Exhibit
Number            Exhibit Description

EX-21.1 Financial  Statements of Pioneer Street Associates,  for the years ended
December 31, 1999 and 1998 togethor with Independent auditors' report thereon; a
significant subsidiary of the Partnership.

                                       53

<PAGE>


                          INDEPENDENT AUDITOR'S REPORT



To the Partners
Pioneer Street Associates
(A California Limited Partnership)
Visalia, California


I have audited the accompanying  balance sheets of Pioneer Street  Associates (A
California  Limited  Partnership),  as of December  31,  1999 and 1998,  and the
related  statements of income,  partners'  equity,  and cash flows for the years
then  ended.   These  financial   statements  are  the   responsibility  of  the
Partnership's  management.  My  responsibility is to express an opinion on these
financial statements based on my audits.

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

In my opinion, the financial statements referred to above present fairly, in all
material  respects,  the  financial  position of Pioneer  Street  Associates  (A
California  Limited  Partnership)  as of  December  31,  1999 and 1998,  and the
results  of its  operations  and its cash  flows  for the  years  then  ended in
conformity with generally accepted accounting principles.

                            /s/ Bernard E. Rea, CPA
                                Bernard E. Rea, CPA


Stockton, California
March 30, 2000



                                       54
<PAGE>





                                 C O N T E N T S



                                                                      Page

INDEPENDENT AUDITOR'S REPORT ON
     THE FINANCIAL STATEMENTS......................................... 54


FINANCIAL STATEMENTS

     Balance sheets................................................... 56
     Statements of income............................................. 57-60
     Statements of changes in partners' equity........................ 61
     Statements of cash flows......................................... 62-63
     Notes to financial statements.................................... 63-67








                                       55

<PAGE>
                            PIONEER STREET ASSOCIATES
                       (A California Limited Partnership)

                                 BALANCE SHEETS
                           December 31, 1999 and 1998
<TABLE>
<CAPTION>

                  LIABILITIES AND PARTNERS' EQUITY           1999               1998
                                                             -----              ----

<S>                                                    <C>                <C>
CURRENT LIABILITIES
 Current maturities of long-term debt                  $     22,374       $     20,624
 Accounts payable                                             3,580              7,742
 Bank overdraft                                                   -                  -
 Accrued reporting fee                                        2,000              3,000
 Accrued property taxes                                           -                  -
                                                          ----------         ----------
       Total current liabilities                       $     27,954       $     31,366
                                                          ----------         ----------
DEPOSIT AND PREPAYMENT LIABILITIES
 Tenants' security deposits                            $     35,250       $     35,250
 Prepaid rents                                                    -                  -
                                                          ----------         ----------
                                                       $     35,250       $     35,250
                                                          ----------         ----------
LONG-TERM DEBT
 Mortgage payable, less current maturities             $  1,860,474       $  1,882,848
                                                         -----------         ----------
COMMITMENT

PARTNERS' EQUITY                                       $  1,765,540       $  1,832,905
                                                         -----------         ----------

                                                       $  3,689,218       $  3,782,369
                                                         ===========         ==========
</TABLE>
                       See Notes to Financial Statements.
                                       56
<PAGE>
                            PIONEER STREET ASSOCIATES
                       (A California Limited Partnership)

                              STATEMENTS OF INCOME
                     Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>

                                                    1999                        1998
<S>                                               <C>                         <C>
RENTAL INCOME
 Apartments                                       $    519,492                $    519,492
 Tenant assistance payments                                  -                           -
 Furniture and equipment                                     -                           -
 Commercial                                                  -                           -
 Parking spaces                                              -                           -
 Subsidy income                                              -                           -
 Miscellaneous                                               -                           -
                                                     ----------                  ----------
  Sub-total potential rent revenue                $    519,492                $    519,492
                                                     ----------                  ----------
VACANCIES
 Apartments                                       $    (37,696)               $    (12,515)
 Commercial                                                  -                           -
 Parking spaces                                              -                           -
 Miscellaneous                                               -                           -
                                                     ----------                  ----------
  Sub-total vacancies                             $    (37,696)               $    (12,515)
                                                     ----------                  ----------

      Net rental revenue                          $    481,796                $    506,977
                                                     ----------                  ----------
FINANCIAL REVENUE
 Interest Income - project operations             $      1,346                $      1,457
 Income from investments - replacement reserve           5,029                       3,986
 Income from investments - operating reserve                 -                           -
 Income from investments - miscellaneous                     -                           -
                                                     ----------                  ----------
  Sub-total financial revenue                     $      6,375                $      5,443
                                                     ----------                  ----------
OTHER REVENUE
 Laundry and vending                              $     10,555                $     16,345
 NSF and late charges                                        -                           -
 Damage and cleaning fees                                  329                           -
 Forfeited tenant security deposits                     11,443                       9,937
 Other revenue                                          14,646                       9,514
                                                     ----------                  ----------
  Sub-total other revenue                         $     36,973                $     35,796
                                                     ----------                  ----------

      Total revenues                              $    525,144                $    548,216
                                                     ----------                  ----------

</TABLE>
                       See Notes to Financial Statements.
                                       57

<PAGE>
                            PIONEER STREET ASSOCIATES
                       (A California Limited Partnership)

                        STATEMENTS OF INCOME (CONTINUED)
                     Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
                                                         1999                        1998
                                                         -----                       ----
OPERATING EXPENSES
<S>                                                <C>                         <C>
 Renting expenses
  Advertising                                      $          -                $      2,782
  Miscellaneous renting expenses                         13,942                       1,546
                                                      ----------                  ----------
      Sub-total renting expenses                   $     13,942                $      4,328
                                                      ----------                  ----------
 Administrative expenses
  Office salaries                                  $          -                $          -
  Office supplies                                         1,117                       1,348
  Office rent                                                 -                           -
  Management fee                                         38,201                      39,084
  Manager's salary                                       21,536                      26,408
  Legal expense                                           6,900                         964
  Audit expense                                           3,475                       3,265
  Bookkeeping / accounting services                           -                           -
  Telephone and answering service                           796                         831
  Bad debts                                                   -                           -
  Miscellaneous administrative expenses                       -                         398
                                                      ----------                  ----------
      Sub-total administrative expenses            $     72,025                $     72,298
                                                      ----------                  ----------
 Utilities expense
  Fuel oil / coal                                  $          -                $          -
  Electricity                                             8,044                       7,308
  Water                                                  11,542                      10,169
  Gas                                                         -                           -
  Sewer                                                   3,830                       2,805
                                                      ----------                  ----------
      Sub-total utilities expense                  $     23,416                $     20,282
                                                      ----------                  ----------

</TABLE>
                       See Notes to Financial Statements.
                                       58

<PAGE>
                            PIONEER STREET ASSOCIATES
                       (A California Limited Partnership)

                        STATEMENTS OF INCOME (CONTINUED)
                     Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
                                                            1999              1998
                                                            -----             ----
<S>                                                        <C>               <C>
     Operating and maintenance expense
      Janitor and cleaning payroll                         $          -      $          -
      Janitor and cleaning supplies                                   -                 -
      Janitor and cleaning contract                                   -                 -
      Exterminating payroll / contract                                -                 -
      Exterminating supplies                                          -                 -
      Garbage and trash removal                                  15,959            23,687
      Security payroll / contract                                     -                 -
      Grounds payroll                                                 -                 -
      Grounds supplies                                                -                 -
      Grounds contract                                           14,200            19,592
      Repairs payroll                                            29,264            25,994
      Repairs material                                           13,196            11,516
      Repairs contract                                           18,133            26,984
      Elevator maintenance / contract                                 -                 -
      Heating / cooling repairs and maintenance                       -                 -
      Swim pool maintenance / contract                                -                 -
      Snow removal                                                    -                 -
      Decorating payroll / contract                                   -                 -
      Decorating supplies                                         1,633               100
      Vehicle and maintenance equipment o & r                         -                 -
      Miscellaneous operating and maint. expenses                   949                 -
                                                              ----------        ----------
          Sub-total operating & maint. expense             $     93,334      $    107,873
                                                              ----------        ----------
     Taxes and insurance
      Real estate taxes                                    $     46,488      $     42,616
      Payroll taxes                                               4,875             7,491
      Miscellaneous taxes, licenses, and permits                    175               175
      Property and liability insurance                            6,663             6,234
      Fidelity bond insurance                                         -                 -
      Workman's compensation                                      3,652             4,089
      Health insurance and other employee benefits                4,180             4,548
      Other insurance                                                 -                 -
                                                              ----------        ----------
          Sub-total taxes & insurance                      $     66,033      $     65,153
                                                              ----------        ----------

             Total operating expenses                      $    268,750      $    269,934
                                                              ----------        ----------
</TABLE>
                       See Notes to Financial Statements.
                                       59
<PAGE>
                            PIONEER STREET ASSOCIATES
                       (A California Limited Partnership)

                        STATEMENTS OF INCOME (CONTINUED)
                     Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
                                                            1999              1998
                                                            -----             ----
<S>                                                        <C>               <C>
OTHER EXPENSES
 Interest expense - mortgage                               $   154,753       $    157,096
 Interest expense - notes                                            -                  -
 Miscellaneous financial expense                                     -                  -
 Depreciation and amortization                                 150,207            156,561
 Limited partnership tax                                           800                800
 Non project expenses                                            5,000              5,000
                                                             ----------         ----------

     Sub-total other expenses                               $  310,760       $    315,457
                                                             ----------         ----------

             Total expenses                                 $  579,510       $    585,391
                                                             ----------         ----------

             Net income (loss)                              $  (54,366)      $    (37,175)
                                                             ==========         ==========





</TABLE>
                       See Notes to Financial Statements.
                                       60



<PAGE>
                            PIONEER STREET ASSOCIATES
                       (A California Limited Partnership)

                         STATEMENTS OF PARTNERS' EQUITY
                     Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
                                                                                      General                      Limited
                                                            Total                     Partners                     Partner
                                                       -------------               -------------                ------------
<S>                                                     <C>                         <C>                          <C>
Partners' equity
     December 31, 1997                                  $  1,870,080                $   (151,741)                $  2,021,821

Partners' capital
     contributions                                                 -                           -                            -

Partners' capital
     distributions                                                 -                           -                            -

Net income (loss)                                            (37,175)                       (372)                     (36,803)
                                                         ------------                 -----------                  -----------
Partners' equity
     December 31, 1998                                  $  1,832,905                $   (152,113)                $  1,985,018

Partners' capital
     contributions                                                 -                           -                            -

Partners' capital
     distributions                                           (12,999)                    (12,999)                           -

Net income (loss)                                            (54,366)                       (544)                     (53,822)
                                                         ------------                 -----------                  -----------
Partners' equity
     December 31, 1999                                  $  1,765,540                $   (165,656)                $  1,931,196
                                                         ============                ============                  ===========
Percentage at
     December 31, 1999                                          100%                          1%                          99%
                                                         ============                ============                  ===========
</TABLE>
                       See Notes to Financial Statements.
                                       61

<PAGE>
                            PIONEER STREET ASSOCIATES
                       (A California Limited Partnership)

                            STATEMENTS OF CASH FLOWS
                     Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
                                                        1999                        1998
<S>                                                <C>                         <C>
CASH FLOWS FROM OPERATING ACTIVITIES
 Net income (loss)                                 $    (54,366)               $    (37,175)
 Adjustments to reconcile net income
  (loss) to net cash provided by
  (used in) operating activities:
    Depreciation and amortization                       150,207                     156,561
    Change in assets and liabilities:
     Decrease (increase) in:
      Rents receivable                                        -                           -
      Prepaid expenses                                      679                        (565)

      Tenants' security deposits                           (894)                     (1,029)

      Tax and insurance impounds                           (312)                       (297)

     Increase (decrease) in:
      Accounts payable                                   (4,162)                      7,742
      Bank overdraft                                          -                      (5,013)
      Accrued reporting fee                              (1,000)                      1,000
      Accrued property taxes                                  -                     (11,991)
      Prepaid rents                                           -                           -
      Tenants' security deposits                              -                           1
                                                       ----------                  ---------
         Net cash provided by (used in)
              operating activities                 $     90,152                $    109,234
                                                       ----------                  ---------
CASH FLOWS FROM INVESTING ACTIVITIES
 Funding of replacement reserve                    $    (35,319)               $    (31,973)

 Withdrawals from replacement reserve                         -                           -

 Acquisition of property and equipment                        -                           -
                                                      ----------                   ---------
            Net cash provided by (used in)
                investing activities               $    (35,319)               $    (31,973)
                                                      ----------                   ---------


CASH FLOWS FROM FINANCING ACTIVITIES
 Partner contributions                             $          -                $          -

 Partner distributions                                  (12,999)                          -

 Principal payments on long-term debt                   (20,624)                    (19,012)
                                                      ----------                   ---------
</TABLE>

                       See Notes to Financial Statements.
                                       62
<PAGE>
                            PIONEER STREET ASSOCIATES
                       (A California Limited Partnership)

                            STATEMENTS OF CASH FLOWS (CONTINUED)
                     Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
                                                            1999                     1998
                                                        -----------               ----------

<S>                                                  <C>                       <C>
            Net cash provided by (used in)
                financing activities                 $    (33,623)             $    (19,012)
                                                       -----------                ----------

            Increase (decrease) in cash and
                cash equivalents                     $     21,210              $     58,249

Cash and cash equivalents
 Beginning                                                 64,286                     6,037
                                                       -----------                ----------

 Ending                                              $     85,496              $     64,286
                                                       ===========                ==========



SUPPLEMENTAL DISCLOSURE OF CASH FLOW
 INFORMATION
  Cash paid during the year for interest             $    154,753              $    157,096
                                                       ===========                ==========


</TABLE>


                       See Notes to Financial Statements.
                                       63
<PAGE>
                            PIONEER STREET ASSOCIATES
                       (A California Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

      A  summary   of  the   Partnership's   significant   accounting   policies
consistently applied in the preparation of the accompanying financial statements
follows.

      CAPITALIZATION AND DEPRECIATION

      Land,  buildings and  improvements  are recorded at cost.  Depreciation of
      buildings  and  equipment  is  computed  principally  using  the  Modified
      Accelerated  Cost Recovery  System which  approximates  straight-line  for
      buildings and  double-declining  balance for equipment  over the following
      estimated useful lives:
                                                             Years
                                                            -------

      Buildings                                               27.5
      Equipment                                                7

      Improvements  are  capitalized,  while  expenditures  for  maintenance and
      repairs are charged to expense as incurred.  Upon disposal of  depreciable
      property,  the  appropriate  property  accounts are reduced by the related
      costs and  accumulated  depreciation.  The resulting  gains and losses are
      reflected in the statement of operations.

      CASH AND CASH EQUIVALENTS

      For purposes of reporting the  statements of cash flows,  the  Partnership
      includes  all  cash   accounts   which  are  not  subject  to   withdrawal
      restrictions  or  penalties,   and  all  highly  liquid  debt  instruments
      purchased  with a  maturity  of  three  months  or less as cash  and  cash
      equivalents on the accompanying balance sheet.

      AMORTIZATION

      Deferred  charges are amortized over the following  estimated useful lives
using the straight-line method:
                                                            Years
                                                          --------

      Deferred debt expense                                  30
      Tax credit monitoring fee                              15

      INCOME TAXES

      No  provision  or benefit  for  income  taxes has been  included  in these
      financial  statements  since taxable income or loss passes through to, and
      is reportable by, the partners individually.



                                       64
<PAGE>
                            PIONEER STREET ASSOCIATES
                       (A California Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

      ESTIMATES

      The  preparation  of financial  statements  in conformity  with  generally
      accepted  accounting  principles requires management to make estimates and
      assumptions that affect certain reported amounts and disclosures.

      PERSONAL ASSETS AND LIABILITIES

      In accordance with the generally accepted method of presenting partnership
      financial statements, the financial statements do not include the personal
      assets and  liabilities of the partners,  including  their  obligation for
      income  taxes  on  their  distributive  shares  of the net  income  of the
      Partnership, nor any provision for income tax expense.


NOTE 2 - ORGANIZATION

      Pioneer Street  Associates is a California  Limited  Partnership which was
      formed in February 1994, to develop,  construct, own, maintain and operate
      a  112-unit  multi-family   apartment  complex  known  as  Foothill  Vista
      Apartments  and is located  in the city of  Bakersfield,  California.  The
      major  activities  of the  Partnership  are  governed  by the  Partnership
      Agreement and Loan Agreement with the  California  Community  Reinvestment
      Corporation  (CCRC), a California  nonprofit  public benefit  corporation.
      Under the Loan Agreement,  the Partnership is required to provide low cost
      housing to moderate or low-income households.

      The  Partnership  has three  general  partners and one  investing  limited
      partner.  Partnership transactions with the general partners are described
      in other notes to this financial statement.


NOTE 3 - DEFERRED CHARGES

      Deferred  charges  as of  December  31,  1999 and  1998,  consists  of the
following:


                                             1999                   1998
                                      -----------------        ---------------
      Deferred debt expense          $        39,200          $      39,200
      Tax credit monitoring fee               26,650                 26,650
      Less accumulated amortization           13,403                 10,319
                                      ---------------        ---------------
                                     $        65,850          $      65,850
                                       ---------------         ---------------
                                     $        52,447          $      55,531
                                       ==============          ===============



                                       65
<PAGE>
                            PIONEER STREET ASSOCIATES
                       (A California Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS

NOTE 4 - RESTRICTED DEPOSITS AND FUNDED RESERVES

      In  accordance  with  the  Partnership  and the CCRC  Replacement  Reserve
      Agreements,  the Partnership is required to maintain a replacement reserve
      account.  The  account is to be funded  annually  in the amount of $28,000
      until the aggregate balance of the account reaches $182,000.


NOTE 5 - LONG-TERM DEBT

      Long-Term  debt  consisted of a permanent loan with CCRC in face amount of
      $1,960,000.

      Under  the  terms of the  30-year  Promissory  Note  with  CCRC,  the loan
      provides  for an initial  interest  rate of 8.17% and monthly  payments of
      $14,614.74   commencing  on  November  1,  1995,  and  continuing  through
      September  2025. The interest rate and monthly payment will be adjusted at
      year eleven (11) and year Twenty-one (21), at which time the interest rate
      will be  adjusted  based on the  Current  Index plus 2.75% and the payment
      will be adjusted and determined by the amount of the monthly  payment that
      would be  sufficient  to repay the note  within 360 months of the  initial
      payment  date.  As of December  31, 1999 the  current  interest,  rate and
      minimum monthly payment due is 8.17% and $14,617.74, respectively.

      The  apartment  complex is pledged as  collateral  for the mortgage and is
      secured by deeds of trust,  assignment of rents,  security  agreements and
      fixture filings against the property.

      Aggregate  maturities  of  Long-term  debt for the next five  years are as
follows:

      December 31, 2000      $      22,374
                   2001             24,272
                   2002             26,331
                   2003             28,564
                   2004             30,987
             Thereafter          1,750,320
                               -----------

                  TOTAL      $   1,882,848
                               ===========







                                       66

<PAGE>
                            PIONEER STREET ASSOCIATES
                       (A California Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS

NOTE 6 - TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES

      ANNUAL REPORTING FEE

      An annual reporting fee of $1,000 is payable to the limited  partner,  WNC
      California  Housing Tax Credit Fund IV, L.P. Series 2, an investor limited
      partner which holds a 99% interest in the partnership,  for services to be
      rendered for accounting matters relating to preparation of tax returns and
      other reports required.

      ANNUAL PARTNERSHIP ADMINISTRATIVE FEE

      An annual  partnership  administrative  fee of $1,000  is  payable  to the
      general partners, for their services to be rendered in connection with the
      administration of the day to day business of the Partnership. For the year
      ended December 31, 1999, $3,000 was charged to operations for fees payable
      from 1996 through 1999.

NOTE 6 - TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED)

      MANAGEMENT FEE

      In accordance with the management  agreement,  the Partnership  paid Tetra
      Property Management Company,  affiliates of one of the general partners, a
      management fee during 1999 in the amount of 38,201,  for services rendered
      in connection  with the leasing and operation of the project.  The fee for
      its services is approximately 7% of the project's rental income.

NOTE 7 - CONCENTRATION OF CREDIT RISK

      The  Partnership  maintains  cash and cash  equivalents  at two  financial
      institutions  located  in  California.  The  accounts  are  insured by the
      Federal  Deposit  Insurance  Corporation  up  to  $100,000  per  financial
      institution.  At December  31,  1999,  the  Partnership's  uninsured  cash
      balances totaled $73,520.

NOTE 8 - COMMITMENT

      The  Partnership  entered into a Regulatory  Agreement with the Tax Credit
      Allocation Committee (TCAC), established under Section 50185 of the Health
      and Safety  Code of the State of  California.  Under this  Agreement,  the
      Partnership shall maintain the project as a Qualified  Low-income  Housing
      Project for a period of 55 consecutive  taxable years beginning with 1995,
      the  first  taxable  year of the  Credit  Period.  In  exchange  for  this
      agreement,  TCAC has  authorized an allocation  relating to the low-income
      housing credit under the provisions of Section 42 of the Internal  Revenue
      Code.

NOTE 9 - CURRENT VULNERABILITY DUE TO CERTAIN CONCENTRATIONS

      The   Partnership's   sole  asset  is  Foothill  Vista   Apartments.   The
Partnership's operations are concentrated in the multifamily real estate market.

                                       67