UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-K

   (Mark One)

   [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                                   ACT OF 1934
                    For the fiscal year ended March 31, 2006

                                       OR

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

             For the transition period from           to
                                            ----------   ---------

                         Commission file number: 0-20056

                   WNC CALIFORNIA HOUSING TAX CREDITS II, L.P.
             (Exact name of registrant as specified in its charter)

               California                                33-0433017
              (State or other jurisdiction of          (I.R.S. Employer
              incorporation or organization)           Identification No.)

              17782 Sky Park Circle                        92614-6404
              Irvine, CA                                   (Zip Code)
              (Address of principal executive offices)

                                 (714) 662-5565
                               (Telephone number)


           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
                                (Title of Class)


Indicate by check mark if the  registrant is a well-known  seasoned  issuer,  as
defined in Rule 405 of the Securities Act
Yes       No   X
   -------  -------

Indicate  by  check  mark if the  registrant  is not  required  to file  reports
pursuant to Section 13 or Section 15(d) of the Act.
Yes       No   X
   -------  -------
<PAGE>
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

Yes       No   X
   -------  -------

Indicate by check mark whether the registrant is a large  accelerated  filer, an
accelerated  filer, or a  non-accelerated  filer. See definition of "accelerated
filer and large  accelerated  filer" in Rule 12b-2 of the Exchange  Act.  (Check
one): Large accelerated  filer     Accelerated  filer     Non-accelerated  filer
                              -----                  -----
   X
--------

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).
Yes     No   X
   -----  -------

Indicate by check mark if disclosure of delinquent  filers  pursuant to Item 405
of Regulation  S-K is not contained  herein,  and will not be contained,  to the
best of registrant's  knowledge,  in definitive proxy or information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. |X|

Indicate by check mark whether the registrant is an accelerated filer.
Yes     No    X
   -----   ------

State the aggregate market value of the voting and non-voting common equity held
by non-affiliates  computed by reference to the price at which the common equity
was last sold, or the average bid and asked price of such common  equity,  as of
the last business day of the registrant's most recently  completed second fiscal
quarter.

                                  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
<PAGE>
PART I.

Item 1. Business

Organization

WNC California Housing Tax Credits II,  L.P. (the "Partnership") is a California
Limited  Partnership  formed  under  the  laws of the  State  of  California  on
September 13, 1990. The Partnership  was formed to acquire  limited  partnership
interests or  membership  interests  in other  limited  partnerships  or limited
liability  companies  ("Local  Limited  Partnerships")  which  own  multi-family
housing complexes ("Housing Complexes") that are eligible for Federal low-income
housing tax credits ("Low Income Housing Tax Credits").

The general  partner of the  Partnership is WNC Tax Credit  Partners,  L.P. (the
"General Partner"). WNC & Associates, Inc. ("Associates") and Wilfred N. Cooper,
Sr. are the general partners of WNC Tax Credit  Partners,  L.P. The chairman and
president of  Associates  owns  substantially  all 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 January 22, 1991, the Partnership commenced a public offering of
20,000   Partnership   Partnership   Units  of  limited   partnership   interest
("Partnership  Units")  at a price of $1,000  per  Unit.  As of the close of the
public  offering  on  January  21,  1993,  a total of 17,726  Partnership  Units
representing  $17,726,000  had been  sold.  Holders  of  Partnership  Units  are
referred to herein as "Limited Partners."

The Partnership  shall continue in full force and effect until December 31, 2045
unless  terminated prior to that date pursuant to the Partnership  Agreement (as
defined below) or law.

Description of Business

The  Partnership's  principal  business  objective  is to  provide  its  Limited
Partners  with Low Income  Housing  Tax  Credits.  The  Partnership's  principal
business  consists of investing as a limited partner or  non-managing  member in
Local  Limited  Partnerships  each of which owns and operates a Housing  Complex
which  qualifies  for the Low Income  Housing Tax  Credits.  In  general,  under
Section 42 of the Internal  Revenue  Code,  an owner of  low-income  housing can
receive  the Low Income  Housing Tax 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  California  Low  Income  Housing  Tax  Credit  to be used  against
California taxes otherwise due in each year of a four-year period.  Each Housing
Complex is subject to a 15 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 Tax 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,  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,  dated September 13,
1990 (the "Partnership Agreement"),  will be accomplished promptly at the end of
the  Compliance  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 Tax Credits.

                                       3
<PAGE>
The Partnership  invested in fifteen Local Limited  Partnerships,  none of which
had been sold or otherwise  disposed as of March 31,  2006.  Each of these Local
Limited  Partnerships  owns a Housing  Complex that was eligible for the Federal
Low Income  Housing  Credit and twelve of them were eligible for the  California
Low Income Housing Credit.  Certain Local Limited  Partnerships may also benefit
from additional government programs promoting low- or moderate-income housing.

Certain Risks and Uncertainties

Item 1A.  Risk Factors

Set forth below are the principal risks the Partnership believes are material to
the Limited Partners. The Partnership and the Local Limited Partnerships operate
in a continually changing business environment and, therefore,  new risks emerge
from time to time. This section contains some forward-looking statements. For an
explanation of the qualifications and limitations on forward-looking statements,
see Item 7.

(a)  Risks  arising from the Internal  Revenue Code rules  governing  Low Income
     Housing Tax Credits

     Low Income Housing Tax Credits might not be available. If a Housing Complex
does not satisfy the  requirements of Internal Revenue Code Section 42, then the
Housing Complex will not be eligible for Low Income Housing Tax Credits.

     Low income  housing tax credits might be less than  anticipated.  The Local
General  Partners  will  calculate  the  amount of the Low  Income  Housing  Tax
Credits.  No opinion of counsel will cover the  calculation of the amount of Low
Income Housing Tax Credits. The IRS could challenge the amount of the Low Income
Housing Tax Credits  claimed  for any Housing  Complex  under any of a number of
provisions set forth in Internal Revenue Code Section 42. A successful challenge
by the IRS would  decrease the amount of the Low Income Housing Tax Credits from
the amount paid for by the Partnership.

     Unless a bond is posted or a Treasury  Direct Account is  established,  Low
Income Housing Tax Credits may be recaptured if Housing  Complexes are not owned
and operated for 15 years.  Housing  Complexes must comply with Internal Revenue
Code  Section 42 for the  15-year  Compliance  Period.  Low Income  Housing  Tax
Credits will be recaptured with interest to the extent that a Housing Complex is
not rented as low  income  housing  or in some  other way does not  satisfy  the
requirements of Internal  Revenue Code Section 42 during the Compliance  Period.
For  example,  unless  a  bond  is  posted  or  a  Treasury  Direct  Account  is
established, recapture with interest would occur if:

     o    a Local  Limited  Partnership  disposed  of its  interest in a Housing
          Complex during the Compliance Period, or
     o    the   Partnership   disposed  of  its  interest  in  a  Local  Limited
          Partnership during the Compliance Period.

For these purposes, disposition includes transfer by way of foreclosure.

It will be up to the Partnership to determine  whether to post a bond.  There is
no obligation under the agreements with the Local Limited  Partnerships that the
Local Limited Partnerships must do so.

There can be no assurance that recapture will not occur.  If it does,  recapture
will be a portion of all credits taken in prior years for that Housing  Complex,
plus   interest.   During  the  first  11  years  of  the   Compliance   Period,
non-compliance  results  in  one-third  of the  credits up to that point for the
particular Housing Complex being recaptured, plus interest. Between years 12 and
15, the recapture is phased out ratably.

Sales of Housing  Complexes after 15 years are subject to limitations  which may
impact a Local Limited  Partnership's  ability to sell its Housing Complex. Each
Local Limited  Partnership  executes an extended low income  housing  commitment
with the state in which the Housing Complex is located.  The extended low income
housing commitment states the number of years that the Local Limited Partnership
and any subsequent  owners must rent the Housing  Complex as low income housing.
Under Federal law, the commitment must be for at least 30 years. The commitment,
actually agreed to, may be  significantly  longer than 30 years. In prioritizing
applicants  for Low Income  Housing Tax  Credits,  most  states give  additional
points for commitment periods in excess of 30 years.

                                       4
<PAGE>
On any sale of the Housing Complex during the commitment  period,  the purchaser
would  have to agree to  continue  to rent the  Housing  Complex  as low  income
housing for the duration of the commitment period.  This requirement reduces the
potential market, and possibly the sales price, for the Housing  Complexes.  The
sale of a Housing  Complex may be subject to other  restrictions.  For  example,
Federal  lenders or  subsidizers  may have the right to approve or  disapprove a
purchase of a Housing  Complex.  Accordingly,  there can be no assurance  that a
Local Limited  Partnership will be able to sell its Housing Complex.  Even if it
does so, there can be no assurance that any  significant  amount of cash will be
distributed to the Limited Partners.  As a result, a material portion of the Low
Income  Housing  Tax  Credits  may  represent  a return of the money  originally
invested in the Partnership.

     Limited  Partners  can only use Low Income  Housing  Tax Credits in limited
amounts. The ability of an individual or other non-corporate  Limited Partner to
claim Low Income  Housing Tax Credits on his  individual  tax return is limited.
For  example,  an  individual  Limited  Partner  can use Low Income  Housing Tax
Credits to reduce his tax liability on:

     o    an unlimited  amount of passive income,  which is income from entities
          such as the Partnership, and
     o    $25,000 in income from other sources.

However,  the use of Low Income  Housing  Tax Credits by an  individual  against
these types of income is subject to ordering rules,  which may further limit the
use of Low Income  Housing Tax  Credits.  Some  corporate  Limited  Partners are
subject  to similar  and other  limitations.  They  include  corporations  which
provide personal  services,  and  corporations  which are owned by five or fewer
shareholders.

Any  portion of a Low Income  Housing  Tax Credit  which is allowed to a Limited
Partner under such rules is then  aggregated  with all of the Limited  Partner's
other business credits.  The aggregate is then subject to the general limitation
on all business credits. That limitation provides that a Limited Partner can use
business  credits to offset the Limited  Partner's annual tax liability equal to
$25,000 plus 75% of the Limited  Partner's  tax  liability in excess of $25,000.
However, business credits may not be used to offset any alternative minimum tax.
All of these concepts are extremely complicated.

(b)  Risks  related to  investment  in Local  Limited  Partnerships  and Housing
     Complexes

     Because the  Partnership has few  investments,  each investment will have a
great impact on the  Partnership's  results of  operations.  Any single  Housing
Complex  experiencing  poor  operating  performance,   impairment  of  value  or
recapture of Low Income Housing Tax Credits will have a significant  impact upon
the Partnership as a whole.

     The failure to pay mortgage debt could result in a forced sale of a Housing
Complex. Each Local Limited Partnership  leverages the Partnership's  investment
therein by incurring mortgage debt. A Local Limited Partnership's revenues could
be less than its debt payments and taxes and other  operating  costs. If so, the
Local  Limited  Partnership  would have to use working  capital  reserves,  seek
additional  funds, or suffer a forced sale of its Housing  Complex,  which could
include a  foreclosure.  The same results  could occur if  government  subsidies
ceased. Foreclosure would result in a loss of the Partnership's capital invested
in the Housing  Complex.  Foreclosure  could also  result in a recapture  of Low
Income Housing Tax Credits, and a loss of Low Income Housing Tax Credits for the
year  in  which   the   foreclosure   occurs.   If  the   Housing   Complex   is
highly-leveraged,  a relatively  slight  decrease in the rental  revenues  could
adversely affect the Local Limited Partnership's ability to pay its debt service
requirements.  Mortgage  debt may be  repayable in a  self-amortizing  series of
equal  installments  or with a large balloon  final  payment.  Balloon  payments
maturing  prior to the end of the  anticipated  holding  period for the  Housing
Complex create the risk of a forced sale if the debt cannot be refinanced. There
can be no assurance that additional funds will be available to any Local Limited
Partnership if needed on acceptable terms or at all.

     The Partnership  does not control the Local Limited  Partnerships  and must
rely on the Local General  Partners.  The Local  General  Partners will make all
management  decisions  for  the  Local  Limited  Partnerships  and  the  Housing
Complexes. The Partnership has very limited rights with respect to management of
the Local Limited Partnerships. The Partnership will not be able to exercise any
control  with  respect  to Local  Limited  Partnership  business  decisions  and
operations.
                                       5
<PAGE>
Consequently, the success of the Partnership will depend on the abilities of the
Local General Partners.

     Housing Complexess  subsidized by other government  programs are subject to
additional  rules  which  may make it  difficult  to  operate  and sell  Housing
Complexes.  Some  or  all of  the  Housing  Complexes  receive  or  may  receive
government  financing or operating  subsidies in addition to Low Income  Housing
Tax Credits. The following are risks associated with some such subsidy programs:

     o    Obtaining tenants for the Housing  Complexes.  Government  regulations
          limit the  types of  people  who can rent  subsidized  housing.  These
          regulations may make it more difficult to rent the  residential  units
          in the Housing Complexes.
     o    Obtaining  rent  increases.  In many cases rents can only be increased
          with the prior approval of the subsidizing agency.
     o    Limitations  on cash  distributions.  The  amount  of cash that may be
          distributed to owners of subsidized Housing Complexes is less than the
          amount  that could be earned by the owners of  non-subsidized  Housing
          Complexes.
     o    Limitations on sale or refinancing of the Housing  Complexes.  A Local
          Limited  Partnership  may be unable to sell its Housing  Complex or to
          refinance  its  mortgage  loan  without  the  prior  approval  of  the
          subsidizer.   The   subsidizer  may  withhold  such  approval  in  the
          discretion of the  subsidizer.  Approval may be subject to conditions,
          including  the condition  that the purchaser  continues to operate the
          property as affordable  housing for terms which could be as long as 30
          years or more. In addition, any prepayment of a mortgage may result in
          the assessment of a prepayment penalty.
     o    Limitations  on transfers of interests in Local Limited  Partnerships.
          The  Partnership may be unable to sell its interest in a Local Limited
          Partnership  without  the  prior  approval  of  the  subsidizer.   The
          subsidizer  may  withhold  such  approval  in  the  discretion  of the
          subsidizer. Approval may be subject to conditions.
     o    Limitations  on removal and admission of Local General  Partners.  The
          Partnership  may be unable to remove a Local  General  Partner  from a
          Local Limited  Partnership  except for cause, such as the violation of
          the rules of the subsidizer. Regulations may prohibit the removal of a
          Local General  Partner or permit  removal only with the prior approval
          of the  subsidizer.  Regulations  may  also  require  approval  of the
          admission of a successor  Local General Partner even upon the death or
          other disability of a Local General Partner.
     o    Limitations  on subsidy  payments.  Subsidy  payments  may be fixed in
          amount and subject to annual  legislative  appropriations.  The rental
          revenues  of  a  Housing  Complex,  when  combined  with  the  maximum
          committed subsidy,  may be insufficient to meet obligations.  Congress
          or the state legislature,  as the case may be, may fail to appropriate
          or increase  the  necessary  subsidy.  In those  events,  the mortgage
          lender  could  foreclose  on the  Housing  Complex  unless  a  workout
          arrangement could be negotiated.
     o    Possible changes in applicable regulations. Legislation may be enacted
          which adversely revises provisions of outstanding mortgage loans. Such
          legislation has been enacted in the past.
     o    Limited Partners may not receive  distributions  if Housing  Complexes
          are sold. There is no assurance that Limited Partners will receive any
          cash  distributions from the sale or refinancing of a Housing Complex.
          The price at which a Housing Complex is sold may not be high enough to
          pay the mortgage and other  expenses  which must be paid at such time.
          If that happens,  a Limited  Partner's return may be derived only from
          the Low Income Housing Tax Credits and tax losses.

     Uninsured  casualties  could  result in  losses  and  recapture.  There are
casualties  which are either  uninsurable or not economically  insurable.  These
include earthquakes,  floods, wars and losses relating to hazardous materials or
environmental matters.
                                       6
<PAGE>
If a Housing Complex  experienced an uninsured  casualty,  the Partnership could
lose both its invested capital and anticipated profits in such property. Even if
the casualty were an insured loss, the Local Limited Partnership might be unable
to rebuild  the  destroyed  property.  A portion of prior tax  credits  could be
recaptured and future tax credits could be lost if the Housing  Complex were not
restored within a reasonable period of time. And liability judgments against the
Local Limited Partnership could exceed available insurance proceeds or otherwise
materially  and  adversely  affect the Local  Limited  Partnership.  The cost of
liability  and  casualty  insurance  has  increased  in recent  years.  Casualty
insurance has become more  difficult to obtain and may require large  deductible
amounts.

     Housing Complexes without financing or operating subsidies may be unable to
pay  operating  expenses.  If a Local  Limited  Partnership  were  unable to pay
operating expenses, one result could be a forced sale of its Housing Complex. If
a forced sale occurs during the first 15 years of a Housing  Complex,  a partial
recapture of Low Income Housing Tax Credits could occur. In this regard, some of
the Local Limited Partnerships may own Housing Complexes which have no subsidies
other than Low Income Housing Tax Credits.  Those Housing  Complexes do not have
the benefit of below-market-interest-rate financing or operating subsidies which
often are  important to the  feasibility  of low income  housing.  Those Housing
Complexes  rely  solely  on rents to pay  expenses.  However,  in order  for any
Housing  Complex to be  eligible  for Low Income  Housing Tax  Credits,  it must
restrict the rent which may be charged to tenants.  Over time, the expenses of a
Housing Complex will increase.  If a Local Limited  Partnership  cannot increase
its rents, it may be unable to pay increased operating expenses.

     The Partnership's  investment  protection policies will be worthless if the
net worth of the Local  General  Partners  is not  sufficient  to satisfy  their
obligations.  There is a risk that the Local General  Partners will be unable to
perform their financial obligations to the Partnership.  The General Partner has
not established a minimum net worth  requirement for the Local General Partners.
Rather,  each Local General  Partner  demonstrates a net worth which the General
Partner believes is appropriate under the circumstances. The assets of the Local
General  Partners are likely to consist  primarily  of real estate  holdings and
similar  assets.  The fair market value of these types of assets is difficult to
estimate.  These  types of assets  cannot be readily  liquidated  to satisfy the
financial  guarantees and commitments  which the Local General  Partners make to
the Partnership.  Moreover,  other creditors may have claims on these assets. No
escrow  accounts or other  security  arrangements  will be established to ensure
performance  of a Local  General  Partner's  obligations.  The cost to enforce a
Local General Partner's obligations may be high. If a Local General Partner does
not satisfy its obligations  the  Partnership may have no remedy,  or the remedy
may be limited to removing the Local General  Partner as general  partner of the
Local Limited Partnership.

     Fluctuating  economic  conditions can reduce the value of real estate.  Any
investment  in real  estate  is  subject  to  risks  from  fluctuating  economic
conditions.  These  conditions  can  adversely  affect the  ability to realize a
profit or even to recover invested capital. Among these conditions are:

     o    the general and local job market,
     o    the availability and cost of mortgage financing,
     o    monetary inflation,
     o    tax, environmental, land use and zoning policies,
     o    the supply of and demand for similar properties,
     o    neighborhood conditions,
     o    the availability and cost of utilities and water.

(c)  Tax risks other than those relating to tax credits

In addition to the risks pertaining specifically to tax credits, there are other
Federal income tax risks.  Additional  Federal income tax risks  associated with
the  ownership  of Units and the  operations  of the  Partnership  and the Local
Limited Partnerships include, but are not limited to, the following:

 No  opinion of counsel  as to  certain  matters.  No legal  opinion is
          obtained regarding matters:

     o    the determination of which depends on future factual circumstances,
     o    which are peculiar to individual Limited Partners, or
     o    which are not customarily the subject of an opinion.

                                       7
<PAGE>
The more significant of these matters include:

     o    allocating purchase price among components of a property, particularly
          as between  buildings and fixtures,  the cost of which is depreciable,
          and the underlying land, the cost of which is not depreciable,
     o    characterizing  expenses and payments made to or by the Partnership or
          a Local Limited Partnership,
     o    identifying  the  portion of the costs of any  Housing  Complex  which
          qualify for historic and other tax credits,
     o    applying to any specific  Limited Partner the limitation on the use of
          tax  credits and tax  losses.  Limited  Partners  must  determine  for
          themselves  the  extent  to  which  they can use tax  credits  and tax
          losses, and
     o    the application of the alternative minimum tax to any specific Limited
          Partner,  or the  calculation  of the  alternative  minimum tax by any
          Limited  Partner.  The  alternative  minimum tax could  reduce the tax
          benefits from an investment in the Partnership.

There can be no assurance,  therefore,  that the IRS will not challenge  some of
the tax positions  adopted by the  Partnership.  The courts could sustain an IRS
challenge. An IRS challenge,  if successful,  could have a detrimental effect on
the Partnership's ability to realize its investment objectives.

     Passive activity rules will limit deduction of the Partnership's losses and
impose tax on interest  income.  The Internal Revenue Code imposes limits on the
ability of most investors to claim losses from  investments  in real estate.  An
individual may claim these so-called  passive losses only as an offset to income
from  investments  in real estate or rental  activities.  An individual  may not
claim  passive  losses as an  offset  against  other  types of  income,  such as
salaries,  wages,  dividends and interest.  These  passive  activity  rules will
restrict the ability of most Limited Partners to use losses from the Partnership
as an offset of non-passive income.

 The  Partnership  may earn interest  income on its reserves and loans.  The
passive activity rules generally will categorize  interest as portfolio  income,
and not passive income.  Passive losses cannot be used as an offset to portfolio
income.  Consequently,  a Limited  Partner  could pay tax liability on portfolio
income from the Partnership.

     At risk rules might  limit  deduction  of the  Partnership's  losses.  If a
significant portion of the financing used to purchase Housing Complexes does not
consist of  qualified  nonrecourse  financing,  the "at risk" rules will limit a
Limited Partner's ability to claim Partnership  losses to the amount the Limited
Partner invests in the Partnership.  The "at risk" rules of the Internal Revenue
Code generally limit a Limited Partner's ability to deduct Partnership losses to
the sum of:

     o    the amount of cash the Limited Partner invests in the Partnership, and
     o    the  Limited  Partner's  share of  Partnership  qualified  nonrecourse
          financing.

Qualified  nonrecourse  financing is non-convertible,  nonrecourse debt which is
borrowed  from a  government,  or  with  exceptions,  any  person  actively  and
regularly engaged in the business of lending money.

Tax  liability  on sale of  Housing  Complex or Local  Limited  Partnership
Interest  may  exceed the cash  available  from the sale.  When a Local  Limited
Partnership  sells a Housing  Complex it will recognize gain. Such gain is equal
to the difference between:

     o    the sales  proceeds  plus the  amount of  indebtedness  secured by the
          Housing Complex, and
     o    the adjusted basis for the Housing  Complex.  The adjusted basis for a
          Housing Complex is its original cost, plus capital expenditures, minus
          depreciation.
                                       8
<PAGE>
Similarly, when the Partnership sells an interest in a Local Limited Partnership
the  Partnership  will  recognize  gain.  Such  gain is equal to the  difference
between:

     o    the  sales  proceeds  plus the  Partnership's  share of the  amount of
          indebtedness secured by the Housing Complex, and
     o    the  adjusted  basis  for the  interest.  The  adjusted  basis  for an
          interest  in a Local  Limited  Partnership  is the amount paid for the
          interest,  plus income allocations and cash  distributions,  less loss
          allocations.

Accordingly,  gain will be increased by the depreciation deductions taken during
the holding period for the Housing  Complex.  In some cases,  a Limited  Partner
could have a tax liability from a sale greater than the cash  distributed to the
Limited Partner from the sale.

     Alternative  minimum tax  liability  could reduce a Limited  Partner's  tax
benefits. If a Limited Partner pays alternative minimum tax, the Limited Partner
could suffer a reduction in benefits from an investment in the Partnership.  The
application of the alternative  minimum tax is personal to each Limited Partner.
Tax credits may not be utilized to reduce alternative minimum tax liability.

 IRS  could  audit  the  returns  of  the  Partnership,  the  Local  Limited
Partnerships  or the Limited  Partners.  The IRS can audit the  Partnership or a
Local Limited  Partnership  at the entity level with regard to issues  affecting
the  entity.  The IRS does not have to audit  each  Limited  Partner in order to
challenge a position taken by the  Partnership  or a Local Limited  Partnership.
Similarly,  only  one  judicial  proceeding  can  be  filed  to  contest  an IRS
determination.  A contest  by the  Partnership  of any IRS  determination  might
result in high legal fees.

     An audit of the  Partnership  or a Local  Limited  Partnership  also  could
result in an audit of a Limited  Partner.  An audit of a Limited  Partner's  tax
returns  could  result in  adjustments  both to items  that are  related  to the
Partnership and to unrelated  items.  The Limited Partner could then be required
to file amended tax returns and pay additional tax plus  interest and penalties.

     A successful IRS challenge to tax allocations of the Partnership or a Local
Limited  Partnership  would  reduce the tax  benefits  of an  investment  in the
Partnership.  Under the Internal  Revenue  Code, a  partnership's  allocation of
income, gains, deductions, losses and tax credits must have substantial economic
effect.   Substantial  economic  effect  is  a  highly-technical   concept.  The
fundamental  principle is two-fold.  If a partner will benefit economically from
an item of  partnership  income or gain,  that item must be  allocated to him so
that he bears the correlative tax burden.  Conversely,  if a partner will suffer
economically  from an item of partnership  deduction or loss,  that item must be
allocated  to  him  so  that  he  bears  the  correlative  tax  benefit.   If  a
partnership's  allocations do not have  substantial  economic  effect,  then the
partnership's tax items are allocated in accordance with each partner's interest
in the  partnership.  The  IRS  might  challenge  the  allocations  made  by the
Partnership:

     o    between the Limited Partners and the General Partner,
     o    among the Limited Partners, or
     o    between the Partnership and a Local General Partner.

If any allocations were successfully  challenged,  a greater share of the income
or gain or a lesser share of the losses or tax credits might be allocated to the
Limited  Partners.  This  would  increase  the tax  liability  or reduce the tax
benefits to the Limited Partners.

     Tax  liabilities  could  arise in later years of the  Partnership.  After a
period  of  years  following  commencement  of  operations  by a  Local  Limited
Partnership,  the Local Limited  Partnership  may generate  profits  rather than
losses.  A Limited Partner would have tax liability on his share of such profits
unless he could offset the income with:

     o    unused passive losses from the Partnership or other investments, or
     o    current passive losses from other investments.

In such circumstances, the Limited Partner would not receive a cash distribution
from the Partnership with which to pay any tax liability.

                                       9
<PAGE>
     IRS challenge to tax treatment of expenditures could reduce losses. The IRS
may  contend  that  fees and  payments  of the  Partnership  or a Local  Limited
Partnership:

     o    should be deductible over a longer period  of time or in a later year,
     o    are excessive and may not be capitalized or deducted in full,
     o    should be capitalized and not deducted, or
     o    may not be included as part of the basis for computing tax credits.

Any such contention by the IRS could adversely impact, among other things:

     o    the  eligible  basis of a Housing  Complex  used to compute Low Income
          Housing Tax Credits,
     o    the adjusted basis of a Housing Complex used  to compute depreciation,
     o    the correct deduction of fees,
     o    the  amortization of organization  and offering  expenses and start-up
          expenditures.

If the IRS were successful in any such  contention,  the anticipated tax credits
and losses of the Partnership would be reduced, perhaps substantially.

     Changes  in tax law  might  reduce  the  value of Low  Income  Housing  Tax
Credits.  Although all Low Income Housing Tax Credits are allocated to a Housing
Complex at commencement of the 10-year credit period,  there can be no assurance
that  future   legislation  may  not  adversely  affect  an  investment  in  the
Partnership. For example, legislation could reduce or eliminate the value of Low
Income  Housing Tax Credits.  In this regard,  before 1986,  the  principal  tax
benefit of an investment in low income housing was tax losses.  These tax losses
generally  were  used to reduce  an  investor's  income  from all  sources  on a
dollar-for-dollar basis. Investments in low income housing were made in reliance
on the availability of such tax benefits.  However,  tax legislation  enacted in
1986 severely curtailed deduction of such losses.

     New administrative or judicial  interpretations of the law might reduce the
value of tax  credits.  Many of the  provisions  of the  Internal  Revenue  Code
related  to low  income  housing  and  real  estate  investments  have  not been
interpreted by the IRS in regulations,  rulings or public  announcements,  or by
the courts.  In the future,  these provisions may be interpreted or clarified by
the IRS or the  courts  in a manner  adverse  to the  Partnership  or the  Local
Limited Partnerships.  The IRS constantly reviews the Federal tax rules, and can
revise its  interpretations  of established  concepts.  Any such revisions could
reduce  or  eliminate  tax  benefits   associated  with  an  investment  in  the
Partnership.

     State income tax laws may adversely affect the Limited Partners.  A Limited
Partner  may be  required  to file  income tax returns and be subject to tax and
withholding  in each  state or local  taxing  jurisdiction  in which:  a Housing
Complex is located,  the Partnership or a Local Limited  Partnership  engages in
business  activities,  or the Limited Partner is a resident.  Corporate  Limited
Partners may be required to pay state franchise taxes.

     The tax treatment of particular  items under state or local income tax laws
may vary  materially  from the  Federal  income  tax  treatment  of such  items.
Nonetheless,  many of the Federal income tax risks associated with an investment
in the  Partnership  may also apply  under  state or local  income tax law.  The
Partnership may be required to withhold state taxes from distributions or income
allocations to Limited Partners in some instances.

(d)      Risks related to the Partnership and the Partnership Agreement

     The  Partnership may be unable to timely provide  financial  reports to the
Limited   Partners  which  would  adversely  affect  their  ability  to  monitor
Partnership  operations.  Each  Local  General  Partner  is  required  to retain
independent  public  accountants  and to  report  financial  information  to the
Partnership  in a timely  manner.  There cannot be any assurance  that the Local
General Partners will satisfy these  obligations.  If not, the Partnership would
be unable to provide to the Limited  Partners in a timely  manner its  financial
statements and other reports. That would impact the Limited Partners' ability to
monitor  Partnership  operations.
                                       10
<PAGE>
The Partnership's  failure to meet its filing  requirements under the Securities
Exchange Act of 1934 could reduce the liquidity for the Partnership Units due to
the unavailability of public information concerning the Partnership. The failure
to file could also result in sanctions  imposed by the SEC. Any defense  mounted
by the  Partnership in the face of such  sanctions  could entail legal and other
fees, which would diminish cash reserves.

     Lack of liquidity of  investment.  It is unlikely that a public market will
develop for the purchase and sale of  Partnership  Units.  Accordingly,  Limited
Partners  may not be  able to sell  their  Partnership  Units  promptly  or at a
reasonable  price.  Partnership  Units  should  be  considered  as  a  long-term
investment  because  the  Partnership  is  unlikely  to sell any  Local  Limited
Partnership  Interests  for at least  15  years.  Partnership  Units  cannot  be
transferred to tax-exempt or foreign  entities,  or through a secondary  market.
The General Partner can deny  effectiveness  of a transfer if necessary to avoid
adverse  tax  consequences  from the  transfer.  The  General  Partner  does not
anticipate that any Partnership Units will be redeemed by the Partnership.

     The Limited Partners will not control the Partnership and must rely totally
on the General Partner.  The General Partner will make all management  decisions
for the Partnership.  Management  decisions include exercising powers granted to
the Partnership by a Local Limited  Partnership.  Limited Partners have no right
or power to take part in Partnership management.

Individual  Limited Partners will have no recourse if they disagree with actions
authorized  by a vote of the  majority.  The  Partnership  Agreement  grants  to
Limited Partners owning more than 50% of the Partnership Units the right to:

     o    remove the General Partner and elect a replacement general partner,
     o    amend the Partnership Agreement,
     o    terminate the Partnership.

Accordingly, a majority-in-interest of the Limited Partners could cause any such
events to occur,  even if Limited  Partners owning 49% of the Partnership  Units
opposed such action.

     Limitations  on liability of the General  Partner to the  Partnership.  The
ability of Limited  Partners to sue the General  Partner  and it  affiliates  is
subject to limitations.  The Partnership  Agreement  limits the liability of the
General Partner and it affiliates to the Limited  Partners.  The General Partner
and it  affiliates  will not be  liable  to the  Limited  Partners  for acts and
omissions:  performed  or omitted in good faith,  and  performed or omitted in a
manner which the General Partner  reasonably  believed to be within the scope of
its authority and in the best  interest of the Limited  Partners,  provided such
conduct did not constitute negligence or misconduct.

Therefore,  Limited  Partners may be less able to sue the General Partner and it
affiliates  than would be the case if such  provisions  were not included in the
Partnership Agreement.

     Payment of fees to the General  Partner  and its  affiliates  reduces  cash
available for investment in Local Limited Partnerships.  The General Partner and
it affiliates perform many services for the Partnership.  They are paid fees for
these services,  which reduce the amount of the cash available for investment in
Local Limited Partnerships. Accordingly, an investor investing directly in a low
income  housing  Housing  Complex  would  have a greater  amount  available  for
investment  than  an  investor  investing  in low  income  housing  through  the
Partnership.

Associates and its affiliates are serving as the general  partners of many other
partnerships.  Depending on their corporate area of responsibility, the officers
of  Associates  initially  devote  approximately  5% to 50% of their time to the
Partnership.  These  individuals  spend  significantly  less time devoted to the
Partnership after the investment of the  Partnership's  capital in Local Limited
Partnerships.
                                       11
<PAGE>
     The  interests of Limited  Partners may conflict  with the interests of the
General  Partner and it  affiliates.  The General  Partner and it affiliates are
committed to the  management  of more than 100 other limited  partnerships  that
have investments similar to those of the Partnership. The General Partner and it
affiliates receive substantial compensation from the Partnership.

     Anticipated  future and existing cash resources of the  Partnership are not
sufficient   to  pay  existing   liabilities   of  the   Partnership.   However,
substantially all of the existing  liabilities of the Partnership are payable to
the General  Partner and/or its  affiliates.  Though the amounts  payable to the
General Partner and/or its affiliates are contractually  currently payable,  the
Partnership  anticipates that the General Partner and/or its affiliates will not
require the payment of these contractual  obligations until capital reserves are
in excess of the aggregate of then  existing  contractual  obligations  and then
anticipated future foreseeable  obligations of the Partnership.  The Partnership
would be adversely  affected  should the General  Partner  and/or its affiliates
demand current  payment of the existing  contractual  obligations and or suspend
services for this or any other reason.

Item 1B.  Unresolved Staff Comments

NONE

Exit Strategy

The IRS  Compliance  Period for  low-income  housing  tax credit  properties  is
generally  15  years  following   construction  or  rehabilitation   completion.
Associates was one of the first in the industry to offer syndicated  investments
in Low Income Housing Tax Credits.  The initial  programs are  completing  their
compliance periods.

With that in mind,  the General  Partner is continuing its review of the Housing
Complexes,  with special  emphasis on the more mature Housing  Complexes such as
any that have satisfied the IRS compliance  requirements.  The review  considers
many factors, including extended use requirements (such as those due to mortgage
restrictions  or state  compliance  agreements),  the  condition  of the Housing
Complexes, and the tax consequences to the Limited Partners from the sale of the
Housing Complexes.

Upon  identifying  those  Housing  Complexes  with the highest  potential  for a
successful sale, refinancing or syndication,  the Partnership expects to proceed
with  efforts to  liquidate  them.  The  objective  is to  maximize  the Limited
Partners'  return  wherever   possible  and,   ultimately,   to  wind  down  the
Partnership.  Local Limited Partnership interests may be disposed of any time by
the  General  Partner  in its  discretion.  As of March  31,  2006,  no  Housing
Complexes have been selected for disposition.  While  liquidation of the Housing
Complexes  continue to be evaluated,  the dissolution of the Partnership was not
imminent as of March 31, 2006 and  therefore  the  Partnership  continues  to be
accounted for as a going concern.

As of March 31, 2006, no Housing Complexes had been selected for disposition. As
of March 31, 2006 all the Local Limited  Partnerships  had not yet completed the
15-year compliance period. Subsequent to year-end the Partnership identified the
Housing Complex of one Local Limited  Partnership,  Ukiah Terrace,  a California
limited  partnership,  for disposition.  Ukiah Terrace has completed its 15-year
compliance  period as of December 31,  2006.  Preliminary  consent  solicitation
materials were filed with the SEC on June 6 and 14, 2007.

Properties Identified for Disposition

The  Partnership  has  identified  the Housing  Complexes  of one Local  Limited
Partnership,  Ukiah Terrace,  a California  limited  partnership,  ("Ukiah") for
disposition. Ukiah owns the Ukiah Terrace Apartments (the "Property") located in
Ukiah, California. Consistent with the investment objectives of the Partnership,
the  Property  qualified  for Federal low income  housing tax credits  under the
Internal Revenue Code for a 10-year period.  The credit period has expired,  and
no further  credits are being  generated by the  Property.  The 15-year  Federal
compliance period has also expired, so there would be no credit recapture upon a
transfer of the Property.

On June 6 and 14, 2007, the Partnership filed preliminary  consent  solicitation
materials with the Securities and Exchange Commission  regarding the sale of the
Property.  Definitive materials have not been filed with the SEC or disseminated
to the Partnership's Limited Partners.

Item 2.  Properties

Through its investments in Local Limited  Partnerships,  the  Partnership  holds
indirect  ownership  interests in the Housing  Complexes.  The  following  table
reflects the status of the fifteen Housing  Complexes as of the dates or for the
periods indicated:
                                       12
<PAGE>
<TABLE>
<CAPTION>
                                                      -------------------------------- ---------------------------------------------
                                                             As of March 31, 2006                   As of December 31, 2005
                                                      -------------------------------- ---------------------------------------------
                                                         Partnership's                                   Estimated         Mortgage
                                                       Total Investment  Amount of                      Aggregate Low    Balances of
Local Limited                           General        in Local Limited Investment  Number of          Income Housing  Local Limited
Partnership Name       Location         Partner Name     Partnerships   Paid to Date  Units  Occupancy Tax Credits (1)  Partnership
------------------------------------------------------------------------------------------------------------------------------------
<S>                <C>              <C>                <C>           <C>           <C>     <C>      <C>             <C>
601 Main                 Stockton,     Daniels C. Louge   $1,656,000    $1,656,000     165     88%      $4,080,000       $3,894,000
Street Investors         California

ADI Development          Delhi,        Anthony Donovan       699,000       699,000      31    100%       1,757,000        1,173,000
Partners                 California

Bayless Garden           Red Bluff,    Douglas W. Young    1,110,000     1,110,000      46     98%       2,741,000        1,226,000
Apartments Investors     California

Blackberry Oaks, Ltd     Lodi,         Bonita Homes          463,000       463,000      42    100%       1,063,000        1,875,000
                         California    Incorporated

Jacob's Square           Exeter,       Philip R. Hammond,  1,324,000     1,324,000      45     98%       2,933,000        1,538,000
                         California    Jr. and Diane M.
                                       Hammond

Mecca Apartments II      Mecca,        Sam Jack, Jr. and   2,200,000     2,200,000      60     90%       5,183,000        2,470,000
                         California    Sam Jack and
                                       Associates

Nevada Meadows           Grass Valley, Thomas G. Larson,     459,000       459,000      34    100%       1,030,000        1,877,000
                         California    William H. Larson
                                       and Raymond L.
                                       Tetzlaff

Northwest Tulare         Ivanhoe,      Philip R. Hammond,  1,226,000     1,226,000      54     94%       2,950,000        1,706,000
Associates               California    Jr. and Diane M.
                                       Hammond

Orland Associates        Orland,       Richard E. Huffman    432,000       432,000      40     98%         972,000        1,678,000
                         California    and Robert A. Ginno
</TABLE>
                                       13
<PAGE>
<TABLE>
<CAPTION>
                                                      -------------------------------- ---------------------------------------------
                                                             As of March 31, 2006                   As of December 31, 2005
                                                      -------------------------------- ---------------------------------------------
                                                         Partnership's                                    Estimated        Mortgage
                                                       Total Investment  Amount of                      Aggregate Low    Balances of
Local Limited                           General        in Local Limited Investment  Number of          Income Housing  Local Limited
Partnership Name       Location         Partner Name     Partnerships   Paid to Date  Units  Occupancy Tax Credits (1)   Partnership
------------------------------------------------------------------------------------------------------------------------------------
<S>              <C>                  <C>                   <C>       <C>          <C>    <C>          <C>            <C>
Pine Gate Limited  Ahoskie, California   Regency Investment
Partnership                              Associates, Inc.,
                                         Boyd Management,
                                         Inc. and Gordon L.
                                         Blackwell            272,000     272,000      56       100%         611,000       1,413,000

Silver Birch       Huron, California     Philip R. Hammond,
Associates                               Jr. and Diane M.
                                         Hammond              378,000     378,000      35        94%       1,131,000       1,311,000

Twin Pines         Groveland, California Donald S. Kavanagh
Apartments                               and John N. Brezzo 1,278,000   1,278,000      39       100%       3,055,000       1,789,000
Associates

Ukiah Terrace(2)   Ukiah, California     Thomas G. Larson,
                                         William H. Larson
                                         and Raymond L.
                                         Tetzlaff             349,000     349,000      41       100%         825,000       1,740,000

Woodlake Garden    Woodlake, California  David J. Michael
Apartments                               and Pamela J.        548,000     548,000      48        88%       1,374,000       1,862,000
                                         Michael

Yucca-Warren       Joshua Tree,          WNC & Associates,
Vista Associates   California            Inc.                 520,000     520,000      50        98%       1,251,000       2,118,000
                                                           ----------  ----------     ---        --       ----------      ----------
                                                          $12,914,000 $12,914,000     786        96%     $30,956,000     $27,670,000
                                                          ===========  ==========     ===        ==      ===========     ===========
</TABLE>
(1)  Represents  aggregate  anticipated  Low Income  Housing  Tax  Credits to be
received  over the 10 year credit  period if the Housing  complexes are retained
and rented in compliance  with credit rules for the 15-year  Compliance  Period.
Substantially  all of the  anticipated  Low Income Housing Tax Credits have been
received from the Local Limited Partnerships.  Accordingly, the Partnership does
not  anticipate a  significant  amount of Low Income  Housing Tax Credits  being
allocated to the Limited Partners in the future.

(2) Identified on June 6, 2007 for dispostion.

                                       14
<PAGE>
<TABLE>
<CAPTION>
                                             ----------------------------------------------------------------------
                                                          For the year ended December 31, 2005
                                             ----------------------------------------------------------------------
                                                                                                     Low Income
                                                                                                     Housing Tax
                                                                                                      Credits
          Local Limited                                                                             Allocated to
          Partnership Name                    Rental Income              Net Income (Loss)          Partnership
      -------------------------------------------------------------------------------------------------------------
<S>                                           <C>                   <C>                      <C>
      601 Main Street Investors                   $       490,000      $   (334,000)                    99%

      ADI Development Partners                            164,000           (57,000)                    90%

      Bayless Garden Apartments Investors                 199,000           (96,000)                    99%

      Blackberry Oaks, Ltd                                288,000             2,000                     99%

      Jacob's Square                                      208,000          (123,000)                    99%

      Mecca Apartments II                                 303,000          (132,000)                    99%

      Nevada Meadows                                      231,000           (99,000)                    99%

      Northwest Tulare Associates                         243,000           (44,000)                    99%

      Orland Associates                                   269,000           (34,000)                    99%

      Pine Gate Limited Partnership                       236,000           (34,000)                    99%

      Silver Birch Associates                             175,000           (30,000)                    99%

      Twin Pines Apartments Associates                    192,000          (186,000)                    99%

      Ukiah Terrace                                       210,000           (53,000)                    99%

      Woodlake Garden Apartments                          355,000            16,000                     95%

      Yucca-Warren Vista Associates, Ltd                  312,000           (14,000)                    99%
                                             ---------------------      --------------
                                                  $     3,875,000      $ (1,218,000)
                                             =====================      ==============
</TABLE>
                                       15
<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, Related Stockholder Matters and
         Issuer Purchases of Equity Securities

Item 5a.

(a)  The  Partnership  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  Partnership  Unit and none
     exists.  Partnership Units can be assigned or otherwise transferred only if
     certain requirements in the Partnership Agreement are satisfied.

(b)  At March 31, 2006,  there were 1,198  Limited  Partners and 20 assignees of
     Partnership Units who were not admitted as 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.  Any such distributions would be
     made in accordance with the terms of the Partnership Agreement.

(d)  No securities are authorized for issuance by the  Partnership  under equity
     compensation plans.

(e)  No unregistered  securities  were sold by the  Partnership  during the year
     ended March 31, 2006.

Item 5b. Use of Proceeds

NOT APPLICABLE

Item 5c. Purchases of Equity Securities by the Issuer  and Affiliated Purchasers

NONE

                                       16
<PAGE>
Item 6.  Selected Financial Data

Selected balance sheet information for the Partnership is as follows:
<TABLE>
<CAPTION>
                                                            March 31,
                              ------------------------------------------------------------------
                                2006         2005         2004          2003           2002
                              ----------   ----------   ----------   ------------   ------------
<S>                         <C>          <C>          <C>          <C>            <C>
ASSETS

Cash and cash equivalents    $   106,445  $   183,262  $   206,876  $    220,039   $     257,975
Investments in Local Limited
   Partnerships, net                  -        86,215    1,546,722     2,675,025       3,494,236
Due from affiliates                   -             -        3,646         3,646           3,646
                              ----------   ----------   ----------     ----------     ----------
                             $   106,445  $  269,477   $ 1,757,244  $  2,898,710   $   3,755,857
                              ==========   ==========   ==========   ============   ============
LIABILITIES
Accrued fees and expenses
  due to General Partner and
  affiliates                 $ 2,384,670  $ 2,197,622  $ 1,997,095  $  1,816,544   $   1,631,958

PARTNERS' EQUITY
(DEFICIT)                     (2,278,225)  (1,928,145)    (239,851)    1,082,166       2,123,899
                              ----------   ----------   ----------   ------------   ------------
                             $   106,445  $   269,477  $ 1,757,244  $  2,898,710   $   3,755,857
                              ==========   ==========   ==========   ============   ============
</TABLE>
Selected  results  of  operations,  cash  flows  and other  information  for the
Partnership are as follows:
<TABLE>
<CAPTION>
                                                   For the Years Ended
                                                        March 31,
                          ---------------------------------------------------------------------
                             2006         2005         2004          2003             2002
                          -----------  -----------   ----------   -----------   ---------------
<S>                    <C>           <C>          <C>             <C>           <C>
Loss from operations
(Note 1)                $  (263,867) $ (1,302,119) $   (991,037)   $   (289,638) $   (337,782)
Equity in losses of
 Local Limited Partnership  (86,213)     (386,175)     (330,980)       (752,095)     (823,047)
                          -----------  -----------   ----------     ----------    ------------
Net loss                $  (350,080) $ (1,688,294) $ (1,322,017)   $ (1,041,733) $ (1,160,829)
                          ===========  ===========   ==========    ============= =============
Net loss allocated to:
  General Partner       $    (3,501) $    (16,882) $    (13,220)   $    (10,417) $    (11,608)
                          ===========  ===========   ==========    ============= =============
  Limited Partners      $  (346,579) $ (1,671,412) $ (1,308,797)   $ (1,031,316) $ (1,149,221)
                          ===========  ===========   ==========    ============= =============
Net loss per
 Partnership Unit       $    (19.55) $     (94.29) $     (73.83)   $     (58.18) $     (64.83)
                          ===========  ===========   ==========    ============= =============
Outstanding weighted
  Partnership Units          17,726        17,726        17,726          17,726        17,726
                          ===========  ===========   ==========    ============= =============
</TABLE>
Note 1 - Loss from  operations for the year ended March 31, 2006,  2005 and 2004
includes  a charge  for  impairment  losses  on  investments  in  Local  Limited
Partnerships  of $0,  $1,054,476 and $744,836, respectively.  (See Note 2 to the
financial statements.)
                                       17
<PAGE>
<TABLE>
<CAPTION>
                                           For the Years Ended
                                                 March 31,
                          -------------------------------------------------------------
                             2006         2005         2004        2003         2002
                          -----------  -----------  ----------  ----------   ----------
<S>                     <C>          <C>          <C>          <C>         <C>
Net cash provided by
 (used in):
   Operating activities $  (76,817)   $  (26,714)  $  (18,466)  $  (51,873) $   (44,975)
   Investing activities          -         3,100        5,303       13,937       21,425
                          -----------  -----------  ----------  ----------   ------------
Net decrease in cash
  and cash equivalents     (76,817)      (23,614)     (13,163)     (37,936)     (23,550)

Cash and cash
  equivalents,
  beginning of period      183,262       206,876       220,039     257,975      281,525
                          -----------  -----------  ----------  ----------   ----------
Cash and cash
  equivalents, end of
  period                 $ 106,445    $  183,262   $   206,876  $  220,039  $   257,975
                          ===========  ===========  ==========  ==========   ==========
</TABLE>

Low Income  Housing  Tax Credits  per  Partnership  Unit were as follows for the
years ended December 31:
<TABLE>
<CAPTION>
                                     2005            2004             2003             2002            2001
                                 -------------   -------------    -------------    -------------   --------------
<S>                           <C>             <C>              <C>              <C>             <C>
    Federal                    $           10  $           33   $           36   $           80  $           114

    State                                   -               -                -                -                -
                                 -------------   -------------    -------------    -------------   --------------
    Total                      $           10  $           33   $           36   $           80  $           114
                                 =============   =============    =============    =============   ==============
</TABLE>
                                       18
<PAGE>
Item 7. Management's  Discussion and Analysis of Financial Condition and Results
        of Operations

Forward Looking Statements

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

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

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

Critical Accounting Policies and Certain Risks and Uncertainties

The   Partnership   believes  that  the  following   discussion   addresses  the
Partnership's most significant accounting policies,  which are the most critical
to  aid  in  fully  understanding  and  evaluating  the  Partnership's  reported
financial results, and certain of the Partnership's risks and uncertainties.

Use of Estimates

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America 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.
                                       19
<PAGE>
Method of Accounting for Investments in Local Limited Partnerships

The Partnership accounts for its investments in Local Limited Partnerships using
the equity method of accounting,  whereby the Partnership adjusts its investment
balance for its share of the Local Limited  Partnerships'  results of operations
and for any  contributions  made and  distributions  received.  The  Partnership
reviews the  carrying  amount of an  individual  investment  in a Local  Limited
Partnership for possible  impairment whenever events or changes in circumstances
indicate that the carrying  amount of such  investment  may not be  recoverable.
Recoverability  of such investment is measured by the estimated value derived by
management,  generally  consisting of the sum of the remaining future Low Income
Housing  Tax  Credits  estimated  to be  allocable  to the  Partnership  and the
estimated  residual value to the Partnership.  If an investment is considered to
be impaired, the Partnership reduces the carrying value of its investment in any
such Local Limited  Partnership.  The  accounting  policies of the Local Limited
Partnerships,  generally,  are  expected  to be  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.

"Equity in losses of Local  Limited  Partnerships"  for each year ended March 31
have been recorded by the Partnership  based on nine months of reported  results
provided by the Local Limited  Partnerships  for each year ended December 31 and
on  three  months  of  results  estimated  by  management  of  the  Partnership.
Management's  estimate  for the  three-month  period is based on  either  actual
un-audited  results  reported by the Local  Limited  Partnerships  or historical
trends in the operations of the Local Limited Partnerships. In subsequent annual
financial  statements,  upon receiving the actual annual results reported by the
Local Limited  Partnerships,  management reverses its prior estimate and records
the actual results reported by the Local Limited Partnerships.  Equity in losses
from  the  Local  Limited  Partnerships  allocated  to the  Partnership  are not
recognized to the extent that the  investment  balance  would be adjusted  below
zero.  As soon as the  investment  balance  reaches  zero,  amortization  of the
related  costs of acquiring  the  investment  are  accelerated  to the extent of
losses available.

Distributions  received from the Local Limited Partnerships are accounted for as
a  reduction  of  the  investment  balance.  Distributions  received  after  the
investment has reached zero are recognized as distribution  income. 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.

Registrant does not consolidate the accounts and activities of the Local Limited
Partnerships  which are Variable  Interest  Entities under Financial  Accounting
Standards  Board  Interpretation  No.  46-Revised,  "Consolidation  of  Variable
Interest   Entities",   because   Registrant  is  not   considered  the  primary
beneficiary.  Registrant's  balance in investment in Local Limited  Partnerships
represents  the maximum  exposure to loss in connection  with such  investments.
Registrant's  exposure to loss on the Local Limited  Partnership is mitigated by
the condition and financial  performance of the underlying  Housing Complexes as
well as the strength of the local general partners.

Income Taxes

No provision for income taxes has been  recorded in the financial  statements as
any  liabilities  and or benefits  for income  taxes flow to the partners of the
Partnership and are their obligations and/or benefits.  For income tax purposes,
the Partnership reports on a calendar year basis.

Certain Risks and Uncertainties

See item 1A for a discussion of risks regarding the Partnership.

Substantially  all of the Low  Income  Housing  Tax  Credits  anticipated  to be
realized from the Local Limited Partnerships have been realized. The Partnership
does not anticipate  being allocated a significant  amount of Low Income Housing
Tax Credits from the Local Limited  Partnerships in the future.  Until the Local
Limited  Partnerships  have  completed the 15 year Low Income Housing Tax Credit
compliance  period  risks  exist for  potential  recapture  of prior Low  Income
Housing Tax Credits.

To date, 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.

                                       20
<PAGE>
If additional  capital  contributions  are not made when they are required,  the
Partnership's  investment in certain of such Local Limited Partnerships could be
lost,  and the loss and recapture of the related Low Income  Housing Tax Credits
could occur.

Anticipated  future and  existing  cash  resources  of the  Partnership  are not
sufficient   to  pay  existing   liabilities   of  the   Partnership.   However,
substantially all of the existing  liabilities of the Partnership are payable to
the General  Partner and/or its  affiliates.  Though the amounts  payable to the
General Partner and/or its affiliates are contractually  currently payable,  the
Partnership  anticipates that the General Partner and/or its affiliates will not
require the payment of these contractual  obligations until capital reserves are
in excess of the aggregate of then  existing  contractual  obligations  and then
anticipated future foreseeable  obligations of the Partnership.  The Partnership
would be adversely  affected  should the General  Partner  and/or its affiliates
demand current  payment of the existing  contractual  obligations and or suspend
services for this or any other reason.

Financial Condition

The Partnership's  assets at March 31, 2006 consisted primarily of approximately
$106,000 in cash and cash  equivalents.  Liabilities  at March 31, 2006  totaled
approximately  $2,385,000 which consisted primarily of accrued annual management
fees due to the General Partner and/or affiliates. (See "Future Contractual Cash
Obligations" below.)

Results of Operations

Year  Ended  March  31,  2006   Compared  to  Year  Ended  March  31,  2005  The
Partnership's  net  loss for the  year  ended  March  31,  2006 was  $(350,000),
reflecting  a  decrease  of  $1,338,000   from  the  net  loss  of  $(1,688,000)
experienced  for the year ended  March 31,  2005.  The  decrease  in net loss is
largely due to a decrease in loss from  operations  of  $1,038,000  for the year
ended March 31, 2006 compared to the year ended March 31, 2005.  The decrease in
loss from operations was primarily caused by a $1,054,000 decrease in impairment
loss.  The impairment  loss was due to the fact that the net investment  balance
exceeded the remaining tax credits along with any residual value in five limited
partnerships  for the year ending  December 31, 2004.  Along with the impairment
loss there was a decrease of $17,000 in  amortization  of  acquisition  fees and
costs,   an  increase  of   $(33,000)   in  write-off  of  advances  to  limited
partnerships,  a $1,000  decrease  in other  expenses  a  $(5,000)  increase  in
accounting fees. Along with an increase in total income of $1,000 in addition to
the loss  from  operations  there  was a  decrease  of equity in losses of Local
Limited  Partnerships of $300,000 to $(86,000) for the year ended March 31, 2006
from  $(386,000)  for the year ended  March 31,  2005. The decrease in equity in
losses of Local Limited Partnerships is primarily due to not recognizing certain
losses of the Local Limited Partnerships.  The investments in such Local Limited
Partnerships  had  reached  zero at March  31,  2005.  Since  the  Partnership's
liability  with  respect  to its  investments  is  limited,  losses in excess of
investments are not recognized. This decrease was offset by the reduction of the
respective  net  acquisition  fee  component  of  investments  in Local  Limited
Partnerships to zero for those Local Limited  Partnerships which would otherwise
be below a zero balance.

Year  Ended  March  31,  2005   Compared  to  Year  Ended  March  31,  2004  The
Partnership's  net loss for the year  ended  March  31,  2005 was  $(1,688,000),
reflecting  an  increase  of  $(366,000)  from  the  net  loss  of  $(1,322,000)
experienced  for the year ended  March 31,  2004.  The  increase  in net loss is
largely due to an increase in loss from  operations of  $(311,000)  for the year
ended March 31, 2005 compared to the year ended March 31, 2004.  The increase in
loss from operations was primarily caused by a $(310,000) increase in impairment
loss.  The impairment  loss is due to the fact that the net  investment  balance
exceeded the remaining tax credits along with any residual value in five limited
partnerships  for the years ending December 31, 2005 and 2004.  There was also a
decrease of $30,000 in amortization  of acquisition  fees and costs, an increase
of $(3,000) in write-off of advances to affiliates, a $(2,000) increase in other
expenses  along with a decrease in total income of $(25,000.) In addition to the
loss from  operations  there  was an  increase  of  equity in losses of  limited
partnerships  of $(55,000) to $(386,000)  for the year ended March 31, 2005 from
$(331,000) for the year ended March 31, 2004.

Liquidity and Capital Resources

Year Ended  March 31,  2006  Compared to Year Ended March 31, 2005 Net cash used
during the year ended  March 31, 2006 was  $(77,000),  compared to net cash used
for the year ended March 31, 2005 of $(24,000). The change was due to a decrease
in  distributions  received from Local Limited  Partnerships of $ (3,000) in the
year ended March 31, 2006.  In addition,  net cash used in operating  activities
increased  $(50,000) due primarily to a decrease in  amortization  of $ (17,000)

                                       21
<PAGE>
and a decrease  of  $(13,000)  in change in  accrued  fees and  expenses  due to
general partner and affiliates in the year ended March 31, 2006.

Year Ended  March 31,  2005  Compared to Year Ended March 31, 2004 Net cash used
during the year ended  March 31, 2005 was  $(24,000),  compared to net cash used
for the year ended March 31, 2004 of $(13,000). The change was largely due to an
increase  in cash  used  in  operating  activities.  In  addition  distributions
received from Local Limited Partnerships decreased by approximately $(2,000).

The report of the independent  certified public  accountants with respect to the
financial  statements of one Local  Limited  Partnership  expressed  substantial
doubt as to the Local  Limited  Partnerships'  ability  to  continue  as a going
concern.  The  Partnership  had no remaining  investment  in such Local  Limited
Partnership  at March  31,  2006,  2005 and  2004.  The  Partnership's  original
investment in the Local Limited  Partnership  approximated  $1,278,000.  Through
December 31, 2005, the Local Limited  Partnership  has had recurring  losses and
working  capital  deficiencies.  In the event the Local Limited  Partnership  is
required  to  liquidate  or  sell  its  property,  the  net  proceeds  could  be
significantly less than the carrying value of such property.  As of December 31,
2005 and 2004,  the net carrying value of such property on the books and records
of  the  Local  Limited   Partnership   totaled   $1,677,000   and   $1,802,000,
respectively.

During the years ended March 31, 2006, 2005, and 2004,  accrued payables,  which
consist  primarily of related party  management  fees due to the General Partner
increased by $187,000, $183,000 and $181,000,  respectively. 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.

The Partnership  expects its future cash flows,  together with its net available
assets at March 31, 2006, to be  sufficient  to meet all  currently  foreseeable
future cash  requirements.  This  excludes  amounts  owed to  Associates  by the
Partnership disclosed below.

Future Contractual Cash Obligations

The following table  summarizes our future  contractual  cash  obligations as of
March 31, 2006:
<TABLE>
<CAPTION>
                                       2007        2008       2009       2010       2011      Thereafter    Total
                                   -----------  ---------  ---------  ---------  ---------  -----------  -----------
<S>                                <C>         <C>        <C>        <C>        <C>        <C>          <C>
Asset Management Fees (1)           $2,583,300  $  210,084 $  210,084 $  210,084 $  210,084 $  7,142,856 $ 10,566,492
Capital Contributions Payable
   to Local Limited Partnerships             -           -          -          -          -            -            -
                                    -----------  ---------  ---------  ---------  ---------  -----------  -----------
Total contractual cash  obligations $2,583,300  $  210,084 $  210,084 $  210,084 $  210,084 $  7,142,856 $ 10,566,492
                                    ===========  =========  =========  =========  =========  ===========  ===========
</TABLE>
(1)  Asset  Management  Fees  are  payable  annually  until  termination  of the
     Partnership,  which is to  occur  no later  than  December  31,  2045.  The
     estimate of the fees payable  included  herein assumes the retention of the
     Partnership's  interest in all Housing Complexes until 2045. Amounts due to
     the  General  Partner as of March 31,  2006 have been  included in the 2007
     column.  The General  Partner does not  anticipate  that these fees will be
     paid until such time as capital reserves in excess of the aggregate of then
     existing  contractual  obligations and the anticipated  future  foreseeable
     working capital requirements of the Partnership.

For additional  information  regarding asset  management fees, see Note 3 to the
financial statements included elsewhere herein.

Off-Balance Sheet Arrangements

The Partnership has no off-balance sheet arrangements.

Exit Strategy

See item 1B for information in this regard.

Item 7A.  Quantitative and Qualitative Disclosures about Market Risk

NOT APPLICABLE

Item 8.  Financial Statements and Supplementary Data

                                       22
<PAGE>

             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


To the Partners
WNC California Housing Tax Credit II, L.P.

     We have audited the accompanying  balance sheets of WNC California  Housing
Tax Credit II, L.P. (a California  Limited  Partnership) (the Partnership) as of
March 31, 2006 and 2005,  and the related  statements of  operations,  partners'
equity  (deficit)  and cash flows for the years ended March 31,  2006,  2005 and
2004. 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.

     We  conducted  our audits in  accordance  with the  standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain  reasonable  assurance about whether the
financial statements are free of material  misstatement.  The Partnership is not
required  to have,  nor were we engaged  to  perform,  an audit of its  internal
control over financial reporting.  Our audit included  consideration of internal
control over financial  reporting as a basis for designing audit procedures that
are appropriate in the  circumstances,  but not for the purpose of expressing an
opinion on the effectiveness of the Partnerships internal control over financial
reporting.  Accordingly,  we express  no such  opinion.  An audit also  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 provide a reasonable basis for our opinion.

     In our opinion,  the financial statements referred to above present fairly,
in all material  respects,  the financial position of WNC California Housing Tax
Credit II,  L.P. (a  California  Limited  Partnership)  as of March 31, 2006 and
2005,  and the results of its  operations and its cash flows for the years ended
March 31, 2006, 2005 and 2004 in conformity with accounting principles generally
accepted in the United States of America.

     Our  audits  were made for the  purpose  of forming an opinion on the basic
financial statements taken as a whole. The schedules listed under Item 15(a)2 in
the index are presented  for the purpose of complying  with the  Securities  and
Exchange  Commission's rules and are not part of the basic financial statements.
These  schedules  have been  subject to the auditing  procedures  applied to the
audits of the basic  financial  statements  and,  in our  opinion,  based on our
audits,  fairly state in all  material  respects the  financial  statement  data
required to be set forth therein in relation to the basic  financial  statements
taken as a whole.




/s/Reznick Group
----------------

Bethesda, Maryland
June 26, 2007


<PAGE>
                   WNC CALIFORNIA HOUSING TAX CREDITS II, L.P.
                       (A California Limited Partnership)

                                 BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                                   March 31
                                                                         ------------------------------
                                                                              2006             2005
                                                                         -------------    -------------
ASSETS
<S>                                                                   <C>              <C>
Cash and cash equivalents                                              $      106,445   $      183,262
Investments in Local Limited Partnerships, net (Notes 2 and 3)                      -           86,215
     Total Assets                                                        -------------    -------------
                                                                       $      106,445   $      269,477
                                                                         =============    =============
LIABILITIES AND PARTNERS' DEFICIT

Liabilities:
   Accrued fees and expenses due to General Partner
     and affiliates (Note 3)                                           $    2,384,670   $    2,197,622
                                                                         -------------    -------------
Partners' deficit:
    General Partner                                                          (188,043)        (184,542)
    Limited Partners (20,000 Partnership Units authorized; 17,726
     Partnership Units issued and outstanding)                             (2,090,182)      (1,743,603)
                                                                         -------------    -------------
      Total partners' deficit                                              (2,278,225)      (1,928,145)
                                                                         -------------    -------------
       Total Liabilities and Partners' Deficit                         $      106,445   $      269,477
                                                                         =============    =============
</TABLE>
                                       24
<PAGE>
                   WNC CALIFORNIA HOUSING TAX CREDITS II, L.P.
                       (A California Limited Partnership)

                            STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
                                                                        For the Years Ended
                                                                             March 31,
                                                          ------------------------------------------------
                                                              2006             2005              2004
                                                          -------------    -------------     -------------
<S>                                                    <C>             <C>                <C>
Interest income                                         $          725  $           654     $       1,950
Reporting fees                                                   4,874            7,506            33,606
Distribution income                                              6,846            3,620             1,120
                                                          -------------    -------------     -------------
  Total income                                                  12,445           11,780            36,676
                                                          -------------    -------------     -------------
Operating expenses:
   Amortization (Notes 2 and 3)                                      2           16,756            47,184
   Write-off of advances to Local
     Limited Partnerships (Note 2)                              33,303                -                 -
   Write off of due from affiliates
   Asset management fees (Note 3)                                    -            3,646                 -
   Impairment loss (Note 2)                                    210,084          210,084           210,084
   Accounting fees                                                   -        1,054,476           744,836
   Other                                                        25,972           20,525            18,775
                                                                 6,951            8,412             6,834
                                                          -------------    -------------     -------------
    Total operating expenses                                   276,312        1,313,899         1,027,713
                                                          -------------    -------------     -------------
Loss from operations                                          (263,867)      (1,302,119)         (991,037)

Equity in losses of Local Limited
  Partnerships (Note 2)                                        (86,213)        (386,175)         (330,980)
                                                          -------------    -------------     -------------
Net loss                                                $     (350,080) $    (1,688,294)    $  (1,322,017)
                                                          =============    =============     =============
Net loss allocated to:
  General Partner                                       $       (3,501) $       (16,882)    $     (13,220)
                                                          =============    =============     =============
  Limited Partners                                      $     (346,579) $    (1,671,412)    $  (1,308,797)
                                                          =============    =============     =============
Net loss per Partnership Unit                           $       (19.55) $        (94.29)    $      (73.83)
                                                          =============    =============     =============
Outstanding weighted Partnership
 Units                                                          17,726           17,726            17,726
                                                          =============    =============     =============
</TABLE>
                                       25
<PAGE>
                   WNC CALIFORNIA HOUSING TAX CREDITS II, L.P.
                       (A California Limited Partnership)

                    STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

               For the Years Ended March 31, 2006, 2005, and 2004
<TABLE>
<CAPTION>
                                                               General              Limited
                                                               Partner             Partners             Total
                                                            ---------------     ---------------    ---------------
<S>                                                      <C>                <C>                <C>
Partners' (deficit) equity at March 31, 2003              $       (154,440)  $      1,236,606      $    1,082,166

Net loss                                                           (13,220)        (1,308,797)         (1,322,017)
                                                            ---------------     ---------------    ---------------
Partners' deficit at March 31, 2004                               (167,660)           (72,191)           (239,851)

Net loss                                                           (16,882)        (1,671,412)         (1,688,294)
                                                            ---------------     ---------------    ---------------
Partners' deficit at March 31, 2005                               (184,542)        (1,743,603)         (1,928,145)

Net loss                                                            (3,501)          (346,579)           (350,080)
                                                            ---------------     ---------------    ---------------
Partners' deficit at March 31, 2006                       $       (188,043)  $     (2,090,182)     $   (2,278,225)
                                                            ===============     ===============    ===============
</TABLE>
                                       26
<PAGE>
                   WNC CALIFORNIA HOUSING TAX CREDITS II, L.P.
                       (A California Limited Partnership)

                            STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                             For the Years
                                                                            Ended March 31,
                                                           --------------------------------------------------
                                                               2006               2005             2004
                                                           --------------     -------------    --------------
<S>                                                     <C>                <C>               <C>
Cash flows from operating activities:
 Net loss                                                $    (350,080)     $  (1,688,294)    $    (1,322,017)
 Adjustments  to  reconcile  net loss to
  net cash used in operating
  activities:
   Amortization                                                      2             16,756              47,184
   Equity in losses of Local Limited
    Partnerships                                                86,213            386,175             330,980
   Impairment loss                                                   -          1,054,476             744,836
   Change in due from affiliates                                     -              3,646                   -
   Change in accrued fees and
    expenses due to General Partner
    and affiliates                                             187,048            200,527             180,551
                                                           --------------     -------------    --------------
Net cash used in operating activities                          (76,817)           (26,714)            (18,466)
                                                           --------------     -------------    --------------
Cash flows from investing activities:
  Distributions from Local Limited
   Partnerships                                                      -              3,100               5,303
                                                           --------------     -------------    --------------
Net decrease in cash and
 cash equivalents                                              (76,817)           (23,614)            (13,163)

Cash and cash equivalents, beginning
 of period                                                     183,262            206,876             220,039
                                                           --------------     -------------    --------------
Cash and cash equivalents, end of
 period                                                  $     106,445      $     183,262     $       206,876
                                                           ==============     =============    ==============
SUPPLEMENTAL DISCLOSURE OF
  CASH FLOW INFORMATION:
  Taxes paid                                             $         800      $         800     $           800
                                                           ==============     =============    ==============
</TABLE>
                                       27
<PAGE>
                   WNC CALIFORNIA HOUSING TAX CREDITS II, L.P.
                       (A California Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS

                For the Years Ended March 31, 2006, 2005 and 2004

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
--------------------------------------------------------------------

Organization
------------

WNC  California  Housing Tax Credits II, L.P. a California  Limited  Partnership
(the  "Partnership"),  was formed on  September  13,  1990 under the laws of the
State of California.  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  Complexes") that are eligible for
Low Income Housing Tax 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,  L.P. (the "General  Partner").
WNC &  Associates,  Inc.  ("Associates")  and  Wilfred N. Cooper are the general
partners  of WNC Tax  Credit  Partners,  L.P.  The  chairman  and  president  of
Associates owns  substantially all of the outstanding  stock of Associates.  The
business of the Partnership is conducted  primarily through  Associates,  as the
General Partner and the Partnership have no employees of their own.

The Partnership  shall continue in full force and effect until December 31, 2045
unless  terminated  prior to that date pursuant to the partnership  agreement or
law.

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

The Partnership  Agreement  authorized the sale of up to 20,000 units of Limited
Partnership interest  ("Partnership  Units") at $1,000 per Partnership Unit. The
offering of  Partnership  Units  concluded  in January 1993 at which time 17,726
Partnership Units, representing subscriptions in the amount of $17,726,000,  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 of the Partnership. The investors in the Partnership
("Limited  Partners")  will be  allocated  the  remaining  99% of these items in
proportion to their respective investments.

The  proceeds  from the  disposition  of any of the  Local  Limited  Partnership
properties  will be used  first  to pay  debts  and  other  obligations  per the
respective Local Limited Partnership Agreement. Any remaining proceeds will then
be paid to the  Partnership.  The sale of a Housing  Complex  may be  subject to
other restrictions and obligations.  Accordingly, there can be no assurance that
a Local Limited Partnership will be able to sell its Housing Complex. Even if it
does so, there can be no assurance that any significant  amounts of cash will be
distributed to the  Partnership.  Should such  distributions  occur, the Limited
Partners  will be  entitled  to  receive  distributions  equal to their  capital
contributions  and their  return on  investment  (as defined in the  Partnership
Agreement) and the General  Partners would then be entitled to receive  proceeds
equal to their capital contributions 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 Partners.

Risks and Uncertainties
-----------------------

An investment in the  Partnership  and the  Partnership's  investments  in Local
Limited  Partnerships  and their Housing  Complexes are subject to risks.  These
risks may impact the tax benefits of an investment in the  Partnership,  and the
amount of proceeds  available for distribution to the Limited Partners,  if any,
on liquidation of the Partnership's investments. Some of those risks include the
following:
                                       28
<PAGE>
                   WNC CALIFORNIA HOUSING TAX CREDITS II, L.P.
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For the Years Ended March 31, 2006, 2005 and 2004

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
--------------------------------------------------------------------------------

The  Low  Income   Housing  Tax  Credits   rules  are   extremely   complicated.
Noncompliance  with these rules results in the loss of future Low Income Housing
Tax  Credits  and the  fractional  recapture  of Low Income  Housing Tax Credits
already taken. In most cases the annual amount of Low Income Housing Tax Credits
that an  individual  can use is limited to the tax liability due on the person's
last $25,000 of taxable income. The Local Limited  Partnerships may be unable to
sell the Housing  Complexes  at a price which  would  result in the  Partnership
realizing cash distributions or proceeds from the transaction.  Accordingly, the
Partnership  may be unable to distribute any cash to its Limited  Partners.  Low
Income  Housing Tax Credits may be the only  benefit from an  investment  in the
Partnership.

The Partnership has invested in a limited number of Local Limited  Partnerships.
Such  limited  diversity  means that the  results of  operation  of each  single
Housing  Complex  will have a greater  impact on the  Partnership.  With limited
diversity,   poor   performance   of  one  Housing   Complex  could  impair  the
Partnership's ability to satisfy its investment objectives. Each Housing Complex
is subject to mortgage  indebtedness.  If a Local Limited  Partnership failed to
pay its  mortgage,  it  could  lose  its  Housing  Complex  in  foreclosure.  If
foreclosure  were to occur during the first 15 years,  the loss of any remaining
future Low Income  Housing Tax  Credits,  a  fractional  recapture  of prior Low
Income Housing Tax Credits,  and a loss of the  Partnership's  investment in the
Housing   Complex  would  occur.   The  Partnership  is  a  limited  partner  or
non-managing  member  of  each  Local  Limited  Partnership.   Accordingly,  the
Partnership  will have very  limited  rights with respect to  management  of the
Local  Limited  Partnerships.  The  Partnership  will rely  totally on the Local
General  Partners.  Neither  the  Partnership's  investments  in  Local  Limited
Partnerships,  nor  the  Local  Limited  Partnerships'  investments  in  Housing
Complexes,  are 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 interests in Local Limited Partnerships; limitations
on removal of Local  General  Partners;  limitations  on subsidy  programs;  and
possible changes in applicable regulations. Uninsured casualties could result in
loss of property and Low Income  Housing Tax Credits and recapture of Low Income
Housing Tax  Credits  previously  taken.  The value of real estate is subject to
risks  from  fluctuating  economic   conditions,   including  employment  rates,
inflation,  tax, environmental,  land use and zoning policies, supply and demand
of similar properties, and neighborhood conditions, among others.

The  ability of Limited  Partners to claim tax losses  from the  Partnership  is
limited.  The IRS may audit the  Partnership or a Local Limited  Partnership and
challenge the tax treatment of tax items.  The amount of Low Income  Housing Tax
Credits and tax losses allocable to the Limited Partners could be reduced if the
IRS were  successful  in such a  challenge.  The  alternative  minimum tax could
reduce tax benefits from an investment in the  Partnership.  Changes in tax laws
could also impact the tax benefits from an investment in the Partnership  and/or
the value of the Housing Complexes.

Substantially  all of the Low  Income  Housing  Tax  Credits  anticipated  to be
realized from the Local Limited Partnerships have been realized. The Partnership
does not anticipate  being allocated a significant  amount of Low Income Housing
Tax Credits from the Local Limited  Partnerships in the future.  Until the Local
Limited  Partnerships  have completed the 15 year Low Income Housing Tax Credits
compliance  period  risks  exist for  potential  recapture  of prior Low  Income
Housing Tax Credits.

Associates has agreed to continue providing  advances  sufficient enough to fund
the operations and working capital  requirements of the Partnership through June
30, 2008, if the Partnership were to experience a working capital deficiency.

                                       29
<PAGE>
                  WNC CALIFORNIA HOUSING TAX CREDITS II, L.P.
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For the Years Ended March 31, 2006, 2005 and 2004

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT  ACCOUNTING POLICIES, continued
--------------------------------------------------------------------------------

Anticipated  future and  existing  cash  resources  of the  Partnership  are not
sufficient   to  pay  existing   liabilities   of  the   Partnership.   However,
substantially all of the existing  liabilities of the Partnership are payable to
the General  Partner and/or its  affiliates.  Though the amounts  payable to the
General Partner and/or its affiliates are contractually  currently payable,  the
Partnership  anticipates that the General Partner and/or its affiliates will not
require the payment of these contractual  obligations until capital reserves are
in excess of the aggregate of then  existing  contractual  obligations  and then
anticipated future foreseeable  obligations of the Partnership.  The Partnership
would be adversely  affected  should the General  Partner  and/or its affiliates
demand current  payment of the existing  contractual  obligations and or suspend
services for this or any other reason.

No trading  market for the  Partnership  Units exists or is expected to develop.
Limited  Partners  may be unable to sell  their  Partnership  Units  except at a
discount  and  should  consider  their  Partnership  Units  to  be  a  long-term
investment.  Individual  Limited Partners will have no recourse if they disagree
with actions authorized by a vote of the majority of Limited Partners.

Exit Strategy
-------------

The IRS  Compliance  Period for  low-income  housing  tax credit  properties  is
generally  15  years  following   construction  or  rehabilitation   completion.
Associates was one of the first in the industry to offer syndicated  investments
in Low Income Housing Tax Credits.  The initial  programs are  completing  their
compliance periods.

With that in mind,  the General  Partner is continuing its review of the Housing
Complexes,  with special  emphasis on the more mature Housing  Complexes such as
any that have satisfied the IRS compliance  requirements.  The review  considers
many factors, including extended use requirements (such as those due to mortgage
restrictions  or state  compliance  agreements),  the  condition  of the Housing
Complexes and the tax  consequences to the Limited Partners from the sale of the
Housing Complexes.

Upon  identifying  those  Housing  Complexes  with the highest  potential  for a
successful sale, refinancing or syndication,  the Partnership expects to proceed
with  efforts to  liquidate  them.  The  objective  is to  maximize  the Limited
Partners'  return  wherever   possible  and,   ultimately,   to  wind  down  the
Partnership.  Local Limited Partnership interests may be disposed of any time by
the  General  Partner  in its  discretion.  As of March  31,  2006,  no  Housing
Complexes have been selected for disposition.  While  liquidation of the Housing
Complexes  continue to be evaluated,  the dissolution of the Partnership was not
imminent as of March 31, 2006 and  therefore  the  Partnership  continues  to be
accounted for as a going concern.

As of March 31, 2006, no Housing Complexes had been selected for disposition. As
of March 31, 2006 all the Local Limited  Partnerships  had not yet completed the
15-year compliance period. Subsequent to year-end the Partnership identified the
Housing Complex of one Local Limited  Partnership,  Ukiah Terrace,  a California
limited  partnership,  for disposition.  Ukiah Terrace has completed its 15-year
compliance  period as of December 31,  2006.  Preliminary  consent  solicitation
materials were filed with the SEC on June 6 and 14, 2007.

                                       30
<PAGE>
                  WNC CALIFORNIA HOUSING TAX CREDITS II, L.P.
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For the Years Ended March 31, 2006, 2005 and 2004

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,  continued
--------------------------------------------------------------------------------

Properties Identified for Disposition
-------------------------------------

The  Partnership  has  identified  the Housing  Complexes  of one Local  Limited
Partnership,  Ukiah Terrace,  a California  limited  partnership,  ("Ukiah") for
disposition. Ukiah owns the Ukiah Terrace Apartments (the "Property") located in
Ukiah, California. Consistent with the investment objectives of the Partnership,
the  Property  qualified  for Federal low income  housing tax credits  under the
Internal Revenue Code for a 10-year period.  The credit period has expired,  and
no further  credits are being  generated by the  Property.  The 15-year  Federal
compliance period has also expired, so there would be no credit recapture upon a
transfer of the Property.

On June 6 and 14, 2007, the Partnership filed preliminary  consent  solicitation
materials with the Securities and Exchange Commission  regarding the sale of the
Property.  Definitive materials have not been filed with the SEC or disseminated
to the Partnership's Limited Partners.

Method of Accounting For Investments in Local Limited Partnerships
------------------------------------------------------------------

The Partnership accounts for its investments in Local Limited Partnerships using
the equity method of accounting,  whereby the Partnership adjusts its investment
balance for its share of the Local Limited  Partnerships'  results of operations
and for any  contributions  made and  distributions  received.  The  Partnership
reviews the  carrying  amount of an  individual  investment  in a Local  Limited
Partnership for possible  impairment whenever events or changes in circumstances
indicate that the carrying  amount of such  investment  may not be  recoverable.
Recoverability  of such investment is measured by the estimated value derived by
management,  generally  consisting of the sum of the remaining future Low Income
Housing  Tax  Credits  estimated  to be  allocable  to the  Partnership  and the
estimated  residual value to the Partnership.  If an investment is considered to
be impaired, the Partnership reduces the carrying value of its investment in any
such Local Limited  Partnership.  The  accounting  policies of the Local Limited
Partnerships,  generally,  are  expected  to be  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 Notes 2 and 3)

"Equity in losses of Local  Limited  Partnerships"  for each year ended March 31
have been recorded by the Partnership  based on nine months of reported  results
provided by the Local Limited  Partnerships  for each year ended December 31 and
on  three  months  of  results  estimated  by  management  of  the  Partnership.
Management's  estimate  for the  three-month  period is based on  either  actual
un-audited  results  reported by the Local  Limited  Partnerships  or historical
trends in the operations of the Local Limited Partnerships. In subsequent annual
financial  statements,  upon receiving the actual annual results reported by the
Local Limited  Partnerships,  management reverses its prior estimate and records
the actual results reported by the Local Limited Partnerships.  Equity in losses
from  the  Local  Limited  Partnerships  allocated  to  the  Partnership  is not
recognized to the extent that the  investment  balance  would be adjusted  below
zero.  As soon as the  investment  balance  reaches  zero,  amortization  of the
related  costs of acquiring  the  investment  are  accelerated  to the extent of
losses  available  (see Note 3). 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.

The  Partnership  does not  consolidate the accounts and activities of the Local
Limited  Partnerships,  which are considered  Variable  Interest  Entities under
Financial    Accounting   Standards   Board   Interpretation   No.   46-Revised,
"Consolidation  of Variable Interest  Entities",  because the Partnership is not
considered the primary beneficiary.  The Partnership's balance in investments in
Local Limited Partnerships, plus the risk of recapture of tax credits previously
recognized  on such  investments,  represents  the  maximum  exposure to loss in
connection  with such  investments.  The  Partnership's  exposure to loss on the
Local  Limited   Partnerships  is  mitigated  by  the  condition  and  financial
performance of the underlying  Housing  Complexes as well as the strength of the
local General Partners and their guarantees against credit recapture.

                                       31
<PAGE>
                  WNC CALIFORNIA HOUSING TAX CREDITS II, L.P.
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For the Years Ended March 31, 2006, 2005 and 2004

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
--------------------------------------------------------------------------------

Distributions  received from the Local Limited Partnerships are accounted for as
a  reduction  of  the  investment  balance.  Distributions  received  after  the
investment has reached zero are recognized as distribution income.

Use of Estimates
----------------

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

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

The Partnership considers all highly liquid investments with original maturities
of three months or less when purchased to be cash  equivalents.  As of March 31,
2006 and 2005, the Partnership had no cash equivalents.

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

At March  31,  2006,  the  Partnership  maintained  cash  balances  at a certain
financial   institution  in  excess  of  the  federally  insured  maximum.   The
Partnership  believes it is not  exposed to any  significant  financial  risk on
cash.

Net Loss per Partnership Unit
-----------------------------

Net loss per Partnership  Unit is calculated  pursuant to Statement of Financial
Accounting  Standards No. 128, Earnings per Share. Net loss per Partnership Unit
includes no dilution  and is computed  by  dividing  loss  available  to Limited
Partners by the weighted average number of Partnership Units outstanding  during
the  period.  Calculation  of  diluted  net  loss  per  Partnership  Unit is not
required.

Income Taxes
------------

No provision  for income taxes has been recorded in the  accompanying  financial
statements  as any  liabilities  and or benefits  for income  taxes flows to the
partners of the  Partnership  and are their  obligations  and/or  benefits.  For
income tax purposes, the Partnership reports on a calendar year basis.

Revenue Recognition
-------------------

The  Partnership  is entitled to receive  reporting  fees from the Local Limited
Partnerships.  The  intent  of  the  reporting  fees  is  to  offset  (in  part)
administrative costs incurred by the Partnership in corresponding with the Local
Limited  Partnerships.  Due to the  uncertainty of the collection of these fees,
the Partnership recognizes reporting fees as collections are made.

Reclassifications
-----------------

Certain  reclassifications  have  been  made  to the  2005  and  2004  financial
statements to be consistent with the 2006 presentation.

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

As of the periods  presented,  the Partnership has acquired limited  partnership
interests  in 15  Local  Limited  Partnerships  each of which  owns one  Housing
Complex  consisting of an aggregate of 786 apartment units. The respective Local
General  Partners  of the  Local  Limited  Partnerships  manage  the  day-to-day

                                       32
<PAGE>
                   WNC CALIFORNIA HOUSING TAX CREDITS II, L.P.
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For the Years Ended March 31, 2006, 2005 and 2004

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

operations  of the entities.  Significant  Local  Limited  Partnership  business
decisions require approval from the Partnership.

The  Partnership,  as a  limited  partner,  is  generally  entitled  to 99%,  as
specified in the Local Limited Partnership agreements,  of the operating profits
and losses,  taxable income and losses and Low Income Housing Tax Credits of the
Local Limited Partnerships.

The  Partnership's  investments  in Local Limited  Partnerships  as shown in the
balance  sheets  at March 31,  2006 and 2005 are  approximately  $4,152,000  and
$3,069,000, respectively, greater than the Partnership's equity at the preceding
December  31 as shown in the  Local  Limited  Partnerships'  combined  financial
statements  presented  below.  This  difference  is primarily  due to unrecorded
losses, acquisition, selection and other costs related to the acquisition of the
investments which have been capitalized in the Partnership's  investment account
along with impairment losses recorded in the Partnership's  investment  account.
The  Partnership's  investment  is also lower than the  Partnership's  equity as
shown in the Local Limited  Partnership's  combined financial  statements due to
the  estimated  losses  recorded by the  Partnership  for the three month period
ended March 31.

A loss in value from a Local Limited  Partnership other than a temporary decline
would be recorded as an impairment loss. Impairment is measured by comparing the
investment  carrying  amount to the sum of the total amount of the remaining Low
Income  Housing Tax  Credits  allocated  to the  Partnership  and the  estimated
residual  value of the  investment.  Accordingly,  the  Partnership  recorded an
impairment loss of $0,  $1,054,476,  and $744,836,  during the years ended March
31, 2006, 2005 and 2004, respectively.

The Partnership  advanced  $33,303 to one Local Limited  Partnership  during the
year ended March 31, 2006.  These  advances  were used to fund  certain  reserve
accounts.  The Partnership determined the recoverability of these advances to be
doubtful and, accordingly, has reserved the $33,303 as of March 31, 2006.

At March 31, 2006 the investment  accounts in all of Local Limited  Partnerships
have reached a zero balance.  Consequently, all of the Partnership's estimate of
its share of losses for the years ended March 31, 2006, 2005 and 2004, amounting
to approximately $1,066,000, $829,000 and $701,000,  respectively, have not been
recognized.  As of  March 31,  2006,  the  aggregate  share  of net  losses  not
recognized by the Partnership amounted to $5,986,000.

Following is a summary of the equity method activity of the investments in Local
Limited Partnerships for the periods presented:
<TABLE>
<CAPTION>
                                                                           For the Years Ended
                                                                                March 31,
                                                            --------------------------------------------------
                                                                2006             2005               2004
                                                            -------------   ---------------    ---------------
<S>                                                      <C>             <C>                <C>
Investments per balance sheet, beginning of period        $       86,215  $      1,546,722   $     2,675,025
Distributions received from Local Limited Partnerships                 -            (3,100)           (5,303)
Equity in losses of Local Limited Partnerships                   (86,213)         (386,175)         (330,980)
Impairment loss                                                        -        (1,054,476)         (744,836)
Amortization of capitalized acquisition fees and costs                (2)          (16,756)          (47,184)
                                                            -------------   ---------------    ---------------
Investments per balance sheet, end of period              $            -  $         86,215   $     1,546,722
                                                            =============   ===============    ===============
</TABLE>
The financial  information from the individual financial statements of the Local
Limited Partnerships include rental and interest subsidies. Rental subsidies are
included in total revenues and interest  subsidies are generally  netted against
interest expense.  Approximate combined condensed financial information from the
individual financial statements of the Local Limited Partnerships as of December
31 and for the years then ended is as follows:

                                       33
<PAGE>

<TABLE>
<CAPTION>
                        COMBINED CONDENSED BALANCE SHEETS
                                                                                     2005               2004
                                                                                ---------------    ----------------
ASSETS
<S>                                                                          <C>                <C>
Buildings and improvements, net of accumulated
   depreciation for 2005 and 2004 of $16,619,000 and
   $15,377,000, respectively.                                                 $     23,508,000   $      24,517,000
Land                                                                                 2,465,000           2,465,000
Other assets                                                                         3,290,000           3,141,000
                                                                                ---------------    ----------------
   Total Assets                                                               $     29,263,000   $      30,123,000
                                                                                ===============    ================
LIABILITIES

Mortgage loans payable                                                        $     27,670,000   $      28,489,000
Due to related parties                                                               1,137,000             985,000
Other liabilities                                                                    4,858,000           3,791,000
                                                                                ---------------    ----------------
  Total Liabilities                                                                 33,665,000          33,265,000
                                                                                ---------------    ----------------
PARTNERS' DEFICIT

WNC California Housing Tax Credits II, L.P.                                         (4,152,000)         (2,983,000)
Other partners                                                                        (250,000)           (159,000)
                                                                                ---------------    ----------------
 Total Partners' Deficit                                                            (4,402,000)         (3,142,000)
                                                                                ---------------    ----------------
    Total Liabilities and Partners' Deficit                                   $     29,263,000   $      30,123,000
                                                                                ===============    ================
</TABLE>
                                       33
<PAGE>
                  WNC CALIFORNIA HOUSING TAX CREDITS II, L.P.
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For the Years Ended March 31, 2006, 2005 and 2004

NOTE 2 - INVESTMENTS IN LOCAL LIMITED PARTNERSHIPS, continued
-------------------------------------------------------------
<TABLE>
<CAPTION>
                   COMBINED CONDENSED STATEMENTS OF OPERATIONS

                                                                 2005                2004               2003
                                                            ---------------     ---------------    ---------------
<S>                                                      <C>                 <C>                <C>
Revenues                                                  $      4,000,000     $     3,969,000    $     3,954,000
                                                            ---------------     ---------------    ---------------
Expenses:
  Operating expenses                                             3,087,000           3,066,000          2,901,000
  Interest expense                                                 850,000             873,000            882,000
  Depreciation and amortization                                  1,281,000           1,285,000           1,294,00
                                                            ---------------     ---------------    ---------------
   Total expenses                                                5,218,000           5,224,000          5,077,000
                                                            ---------------     ---------------    ---------------
Net loss                                                  $     (1,218,000)    $    (1,255,000)   $    (1,123,000)
                                                            ===============     ===============    ===============
Net loss allocable to the Partnership                     $     (1,152,000)    $    (1,215,000)   $    (1,032,000)
                                                            ===============     ===============    ===============
Net loss recorded by the Partnership                      $        (86,000)    $      (386,000)   $      (331,000)
                                                            ===============     ===============    ===============
</TABLE>
Certain Local Limited  Partnerships  have incurred  operating losses and/or 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,  and the loss
and recapture of the related Low Income Housing Tax Credits could occur.

The report of the independent  certified public  accountants with respect to the
financial  statements of one Local  Limited  Partnership  expressed  substantial
doubt as to the Local  Limited  Partnerships'  ability  to  continue  as a going
concern.  The  Partnership  had no remaining  investment  in such Local  Limited
Partnership  at March 31,  2006 and 2005 and 2004.  The  Partnership's  original
investment in the Local Limited  Partnership  approximated  $1,278,000.  Through
December 31, 2005, the Local Limited  Partnership  has had recurring  losses and
working  capital  deficiencies.  In the event the Local Limited  Partnership  is
required  to  liquidate  or  sell  its  property,  the  net  proceeds  could  be
significantly less than the carrying value of such property.  Additionally,  the
recapture of the related tax credits  could  occur.  As of December 31, 2006 and
2005,  the net carrying  value of such  property on the books and records of the
Local Limited Partnership totaled $1,677,000 and $1,802,000, respectively.

                                       34
<PAGE>
                  WNC CALIFORNIA HOUSING TAX CREDITS II, L.P.
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For the Years Ended March 31, 2006, 2005 and 2004

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

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

     Acquisition  fees  equal  to 9% of the  gross  proceeds  from  the  sale of
     Partnership  Units as compensation for services rendered in connection with
     the  acquisition of Local Limited  Partnerships.  At the end of all periods
     presented,   the  Partnership  incurred  acquisition  fees  of  $1,595,340.
     Accumulated  amortization of these  capitalized  costs was $1,595,340 and $
     1,595,338 as of March 31, 2006 and 2005,  respectively.  Of the accumulated
     amortization  recorded,  $0 and $0, and $130,193 of the related expense was
     reflected  as equity in losses of  limited  partnerships  during  the years
     ended March 31, 2006, 2005 and 2004 respectively,  to reduce the respective
     net acquisition fee component of investments in Local Limited  Partnerships
     to zero for those Local Limited Partnerships which would otherwise be below
     a zero balance.

     Reimbursement  of costs incurred by an affiliate of the General  Partner in
     connection  with the  acquisition  of  Local  Limited  Partnerships.  These
     reimbursements have not exceeded 1.7% of the gross proceeds.  As of the end
     of all periods  presented,  the Partnership  incurred  acquisition costs of
     $1,520 which have been  included in  investments  in limited  partnerships.
     Accumulated amortization was insignificant for the periods presented.

     An annual  management fee equal to 0.5% of the invested assets of the Local
     Limited  Partnerships,  including the Partnership's  allocable share of the
     mortgages,  for the life of the  Partnership.  Management  fees of $210,084
     were incurred during each of the years ended March 31, 2006, 2005 and 2004;
     of which  $23,440,  $18,750,  and $29,500  were paid during the years ended
     March 31, 2006, 2005 and 2004, respectively.

     The  Partnership  reimbursed  the  General  Partner or its  affiliates  for
     operating  expenses incurred by the Partnership and paid for by the General
     Partners or its affiliates on behalf of the Partnership.  Operating expense
     reimbursements was approximately  $28,100,  $24,400, and $25,000 during the
     years ended March 31, 2006, 2005, and 2004, respectively.

     A subordinated  disposition fee in an amount equal to 1% of the sales price
     of  real  estate  sold.  Payment  of this  fee to the  General  Partner  is
     subordinated to the limited  partners who receive a 6% preferred return (as
     defined in the  Partnership  Agreement)  and is payable only if the General
     Partner or its affiliates  render services in the sales effort. No such fee
     was incurred for the three year period ended March 31, 2006.

     An affiliate of the General Partner provides management services for two of
     the  properties in the Local  Limited  Partnerships.  Management  fees were
     earned by the  affiliate in the amount of $27,011,  $30,161 and $27,198 for
     the years ended March 31, 2006, 2005 and 2004, respectively.

The accrued fees and expenses due to General  Partner and affiliates  consist of
the following:
<TABLE>
<CAPTION>
                                                                                    March 31,
                                                                         --------------------------------
                                                                              2006              2005
                                                                         --------------    --------------
<S>                                                                   <C>               <C>
Expenses paid by the General Partner
  or an affiliate on behalf of the Partnership                         $        11,454   $          6,650
Accrued asset management fees                                                2,373,216          2,186,572
Other amounts due to General Partner or an affiliate                                 -              4,400
                                                                         --------------    --------------
                                                                       $     2,384,670   $      2,197,622
                                                                         ==============    ==============
</TABLE>
                                       35
<PAGE>
                  WNC CALIFORNIA HOUSING TAX CREDITS II, L.P.
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For the Years Ended March 31, 2006, 2005 and 2004

NOTE 3 - RELATED PARTY TRANSACTIONS, continued
----------------------------------------------

The General  Partner and/or its affiliates do not anticipate  that these accrued
fees will be paid in full until such time as capital  reserves  are in excess of
the future foreseeable working capital requirements of the Partnership.

NOTE 4 - QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
----------------------------------------------------

The following is a summary of the quarterly operations for the years ended March
31:
<TABLE>
<CAPTION>
                                           June 30          September 30        December 31           March 31
                                        ---------------    ----------------    ---------------     ---------------
<S>                                  <C>                <C>                <C>                <C>
               2006
               ----
Income                                $          4,000   $          8,000   $             -    $              -

Operating expenses                             (55,000)           (66,000)          (99,000)            (57,000)

Equity in losses of Local Limited
    Partnerships                               (49,000)           (37,000)                -                   -

Net Loss                                      (100,000)           (95,000)          (99,000)            (57,000)

Net Loss available to Limited
    Partners                                   (99,000)           (94,000)          (98,000)            (56,000)

Net Loss per Partnership Unit                       (6)                (5)               (6)                 (3)

               2005
               ----
Income                                $          9,000   $          2,000   $             -    $          1,000

Operating expenses                             (62,000)           (72,000)          (62,000)         (1,118,000)

Equity in losses of Local Limited
    Partnerships                               (88,000)           (95,000)          (92,000)           (111,000)

Net Loss                                      (141,000)          (165,000)         (154,000)         (1,228,000)

Net Loss available to Limited
    Partners                                  (140,000)          (164,000)         (154,000)         (1,215,000)

Net Loss per Partnership Unit                       (8)                (9)               (9)                (69)
</TABLE>
NOTE 5 - SUBSEQUENT EVENT
-------------------------

The  Partnership  has  identified  the Housing  Complexes  of one Local  Limited
Partnership,  Ukiah Terrace,  a California  limited  partnership,  ("Ukiah") for
disposition. Ukiah owns the Ukiah Terrace Apartments (the "Property") located in
Ukiah, California. Consistent with the investment objectives of the Partnership,
the  Property  qualified  for Federal low income  housing tax credits  under the
Internal Revenue Code for a 10-year period.  The credit period has expired,  and
no further  credits are being  generated by the  Property.  The 15-year  Federal
compliance period has also expired as of December 31, 2006, so there would be no
credit  recapture  upon a transfer of the Property.

On June 6 and 14, 2007, the Partnership filed preliminary  consent  solicitation
materials with the Securities and Exchange Commission  regarding the sale of the
Property.  Definitive materials have not been filed with the SEC or disseminated
to the Partnership's Limited Partners.

                                       36
<PAGE>
Item  9.  Changes  in and  Disagreements  with  Accountants  on  Accounting  and
          Financial Disclosure

NONE

Item 9A. Controls and Procedures

(a)  As of the end of the  period  covered  by this  report,  the  Partnership's
     General  Partner,  under the supervision and with the  participation of the
     Chief Executive Officer and Chief Financial Officer of Associates,  carried
     out an evaluation of the  effectiveness  of the  Partnership's  "disclosure
     controls and procedures" as defined in Securities Exchange Act of 1934 Rule
     13a-15 and 15d-15.  Based on that evaluation,  the Chief Executive  Officer
     and Chief  Financial  Officer  have  concluded  that,  as of the end of the
     period covered by this report,  the Partnership's  disclosure  controls and
     procedures  were adequate and effective in timely alerting them to material
     information  relating  to the  Partnership  required  to be included in the
     Partnership's periodic SEC filings.

(b)  There were no changes in the Partnership's  internal control over financial
     reporting  that  occurred  during the  quarter  ended  March 31,  2006 that
     materially  affected,  or are reasonably likely to materially  affect,  the
     Partnership's internal control over financial reporting.

Item 9B. Other Information

NONE

PART III

Item 10. Directors and Executive Officers of the Registrant

(a)  Identification of Directors,  (b) Identification of Executive Officers, (c)
     ---------------------------------------------------------------------------
     Identification of Certain Significant Employees,  (d) Family Relationships,
     ---------------------------------------------------------------------------
     and (e) Business Experience
     ---------------------------

Neither  the General  Partner  nor the  Partnership  has  directors,  executives
officers or employees of its own. The business of the  Partnership  is conducted
primarily through Associates.  Associates is a California  corporation which was
organized in 1971. The following  biographical  information is presented for the
directors of Associates,  and for the officers and employees of Associates  with
principal responsibility for the Partnership's affairs.

Wilfred N. Cooper, Sr.         Chairman
Wilfred N. Cooper, Jr.         President and Chief Executive Officer
David N. Shafer, Esq.          Executive Vice President
Michael J. Gaber               Executive Vice President
Sylvester P. Garban            Senior Vice President - Institutional Investments
Thomas J. Riha, CPA            Senior Vice President - Chief Financial Officer
Thomas J. Hollingsworth        Vice President - Asset Management
Gregory S. Hand                Vice President - Acquisitions
Melanie R. Wenk                Vice President - Portfolio Management

In addition to Wilfred N. Cooper,  Sr., the directors of Associates  are Wilfred
N. Cooper, Jr., David N. Shafer, and Kay L. Cooper. The principal shareholder of
Associates is a trust established by Wilfred  N.  Cooper, Sr. and Kay L. Cooper.

Wilfred N.  Cooper,  Sr.,  age 76, is the founder  and  Chairman of the Board of
Directors of Associates,  a Director of WNC Capital  Corporation,  and a general
partner in some of the  partnerships  previously  sponsored  by  Associates  Mr.
Cooper has been actively involved in the affordable housing industry since 1968.
Previously,  during 1970 and 1971,  he was  founder and a principal  of Creative
Equity  Development  Corporation,  a predecessor of Associates,  and of Creative
Equity Corporation, a real estate investment firm. For 12 years before 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.  He has testified before committees of the U.S. Senate and the U.S.

                                       37
<PAGE>
House  of  Representatives  on  matters  pertaining  to the  affordable  housing
industry.  Mr.  Cooper is a Life  Director of the National  Association  of Home
Builders,  a National Trustee for NAHB's Political Action Committee,  and a past
Chairman of NAHB's Multifamily Council. He is a Director of the National Housing
Conference and a member of NHC's Board of Governors,  and a founder and Director
of the California  Housing  Consortium.  He is the husband of Kay Cooper and the
father of Wilfred N. Cooper,  Jr. Mr. Cooper  graduated  from Pomona  College in
1956 with a Bachelor of Arts degree.

Wilfred  N.  Cooper,  Jr.,  age  44,  is  President,  Chief  Executive  Officer,
Secretary,  a Director and a member of the Acquisition  Committee of Associates.
He is President and a Director of, and a registered  principal with, WNC Capital
Corporation, and is a Director and Vice President of WNC Management, Inc. He has
been involved in real estate  investment and acquisition  activities  since 1988
when he  joined  Associates.  Previously,  he  served  as a  Government  Affairs
Assistant with Honda North America in Washington, D.C. Mr. Cooper is a member of
the Editorial  Advisory  Boards of Affordable  Housing Finance and LIHTC Monthly
                                   ---------------------------    --------------
Report,  a  Steering  Member  of  the  Housing  Credit  Group  of  the  National
Association  of Home  Builders,  a  member  of the Tax  Policy  Council  for the
National  Trust for Historical  Preservation,  a member of the Advisory Board of
the New York State  Association  for Affordable  Housing,  a member of the Urban
Land Institute and a member of TEC  International,  a global network of business
leaders  and chief  executives.  He is the son of  Wilfred  Cooper,  Sr. and Kay
Cooper.  Mr.  Cooper  graduated  from The  American  University  in 1985  with a
Bachelor of Arts degree.

David N. Shafer, age 55, is an Executive Vice President, a Director and a member
of the Acquisition Committee of Associates,  and a Director,  Vice President and
Secretary of WNC Management,  Inc. Mr. Shafer has been active in the real estate
industry  since 1984.  Before  joining  Associates in 1990, he was engaged as an
attorney  in the private  practice  of law with a  specialty  in real estate and
taxation.  Mr. Shafer is a Director and past 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.

Michael  J.  Gaber,  age 41, is an  Executive  Vice  President  -  Oversees  the
Originations,  Acquisitions  and Real Estate  Development  Department,  and is a
member of the  Acquisition  Committee of  Associates  and Vice  President of WNC
Management,  Inc...  Mr.  Gaber has been  involved in real  estate  acquisition,
valuation and  investment  activities  since 1989 and has been  associated  with
Associates  since  1997.  Prior to joining  Associates,  he was  involved in the
valuation and classification of major assets, restructuring of debt and analysis
of real estate  taxes with H.F.  Ahmanson & Company,  parent of Home  Savings of
America. Mr. Gaber graduated from the California State University,  Fullerton in
1991 with a Bachelor of Science degree in Business Administration - Finance.

Sylvester  P.  Garban,   age  61,  is  Senior  Vice  President  -  Institutional
Investments of Associates and registered principal with WNC Capital Corporation.
Mr. Garban has been involved in real estate  investment  activities  since 1978.
Before  joining  Associates in 1989, he served as Executive  Vice President with
MRW, Inc., a real estate development and management firm. Mr. Garban is a member
of the National  Association  of  Affordable  Housing  Lenders and the Financial
Planning Association. He graduated from Michigan State University in 1967 with a
Bachelor of Science degree in Business Administration.

Thomas J. Riha, age 52, is Senior Vice President - Chief Financial Officer and a
member of the  Acquisition  Committee  and the  Commercial  Real Estate Group of
Associates and Vice President,  Treasurer and a Director of WNC Management, Inc.
He has been involved in real estate acquisition and investment  activities since
1979.  Before joining  Associates in 1994, Mr. Riha was employed by Trust Realty
Advisor, a real estate acquisition and Management Company,  last serving as Vice
President - Operations.  He is a founding member of the Housing Credit Certified
Professional Board of Governors,  a national professional  certification program
administered  by  the  NAHB  and  the  National  Affordable  Housing  Management
Association. 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.

                                       38
<PAGE>
Thomas J.  Hollingsworth,  CPA, age 56, is Vice President - Asset  Management of
WNC  &  Associates,   Inc.  and  oversees  WNC's  asset  management  group.  Mr.
Hollingsworth  has been  involved in real estate  acquisitions,  operations  and
syndication  of  multifamily  properties  for 25 years.  Prior to joining WNC in
2005,  he  was  the  senior  workout  specialist  at  Key  Corporation   Housing
Management,  Inc.,  a division  of Key Bank. He has also  been  responsible  for
structuring  several tax sheltered  multifamily  acquisitions during his career.
Mr. Hollingsworth  graduated from the University of Utah in 1973 with a Bachelor
of Science degree (cum laude) in Business Administration.

Gregory S. Hand, age 43, is Vice  President -  Acquisitions  and a member of the
Commercial Real Estate Group of Associates.  He is responsible for the oversight
of property  underwriting.  Mr. Hand has been involved in real estate  analysis,
development and management since 1987.  Prior to joining  Associates in 1998, he
was  a  portfolio  asset  manager  with  a  national  tax  credit  sponsor  with
responsibility  for the management of $200 million in assets.  Prior to that, he
was a finance  manager  with The Koll  Company and a financial  analyst with The
Irvine  Company.  Mr. Hand graduated  from Iowa State  University in 1987 with a
Bachelor of Business Administration degree in finance.

Melanie  R.  Wenk,  CPA,  age 39,  is  Vice  President-Portfolio  Management  of
Associates.  She is  responsible  for overseeing  institutional  and retail fund
portfolio management, including partnership accounting, SEC reporting, quarterly
and  annual  investor  reporting  and  monitoring  investment  returns  for  all
stabilized WNC  institutional  funds.  Prior to joining  Associates in 2003, Ms.
Wenk was associated as a public accountant with BDO Seidman,  LLP. She graduated
from  the  California  Polytechnic  State  University,  Pomona,  in 1999  with a
Bachelor of Science degree in accounting.

Kay L. Cooper,  age 70, is a Director of  Associates.  Mrs.  Cooper was the sole
proprietor of Agate 108, a manufacturer and retailer of home accessory products,
from 1975 until its sale in 1998. She is the wife of Wilfred Cooper, Sr. and the
mother of Wilfred  Cooper,  Jr. Ms.  Cooper  graduated  from the  University  of
Southern California in 1958 with a Bachelor of Science degree.

(f)  Involvement in Certain Legal Proceedings
     ----------------------------------------

     Two local limited  partnerships  invested in by other  Associates-sponsored
     public limited  partnerships  were unable to meet their obligations as they
     became due,  and each has filed a voluntary  petition  in  bankruptcy.  The
     local general partner of one of them is not affiliated with Associates. The
     original  unaffiliated  local general  partner of the other was removed and
     replaced  with a  general  partner  wholly-owned  by  two of the  executive
     officers of WNC identified above.


(g)   Promoters and Control Persons
      -----------------------------
      Inapplicable.

(h)   Audit  Committee  Financial  Expert,  and  (i) Identification of the Audit
      --------------------------------------------------------------------------
      Committee
      ---------
      Neither the Partnership, the General Partner, nor Associates have an audit
      committee.

(j)   Changes to Nominating Procedures
      --------------------------------
      Inapplicable.

(k)   Compliance With Section 16(a) of the Exchange Act
      -------------------------------------------------
      None.

(l)  Code of Ethics
     ----------------
     Associates  has  adopted  a Code  of  Ethics  which  applies  to the  Chief
     Executive Officer and Chief Financial Officer of WNC & Associates. The Code
     of Ethics will be provided  without  charge to any person who  requests it.
     Such requests  should be directed to: Investor  Relations at  (714)662-5565
     extension 187.
                                       39
<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 its  affiliates  during the current or future years for the following
fees:

(a)  Annual Asset  Management Fee. An annual asset  management fee accrues in an
     amount equal to 0.5% of the Invested Assets of the Partnership, as defined.
     "Invested  Assets" means the sum of the  Partnership's  Investment in Local
     Limited Partnership Interests and the Partnership's  allocable share of the
     amount of the  mortgage  loans on and other  debts  related to, the Housing
     Complexes owned by such Local Limited  Partnerships.  Fees of $210,084 were
     incurred  during each of the years ended March 31, 2006, 2005 and 2004. The
     Partnership  paid the General Partner or its affiliates,  $23,440,  $18,750
     and $29,500 of those fees during the years then ended, respectively.

(b)  Subordinated  Disposition Fee. A subordinated  disposition fee in an amount
     equal to 1% of the sale price may be received in  connection  with the sale
     or disposition of a Housing Complex or Local Limited Partnership  Interest.
     Subordinated  disposition  fees will be subordinated to the prior return of
     the Limited  Partners'  capital  contributions and payment of the Preferred
     Return on investment to the Limited Partners.  "Preferred  Return" means an
     annual,  cumulative but not  compounded,  "return" to the Limited  Partners
     (including  Low Income  Housing Tax  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, 2002,  and (ii) 6% for the balance of
     the Partnerships term. No disposition fees have been incurred.

(c)  Operating  Expense.  The Partnership  reimbursed the General Partner or its
     affiliates for operating  expenses of approximately,  $28,100,  $24,400 and
     $25,600 during the years ended March 31, 2006, 2005 and 2004, respectively.

(d)  Interest  in  Partnership.   The  General   Partners   receive  1%  of  the
     Partnership's  allocated Low Income Tax Housing Credits, which approximated
     $2,000, $6,000 and $11,000 for the General Partners for the tax years ended
     December 31, 2005,  2004 and 2003,  respectively.  The General  Partners is
     also entitled to receive a percentage of cash distributions.  There were no
     distributions  of cash to the  General  Partners  during  the  years  ended
     March 31, 2006, 2005 and 2004.

Item 12. Security  Ownership  of Certain  Beneficial  Owners and  Management and
         Related Stockholder Matters

(a)      Securities Authorized for Issuance Under Equity Compensation Plans
         ------------------------------------------------------------------
         The  Partnership  has no  compensation  plans under which interests  in
         the Partnership are authorized for issuance.

(b)      Security Ownership of Certain Beneficial Owners
         -----------------------------------------------
         No   person  is  known  to own  beneficially  in  excess  of 5% of  the
         outstanding Partnership Units.

(c)      Security Ownership of Management
         --------------------------------
         Neither the   General Partner,  Associates, its affiliates,  nor any of
         the officers   or directors of the General Partner,  Associates, or its
         affiliates own directly or beneficially any Partnership Units.

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

         First,   with   the  consent  of  any  other  General  Partners  and  a
         majority-in-interest   of the Limited Partners, any General Partner may
         designate  one or  more persons to be successor or  additional  General
         Partners. In  addition, any General Partner may, without the consent of
         any other General  Partner or the Limited  Partners,  (i) substitute in
         its  stead as   General  Partner  any  entity  which  has,  by  merger,
         consolidation or  otherwise,  acquired substantially all of its assets,
         stock or other  evidence of equity interest and continued its business,

                                       40
<PAGE>
         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, reimbursement of expenses,
and the General Partner's  interest in the Partnership,  as discussed in Item 11
and in the notes to the Partnership's financial statements.

Item 14. Principal Accountant Fees and Services

The following is a summary of fees paid to the Partnership principal independent
registered public accounting firm for the years ended March 31:
<TABLE>
<CAPTION>
                                             2006                2005
                                        ---------------     ---------------
<S>                                  <C>                 <C>
Audit Fees                            $         22,972    $         17,525
Audit-related Fees                                   -                   -
Tax Fees                                         3,000               3,000
All Other Fees                                       -                   -
                                        ---------------     ---------------
TOTAL                                 $         25,972    $         20,525
                                        ===============     ===============
</TABLE>
The  Partnership  has no Audit  Committee.  All audit services and any permitted
non-audit  services  performed  by the  Partnership's  independent  auditors are
pre-approved by the General Partner.

                                       41
<PAGE>
PART IV.

Item 15.  Exhibits and Financial Statement Schedules, and Reports on Form 8-K

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

         Balance Sheets, as of March 31, 2006 and 2005
         Statements of Operations for the years ended  March 31, 2006, 2005  and
         2004
         Statements of Partners' Equity (Deficit) for  the years ended March 31,
         2006, 2005 and 2004
         Statements of Cash  Flows for the years ended March 31, 2006, 2005  and
         2004
         Notes to Financial Statements

(a)(2)   List of  Financial statement schedules included in Part IV hereof:
         ------------------------------------------------------------------
         Schedule III - Real Estate Owned by Local Limited Partnerships

(a)(3)   Exhibits.
         ---------

3.1      Agreement  of  Limited  Partnership dated  as  of September  13,  1990,
         included as  Exhibit  28.1 to the Form 10-K filed for  the  year  ended
         December  31, 1992, is hereby incorporated herein as Exhibit 3.1.

31.1     Certification  of the Chief Executive  Officer  pursuant to Rule 13a-14
         and 15d-14,  as adopted pursuant to section 302 of  the  Sarbanes-Oxley
         Act of 2002.  (filed herewith)

31.2     Certification  of the Chief Financial  Officer  pursuant to Rule 13a-14
         and 15d-14,  as adopted pursuant to section 302 of  the  Sarbanes-Oxley
         Act of 2002.  (filed herewith)

32.1     Section  1350  Certification  of  the  Chief  Executive Officer. (filed
         herewith)

32.2     Section  1350  Certification  of  the  Chief Financial Officer.  (filed
         herewith)

99.1     Amended  and  Restated   Agreement  of  Limited   Partnership of Orland
         Associates dated June 15, 1991 filed as exhibit 10.1 to Form 10-K dated
         December 31, 1992 is hereby incorporated herein by reference as exhibit
         99.1.

99.2     Amended and Restated Agreement of Limited  Partnership of Ukiah Terrace
         a California  Limited  Partnership dated June 15, 1991 filed as exhibit
         10.2 to Form 10-K dated December 31, 1992 is hereby incorporated herein
         by reference as exhibit 99.2.

99.3     Amended and Restated  Agreement of Limited  Partnership  of   Northwest
         Tulare Associates dated July 3, 1991 filed as exhibit 10.3 to Form 10-K
         dated December 31, 1992 is hereby incorporated herein by  reference  as
         exhibit 99.3.

99.4     Second  Amended  and  Restated  Agreement  of  Limited  Partnership  of
         Yucca Warren  Vista,  Ltd.  dated  July 15, 1991 filed as  exhibit 10.4
         to Form 10-K dated December 31, 1992  is  hereby incorporated herein by
         reference as exhibit 99.4.

99.5     Amended  and  Restated  Agreement of Limited   Partnership  of Woodlake
         Garden  Apartments  dated July 17, 1991 filed as exhibit 10.5 to   Form
         10-K dated December 31, 1992 is hereby incorporated herein by reference
         as exhibit 99.5.

99.6     Amended and Restated  Agreement of  Limited  Partnership  of  601  Main
         Street  Investors dated December 22, 1991 filed as exhibit 10.6 to Form
         10-K dated December 31, 1992 is hereby incorporated herein by reference
         as exhibit 99.6.
                                       42
<PAGE>

99.7     Amended  and    Restated   Agreement  of  Limited  Partnership  of  ADI
         Development  Partners  dated   January 2, 1992 filed as exhibit 10.7 to
         Form  10-K  dated  December 31, 1992   is hereby incorporated herein by
         reference as exhibit 99.7.

99.8     Amended and  Restated  Agreement  of  Limited  Partnership  of  Bayless
         Garden  Apartment Investors dated January 2, 1992 filed as exhibit 10.8
         to Form 10-K dated December 31, 1992 is hereby incorporated  herein  by
         reference as exhibit 99.8.

99.9     Third Amended and Restated  Agreement of Limited  Partnership   of Twin
         Pines Apartment  Associates dated January 2, 1992 filed as exhibit 10.9
         to Form 10-K dated December 31, 1992 is hereby incorporated  herein  by
         reference as exhibit 99.9.

99.10    Amended and Restated  Agreement of Limited  Partnership  of  Blackberry
         Oaks, Ltd. dated January 15, 1992 filed as exhibit 10.10  to  Form 10-K
         dated December 31, 1992 is hereby incorporated herein   by reference as
         exhibit 99.10.

99.11    Amended   and   Restated  Agreement  of  Limited  Partnership  of Mecca
         Apartments II dated January 15, 1992 filed as  exhibit  10.11  to  Form
         10-K dated December 31, 1992 is hereby incorporated herein by reference
         as exhibit 99.11.

99.12    Amended and Restated  Agreement of Limited  Partnership of Silver Birch
         Limited  Partnership  dated November 23, 1992 filed as exhibit 10.12 to
         Form 10-K  dated  December  31,  1992  is hereby incorporated herein by
         reference as exhibit 99.12.

99.13    Amended and Restated Agreement of Limited Partnership of Jacob's Square
         dated January 2, 1992 filed as exhibit 10.1 to Form 10-K dated December
         31, 1993 is hereby incorporated herein by reference as exhibit 99.13.

99.14    Amended and Restated Limited  Partnership  Agreement of Nevada Meadows,
         A California  Limited  Partnership as exhibit 10.2 to Form   10-K dated
         December 31, 1993 is hereby incorporated herein by reference as exhibit
         99.14.
                                       43
<PAGE>
WNC California Housing Tax Credits II, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2006
<TABLE>
<CAPTION>
                                             -----------------------------------------   -------------------------------------------
                                                         As of March 31, 2006                       As of December 31, 2005
                                             -----------------------------------------   -------------------------------------------
                                                                               Mortgage
                                                                             Balances of
                                            Total Investment in  Amount of      Local                                          Net
Local Limited                                   Local Limited  Investment Paid  Limited           Buildings and  Accumulated   Book
Partnership Name             Location           Partnerships      to Date      Partnership  Land   Improvements  Depreciation  Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                       <C>                    <C>           <C>          <C>         <C>      <C>         <C>        <C>
601 Main Street Investors    Stockton, California   $1,656,000    $1,656,000  $3,894,000  $80,000  $5,484,000 $2,673,000  $2,891,000

ADI Development Partners     Delhi, California         699,000       699,000   1,173,000  108,000   1,893,000    671,000   1,330,000

Bayless Garden Apartments    Red Bluff,
Investors                    California              1,110,000     1,110,000   1,226,000   95,000   2,509,000  1,314,000   1,290,000

Blackberry Oaks, Ltd         Lodi, California          463,000       463,000   1,875,000  225,000   2,255,000    780,000   1,700,000

Jacob's Square               Exeter, California      1,324,000     1,324,000   1,538,000  304,000   2,627,000  1,178,000   1,753,000

Mecca Apartments II          Mecca, California       2,200,000     2,200,000   2,470,000  259,000   4,102,000  1,201,000   3,160,000

Nevada Meadows               Grass Valley,
                             California                459,000       459,000   1,877,000  298,000   2,301,000    717,000   1,882,000

Northwest Tulare             Ivanhoe, California     1,226,000     1,226,000   1,706,000  225,000   2,803,000  1,462,000   1,566,000
Associates

Orland Associates            Orland, California        432,000       432,000   1,678,000  216,000   2,074,000    756,000   1,534,000

Pine Gate Limited            Ahoskie, California       272,000       272,000   1,413,000   75,000   1,959,000    560,000   1,474,000
Partnership
</TABLE>
                                       44
<PAGE>
WNC California Housing Tax Credit II, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2006
<TABLE>
<CAPTION>
                                       ---------------------------------------------- ----------------------------------------------
                                               As of March 31, 2006                             As of December 31, 2005
                                       ---------------------------------------------- ----------------------------------------------
                                                                             Mortgage
                                                                            Balances of
                                         Total Investment in    Amount of      Local                                           Net
Local Limited                                  Local         Investment Paid  Limited            Buildings and   Accumulated   Book
Partnership Name          Location      Limited Partnerships    to Date     Partnership  Land    Improvements    Depreciation  Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                     <C>            <C>           <C>              <C>           <C>       <C>            <C>         <C>
Silver Birch Associates   Huron,
                          California       378,000            378,000     1,311,000     75,000    1,709,000     795,000      989,000

Twin Pines Apartments     Groveland,
Associates                California     1,278,000          1,278,000     1,789,000     45,000    3,335,000   1,703,000    1,677,000

Ukiah Terrace             Ukiah,
                          California       349,000            349,000     1,740,000    278,000    2,090,000   1,128,000    1,240,000

Woodlake Garden           Woodlake,
Apartments                California       548,000            548,000     1,862,000    113,000    2,468,000     911,000    1,670,000

Yucca-Warren Vista        Joshua Tree,
Associates                California       520,000            520,000     2,118,000     69,000    2,518,000     770,000    1,817,000
                                       -----------        -----------   ----------- ----------  ----------- -----------  -----------
                                       $12,914,000        $12,914,000   $27,670,000 $2,465,000  $40,127,000 $16,619,000  $25,973,000
                                       ===========        ===========   =========== ==========  =========== ===========  ===========
</TABLE>
                                       45
<PAGE>
WNC California Housing Tax Credits II, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2006
<TABLE>
<CAPTION>
                                             ---------------------------------------------------------------------------------------
                                                                       For the year ended December 31, 2005
                                             ---------------------------------------------------------------------------------------
                                                                                                                   Estimated Useful
Local Limited Partnership Name                  Rental Income  Net Income (Loss) Year Investment Acquired Status     Life (Years)
------------------------------------------------------------------------------------------------------------------------------------
<S>                                             <C>           <C>            <C>        <C>                   <C>
601 Main Street Investors                        $  490,000    $  (334,000)      1991       Completed                      39

ADI Development Partners                            164,000        (57,000)      1991       Completed                      40

Bayless Garden Apartments Investors                 199,000        (96,000)      1992       Completed                    27.5

Blackberry Oaks, Ltd.                               288,000          2,000       1992       Completed                      40

Jacob's Square                                      208,000       (123,000)      1993       Completed                    27.5

Mecca Apartments II                                 303,000       (132,000)      1993       Completed                      40

Nevada Meadows                                      231,000        (99,000)      1993       Completed                      40

Northwest Tulare Associates                         243,000        (44,000)      1991       Completed                    27.5

Orland Associates                                   269,000        (34,000)      1991       Completed                      40

Pine Gate Limited Partnership                       236,000        (34,000)      1994       Completed                      50

Silver Birch Associates                             175,000        (30,000)      1992       Completed                    27.5

Twin Pines Apartments Associates                    192,000       (186,000)      1991       Completed                    27.5

Ukiah Terrace                                       210,000        (53,000)      1991       Completed                    27.5

Woodlake Garden Apartments                          355,000         16,000       1991       Completed                      40

Yucca-Warren Vista Associates, Ltd.                 312,000        (14,000)      1991       Completed                      50
                                               ------------   -------------
                                               $  3,875,000   $ (1,218,000)
                                               ============   =============
</TABLE>
                                       46
<PAGE>
WNC California Housing Tax Credits II, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2005
<TABLE>
<CAPTION>
                                                             ---------------------------------------  ------------------------------
                                                                      As of March 31, 2005               As of December 31, 2004
                                                             ---------------------------------------  ------------------------------
                                                                              Mortgage
                                       Total Investment in   Amount of      Balances of
Local Limited                             Local Limited    Investment Paid Local Limited        Buildings and Accumulated   Net Book
Partnership Name      Location            Partnerships        to Date       Partnership   Land   Improvements Depreciation    Value
-----------------------------------------------------------------------------------------------------------------------------------
<S>              <C>                      <C>          <C>            <C>            <C>         <C>        <C>          <C>
601 Main Street      Stockton, California
Investors                                 $ 1,656,000     $ 1,656,000      $3,914,000    $80,000 $5,484,000   $2,479,000  $3,085,000

ADI Development      Delhi, California        699,000         699,000       1,183,000    108,000  1,821,000      621,000   1,308,000
Partners

Bayless Garden       Red Bluff,
Apartments Investors California             1,110,000       1,110,000       1,238,000     95,000  2,501,000    1,223,000   1,373,000

Blackberry Oaks,     Lodi, California         463,000         463,000       1,885,000    225,000  2,255,000      716,000   1,764,000
Ltd

Jacob's Square       Exeter, California     1,324,000       1,324,000       1,551,000    304,000  2,600,000    1,077,000   1,827,000

Mecca Apartments II  Mecca, California      2,200,000       2,200,000       3,147,000    259,000  4,102,000    1,102,000   3,259,000

Nevada Meadows       Grass Valley,
                     California               459,000         459,000       1,888,000    298,000  2,301,000      660,000   1,939,000

Northwest Tulare     Ivanhoe, California    1,226,000       1,226,000       1,722,000    225,000  2,789,000    1,358,000   1,656,000
Associates

Orland Associates    Orland, California       432,000         432,000       1,685,000    216,000  2,074,000      701,000   1,589,000

Pine Gate Limited    Ahoskie, California      272,000         272,000       1,421,000     75,000  1,886,000      519,000   1,442,000
Partnership
</TABLE>
                                       47
<PAGE>
WNC California Housing Tax Credits II, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2005
<TABLE>
<CAPTION>
                                                        --------------------------------------------   -----------------------------
                                                                   As of March 31, 2006                   As of December 31, 2005
                                                        --------------------------------------------   -----------------------------
                                                                Amount of  Mortgage
                                            TotalInvestment in Investment Balances of
Local Limited                                   Local Limited     Paid    Local Limited         Buildings and  Accumulated  Net Book
Partnership Name             Location            Partnerships    to Date   Partnership    Land   Improvements  Depreciation   Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                       <C>              <C>           <C>          <C>          <C>        <C>           <C>         <C>
Silver Birch Associates        Huron,
                               California        378,000      378,000    1,317,000     75,000     1,699,000     731,000    1,043,000

Twin Pines Apartments          Groveland,
Associates                     California      1,278,000    1,278,000    1,788,000     45,000     3,336,000   1,579,000    1,802,000

Ukiah Terrace(1)               Ukiah,
                               California        349,000      349,000    1,747,000    278,000     2,076,000   1,050,000    1,304,000

Woodlake Garden Apartments     Woodlake,
                               California        548,000      548,000    1,876,000    113,000     2,470,000     841,000    1,742,000

Yucca-Warren Vista Associates  Joshua Tree,
                               California        520,000      520,000    2,127,000     69,000     2,500,000     720,000    1,849,000
                                             -----------  -----------  ----------- ----------   ----------- -----------  -----------
                                             $12,914,000  $12,914,000  $28,489,000 $2,465,000   $39,894,000 $15,377,000  $26,982,000
                                             ===========  ===========  =========== ==========   =========== ===========  ===========
</TABLE>
(1) Identified on June 6, 2007 for disposition.

                                       48
<PAGE>
WNC California Housing Tax Credits II, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2005
<TABLE>
<CAPTION>
                                             ---------------------------------------------------------------------------------------
                                                                       For the year ended December 31, 2004
                                             ---------------------------------------------------------------------------------------
                                                                                                                 Estimated Useful
Local Limited Partnership Name                Rental Income  Net Income (Loss)       Year Investment Acquired  Status Life (Years)
------------------------------------------------------------------------------------------------------------------------------------
<S>                                     <C>                     <C>               <C>          <C>               <C>
601 Main Street Investors                           $ 534,000       $ (309,000)         1991       Completed             39

ADI Development Partners                              166,000          (46,000)         1991       Completed             40

Bayless Garden Apartments Investors                   199,000          (89,000)         1992       Completed           27.5

Blackberry Oaks, Ltd.                                 289,000          (37,000)         1992       Completed             40

Jacob's Square                                        209,000         (108,000)         1993       Completed           27.5

Mecca Apartments II                                   273,000         (179,000)         1993       Completed             40

Nevada Meadows                                        227,000          (37,000)         1993       Completed             40

Northwest Tulare Associates                           209,000         (133,000)         1991       Completed           27.5

Orland Associates                                     268,000          (32,000)         1991       Completed             40

Pine Gate Limited Partnership                         228,000          (31,000)         1994       Completed             50

Silver Birch Associates                               179,000          (29,000)         1992       Completed           27.5

Twin Pines Apartments Associates                      188,000         (213,000)         1991       Completed           27.5

Ukiah Terrace                                         210,000          (55,000)         1991       Completed           27.5

Woodlake Garden Apartments                            356,000           42,000          1991       Completed             40

Yucca-Warren Vista Associates, Ltd.                   311,000            1,000          1991       Completed             50
                                                  -----------     -------------
                                                  $ 3,846,000     $ (1,255,000)
                                                  ===========     =============
</TABLE>
                                       49
<PAGE>
WNC California Housing Tax Credits II, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2004
<TABLE>
<CAPTION>
                                           ---------------------------------------------- ------------------------------------------
                                                         As of March 31, 2004                       As of December 31, 2003
                                           ---------------------------------------------- ------------------------------------------
                                             Total Investment  Amount of      Mortgage Balances                              Net
Local Limited                               in Local Limited Investment Paid of Local Limited  Property and  Accumulated     Book
Partnership Name             Location         Partnerships       to Date       Partnerships    Improvements  Depreciation    Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                       <C>              <C>              <C>            <C>           <C>           <C>              <C>
601 Main Street Investors     Stockton,
                              California       $ 1,656,000     $ 1,656,000    $  3,933,000     $  5,564,000  $ 2,283,000 $ 3,281,000

ADI Development Partners      Delhi,
                              California           699,000         699,000       1,191,000        1,918,000      574,000   1,344,000

Bayless Garden Apartments     Red Bluff,
Investors                     California         1,110,000       1,110,000       1,249,000        2,594,000    1,131,000   1,463,000

Blackberry Oaks, Ltd          Lodi,
                              California           463,000         463,000       1,895,000        2,481,000      650,000   1,831,000

Jacob's Square                Exeter,
                              California         1,324,000       1,324,000       1,559,000        2,897,000      982,000   1,915,000

Mecca Apartments II           Mecca,
                              California         2,200,000       2,200,000       2,489,000        4,361,000    1,003,000   3,358,000

Nevada Meadows                Grass Valley,
                              California           459,000         459,000       1,898,000        2,599,000      602,000   1,997,000

Northwest Tulare              Ivanhoe,
Associates                    California         1,226,000       1,226,000       1,735,000        2,996,000    1,255,000   1,741,000

Orland Associates             Orland,
                              California           432,000         432,000       1,692,000        2,291,000      644,000   1,647,000

Pine Gate Limited             Ahoskie,
Partnership                   California           272,000         272,000       1,428,000        1,962,000      467,000   1,495,000
</TABLE>
                                       50
<PAGE>
WNC California Housing Tax Credits II, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2004
<TABLE>
<CAPTION>
                                               ---------------------------------------------- --------------------------------------
                                                            As of March 31, 2004                      As of December 31, 2003
                                               ---------------------------------------------- --------------------------------------
                                                 Total Investment     Amount of   Mortgage Balances                              Net
 Local Limited                                   in Local Limited Investment Paid of Local Limited Property and  Accumulated    Book
Partnership Name                 Location          Partnerships       to Date       Partnerships   Improvements  Depreciation  Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                         <C>                <C>             <C>             <C>             <C>          <C>          <C>
Silver Birch Associates           Huron,
                                  California          378,000        378,000       1,323,000     1,761,000      667,000    1,094,000

Twin Pines Apartments Associates  Groveland,
                                  California        1,278,000      1,278,000       1,789,000     3,380,000    1,450,000    1,930,000

Ukiah Terrace                     Ukiah,
                                  California          349,000        349,000       1,754,000     2,342,000      972,000    1,370,000

Woodlake Garden Apartments        Woodlake,
                                  California          548,000        548,000       1,888,000     2,494,000      773,000    1,721,000

Yucca-Warren Vista Associates     Joshua Tree,
                                  California          520,000        520,000       2,135,000     2,569,000      670,000    1,899,000
                                                  -----------    -----------     -----------   -----------   ----------- -----------
                                                  $12,914,000    $12,914,000     $27,958,000   $42,209,000  $14,123,000  $28,086,000
                                                  ===========    ===========     ===========   ===========   =========== ===========
</TABLE>
                                       51
<PAGE>
WNC California Housing Tax Credits II, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2004
<TABLE>
<CAPTION>
                                       ---------------------------------------------------------------------------------------------
                                                                  For the year ended December 31, 2003
                                       ---------------------------------------------------------------------------------------------
                                                                                                                    Estimated Useful
Local Limited Partnership Name                 Rental Income    Net Income (Loss) Year Investment Acquired  Status    Life (Years)
------------------------------------------------------------------------------------------------------------------------------------
<S>                                    <C>                  <C>                 <C>              <C>                  <C>
601 Main Street Investors                         $516,000        $(365,000)            1991              Completed         39

ADI Development Partners                           157,000          (55,000)            1991              Completed         40

Bayless Garden Apartments Investors                196,000          (97,000)            1992              Completed       27.5

Blackberry Oaks, Ltd.                              289,000           22,000             1992              Completed         40

Jacob's Square                                     209,000         (108,000)            1993              Completed       27.5

Mecca Apartments II                                254,000         (245,000)            1993              Completed         40

Nevada Meadows                                     225,000          (27,000)            1993              Completed         40

Northwest Tulare Associates                        201,000         (111,000)            1991              Completed       27.5

Orland Associates                                  301,000           44,000             1991              Completed         40

Pine Gate Limited Partnership                      230,000          (34,000)            1994              Completed         50

Silver Birch Associates                            176,000          (17,000)            1992              Completed       27.5

Twin Pines Apartments Associates                   180,000         (175,000)            1991              Completed       27.5

Ukiah Terrace                                      209,000          (43,000)            1991              Completed       27.5

Woodlake Garden Apartments                         365,000           66,000             1991              Completed         40

Yucca-Warren Vista Associates, Ltd.                318,000           22,000             1991              Completed         50
                                                ----------      ------------
                                                $3,826,000      $(1,123,000)
                                                ==========      ============
</TABLE>
                                       52
<PAGE>
                                   SIGNATURES


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 CALIFORNIA HOUSING TAX CREDITS II, L.P.

By:      WNC & Associates, Inc.,
         General Partner




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

Date:    June 25, 2007


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, Jr.
         --------------------------
         Wilfred N. Cooper, Jr.,
         Chief Executive  Officer,  President  and Director of WNC & Associates,
         Inc. (Chief executive officer)

Date:    June 25, 2007



By:      /s/ Thomas J. Riha
         ------------------
         Thomas J. Riha,
         Senior  Vice-President - Chief Financial  Officer  of WNC & Associates,
         Inc. (Chief financial officer and principal accounting officer)

Date:    June 25, 2007



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

Date:    June 25, 2007




By:      /s/ David N. Shafer
         -------------------
         David N Shafer,
         Executive Vice-President and Director of WNC & Associates, Inc.

Date:    June 25, 2007

                                       53
<PAGE>