FORM 10-K

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   (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, 2000

                                       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.

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


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

                                 (714) 662-5565

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

                                      NONE

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

                      UNITS OF LIMITED PARTNERSHIP INTEREST

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

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

                                       1
<PAGE>


State the aggregate market value of the voting and non-voting common equity held
by non-affiliates of the registrant.

                                  INAPPLICABLE


                       DOCUMENTS INCORPORATED BY REFERENCE

List hereunder the following documents if incorporated by reference and the Part
of the Form 10-K  (e.g.,  Part I, Part II,  etc.)  into  which the  document  is
incorporated:  (1) Any  annual  report  to  security  holders;  (2) Any proxy or
information  statement;  and (3) Any prospectus filed pursuant to Rule 424(b) or
(c) under the  Securities Act of 1933.  The listed  documents  should be clearly
described for identification  purposes (e.g.,  annual report to security holders
for fiscal year ended December 24, 1980).

                                      NONE


                                       2
<PAGE>
PART I.

Item 1.  Business

Organization

WNC 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 in other limited  partnerships or limited liability  companies ("Local
Limited Partnerships") which own multifamily housing complexes that are eligible
for  low-income  housing  federal and, in certain cases,  California  income 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. Wilfred N. Cooper,
Sr., through the Cooper Revocable Trust,  owns 66.8% of the outstanding stock of
Associates.  John  B.  Lester,  Jr.  was the  original  limited  partner  of the
Partnership and owns,  through the Lester Family Trust, 28.6% of the outstanding
stock of Associates.  Wilfred N. Cooper, Jr., President of Associates, owns 2.1%
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."

Description of Business

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

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

                                       3
<PAGE>
As of March 31, 2000,  the  Partnership  had invested in fifteen  Local  Limited
Partnerships.  Each of these Local Limited  Partnerships  owns a Housing Complex
that is 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.

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

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

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

Item 2.  Properties

Through its investments in Local Limited  Partnerships,  the  Partnership  holds
limited  partnership  interests in the Housing  Complexes.  The following  table
reflects the status of the fifteen Housing Complexes as of the dates indicated:

                                       4
<PAGE>
<TABLE>
<CAPTION>
                                                  --------------------------------  ------------------------------------------------
                                                       As of March 31, 2000                       As of December 31, 1999
                                                  --------------------------------  ------------------------------------------------

                                                       Partnership's                                       Estimated    Encumbrances
                                                     Total Investment  Amount of                           Low Income    of Local
                                  General Partner    in Local Limited  Investment   Number of    Occu-     Housing       Limited
Partnership Name  Location        Name                 Partnerships    Paid to Date   Units      pancy     Credits      Partnerships
------------------------------------------------------------------------------------------------------------------------------------
<S>               <C>             <C>               <C>             <C>                <C>       <C>     <C>            <C>
601 Main Street   Stockton,       Daniels C. Louge  $  1,656,000    $  1,656,000       165        93%    $  4,080,000   $  3,997,000
Investors         California

ADI Development   Delhi,          Anthony Donovan        699,000         699,000        31        94%       1,757,000      1,220,000
Partners          California

Bayless Garden    Red Bluff,      Douglas W. Young     1,110,000       1,110,000        46        96%       2,741,000      1,284,000
Apartments        California
Investors

Blackberry        Lodi,           Bonita Homes
Oaks, Ltd         California      Incorporated           463,000         463,000        42       100%       1,063,000      1,930,000

Jacob's Square    Exeter,         Philip R. Hammond,
                  California      Jr. and Diane M.
                                  Hammond              1,324,000       1,324,000        45        91%       2,933,000      1,586,000

Mecca             Mecca,          Sam Jack, Jr. and
Apartments II     California      Sam Jack and
                                  Associates           2,200,000       2,200,000        60        98%       5,183,000      2,512,000

Nevada Meadows    Grass Valley,   Thomas G. Larson,
                  California      William H. Larson
                                  and Raymond L.
                                  Tetzlaff               459,000         459,000        34       100%       1,030,000      1,933,000

Northwest Tulare  Ivanhoe,        Philip R. Hammond,
Associates        California      Jr. and Diane M.
                                  Hammond              1,226,000       1,226,000        54        76%       2,950,000      1,778,000

Orland            Orland,         Richard E. Huffman
Associates        California      and Robert A. Ginno    432,000         432,000        40       100%         972,000      1,714,000

</TABLE>

                                       5
<PAGE>
<TABLE>
<CAPTION>


                                                  --------------------------------  ------------------------------------------------
                                                       As of March 31, 2000                       As of December 31, 1999
                                                  --------------------------------  ------------------------------------------------

                                                       Partnership's                                       Estimated    Encumbrances
                                                     Total Investment  Amount of                           Low Income    of Local
                                  General Partner    in Local Limited  Investment   Number of    Occu-     Housing       Limited
Partnership Name  Location        Name                 Partnerships    Paid to Date   Units      pancy     Credits      Partnerships
------------------------------------------------------------------------------------------------------------------------------------
<S>               <C>             <C>                  <C>            <C>             <C>       <C>      <C>           <C>

Pine Gate         Ahoskie,        Regency Investment
Limited           California      Associates, Inc.,
Partnership                       Boyd Management,
                                  Inc. and Gordon L.
                                  Blackwell              272,000         272,000        56       100%         611,000      1,452,000

Silver Birch      Huron,          Philip R. Hammond,
Associates        California      Jr. and Diane M.
                                  Hammond                378,000         378,000        35        94%       1,131,000      1,343,000

Twin Pines        Groveland,      Donald S. Kavanagh
Apartments        California      and John N. Brezzo   1,278,000       1,278,000        39        79%       3,055,000      1,788,000
Associates

Ukiah Terrace     Ukiah,          Thomas G. Larson,
                  California      William H. Larson
                                  and Raymond L.
                                  Tetzlaff               349,000         349,000        41        98%         825,000      1,775,000

Woodlake Garden   Woodlake,       David J. Michael
Apartments        California      and Pamela J.
                                  Michael                548,000         548,000        48        94%       1,374,000      1,936,000

Yucca-Warren      Joshua Tree,    WNC & Associates,
Vista             California      Inc.                   520,000         520,000        50        98%       1,251,000      2,162,000
Associates, Ltd.                                   ---------      ----------      ----       ----      ----------     ----------
                                                    $ 12,914,000    $ 12,914,000       786        94%    $ 30,956,000   $ 28,410,000
                                                      ==========      ==========      ====       ====      ==========     ==========

</TABLE>

                                       6

<PAGE>
<TABLE>
<CAPTION>

                                      ------------------------------------------
                                          For the year ended December 31, 1999
                                      ------------------------------------------

                                                                   Low Income
                                                                 Housing Credits
                                           Rental         Net     Allocated to
Partnership Name                           Income         Loss    Partnership
--------------------------------------------------------------------------------
<S>                                    <C>          <C>                <C>
601 Main Street Investors              $   360,000  $   (351,000)      99%

ADI Development Partners                   121,000       (56,000)      99%

Bayless Garden Apartments Investors        163,000      (124,000)      99%

Blackberry Oaks, Ltd                       214,000       (19,000)      99%

Jacob's Square                             186,000      (109,000)      99%

Mecca Apartments II                        261,000      (158,000)      99%

Nevada Meadows                             195,000       (37,000)      99%

Northwest Tulare Associates                171,000      (123,000)      99%

Orland Associates                          202,000       (11,000)      99%

Pine Gate Limited Partnership              226,000         8,000       99%

Silver Birch Associates                    134,000       (29,000)      99%

Twin Pines Apartments Associates            99,000      (236,000)      99%

Ukiah Terrace                              184,000       (56,000)      99%

Woodlake Garden Apartments                 182,000       (59,000)      95%

Yucca-Warren Vista Associates, Ltd         223,000       (25,000)      99%
                                         ---------    ----------
                                       $ 2,921,000  $ (1,385,000)
                                         =========    ==========
</TABLE>



                                      7

<PAGE>
Item 3.  Legal Proceedings

NONE

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

NONE

PART II.

Item 5.  Market for Registrant's Common Equity and Related Stockholder Matters

Item 5a.

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

(b)  At March 31, 2000, there were 1,280 Limited Partners.


(c)  The Partnership was not designed to provide cash  distributions  to Limited
     Partners in  circumstances  other than  refinancing  or  disposition of its
     investments in Local Limited Partnerships.


(d)  No unregistered  securities  were sold by the  Partnership  during the year
     ended March 31, 2000.

Item 5b.

NOT APPLICABLE

Item 6.  Selected Financial Data

Selected balance sheet information for the Partnership is as follows:
<TABLE>
<CAPTION>

                                 March 31                              December 31
                         --------------------------  -------------------------------------------------
                              2000           1999          1998         1997         1996         1995
                         ----------   ------------   -----------  -----------  -----------  -----------
<S>                    <C>          <C>            <C>          <C>          <C>          <C>
ASSETS
Cash and cash
equivalents            $   314,630  $     364,853  $    379,754 $    377,378 $    517,151 $  1,113,575
Investments in
 limited
 partnerships, net       5,442,623      6,240,560     6,439,942    7,291,595    8,447,282    9,640,622
Due from affiliates         38,540              -             -            -            -            -
Other assets                     -              -             -            -       12,492       34,288

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

                       $ 5,795,793  $   6,605,413  $  6,819,696 $  7,668,973 $  8,976,925 $ 10,788,485
                         ==========   ============   ===========  ===========  ===========  ===========

LIABILITIES
Due to limited
 partnerships          $         -  $           -  $          - $          - $          - $    555,000
Accrued fees and
 expenses due to
 general partner
 and affiliates          1,278,242      1,077,385     1,044,307      836,316      703,693      566,653

PARTNERS' EQUITY         4,517,551      5,528,028     5,775,389    6,832,657    8,273,232    9,666,832
                         ----------   ------------   -----------  -----------  -----------  -----------

                       $ 5,795,793  $   6,605,413  $  6,819,696 $  7,668,973 $  8,976,925 $ 10,788,485
                         ==========   ============   ===========  ===========  ===========  ===========

</TABLE>
                                       8

<PAGE>
Selected  results  of  operations,  cash  flows  and other  information  for the
Partnership is as follows:
<TABLE>
<CAPTION>
                            For the
                           Year Ended   For the Three Months                    For the Years Ended
                            March 31       Ended March 31                           December 31
                          -----------  ------------------------   --------------------------------------------------
                             2000         1999         1998         1998         1997          1996         1995
                          -----------  -----------  -----------   ----------   ----------    ----------   ----------
                                                    (Unaudited)
<S>                     <C>           <C>         <C>         <C>          <C>            <C>           <C>
Loss from operations    $   (273,480) $  (68,998) $  (65,161) $  (274,539) $    (284,989) $   (264,807) $   (253,862)

Equity in losses of
 limited partnerships       (736,997)   (178,363)   (241,600)    (782,729)    (1,155,586)   (1,128,793)   (1,579,652)
                          -----------  ----------  ----------  -----------     ----------    ----------    ----------

Net loss                $ (1,010,477) $ (247,361) $ (306,761) $(1,057,268) $  (1,440,575) $ (1,393,600) $ (1,833,514)
                          ===========  ==========  ==========   ==========     ==========    ==========    ==========
Net loss allocated to:
 General partner        $    (10,105) $   (2,474) $   (3,068) $   (10,573) $     (14,406) $    (13,936) $    (18,335)
                          ===========  ========== ===========   ==========     ==========    ==========    ==========

 Limited partners       $ (1,000,372) $ (244,887) $ (303,693) $(1,046,695) $  (1,426,169) $ (1,379,664) $ (1,815,179)
                          ===========  ========== ===========   ==========     ==========    ==========    ==========

Net loss per limited
 partnership unit       $     (56.44) $   (13.82) $   (17.13) $    (59.05) $      (80.46) $     (77.83) $    (102.40)
                          ===========  ========== ===========   ==========     ==========    ==========    ==========
Outstanding weighted
 limited partner
 units                        17,726      17,726      17,726       17,726         17,726        17,726        17,726
                          ===========  ========== ===========   ==========     ==========    ==========    ==========

                            For the
                           Year Ended   For the Three Months                    For the Years Ended
                            March 31       Ended March 31                           December 31
                       -------------- -------------------------  ---------------------------------------------------
                              2000          1999         1998         1998         1997         1996         1995
                          ----------   -----------  -----------  -----------   ----------   ----------   ----------
                                                    (Unaudited)
Net cash provided by
 (used in):
  Operating
   activities           $    (57,948) $  (22,613) $   (1,469) $   (13,320) $     (95,215) $    (46,174) $    (68,921)
  Investing
   activities                  7,725       7,712       3,606       15,696        (44,558)     (550,250)     (510,064)
                           ---------- ----------- -----------  -----------     ----------    ----------    ----------

Net change in cash           (50,223)    (14,901)      2,137        2,376       (139,773)     (596,424)     (578,985)
 and cash equivalents

Cash and cash
 equivalents,
 beginning of period         364,853     379,754     377,378      377,378        517,151     1,113,575     1,692,560
                           ---------- ----------- -----------  -----------     ----------    ----------    ----------

Cash and cash
 equivalents, end of
 period                 $    314,630  $  364,853  $  379,515  $   379,754  $     377,378  $    517,151  $  1,113,575
                           ========== =========== ===========  ===========     ==========    ==========    ==========

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

                                       1999               1998               1997              1996             1995
                             ---------------    ---------------   ----------------   ---------------  ---------------
 Federal                   $            117   $            117  $             117  $            116  $           108
 State                                    -                  9                 27                37               98
                             ===============    ===============   ================   ===============  ===============
 Total                     $            117   $            126  $             144  $            153  $           206
                             ===============    ===============   ================   ===============  ===============
</TABLE>
Item 7. Management's  Discussion and Analysis of Financial Condition and Results
of Operation

Financial Condition

The  Partnership's  assets at March 31, 2000 consisted  primarily of $314,630 in
cash and aggregate  investments  in the fifteen Local  Limited  Partnerships  of
$5,442,623.  Liabilities at March 31, 2000 primarily  consisted of $1,278,152 of
accrued annual management fees due to the General Partners.

                                       9

<PAGE>
Results of Operations

Year  Ended  March 31,  2000  Compared  to Year Ended  December  31,  1998.  The
Partnership's  net loss for the year  ended  March  31,  2000 was  $(1,010,000),
reflecting  a decrease  of $47,000  from the net loss  experienced  for the year
ended  December 31, 1998.  The decline in net loss is primarily due to equity in
losses from limited partnerships which declined by $46,000 to $(737,000) for the
year ended March 31, 2000 from  $(783,000) for the year ended December 31, 1998.
This decrease was a result of the Partnership not recognizing  certain losses of
the  Local  Limited   Partnerships.   The  investments  in  such  Local  Limited
Partnerships had reached $0 at March 31, 2000. Since the Partnership's liability
with respect to its  investments is limited,  losses in excess of investment are
not recognized.

Three Months Ended March 31, 1999 Compared to Three Months Ended March 31, 1998.
The  Partnership's  net loss for the  three  months  ended  March  31,  1999 was
$(247,000),  reflecting a decrease of $60,000 from the net loss  experienced for
the three months ended March 31, 1998.  The decline in net loss is primarily due
to equity in losses  of  limited  partnerships  which  declined  by  $64,000  to
$(178,000)  for the three  months ended March 31, 1999 from  $(242,000)  for the
three months ended March 31, 1998. This decrease was a result of the Partnership
not  recognizing  certain  losses  of  the  Local  Limited   Partnerships.   The
investments in such Local Limited Partnerships reached $0 during 1998. Since the
Partnership's  liability with respect to its  investments is limited,  losses in
excess  of  investment  are not  recognized.  The  reduction  in  equity  losses
recognized was partially offset by an increase in loss from operations of $4,000
to $(69,000)  for the three months ended March 31, 1999 from  $(65,000)  for the
three  months ended March 31,  1998,  due to a comparable  increase in operating
expense allocations.

Year Ended  December 31, 1998  Compared to Year Ended  December  31,  1997.  The
Partnership's  net loss for 1998 was  $(1,057,000),  reflecting  a  decrease  of
$384,000  from the net loss  experienced  in 1997.  The  decline  in net loss is
primarily due to equity in losses from limited  partnerships  which  declined to
$(783,000) in 1998 from  $(1,156,000) in 1997. This decrease was a result of the
Partnership  not recognizing  certain losses of the Local Limited  Partnerships.
The investments in such Local Limited Partnerships reached $0 during 1998. Since
the Partnership's  liability with respect to its investments is limited,  losses
in excess of  investment  are not  recognized.  Other  operating  expenses  also
fluctuate  $(8,000)  to  $(10,000)  per  year,  depending  on the  needs  of the
Partnership.

Cash Flows

Year Ended March 31, 2000  Compared to Year Ended  December 31,  1998.  Net cash
used during the year ended March 31,  2000 was  $(50,000),  compared to net cash
increase  for the year ended  December  31,  1998 of $2,000.  The change was due
primarily  to the  Partnership  advancing  approximately  $39,000  to two  Local
Limited  Partnerships to cover  operating cash deficits,  which did not occur in
the year ended December 31, 1998. In addition,  the  Partnership  experienced an
increase  in cash paid to the  General  Partner  for annual  management  fees of
$10,000 and a decrease in distributions received from Local Limited Partnerships
of $8,000.

Three Months Ended March 31, 1999 Compared to Three Months Ended March 31, 1998.
Net cash used  during  the three  months  ended  March 31,  1999 was  $(15,000),
compared to a net  increase in cash for the three months ended March 31, 1998 of
$2,000.  The change was due primarily to an increase in cash paid to the general
partner or  affiliates  of $19,000,  and an increase in operating  costs paid to
third  parties of  $5,000,  partially  offset by an  increase  in  distributions
received from Local Limited Partnerships of $4,000.

Year Ended  December 31, 1998 Compared to Year Ended  December 31, 1997. The net
decrease in cash used in operating activities of $82,000 was primarily due to an
increase in the  deferral of fees and  expenses  due to the General  Partner and
affiliates.  Net cash provided by investing  activities  increased to $16,000 in
1998  compared  to a use of  $(45,000)  in 1997  primarily  as a  result  of the
Partnership making its final,  scheduled capital  contributions to Local Limited
Partnerships in 1997.

                                       10
<PAGE>
During the year ended March 31, 2000,  the three months ended March 31, 1999 and
the year ended  December 31, 1998,  accrued  payables,  which consist of related
party management fees due to the General Partner, increased by $201,000, $33,000
and $208,000,  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, 2000, to be  sufficient  to meet all  currently  foreseeable
future cash requirements.

Impact of Year 2000

WNC & Associates, Inc.

Status of Readiness

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

Non-IT Systems. The Partnership also relies on the non-IT systems of WNC. Non-IT
systems  include  machinery and  equipment  such as  telephones,  voice mail and
electronic postage equipment. The non-IT systems of WNC are year 2000 compliant.

Service  Providers.  WNC also  relies on the IT and  non-IT  systems  of service
providers. Service providers include utility companies,  financial institutions,
telecommunications carriers,  municipalities, and other outside vendors. WNC has
obtained verbal assurances from its material service providers (electrical power
provider,  financial institutions and telecommunications carriers) that their IT
and non-IT systems are year 2000  compliant.  To date,  WNC has not  encountered
significant year 2000 issues or business disruptions from its service providers.

Costs to Address Year 2000 Issues

The cost to address year 2000 issues for WNC has been less than $25,000.

Risk of Year 2000 Issues

Although WNC has  encountered no significant  year 2000 issues to date, the most
reasonable  and likely result from  non-year  2000  compliance of systems of the
service  providers  noted  above  would be the  disruption  of  normal  business
operations for WNC. This disruption could, in turn, lead to delays in performing
reporting and fiduciary responsibilities on behalf of the Partnership. The worst
case scenario would be the replacement of a service provider. These delays would
likely  be  temporary  and  would  likely  not  have a  material  effect  on the
Partnership or WNC.

Local Limited Partnerships

Status of Readiness

To date, WNC and the  Partnership  have  encountered  no  significant  year 2000
issues with respect to the Local Limited Partnerships.

                                       11
<PAGE>

Costs to Address Year 2000 Issues

There has been and will be no cost to the  Partnership  as a result of assessing
year 2000 issues for the Local  Limited  Partnerships.  Although no  significant
year 2000 issues have been  encountered to date, the cost to deal with potential
year 2000 issues of the Local Limited  Partnerships  cannot be estimated at this
time.

Risk of Year 2000 Issues

Although no significant  year 2000 issues have been  encountered to date,  there
can be no assurance that the Partnership will be unaffected by year 2000 issues.
The most  reasonable and likely result from non-year 2000 compliance will be the
disruption of normal  business  operations  for the Local Limited  Partnerships,
including but not limited to the possible  failure to properly collect rents and
meet their obligations in a timely manner.  This disruption would, in turn, lead
to  delays  by the  Local  Limited  Partnerships  in  performing  reporting  and
fiduciary responsibilities on behalf of the Partnership. The worst-case scenario
would  include the  initiation  of  foreclosure  proceedings  on the property by
mortgage debt holders.  Under these  circumstances,  WNC or its affiliates  will
take  actions  necessary  to minimize  the risk of  foreclosure,  including  the
removal and  replacement of a Local General  Partner by the  Partnership.  These
delays would likely be temporary and would likely not have a material  effect on
the Partnership or WNC.

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk

NOT APPLICABLE

Item 8.  Financial Statements and Supplementary Data

                                       12
<PAGE>



               Report of Independent Certified Public Accountants


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


We have audited the  accompanying  balance sheets of WNC California  Housing Tax
Credits II, L.P. (a California  Limited  Partnership) (the  "Partnership") as of
March 31, 2000 and 1999,  and December 31, 1998,  and the related  statements of
operations,  partners'  equity (deficit) and cash flows for the year ended March
31, 2000,  the three months ended March 31, 1999 and the year ended December 31,
1998. These financial  statements are the  responsibility  of the  Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements  based  on  our  audits.  A  significant  portion  of  the  financial
statements of the limited  partnerships  in which the  Partnership  is a limited
partner were audited by other  auditors whose reports have been furnished to us.
As discussed in Note 2 to the financial statements, the Partnership accounts for
its investments in limited  partnerships using the equity method. The portion of
the Partnership's  investment in limited  partnerships audited by other auditors
represented 74%, 76% and 76% of the total assets of the Partnership at March 31,
2000 and 1999, and December 31, 1998. Our opinion,  insofar as it relates to the
amounts included in the financial  statements for the limited partnerships which
were audited by others, is based solely on the reports of the other auditors.

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

In our opinion,  based on our audits and the reports of the other auditors,  the
financial statements referred to above present fairly, in all material respects,
the  financial  position  of WNC  California  Housing  Tax  Credits  II, L.P. (a
California Limited  Partnership) as of March 31, 2000 and 1999, and December 31,
1998,  and the results of its  operations  and its cash flows for the year ended
March 31,  2000,  the three  months  ended  March  31,  1999 and the year  ended
December 31, 1998, in conformity with generally accepted accounting principles.



                              /s/ BDO SEIDMAN, LLP
                                  BDO SEIDMAN, LLP

Orange County, California
June 6, 2000


                                       13

<PAGE>





                          INDEPENDENT AUDITORS' REPORT



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


We have audited the  accompanying  statements of  operations,  partners'  equity
(deficit)  and cash flows of WNC  California  Housing  Tax  Credits  II, L.P. (a
California Limited  Partnership) (the "Partnership") for the year ended December
31, 1997. These financial statements are the responsibility of the Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audit. We did not audit the financial  statements of the
limited  partnerships in which WNC California  Housing Tax Credits II, L.P. is a
limited  partner.  These  investments,  as discussed in Note 2 to the  financial
statements,  are accounted for by the equity  method.  The  investments in these
limited  partnerships  represented  95% of the total  assets  of WNC  California
Housing Tax Credits II, L.P. at December 31, 1997.  The financial  statements of
the limited  partnerships were audited by other auditors whose reports have been
furnished to us, and our opinion,  insofar as it relates to the amounts included
for these  limited  partnerships,  is based  solely on the  reports of the other
auditors.

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

In our opinion,  based on our audits and the reports of the other auditors,  the
financial statements referred to above present fairly, in all material respects,
the results of operations and cash flows of WNC  California  Housing Tax Credits
II, L.P. (a  California  Limited  Partnership)  for the year ended  December 31,
1997, in conformity with generally accepted accounting principles.


                               /s/ CORBIN & WERTZ
                                   CORBIN & WERTZ

Irvine, California
April 1, 1998

                                       14

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

                                 BALANCE SHEETS

<TABLE>
<CAPTION>

                                                              March 31                 December 31
                                                    ------------------------------   ----------------

                                                        2000             1999             1998
                                                    -------------    -------------   ----------------
ASSETS

<S>                                               <C>              <C>              <C>
Cash and cash equivalents                         $      314,630   $      364,853   $        379,754
Investments in limited  partnerships,
 net (Note 2)                                          5,442,623        6,240,560          6,439,942
Due from affiliates (Note 2)                              38,540                -                  -
                                                    -------------    -------------   ----------------

                                                  $    5,795,793   $    6,605,413   $      6,819,696
                                                    =============    =============   ================

LIABILITIES AND PARTNERS' EQUITY
 (DEFICIT)

Liabilities:
 Accrued  fees  and  expenses  due to  General
  Partner and affiliates (Note 3)                 $    1,278,242   $    1,077,385  $       1,044,307
                                                    -------------    -------------   ----------------

Commitments and contingencies

Partners' equity (deficit):
 General partner                                        (120,087)        (109,982)          (107,508)
 Limited partners  (20,000 units  authorized;
  17,726 units issued and outstanding)                 4,637,638        5,638,010          5,882,897
                                                    -------------    -------------   ----------------

   Total partners' equity                              4,517,551        5,528,028          5,775,389
                                                    -------------    -------------   ----------------

                                                  $    5,795,793   $    6,605,413  $       6,819,696
                                                    =============    =============   ================

</TABLE>

                 See accompanying notes to financial statements
                                       15

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

                            STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
                                           For the
                                            Year          For the Three
                                            Ended          Months Ended       For the Years Ended
                                          March 31           March 31              December 31
                                         ------------   ---------------   ----------------------------
                                            2000             1999            1998            1997
                                         ------------   ---------------   ------------    ------------
<S>                                    <C>            <C>               <C>             <C>
Interest income                        $      16,614  $          4,060  $      16,353   $      13,218
Distribution income                            1,500                 -              -               -
                                         ------------   ---------------   ------------    ------------

   Total income                               18,114             4,060         16,353          13,218
                                         ------------   ---------------   ------------    ------------
Operating expenses:
 Amortization (Note 2)                        53,215            13,307         53,228          54,445
 Asset management fees (Note 3)              210,084            52,521        210,084         210,084
 Other                                        28,295             7,230         27,580          33,678
                                         ------------   ---------------   ------------    ------------

    Total operating expenses                 291,594            73,058        290,892         298,207
                                         ------------   ---------------   ------------    ------------

Loss from operations                        (273,480)          (68,998)      (274,539)       (284,989)

Equity in losses of limited
 partnerships (Note 2)                      (736,997)         (178,363)      (782,729)     (1,155,586)
                                         ------------   ---------------   ------------    ------------

Net loss                               $  (1,010,477) $       (247,361) $  (1,057,268)  $  (1,440,575)
                                         ============   ===============   ============    ============

Net loss allocated to:
 General partner                       $     (10,105) $         (2,474) $     (10,573)  $     (14,406)
                                         ============   ===============   ============    ============

 Limited partners                      $  (1,000,372) $       (244,887) $  (1,046,695)  $  (1,426,169)
                                         ============   ===============   ============    ============
Net loss per limited partnership
 unit                                  $      (56.44) $         (13.82) $      (59.05)  $      (80.46)
                                         ============   ===============   ============    ============
Outstanding weighted limited
 partner units                                17,726            17,726         17,726          17,726
                                         ============   ===============   ============    ============

</TABLE>

                 See accompanying notes to financial statements
                                       16

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

                    STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

                       For the Year Ended March 31, 2000,
                  For the Three Months Ended March 31, 1999 and
                 For the Years Ended December 31, 1998 and 1997
<TABLE>
<CAPTION>


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

<S>                                                       <C>                <C>                <C>
Partners' equity (deficit) at January 1, 1997             $        (82,529)  $     8,355,761    $      8,273,232

Net loss                                                           (14,406)       (1,426,169)         (1,440,575)
                                                            ---------------   ---------------     ---------------

Partners' equity (deficit) at December 31, 1997                    (96,935)        6,929,592           6,832,657

Net loss                                                           (10,573)       (1,046,695)         (1,057,268)
                                                            ---------------   ---------------     ---------------

Partners' equity (deficit) at December 31, 1998                   (107,508)        5,882,897           5,775,389

Net loss                                                            (2,474)         (244,887)           (247,361)
                                                            ---------------   ---------------     ---------------

Partners' equity (deficit) at March 31, 1999                      (109,982)        5,638,010           5,528,028

Net loss                                                           (10,105)       (1,000,372)         (1,010,477)
                                                            ---------------   ---------------     ---------------

Partners' equity (deficit) at March 31, 2000              $       (120,087)  $     4,637,638    $      4,517,551
                                                            ===============   ===============     ===============

</TABLE>

                 See accompanying notes to financial statements
                                       17
<PAGE>
                   WNC CALIFORNIA HOUSING TAX CREDITS II, L.P.
                       (A California Limited Partnership)

                            STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                           For the          For the
                                         Year Ended      Three Months        For the Years Ended
                                          March 31        Ended March 31         December 31
                                         ------------    --------------   ---------------------------
                                            2000             1999            1998           1997
                                         ------------    -------------    -----------    ------------
<S>                                  <C>              <C>             <C>            <C>
Cash flows from operating activities:
 Net loss                            $  (1,010,477)   $    (247,361)  $ (1,057,268)  $  (1,440,575)

 Adjustments  to reconcile net loss
  to net cash used in operating
  activities:
   Amortization                             53,215           13,307         53,228          54,445
   Equity in losses of limited
    partnerships                           736,997          178,363        782,729       1,155,586
   Change in other assets                        -                -              -           2,706
   Change in due from affiliates           (38,540)               -              -               -
   Increase in accrued fees and
    expenses due to General
    Partner and affiliates                 200,857           33,078        207,991         132,623
                                       ------------    -------------    -----------    ------------

Net cash used in operating activities      (57,948)         (22,613)       (13,320)        (95,215)
                                       ------------    -------------    -----------    ------------

Cash flows from investing activities:
 Investments in limited
  partnerships, net                              -                -              -         (75,526)
 Distributions from limited
  partnerships                               7,725            7,712         15,696          22,399
 Change in loans receivable                      -                -              -           8,569
                                       ------------    -------------    -----------    ------------

Net cash provided by (used in)
 investing activities                        7,725            7,712         15,696         (44,558)
                                       ------------    -------------    -----------    ------------

Net increase (decrease) in cash and
 cash equivalents                          (50,223)         (14,901)         2,376        (139,773)

Cash and cash equivalents, beginning
 of period                                 364,853          379,754        377,378         517,151
                                       ------------    -------------    -----------    ------------

Cash and cash equivalents, end of
 period                                $   314,630   $      364,853   $    379,754   $     377,378
                                       ============    =============    ===========    ============

SUPPLEMENTAL DISCLOSURE OF
 CASH FLOW INFORMATION:
  Taxes paid                           $       800   $            -   $        800   $         800
                                       ============    ==============   ===========    ============

</TABLE>

                 See accompanying notes to financial statements
                                       18
<PAGE>
                   WNC CALIFORNIA HOUSING TAX CREDITS II, L.P.
                       (A California Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS

                       For the Year Ended March 31, 2000,
                  For the Three Months Ended March 31, 1999 and
                 For the Years Ended December 31, 1998 and 1997

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 Complex") 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. ("WNC") and Wilfred N. Cooper are the general partners of
WNC Tax  Credit  Partners,  L.P.  Wilfred  N.  Cooper  Sr.,  through  the Cooper
Revocable Trust owns 66.8% of the outstanding stock of WNC. John B. Lester,  Jr.
was the original limited partner of the Partnership and owns, through the Lester
Family Trust,  28.6% of the outstanding  stock of WNC.  Wilfred N. Cooper,  Jr.,
President of WNC, owns 2.1% of the outstanding stock of WNC.

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.

Change in Reporting Year End

In 1999, the Partnership  elected to change its year end for financial reporting
purposes from December 31 to March 31. All  financial  information  reflected in
the financial statements and related footnotes has been adjusted for this change
in year end except for the combined condensed financial  information relating to
the Local Limited Partnerships included in Note 2.

                                       19
<PAGE>
                   WNC CALIFORNIA HOUSING TAX CREDITS II, L.P.
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                       For the Year Ended March 31, 2000,
                  For the Three Months Ended March 31, 1999 and
                 For the Years Ended December 31, 1998 and 1997

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

Risks and Uncertainties

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

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

Method of Accounting For Investments in Limited Partnerships

The Partnership  accounts for its investments in limited  partnerships using the
equity method of  accounting,  whereby the  Partnership  adjusts its  investment
balance for its share of the Local Limited  Partnership's  results of operations
and for any distributions received. The accounting policies of the Local Limited
Partnerships are consistent with those of the Partnership. Costs incurred by the
Partnership  in  acquiring  the  investments  are  capitalized  as  part  of the
investment account and are being amortized over 30 years (see Note 2).

Losses from limited  partnerships for the years ended December 31, 1998 and 1997
have been recorded by the Partnership  based on reported results provided by the
Local  Limited  Partnerships.  Losses from  limited  partnerships  for the three
months  ended  March  31,  1999  have  been   estimated  by  management  of  the
Partnership.  Losses from limited partnerships for the year ended March 31, 2000
have been recorded by the Partnership  based on nine months of reported  results
provided  by the Local  Limited  Partnerships  and on three  months  of  results
estimated  by  management  of  the   Partnership.   Losses  from  Local  Limited
Partnerships  allocated to the Partnership are not recognized to the extent that
the investment balance would be adjusted below zero.

                                       20

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                       For the Year Ended March 31, 2000,
                  For the Three Months Ended March 31, 1999 and
                 For the Years Ended December 31, 1998 and 1997

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

Offering Expenses

Offering  expenses consist of underwriting  commissions,  legal fees,  printing,
filing and  recordation  fees,  and other costs  incurred  with selling  limited
partnership  interests in the  Partnership.  The General Partner is obligated to
pay all  offering  and  organization  costs in  excess of 15%  (including  sales
commissions) of the total offering proceeds.  Offering expenses are reflected as
a reduction of limited  partners'  capital and amounted to $2,389,519 at the end
of all periods presented.

Use of Estimates

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

Cash and Cash Equivalents

The  Partnership   considers  all  highly  liquid   investments  with  remaining
maturities of three months or less when purchased to be cash equivalents.  As of
March 31,  2000 and 1999,  and  December  31,  1998,  the  Partnership  had cash
equivalents of $314,630, $363,876 and $378,777, respectively.

Concentration of Credit Risk

At March  31,  2000,  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  partnership  unit is  calculated  pursuant to Statement of
Financial  Accounting  Standards No. 128,  Earnings Per Share. Net loss per unit
includes no dilution  and is computed  by  dividing  loss  available  to limited
partners by the weighted average number of units outstanding during the period.
Calculation of diluted net loss per unit is not required.

Reporting Comprehensive Income

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

                                       21

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                       For the Year Ended March 31, 2000,
                  For the Three Months Ended March 31, 1999 and
                 For the Years Ended December 31, 1998 and 1997

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
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 Partnerships.

The  Partnership's  investments  in Local Limited  Partnerships  as shown in the
balance  sheets  at March 31,  2000 and 1999 are  approximately  $2,155,000  and
$1,636,000, 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,  as discussed below, and acquisition,  selection and other costs related
to the  acquisition  of the  investments  which  have  been  capitalized  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.

Equity  in  losses  of the  Local  Limited  Partnerships  is  recognized  in the
financial  statements until the related  investment account is reduced to a zero
balance. Losses incurred after the investment account is reduced to zero are not
recognized. If the Local Limited Partnerships report net income in future years,
the  Partnership  will resume applying the equity method only after its share of
such net  income  equals  the share of net  losses  not  recognized  during  the
period(s) the equity method was suspended.

Distributions  received by limited  partners are accounted for as a reduction of
the investment balance.  Distributions received after the investment has reached
zero are recognized as income.

At March 31, 2000, 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 year ended March 31, 2000 and the three
months ended March 31, 1999,  amounting to approximately  $556,141 and $166,072,
respectively, have not been recognized. The Partnership's share of losses during
the years ended December 31, 1998 and 1997 amounting to  approximately  $567,892
and $152,775,  respectively, have not been recognized. As of March 31, 2000, the
aggregate  share of net losses not  recognized  by the  Partnership  amounted to
$1,442,880.

Following is a summary of the equity method activity of the investments in Local
Limited Partnerships for the periods presented:
<TABLE>
<CAPTION>
                                                      For the Year    For the Three
                                                         Ended         Months Ended          For the Years Ended
                                                        March 31         March 31                December 31
                                                     ---------------  ---------------   ------------------------------
                                                          2000             1999             1998             1997
                                                     ---------------  ---------------   -------------    -------------
<S>                                                <C>              <C>               <C>              <C>
Investments per balance sheet, beginning of period $      6,240,560 $      6,439,942  $    7,291,595   $    8,447,282
Capital contributions paid, net                                   -                -               -           75,526
Distributions received                                       (7,725)          (7,712)        (15,696)         (22,399)
Equity in losses of limited partnerships                   (736,997)        (178,363)       (782,729)      (1,155,586)
Amortization of paid acquisition fees and costs             (53,215)         (13,307)        (53,228)         (53,228)
                                                     ---------------  ---------------   -------------    -------------

Investments per balance sheet, end of period       $      5,442,623 $      6,240,560  $    6,439,942   $    7,291,595
                                                     ===============  ===============   =============    =============
</TABLE>

                                       22
<PAGE>
                  WNC CALIFORNIA HOUSING TAX CREDITS II, L.P.
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                       For the Year Ended March 31, 2000,
                  For the Three Months Ended March 31, 1999 and
                 For the Years Ended December 31, 1998 and 1997

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:

                        COMBINED CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>

                                                              1999                1998
                                                         ---------------     ---------------
ASSETS
<S>                                                    <C>                 <C>
Buildings and improvements,(net of accumulated
 depreciation for 1999 and 1998 of $9,065,000
 and $7,793,000, respectively)                         $     30,062,000    $     31,200,000
Land                                                          2,465,000           2,465,000
Other assets                                                  2,813,000           2,656,000
                                                         ---------------     ---------------

                                                       $     35,340,000    $     36,321,000
                                                         ===============     ===============

LIABILITIES

Mortgage and construction loans payable                $     28,410,000    $     28,626,000
Due to related parties                                          715,000             582,000
Other liabilities                                             2,657,000           2,137,000
                                                         ---------------     ---------------

                                                             31,782,000          31,345,000
                                                         ---------------     ---------------
PARTNERS' CAPITAL

WNC California Housing Tax Credits II, L.P.                   3,288,000           4,605,000
Other partners                                                  270,000             371,000
                                                         ---------------     ---------------

                                                              3,558,000           4,976,000
                                                         ---------------     ---------------

                                                       $     35,340,000    $     36,321,000
                                                         ===============     ===============
</TABLE>

                                       23


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                       For the Year Ended March 31, 2000,
                  For the Three Months Ended March 31, 1999 and
                 For the Years Ended December 31, 1998 and 1997

NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued

                   COMBINED CONDENSED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>

                                                    1999               1998                1997
                                               ---------------    ---------------     ---------------
<S>                                          <C>                <C>                 <C>
Revenues                                     $      3,077,000   $      3,034,000    $      3,021,000
                                               ---------------    ---------------     ---------------
Expenses:
 Operating expenses                                 2,252,000          2,220,000           2,137,000
 Interest expense                                     924,000            924,000             935,000
 Depreciation and amortization                      1,286,000          1,284,000           1,276,000
                                               ---------------    ---------------     ---------------

   Total expenses                                   4,462,000          4,428,000           4,348,000
                                               ---------------    ---------------     ---------------

Net loss                                     $     (1,385,000)  $     (1,394,000)   $     (1,327,000)
                                               ===============    ===============     ===============

Net loss allocable to the Partnership        $     (1,310,000)  $     (1,351,000)   $     (1,312,000)
                                               ===============    ===============     ===============

Net loss recorded by the Partnership         $       (737,000)  $       (783,000)   $     (1,156,000)
                                               ===============    ===============     ===============
</TABLE>
Certain Local Limited  Partnerships have incurred  significant  operating losses
and  have  working  capital  deficiencies.  In the  event  these  Local  Limited
Partnerships continue to incur significant operating losses,  additional capital
contributions  by the  Partnership  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  Partnership  has  advanced  approximately  $38,540  to  two  Local  Limited
Partnerships  as of March 31, 2000 to cover  operating cash  deficits,  which is
presented as Due from Affiliates in the accompanying 2000 balance sheet.

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  $417,850,
          $364,674  and  $351,380 as of March 31, 2000 and 1999 and December 31,
          1998, respectively.

          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.  Management  fees of $210,084 and $52,521 were
          incurred  during the year ended March 31, 2000 and three  months ended
          March 31, 1999, respectively,  and $210,084 and $210,084 were incurred
          for the years ended December 31, 1998 and 1997, respectively, of which
          $10,000 and $19,400 were paid during the year ended March 31, 2000 and
          the three  months  ended  March  31,  1999,  respectively,  and $0 and
          $75,000  were paid during the years ended  December 31, 1998 and 1997,
          respectively.

                                       24

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                       For the Year Ended March 31, 2000,
                  For the Three Months Ended March 31, 1999 and
                 For the Years Ended December 31, 1998 and 1997

NOTE 3 - RELATED PARTY TRANSACTIONS, continued

          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.

          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 $26,186 and $7,300
          for the year ended March 31, 2000 and the three months ended March 31,
          1999,  respectively,  and  $40,513  and  $4,130  for the  years  ended
          December 31, 1998 and 1997,  respectively.  In May 1999, the affiliate
          of the General Partner  refunded  $14,503 and $2,076 of the management
          fees related to 1998 and 1997,  respectively,  in accordance  with the
          Partnership's prospectus.

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

                                                         March 31                  December 31
                                              --------------------------------   ----------------
                                                  2000              1999              1998
                                              --------------    --------------   ----------------
<S>                                         <C>               <C>               <C>
Reimbursement for expenses paid by the      $            90   $          (683)  $           (640)
 General Partner or an affiliate

Asset management fee payable                      1,278,152         1,078,068          1,044,947
                                              --------------    --------------   ----------------

Total                                       $     1,278,242   $     1,077,385   $      1,044,307
                                              ==============    ==============   ================

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

NOTE 4 - INCOME TAXES

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


                                       25

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

NOT APPLICABLE

PART III.

Item 10.  Directors and Executive Officers of the Registrant

Directors of Registrant

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

Directors and Executive Officers of WNC & Associates, Inc.

The directors of WNC & Associates,  Inc. are Wilfred N. Cooper,  Sr., who serves
as Chairman of the Board,  John B.  Lester,  Jr.,  David N.  Shafer,  Wilfred N.
Cooper, Jr. and Kay L. Cooper.  The principal  shareholders of WNC & Associates,
Inc. are trusts established by Wilfred N. Cooper, Sr. and John B. Lester, Jr.

Wilfred N.  Cooper,  Sr.,  age 69, is the  founder,  Chairman,  Chief  Executive
Officer  and a Director  of WNC &  Associates,  Inc.,  a Director of WNC Capital
Corporation,  and a general partner in some of the programs previously sponsored
by the  Sponsor.  Mr.  Cooper has been  involved in real estate  investment  and
acquisition  activities  since 1968.  Previously,  during 1970 and 1971,  he was
founder and principal of Creative Equity Development Corporation,  a predecessor
of WNC & Associates,  Inc., and of Creative  Equity  Corporation,  a real estate
investment firm. For 12 years prior to that, Mr. Cooper was employed by Rockwell
International  Corporation,  last  serving as its  manager of housing  and urban
developments where he had  responsibility  for factory-built  housing evaluation
and project  management  in urban  planning  and  development.  Mr.  Cooper is a
Director of the  National  Association  of Home  Builders  (NAHB) and a National
Trustee  for NAHB's  Political  Action  Committee,  a Director  of the  National
Housing  Conference  (NHC)  and a member  of  NHC's  Executive  Committee  and a
Director of the National Multi-Housing Council (NMHC). Mr. Cooper graduated from
Pomona College in 1956 with a Bachelor of Arts degree.

John B.  Lester,  Jr.,  age 66,  is  Vice-Chairman,  a  Director,  member of the
Acquisition  Committee of WNC & Associates,  Inc., and a Director of WNC Capital
Corporation.   Mr.  Lester  has  27  years  of  experience  in  engineering  and
construction  and has been involved in real estate  investment  and  acquisition
activities since 1986 when he joined the Sponsor. Previously, he was Chairman of
the Board and Vice President or President of E & L Associates,  Inc., a provider
of engineering and construction  services to the oil refinery and  petrochemical
industries,  which  he  co-founded  in  1973.  Mr.  Lester  graduated  from  the
University of Southern  California in 1956 with a Bachelor of Science  degree in
Mechanical Engineering.

Wilfred N.  Cooper,  Jr.,  age 37, is  President,  Chief  Operating  Officer,  a
Director and a member of the Acquisition Committee of WNC & Associates,  Inc. He
is President of, and a registered  principal  with, WNC Capital  Corporation,  a
member firm of the NASD, and is a Director of WNC  Management,  Inc. He has been
involved in investment and  acquisition  activities  with respect to real estate
since he joined the  Sponsor  in 1988.  Prior to this,  he served as  Government
Affairs  Assistant with Honda North America in Washington,  D.C. Mr. Cooper is a
member of the Advisory Board for LIHC Monthly Report,  a Director of NMHC and an
Alternate  Director of NAHB. He graduated  from The American  University in 1985
with a Bachelor of Arts degree.

David N.  Shafer,  age 48, is  Executive  Vice  President,  a Director,  General
Counsel,  and a member of the Acquisition  Committee of WNC & Associates,  Inc.,
and a  Director  and  Secretary  of WNC  Management,  Inc.  Mr.  Shafer has been
involved in real estate investment and acquisition  activities since 1984. Prior
to joining the Sponsor in 1990, he was  practicing  law with a specialty in real
estate and taxation.  Mr.  Shafer is a Director and President of the  California
Council of Affordable  Housing and a member of the State Bar of California.  Mr.
Shafer graduated from the University of California at Santa Barbara in 1978 with
a Bachelor of Arts  degree,  from the New  England  School of Law in 1983 with a
Juris  Doctor  degree (cum laude) and from the  University  of San Diego in 1986
with a Master of Law degree in Taxation.

                                       26

<PAGE>
Michael L. Dickenson, age 43, is Vice President and Chief Financial Officer, and
a member of the  Acquisition  Committee  of WNC &  Associates,  Inc.,  and Chief
Financial Officer of WNC Management,  Inc. He has been involved with acquisition
and  investment  activities  with  respect to real estate  since 1985.  Prior to
joining the Sponsor in March 1999, he was the Director of Financial  Services at
TrizecHahn  Centers Inc., a developer  and operator of  commercial  real estate,
from 1995 to 1999,  a Senior  Manager  with E&Y  Kenneth  Leventhal  Real Estate
Group, Ernst & Young, LLP, from 1988 to 1995, and Vice President of Finance with
Great Southwest  Companies,  a commercial and residential real estate developer,
from  1985 to 1988.  Mr.  Dickenson  is a  member  of the  Financial  Accounting
Standards  Committee for the National  Association of Real Estate  Companies and
the  American  Institute  of  Certified  Public  Accountants,  and a Director of
HomeAid  Southern  California,  a charitable  organization  affiliated  with the
building  industry.  He  graduated  from  Texas Tech  University  in 1978 with a
Bachelor of Business  Administration  -  Accounting  degree,  and is a Certified
Public Accountant in California and Texas.

Thomas J. Riha, age 45, is Vice President - Asset Management and a member of the
Acquisition  Committee  of WNC &  Associates,  Inc.  and a  Director  and  Chief
Executive  Officer  of WNC  Management,  Inc.  Mr.  Riha  has been  involved  in
acquisition  and investment  activities  with respect to real estate since 1979.
Prior to joining the  Sponsor in 1994,  Mr.  Riha was  employed by Trust  Realty
Advisor, a real estate acquisition and management company,  last serving as Vice
President - Operations. Mr. Riha graduated from the California State University,
Fullerton  in 1977 with a  Bachelor  of Arts  degree  (cum  laude)  in  Business
Administration  with a  concentration  in Accounting  and is a Certified  Public
Accountant  and  a  member  of  the  American   Institute  of  Certified  Public
Accountants.

Sy P. Garban,  age 54, is Vice  President -  Institutional  Investments of WNC &
Associates, Inc. and has been employed by the Sponsor since 1989. Mr. Garban has
been involved in real estate investment  activities since 1978. Prior to joining
the Sponsor he served as Executive  Vice  President of MRW,  Inc., a real estate
development  and management  firm.  Mr. Garban is a member of the  International
Association of Financial  Planners.  He graduated from Michigan State University
in 1967 with a Bachelor of Science degree in Business Administration.

N. Paul Buckland,  age 37, is Vice President - Acquisitions  and a member of the
Acquisition  Committee of WNC &  Associates,  Inc. He has been  involved in real
estate  acquisitions and investments since 1986 and has been employed with WNC &
Associates, Inc. since 1994. Prior to that, he served on the development team of
the Bixby Ranch that  constructed  apartment  units and Class A office  space in
California and neighboring  states,  and as a land acquisition  coordinator with
Lincoln  Property   Company  where  he  identified  and  analyzed   multi-family
developments. Mr. Buckland graduated from California State University, Fullerton
in 1992 with a Bachelor of Science degree in Business Finance.

David Turek, age 45, is Vice President - Originations of WNC & Associates,  Inc.
He has been involved with real estate  investment and finance  activities  since
1976 and has been employed by WNC & Associates,  Inc.  since 1996.  From 1995 to
1996,  Mr. Turek served as a consultant  for a national Tax Credit sponsor where
he was responsible for on-site feasibility studies and due diligence analyses of
Tax Credit properties.  From 1990 to 1995, he was involved in the development of
conventional  and tax credit  multi-family  housing.  He is a Director  with the
Texas Council for Affordable Rural Housing and graduated from Southern Methodist
University in 1976 with a Bachelor of Business Administration degree.

Kay L. Cooper,  age 63, is a Director of WNC & Associates,  Inc. Mrs. Cooper was
the founder and sole  proprietor  of Agate 108, a  manufacturer  and retailer of
home  accessory  products,  from 1975 until 1998.  She is the wife of Wilfred N.
Cooper,  Sr.,  the mother of Wilfred  N.  Cooper,  Jr. and the sister of John B.
Lester,  Jr. Ms. Cooper graduated from the University of Southern  California in
1958 with a Bachelor of Science degree.

                                       27


<PAGE>
Item 11.  Executive Compensation

The Partnership has no officers,  employees,  or directors.  However,  under the
terms of the  Partnership  Agreement the Partnership is obligated to the General
Partner or its  affiliates  during the current or future years for the following
fees:

(a)  Annual Asset  Management  Fee. An annual asset  management fee 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,
     $52,521 and $210,084  were  incurred  during the year ended March 31, 2000,
     the three months ended March 31, 1999 and the year ended December 31, 1998,
     respectively.  The Partnership  paid the General Partner or its affiliates,
     $10,000, $19,400 and $0 of those fees during the year ended March 31, 2000,
     the three months ended March 31, 2000 and the year ended December 31, 1998,
     respectively.

(b)  Subordinated  Disposition Fee. A subordinated  disposition fee in an amount
     equal to 1% of the  sale  price  received  in  connection  with the sale or
     disposition  of a Housing  Complex 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, 2001, and (ii) 6% for the balance of the Partnerships
     term. No disposition fees have been paid.

(c)  Operating  Expense.  The Partnership  reimbursed the General Partner or its
     affiliates for operating expenses of approximately  $16,000,  $0 and $1,000
     during the year ended March 31, 2000, the three months ended March 31, 1999
     and the year ended December 31, 1998, respectively.

(d)  Interest  in  Partnership.   The  General   Partners   receive  1%  of  the
     Partnership's  allocated Low Income Tax Housing Credits, which approximated
     $21,000 and $22,000  for the General  Partner for the years ended  December
     31, 1999 and 1998, respectively.  The General Partners are also entitled to
     receive 1% of cash  distributions.  There were no  distributions of cash to
     the General Partners during the year ended March 31, 2000, the three months
     ended March 31, 1999 or the year ended December 31, 1998.

Item 12.  Security Ownership of Certain Beneficial Owners and Management

(a)  Security Ownership of Certain Beneficial Owners

     No person is known to own  beneficially  in excess of 5% of the outstanding
     Units.

(b)  Security Ownership of Management

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

                                       28
<PAGE>

(c)  Changes in Control

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

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

Item 13.  Certain Relationships and Related Transactions

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

                                       29
<PAGE>
PART IV.

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

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

          Report  of  Independent   Certified  Public  Accountants
          Independent Auditors' Report
          Balance Sheets, March 31, 2000 and 1999 and December 31, 1998
          Statements of Operations  for the year ended March 31, 2000, the three
           months ended  March 31, 1999  and the years  ended  December 31, 1998
           and 1997
          Statements of Partners'  Equity for the year ended March 31, 2000, the
           three months  ended March 31, 1999 and the years ended  December  31,
           1998 and 1997
          Statements of Cash Flows for the year ended March 31, 2000,  the three
           months ended March 31, 1999 and the years ended December 31, 1998 and
           1997
          Notes to Financial Statements

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

         Report  of   Independent  Certified  Public  Accountants  on  Financial
          Statement Schedules

         Schedule III - Real Estate Owned by Local Limited Partnerships

(b)      Reports on Form 8-K.

1.       A Form 8-K dated May 13, 1999 was filed on May 14, 1999  reporting  the
         Partnership's  change  in fiscal  year end to  March  31. No  financial
         statements were included.

(c)      Exhibits.

         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.

10.1     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 10.1.

10.2     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 10.2.

10.3     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 10.3.

10.4     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 10.4.

10.5     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 10.5.

                                       30
<PAGE>

10.6     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 10.6.

10.7     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 10.7.

10.8     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 10.8.

10.9     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 10.9.

10.10    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 10.10.

10.11    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 10.11.

10.12    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 10.12.

10.13    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  herei  by  reference  as
         exhibit 10.13.

10.14    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 10.14.

21.1     Financial  Statements  of Mecca  Apartments  II,  for  the years  ended
         December 31, 1999 and 1998 together with  Independent  Auditors  Report
         thereon; a significant subsidiary of the Partnership.

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

                                       31
<PAGE>


Report of  Independent  Certified  Public  Accountants  on  Financial  Statement
Schedules




To the Partners
California Housing Tax Credits II, L.P.


The audits  referred to in our report  dated June 6, 2000  relating to the 2000,
1999 and 1998  financial  statements of WNC  California  Housing Tax Credits II,
L.P.  (the  "Partnership"),  which are  contained  in Item 8 of this Form  10-K,
included  the  audit of the  accompanying  financial  statement  schedules.  The
financial  statement  schedules  are  the  responsibility  of the  Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statement schedules based upon our audits.

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


                              /s/ BDO SEIDMAN, LLP
                                  BDO SEIDMAN, LLP


Orange County, California
June 6, 2000



                                       32


<PAGE>
WNC California Housing Tax Credits II, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2000
<TABLE>
<CAPTION>

                                         -----------------------------------  ------------------------------------------------------
                                                    As of March 31, 2000                       As of December 31, 1999
                                         -----------------------------------  ------------------------------------------------------
                                           Total Investment     Amount of     Encumbrances of                              Net
                                           in Local Limited  Investment Paid  Local Limited   Property and  Accumulated    Book
Partnership Name            Location       Partnerships          to Date      Partnerships     Equipment    Depreciation   Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                         <C>            <C>              <C>            <C>             <C>          <C>            <C>

601 Main Street             Stockton,
Investors                   California     $  1,656,000     $  1,656,000   $  3,997,000    $  5,553,000 $  1,496,000   $  4,057,000

ADI Development             Delhi,
Partners                    California          699,000          699,000      1,220,000       1,904,000      392,000      1,512,000

Bayless Garden              Red Bluff,
Apartments Investors        California        1,110,000        1,110,000      1,284,000       2,570,000      754,000      1,816,000

Blackberry Oaks, Ltd        Lodi,
                            California          463,000          463,000      1,930,000       2,430,000      403,000      2,027,000

Jacob's Square              Exeter,
                            California        1,324,000        1,324,000      1,586,000       2,860,000      597,000      2,263,000

Mecca Apartments II         Mecca,
                            California        2,200,000        2,200,000      2,512,000       4,361,000      553,000      3,808,000

Nevada Meadows              Grass Valley,
                            California          459,000          459,000      1,778,000       2,599,000      354,000      2,245,000

Northwest Tulare            Ivanhoe,
Associates                  California        1,226,000        1,226,000      1,933,000       2,959,000      856,000      2,103,000

Orland Associates           Orland,
                            California          432,000          432,000      1,714,000       2,250,000      425,000      1,825,000

Pine Gate Limited           Ahoskie,
Partnership                 California          272,000          272,000      1,452,000       1,803,000      243,000      1,560,000

</TABLE>
                                       33
<PAGE>


WNC California Housing Tax Credits II, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2000
<TABLE>
<CAPTION>

                                         -----------------------------------  ------------------------------------------------------
                                                  As of March 31, 2000                        As of December 31, 1999
                                         -----------------------------------  ------------------------------------------------------
                                           Total Investment     Amount of     Encumbrances of                              Net
                                           in Local Limited  Investment Paid  Local Limited   Property and  Accumulated    Book
Partnership Name            Location       Partnerships          to Date      Partnerships     Equipment    Depreciation   Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                         <C>            <C>            <C>            <C>              <C>           <C>           <C>

Silver Birch                Huron,
Associates                  California           378,000        378,000       1,343,000       1,714,000      431,000      1,283,000

Twin Pines                  Groveland,
Apartments Associates       California         1,278,000      1,278,000       1,788,000       3,316,000      938,000      2,378,000

Ukiah Terrace               Ukiah,
                            California           349,000        349,000       1,775,000       2,301,000      673,000      1,628,000

Woodlake Garden             Woodlake,
Apartments                  California           548,000        548,000       1,936,000       2,458,000      481,000      1,977,000

Yucca-Warren Vista          Joshua Tree,
Associates, Ltd.            California           520,000        520,000       2,162,000       2,514,000      469,000      2,045,000
                                              ----------     ----------      ----------      ----------    ---------     ----------

                                           $  12,914,000  $  12,914,000   $  28,410,000   $  41,592,000 $  9,065,000  $  32,527,000
                                              ==========     ==========      ==========      ==========    =========     ==========
</TABLE>
                                       34
<PAGE>
WNC California Housing Tax Credits II, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2000
<TABLE>
<CAPTION>

                                          -------------------------------------------------------------------------------------
                                                             For the year ended December 31, 1999
                                          -------------------------------------------------------------------------------------
                                                                                     Year
                                                                                     Investment                Estimated Useful
Partnership Name                           Rental Income      Net Income (Loss)      Acquired       Status     Life (Years)
-------------------------------------------------------------------------------------------------------------------------------
<S>                                           <C>            <C>                       <C>          <C>              <C>

601 Main Street Investors                     $  360,000     $  (351,000)              1991         Completed          39

ADI Development Partners                         121,000         (56,000)              1991         Completed          40

Bayless Garden Apartments Investors              163,000        (124,000)              1992         Completed        27.5

Blackberry Oaks, Ltd.                            214,000         (19,000)              1992         Completed          40

Jacob's Square                                   186,000        (109,000)              1993         Completed        27.5

Mecca Apartments II                              261,000        (158,000)              1993         Completed          40

Nevada Meadows                                   195,000         (37,000)              1993         Completed          40

Northwest Tulare Associates                      171,000        (123,000)              1991         Completed        27.5

Orland Associates                                202,000         (11,000)              1991         Completed          40

Pine Gate Limited Partnership                    226,000           8,000               1994         Completed          50

Silver Birch Associates                          134,000         (29,000)              1992         Completed        27.5

Twin Pines Apartments Associates                  99,000        (236,000)              1991         Completed        27.5

Ukiah Terrace                                    184,000         (56,000)              1991         Completed        27.5

Woodlake Garden Apartments                       182,000         (59,000)              1991         Completed          40

Yucca-Warren Vista Associates, Ltd.              223,000         (25,000)              1991         Completed          50
                                               ---------       ---------
                                           $   2,921,000  $   (1,385,000)
                                               =========       =========

</TABLE>
                                       35
<PAGE>

WNC California Housing Tax Credits II, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 1999
<TABLE>
<CAPTION>
                                          -------------------------------- ---------------------------------------------------------
                                                As of March 31, 1999                        As of December 31, 1998
                                          -------------------------------- ---------------------------------------------------------
                                           Total Investment     Amount of     Encumbrances of                              Net
                                           in Local Limited  Investment Paid  Local Limited   Property and  Accumulated    Book
Partnership Name            Location       Partnerships          to Date      Partnerships     Equipment    Depreciation   Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                         <C>            <C>              <C>            <C>             <C>          <C>            <C>
601 Main Street             Stockton,
Investors                   California     $  1,656,000     $  1,656,000   $  4,011,000    $  5,553,000 $  1,294,000   $  4,259,000

ADI Development             Delhi,
Partners                    California          699,000          699,000      1,226,000       1,898,000      348,000      1,550,000

Bayless Garden              Red Bluff,
Apartments Investors        California        1,110,000        1,110,000      1,291,000       2,560,000      655,000      1,905,000

Blackberry Oaks, Ltd        Lodi,
                            California          463,000          463,000      1,934,000       2,419,000      344,000      2,075,000

Jacob's Square              Exeter,
                            California        1,324,000        1,324,000      1,717,000       2,860,000      497,000      2,363,000

Mecca Apartments II         Mecca,
                            California        2,200,000        2,200,000      2,519,000       4,361,000      436,000      3,925,000

Nevada Meadows              Grass Valley,
                            California          459,000          459,000      1,940,000       2,593,000      292,000      2,301,000

Northwest Tulare            Ivanhoe,
Associates                  California        1,226,000        1,226,000      1,787,000       2,952,000      754,000      2,198,000

Orland Associates           Orland,
                            California          432,000          432,000      1,718,000       2,246,000      371,000      1,875,000

Pine Gate Limited           Ahoskie,
Partnership                 California          272,000          272,000      1,458,000       1,801,000      204,000      1,597,000

</TABLE>
                                       36
<PAGE>


WNC California Housing Tax Credits II, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 1999
<TABLE>
<CAPTION>
                                         ---------------------------------- --------------------------------------------------------
                                                  As of March 31, 1999                         As of December 31, 1998
                                         ----------------------------------  -------------------------------------------------------
                                          Total Investment     Amount of     Encumbrances of                               Net
                                           in Local Limited  Investment Paid  Local Limited   Property and  Accumulated    Book
Partnership Name            Location       Partnerships          to Date      Partnerships     Equipment    Depreciation   Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                         <C>            <C>            <C>            <C>              <C>           <C>           <C>

Silver Birch                Huron,
Associates                  California           378,000        378,000       1,347,000       1,714,000      368,000      1,346,000

Twin Pines                  Groveland,
Apartments Associates       California         1,278,000      1,278,000       1,789,000       3,285,000      812,000      2,473,000

Ukiah Terrace               Ukiah,
                            California           349,000        349,000       1,779,000       2,280,000      596,000      1,684,000

Woodlake Garden             Woodlake,
Apartments                  California           548,000        548,000       1,943,000       2,423,000      412,000      2,011,000

Yucca-Warren Vista          Joshua Tree,
Associates, Ltd.            California           520,000        520,000       2,167,000       2,513,000      410,000      2,103,000
                                              ----------     ----------      ----------      ----------    ---------     ----------

                                           $  12,914,000  $  12,914,000   $  28,626,000   $  41,458,000 $  7,793,000  $  33,665,000
                                              ==========     ==========      ==========      ==========    =========     ==========
</TABLE>
                                       37

<PAGE>


WNC California Housing Tax Credits II, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 1999
<TABLE>
<CAPTION>

                                          -------------------------------------------------------------------------------------
                                                             For the year ended December 31, 1998
                                          -------------------------------------------------------------------------------------
                                                                                      Year                     Estimated Useful
Partnership Name                           Rental Income         Net Loss      Investment Acquired    Status    Life (Years)
-------------------------------------------------------------------------------------------------------------------------------
<S>                                           <C>            <C>                       <C>          <C>              <C>
601 Main Street Investors                     $  366,000     $  (353,000)              1991         Completed          39

ADI Development Partners                         119,000         (44,000)              1991         Completed          40

Bayless Garden Apartments Investors              168,000         (99,000)              1992         Completed        27.5

Blackberry Oaks, Ltd.                            206,000         (17,000)              1992         Completed          40

Jacob's Square                                   183,000        (109,000)              1993         Completed        27.5

Mecca Apartments II                              252,000        (164,000)              1993         Completed          40

Nevada Meadows                                   192,000         (20,000)              1993         Completed          40

Northwest Tulare Associates                      183,000        (117,000)              1991         Completed        27.5

Orland Associates                                187,000         (21,000)              1991         Completed          40

Pine Gate Limited Partnership                    225,000          (6,000)              1994         Completed          50

Silver Birch Associates                          129,000         (36,000)              1992         Completed        27.5

Twin Pines Apartments Associates                  95,000        (263,000)              1991         Completed        27.5

Ukiah Terrace                                    179,000         (54,000)              1991         Completed        27.5

Woodlake Garden Apartments                       181,000         (52,000)              1991         Completed          40

Yucca-Warren Vista Associates, Ltd.              214,000         (39,000)              1991         Completed          50
                                               ---------       ---------
                                           $   2,879,000  $   (1,394,000)
                                               =========       =========

</TABLE>

                                       38

<PAGE>

WNC California Housing Tax Credits II, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
December 31, 1998
<TABLE>
<CAPTION>
                                          ------------------------------------------------------------------------------------------
                                                                             As of December 31, 1998
                                          ------------------------------------------------------------------------------------------
                                           Total Investment     Amount of     Encumbrances of                              Net
                                           in Local Limited  Investment Paid  Local Limited   Property and  Accumulated    Book
Partnership Name            Location       Partnerships          to Date      Partnerships     Equipment    Depreciation   Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                         <C>            <C>              <C>            <C>             <C>          <C>            <C>
601 Main Street             Stockton,
Investors                   California     $  1,656,000     $  1,656,000   $  4,011,000    $  5,553,000 $  1,294,000   $  4,259,000

ADI Development             Delhi,
Partners                    California          699,000          699,000      1,226,000       1,898,000      348,000      1,550,000

Bayless Garden              Red Bluff,
Apartments Investors        California        1,110,000        1,110,000      1,291,000       2,560,000      655,000      1,905,000

Blackberry Oaks, Ltd        Lodi,
                            California          463,000          463,000      1,934,000       2,419,000      344,000      2,075,000

Jacob's Square              Exeter,
                            California        1,324,000        1,324,000      1,717,000       2,860,000      497,000      2,363,000

Mecca Apartments II         Mecca,
                            California        2,200,000        2,200,000      2,519,000       4,361,000      436,000      3,925,000

Nevada Meadows              Grass Valley,
                            California          459,000          459,000      1,940,000       2,593,000      292,000      2,301,000

Northwest Tulare            Ivanhoe,
Associates                  California        1,226,000        1,226,000      1,787,000       2,952,000      754,000      2,198,000

Orland Associates           Orland,
                            California          432,000          432,000      1,718,000       2,246,000      371,000      1,875,000

Pine Gate Limited           Ahoskie,
Partnership                 California          272,000          272,000      1,458,000       1,801,000      204,000      1,597,000

</TABLE>
                                       39
<PAGE>


WNC California Housing Tax Credits II, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
December 31, 1998
<TABLE>
<CAPTION>
                                         -------------------------------------------------------------------------------------------
                                                                            As of December 31, 1998
                                         -------------------------------------------------------------------------------------------
                                          Total Investment     Amount of     Encumbrances of                               Net
                                          in Local Limited  Investment Paid  Local Limited   Property and  Accumulated    Book
Partnership Name            Location      Partnerships          to Date      Partnerships     Equipment    Depreciation   Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                         <C>            <C>            <C>            <C>              <C>           <C>           <C>

Silver Birch                Huron,
Associates                  California           378,000        378,000       1,347,000       1,714,000      368,000      1,346,000

Twin Pines                  Groveland,
Apartments Associates       California         1,278,000      1,278,000       1,789,000       3,285,000      812,000      2,473,000

Ukiah Terrace               Ukiah,
                            California           349,000        349,000       1,779,000       2,280,000      596,000      1,684,000

Woodlake Garden             Woodlake,
Apartments                  California           548,000        548,000       1,943,000       2,423,000      412,000      2,011,000

Yucca-Warren Vista          Joshua Tree,
Associates, Ltd.            California           520,000        520,000       2,167,000       2,513,000      410,000      2,103,000
                                              ----------     ----------      ----------      ----------    ---------     ----------

                                           $  12,914,000  $  12,914,000   $  28,626,000   $  41,458,000 $  7,793,000  $  33,665,000
                                              ==========     ==========      ==========      ==========    =========     ==========
</TABLE>

                                       40
<PAGE>
WNC California Housing Tax Credits II, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
December 31, 1998
<TABLE>
<CAPTION>

                                          -------------------------------------------------------------------------------------
                                                                   For the year ended December 31, 1998
                                          -------------------------------------------------------------------------------------
                                                                                      Year                     Estimated Useful
Partnership Name                           Rental Income         Net Loss      Investment Acquired    Status    Life (Years)
-------------------------------------------------------------------------------------------------------------------------------
<S>                                           <C>            <C>                       <C>          <C>              <C>
601 Main Street Investors                     $  366,000     $  (353,000)              1991         Completed          39

ADI Development Partners                         119,000         (44,000)              1991         Completed          40

Bayless Garden Apartments Investors              168,000         (99,000)              1992         Completed        27.5

Blackberry Oaks, Ltd.                            206,000         (17,000)              1992         Completed          40

Jacob's Square                                   183,000        (109,000)              1993         Completed        27.5

Mecca Apartments II                              252,000        (164,000)              1993         Completed          40

Nevada Meadows                                   192,000         (20,000)              1993         Completed          40

Northwest Tulare Associates                      183,000        (117,000)              1991         Completed        27.5

Orland Associates                                187,000         (21,000)              1991         Completed          40

Pine Gate Limited Partnership                    225,000          (6,000)              1994         Completed          50

Silver Birch Associates                          129,000         (36,000)              1992         Completed        27.5

Twin Pines Apartments Associates                  95,000        (263,000)              1991         Completed        27.5

Ukiah Terrace                                    179,000         (54,000)              1991         Completed        27.5

Woodlake Garden Apartments                       181,000         (52,000)              1991         Completed          40

Yucca-Warren Vista Associates, Ltd.              214,000         (39,000)              1991         Completed          50
                                               ---------       ---------
                                           $   2,879,000  $   (1,394,000)
                                               =========       =========

</TABLE>

                                       41

<PAGE>

Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  registrant  has duly  caused  this report to be signed on its
behalf by the undersigned, thereunto duly authorized.


WNC CALIFORNIA HOUSING TAX CREDITS II, L.P.

By:  WNC Tax Credit Partners, L.P., General Partner

By:  WNC & Associates, Inc., General Partner


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

Date: June 29, 2000


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

Date: June 29, 2000

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following  persons on behalf of the  registrant and
in the capacities and on the dates indicated.


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

Date: June 29, 2000


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

Date: June 29, 2000


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

Date: June 29, 2000




                                       42