<PAGE>
 
                    U.S. SECURITIES AND EXCHANGE COMMISSION
                            Washington D.C.  20549


                                  FORM 10-QSB


(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
    1934


        For the quarterly period ended September 30, 1997
                                       ------------------

[_] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT


        For the transition period from ______________ to ______________


          Commission file number 0-15700
                                 -------


          WINDSOR PARK PROPERTIES 4, A CALIFORNIA LIMITED PARTNERSHIP
       -----------------------------------------------------------------
       (Exact name of small business issuer as specified in its charter)


             California                               33-0202608
   -------------------------------        ---------------------------------
   (State or other jurisdiction of        (IRS Employer Identification No.)
    incorporation or organization)       


               6430 S. Quebec Street, Englewood, Colorado  80111
               -------------------------------------------------
                   (Address of principal executive offices)


                                (303) 741-3707
                          ---------------------------
                          (Issuer's telephone number)


Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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  [_]

                                       1
<PAGE>
 
                               TABLE OF CONTENTS


                                    PART I
                                    ------

                                                                Page
                                                                ----

Item 1.   Financial Statements                                    3

Item 2.   Management's Discussion and Analysis of Financial
          Condition and Results of Operations                     9


                                    PART II
                                    -------

Item 6.   Exhibits and Reports on Form 8-K                       11


          SIGNATURE

                                       2
<PAGE>
 
                           WINDSOR PARK PROPERTIES 4
                           -------------------------
                      (A California Limited Partnership)
                                BALANCE SHEET
                                -------------
                                 (unaudited)

<TABLE>
<CAPTION>
 
                                                        September 30, 1997
                                                        ------------------

<S>                                                     <C>
ASSETS
------
 
Property held for investment:
  Land                                                      $ 1,037,700
  Buildings and improvements                                  5,495,100
  Fixtures and equipment                                         97,300
                                                            -----------

                                                              6,630,100
Less accumulated depreciation                                (3,328,100)
                                                            -----------

                                                              3,302,000

Investments in joint ventures                                 3,407,900
Cash and cash equivalents                                       526,600
Deferred financing costs                                         75,700
Other assets                                                    116,300
                                                            -----------
 
                                                            $ 7,428,500
                                                            ===========

LIABILITIES AND PARTNERS' EQUITY
--------------------------------
 
Liabilities:
  Mortgage note payable                                     $ 1,775,000
  Accounts payable                                               19,600
  Accrued expenses                                              108,400
  Tenant deposits and other liabilities                          16,000
                                                            -----------

                                                              1,919,000
                                                            -----------
Partners' equity:
  Limited partners                                            5,543,800
  General partners                                              (34,300)
                                                            -----------
 
                                                              5,509,500
                                                            -----------

                                                            $ 7,428,500
                                                            ===========
</TABLE>

                See accompanying notes to financial statements.

                                       3
<PAGE>
 
                           WINDSOR PARK PROPERTIES 4
                           -------------------------
                      (A California Limited Partnership)
                           STATEMENTS OF OPERATIONS
                           ------------------------
                                  (unaudited)

<TABLE>
<CAPTION>
 
                                                Three Months Ended September 30,
                                                --------------------------------

                                                     1997              1996
                                                --------------    --------------

<S>                                             <C>               <C> 
REVENUES
--------

Rent and utilities                                 $297,800          $286,700
Equity in earnings of joint ventures                  6,200            30,700
Interest                                              6,200             9,900
Other                                                10,000            12,300
                                                   --------          --------
 
                                                    320,200           339,600
                                                   --------          --------

COSTS AND EXPENSES
------------------

Property operating                                  216,300           195,300
Depreciation and amortization                        59,900            58,300
Interest                                             43,100            34,700
General and administrative:
  Related parties                                    18,200            16,700
  Other                                               7,600             7,500
                                                   --------          --------

                                                    345,100           312,500
                                                   --------          --------

Net income                                         $(24,900)         $ 27,100
                                                   ========          ========

Net income - general partners                      $     --          $    300
                                                   ========          ========

Net income - limited partners                      $(24,900)         $ 26,800
                                                   ========          ========

Net income per limited partnership unit            $   0.13          $   0.14
                                                   ========          ========
</TABLE>

                See accompanying notes to financial statements.

                                       4
<PAGE>
 
                           WINDSOR PARK PROPERTIES 4
                           -------------------------
                      (A California Limited Partnership)
                           STATEMENTS OF OPERATIONS
                           ------------------------ 
                                  (unaudited)

<TABLE>
<CAPTION>
 
                                                 Nine Months Ended September 30,
                                                 -------------------------------
 
                                                      1997             1996
                                                 --------------   --------------

<S>                                              <C>              <C>
REVENUES
--------
 
Rent and utilities                                 $  875,800       $  837,000
Equity in earnings of joint ventures                   77,200          101,600
Interest                                               22,300           29,200
Other                                                  33,100           42,700
                                                   ----------       ----------

                                                    1,008,400        1,010,500
                                                   ----------       ----------

COSTS AND EXPENSES
------------------

Property operating                                    588,500          555,000
Depreciation and amortization                         179,200          172,900
Interest                                              129,200          102,800
General and administrative:
  Related parties                                      56,500           50,500
  Other                                                28,800           29,000
                                                   ----------       ----------
 
                                                      982,400          910,200
                                                   ----------       ----------
 
Net income                                         $   26,000       $  100,300
                                                   ==========       ==========

Net income  - general partners                     $      300       $    1,000
                                                   ==========       ==========

Net income - limited partners                      $   25,700       $   99,300
                                                   ==========       ==========
 
Net income per limited partnership unit            $     0.13       $     0.50
                                                   ==========       ==========
</TABLE>

                See accompanying notes to financial statements.

                                       5
<PAGE>
 
                           WINDSOR PARK PROPERTIES 4
                           -------------------------
                      (A California Limited Partnership)
                           STATEMENTS OF CASH FLOWS
                           ------------------------
                                  (unaudited)

<TABLE>
<CAPTION>
 
                                                 Nine Months Ended September 30,
                                                 -------------------------------
                                                      1997             1996
                                                 --------------   --------------
<S>                                              <C>              <C>
Cash flows from operating activities:
  Net income                                       $   26,000       $ 100,300
  Adjustments to reconcile net income to
  net cash provided by operating activities:
    Depreciation and amortization                     179,200         172,900
    Equity in earnings of joint ventures              (77,200)       (101,600)
    Joint ventures' cash distributions                 77,200         101,600
    Loss on sale of property held for investment          500           5,100
    Amortization of deferred financing costs            9,600           9,200
 
    Changes in operating assets and liabilities:
      Other assets                                     31,300         (34,100)
      Accounts payable                                  4,700         (16,400)
      Accrued expenses                                 76,800          54,900
      Tenant deposits and other liabilities            (8,700)         (4,100)
                                                   ----------       ---------
Net cash provided by operating activities             319,400         288,300
                                                   ----------       ---------

Cash flows from investing activities:
  Investment in joint venture                        (548,500)
  Joint ventures' cash distributions                  182,600         120,100
  Increase in property held for investment            (45,800)        (83,300)
  Proceeds from sale of property held for
  investment                                                           12,000
                                                   ----------       ---------

Net cash (used in) provided by investing
activities                                           (411,800)         48,800
                                                   ----------       ---------

Cash flows from financing activities:
  Cash distributions                                 (452,500)       (452,500)
  Repurchase of limited partnership units             (33,700)        (45,200)
                                                   ----------       ---------
 
Net cash used in financing activities                (486,200)       (497,700)
                                                   ----------       ---------
 
Net decrease in cash and cash equivalents            (578,600)       (160,600)
 
Cash and cash equivalents at beginning of period    1,105,200         885,500
                                                   ----------       ---------
 
Cash and cash equivalents at end of period         $  526,600       $ 724,900
                                                   ==========       =========

Supplemental disclosure of cash flow information:
  Cash paid during the period for:
    Interest (none capitalized)                    $  116,600       $  93,000
                                                   ==========       =========
</TABLE>

                See accompanying notes to financial statements.

                                       6
<PAGE>
 
                           WINDSOR PARK PROPERTIES 4
                           -------------------------
                      (A California Limited Partnership)
                         NOTES TO FINANCIAL STATEMENTS
                         -----------------------------
 

NOTE 1.  BASIS OF PRESENTATION
         ---------------------

The balance sheet at September 30, 1997 and the related statements of operations
for the three and nine months ended September 30, 1997 and 1996 and the
statements of cash flows for the nine months ended September 30, 1997 and 1996
are unaudited.  However, in the opinion of the General Partners, they contain
all adjustments, of a normal recurring nature, necessary for a fair presentation
of such financial statements.  Interim results are not necessarily indicative of
results for a full year.

The financial statements and notes are presented as permitted by Form 10-QSB and
do not contain certain information included in the Partnership's annual
financial statements and notes.

NOTE 2.  INVESTMENTS IN JOINT VENTURES
         -----------------------------

In February 1997, the Partnership purchased a 25% interest in the Apache East
Estates and Denali Park Estates manufactured home communities located in
Phoenix, Arizona.  The remaining interests in the communities were purchased by
affiliated entities.  The Partnership's cost of its equity interest in the
communities was $548,500.  In connection with the purchase, the joint venture
obtained a $3,040,000 loan, collateralized by the communities.  The
Partnership's share of this loan is $760,000.  The loan initially bears interest
at 8.375%.  In March 2000 and March 2003, the interest rate adjusts to the yield
on the 3-year Treasury Note plus 2.2% and the loan is due in March 2006.

The Partnership's investments in joint ventures consist of interests in nine
manufactured home communities at September 30, 1997.  The combined condensed
results of operations of the joint venture properties (including Apache East
Estates and Denali Park Estates since their purchase) for the nine months ended
September 30, 1997 and 1996 follows:

<TABLE>
<CAPTION>
                                                 1997           1996
                                             ------------   ------------

<S>                                          <C>            <C>
    Total revenues                            $2,396,160     $1,997,500
                                              ----------     ----------
    Expenses:
      Property operating                       1,150,910        927,400
      Interest                                   611,337        452,300
      Depreciation                               494,100        382,700
                                              ----------     ----------
 
                                               2,256,348      1,752,400
                                              ----------     ----------
 
    Net income                                $  139,813     $  235,100
                                              ==========     ==========
</TABLE>

NOTE 3.  NET INCOME PER LIMITED PARTNERSHIP UNIT
         ---------------------------------------

Net income per limited partnership unit is calculated based on the weighted
average number of limited partnership units outstanding during the period and
the net income  allocated to the Limited Partners.  The weighted average number
of limited partnership units outstanding during the three and nine months

                                       7
<PAGE>
 
ended September 30, 1997 was 196,910 and 197,663, respectively; and 198,607 and
197,962 for the three and nine months ended September 30, 1996, respectively.

NOTE 4.  RELATED PARTY TRANSACTIONS
         --------------------------

The General Partners of the Partnership are The Windsor Corporation, a
California corporation, and John A. Coseo, Jr.  (In September, 1997, Chateau
Communities, Inc. acquired 100% of the shares of the Windsor Corporation.)

The General Partners are entitled to receive from the Partnership various fees
and compensation which are summarized as follows:

Operational Stage
-----------------

The net profits, losses and cash distributions of the Partnership during the
operational stage are allocated 99% to the Limited Partners and 1% to the
General Partners.

The Partnership reimburses The Windsor Corporation for certain direct expenses,
and employee, executive and administrative time incurred on the Partnership's
behalf.  The Partnership was charged $20,300 and $19,400 for such costs during
the three months ended September 30, 1997 and 1996, respectively; and $65,200
and $58,400 during the nine months ended September 30, 1997 and 1996,
respectively.  These costs are included in property operating and general and
administrative expenses in the accompanying Statements of Operations.

Liquidation Stage
-----------------

The General Partners receive 1% of cash distributions from the sale or financing
of Partnership properties.  This participation increases to 15% after the
Limited Partners have received their original invested capital plus a 9%
cumulative, non-compounded annual return.

The General Partners generally receive 1% of profits and losses from the sale of
Partnership properties.  However, if applicable, profits on sale will first be
allocated 100% to the General Partners to the extent of their negative capital
account.

The General Partners received cash distributions of $4,500 during both the nine
months ended September 30, 1997 and 1996.  The General Partners received 2,200
during both the three months ended September 30, 1997 and 1996.

NOTE 5.  DISTRIBUTIONS TO LIMITED PARTNERS
         ---------------------------------

Distributions to limited partners in excess of net income allocated to limited
partners are considered a return of capital.  A breakdown of cash distributions
to limited partners for the nine months ended September 30, 1997 and 1996
follows:


<TABLE>
<CAPTION>
 
                                          1997               1996
                                    ----------------   ----------------
 
                                               Per                Per
                                     Amount    Unit     Amount    Unit
                                    --------  ------   --------  ------
<S>                                 <C>       <C>      <C>       <C> 
Net income - limited partners       $ 25,700   $0.13   $ 99,300   $0.50
</TABLE>

                                       8
<PAGE>
 
<TABLE>
<S>                                 <C>       <C>      <C>       <C>
Return of capital                    422,300    2.14    348,700    1.76
                                    --------   -----   --------   -----
 
                                    $448,000   $2.26   $448,000   $2.26
                                    ========   =====   ========   =====
</TABLE>

                                       9
<PAGE>
 
                           WINDSOR PARK PROPERTIES 4
                           -------------------------
                      (A California Limited Partnership)
               MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
               -------------------------------------------------
                      CONDITION AND RESULTS OF OPERATIONS
                      -----------------------------------
                                        
                                        
Changes in Financial Condition
------------------------------

September 30, 1997 as compared to December 31, 1996
---------------------------------------------------

The Partnership's primary sources of cash during the nine months ended September
30, 1997 were from the operations of its investment properties and distributions
from joint ventures.  The primary uses of cash during the same period were for
an investment in a joint venture, debt service and cash distributions to
partners.

In February 1997, the Partnership purchased a 25% interest in the Apache East
Estates and Denali Park Estates manufactured home communities located in
Phoenix, Arizona.  The Partnership's cost of its equity interest in the
communities was $548,500.  In connection with the purchase, the joint venture
obtained a $3,040,000 loan, collateralized by the communities.  The
Partnership's share of this loan is $760,000.  The loan initially bears interest
at 8.375%.  In March 2000 and March 2003 the interest rate adjusts to the yield
on the 3-year Treasury Note plus 2.2% and the loan is due in March 2006.

No further investment property acquisitions are planned by the General Partners.

At September 30, 1997 the Partnership's total mortgage debt, including its
proportionate share of joint venture debt, was $5,183,600, consisting of
$2,675,000 of fixed rate debt and $2,508,600 of variable rate debt.  The average
rate of interest on the fixed and variable rate debt was 8.9% and 9.0%,
respectively at September 30, 1997.

The future sources of cash for the Partnership will be provided from property
operations, cash reserves, and ultimately from the sale of property.  The future
uses of cash will be for Partnership administration, capital expenditures, cash
distributions to partners and debt service.  The General Partners believe that
the future sources of cash are sufficient to meet the working capital
requirements of the Partnership for the foreseeable future.

Results of Operations
---------------------

Nine months ended September 30, 1997 as compared to nine months ended September
-------------------------------------------------------------------------------
30, 1996
--------

The results of operations for the nine months ended September 30, 1997 and 1996
are not directly comparable due to the purchase of interests in the Apache East
Estates and Denali Park Estates manufactured home communities in February 1997,
as discussed previously.  The Partnership realized net income of $26,000 and
$100,300 for the nine months ended September 30, 1997 and 1996, respectively.
Net income per limited partnership unit was $0.13 in 1997 and $0.50 in 1996.

Rent and utilities revenues increased from $837,000 in 1996 to $875,800 in 1997.
The overall occupancy level of the Partnership's two wholly-owned properties
decreased from 74% at September 30, 1996 to 71% at September 30, 1997.  The
overall decrease in occupancy is attributable to the Sunrise Village community
in Cocoa, Florida where continued weakness in the local economy is responsible
for lower occupancy levels and revenues.  However, more than offsetting the
decrease in

                                       10
<PAGE>
 
revenues at Sunrise Village were increased revenues at Sunset Vista due to a $20
per month rent increase effective May 1997, and lower 1997 rent concessions.

Equity in earnings of joint ventures represents the Partnership's share of the
net income of nine manufactured home communities in 1997 and four communities in
1996 (as mentioned previously, two joint venture interests were acquired in
February 1997).  Equity in earnings of joint ventures remained essentially level
at $77,200 in 1997 compared to $101,600 in 1996.  As projected, the Apache East
Estates and Denali Park Estates communities have incurred book losses since
their acquisition, resulting in level equity in earnings of joint ventures in
1997 despite two additional properties.  However, after adding back noncash
depreciation expense, these properties are generating cash flow to the
Partnership as expected.  The overall occupancy of the Partnership's nine joint
venture properties was 90% at September 30, 1997, compared to 95% for four
properties at September 30, 1996.  Recent rent increases include $10 and $12 per
month at Big Country effective February 1997 and 1996, respectively; $10 per
month at Harmony Ranch effective October 1996; and $12 and $9 per month at
Rancho Margate and Winter Haven, respectively, effective January 1997.

Interest income decreased from $29,200 in 1996 to $22,300 in 1997 due mainly to
lower cash balances maintained by the Partnership.

Property operating expenses increased from $555,000 in 1996 to $588,500 in 1997.
The increase is due mainly to higher repairs and maintenance expenses.

Interest expense increased from $102,800 in 1996 to $129,200 in 1997, due mainly
to the $375,000 loan draw taken by the Partnership in December 1996.

General and administrative expense increased from $79,500 in 1996 to $85,500 in
1997, due mainly to higher employee time charges from the General Partners,
resulting from the addition of new investment properties to the portfolio.

Three months ended September 30, 1997 as compared to three months ended
-----------------------------------------------------------------------
September 30, 1996
------------------

The results of operations for the three months ended September 30, 1997 and 1996
are not directly comparable due to the purchase of interests in the Apache East
Estates and Denali Park Estates manufactured home communities in February 1997,
as discussed previously.  The Partnership realized net loss of $24,900 and
$27,100 for the three months ended September 30, 1997 and 1996, respectively.
Net loss per limited partnership unit was $0.13 in 1997 and $0.14 in 1996.

Rent and utilities revenues increased from $286,700 in 1996 to $297,800 in 1997,
for the reasons discussed previously.

Equity in earnings of joint ventures represents the Partnership's share of the
net income of nine manufactured home communities in 1997 and four communities in
1996 (as mentioned previously, two joint venture interests were acquired in
February 1997).  Equity in earnings of joint ventures decreased from $30,700 in
1996 to $6,200 in 1997, for the reasons discussed previously.

Property operating expenses increased from $195,300 in 1996 to $216,300 in 1997.
The overall increase is comprised mainly of higher repairs and maintenance
costs.

Interest expense increased from $34,700 in 1996 to $43,100 in 1997 due to the
$375,000 loan draw taken by the Partnership in December 1996.

                                       11
<PAGE>
 
General and administrative expense increased from $24,200 in 1996 to $25,800 in
1997 due mainly to higher employee time charges from the General Partners
resulting from the addition of new investment properties to the portfolio.

                                       12
<PAGE>
 
                                    PART II
                                    -------


Item 6.  EXHIBITS AND REPORTS ON FORM 8-K
         --------------------------------

   (a)  Exhibits and Index of Exhibits

            (27) Financial Data Schedule

   (b)  Reports on Form 8-K

            A Form 8-K/A (dated April 28, 1997) was filed with regards to the
            Partnership's acquisition of interests in the Apache East Estates
            and Denali Park Estates manufactured home communities located in
            Phoenix, Arizona.

            The items reported in this current report were Item 2 (acquisition
            or disposition of assets) and Item 7 (financial statements, proforma
            financial information and exhibits).

            A summary of the financial information included in this report
            follows:

            a)   Financial Statements and Proforma Financial Information of
                 Apache East Estates and Denali Park Estates Manufactured Home
                 Communities.

            b)   Proforma Financial Information of Windsor Park Properties 4.

                                       13
<PAGE>
 
                                 SIGNATURE


In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                                   WINDSOR PARK PROPERTIES 4,
                                   A California Limited Partnership
                                   --------------------------------
                                             (Registrant)
 

                                   By:  The Windsor Corporation, General Partner


                                   By  /s/ Steven G. Waite
                                       --------------------------------
                                       STEVEN G. WAITE
                                       President
 
Date:  November 14, 1997

                                       14