHER INCOME UNDER EXPENSES                           (50,886)
                                                                 --------------------------------
                  NET LOSS                                                  (35,155)

BEGINNING PARTNERS' CAPITAL                                               1,147,135

Partner withdrawals                                                          (3,376)
                                                                 --------------------------------

ENDING PARTNERS' CAPITAL                                         $        1,108,604
                                                                 ================================

</TABLE>

                             See accompanying notes.

                                       3
<PAGE>


                             LAUREL CREEK APARTMENTS
                             STATEMENT OF CASH FLOWS
                          YEAR ENDED DECEMBER 31, 2000

<TABLE>
<CAPTION>
<S>     <C>

CASH FLOWS FROM OPERATING ACTIVITIES

         Net loss                                                $          (35,155)
         Adjustments to reconcile net loss to
             Net cash provided by operating activities
                  Depreciation and amortization                              72,716
                  (Increase) decrease in:
                           Accounts receivable                                  368
                           Prepaid expenses                                    (438)
                           Restricted reserves                               (4,800)
                  Increase (decrease) in:
                           Accounts payable - other                           2,095
                           Accounts payable - related parties               (10,027)
                           Security deposits payable                            456
                                                                 ------------------------------

         NET CASH PROVIDED BY OPERATING ACTIVITIES                           25,215
                                                                 -------------------------------


CASH FLOWS FROM FINANCING ACTIVITIES

         Capital withdrawals                                                 (3,376)
         Payment of debt                                                    (23,843)
                                                                 -------------------------------

         NET CASH USED IN FINANCING ACTIVITIES                              (27,219)
                                                                 -------------------------------

NET INCREASE (DECREASE) IN CASH                                              (2,004)

CASH - BEGINNING OF YEAR                                                     29,210
                                                                 -------------------------------

CASH - END OF YEAR                                               $           27,206
                                                                 ===============================
</TABLE>


                             See accompanying notes.
                                       4

<PAGE>


                             LAUREL CREEK APARTMENTS
                        NOTES TO THE FINANCIAL STATEMENTS
                                DECEMBER 31, 2000


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

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

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

       Summary of Significant Accounting Policies

       a.     Basis of accounting

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

              b. Fixed assets and depreciation

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

              c. Income taxes

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

                                       5
<PAGE>


                             LAUREL CREEK APARTMENTS
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2000

                                   (Continued)
<TABLE>
<CAPTION>
Note 2 - CASH

              Cash  consists  of $26,458  deposited  into  savings  or  checking
              accounts,  and $748 is on  deposit  with the  State of  California
              Local  Agency  Investment  Fund.  At December  31, 2000 the amount
              deposited   into  the  savings   accounts  and  the  Local  Agency
              Investment  Fund  earned  interest  at rates  from  5.89% to 6.47%
              respectively.

Note 3 - RESTRICTED CASH

              Restricted  cash consists of $27,619  maintained in a money market
              account  earning 5.89%.  This cash is reserved for the replacement
              of structures and equipment.

Note 4 - LAND, STRUCTURES AND EQUIPMENT

              Property and equipment and accumulated depreciation consist of the
              following:

<S>                                                     <C>                   <C>
                                                                                   Accumulated
                                                               Cost                Depreciation

               Land                                     $     275,000         $             -
               Building                                     1,868,634                 444,476
               Equipment                                       21,720                  19,270
                                                        -----------------       -----------------

                                                        $   2,165,354         $       463,746
                                                        =================       =================

Note 5 - ORGANIZATION COSTS

              Organization  costs and  accumulated  amortization  consist of the
              following:

                                                                                   Accumulated
                                                               Cost                Amortization

               Organization costs                       $      26,918         $        12,325
                                                        =================       =================
</TABLE>
                                       6

<PAGE>


                             LAUREL CREEK APARTMENTS
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2000

                                   (Continued)

<TABLE>
<CAPTION>

Note 6 - NOTE PAYABLE

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

                    Year ending
                    December 31
<S>                      <C>                                         <C>
                         2001                                        $         76,569
                         2002                                                  76,569
                         2003                                                  76,569
                         2004                                                  76,569
                         2005                                                  76,569
                         Thereafter                                           663,595
                                                                     ----------------

                             Total                                          1,046,440

                         Less amounts representing
                            interest                                          410,397
                                                                     ----------------

                                                                     $        636,043
</TABLE>

Note 7 - RELATED PARTIES

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

       At December 31, 2000 the partnership owed the Authority  $10,325.  During
       the year ended  December 31, 2000,  the  partnership  paid the  Authority
       $29,723 in maintenance expenses and management fees.




                                       7
<PAGE>




                             LAUREL CREEK APARTMENTS
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2000

                                   (Continued)

Note 8 - LAND DONATION AND LEASE

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

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

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






                                        8