WNC California Housing Tax Credits II, L.P.

                                   Exceptions
                                   ----------

The financial statements are presented as unaudited in the Form 10-K as of March
31,  2005 and 2004 and for the three years ended March 31, 2005 as the Report of
the Independent  Registered Public Accounting Firm could not be filed within the
prescribed  time period because the issuer was not able to obtain audit opinions
which refer to the auditing standards of the Public Company Accounting Oversight
Board  (United  States)  (PCAOB) of property  partnerships,  in which the issuer
holds  noncontrolling  limited  partner  interests.   The  non-affiliated  local
operating  partnership  general  partners engage the  accountants  auditing each
local operating partnership.

Historically,  the  audits,  and the  reports  thereon,  of the local  operating
partnerships  were  performed in accordance  with  Generally  Accepted  Auditing
Standards (GAAS).

On May 11,  2005 draft  guidance  was issued by the  Public  Company  Accounting
Oversight  Board which was  confirmed  on June 24, 2005 by the AICPA  Center for
Public Company Audit Firms,  that clearly  establishes  the  requirement for the
audit  reports of the  operating  partnerships  of a Public Fund to refer to the
auditing standards of the PCAOB.

The audits of the operating  partnerships  were performed  primarily  during the
months of January,  February and March and refer to Generally  Accepted Auditing
Standards. We have all appropriate originally signed opinions from the operating
partnerships; however, they do not refer to the auditing standards of the Public
Company Accounting Oversight Board.

Our independent  registered public accounting firm has performed an audit of the
registrant  but cannot issue an opinion in accordance  with the standards of the
Public Company  Accounting  Oversight Board (United States).  Therefore,  we are
filing our 10-K as "UNAUDITED" as it is without an audit opinion.


<PAGE>




                       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, 2005

                                       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 Section12(b) of the Act:

                                      NONE

           Securities registered pursuant to section12(g) of the Act:

                      UNITS OF LIMITED PARTNERSHIP INTEREST
                                (Title of Class)



<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 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


                                       2
<PAGE>


PART I.

Item 1.  Business

Organization

WNC California  Housing Tax Credits II, L.P. ("CHTC" or 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 that are eligible for Federal  low-income  housing tax credits
and, in certain cases,  California  low-income  housing tax credits ("Low Income
Housing Credit").

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 units of limited partnership  interest ("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  Units  representing  $17,726,000  had been  sold.  Holders  of 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 or
law.

Description of Business

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

In general,  in order to avoid  recapture  of Low Income  Housing  Credits,  the
Partnership  does not  expect  that it will  dispose of its  interests  in Local
Limited Partnerships ("Local Limited Partnership Interests") or approve the sale
by any Local Limited  Partnership of its Housing Complex prior to the end of the
applicable  Compliance  Period.  Because  of  (i)  the  nature  of  the  Housing
Complexes,  (ii) the  difficulty of predicting  the resale market for low-income
housing  15 or more years in the  future,  and (iii) the  ability of  government
lenders to  disapprove  of transfer,  it is not possible at this time to predict
whether the liquidation of the  Partnership's  assets and the disposition of the
proceeds,  if any, in  accordance  with the  Partnership's  Agreement of Limited
Partnership,  dated September 13, 1990 (the  "Partnership  Agreement"),  will be
able to be accomplished  promptly at the end of the 15-year  period.  If a Local
Limited  Partnership  is unable to sell its Housing  Complex,  it is anticipated
that the local general partner ("Local General Partner") will either continue to
operate such  Housing  Complex or take such other  actions as the Local  General
Partner  believes to be in the best interest of the Local  Limited  Partnership.
Notwithstanding the preceding,  circumstances  beyond the control of the General
Partner or the Local General  Partners may occur during the  Compliance  Period,
which would  require the  Partnership  to approve the  disposition  of a Housing
Complex prior to the end thereof,  possibly resulting in recapture of Low Income
Housing Credits.

                                       3
<PAGE>


As of March 31, 2005,  the  Partnership  had invested in fifteen  Local  Limited
Partnerships.  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 government programs promoting low- or
moderate-income housing.

Certain 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:

The Low Income  Housing  Credit rules are extremely  complicated.  Noncompliance
with these rules  results in the loss of future Low Income  Housing  Credits and
the  fractional  recapture  of Low Income  Housing  Credits  already  taken.  An
individual  Limited  Partner's  ability to use tax credits is  limited.  In most
cases,  the  annual  amount of Low Income  Housing  Credits  that an  individual
Limited Partner can use is limited to the tax liability due on the person's last
$25,000 of taxable  income.  Low Income Housing Credits may be the only material
benefit from the  Partnership  because  Limited  Partners may not get back their
capital.  Any  transactions  between  the  Partnership  and  Associates  and its
affiliates will entail conflicts of interest.

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  Credits,  and a  fractional  recapture  of prior Low
Income Housing Credits,  would occur. At any time, a foreclosure would result in
a loss of the Partnership's  investment in the Housing Complex.  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  Credits and  recapture  of Low Income
Housing 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
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 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 Credits
from the Local  Limited  Partnerships  in the  future.  Until the Local  Limited
Partnerships  have completed the 15 year Low Income  Housing  Credit  compliance
period risks exist for potential recapture of prior low Income Housing Credits.

There are limits on the transferability of units, including a prohibition on the
transfer of more than 50% of the Units in a 12-month  period.  No trading market
for the Units exists or is expected to develop.  Limited  Partners may be unable
to sell their Units except at a discount and should consider their 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.

                                       4
<PAGE>



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.

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  Credits.  The  initial  programs  are  completing  their
compliance periods.

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

Upon identifying  those  properties with the highest  potential for a successful
sale,  refinancing  or  syndication,  the  Partnership  expects to proceed  with
efforts to liquidate those properties.  The objective is to maximize the Limited
Partners' return wherever possible and, ultimately, to wind down the Partnership
when it no longer  provides tax  benefits to Limited  Partners.  However,  Local
Limited  Partnership  interests  may be disposed any time by  Associates  in its
discretion.  To date no  properties  in the  Partnership  have been selected for
disposition.

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 indicated:




                                       5

<PAGE>
<TABLE>
<CAPTION>


                                            -------------------------------- -------------------------------------------------------
                                                   As of March 31, 2005                       As of December 31, 2004
                                            -------------------------------- -------------------------------------------------------
                                                                                                         Estimated       Mortgage
                                                   Partnership's                                         Aggregate      Balances of
                                      General      Total Investment  Amount of      Number               Low Income       Local
Local Limited                         Partner      in Local Limited  Investment      of                   Housing        Limited
Partnership Name        Location      Name         Partnerships     Paid to Date    Units    Occupancy    Credits (1)   Partnership
------------------------------------------------------------------------------------------------------------------------------------
<S>                     <C>           <C>           <C>           <C>               <C>       <C>      <C>              <C>
601 Main Street         Stockton,     Daniels C.
Investors               California    Louge         $ 1,656,000    $ 1,656,000       165        96%     $ 4,080,000      $ 3,914,000

ADI Development         Delhi,        Anthony
Partners                California    Donovan           699,000        699,000        31        97%       1,757,000        1,183,000

Bayless Garden
Investors               Red Bluff,    Douglas W.
Apartments              California    Young           1,110,000      1,110,000        46        98%       2,741,000        1,238,000

Blackberry              Lodi,         Bonita Homes
Oaks, Ltd               California    Incorporated      463,000        463,000        42       100%       1,063,000        1,885,000

                                      Philip R.
                                      Hammond,  Jr.
Jacob's                 Exeter,       and Diane M.
Square                  California    Hammond         1,324,000      1,324,000        45        93%       2,933,000        1,551,000

                                      Sam Jack,
                                      Jr. and
Mecca                   Mecca,        Sam Jack and
Apartments II           California    Associates      2,200,000      2,200,000        60        97%       5,183,000        3,147,000

                                      Thomas G.
                                      Larson,
                                      William H.
                        Grass         Larson and
Nevada                  Valley,       Raymond L.
NevadaMeadows           California    Tetzlaff          459,000        459,000        34        94%       1,030,000        1,888,000

                                      Philip R.
Northwest                             Hammond, Jr.
Tulare                  Ivanhoe,      and Diane M.
Associates              California    Hammond         1,226,000      1,226,000        54       100%       2,950,000        1,722,000

                                      Richard E.
                                      Huffman
Orland                  Orland,       Robert A.
Associates              California    and Ginno         432,000        432,000        40        95%         972,000        1,685,000

</TABLE>


                                       6
<PAGE>
<TABLE>
<CAPTION>


                                            -------------------------------- -------------------------------------------------------
                                                   As of March 31, 2005                       As of December 31, 2004
                                            -------------------------------- -------------------------------------------------------
                                                                                                            Estimated      Mortgage
                                                   Partnership's                                            Aggregate    Balances of
                                      General      Total Investment  Amount of     Number                   Low Income      Local
Local Limited                         Partner      in Local Limited  Investment     of                      Housing        Limited
Partnership Name        Location      Name         Partnerships     Paid to Date   Units    Occupancy       Credits (1)  Partnership
------------------------------------------------------------------------------------------------------------------------------------
<S>                     <C>           <C>           <C>            <C>               <C>       <C>     <C>              <C>
                                      Regency
                                      Investment
                                      Associates,
                                      Inc.,Boyd
                                      Management,
Pine Gate                             Inc. and
Limited                 Ahoskie,      Gordon L.
Partnership             California    Blackwell         272,000        272,000        56        98%         611,000        1,421,000

                                      Philip R
                                      Hammond,
Silver                                Jr. and
Birch                   Huron,        Diane M.
Associates              California    Hammond           378,000        378,000        35        94%       1,131,000        1,317,000

Twin                                  Donald S.
Pines                                 Kavanagh
Apartments              Groveland     and John N.
Associates              California    Brezzo          1,278,000      1,278,000        39        97%       3,055,000        1,788,000

                                      Thomas G
                                      Larson,
                                      William H.
                                      Larson and
Ukiah                   Ukiah,        Raymond L.
Terrace                 California    Tetzlaff          349,000        349,000        41       100%         825,000        1,747,000

                                      David J.
Woodlake                              Michael
Garden                  Woodlake,     and Pamela J.
Apartments              California    Michael           548,000        548,000        48        88%       1,374,000        1,876,000

Yucca-Warren            Joshua        WNC &
Vista                   Tree,         Associates,
Associates              California    Inc.              520,000        520,000        50        98%       1,251,000        2,127,000
                                                    -------------  -----------     ----         ---    ------------     ------------

                                                    $ 12,914,000   $12,914,000       786        96%    $ 30,956,000     $ 28,489,000
                                                    =============  ===========      ====        ===    ============     ============
</TABLE>


(1) Represents  aggregate  total  anticipated  Low Income Housing  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  Credits  have been
received from the Local Limited Partnerships.  Accordingly, the Partnership does
not  anticipate  a  significant  amount  of Low  Income  Housing  Credits  being
allocated to the Limited Partners in the future.


                                       7
<PAGE>

<TABLE>
<CAPTION>

                                             -----------------------------------------------------------------------
                                                              For the year ended December 31, 2004
                                             -----------------------------------------------------------------------
                                                                                                     Low  Income
                                                                                                     Housing Credits
Local Limited                                                                                        Allocated to
Partnership Name                                      Rental Income          Net Income (Loss)       Partnership
      --------------------------------------------------------------------------------------------------------------
<S>   <C>                                               <C>                <C>                                 <C>
      601 Main Street Investors                       $   534,000           $   (309,000)                      99%

      ADI Development Partners                            166,000                (46,000)                      90%

      Bayless Garden Apartments Investors                 199,000                (89,000)                      99%

      Blackberry Oaks, Ltd                                289,000                (37,000)                      99%

      Jacob's Square                                      209,000               (108,000)                      99%

      Mecca Apartments II                                 273,000               (179,000)                      99%

      Nevada Meadows                                      227,000                (37,000)                      99%

      Northwest Tulare Associates                         209,000               (133,000)                      99%

      Orland Associates                                   268,000                (32,000)                      99%

      Pine Gate Limited Partnership                       228,000                (31,000)                      99%

      Silver Birch Associates                             179,000                (29,000)                      99%

      Twin Pines Apartments Associates                    188,000               (213,000)                      99%

      Ukiah Terrace                                       210,000                (55,000)                      99%

      Woodlake Garden Apartments                          356,000                 42,000                       95%

      Yucca-Warren Vista Associates, Ltd                  311,000                  1,000                       99%
                                                      -----------           ------------
                                                      $ 3,846,000          $ (1,255,000)
                                                      ===========           ============


</TABLE>


                                       8
<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  Units  are not  traded on a public  exchange  but were sold  through a
     public offering.  It is not anticipated that any public market will develop
     for the  purchase  and  sale of any  Unit and  none  exists.  Units  can be
     assigned  or  otherwise  transferred  only if certain  requirements  in the
     Partnership Agreement are satisfied.

(b)  At March 31, 2005,  there were 1,201  Limited  Partners and 15 assignees of
     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)  Except as may have  otherwise been  previously  reported,  no  unregistered
     securities were sold by the Partnership  during the three years ended March
     31, 2005, 2004 and 2003.


Item 5b. Use of Proceeds

NOT APPLICABLE

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

NONE



                                       9
<PAGE>


<TABLE>
<CAPTION>

Item 6.  Selected Financial Data

Selected balance sheet information for the Partnership is as follows:

                                                                     March 31
                              ------------------------------------------------------------------

                                2005         2004         2003          2002           2001
                              ----------   ----------   ----------   ------------   ------------
                             (unaudited)

<S>                           <C>        <C>          <C>          <C>            <C>
ASSETS
Cash and cash equivalents     $ 183,262  $   206,876  $   220,039  $     257,975  $     281,525
Investments in limited
  partnerships, net              86,215    1,546,722    2,675,025      3,494,236      4,391,885
Due from affiliates                   -        3,646        3,646          3,646         59,554
                              ----------   ----------   ----------  ------------   ------------

                              $ 269,477  $ 1,757,244  $ 2,898,710  $   3,755,857  $   4,732,964
                              ==========   ==========   ==========   ============   ============
LIABILITIES
Accrued fees and
  expenses due to
  general partner and
  affiliates                  $2,197,622 $ 1,997,095  $ 1,816,544  $   1,631,958  $   1,448,236
PARTNERS' EQUITY
(DEFICIT)                     (1,928,145)   (239,851)   1,082,166      2,123,899      3,284,728
                              ----------   ----------   ----------   ------------   ------------

                              $ 269,477  $ 1,757,244  $ 2,898,710  $   3,755,857  $   4,732,964
                              ==========   ==========   ==========   ============   ============

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

                                                 For the Years Ended
                                                      March 31
                          ----------------------------------------------------- ----------

                             2005         2004         2003          2002         2001
                          -----------  -----------   ----------   -----------   ----------
                          (unaudited)

<S>                      <C>          <C>           <C>          <C>           <C>
Loss from
operations   (Note 1)   $ (1,302,119)$   (991,037) $   (289,638) $   (337,782) $  (272,354)
Equity in losses of
  limited partnerships      (386,175)    (330,980)     (752,095)     (823,047)    (960,469)
                          -----------  -----------   ----------    -----------  -----------

Net loss                $ (1,688,294)$ (1,322,017) $ (1,041,733) $ (1,160,829)$ (1,232,823)
                          ===========  ===========   ==========    ===========  ==========
Net loss allocated to:
   General partner      $    (16,882) $   (13,220)  $   (10,417) $    (11,608) $   (12,328)
                          ===========  ===========   ==========    ============ ===========

   Limited partners     $ (1,671,412)$ (1,308,797)  $(1,031,316) $ (1,149,221) $(1,220,495)
                          ===========  ===========   ==========    ============ ===========
Net loss per limited
  partner unit          $     (94.29) $    (73.83)  $    (58.18) $     (64.83) $    (68.85)
                          ===========  ===========   ==========    ===========  ===========
Outstanding  weighted
 limited  partner units       17,726       17,726        17,726        17,726       17,726
                          ===========  ===========   ==========    ===========  ===========
</TABLE>

Note 1 - Loss  from  operations  for the  years  ended  Mach  31,  2005 and 2004
includes a charge for impairment  losses on investments in limited  partnerships
of $1,054,476 and 744,836,  respectively.  (See Note 2 to the audited  financial
statements.)

                                       10
<PAGE>



<TABLE>
<CAPTION>

                                            For the Years Ended
                                                 March 31
                          -------------------------------------------------------------

                             2005         2004        2003        2002         2001
                          -----------  -----------  ----------  ----------   ----------
                          (unaudited)

<S>                     <C>           <C>          <C>         <C>          <C>
Net cash provided by
 (used in):
   Operating
     activities         $    (26,714) $   (18,466) $  (51,873) $  (44,975) $   (70,146)
   Investing
     activities                3,100        5,303      13,937      21,425       37,041
                          -----------  -----------  ----------  ----------   ----------

Net decrease in cash
  and cash equivalents       (23,614)     (13,163)    (37,936)    (23,550)     (33,105)

Cash and cash
  equivalents,
  beginning of period        206,876      220,039     257,975     281,525      314,630
                          -----------  -----------  ----------  ----------   ----------

Cash and cash
  equivalents, end of
  period                $    183,262  $   206,876  $  220,039  $  257,975  $   281,525
                          ===========  ===========  ==========  ==========   ==========

Low Income Housing Credits per limited partner unit were as follows for the years ended December 31:

                                     2004            2003             2002             2001            2000
                                 -------------   -------------    -------------    -------------   --------------

    Federal                    $           33  $           36   $           80   $          114  $           117

    State                                   -               -                -                -                -
                                 -------------   -------------    -------------    -------------   --------------

    Total                      $           33  $           36   $           80   $          114  $           117
                                 =============   =============    =============    =============   ==============
</TABLE>

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,
"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 us or
persons  acting on our behalf  are  expressly  qualified  in their  entirety  by
cautionary  statements  in this Form 10-K and in other reports we 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  Partnerhsip's  reported
financial results, and certain of the Partnership's risks and uncertainties.


                                       11
<PAGE>

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.

Method of Accounting For Investments in Limited Partnerships

The Partnership  accounts for its investments in limited  partnerships using the
equity method of  accounting,  whereby the  Partnership  adjusts its  investment
balance for its share of the Local Limited  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  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 to the audited finanacial statements).

Equity in losses of 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 unaudited 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 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.



                                       12
<PAGE>



Income Taxes

No provision for income taxes has been  recorded in the financial  statements as
any  liability  and or benefits  for income  taxes flows to the  partners of the
Partnership and is their obligation and/or benefit.  For income tax purposes the
Partnership reports on a calendar year basis.

Certain 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:

The Low Income  Housing  Credit rules are extremely  complicated.  Noncompliance
with these rules results in the loss of future Low Income  Housing  Credit s and
the fractional  recapture of Low Income Housing  Credits  already taken. In most
cases the annual amount of Low Income Housing 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
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  Credits,  a fractional  recapture of prior Low Income
Housing  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
Credits and recapture of Low Income Housing 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
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.

No trading  market  for the Units  exists or is  expected  to  develop.  Limited
Partners  may be unable to sell  their  Units  except at a  discount  and should
consider their 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.

Substantially  all of the Low Income Housing 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 Credits
from the Local  Limited  Partnerships  in the  future.  Until the Local  Limited
Partnerships  have completed the 15 year Low Income  Housing  Credit  compliance
period risks exist for potential recapture of prior low Income Housing Credits.


                                       13
<PAGE>

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.  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 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, 2005 consisted primarily of approximately
$183,000  in cash  and  cash  equivalents  and net  investments  in the 15 Local
Limited  Partnerships of  approximately  $86,000.  Liabilities at March 31, 2005
totaled  approximately  $2,198,000  which consisted  primarily of accrued annual
management fees due to the General Partner and/or affiliates.

Results of Operations

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.   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 $(3,000) 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  $(731,000)  for the year ended March 31,
2004.

Year  Ended  March  31,  2004   Compared  to  Year  Ended  March  31,  2003  The
Partnership's  net loss for the year  ended  March  31,  2004 was  $(1,322,000),
reflecting  an  increase  of  $(280,000)  from  the  net  loss  of  $(1,042,000)
experienced  for the year ended  March 31,  2003.  The  increase  in net loss is
largely due to an increase in loss from  operations of  $(701,000)  for the year
ended March 31, 2004 compared to the year ended March 31, 2003.  The increase in
loss from operations was primarily caused by a $(745,000) 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 four limited
partnerships.  The  impairment  loss was  offset  by a  decrease  of  $6,000  in
amortization of acquisition fees and costs, a decrease of $5,000 in write-off of
advances to limited partnerships, a $2,000 decrease in other expenses along with
an increase in total income of $31,000. The loss from operations was offset by a
decrease of equity in losses of limited  partnerships  of $421,000 to $(331,000)
for the year ended March 31, 2004 from  $(752,000)  for the year ended March 31,
2003. The decrease in equity in losses of limited  partnerships is primarily due
to not  recognizing  certain  losses  of the  Local  Limited  Partnerships.  The
investments in such Local Limited Partnerships had reached $0 at March 31, 2003.
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


                                       14
<PAGE>

Liquidity and Capital Resources

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).

Year Ended  March 31,  2004  Compared to Year Ended March 31, 2003 Net cash used
during the year ended  March 31, 2004 was  $(13,000),  compared to net cash used
for the year ended March 31, 2003 of $(38,000). The change was due to a decrease
in distributions  received from Local Limited Partnerships of $9,000 in the year
ended  March  31,  2004.  In  addition,  net cash used in  operating  activities
decreased  $33,000  due  primarily  to an increase  in  reporting  fee income of
$31,000.

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, 2005 and 2004. The Partnership's original investment in
the Local Limited  Partnership  approximated  $1,278,000.  Through  December 31,
2004, 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, 2004 and 2003, the
net  carrying  value of such  property  on the  books and  records  of the Local
Limited Partnership totaled $1,801,000 and $1,930,000, respectively.

During the years ended March 31, 2005, 2004, and 2003,  accrued payables,  which
consist  primarily of related party  management  fees due to the General Partner
increased by $183,000, $181,000 and $185,000,  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, 2005, 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, 2005:
<TABLE>
<CAPTION>
                                      2006        2007       2008       2009       2010      Thereafter    Total

                                   -----------  ---------  ---------  ---------  ---------  -----------  -----------
<S>                              <C>          <C>        <C>        <C>        <C>        <C>          <C>
Asset Management Fees (1)        $  2,396,656 $  210,084 $  210,084 $  210,084 $  210,084 $  7,352,940 $ 10,589,932
Capital Contributions Payable
   to Lower Tier Partnerships               -          -          -          -          -            -            -
                                   -----------  ---------  ---------  ---------  ---------  -----------  -----------
Total contractual cash
   obligations                   $  2,396,656 $  210,084 $  210,084 $  210,084 $  210,084 $  7,352,940 $ 10,589,932
                                   ===========  =========  =========  =========  =========  ===========  ===========
</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,  2005 have been  included in the 2006
     column.  The General  Partner does not  anticipate  that these fees will be
     paid until such time as capital  reserves are 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

                                       15
<PAGE>


The Partnership has no off-balance sheet arrangements.

Exit Strategy

The IRS  compliance  period for  low-income  housing  tax credit  properties  is
generally  15 years from  occupancy  following  construction  or  rehabilitation
completion.  WNC was one of the first in the industry to offer investments using
the tax credit.  Now these very first programs are completing  their  compliance
period.

With that in mind, we are continuing our review of the  Partnership's  holdings,
with special  emphasis on the more mature  properties  including those that have
satisfied the IRS compliance requirements. Our review will consider many factors
including  extended  use  requirements  on the  property  (such as those  due to
mortgage  restrictions  or state  compliance  agreements),  the condition of the
property,  and the tax consequences to the Limited Partners from the sale of the
property.

Upon identifying  those  properties with the highest  potential for a successful
sale, refinancing or syndication, we expect to proceed with efforts to liquidate
those  properties.  Our  objective is to maximize the Limited  Partners'  return
wherever  possible  and,  ultimately,  to wind down  those  funds that no longer
provide  tax  benefits  to  Limited  Partners.  To  date  no  properties  in the
Partnership have been selected.

Impact of New Accounting Pronouncements

As of March 31,  2004,  the  Partnership  adopted FASB  Interpretation  No. 46 -
Revised,  Consolidation  of  Variable  Interest  Entities  ("FIN46R").  FIN  46R
provides  guidance as to when a company should include the assets,  liabilities,
and  activities  of  a  variable   interest  entity  ("VIE")  in  its  financial
statements,   and  when  a  company  should  disclose   information   about  its
relationship  with a VIE. A VIE is a legal structure used to conduct  activities
or hold assets, and a VIE must be consolidated by a company if it is the primary
beneficiary  because a primary  beneficiary absorbs the majority of the entity's
expected losses, the majority of the expected residual returns, or both.

Under FIN 46R, the Local Limited  Partnerships in which the Partnership  invests
are VIEs. However,  management does not consolidate the Partnership's  interests
in these VIE's under FIN46R,  as the  Partnership  is not considered the primary
beneficiary.  Rather,  the  Partnership  currently  records  the  amount  of the
investment in the Local Limited  Partnerships  as an asset in the balance sheet,
and  recognizes  its share of Local  Limited  Partnership  income or loss in the
statement of operations.

The Partnership's balance in its investment in Local Limited Partnerships,  plus
the risk of recapture of tax credits previously recognized on these investments,
represents its maximum exposure to loss. The  Partnership's  exposure to loss is
mitigated  by  the  condition  and  financial   performance  of  the  underlying
properties,  as well as the  strength of the Local  General  Partners  and their
guarantee against credit recapture.

In May 2005, the FASB issued Statement of Financial Accounting Standards No. 154
( SFAS 154),  "Accounting Changes and Error Corrections" which provides guidance
on the  accounting  for and  reporting of accounting  changes and  correction of
errors.  This  statement  changes the  requirements  for the  accounting for and
reporting  of a change in  accounting  principle  and  applies to all  voluntary
changes in  accounting  principle.  It also  applies to changes  required  by an
accounting pronouncement in the unusual instance that the pronouncement does not
include  specific  transition  provisions.   This  statement  is  effective  for
accounting  changes and  corrections  of errors made in fiscal  years  beginning
after December 15, 2005. The  Partnership  does not anticipate a material effect
upon the adoption of this statement.

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk

NOT APPLICABLE

Item 8.  Financial Statements and Supplementary Data

                                       16
<PAGE>


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

                                 BALANCE SHEETS

 Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.


<TABLE>
<CAPTION>


                                                                                   March 31
                                                                         ------------------------------

                                                                             2005             2004
                                                                         -------------    -------------

<S>                                                                    <C>              <C>
ASSETS

Cash and cash equivalents                                              $      183,262   $      206,876
Investments in limited partnerships, net (Notes 2 and 3)                       86,215        1,546,722
Due from affiliates (Note 2)                                                        -            3,646
                                                                         -------------    -------------

                                                                       $      269,477   $    1,757,244
                                                                         =============    =============

LIABILITIES AND PARTNERS' EQUITY (DEFICIT)

Liabilities:
   Accrued fees and expenses due to General Partner
     and affiliates (Note 3)                                           $    2,197,622   $    1,997,095
                                                                         -------------    -------------

Commitments and contingencies

Partners' deficit:
    General Partner                                                          (184,542)        (167,660)
    Limited Partners (20,000 units authorized; 17,726 units
     issued and outstanding)                                               (1,743,603)         (72,191)
                                                                         -------------    -------------

      Total partners' deficit                                              (1,928,145)        (239,851)
                                                                         -------------    -------------

                                                                       $      269,477   $    1,757,244
                                                                         =============    =============
</TABLE>

                 See accompanying notes to financial statements
                                       17
<PAGE>


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

                            STATEMENTS OF OPERATIONS

Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.

<TABLE>
<CAPTION>



                                                                        For the Years Ended
                                                                             March 31
                                                          ------------------------------------------------

                                                              2005             2004              2003
                                                          -------------    -------------     -------------

<S>                                                     <C>              <C>               <C>
Interest income                                         $          654   $        1,950    $        3,504
Reporting fees                                                   7,506           33,606             2,620
Distribution income                                              3,620            1,120                 -
                                                          -------------    -------------     -------------

   Total income                                                 11,780           36,676             6,124
                                                          -------------    -------------     -------------

Operating expenses:
  Amortization (Notes 2 and 3)                                  16,756           47,184            53,179
  Write-off of advances to limited
   partnership (Note 2)                                              -                -             5,141
  Write-off of due from affiliates                               3,646                -                 -
  Asset management fees (Note 3)                               210,084          210,084           210,084
  Impairment loss (Note 2)                                   1,054,476          744,836                 -
  Other                                                         28,937           25,609            27,358
                                                          -------------    -------------     -------------

    Total operating expenses                                 1,313,899        1,027,713           295,762
                                                          -------------    -------------     -------------

Loss from operations                                        (1,302,119)        (991,037)         (289,638)

Equity in losses of limited
    partnerships (Note 2)                                     (386,175)        (330,980)         (752,095)
                                                          -------------    -------------     -------------

Net loss                                                $   (1,688,294)  $   (1,322,017)   $   (1,041,733)
                                                          =============    =============     =============

Net loss allocated to:
   General Partner                                      $      (16,882)  $      (13,220)   $      (10,417)
                                                          =============    =============     =============

   Limited Partners                                     $   (1,671,412)  $   (1,308,797)   $   (1,031,316)
                                                          =============    =============     =============

Net loss per limited partner unit                       $       (94.29)  $       (73.83)   $       (58.18)
                                                          =============    =============     =============

Outstanding weighted limited
  partner units                                                 17,726           17,726            17,726
                                                          =============    =============     =============
</TABLE>


                 See accompanying notes to financial statements
                                       18

<PAGE>


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

                    STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

               For the Years Ended March 31, 2005, 2004, and 2003

Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.

<TABLE>
<CAPTION>
                                                               General             Limited             Total
                                                               Partner             Partners
                                                            ---------------     ---------------    ---------------
<S>                                                       <C>                <C>                 <C>
Partners' (deficit) equity at March 31, 2002               $      (144,023)   $       2,267,922   $     2,123,899

Net loss                                                           (10,417)          (1,031,316)       (1,041,733)
                                                            ---------------     ---------------    ---------------

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)
                                                            ===============      ===============    ===============
</TABLE>

                 See accompanying notes to financial statements
                                       19

<PAGE>


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

                            STATEMENTS OF CASH FLOWS

Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.

<TABLE>
<CAPTION>
                                                                             For the Years
                                                                            Ended March 31
                                                           --------------------------------------------------

                                                               2005               2004             2003
                                                           --------------     -------------    --------------

<S>                                                     <C>                <C>              <C>
Cash flows from operating activities:
   Net loss                                             $    (1,688,294)    $   (1,322,017)  $    (1,041,733)
   Adjustments  to  reconcile  net loss to
     net cash used in operating
     activities:
     Amortization                                                16,756             47,184            53,179
     Equity in losses of limited
     partnerships                                               386,175            330,980           752,095
     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                                             200,527            180,551           184,586
                                                           --------------     -------------    --------------

Net cash used in operating activities                           (26,714)           (18,466)          (51,873)
                                                           --------------     -------------    --------------

Cash flows from investing activities:
   Distributions from limited
    partnerships                                                  3,100              5,303            13,937
                                                           --------------     -------------    --------------

Net decrease in cash and
  cash equivalents                                               23,614)           (13,163)          (37,936)

Cash and cash equivalents, beginning
  of period                                                     206,876            220,039           257,975
                                                           --------------     -------------    --------------

Cash and cash equivalents, end of
  period                                                 $      183,262     $      206,876   $       220,039
                                                           ==============     =============    ==============

SUPPLEMENTAL DISCLOSURE OF
     CASH FLOW INFORMATION:
    Taxes paid                                           $          800     $          800   $          800
                                                          ==============     ==============   ==============
</TABLE>
                 See accompanying notes to financial statements
                                       20



<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                For the Years Ended March 31, 2005, 2004 and 2003

Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.

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
Partnership has no employees of its 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 at $1,000
per Unit  ("Units").  The  offering of Units  concluded in January 1993 at which
time 17,726 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 limited  partners will be
allocated the  remaining  99% of these items in  proportion to their  respective
investments.

After the limited  partners  have received  proceeds from a sale or  refinancing
equal to their capital  contributions and their return on investment (as defined
in the  Partnership  Agreement)  and the General  Partner has received  proceeds
equal  to its  capital  contribution  and a  subordinated  disposition  fee  (as
described in Note 3) from the  remainder,  any  additional  sale or  refinancing
proceeds will be distributed 90% to the limited partners (in proportion to their
respective investments) and 10% to the General Partner.


                                       21
<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For the Years Ended March 31, 2005, 2004 and 2003

Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.

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

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:

The Low Income  Housing  Credit rules are extremely  complicated.  Noncompliance
with these rules  results in the loss of future Low Income  Housing  Credits and
the fractional  recapture of Low Income Housing  Credits  already taken. In most
cases the annual amount of Low Income Housing 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
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  Credits,  a fractional  recapture of prior Low Income
Housing  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
Credits and recapture of Low Income Housing 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
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 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 Credits
from the Local  Limited  Partnerships  in the  future.  Until the Local  Limited
Partnerships  have completed the 15 year Low Income  Housing  Credit  compliance
period risks exist for potential recapture of prior Low Income Housing Credits.

                                       22
<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For the Years Ended March 31, 2005, 2004 and 2003

Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.

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 Units  exists or is  expected  to  develop.  Limited
Partners  may be unable to sell  their  Units  except at a  discount  and should
consider their 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 from  occupancy  following  construction  or  rehabilitation
completion.  WNC was one of the first in the industry to offer investments using
the tax credit.  Now these very first programs are completing  their  compliance
period.

With that in mind,  the  Partnership  is continuing to review the  Partnership's
holdings,  with special emphasis on the more mature  properties  including those
that have satisfied the IRS compliance  requirements.  The Partnership's  review
will consider many factors  including  extended use requirements on the property
(such as those due to mortgage restrictions or state compliance agreements), the
condition of the property, and the tax consequences to the Limited Partners from
the sale of the property.

Upon identifying  those  properties with the highest  potential for a successful
sale,  refinancing  or  syndication,  the  Partnership  expects to proceed  with
efforts  to  liquidate  those  properties.  The  Partnership's  objective  is to
maximize the Limited Partners' return wherever possible and, ultimately, to wind
down those funds that no longer  provide tax  benefits to Limited  Partners.  To
date no properties in the Partnership have been selected for disposition.


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

The Partnership  accounts for its investments in limited  partnerships using the
equity method of  accounting,  whereby the  Partnership  adjusts its  investment
balance for its share of the Local Limited  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  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).

                                       23
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For the Years Ended March 31, 2005, 2004 and 2003

Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.

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

Equity in losses of 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 unaudited 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 (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.

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 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,
2005 and 2004, the Partnership had no cash equivalents.

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

At March  31,  2005,  the  Partnership  maintained  cash  balances  at a certain
financial institution in excess of the federally insured maximum.

Net Loss Per Limited Partner Unit
---------------------------------

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

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

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

                                       24
<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For the Years Ended March 31, 2005, 2004 and 2003

Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.

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

New Accounting Pronouncements
-----------------------------

As of March 31,  2004,  the  Partnership  adopted FASB  Interpretation  No. 46 -
Revised,  Consolidation  of  Variable  Interest  Entities  ("FIN46R").  FIN  46R
provides  guidance as to when a company should include the assets,  liabilities,
and  activities  of  a  variable   interest  entity  ("VIE")  in  its  financial
statements,   and  when  a  company  should  disclose   information   about  its
relationship  with a VIE. A VIE is a legal structure used to conduct  activities
or hold assets, and a VIE must be consolidated by a company if it is the primary
beneficiary  because a primary  beneficiary absorbs the majority of the entity's
expected losses, the majority of the expected residual returns, or both.

Under FIN 46R, the Local Limited  Partnerships in which the Partnership  invests
are VIEs. However,  management does not consolidate the Partnership's  interests
in these VIE's under FIN46R,  as the  Partnership  is not considered the primary
beneficiary.  Rather,  the  Partnership  currently  records  the  amount  of the
investment in the Local Limited  Partnerships  as an asset in the balance sheet,
and  recognizes  its share of Local  Limited  Partnership  income or loss in the
statement of operations.

The Partnership's balance in its investment in Local Limited Partnerships,  plus
the risk of recapture of tax credits previously recognized on these investments,
represents its maximum exposure to loss. The  Partnership's  exposure to loss is
mitigated  by  the  condition  and  financial   performance  of  the  underlying
properties,  as well as the  strength of the Local  General  Partners  and their
guarantee against credit recapture.

In May 2005, the FASB issued Statement of Financial Accounting Standards No. 154
( SFAS 154),  "Accounting Changes and Error Corrections" which provides guidance
on the  accounting  for and  reporting of accounting  changes and  correction of
errors.  This  statement  changes the  requirements  for the  accounting for and
reporting  of a change in  accounting  principle  and  applies to all  voluntary
changes in  accounting  principle.  It also  applies to changes  required  by an
accounting pronouncement in the unusual instance that the pronouncement does not
include  specific  transition  provisions.   This  statement  is  effective  for
accounting  changes and  corrections  of errors made in fiscal  years  beginning
after December 15, 2005. The  Partnership  does not anticipate a material effect
upon the adoption of this statement.

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.

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

As of the periods  presented,  the Partnership has acquired limited  partnership
interests in fifteen 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
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 tax credits of the Limited Partnership.



                                       25
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For the Years Ended March 31, 2005, 2004 and 2003

Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.

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

The  Partnership's  investments  in Local Limited  Partnerships  as shown in the
balance  sheets  at March 31,  2005 and 2004 are  approximately  $3,069,000  and
$3,314,000, 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 tax
credits  allocated  to  the  fund  and  the  estimated  residual  value  of  the
investment.   Accordingly,  the  Partnership  recorded  an  impairment  loss  of
$1,054,476,  $744,836,  and $0 during the years ended March 31,  2005,  2004 and
2003, respectively.

Distributions  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 income.

At March 31, 2005 the investment accounts in certain Local Limited  Partnerships
have  reached  a zero  balance.  Consequently,  a portion  of the  Partnership's
estimate  of its share of losses for the years ended  March 31,  2005,  2004 and
2003, amounting to approximately $902,000, $604,000 and $666,000,  respectively,
have not been  recognized.  As of March 31,  2005,  the  aggregate  share of net
losses not recognized by the Partnership amounted to $4,924,000.

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
                                                          ----------------------------------------------------
                                                               2005              2004               2003
                                                          ---------------   ---------------    ---------------
<S>                                                    <C>                 <C>                <C>
Investments per balance sheet, beginning of period      $      1,546,722   $      2,675,025   $      3,494,236
Distributions received from limited partnerships                  (3,100)            (5,303)           (13,937)
Equity in losses of limited partnerships                        (386,175)          (330,980)          (752,095)
Impairment loss                                               (1,054,476)          (744,836)                 -
Amortization  of  capitalized  acquisition  fees and
costs                                                            (16,756)           (47,184)           (53,179)
                                                           ---------------   ---------------    ---------------

Investments per balance sheet, end of period            $         86,215   $      1,546,722   $      2,675,025
                                                           ===============   ===============    ===============
</TABLE>


                                       26
<PAGE>



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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For the Years Ended March 31, 2005, 2004 and 2003

Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.

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

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:
<TABLE>
<CAPTION>


                        COMBINED CONDENSED BALANCE SHEETS

                                                                                     2004               2003
                                                                                ---------------    ----------------
<S>                                                                          <C>                <C>
ASSETS

Buildings and improvements, net of accumulated
   depreciation for 2004 and 2003 of $15,377,000  and
   $14,123,000, respectively.                                                 $     24,517,000   $      25,621,000
Land                                                                                 2,465,000           2,465,000
Other assets                                                                         3,141,000           3,068,000
                                                                                ---------------    ----------------

                                                                              $     30,123,000   $      31,154,000
                                                                               ===============    ================
LIABILITIES

Mortgage loans payable                                                        $     28,489,000   $      27,958,000
Due to related parties                                                                 985,000             923,000
Other liabilities                                                                    3,791,000           4,134,000
                                                                                ---------------    ----------------

                                                                                    33,265,000          33,015,000
                                                                               ---------------    ----------------
PARTNERS' DEFICIT

WNC California Housing Tax Credits II, L.P.                                         (2,983,000)         (1,767,000)
Other partners                                                                        (159,000)            (94,000)
                                                                                ---------------    ----------------

                                                                                    (3,142,000)         (1,861,000)
                                                                                ---------------    ----------------

                                                                              $     30,123,000   $      31,154,000
                                                                              ===============    ==================
</TABLE>


                                       27
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For the Years Ended March 31, 2005, 2004 and 2003

Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.

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

                   COMBINED CONDENSED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>

                                                                 2004                2003               2002
                                                            ---------------     ---------------    ---------------
<S>                                                       <C>                <C>                <C>
Revenues                                                  $      3,969,000    $      3,954,000   $      3,448,000
                                                            ---------------     ---------------    ---------------

Expenses:
  Operating expenses                                             3,066,000           2,901,000          2,735,000
  Interest expense                                                 873,000             882,000            899,000
  Depreciation and amortization                                  1,285,000           1,294,000          1,302,000
                                                            ---------------     ---------------    ---------------

   Total expenses                                                5,224,000           5,077,000          4,936,000
                                                            ---------------     ---------------    ---------------

Net loss                                                  $    (1,255,000)    $    (1,123,000)   $    (1,488,000)
                                                            ===============     ===============    ===============

Net loss allocable to the Partnership                     $    (1,215,000)    $    (1,032,000)   $    (1,422,000)
                                                            ===============     ===============    ===============

Net loss recorded by the Partnership                      $      (386,000)    $      (331,000)   $      (752,000)
                                                            ===============     ===============    ===============
</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 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, 2005 and 2004. The Partnership's original investment in
the Local Limited  Partnership  approximated  $1,278,000.  Through  December 31,
2004, 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, 2004 and 2003,  the net
carrying  value of such  property on the books and records of the Local  Limited
Partnership totaled $1,801,000 and $1,930,000, respectively.

The  Partnership  had  advanced  approximately  $60,000 to three  Local  Limited
Partnerships as of March 31, 2002 to cover operating cash  deficiencies.  During
the year ended March 31, 2003, the Partnership had fully reserved  approximately
$53,000 and collected  approximately  $3,000 of such advances,  resulting in the
remaining balance of approximately  $4,000 as of March 31, 2003. During the year
ended March 31, 2003, the Partnership made additional  advances of approximately
$5,000 to one Local Limited Partnership which the Partnership fully reserved for
as of March  31,  2004 and 2005.  The  Partnership  did not make any  additional
advances to any Local Limited Partnerships for the year ended March 31, 2005.


                                       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, 2005, 2004 and 2003

Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.

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 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 $ 1,595,338 and $1,168,407 as
     of March 31, 2005 and 2004,  respectively.  Of the accumulated amortization
     recorded on the balance sheet at March 31, 2005,  $0,  $130,193 and $26,625
     of the  related  expense  was  reflected  as equity  in  losses of  limited
     partnerships  during  the  years  ended  March  31,  2005,  2004  and  2003
     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, 2005, 2004 and 2003,
     of which  $18,750,  $29,500  and  $25,000  were paid during the years ended
     March 31, 2005, 2004 and 2003, respectively.

     The  Partnership  reimbursed  the  General  Partner or its  affiliates  for
     operating expenses incurred on behalf of the Partnership. Operating expense
     reimbursements was approximately $24,400 and $25,600 during the years ended
     March 31, 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, 2005.

     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 $30,161,  $27,198, and $25,805 for
     the years ended March 31, 2005, 2004 and 2003, respectively.

The accrued fees and expenses due to General  Partner and affiliates  consist of
the following:
<TABLE>
<CAPTION>


                                                                                    March 31
                                                                         --------------------------------

                                                                             2005              2004
                                                                         --------------    --------------
<S>                                                                   <C>               <C>
Reimbursement for expenses paid by the General Partner
or an affiliate                                                        $         6,650   $         1,857
Accrued asset management fees                                                2,186,572         1,995,238
Other amounts due to General Partner or an affiliate                             4,440                 -
                                                                         --------------    --------------
                                                                       $     2,197,622   $     1,997,095
                                                                         ==============    ==============
</TABLE>


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.

                                       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, 2005, 2004 and 2003

Unaudited - These financial statements are being filed without an opinion from
               our independent registered public accounting firm.

<TABLE>
<CAPTION>

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

The following is a summary of the quarterly operations for the years ended March 31:


                                            June 30          September 30        December 31           March 31
                                         ---------------    ----------------    ---------------     ---------------

               2005
               ----

<S>                                  <C>                 <C>                 <C>                <C>
Income                                $           9,000   $          2,000    $            -    $          1,000

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

Equity in losses of limite
     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 limited partner unit                    (8)                (9)               (9)                (69)

               2004
               ----

Income                                $           1,000   $          2,000    $            -    $         34,000

Operating expenses                              (71,000)           (80,000)          (65,000)           (812,000)

Equity in (losses) income of
     limited partnerships                      (150,000)          (267,000)         (137,000)            223,000

Net Loss                                       (220,000)          (345,000)         (202,000)           (555,000)

Net Loss available to limited
     partners                                  (218,000)          (341,000)         (200,000)           (550,000)

Net Loss per limited partner unit                   (12)               (19)              (11)                (31)
</TABLE>


                                       30
<PAGE>



<TABLE>
<CAPTION>


Item 9.  Changes  in  and  Disagreements  With  Accountants  on  Accounting  and
         Financial Disclosure

NOT APPLICABLE

Item 9a. Controls and Procedures

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.

Changes  in  internal  controls.  There  were no  changes  in the  Partnership's
internal control over financial reporting that occurred during the quarter ended
March 31, 2005 that materially affected,  or are reasonably likely to materially
affect, the Partnership's internal control over financial reporting.

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

The  Partnership has no directors,  executive  officers or employees of its own.
The following biographical information is presented for the directors, executive
officers  and   significant   employees  of  Associates,   which  has  principal
responsibility for the Partnership's affairs.

Associates is a California corporation which was organized in 1971. Its officers
and significant employees are:
<S>                                   <C>

Wilfred N. Cooper, Sr.                Chairman of the Board
Wilfred N. Cooper, Jr.                President and Chief Executive Officer
David N. Shafer, Esq.                 Executive Vice President and Director of Asset Management
Sylvester P. Garban                   Senior Vice President - Institutional Investments
Thomas J. Riha, CPA                   Senior Vice President - Chief Financial Officer
Michael J. Gaber                      Senior Vice President - Acquisitions
Edward W. Peters                      President of WNC Management, Inc.
</TABLE>

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 73, 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.
House  of  Representatives.  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.

                                       31
<PAGE>



Wilfred  N.  Cooper,  Jr.,  age  41,  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 LIHC 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.  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 52, is 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.

Sylvester  P.  Garban,   age  58,  is  Senior  Vice  President  -  Institutional
Investments   of  Associates  and   registered   pricncipal   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 49, is Senior Vice President - Chief Financial Officer and a
member of the  Acquisition  Committee  and the  Commerical  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..   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.

Michael J. Gaber,  age 38, is Senior Vice President - Acquisitions  and 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.

Edward W. Peters, age 52, is President of WNC Management,  Inc. He has more than
12 years of  experience in all facets of property  management.  Prior to joining
WNC in 2003,  Mr.  Peters  served as Vice  President  and  Director  of Property
Management  at Design  Center  Housing  Services,  Inc.  and as Director at John
Stewart Company. He is a licensed real estate broker in the State of California,
a  certified  occupancy   specialist  (COS),  and  holds  two  national  housing
compliance  certificates:  the housing credit compliance professional (HCCP) and
the national credit compliance  professional-executive  (NCP-e). Mr. Peters is a
Director of the Affordable  Housing  Management  Association  and graduated from
Rutgers University in 1990 with a Master of Science degree in social work and in
1983 from Antioch University with a Master of Science degree in education.

                                       32
<PAGE>



Kay L. Cooper,  age 67, 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
     ----------------------------------------

     Inapplicable.

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

     Inapplicable.

(h)  Audit  Committee  Financial  Expert,  and (i)  Identification  of the Audit
     ---------------------------------------------------------------------------
     Committee

     Neither the Partnership nor Associates has an audit committee.

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

     Inapplicable

(k)  Code of Ethics
     --------------

     WNC & 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 118.

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, 2005, 2004 and 2003. The
     Partnership  paid the General Partner or its affiliates,  $18,750,  $29,500
     and $25,000 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 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,  $24,400,  $25,600 and
     $30,700,   during  the  years  ended  March  31,   2005,   2004  and  2003,
     respectively.

(d)  Interest  in  Partnership.   The  General   Partners   receive  1%  of  the
     Partnership's  allocated Low Income Tax Housing Credits, which approximated
     $6,000,  $11,000 and $14,000  for the  General  Partners  for the tax years
     ended December 31, 2004, 2003 and 2002, 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, 2005, 2004 and 2003.


                                       33
<PAGE>


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
     Units.

(c)  Security Ownership of Management
     --------------------------------

     Neither the General  Partner,  its  affiliates,  nor any of the officers or
     directors  of  the  General  Partner  or its  affiliates  own  directly  or
     beneficially any Units in the Partnership.

(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, 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's independent
auditors for the years ended March 31:
<TABLE>
<CAPTION>


                                             2005                2004
                                        ---------------     ---------------
<S>                                   <C>                  <C>
Audit Fees                            $         17,525    $         17,925
Audit-related Fees                                   -                   -
Tax Fees                                         3,000               1,625
All Other Fees                                       -                   -
                                        ---------------     ---------------
TOTAL                                 $         20,525    $         19,550
                                        ===============     ===============
</TABLE>


The  Partnership  has no Audit  Committee.  All audit services and any permitted
non-audit  services  performed  by the  Partnership's  independent  auditors are
preapproved by the General Partner.


                                       34
<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:
          --------------------------------------------------------

          Unaudited Balance Sheets, as of March 31, 2005 and 2004
          Unaudited Statements of Operations for the years ended March 31, 2005
            2004 and 2003
          Unaudited Statements of Partners' Equity (Deficit) for the years
            ended 2005, 2004 and 2003
          Unaudited Statements of Cash Flows for the years ended March 31,
            2005, 2004 and 2003
          Unaudited Notes to Financial Statements

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

          Unaudited 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 2003. (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 2003. (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.

                                       35
<PAGE>



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.

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.


                                       36
<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         Amount of         Balances
                                     Investment in    Investment        of  Local                Building                     Net
                                     Local Limited      Paid             Limited                   and         Accumulated    Book
Partnership Name       Location      Partnerships      to Date          Partnership   Land       Equipment     Depreciation   Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                     <C>          <C>             <C>             <C>           <C>         <C>           <C>         <C>
601 Main Street         Stockton,
Investors               California    $ 1,656,000     $ 1,656,000     $ 3,914,000   $80,000     $5,484,000    $2,479,000  $3,085,000

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

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

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

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

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

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

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

Pine Gate               Ahoskie,
Limited Partnership     California        272,000         272,000       1,421,000    75,000      1,886,000       519,000   1,442,000

</TABLE>




                                       37
<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         Amount of         Balances
                                     Investment in    Investment        of  Local                Building                     Net
                                     Local Limited      Paid             Limited                   and         Accumulated    Book
Partnership Name       Location      Partnerships      to Date          Partnership   Land       Equipment     Depreciation   Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                                    <C>              <C>            <C>          <C>         <C>           <C>         <C>
Silver Birch            Huron,
Associates              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                   Ukiah,
Terrace                 California        349,000         349,000       1,747,000    278,000     2,076,000     1,050,000   1,304,000

Woodlake
Garden                  Woodlake,
Apartments              California        548,000         548,000       1,786,000    113,000     2,470,000       841,000   1,742,000

Yucca-Warren            Joshua Tree,
Vista Associates        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>




                                       38
<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
------------------------------------------------------------------------------------------------------------------------------------
Partnership Name               Rental Income     Net Income (Loss)  Year Investment Acquired   Status  Estimated Useful 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>


                                       39
<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
                         -----------------------------------------     -------------------------------------------------------------
                                                                       Mortgage
                                     Total           Amount of         Balances
                                     Investment in   Investment        of  Local          Property                          Net
                                     Local Limited     Paid            Limited              and         Accumulated         Book
Partnership Name       Location      Partnerships     to Date          Partnership        Equipment     Depreciation        Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                     <C>           <C>           <C>              <C>               <C>             <C>             <C>
601 Main Street        Stockton,
Investors              California      $ 1,656,000   $ 1,656,000      $ 3,933,000       $ 5,564,000     $ 2,283,000     $ 3,281,000

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

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

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

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

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

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

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

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

Pine Gate              Ahoskie,
Limited Partnership    California          272,000       272,000        1,428,000         1,962,000         467,000       1,495,000

</TABLE>


                                       40

<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
                        -----------------------------------------     -------------------------------------------------------------
                                                                       Mortgage
                                     Total           Amount of         Balances
                                     Investment in   Investment        of  Local          Property                          Net
                                     Local Limited     Paid            Limited              and         Accumulated         Book
Partnership Name       Location      Partnerships     to Date          Partnership        Equipment     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                  Ukiah,
Terrace                California          349,000       349,000        1,754,000         2,342,000         972,000       1,370,000

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

Yucca-Warren           Joshua Tree,
Vista Associates       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>



                                       41
<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, 2004
------------------------------------------------------------------------------------------------------------------------------------
Partnership Name               Rental Income     Net Income (Loss)  Year Investment Acquired   Status  Estimated Useful 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>

                                       42
<PAGE>



WNC California Housing Tax Credits II, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2003
<TABLE>
<CAPTION>
                        -----------------------------------------      -------------------------------------------------------------
                                     As of March 31, 2003                           As of December 31, 2002
                        -----------------------------------------      -------------------------------------------------------------
                                                                       Mortgage
                                     Total           Amount of         Balances
                                     Investment in   Investment        of  Local          Property                          Net
                                     Local Limited     Paid            Limited              and         Accumulated         Book
Partnership Name       Location      Partnerships     to Date          Partnership        Equipment     Depreciation        Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                     <C>           <C>              <C>           <C>                     <C>            <C>        <C>
601 Main Street        Stockton,
Investors              California      $ 1,656,000   $ 1,656,000      $ 3,951,000       $ 5,564,000     $ 2,085,000     $ 3,479,000

ADI Development        Delhi,
Partners               California          699,000       699,000        1,199,000         1,915,000         527,000       1,388,000

Bayless Garden         Red Bluff,
Apartments Investors   California        1,110,000     1,110,000        1,258,000         2,591,000       1,038,000       1,553,000

Blackberry             Lodi,
Oaks, Ltd              California          463,000       463,000        1,904,000         2,448,000         587,000       1,861,000

Jacob's Exeter,        Exeter,
Square                 California        1,324,000     1,324,000        1,567,000         2,887,000         887,000       2,000,000

Mecca                  Mecca,
Apartments II          California        2,200,000     2,200,000        2,497,000         4,362,000         902,000       3,460,000

Nevada                 Grass Valley,
Meadows                California          459,000       459,000        1,908,000         2,599,000         540,000       2,059,000

Northwest              Ivanhoe,
Tulare Associates      California        1,226,000     1,226,000        1,747,000         2,989,000       1,154,000       1,835,000

Orland                 Orland,
Associates             California          432,000       432,000        1,698,000         2,264,000         592,000       1,672,000

Pine Gate              Ahoskie,
Limited Partnership    California          272,000       272,000        1,435,000         1,962,000         406,000       1,556,000
</TABLE>
                                       43
<PAGE>


WNC California Housing Tax Credits II, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2003
<TABLE>
<CAPTION>

                        -----------------------------------------      -------------------------------------------------------------
                                     As of March 31, 2004                           As of December 31, 2003
                        -----------------------------------------      -------------------------------------------------------------
                                                                       Mortgage
                                     Total           Amount of         Balances
                                     Investment in   Investment        of  Local          Property                          Net
                                     Local Limited     Paid            Limited              and         Accumulated         Book
Partnership Name       Location      Partnerships     to Date          Partnership        Equipment     Depreciation        Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                     <C>             <C>              <C>            <C>                <C>            <C>            <C>
Silver Birch           Huron,
Associates             California          378,000       378,000        1,329,000         1,718,000         607,000       1,111,000

Twin Pines Apartments
Associates             Groveland,
                       California        1,278,000     1,278,000        1,788,000         3,364,000       1,320,000       2,044,000

Ukiah                  Ukiah,
Terrace                California          349,000       349,000        1,760,000         2,312,000         898,000       1,414,000

Woodlake Garden        Woodlake,
Apartments             California          548,000       548,000        1,902,000         2,491,000         700,000       1,791,000

Yucca-Warren           Joshua Tree,
Vista Associates       California          520,000       520,000        2,143,000         2,542,000         619,000       1,923,000
                                       ------------   -----------     -----------        -----------    ------------    -----------

                                       $12,914,000   $12,914,000      $28,086,000       $42,008,000     $12,862,000     $29,146,000
                                       ============   ===========     ===========       ===========     ===========     ===========
</TABLE>



                                       44
<PAGE>




WNC California Housing Tax Credits II, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2003


<TABLE>
<CAPTION>

                             -------------------------------------------------------------------------------------------------------
                                                         For the year ended December 31, 2002
                             -------------------------------------------------------------------------------------------------------
Partnership Name               Rental Income     Net Income (Loss)  Year Investment Acquired   Status  Estimated Useful Life (Years)
------------------------------------------------------------------------------------------------------------------------------------
<S>                                  <C>                <C>                            <C>        <C>                            <C>
601 Main Street
Investors                            $ 512,000          $ (330,000)                    1991       Completed                       39

ADI Development
Partners                               139,000             (57,000)                    1991       Completed                       40

Bayless Garden
Apartments Investors                   186,000            (111,000)                    1992       Completed                     27.5

Blackberry Oaks, Ltd.                  240,000             (18,000)                    1992       Completed                       40

Jacob's Square                         206,000             (95,000)                    1993       Completed                     27.5

Mecca Apartments II                    272,000            (206,000)                    1993       Completed                       40

Nevada Meadows                         207,000             (54,000)                    1993       Completed                       40

Northwest Tulare Associates            180,000            (139,000)                    1991       Completed                     27.5

Orland Associates                      211,000             (39,000)                     1991       Completed                      40

Pine Gate Limited Partnership          227,000             (27,000)                    1994       Completed                       50

Silver Birch Associates                144,000             (34,000)                    1992       Completed                     27.5

Twin Pines Apartments Associates       169,000            (190,000)                    1991       Completed                     27.5

Ukiah Terrace                          187,000             (71,000)                    1991       Completed                     27.5

Woodlake Garden Apartments             215,000             (74,000)                     1991       Completed                      40

Yucca-Warren Vista
Associates, Ltd.                       231,000             (43,000)                     1991       Completed                     50
                                   -----------        -------------

                                   $ 3,326,000        $ (1,488,000)
                                   ===========        =============
</TABLE>


                                       45
<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:  November 8, 2005

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:  November 8, 2005



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:  November 8, 2005



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

Date:  November 8, 2005



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

Date:  November 8, 2005




                                       46