REGENCY COURT PARTNERS A California Limited Partnership
                          (CI-WA Project No. 92-002-S)





                               ANNUAL EXAMINATION


                                -----------------
                                December 31, 2003
                                -----------------






















<PAGE>


                                    CONTENTS





                                                                            Page

INDEPENDENT AUDITOR'S REPORT                                                 1-2
FINANCIAL STATEMENTS:
      Balance Sheets                                                         3-4
      Statements of Operations and Changes in Partners' Equity                 5
      Statements of Changes in Partners' Equity                                6
      Statements of Cash Flows                                               7-8
      Notes to Financial Statements                                         9-14
SUPPLEMENTARY INFORMATION:
      Supplemental Schedule of Expenses                                       15
      Supplemental Data Required by CHFA                                   16-18
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROLS                          19-20
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE
      WITH LAWS AND REGULATIONS                                               21
CERTIFICATION OF GENERAL PARTNER                                              22




















<PAGE>


1730 Havens Point Place
Carlsbad, California 92008-3611
                                                             Jack Gilk
Telephone: 760.434.8845
Facsimile: 760.434.8865
Email: jack@gilkcpa.com                              Certified Public Accountant


     Partners
     Regency Court Partners
     Costa Mesa, California




                          INDEPENDENT AUDITOR'S REPORT


          I have  audited  the  accompanying  balance  sheet  of  Regency  Court
     Partners,  a California Limited  Partnership (CHFA Project No. 92-002-S) as
     of December 31, 2002 and 2003, and the related statements of operations and
     changes in partners' equity, and cash flows for the years then ended. These
     financial   statements  are  the   responsibility   of  the   partnership's
     management.  My  responsibility is to express an opinion on these financial
     statements based on my audits.

          I conducted my audits in accordance with auditing standards  generally
     accepted in the United States,  Government Auditing Standards issued by the
     Comptroller  General of the United States,  and the standards for financial
     and  compliance  audits  contained in  California  Housing  Finance  Agency
     Audited  Financial  Statements  Handbook  (revised  December  1991).  Those
     standards  require that I plan and perform the audits to obtain  reasonable
     assurance  about  whether  the  financial  statements  are free of material
     misstatement.  An  audit  includes  examining,  on a test  basis,  evidence
     supporting  the amounts and  disclosures  in the financial  statements.  An
     audit  also  includes   assessing  the  accounting   principles   used  and
     significant estimates made by management, as well as evaluating the overall
     financial  statement  presentation.  I  believe  that my  audits  provide a
     reasonable basis for my opinion.

          In my opinion,  the  financial  statements  referred to above  present
     fairly, in all material  respects,  the financial position of Regency Court
     Partners,  a California Limited  Partnership (RHCP Project No. 92-002-S) as
     of December 31, 2002 and 2003,  and the results of its  operations  and its
     cash  flows  for  the  years  then  ended  in  conformity  with  accounting
     principles generally accepted in the United States.

          My audit was  conducted  for the  purpose of forming an opinion on the
     financial  statements  taken as a  whole.  The  accompanying  supplementary
     information  shown  on  pages  15 to 18 is  presented  for the  purpose  of
     additional  analysis  and is not a  required  part of the  basic  financial
     statements of Regency Court  Partners  (RHCP  Project No.  92-002-S).  Such
     information  has been subjected to the auditing  procedures  applied in the
     audit of the basic  financial  statements  and,  in my  opinion,  is fairly
     stated in all  material  respects in relation to the  financial  statements
     taken as a whole.





<PAGE>


Regency Court Partners
CHFA Project No. 92-002-S
Independent Auditor's Report, December 31, 2003
Page 2
--------------------------------------------------------------------------------


     In accordance  with  Government  Auditing  Standards,  I have also issued a
report dated January 19, 2004 on my  consideration  of Regency  Court  Partners'
internal control structure and a report dated January 19, 2004 on its compliance
with laws and regulations.

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






January 19, 2004                                         /s/Jack Gilk
                                                         V 33-0724657




--------------------------------------------------------------------------------
               See the accompanying notes tofinancial statements.

                                       2
<PAGE>



<TABLE>
<CAPTION>
                            REGENCY COURT PARTNERS
                            CHFA Project No. 92-002-S
                       (A California Limited Partnership)
--------------------------------------------------------------------------------------------------------------
                   BALANCE SHEETS, DECEMBER 31, 2002 AND 2003
--------------------------------------------------------------------------------------------------------------


                                     ASSETS




                                                                          2003                        2002
                                                                      ---------------          ---------------
<S>                                                                   <C>                      <C>
Current Assets:
     Operating cash and equivalents                                   $      26,132            $      27,629
     Tenant security deposit cash                                            25,297                   24,703
     Tenant accounts receivable                                               2,420                       70
     Prepaid expenses                                                        16,435                   14,211
     Restricted tax impound funds                                            41,071                   56,381
     Restricted hazard insurance impound funds                               17,716                   15,438
     Restricted earthquake insurance impound funds                           18,040                   15,646
                                                                      ---------------          ---------------
              Total current assets                                          147,111                  154,078
                                                                      ---------------          ---------------

Property, Building and Equipment, At Cost:
     Building and improvements                                            7,703,983                7,703,983
     Equipment                                                                3,572                    3,572
                                                                      ---------------          ---------------
                                                                          7,707,555                7,707,555
     Accumulated depreciation                                            (1,592,667)              (1,396,376)
                                                                      ---------------          ---------------
             Property, building, and equipment - net                      6,114,888                6,311,179
                                                                      ---------------          ---------------


Other Assets:
    Replacement reserve                                                      98,996                  112,546
    Rent up reserve                                                          53,209                   52,471
    Unamortized deferred costs                                               13,207                   19,811
                                                                      ---------------          ---------------
             Total other assets                                             165,412                  184,828
                                                                      ---------------          ---------------

                                                                      $   6,427,411            $   6,650,085
                                                                      ===============          ===============


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


Regency Court Partners
CHFA Project No. 92-002-S
Balance Sheets, December 31, 2002 and 2003
Page 2
-------------------------------------------------------------------------------------------------------------


                        LIABILITIES AND PARTNERS' EQUITY



                                                                          2003                        2002
                                                                      ---------------          ---------------
<S>                                                                      <C>                      <C>
Current Liabilities:
     Current portion of mortgage payable                                 $   82,446               $   77,002
     Accounts payable                                                             -                    5,745
     Tenant security trust liability                                         25,067                   24,457
     Accrued interest                                                        23,090                   23,531
     Accrued property tax                                                    58,896                   48,447
     Unearned rental income                                                     791                       81
                                                                      ---------------          ---------------
              Total current liabilities                                     190,290                  179,263
                                                                      ---------------          ---------------

Long-term Debt:
     Accrued property tax                                                   254,175                  227,748
     Accrued interest                                                       246,828                  219,828
     Accrued expenses                                                       212,187                  189,370
     Mortgage payable, less current portion                               3,962,731                4,045,177
     Other note payable                                                     894,900                  894,900
                                                                      ---------------          ---------------
             Total long-term debt                                         5,570,821                5,577,023
                                                                      ---------------          ---------------

Partners' equity                                                            666,300                  893,799
                                                                      ---------------          ---------------

                                                                         $6,427,411               $6,650,085
                                                                      ===============          ===============


               See the accompanying notes tofinancial statements.
--------------------------------------------------------------------------------------------------------------
</TABLE>
                                       4

<PAGE>

<TABLE>
<CAPTION>

                             REGENCY COURT PARTNERS
                            CHFA Project No. 92-002-S
                       (A California Limited Partnership)
--------------------------------------------------------------------------------------------------------------
                      STATEMENTS OF OPERATIONS AND CHANGES
       IN PARTNERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2003
--------------------------------------------------------------------------------------------------------------





                                                                          2003                       2002
                                                                      ---------------         ----------------
<S>                                                                       <C>                 <C>
Revenue:
     Tenant rents                                                     $     607,083           $      578,821
     Rental assistance                                                      131,092                  117,227
                                                                      ---------------         ----------------
     Gross potential rents                                                  738,175                  696,048
     Excess rents                                                                 -                    2,273
     Less vacancies                                                         (12,432)                 (12,422)
                                                                      ---------------         ----------------
     Net rental income                                                      725,743                  685,899
     Laundry and vending income                                               6,500                    7,500
     Tenant charges income                                                      160                      580
     Interest income                                                          4,917                    5,241
                                                                      ---------------         ----------------
                 Total revenues                                             737,320                  699,220
                                                                      ---------------         ----------------

Expenses:
     Payroll and related costs                                              102,653                   89,113
     Administrative                                                          85,493                   82,529
     Utilities                                                               67,471                   61,682
     Operating and maintenance                                              106,225                   63,256
     Insurance and taxes                                                     93,540                   48,366
     Interest                                                               306,542                  311,656
     Depreciation and amortization                                          202,895                  202,895
                                                                      ---------------         ----------------
                 Total expenses                                             964,819                  859,497
                                                                      ---------------         ----------------

Net loss before extraordinary item                                         (227,499)                (160,277)

Extraordinary item - reduction of
     prior years property tax accrual                                             -                   85,605
                                                                      ---------------         ----------------

Net Loss                                                                   (227,499)                 (74,672)

Partners' equity - beginning                                                893,799                  968,471
                                                                      ---------------         ----------------
Partners' equity - ending                                             $     666,300           $      893,799
                                                                      ===============         ================

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

<TABLE>
<CAPTION>

                REGENCY COURT PARTNERS CHFA Project No. 92-002-S
                    (A California Limited Partnership)
------------------------------------------------------------------------------------------------------------
                    STATEMENTS OF CHANGES IN PARTNERS' EQUITY
                 FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2003
------------------------------------------------------------------------------------------------------------





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


<S>                                   <C>                 <C>             <C>               <C>
Balance - December 31, 2001           $   729,544         $    (8,058)    $   246,985       $     968,471

Net Loss - 2002                                 -                (747)        (73,925)            (74,672)
                                      ------------        -------------   -------------     --------------

Balance - December 31, 2002               729,544              (8,805)        173,060             893,799

Net Loss - 2003                                 -              (2,275)       (225,224)           (227,499)
                                      ------------        -------------   -------------     --------------

Balance - December 31, 2003           $   729,544         $    (11,080)   $   (52,164)      $     666,300
                                      ============        =============   =============     ==============

Profit and loss percentage
           at December 31, 2003
                                                0%                   1%             99%                100%
                                     =============        =============   =============     ===============




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

<TABLE>
<CAPTION>

                             REGENCY COURT PARTNERS
                            CHFA Project No. 92-002-S
                       (A California Limited Partnership)
------------------------------------------------------------------------------------------------------------
                            STATEMENTS OF CASH FLOWS
                 FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2003
------------------------------------------------------------------------------------------------------------





                                                                           2003                     2002
                                                                      ----------------         ----------------
<S>                                                                   <C>                      <C>
Cash flows from operating activities:
Tenant rental receipts                                                $      576,787                $553,048
Rental assistance                                                            131,092                 117,227
Interest receipts                                                                199                     343
Other receipts                                                                 6,660                   8,080
Payments to suppliersand employees:
   Administrative expenses                                                   (29,121)                (30,030)
   Management fees                                                           (38,643)                (33,586)
   Utilities                                                                 (67,471)                (61,682)
   Salaries and wages                                                        (65,915)                (53,809)
   Operating and maintenance                                                (106,045)                (71,149)
   Real estate tax                                                           (13,711)                      -
   Payroll taxes                                                              (6,167)                 (5,633)
   Property insurance                                                        (39,585)                (29,838)
   Miscellaneous taxes and insurance                                         (20,776)                (14,445)
   Interest on mortgage                                                     (279,983)               (285,066)
   Tenant security deposits                                                       16                   1,160
                                                                      ----------------         ----------------
Net cash provided by operating activities                                     47,337                  94,620
                                                                      ----------------         ----------------

Cash flows from investing activities:
Deposits to reserve, including interest                                      (38,122)                (34,885)
Withdrawals from reserve                                                      51,672                  27,967
Reserve interest                                                               2,111                   4,898
Funding of other impounds - net                                               12,507                   2,712
                                                                      ----------------         ----------------
Net cash used in investing activities                                         28,168                     692
                                                                      ----------------         ----------------

Cash flow used in financing activities
Mortgage principal payments                                                  (77,002)                (71,918)
                                                                      ----------------         ----------------

Net increase (decrease) in cash                                               (1,497)                 23,394
Cash at beginning of year                                                     27,629                   4,235
                                                                      ----------------         ----------------

Cash at end of year                                                   $       26,132           $      27,629
                                                                      ================         ================








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

<TABLE>
<CAPTION>

Regency Court Partners
CHFA Project No. 92-002-S
Statements of Cash Flows, December 31, 2002 and 2003
Page 2
---------------------------------------------------------------------------------------------------------------


                           Reconciliation of Net Loss
                  to Net Cash Provided by Operating Activities



                                                                          2003                        2002
                                                                      ----------------       ------------------

<S>                                                                   <C>                    <C>
Net Loss                                                              $    (227,499)         $       (74,672)
Adjustments to reconcile net loss to net cash
     Provided by operating activities:
     Depreciation and amortization                                          202,895                  202,895
     Decrease (increase) in:
         Security deposit cash                                                 (594)                     940
         Receivables                                                         (2,350)                      41
         Prepaids                                                            (2,224)                  (3,796)
     Increase (decrease) in:
         Payables                                                               180                   (7,892)
         Security deposit liability                                             610                      220
         Accrued interest                                                    26,559                   26,590
         Other accruals                                                      53,768                   40,958
         Unearned income                                                        710                     (161)
     Reserve and impound interest earned                                     (4,718)                  (4,898)
     Extraordinary items                                                          -                  (85,605)
                                                                      ----------------       ------------------

Net cash provided by operating activities                             $      47,337                 $ 94,620
                                                                      ================       ==================






                       See the accompanying notes to financial statements.
---------------------------------------------------------------------------------------------------------------
</TABLE>
                                       8
<PAGE>


                             REGENCY COURT PARTNERS
                            CHFA Project No. 92-002-S
                       (A California Limited Partnership)
--------------------------------------------------------------------------------
                          NOTES TO FINANCIAL STATEMENTS
                               DECEMBER 31, 2003
--------------------------------------------------------------------------------


1.   ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

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

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

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

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

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





--------------------------------------------------------------------------------
                                       9

<PAGE>


Regency Court Partners
CHFA Project No. 92-002-S
Notes to Financial Statements, December 31, 2003
Page 2
--------------------------------------------------------------------------------


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

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

2.   GOING CONCERN AND PROPERTY TAX LIABILITY

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

     The  Partnership  has  applied  for  property  tax  exemption,   under  the
     California welfare organization exemption,  for 1999 and 1998 property tax.
     The  Partnership  has also  requested  that  property  taxes from June 1995
     through  December 1997, be abated.  The  Partnership  believes that it will
     receive the abatement for 1999, 1998 and future taxes due to the non-profit
     status of its general partner.  In addition,  the Partnership is optimistic
     about  receiving  an abatement  for the property  taxes for the period June
     1995 through  December 1997, as it had a non-profit  general partner during
     that time period.  Communications  with governmental  authorities  indicate
     application processing is three to five years behind. However,  authorities
     state that tax exemption will likely be granted.

     These  financial  statements  reflect  a  long-term  accrued  property  tax
     liability  of $254,175 as of December 31, 2003 for unpaid  property  taxes.
     The  liability  is expected to be reduced  when future tax  exemptions  are
     received. However, cash generated from the Partnership's operations has not
     been sufficient enough to pay such tax liability.

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




--------------------------------------------------------------------------------
                                       10
<PAGE>


Regency Court Partners
CHFA Project No. 92-002-S
Notes to Financial Statements, December 31, 2003
Page 3
--------------------------------------------------------------------------------


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

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

3.   EXTRAORDINARY ITEMS

     During 2002, the partnership  received  adjusted property tax bills for the
     periods  1998-1999  through  2001-2002.  The  portion of the tax bill which
     relates  to voted  indebtedness  and  which  will not be  abated is due and
     payable,  and  accordingly  has been set up as a  current  liability.  That
     portion  related to the  general  tax levy on  property  is  expected to be
     exempted under the California welfare organization exemption,  and has been
     classified as a long-term  debt until receipt of the  exemption.  The books
     have been adjusted $85,605 to reflect the new tax bills.  This reduction to
     the accrued tax liability has been treated as an extraordinary item.

4.   RESTRICTED FUNDS

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











--------------------------------------------------------------------------------
                                       11
<PAGE>


Regency Court Partners
CHFA Project No. 92-002-S
Notes to Financial Statements, December 31, 2003
Page 4
--------------------------------------------------------------------------------


5.   MORTGAGE PAYABLE


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

     California  Housing  Finance Agency 6.85% real estate  mortgage  payable in
     monthly installments of $29,749,  including interest.  Final payment is due
     in the year 2025. The mortgage may not be paid in advance without  approval
     of CHFA,  nor may the  building be sold,  demolished  or  alterations  made
     without CHFA's prior approval.                                                     $4,045,177


     Less current portion                                                                  (82,446)
                                                                                        -----------
                                                                                        $3,962,731
                                                                                        ===========

Principal amounts maturing for the next five years are:

         2004              $82,446
         2005               88,274
         2006               94,514
         2007              101,196
         2008              108,349

6.   OTHER NOTE PAYABLE

     Community   Development   Commission,   County  of  Los  Angeles  (CDC)  3%
     construction   loan  secured  by  second   trust  deed  on  buildings   and
     improvements.  Payments made to the extent there are residual receipts.  In
     the event that  residual  rental  receipts are  available in any year,  70%
     thereof  shall  be paid to the  holder  of the  construction  loan  and the
     remaining  30% balance will be paid to the CDC as rent on the ground lease.
     Upon payment of $750,000 of the outstanding  balance,  3.4% of the residual
     rental  receipts  shall be paid to the CDC as repayment  of  principal  and
     interest  All  unpaid  amounts  will be due and  payable  in the year  202.
     Accrued interest is $246,828 at December 31, 2003.                                 $ 894,900
</TABLE>







--------------------------------------------------------------------------------
                                       12
<PAGE>


Regency Court Partners
CHFA Project No. 92-002-S
Notes to Financial Statements, December 31, 2003
Page 5
--------------------------------------------------------------------------------


7.   RELATED PARTY TRANSACTIONS

     The Regulatory  Agreement with CHFA limits the maximum annual distributions
     to  partners.  Such  distributions  are payable  only from surplus cash (as
     defined),  but accumulate and may be distributed to the extent surplus cash
     is  generated  from future  operations.  No surplus  cash was  available at
     December 31, 2003 and 2002.

     Capital Contributions: The limited partner, WNC Housing Tax Credit Fund IV,
     L.P.  Series  I, a 99%  limited  partner,  is  required  to make a  capital
     contribution  of  $1,691,585,  in  amounts  and at times as  stated  in the
     Limited Partnership Agreement. The limited partner's cash contributions may
     be reduced to account for reduced tax benefits,  if any. As of December 31,
     2003, the limited partner has contributed $1,641,782.

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

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

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

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

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

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

     A monthly asset management fed is payable to the general  partner.  Fees of
     $22,817 and $22,370 were incurred for the years 2003 and 2002 respectively.

     An affiliate  of the former  general  partner  provided  previous  property
     management  services  to the  Partnership.  Included in  long-term  accrued
     expenses  at  December  31,  2003  and  December  31,  2002 is  $$8,000  of
     management fees payable to such entity.





--------------------------------------------------------------------------------
                                       13
<PAGE>


Regency Court Partners
CHFA Project No. 92-002-S
Notes to Financial Statements, December 31, 2003
Page 6
--------------------------------------------------------------------------------



     An affiliate of the limited partner provides property  management  services
     to the Partnership.  Property  management fees were $35,780 and $33,926 for
     the years 2003 and 2002, respectively.

8.   COMMITMENTS AND CONTINGENCIES

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

     Ground Lease: On January 4, 1994, the  Partnership  executed a Ground Lease
     Agreement with the CDC.  Future minimum rental payments on the ground lease
     are based on 30% of residual rental receipts,  as defined, and will be paid
     annually  through  2049.  No  payments  were made  during  the years  ended
     December 31, 2003 and 2002.

9.   CURRENT VULNERABILITY WE TO CERTAIN CONCENTRATIONS

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












--------------------------------------------------------------------------------
                                       14
<PAGE>



















                            SUPPLEMENTARY INFORMATION













































<PAGE>

<TABLE>
<CAPTION>

                           REGENCY COURT PARTNERSCHFA
                              Project No. 92-002-S
                       (A California Limited Partnership)
--------------------------------------------------------------------------------------------------------------
                        SUPPLEMENTAL SCHEDULE OF EXPENSES
                  FOR THE YEAR ENDED DECEMBER 31, 2002 and 2003
--------------------------------------------------------------------------------------------------------------
                                                                        2003                      2002
                                                                    ----------------          ----------------
<S>                                                                 <C>                       <C>
On-site manager salary                                              $       24,816            $       23,646
Office salaries                                                             10,434                    10,238
Maintenance salaries                                                        27,604                    22,986
Payroll taxes and workers' compensation                                     17,115                    11,779
Employee benefits                                                            6,460                     4,960
Employee rent-free apartment                                                16,224                    15,504
                                                                    ----------------          ----------------
        Subtotal payroll and related expenses                              102,653                    89,113
                                                                    ----------------          ----------------

Advertising                                                                    412                       302
Renting expenses                                                             1,458                       229
Office expenses                                                              2,749                     2,931
Management fee                                                              35,780                    33,925
Asset management fee                                                        22,817                    22,370
Legal                                                                            -                         -
Audit fee                                                                    5,700                     5,300
Telephone                                                                    3,982                     3,753
Educational and social programs                                             11,520                    11,520
Miscellaneous administrative                                                 1,075                     2,199
                                                                    ----------------          ----------------
        Subtotal administrative expenses,                                   85,493                    82,529
                                                                    ----------------          ----------------

Electricity                                                                 17,282                    19,723
Water and Sewer                                                             27,532                    25,565
Gas utilities                                                               22,657                    16,394
                                                                    ----------------          ----------------
        Subtotal utilities expenses                                         67,471                    61,682
                                                                    ----------------          ----------------

Maintenance supplies                                                         9,024                     7,226
Maintenance supplies - replacement reserve                                  53,804                    25,154
Grounds supplies                                                               468                        62
Contract maintenance and repairs                                             6,416                     4,458
Grounds contract                                                            11,524                     9,751
Exterminating                                                                1,730                     1,540
Trash removal                                                                6,686                     5,158
Heating repair                                                               6,542                     1,789
Decorating and painting                                                      7,325                     4,570
Miscellaneous operating and maintenance                                      2,706                     3,548
                                                                    ----------------          ----------------
        Subtotal operating and maintenance expenses                        106,225                    63,256
                                                                    ----------------          ----------------

Property and comprehensive insurance                                        26,197                    19,734
Earthquake insurance                                                        13,388                    10,105
Property taxes                                                              50,587                    15,187
Miscellaneous taxes and licenses                                             3,368                     3,340
                                                                    ----------------          ----------------
        Subtotal insurance and taxes                                        93,540                    48,366
                                                                    ----------------          ----------------

Interest                                                                   306,542                   311,656
                                                                    ----------------          ----------------

Depreciation and amortization                                              202,895                   202,895
                                                                    ----------------          ----------------

    Total operating and maintenance expenses                        $      964,819            $      859,497
                                                                    ================          ================

--------------------------------------------------------------------------------------------------------------
</TABLE>
                                       15


<PAGE>


                           REGENCY COURT PARTNERSCHFA
                              Project No. 92-002-S
                       (A California Limited Partnership)
--------------------------------------------------------------------------------
                       SUPPLEMENTAL DATA REQUIRED BY CHFA
                         FOR THE YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------------

 2003 CASH ON HAND AND IN BANKS
 ---
     Unrestricted accounts:
         Cash on hand                                                 $      300
          Checking account                                                 3,594
          Operating deposit                                                1,700
          Operating savings                                               20,538
                                                                      ----------
     Balance, December 31, 2003                                          $26,132
                                                                      ----------

     Restricted accounts:
          Tenant security deposits - checking                         $    3,512
          Tenant security deposits - savings                              21,785
                                                                      ----------
     Balance, December 31, 2003                                       $   25,297
                                                                      ----------

     Tenant security deposits are held in a separate  federally insured interest
     bearing bank account in the name of Regency Court Partners. Interest earned
     is retained for project  operations.  The balance of the  Security  Deposit
     account is more than the liability for security deposits.

ACCOUNTS RECEIVABLE

     Accounts receivable at December 31, 2003 consists of $1,740 due from
     tenants, of which $1,160 is past due.

MORTGAGE IMPOUND ACCOUNTS
<TABLE>
<CAPTION>
                                                                            Property       Earthquake
                                                             Taxes          Insurance      Insurance

<S>                                                       <C>               <C>             <C>
    Balance, December 2002                                $ 56,381          $  15,438       $  15,646
    Transfers                                              ( 1,600)                             1,600
    Insurance deposits (4 x 2,585)                               -             10,340               -
    Insurance deposits (8 x 2,160)                               -             17,280               -
    Insurance deposits (5 x 980)                                 -                  -           4,900
    Insurance deposits (7 x 1,205)                               -                  -           8,435
    Tax or insurance payments                              (13,710)           (26,949)        (12,541)
    Interest earned                                              -              1,607               -
                                                          ---------         ----------      -----------

    Balance, December 31, 2003                            $ 41,071          $  17,716       $  18,040
                                                          =========         ==========      ===========






-------------------------------------------------------------------------------------------------------
</TABLE>
                                       16
<PAGE>

<TABLE>
<CAPTION>

Regency Court Partners
CHFA Project No. 92-002-S
Supplemental Data Required by CHFA, December 31, 2003
Page 2
------------------------------------------------------------------------------------------------------------

RESERVE FOR REPLACEMENTS

In   accordance with the provisions of the Regulatory Agreement, restricted cash
     and investments are held by the California Housing Finance Agency to be
     used for replacements of property with the approval of CHFA as follows:

     Balance December 31, 2002                                           112,546
         Monthly deposits                                                 33,000
         Interest earned to December 31, 2003                              2,372
         Withdrawals                                                    (48,922)
                                                                  --------------
     Balance confirmed by mortgagee - December 31, 2003                 $ 98,996
                                                                  ==============
BUILDINGS AND IMPROVEMENTS
                                                        Buildings and
                                                         Improvements     Equipment            Total
<S>                                                       <C>             <C>                 <C>
    Balance, January 1                                    $ 7,703,983     $       3,572      $  7,707,555
    Additions                                                       -                 -                 -
                                                          ------------    ---------------    --------------

    Balance, December 31                                    7,703,983             3,572         7,707,555

    Less accumulated depreciation                          (1,589,095)           (3,572)       (1,592,667)
                                                          ------------    ---------------    --------------

    Net                                                   $ 6,114,888     $           -      $ 60,114,888
                                                          ============    ===============    ==============

ACCOUNTS PAYABLE AND ACCRUED EXPENSES

     Accounts  payable are payable to suppliers  and are being paid on a current
     basis.  Non-current accrued expenses at December 31, 2003 and 2002 includes
     amounts payable to Alken  Management  Company ($88,000 for prior management
     services)  and the Los  Angeles  County  Sanitation  ($79,000  for  initial
     hook-up  fees).  As of December  31, 2003 there has been no  resolution  to
     these accrued expenses.

GROSS POTENTIAL RENTS

    Gross potential rent includes:
        Tenant rental payments                                          $578,427
         Housing assistance payments                                     131,092
         Manager's rent-free apartment                                    16,224
         Vacancy loss                                                     12,432
         Excess assistance payments                                            -
                                                                    ------------
                Total gross potential rent                              $738,175
                                                                    ============

------------------------------------------------------------------------------------------------------------
                                       17
</TABLE>




<PAGE>

<TABLE>
<CAPTION>
Regency Court Partners
CHFA Project No. 92-002-S
Supplemental Data Required by CHFA, December 31, 2003
Page 3
--------------------------------------------------------------------------------------------


MANAGEMENT FEE

     The  management  fee has been  calculated at 5% of collected  rental income
     amounting to $35,780. In addition is a general partner asset management fee
     of $22,817.

SURPLUS CASH COMPUTATION

<S>                                                                        <C>
     Add:
         Cash on hand and in banks                                         $     26,132
         Other receivables                                                        2,420
         Tenant security deposits                                                25,297
                                                                           -----------------
              Total                                                              53,849
                                                                           -----------------

     Less current obligations:
         Accounts payable and accrued expenses
         (due within 30 days)                                                         -
         Tenant security deposits                                                25,067
         Accrued interest                                                        23,090
         Prepaid revenue                                                            791
                                                                           -----------------
             Total                                                               48,948
                                                                           -----------------

     Surplus cash (deficiency), end of year                                $      4,901
                                                                           =================

     Current year owner distribution allowed under
         the Regulatory Agreement with CHFA                                $          -
                                                                           =================
ACCUMULATED LIMITED DISTRIBUTIONS

     There are no allowable accumulated distributions at December 31, 2003.





--------------------------------------------------------------------------------------------
</TABLE>

                                       18
<PAGE>


1730 Havens Point Place
Carlsbad, California 92008-3611
                                                             Jack Gilk
Telephone: 760.434.8845
Facsimile: 760.434.8865
Email: jack@gilkcpa.com                              Certified Public Accountant



Partners
Regency Court Partners
Costa Mesa, California


             INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROLS OVER
          FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS
           PERFOMRED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS


     I have  audited the  financial  statements  of Regency  Court  Partners,  a
California  Limited  Partnership  (CHFA Project No.  92-002-S) as of and for the
year ended  December 31, 2003,  and have issued my report  thereon dated January
19, 2004, which contains an explanatory  paragraph  regarding the  Partnership's
ability to continue as a going concern.  I conducted my audit in accordance with
auditing  standards  generally  accepted  in the United  States  and  Government
Auditing  Standards,  issued by the  Comptroller  General of the United  States.
Those standards  require that I plan arid perform the audit to obtain reasonable
assurance   about  whether  the  financial   statements  are  free  of  material
misstatement.

     The  management  of  the  Project  is  responsible  for   establishing  and
maintaining an internal control  structure.  In fulfilling this  responsibility,
estimates  and  judgments  by  management  are  required to assess the  expected
benefits  and  related  costs  of  internal  control   structure   policies  and
procedures.  The  objectives  of an internal  control  structure  are to provide
management  with  reasonable,  but  not  absolute,  assurance  that  assets  are
safeguarded against loss from unauthorized use or disposition, that transactions
are executed in accordance with management  authorization  and recorded properly
to permit the preparation of financial  statements in accordance with accounting
principles  generally accepted in the United States, and that the state-assisted
program is managed in compliance with applicable laws and  regulations.  Because
of  inherent   limitations   in  any   internal   control   structure,   errors,
irregularities,  or instances of noncompliance may nevertheless occur and not be
detected.  Also, projection of any evaluation of the structure to future periods
is subject to the risk that procedures ma become  inadequate  because of changes
in conditions or that the  effectiveness of the design and operation of policies
and procedures may deteriorate.

     In planning and performing my audit for the year ended December 31, 2003, I
obtained an understanding of the design of relevant  internal control  structure
policies  and  procedures  and  determined  whether  they  had  been  placed  in
operation,  and I  assessed  control  risk in order  to  determine  my  auditing
procedures  for the purpose of  expressing  my opinions on the  Project's  basic
financial statements and on its compliance with specific requirements applicable
to its major state-assisted program and not to provide assurance on the internal
control structure.



--------------------------------------------------------------------------------
                                       19
<PAGE>


Regency Court Partners
CHFA Project No. 92-002-S
Independent Auditor's Report on Internal Controls, December 31, 2003
Page 2
--------------------------------------------------------------------------------


     I performed tests of controls to evaluate the  effectiveness  of the design
and  operation of internal  control  structure  policies and  procedures  that I
considered  relevant to  preventing  or detecting  material  noncompliance  with
specific  requirements  applicable to the Project's  state-assisted  program. My
procedures  were less in scope than would be  necessary  to render an opinion on
internal control structure policy and procedures.  Accordingly, I do not express
such an opinion.

     My consideration  of the internal  control  structure would not necessarily
disclose all matters in the internal  control  structure  that might be material
weaknesses  under standards  established by the American  Institute of Certified
Public Accountants.  A material weakness is a reportable  condition in which the
design or operation of one or more of the internal  control  structure  elements
does not reduce to a relatively low level the risk that errors or irregularities
in amounts that would he material in relation to the financial  statements being
audited or that  noncompliance  with laws and regulations that would be material
to a state-assisted program may occur and not be detected within a timely period
by employees in the normal  course of performing  their  assigned  functions.  I
noted no matters  involving the internal  control  structure and its  operations
that I consider to be material weaknesses as defined above.

     This  report  is  intended  solely  for he  information  of  the  partners,
management and their staff, and the California Housing Finance Agency and is not
intended  to be and  should not be used by anyone  other  than  these  specified
parties.


                                                            /s/Jack Gilk

January 19, 2004
                                                              33-0724657








--------------------------------------------------------------------------------
                                       20
<PAGE>


1730 Havens Point Place
Carlsbad, California 92008-3611

                                                               Jack Gilk
Telephone: 760.434.8845
Facsimile: 760.434.8865
Email: jack@gilkcpa.com                              Certified Public Accountant


 Partners
 Regency Court Partners
 Costa Mesa, California


              INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH LAWS
            AND REGULATIONS BASED N AN AUDIT OF FINANCIAL STATEMENTS
           PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

     I have  audited the  financial  statements  of Regency  Court  Partners,  a
California  Limited  Partnership  (CHFA Project No.  92-002-S) as of and for the
year ended  December 31, 2003,  and have issued my report  thereon dated January
19, 2004 which contains an  explanatory  paragraph  regarding the  Partnership's
ability to continue as a going concern.  I conducted my audit in accordance with
auditing  standards  generally  accepted  in the United  States  and  Government
Auditing  Standards,  issued by the  Comptroller  General of the United  States.
Those standards  require that I plan and perform the audit to obtain  reasonable
assurance   about   whether  the   financial   statement  re  free  of  material
misstatement.

     Compliance with laws,  regulations and contracts  applicable to the project
is the  responsibility  of the  project's  manager  nt.  As  part  of  obtaining
reasonable assurance about whether the financial statements are free of material
misstatement,  I  performed  tests  of the  project's  compliance  with  certain
provisions of laws, regulations and contracts.  However, my objective was not to
provide an opinion on overall compliance with such provisions. Accordingly, I do
not express such an opinion.

     I also considered  those compliance  matters  comprehended in theCalifornia
Housing  Finance  Agency  "Audited  Financial  Statements   Handbook."  (Revised
December 1991)

     The results of my tests of compliance  indicate  that,  with respect to the
items  tested,  the  project  complied,  in  all  material  respects,  with  the
provisions  referred to in the second and third paragraphs of this report.  With
respect to items not  tested,  nothing  came to my  attention  that caused me to
believe that the project had not complied, in all material respects,  with those
provisions.

     This  report  is  intended  solely  for the  information  of the  partners,
management and their staff, and the California Housing Finance Agency and is not
intended  to be and  should not be used by anyone  other  than  these  specified
parties.


                                                            /s/ Jack Gilk

January 19, 2004
                                                              33-0724657






--------------------------------------------------------------------------------
                                       21
<PAGE>


                             REGENCY COURT PARTNERS
                            CHFA Project No. 92-002-S
                       (A California Limited Partnership)
 -------------------------------------------------------------------------------
               CERTIFICATION OF GENERAL PARTNER, DECEMBER 31, 2003
 -------------------------------------------------------------------------------



     We  hereby  certify  that  we  have  examined  the  accompanying  financial
statements and  supplemental  data of Regency Court  Partners,  CHFA Project No.
92-002-S and, to the best of our knowledge and belief,  the same is complete and
accurate.



                                                     Officers:



                                                     ---------------     -------
                                                          (signature)     (date)


                                                     ---------------     -------
                                                          (signature)     (date)

                                                     TIN: 95-4409236





























--------------------------------------------------------------------------------
                                       22