FORM 10-K

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   (Mark One)

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

                    For the fiscal year ended _______________

                                       OR

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

        For the transition period from January 1, 1999 to March 31, 1999

                         Commission file number: 0-28370


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

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


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

                                 (714) 662-5565

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

                                      NONE

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

                      UNITS OF LIMITED PARTNERSHIP INTEREST

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

Indicate by check mark if disclosure of delinquent  filers  pursuant to Item 405
of Regulation  S-K is not contained  herein,  and will not be contained,  to the
best of registrant's  knowledge,  in definitive proxy or information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. 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 2 (the  "Partnership")  is a
California Limited  Partnership formed under the laws of the State of California
on September 27, 1993. The Partnership was formed to acquire limited partnership
interests in other limited  partnerships or limited liability  companies ("Local
Limited Partnerships") which own multifamily housing complexes that are eligible
for low-income housing federal and, in some cases, California income tax credits
(the "Low Income Housing Credit").

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

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

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

Description of Business

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

In general,  in order to avoid  recapture  of Low Income  Housing  Credits,  the
Partnership  does not  expect  that it will  dispose of its  interests  in Local
Limited Partnerships ("Local Limited Partnership Interests") or approve the sale
by any Local Limited  Partnership of its Housing Complex prior to the end of the
applicable  Compliance  Period.  Because  of  (i)  the  nature  of  the  Housing
Complexes,  (ii) the  difficulty of predicting  the resale market for low-income
housing  15 or more years in the  future,  and (iii) the  ability of  government
lenders to  disapprove  of transfer,  it is not possible at this time to predict
whether the liquidation of the  Partnership's  assets and the disposition of the
proceeds,  if any, in  accordance  with the  Partnership's  Agreement of Limited
Partnership,   as  amended  by  Supplements  to  the  Prospectus   thereto  (the
"Partnership Agreement"), will be able to be accomplished promptly at the end of
the 15-year period. If a Local Limited Partnership is unable to sell its Housing
Complex,  it is  anticipated  that the local  general  partner  ("Local  General
Partner")  will either  continue to operate  such  Housing  Complex or take such
other actions as the Local General  Partner  believes to be in the best interest
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, 1999, the Partnership  had invested in twenty-two  Local Limited
Partnerships.  Each of these Local Limited  Partnerships  owns a Housing Complex
that is eligible  for the  federal  Low Income  Housing  Credit.  Certain  Local
Limited Partnerships may also benefit from government programs promoting low- or
moderate-income housing.

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

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

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

Item 2.  Properties

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


                                       4




<PAGE>
<TABLE>
<CAPTION>

                                                         -----------------------------  --------------------------------------------
                                                              As of March 31, 1999                As of December 31, 1998
                                                         -----------------------------  --------------------------------------------
                                                        Partnership's                                                   Encumbrances
                                                        Total Investment  Amount of                      Estimated Low  of Local
                                      General Partner   in Local Limited  Investment    Number    Occu-  Income Housing Limited
Partnership Name        Location      Name              Partnerships      Paid to Date  of Units  pancy  Credits        Partnerships
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                          <C>         <C>            <C>         <C>    <C>          <C>
Apartment Housing of    East          Apartment Developers
East Brewton, Ltd.      Brewton,      Inc. and Thomas H.
                        Alabama       Cooksey                $ 1,255,000 $   941,000     40          0%    No Form 8609 $  1,011,000

Autumn Trace            Silsbee,      Olsen Securities Corp.     412,000     412,000     58        100%    $    714,000    1,269,000
Associates, Ltd.        Texas

Broken Bow Apartments   Broken Bow,   Retro Development,
I, Limited Partnership  Nebraska      Inc.                       608,000     546,000     16         88%       1,127,000      750,000

Candleridge Apartments  Waukee,       Eric A. Sheldahl           125,000     125,000     23        100%         230,000      685,000
of Waukee L.P. II       Iowa

Chadwick Limited        Edan, North   Boyd Management, Inc.
Partnership             Carolina      Gordon L. Blackwell
                                      and Regency
                                      Investment Associates      378,000     378,000     48        100%         735,000    1,571,000

Comanche Retirement     Comanche,     Max L. Rightmer            136,000     136,000     22         92%         265,000      594,000
Village, Ltd.           Texas

Crossings II Limited    Portage,      Raymond T. Cato, Jr.       432,000     432,000    114         81%         739,000    6,074,000
Dividend Housing        Michigan
Association Limited
Partnership

EW, a Wisconsin         Evansville,   Philip Wallis, James
Limited Partnership     Wisconson     Poehlman, Cynthia
                                      Solfest Wallis, and
                                      Anita Poehlman             164,000     164,000     16        100%         306,000      628,000
</TABLE>
                                       5
<PAGE>
<TABLE>
<CAPTION>

                                                         -----------------------------  --------------------------------------------
                                                              As of March 31, 1999                As of December 31, 1998
                                                         -----------------------------  --------------------------------------------
                                                        Partnership's                                                   Encumbrances
                                                        Total Investment  Amount of                      Estimated Low  of Local
                                      General Partner   in Local Limited  Investment    Number    Occu-  Income Housing Limited
Partnership Name        Location      Name              Partnerships      Paid to Date  of Units  pancy  Credits        Partnerships
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                           <C>         <C>            <C>       <C>        <C>          <C>
Garland Street Limited  Malvarn,      Conrad L. Beggs,
Partnership             Arkansas      Audrey D. Beggs,
                                      Russell J. Altizer,
                                      and Marjorie L. Beggs     164,000     164,000      18        100%         319,000      699,000

Hereford Seniors        Hereford,     Winston Sullivan          167,000     167,000      28         96%         330,000      804,000
Community, Ltd.         Texas

Hickory Lane            Newton,       Olsen Securities Corp.    174,000     174,000      24         98%         320,000     597,000
Associates, Ltd         Texas

Honeysuckle Court       Vidor,        Olsen Securities Corp     339,000     339,000      48        100%         622,000    1,168,000
Associates, Ltd.        Texas

Klimpel Manor, Ltd      Fullerton,    Klimpel Manor
                        California    Apartments              1,774,000   1,774,000      59         96%       3,360,000    1,984,000

Lamesa Seniors          Lamesa,       Winston Sullivan          143,000     143,000      24         98%         284,000      675,000
Community, Ltd.         Texas

Laredo Heights          Navasota,     Donald W. Sowell          225,000     225,000      48         96%         413,000    1,001,000
Apartments Ltd.         Texas

Mountainview            North         John C. Loving and
Apartments Limited      Wilkesboro,   Gordon D. Brown, Jr.      195,000     195,000      24        100%         387,000    1,002,000
Partnership             North
                        Carolina

Palestine Seniors       Palestine,    Winston Sullivan          225,000     225,000      42        100%         446,000    1,132,000
Community, Ltd.         Texas

Pecan Grove Limited     Forrest       Conrad Beggs, Audrey
Partnership             City,         Beggs and Russell
                        Arkansas      Altizer                   240,000     240,000      32         98%         486,000    1,118,000
</TABLE>
                                       6
<PAGE>
<TABLE>
<CAPTION>

                                                         -----------------------------  --------------------------------------------
                                                              As of March 31, 1999                  As of December 31, 1998
                                                         -----------------------------  --------------------------------------------
                                                        Partnership's                                                   Encumbrances
                                                        Total Investment  Amount of                      Estimated Low  of Local
                                      General Partner   in Local Limited  Investment    Number    Occu-  Income Housing Limited
Partnership Name        Location      Name              Partnerships      Paid to Date  of Units  pancy  Credits        Partnerships
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                         <C>          <C>             <C>        <C>   <C>           <C>
Pioneer Street          Bakersfield,  Philip R. Hammond,
Associates              California    Jr. and Walter A.
                                      Dwelle                   2,222,000   2,222,000     112        78%       4,116,000    1,903,000

Sidney Apartments I,    Sidney,       Retro Development,
Limited Partnership     Nebraska      Inc.  And Most
                                      Worshipful Prince
                                      Hall Grand Lodge           530,000     484,000      18       100%    No Form 8609      444,000

Southcove Associates    Orange Cove,  Philip R. Hammond,       2,000,000   2,000,000      54       100%       3,585,000    1,538,000
                        Califonia     Jr. and Diane M.
                                      Hammond

Walnut Turn             Buna,         Olsen Securities Corp.     188,000     188,000      24       100%         344,000      692,000
Associates, Ltd.        Texas                                 ----------  ----------     ---       ----      ----------   ----------
                                                            $ 12,096,000 $11,674,000     892        92%    $ 19,128,000 $ 27,339,000
                                                              ==========  ==========     ===       ====      ==========   ==========

</TABLE>

                                       7



<PAGE>
<TABLE>
<CAPTION>
                                            -----------------------------------------------------------------------
                                                               For the year ended December 31, 1998
                                            -----------------------------------------------------------------------
                                                                                        Low Income Housing Credits
Partnership Name                            Rental Income               Net loss        Allocated to Partnership
--------------------------------------------------------------------------------------------------------------------
<S>                                         <C>                     <C>                                   <C>
Apartment Housing of East
Brewton, Ltd.                               $         -             $          -                          98.99%

Autumn Trace Associates, Ltd.                    206,000                 (43,000)                         95.00%

Broken Bow Apartments I,
Limited Partnership                               39,000                (117,000)                         99.00%

Candleridge Apartments of
Waukee L.P. II                                   116,000                  (8,000)                         99.00%

Chadwick Limited Partnership                     188,000                 (18,000)                         99.00%

Comanche Retirement Village,
Ltd.                                              63,000                 (21,000)                         99.00%

Crossings II Limited Dividend
Housing Association Limited
Partnership                                      692,000                 (19,000)                         98.99%

EW, a Wisconsin Limited
Partnership                                      105,000                 (20,000)                         99.00%

Garland Street Limited
Partnership                                       66,000                 (26,000)                         99.00%

Hereford Seniors Community,
Ltd.                                              89,000                  (7,000)                         99.00%

Hickory Lane Associates, Ltd                      81,000                 (13,000)                         99.00%

Honeysuckle Court Associates,
Ltd.                                             191,000                 (18,000)                         95.00%

Klimpel Manor, Ltd                               344,000                 (85,000)                         96.00%

</TABLE>
                                       8
<PAGE>

<TABLE>
<CAPTION>
                                            -----------------------------------------------------------------------
                                                               For the year ended December 31, 1998
                                            -----------------------------------------------------------------------
                                                                                        Low Income Housing Credits
Partnership Name                            Rental Income               Net loss        Allocated to Partnership
--------------------------------------------------------------------------------------------------------------------
<S>                                         <C>                     <C>                                   <C>
Lamesa Seniors Community, Ltd.                    84,000                  (8,000)                         99.00%

Laredo Heights Apartments Ltd.                   166,000                  (9,000)                         99.00%

Mountainview Apartments
Limited Partnership                               90,000                 (11,000)                         99.00%

Palestine Seniors Community,
Ltd.                                             135,000                  (1,000)                         99.00%

Pecan Grove Limited Partnership                  114,000                 (46,000)                         99.00%

Pioneer Street Associates                        507,000                 (37,000)                         99.00%

Sidney Apartments I, Limited
Partnership                                       77,000                 (42,000)                         99.00%

Southcove Associates                             218,000                (102,000)                         99.00%

Walnut Turn Associates, Ltd.                     129,000                 (17,000)                         99.00%
                                               ---------                --------
                                            $  3,700,000            $   (668,000)
                                               =========                ========

</TABLE>





                                       9

<PAGE>
Item 3.  Legal Proceedings

NONE.

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

NONE.

PART II.

Item 5.  Market for Registrant's Common Equity 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, 1999, there were 838 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 three
     months ended March 31, 1999.

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

                               1999         1998         1998         1997         1996         1995         1994
                               ----         ----         ----         ----         ----         ----         ----
                                      (Unaudited)
ASSETS
<S>                    <C>          <C>          <C>          <C>          <C>          <C>          <C>
Cash and cash
  equivalents          $    552,348 $  1,383,197 $    738,364 $  1,480,862 $  2,371,389 $  5,285,730 $    720,130
Subscriptions
  receivable                      -            -            -            -            -            -      597,100
Investments in
  limited
  partnerships, net      10,092,782    9,510,560   10,274,595    9,738,583   10,096,100    9,417,744    6,235,586
Due from affiliate                -            -            -            -       53,200            -            -
Loans receivable                  -      259,496            -      259,496            -            -      880,760
Other assets                    998       18,796        2,534       20,245       10,956       29,568        2,128
                        -----------  -----------  -----------  -----------  -----------  -----------  -----------
                       $ 10,646,128 $ 11,172,049 $ 11,015,493 $ 11,499,186 $ 12,531,645 $ 14,733,042 $  8,435,704
                        ===========  ===========  ===========  ===========  ===========  ===========  ===========
LIABILITIES
Payables  to limited
  partnerships         $    421,025 $    275,392 $    605,517 $    411,543 $    666,716 $  2,134,797 $  3,276,750
Accrued interest
  payable                         -            -            -            -            -            -          404
Loan payable                      -            -            -            -            -            -      280,569
Accrued fees and
  expenses due to
  general partner
  and affiliates             29,722        3,195       28,066        1,137        9,339      146,685      414,501

PARTNERS' EQUITY         10,195,381   10,893,462   10,381,910   11,086,506   11,855,590   12,451,560    4,463,480
                        -----------  -----------  -----------  -----------  -----------  -----------  -----------
                       $ 10,646,128 $ 11,172,049 $ 11,015,493 $ 11,499,186 $ 12,531,645 $ 14,733,042 $  8,435,704
                        ===========  ===========  ===========  ===========  ===========  ===========  ===========
</TABLE>
                                       10

<PAGE>
Selected  results  of  operations,  cash  flows  and other  information  for the
Partnership are as follows:
<TABLE>
<CAPTION>

                           For the Three Months                           For the Years Ended
                              Ended March 31                                  December 31
                         -------------------------  ----------------------------------------------------------------
                               1999          1998         1998         1997         1996         1995         1994
                               ----          ----         ----         ----         ----         ----         ----
                                       (Unaudited)
<S>                     <C>           <C>           <C>         <C>          <C>          <C>          <C>
Income (loss) from
  operations            $   (21,846)  $    (1,492)  $  (50,484) $   (31,969) $    55,374  $    56,606  $   (25,432)
Equity in losses of
  limited
  partnerships             (164,683)     (191,552)    (658,728)    (737,115)    (628,631)    (628,521)    (239,118)
                           --------      --------     --------     --------     --------     --------     --------
Net loss                $  (186,529)  $  (193,044)  $ (709,212) $  (769,084) $  (573,257) $  (571,915) $  (264,550)
                           ========      ========     ========     ========     ========     ========     ========
Net loss allocated to:
   General partner      $    (1,865)  $    (1,930)  $   (7,092) $    (7,691) $    (5,733) $    (5,719) $    (2,646)
                           ========      ========     ========     ========     ========     ========     ========
   Limited partners     $  (184,664)  $  (191,114)  $ (702,120) $  (761,393) $  (567,524) $  (566,196) $  (261,904)
                           ========      ========     ========     ========     ========     ========     ========
Net loss per limited
  partner unit          $    (11.84)  $    (12.25)  $   (45.01) $    (48.81) $    (36.38) $    (46.90) $    (92.74)
                           ========      ========     ========     ========     ========     ========     ========
Outstanding weighted
  limited partner
  units                      15,600        15,600       15,600       15,600       15,600       12,073        2,824
                           ========      ========     ========     ========     ========     ========     ========

                          ------------------------  ----------------------------------------------------------------
                           For the Three Months                           For the Years Ended
                              Ended March 31                                  December 31
                          ------------------------  ----------------------------------------------------------------
                               1999          1998         1998         1997         1996         1995         1994
                               ----          ----         ----         ----         ----         ----         ----
                                       (Unaudited)
Net cash provided by
  (used in):
  Operating activities  $    (8,424)  $    12,245   $   26,255  $    52,765  $    60,895  $    54,970  $   (25,518)
  Investing activities     (177,592)     (109,910)    (768,753)    (935,090)  (2,837,890)  (5,315,585)  (4,655,255)
  Financing activities            -             -            -       (8,202)    (137,346)   9,826,215    5,400,903
                           --------     ---------    ---------    ---------    ---------    ---------    ---------
Net change in cash and
  cash equivalents         (186,016)      (97,665)    (742,498)    (890,527)  (2,914,341)   4,565,600      720,130

Cash and cash
  equivalents,
  beginning of period       738,364     1,480,862    1,480,862    2,371,389    5,285,730      720,130            -
                           --------     ---------    ---------    ---------    ---------    ---------    ---------
Cash and cash
  equivalents,
  end of period         $   552,348   $ 1,383,197   $  738,364  $ 1,480,862  $ 2,371,389  $ 5,285,730  $   720,130
                          =========     =========    =========    =========    =========    =========    =========

Low Income  Housing  Credit per Unit was as follows for the years ended December 31:
                               1998          1997         1996         1995         1994
                               ----          ----         ----         ----         ----
Federal                 $       124   $       113   $      105  $        76  $        29
State                             -             -            -            -            -
                             ------        ------       ------       ------       ------
Total                   $       124   $       113   $      105  $        76  $        29
                             ======        ======       ======       ======       ======
</TABLE>
                                       11



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

Financial Condition

The  Partnership's  assets at March 31, 1999 consisted  primarily of $552,348 in
cash and aggregate  investments in the twenty-two Local Limited  Partnerships of
$10,092,782.  Liabilities at March 31, 1999  primarily  consisted of $421,025 in
payables to limited  partnerships and $26,759 of accrued annual  management fees
due to the General Partner.

Results of Operations

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

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

Year Ended  December 31, 1997  Compared to Year Ended  December  31,  1996.  The
Partnership's  net loss  for 1997 was  $(769,000),  reflecting  an  increase  of
$196,000  from the net loss  experienced  in 1996.  The  increase in net loss is
primarily due to equity in losses from limited  partnerships  which increased to
$(737,000) in 1997 from  $(629,000) in 1996 and a decrease in interest income of
$88,000.

Cash Flows

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

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

                                       12
<PAGE>

Year Ended  December 31, 1997 Compared to Year Ended December 31, 1996. Net cash
used in 1997 was  $(891,000),  compared to  $(2,914,000) in 1996. The change was
due primarily to a decrease in cash used for investments in limited partnerships
of $1,876,000,  a decrease in cash paid to the General Partner and or affiliates
of  $215,000,  a decrease  in  offering  expenses  of $23,000  and a decrease in
interest  paid of $5,000,  partially  offset by a decrease  in  interest  income
received of $96,000.

During the three  months  ended March 31, 1999 and the year ended  December  31,
1998 accrued payables,  which consist primarily of related party management fees
due to the General Partner, increased by $2,000 and $27,000,  respectively.  The
General Partner does not anticipate that these accrued fees will be paid in full
until such time as capital reserves are in excess of future  forseeable  working
capital requirements of the Partnership.

The Partnership  expects its future cash flows,  together with its net available
assets at March 31, 1999,  to be  sufficient  to meet all  currently  forseeable
future cash requirements.

IMPACT OF YEAR 2000

WNC & Associates, Inc.

Status of Readiness

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

Non-IT Systems. The Partnership also relies on the non-IT systems of WNC. Non-IT
systems  include  machinery and  equipment  such as  telephones,  voice mail and
electronic  postage  equipment.  Except  for one  telephone  system,  the non-IT
systems of WNC are year 2000  compliant.  The one telephone  system will require
the replacement of one computer and one software application, both of which will
be completed on or before October 1, 1999.

Service  Providers.  WNC also  relies on the IT and  non-IT  systems  of service
providers. Service providers include utility companies,  financial institutions,
telecommunications carriers,  municipalities, and other outside vendors. WNC has
obtained verbal assurances from its material service providers (electrical power
provider,  financial institutions and telecommunications carriers) that their IT
and non-IT systems are year 2000 compliant.  There can be no assurance that this
compliance  information  is  correct.  There also can be no  assurance  that the
systems of other,  less-important  service providers and outside vendors will be
year 2000 compliant.

Costs to Address Year 2000 Issues

The cost to address  year 2000  issues for WNC has been less than  $20,000.  The
cost to replace the telephone  system noted above will be less than $5,000.  The
cost to deal with potential year 2000 issues of other outside  vendors cannot be
estimated at this time.

                                       13
<PAGE>
Risk of Year 2000 Issues

The most  reasonable and likely result from non-year 2000  compliance of systems
of the service  providers  noted above will be the disruption of normal business
operations for WNC. This disruption would, in turn, lead to delays in performing
reporting and fiduciary responsibilities on behalf of the Partnership. The worst
case scenario would be the replacement of a service provider. These delays would
likely  be  temporary  and  would  likely  not  have a  material  effect  on the
Partnership or WNC.

Local Limited Partnerships

Status of Readiness

WNC is in the  process of  obtaining  year 2000  certifications  from each Local
General Partner of each Local Limited  Partnership.  Those  certifications  will
represent  to the  Partnership  that the IT and non-IT  systems  critical to the
operation of the Housing Complexes and investor reporting to the Partnership are
year 2000 compliant. These certifications will also represent to the Partnership
that the IT and non-IT  systems of property  management  companies,  independent
accountants,    electrical   power   providers,   financial   institutions   and
telecommunications  carriers used by the Local Limited Partnership are year 2000
compliant.

There can be no assurance that the representations in the certifications will be
correct.   There  also  can  be  no   assurance   that  the  systems  of  other,
less-important  service  providers  and  outside  vendors,  upon which the Local
Limited  Partnerships  rely, will be year 2000 compliant.

Costs to Address Year 2000 Issues

There  will be no cost to the  Partnership  as a result of  assessing  year 2000
issues for the Local Limited Partnerships.  The cost to deal with potential year
2000 issues of the Local Limited Partnerships cannot be estimated at this time.

Risk of Year 2000 Issues

There may be Local  General  Partners who indicate  that they or their  property
management  company are not year 2000  compliant and do not have plans to become
year 2000  compliant  before the end of 1999.  There may be other Local  General
Partners who are  unwilling to respond to the  certification  request.  The most
likely result of either non-compliance or failure to respond will be the removal
and  replacement  of the property  management  company  and/or the Local General
Partner with year 2000 compliant operators.

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk

NOT APPLICABLE

Item 8.  Financial Statements and Supplementary Data



                                       14
<PAGE>




               Report of Independent Certified Public Accountants


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


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

We  conducted  our  audits  in  accordance  with  generally   accepted  auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We  believe  that our  audits  and the  reports  of  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 2 (a
California Limited  Partnership) as of March 31, 1999 and December 31, 1998, and
the  results of its  operations  and its cash flows for the three  months  ended
March  31,  1999 and the year  ended  December  31,  1998,  in  conformity  with
generally accepted accounting principles.




                                             /s/ BDO SEIDMAN, LLP
                                             BDO SEIDMAN, LLP

Orange County, California
July 30, 1999







                                       15
<PAGE>



                          INDEPENDENT AUDITORS' REPORT



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


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

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

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



                                                /s/ CORBIN & WERTZ
                                                CORBIN & WERTZ

Irvine, California
April 23, 1998








                                       16
<PAGE>
                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 2
                       (A California Limited Partnership)

                                 BALANCE SHEETS
<TABLE>
<CAPTION>

                                                            March 31                         December 31
                                                  ------------------------------    ------------------------------
                                                      1999             1998             1998             1997
                                                      ----             ----             ----             ----
  ASSETS                                                           (Unaudited)

<S>                                             <C>              <C>              <C>              <C>
  Cash and cash equivalents                     $      552,348   $    1,383,197   $      738,364   $    1,480,862
  Investments in limited partnerships,
    net (Note 3)                                    10,092,782        9,510,560       10,274,595        9,738,583
  Loans receivable (Note 2)                                  -          259,496                -          259,496
  Other assets                                             998           18,796            2,534           20,245
                                                   -----------      -----------      -----------      -----------
                                                $   10,646,128   $   11,172,049   $   11,015,493   $   11,499,186
                                                   ===========      ===========      ===========      ===========
  LIABILITIES AND PARTNERS' EQUITY
    (DEFICIT)

  Liabilities:
    Payables to limited partnerships (Note 5)   $      421,025   $      275,392   $      605,517   $      411,543
    Accrued fees and expenses due to General
      Partner and affiliates (Note 4)                   29,722            3,195           28,066            1,137
                                                   -----------      -----------      -----------      -----------
       Total liabilities                               450,747          278,587          633,583          412,680
                                                   -----------      -----------      -----------      -----------
  Commitments and contingencies

  Partners' equity (deficit):
    General partner                                    (50,358)         (43,377)         (48,493)         (41,447)
    Limited partners (20,000 units
      authorized; 15,600 units
      issued and outstanding)                       10,245,739       10,936,839       10,430,403       11,127,953
                                                   -----------      -----------      -----------      -----------
           Total partners' equity                   10,195,381       10,893,462       10,381,910       11,086,506
                                                   -----------      -----------      -----------      -----------
                                                $   10,646,128   $   11,172,049   $   11,015,493   $   11,499,186
                                                   ===========      ===========      ===========      ===========

</TABLE>

                 See accompanying notes to financial statements
                                       17

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

                            STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                         For the Three Months Ended
                                                  March 31                      For the Years Ended December 31
                                         ----------------------------   -------------------------------------------
                                                1999            1998           1998            1997           1996
                                                ----            ----           ----            ----           ----
                                                          (Unaudited)
<S>                                    <C>             <C>            <C>             <C>            <C>
Interest income                        $       6,850   $      21,520  $      47,017   $      74,570  $     161,610

Operating expenses:
  Amortization (Note 3)                       10,230          10,230         32,099          40,823         40,109
  Asset management fees (Note 4)              10,725          10,725         42,900          42,900         42,900
  Interest expense                                 -               -              -               -          5,350
  Other                                        7,741           2,057         22,502          22,816         17,877
                                           ---------      ----------      ---------       ---------      ---------
         Total operating expenses             28,696          23,012         97,501         106,539        106,236
                                           ---------      ----------      ---------       ---------      ---------

Income (loss) from operations                (21,846)         (1,492)       (50,484)        (31,969)        55,374

Equity in losses of limited
  partnerships (Note 3)                     (164,683)       (191,552)      (658,728)       (737,115)      (628,631)
                                           ---------      ----------      ---------       ---------      ---------
Net loss                               $    (186,529)  $    (193,044) $    (709,212)  $    (769,084) $    (573,257)
                                           =========      ==========      =========       =========      =========
Net loss allocated to:
   General partner                     $      (1,865)  $      (1,930) $      (7,092)  $      (7,691) $      (5,733)
                                           =========      ==========      =========       =========      =========
   Limited partners                    $    (184,664)  $    (191,114) $    (702,120)  $    (761,393) $    (567,524)
                                           =========      ==========      =========       =========      =========
Net loss per limited partner unit      $      (11.84)  $      (12.25) $      (45.01)  $      (48.81) $      (36.38)
                                           =========      ==========      =========       =========      =========

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

</TABLE>
                 See accompanying notes to financial statements
                                       18


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

                    STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

                  For The Three Months Ended March 31, 1999 and
              For The Years Ended December 31, 1998, 1997 and 1996


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

Partners' equity (deficit) at
  January 1, 1996                  $   (27,796)  $  12,479,356   $   12,451,560

Offering costs                            (227)        (22,486)         (22,713)

Net loss                                (5,733)       (567,524)        (573,257)
                                      --------      ----------       ----------
Partners' equity (deficit)
  at December 31, 1996                 (33,756)     11,889,346       11,855,590

Net loss                                (7,691)       (761,393)        (769,084)
                                      --------      ----------       ----------
Partners' equity (deficit)
  at December 31, 1997                 (41,447)     11,127,953       11,086,506

Offering costs                              46           4,570            4,616

Net loss                                (7,092)       (702,120)        (709,212)
                                      --------      ----------       ----------
Partners' equity (deficit)
  at December 31, 1998                 (48,493)     10,430,403       10,381,910

Net loss                                (1,865)       (184,664)        (186,529)
                                      --------      ----------       ----------
Partners' equity (deficit)
  at March 31, 1999                $   (50,358)  $  10,245,739   $   10,195,381
                                      ========      ==========       ==========






                 See accompanying notes to financial statements
                                       19



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

                            STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                        For the Three Months Ended
                                                March 31                       For the Years Ended December 31
                                       ------------------------------   --------------------------------------------

                                                1999            1998           1998            1997            1996
                                                ----            ----           ----            ----            ----
                                                          (Unaudited)
Cash flows from operating activities:
<S>                                     <C>             <C>             <C>           <C>             <C>
  Net loss                              $   (186,529)   $   (193,044)   $  (709,212)  $    (769,084)  $    (573,257)
  Adjustments to reconcile net
    loss to net cash provided
    by operating activities:
      Amortization                            10,230          10,230         32,099          40,823          40,109
      Equity in loss of limited
        partnerships                         164,683         191,552        658,728         737,115         628,631
      Change in other assets                   1,536          (9,276)        17,711           9,347          18,612
      Change in due from affiliates                -               -              -          34,564         (53,200)
      Change in accrued fees and
        expenses due to General
        Partner and affiliates                 1,656          12,783         26,929               -               -
                                          ----------      ----------     ----------      ----------      ----------
Net cash provided by (used in)
  operating Activities                        (8,424)         12,245         26,255          52,765          60,895
                                          ----------      ----------     ----------      ----------      ----------
Cash flows from investing activities:
  Investments in limited
    partnerships, net                       (184,492)       (112,860)    (1,037,700)       (674,929)     (2,793,730)
  Capitalized acquisition costs
    and fees                                       -               -           (465)         (8,278)        (25,347)
  Distributions from limited
    partnerships                               6,900           2,950          5,300           7,613           3,900
  Loans receivable                                 -               -        259,496        (259,496)              -
  Offering expenses                                -               -          4,616               -         (22,713)
                                          ----------      ----------     ----------      ----------      ----------
Net cash used in investing
  activities                                (177,592)       (109,910)      (768,753)       (935,090)     (2,837,890)
                                          ----------      ----------     ----------      ----------      ----------
Cash flows from financing activities:
  Advances due to general partner
    and affiliates                                 -               -              -          (8,202)       (137,346)
                                          ----------      ----------     ----------      ----------      ----------
Net cash used in financing
  activities                                       -               -              -          (8,202)       (137,346)
                                          ----------      ----------     ----------      ----------      ----------
Net decrease in cash and cash
  equivalents                               (186,016)        (97,665)      (742,498)       (890,527)     (2,914,341)

Cash and cash equivalents,
  beginning of period                        738,364       1,480,862      1,480,862       2,371,389       5,285,730
                                          ----------      ----------     ----------      ----------      ----------
Cash and cash equivalents, end of
  period                                $    552,348    $  1,383,197    $   738,364   $   1,480,862   $   2,371,389
                                          ==========      ==========     ==========      ==========      ==========
</TABLE>

Continued
                                       20
<PAGE>
                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 2
                       (A California Limited Partnership)

                      STATEMENTS OF CASH FLOWS - CONTINUED

<TABLE>
<CAPTION>

                                       For the Three Months Ended           For the Years Ended December 31
                                                March 31
                                       ----------------------------   --------------------------------------------
                                              1999            1998           1998            1997            1996
                                              ----            ----           ----            ----            ----
                                                        (Unaudited)
SUPPLEMENTAL DISCLOSURE
   OF CASH FLOW NFORMATION:
<S>                                  <C>             <C>            <C>             <C>           <C>
    Interest paid                    $           -   $           -  $           -   $           - $         5,350
                                       ===========     ===========    ===========     ===========     ===========

    Taxes paid                       $           -   $           -  $         800   $         800 $           800
                                       ===========     ===========    ===========     ===========     ===========
</TABLE>

  SUPPLEMENTAL DISCLOSURE OF NON-
    CASH FINANCING ACTIVITIES :

    During 1998 and 1997, the Partnership  recorded investments and payables  to
    limited partnerships of $427,483 and $225,720, respectively.

















                 See accompanying notes to financial statements
                                       21
<PAGE>
                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 2
                       (A California Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS

       For The Three Months Ended March 31, 1999 and 1998 (Unaudited) and
              For The Years Ended December 31, 1998, 1997 and 1996

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

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

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

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

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

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

Change in Reporting Year End

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

Due to the change in year end, unaudited financial information as of and for the
three months ended March 31, 1998 is included in the  financial  statements  for
comparative  purposes  only.  The  financial  statements as of and for the three
months  ended  March  31,  1998  are  unaudited  but  include  all   adjustments
(consisting  of normal  recurring  adjustments)  which  are,  in the  opinion of
management,  necessary for a fair statement of financial position and results of
operations of the Partnership for the interim period.

                                       22

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

       For The Three Months Ended March 31, 1999 and 1998 (Unaudited) and
              For The Years Ended December 31, 1998, 1997 and 1996

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued

Risks and Uncertainties

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

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

Method of Accounting For Investments in Limited Partnerships

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

Losses from Local Limited  Partnerships  for the years ended  December 31, 1998,
1997 and 1996 have been recorded by the  Partnership  based on reported  results
provided  by  the  Local  Limited   Partnerships.   Losses  from  Local  Limited
Partnerships  for the  three  months  ended  March  31,  1999 and 1998 have been
estimated  by  management  of  the   Partnership.   Losses  from  Local  Limited
Partnerships  allocated to the Partnership are not recognized to the extent that
the investment balance would be adjusted below zero.

                                       23

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

       For The Three Months Ended March 31, 1999 and 1998 (Unaudited) and
              For The Years Ended December 31, 1998, 1997 and 1996

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued

Offering Expenses

Offering  expenses consist of underwriting  commissions,  legal fees,  printing,
filing and  recordation  fees,  and other costs  incurred  with selling  limited
partnership  interests in the  Partnership.  The General Partner is obligated to
pay all  offering  and  organization  costs in  excess of 15%  (including  sales
commissions) of the total offering proceeds.  Offering expenses are reflected as
a reduction of  partners'  capital and amounted to $970,717 as of March 31, 1999
and December 31, 1998, and $975,333 as of December 30, 1997.

Use of Estimates

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

Cash and Cash Equivalents

The Partnership  considers  highly liquid  investments  with maturities of three
months or less when purchased to be cash  equivalents.  As of March 31, 1999 and
December 31, 1998 and 1997, the Partnership  had cash  equivalents of $0, $0 and
$893,070, respectively.

Concentration of Credit Risk

At March 31,  1999,  the  Partnership  maintained  a cash  balance  at a certain
financial institution in excess of the maximum federally insured amounts.

Net Loss Per Limited Partner Unit

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

Reporting Comprehensive Income

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

Reclassifications

Certain  prior  year  balances  have been  reclassified  to  conform to the 1999
presentation.


                                       24
<PAGE>
                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 2
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

       For The Three Months Ended March 31, 1999 and 1998 (Unaudited) and
              For The Years Ended December 31, 1998, 1997 and 1996

NOTE 2 - LOANS RECEIVABLE

Loans receivable  represent amounts loaned by the Partnership to certain limited
partnerships in which the Partnership may invest.  Loans receivable consisted of
one loan with a balance of  $259,496  as of  December  31,  1997 which was fully
collected in 1998 upon  finalization  of its acquisition of an interest in a new
limited partnership.

NOTE 3 - INVESTMENTS IN LIMITED PARTNERSHIPS

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

The  Partnership's  investments  in Local Limited  Partnerships  as shown in the
balance  sheets at December 31, 1998 and 1997 are  approximately  $1,493,000 and
$1,555,000,  respectively, greater than the Partnership's equity as shown in the
Local Limited Partnerships'  financial statements.  This difference is primarily
due to unrecorded losses, as discussed below,  acquisition,  selection and other
costs related to the acquisition of the investments  which have been capitalized
in the Partnership's  investment account and to capital contributions payable to
the limited  partnerships which were netted against partner capital in the Local
Limited Partnership's financial statements.

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.  During the three months ended March 31, 1999 and
the year ended  December  31,  1998,  no  investment  accounts in Local  Limited
Partnerships reached a zero balance.

Following  is a summary of the equity  method  activity  of the  investments  in
limited partnerships for the periods presented:
<TABLE>
<CAPTION>
                                                                  For the Three
                                                                  Months Ended
                                                                  March 31         For the Years Ended December 31
                                                                --------------     -------------------------------
                                                                         1999              1998             1997
                                                                --------------     -------------    -------------

<S>                                                           <C>                <C>              <C>
Investments per balance sheet, beginning of year              $    10,274,595    $    9,738,583   $   10,096,100
Tax credit adjustment                                                       -           (23,291)               -
Capital contributions to limited partnerships, net                          -           827,482          194,036
Capital contributions to be paid                                            -           427,483          225,720
Capitalized acquisition fees and costs                                      -               465            8,278
Distributions received                                                 (6,900)           (5,300)          (7,613)
Equity in losses of limited partnerships                             (164,683)         (658,728)        (737,115)
Amortization of paid acquisition fees and costs                       (10,230)          (32,099)         (40,823)
                                                                   ----------        ----------       ----------

Investments per balance sheet, end of period                  $    10,092,782    $   10,274,595   $    9,738,583
                                                                   ==========        ==========       ==========
</TABLE>
                                       25
<PAGE>
                 WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 2
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

       For The Three Months Ended March 31, 1999 and 1998 (Unaudited) and
              For The Years Ended December 31, 1998, 1997 and 1996

NOTE 3 - INVESTMENTS IN LIMITED PARTNERSHIPS

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

                        COMBINED CONDENSED BALANCE SHEETS

                                                        1998              1997
                                                        ----              ----
ASSETS

Buildings, net of accumulated
  amortization of $4,330,000 and
  $3,095,000 as of December 1998
  and 1997, respectively                    $     33,328,000  $     34,598,000
Land                                               1,631,000         1,565,000
Construction in progress                           1,895,000                 -
Due from affiliates                                  299,000           669,000
Other assets                                       2,140,000         1,488,000
                                                 -----------       -----------
                                            $     39,293,000  $     38,320,000
                                                 ===========       ===========
LIABILITIES

Construction and mortgage loans payable     $     27,339,000  $     26,605,000
Other liabilities (including amounts
  due to related parties of $1,032,000
  and $1,307,000 as of December 31,
  1998 and 1997, respectively)                     1,757,000         2,061,000
                                                 -----------       -----------
                                                  29,096,000        28,666,000
                                                 -----------       -----------
PARTNERS' CAPITAL

WNC Housing Tax Credit Fund IV, L.P.,
  Series 2                                         8,782,000         8,184,000
Other partners                                     1,415,000         1,470,000
                                                 -----------       -----------
                                                  10,197,000         9,654,000
                                                 -----------       -----------
                                            $     39,293,000  $     38,320,000
                                                 ===========       ===========

                                       26


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

       For The Three Months Ended March 31, 1999 and 1998 (Unaudited) and
              For The Years Ended December 31, 1998, 1997 and 1996

NOTE 3 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued

                   COMBINED CONDENSED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
                                                      1998                1997                1996
                                                      ----                ----                ----
<S>                                       <C>                 <C>                 <C>
  Revenues                                $      3,893,000    $      3,535,000    $      3,057,000

  Expenses:
    Operating expenses                           2,072,000           1,909,000           1,518,000
    Interest expense                             1,248,000           1,245,000           1,137,000
    Depreciation and amortization                1,241,000           1,134,000           1,040,000
                                              ------------        ------------        ------------
           Total expenses                        4,561,000           4,288,000           3,695,000
                                              ------------        ------------        ------------
  Net loss                                $       (668,000)   $       (753,000)   $       (638,000)
                                              ============        ============        ============
  Net loss allocable to Partnership       $       (659,000)   $       (737,000)   $       (629,000)
                                              ============        ============        ============
  Net loss recorded by the Partnership    $       (659,000)   $       (737,000)   $       (629,000)
                                              ============        ============        ============
</TABLE>

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

NOTE 4 - RELATED PARTY TRANSACTIONS

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

     Acquisition  fees of up to 8% of the gross  proceeds from the sale of Units
     as compensation for services rendered in connection with the acquisition of
     Local  Limited  Partnerships.  At the  end of all  periods  presented,  the
     Partnership   incurred   acquisition   fees  of   $1,058,950.   Accumulated
     amortization of these capitalized costs was $131,629,  $124,017 and $96,331
     as of March 31, 1999 and December 31, 1998 and 1997, respectively.

     Reimbursement  of costs incurred by the General  Partner in connection with
     the acquisition of Local Limited  Partnerships.  These  reimbursements have
     not exceeded 1.2% of the gross proceeds.  As of March 31, 1999 and December
     31, 1998 and 1997, the Partnership  incurred acquisition costs of $169,103,
     $169,103  and   $168,638,   respectively,   which  have  been  included  in
     investments in limited partnerships.  Accumulated amortization was $19,478,
     $16,859 and $12,447 as of March 31,  1999 and  December  31, 1998 and 1997,
     respectively.

                                       27

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

       For The Three Months Ended March 31, 1999 and 1998 (Unaudited) and
              For The Years Ended December 31, 1998, 1997 and 1996

NOTE 4 - RELATED PARTY TRANSACTIONS, continued

     An annual asset  management  fee equal to the greater  amount of (i) $2,000
     for each apartment  complex,  or (ii) 0.275% of gross  proceeds.  In either
     case,  the fee will be decreased or increased  annually based on changes to
     the Consumer  Price  Index.  However,  in no event will the maximum  amount
     exceed  0.2% of the  invested  assets  of the Local  Limited  Partnerships,
     including the  Partnership's  allocable share of the mortgages.  Management
     fees of $10,725 were incurred  during the three months ended March 31, 1999
     and $42,900 were incurred for 1998, 1997 and 1996,  respectively,  of which
     $5,950 was paid  during the three  months  ended March 31, 1999 and $4,616,
     $6,000 and $155,000 were paid during 1998, 1997 and 1996, respectively.

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

The accrued fees and expenses due to General  Partner and affiliates  consist of
the following:
<TABLE>
<CAPTION>
                                                   March 31                     December 31
                                               ---------------     -----------------------------------
                                                        1999               1998                1997
                                                        ----               ----                ----
<S>                                         <C>                <C>                 <C>
Reimbursement for expenses paid by the
  General Partner or an affiliate           $          2,963   $          6,082    $          1,137

Asset management fee payable                          26,759             21,984                   -
                                                  ----------         ----------          ----------
Total                                       $         29,722   $         28,066    $          1,137
                                                  ==========         ==========          ==========
</TABLE>

The General  Partner does not  anticipate  that these  accrued fees will be paid
until such time as capital reserves are in excess of future foreseeable  working
capital requirements of the Partnership.

NOTE 5 - PAYABLES TO LIMITED PARTNERSHIPS

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

NOTE 6 - INCOME TAXES

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



                                       28

<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 68, is the founder,  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 65, is President, a Director, Secretary and a member of
the  Acquisition  Committee  of WNC &  Associates,  Inc.,  and a Director of WNC
Capital  Corporation.  Mr. Lester has 27 years of experience in engineering  and
construction  and has been involved in real estate  investment  and  acquisition
activities since 1986 when he joined the Sponsor. Previously, he was Chairman of
the Board and Vice President or President of E & L Associates,  Inc., a provider
of engineering and construction  services to the oil refinery and  petrochemical
industries,  which  he  co-founded  in  1973.  Mr.  Lester  graduated  from  the
University of Southern  California in 1956 with a Bachelor of Science  degree in
Mechanical Engineering.

Wilfred N. Cooper,  Jr., age 36, is Executive Vice  President,  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 47, is Senior 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.

                                       29

<PAGE>
Michael L. Dickenson, age 42, is Vice President and Chief Financial Officer, and
a member of the  Acquisition  Committee  of WNC &  Associates,  Inc.,  and Chief
Financial Officer of WNC Management,  Inc. He has been involved with acquisition
and  investment  activities  with  respect to real estate  since 1985.  Prior to
joining the Sponsor in March 1999, he was the Director of Financial  Services at
TrizecHahn  Centers Inc., a developer  and operator of  commercial  real estate,
from 1995 to 1999,  a Senior  Manager  with E&Y  Kenneth  Leventhal  Real Estate
Group, Ernst & Young, LLP, from 1988 to 1995, and Vice President of Finance with
Great Southwest  Companies,  a commercial and residential real estate developer,
from  1985 to 1988.  Mr.  Dickenson  is a  member  of the  Financial  Accounting
Standards  Committee for the National  Association of Real Estate  Companies and
the  American  Institute  of  Certified  Public  Accountants,  and a Director of
HomeAid  Southern  California,  a charitable  organization  affiliated  with the
building  industry.  He  graduated  from  Texas Tech  University  in 1978 with a
Bachelor of Business  Administration  -  Accounting  degree,  and is a Certified
Public Accountant in California and Texas.

Thomas J. Riha, age 44, is Vice President - Asset Management and a member of the
Acquisition  Committee  of WNC &  Associates,  Inc.  and a  Director  and  Chief
Executive  Officer  of WNC  Management,  Inc.  Mr.  Riha  has been  involved  in
acquisition  and investment  activities  with respect to real estate since 1979.
Prior to joining the  Sponsor in 1994,  Mr.  Riha was  employed by Trust  Realty
Advisor, a real estate acquisition and management company,  last serving as Vice
President - Operations. Mr. Riha graduated from the California State University,
Fullerton  in 1977 with a  Bachelor  of Arts  degree  (cum  laude)  in  Business
Administration  with a  concentration  in Accounting  and is a Certified  Public
Accountant  and  a  member  of  the  American   Institute  of  Certified  Public
Accountants.

Sy P. Garban,  age 53, 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 36, is Vice President - Acquisitions 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 44, 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 62, 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.

                                       30

<PAGE>
Item 11.  Executive Compensation

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

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

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

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

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

Item 12.  Security Ownership of Certain Beneficial Owners and Management

     Security Ownership of Certain Beneficial Owners


(a)  Security Ownership of Certain Beneficial Owners

     The following is the only limited  partner known to the General  Partner to
     own beneficially in excess of 5% of the outstanding Units.

      Title of Class         Name and Address of       Amount of Units  Percent
                             Beneficial Owner          Controlled       of Class
      --------------------------------------------------------------------------

      Units of Limited       Sempra Energy Financial   4,000 Units      25.6%
      Partnership Interests  P.O. Box 126943
                             San Diego, CA  92113-6943

(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.

                                       31

<PAGE>


(c)  Changes in Control

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

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

Item 13.  Certain Relationships and Related Transactions

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





                                       32

<PAGE>
PART IV.

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

Financial Statements

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

         Report of Independent Certified Public Accountants
         Independent Auditors' Report
         Balance Sheets, March 31, 1999 and  1998 (Unaudited)  and  December 31,
           1998 and 1997
         Statements of Operations  for the three months ended March 31, 1999 and
           1998 (Unaudited) and for the years ended December 31, 1998,  1997 and
           1996
         Statements of Partners' Equity (Deficit) for the for three months ended
           March 31, 1999 and the years ended December 31, 1998, 1997 and 1996
         Statements of Cash Flows for the three months ended  March 31, 1999 and
           1998  (Unaudited)  and for the years ended December 31, 1998,  1997
           and 1996
         Notes to Financial Statements

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

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

(b)      Reports on Form 8-K

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

(c)      Exhibits

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

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

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

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

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

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

                                       33
<PAGE>
10.6     Third  Amended  and  Restated  Agreement  of  Limited  Partnership   of
         Southcove Associates filed as exhibit 10.2 to Form 8-K dated August  8,
         1994 is hereby incorporated herein by reference as exhibit 10.6.

10.7     Amended and  Restated  Agreement  of Limited  Partnership  of  Comanche
         Retirement  Village,  Ltd.  filed as  exhibit  10.1 to Form 8-K   dated
         August 31, 1994 is hereby  incorporated herein by reference as  exhibit
         10.7.  10.8 Amended and Restated  Agreement of Limited  Partnership  of
         Mountainview  Apartments Limited  Partnership filed as exhibit 10.1  to
         Form 8-K dated  September  21, 1994 is hereby  incorporated  herein  by
         reference as exhibit 10.8.

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

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

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

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

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

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

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

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

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

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

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

                                       34
<PAGE>


              Report of Independent Certified Public Accountants on
                          Financial Statement Schedules





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


The audits  referred to in our report dated July 30, 1999,  relating to the 1999
and 1998 financial  statements of WNC Housing Tax Credit Fund IV, L.P., Series 2
(the  "Partnership"),  which is contained in Item 8 of this Form 10-K,  included
the audit of the  accompanying  financial  statement  schedules.  The  financial
statement schedules are the responsibility of the Partnership's management.  Our
responsibility is to express an opinion on these financial  statement  schedules
based upon our audits.

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



                                                 /s/ BDO SEIDMAN, LLP
                                                 BDO SEIDMAN, LLP


Orange County, California
July 30, 1999







                                       35


<PAGE>



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

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

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

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

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

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

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

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

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

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

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

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


</TABLE>
                                       36
<PAGE>

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

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

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

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

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

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

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


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

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

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

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

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

Walnut Turn Associates,       Buna, Texas            188,000        188,000       692,000     1,015,000       108,000        907,000
Ltd.                                              ----------     ----------    ----------    ----------     ---------     ----------
                                                 $12,096,000    $11,674,000   $27,339,000   $41,184,000    $4,330,000    $36,854,000
                                                  ==========     ==========    ==========    ==========     =========     ==========
</TABLE>
                                       37
<PAGE>
WNC Housing Tax Credit Fund IV, L.P., Series 2
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 1999
<TABLE>
<CAPTION>
                                          -----------------------------------------------------------------------------
                                                         For the year ended December 31, 1998
                                          -----------------------------------------------------------------------------
                                                                                 Year                       Estimated
                                                                                 Investment                 Useful Life
Partnership Name                            Rental Income         Net loss       Acquired    Status         (Years)
-----------------------------------------------------------------------------------------------------------------------
<S>                                    <C>                <C>                       <C>     <C>         <C>
Apartment Housing of East
Brewton, Ltd.                          $            -     $           -             1998    Est. 1999   Not Determined

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

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

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

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

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

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

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

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

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

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

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

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

</TABLE>
                                       38
<PAGE>
WNC Housing Tax Credit Fund IV, L.P., Series 2
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 1999
<TABLE>
<CAPTION>
                                          -----------------------------------------------------------------------------
                                                         For the year ended December 31, 1998
                                          -----------------------------------------------------------------------------
                                                                                 Year                       Estimated
                                                                                 Investment                 Useful Life
Partnership Name                            Rental Income         Net loss       Acquired    Status         (Years)
-----------------------------------------------------------------------------------------------------------------------
<S>                                    <C>                <C>                       <C>     <C>         <C>
Lamesa Seniors Community, Ltd.                 84,000            (8,000)            1994    Completed         40 Years

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

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

Palestine Seniors Community, Ltd.             135,000            (1,000)            1994    Completed         40 Years

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

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

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

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

Walnut Turn Associates, Ltd.                  129,000           (17,000)            1995    Completed       27.5 Years
                                           ----------        ----------
                                        $   3,700,000     $    (668,000)
                                           ==========        ==========
</TABLE>
                                       39




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

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

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

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

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

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

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

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

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

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

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

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


</TABLE>
                                       40
<PAGE>

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

                                          ------------------------------------------------------------------------------------------
                                                                                As of December 31, 1998
                                          ------------------------------------------------------------------------------------------
                                          Partnership's Total   Amount of     Encumbrances of  Property
                                          Investment in Local   Investment    Local Limited    and        Accumulated      Net Book
Partnership Name              Location    Limited Partnerships  Paid to Date  Partnerships     Equipment  Depreciation     Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                           <C>                <C>           <C>            <C>           <C>          <C>             <C>
Honeysuckle Court             Vidor, Texas       $   339,000   $    339,000   $ 1,168,000   $ 1,780,000  $    195,000    $ 1,585,000
Associates, Ltd.

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

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

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

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


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

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

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

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

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

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



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

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

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

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

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

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

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

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

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

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

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

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

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

</TABLE>
                                       42
<PAGE>
WNC Housing Tax Credit Fund IV, L.P., Series 2
Schedule III
Real Estate Owned by Local Limited Partnerships
December 31, 1998
<TABLE>
<CAPTION>
                                          -----------------------------------------------------------------------------
                                                         For the year ended December 31, 1998
                                          -----------------------------------------------------------------------------
                                                                                 Year                       Estimated
                                                                                 Investment                 Useful Life
Partnership Name                            Rental Income         Net loss       Acquired    Status         (Years)
-----------------------------------------------------------------------------------------------------------------------
<S>                                    <C>                <C>                       <C>     <C>         <C>
Lamesa Seniors Community, Ltd.                 84,000            (8,000)            1994    Completed         40 Years

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

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

Palestine Seniors Community, Ltd.             135,000            (1,000)            1994    Completed         40 Years

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

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

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

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

Walnut Turn Associates, Ltd.                  129,000           (17,000)            1995    Completed       27.5 Years
                                           ----------        ----------
                                        $   3,700,000     $    (668,000)
                                           ==========        ==========
</TABLE>
                                       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 2

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

By:  WNC & Associates, Inc.
     General Partner of WNC Tax Credit Partners IV, L.P.


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

Date: August 5, 1999


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

Date: August 5, 1999


By:  /s/ Wilfred N. Cooper, Sr.
Wilfred N. Cooper, Sr., General Partner

Date: August 5, 1999

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: August 5, 1999



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

Date: August 5, 1999


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

Date: August 5, 1999






                                       44