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 year ended March 31, 2003

                                       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: 0-20058


                    WNC CALIFORNIA HOUSING TAX CREDITS, L.P.

                      California                          33-0316953
                    (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          No     X
 ------      -----------

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



<PAGE>


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

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

                                  INAPPLICABLE

                       DOCUMENTS INCORPORATED BY REFERENCE

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

                                      NONE

                                       2

<PAGE>



PART I.

Item 1.  Business

Organization

WNC California  Housing Tax Credits,  L.P.  ("CHTC" or the  "Partnership")  is a
California Limited  Partnership formed under the laws of the State of California
on September 15, 1988. 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 Credits").

The  general   partners  of  the   Partnership   are  WNC  &  Associates,   Inc.
("Associates") and Wilfred N. Cooper, Sr.  (collectively,  the "General Partner"
or "General Partners").  The chairman and president own substantially all of the
outstanding  stock of Associates.  The business of the  Partnership is conducted
primarily through Associates, as the Partnership has no employees of its own.

Pursuant to a  registration  statement  filed with the  Securities  and Exchange
Commission,  on March 16, 1989, the  Partnership  commenced a public offering of
10,000 Units of Limited Partnership  Interest ("Units") at a price of $1,000 per
Unit.  As of the close of the public  offering on October 31,  1990,  a total of
7,450 Units representing $7,450,000 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  Complexes") 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.  Each
Housing Complex is subject to a fifteen-year  compliance period (the "Compliance
Period"),  and under state law may have to be maintained  as low income  housing
for 30 or more years.

In general,  in order to avoid  recapture  of Low Income  Housing  Credits,  the
Partnership  does not  expect  that it will  dispose of its  interests  in Local
Limited Partnerships ("Local Limited Partnership Interests") or approve the sale
by any Local Limited  Partnership of its Housing Complex prior to the end of the
applicable  Compliance  Period.  Because  of  (i)  the  nature  of  the  Housing
Complexes,  (ii) the  difficulty of predicting  the resale market for low-income
housing  15 or more years in the  future,  and (iii) the  ability of  government
lenders to  disapprove  of transfer,  it is not possible at this time to predict
whether the liquidation of the  Partnership's  assets and the disposition of the
proceeds,  if any, in  accordance  with the  Partnership's  Agreement of Limited
Partnership,  dated September 15, 1988 (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.

As of March 31, 2003,  the  Partnership  had  invested in eleven  Local  Limited
Partnerships.  Each of these Local Limited  Partnerships  owns a Housing Complex
that is eligible  for the federal  Low Income  Housing  Credit and eight 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.

                                       3
<PAGE>

Certain Risks and Uncertainties

An investment in the  Partnership  and the  Partnership's  investments  in Local
Limited  Partnerships  and their Housing  Complexes are subject to risks.  These
risks may impact the tax benefits of an investment in the  Partnership,  and the
amount of proceeds  available for distribution to the Limited Partners,  if any,
on liquidation of the Partnership's investments. Some of those risks include the
following:

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

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

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

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

Exit Strategy

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

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

                                       4
<PAGE>


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

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 eleven Housing  Complexes as of the dates and for the
periods indicated:


                                       5
<PAGE>

<TABLE>
<CAPTION>


                                                  ---------------------------------- -----------------------------------------------
                                                        As of March 31, 2003                       As of December 31, 2002
                                                  ---------------------------------- -----------------------------------------------
                                                      Partnership's                                  Estimated Low      Encumbrances
                                                     Total Investment    Amount of                        Income          of Local
                                   General Partner   in Local Limited    Investment  Number of            Housing          Limited
Partnership Name     Location          Name             Partnerships    Paid to Date   Units  Occupancy  Credits        Partnerships
------------------------------------------------------------------------------------------------------------------------------------


<S>                  <C>           <C>                  <C>              <C>            <C>     <C>    <C>              <C>
                                   Philip R. Hammond,
Alta Vista           Orosi,        Jr. and Diane M.
Investors            California    Hammond              $    583,000     $  583,000     42       95%   $   1,274,000    $  1,423,000

BCA                  Anderson,     Douglas W.
Associates           California    Young                     514,000        514,000     40      100%       1,105,000       1,412,000

                                   David J. Michael,
                                   Patrick R.
                                   Sabelhaus and
Cloverdale                         Professional
Garden               Cloverdale,   Apartment
Apartments           California    Management                617,000        617,000     34      100%       1,387,000       1,625,000


                                   Philip R. Hammond,
Countryway           Mendota,      Jr. and Diane M.
Associates           California    Hammond                   571,000        571,000     41       98%       1,162,000       1,463,000

                                   David J. Michael
                                   and Professional
East Garden          Jamestown,    Apartment
Apartments           California    Management                770,000        770,000     51      100%       1,772,000       2,138,000

                     Shafter,      Douglas W.
HPA                  California    Young                     538,000        538,000     42      100%       1,223,000       1,500,000

Knights              Knights
Landing              Landing,      Douglas W. Young
Harbor               California    and Diane L. Young        275,000        275,000     25      100%         446,000         974,000
</TABLE>


                                       6

<PAGE>

<TABLE>
<CAPTION>


                                                  ---------------------------------- -----------------------------------------------
                                                        As of March 31, 2003                       As of December 31, 2002
                                                  ---------------------------------- -----------------------------------------------
                                                      Partnership's                                  Estimated Low      Encumbrances
                                                     Total Investment    Amount of                        Income          of Local
                                   General Partner   in Local Limited    Investment  Number of            Housing          Limited
Partnership Name     Location          Name             Partnerships    Paid to Date   Units  Occupancy  Credits        Partnerships
------------------------------------------------------------------------------------------------------------------------------------


<S>                  <C>           <C>                   <C>            <C>            <C>      <C>     <C>            <C>
                                   Philip R. Hammond,
Midland Manor        Mendota,      Jr. and Diane M.
Associates           California    Hammond                   383,000        383,000     40       90%         668,000       1,417,000

                                   Richard Parasol
San Jacinto          San Jacinto,  and Richard A.
Associates           California    Gullota                   469,000        469,000     38      100%         830,000       1,770,000

                                   Thomas G. Larson,
                                   William H. Larson
Woodlake             Woodlake,     and Raymond L.
Manor                California    Tetzlaff                  545,000        545,000     44       97%       1,146,000       1,442,000


Yreka Investment     Yreka,        Ronald D.
Group                California    Bettencourt               538,000        538,000     36       97%       1,174,000       1,457,000
                                                         ------------   ------------  -------   ----   --------------  -------------

                                                         $ 5,803,000    $ 5,803,000    433       98%   $  12,187,00    $  16,621,000
                                                         ============   ============  =======   ====   ==============  =============
</TABLE>

                                       7
<PAGE>

<TABLE>
<CAPTION>



                                  ----------------------------------------------
                                      For the Year Ended December 31, 2002
                                  ----------------------------------------------
                                                                                       Low Income Housing Credits
        Partnership Name              Rental Income        Net Income (Loss)            Allocated to Partnership
--------------------------------------------------------------------------------     --------------------------------

<S>                                            <C>                   <C>                                         <C>
Alta Vista Investors                           $ 168,000             $ (78,000)                                  99%

BCA Associates                                   163,000               (30,000)                                  99%

Cloverdale Garden Apartments                     208,000                 4,000                                   99%

Countryway Associates                            170,000               (72,000)                                  99%

East Garden Apartments                           249,000               (44,000)                                  99%

HPA Investors                                    177,000               (38,000)                                  99%

Knights Landing Harbor                           125,000               (21,000)                                  99%

Midland Manor Associates                         157,000               (58,000)                                  99%

San Jacinto Associates                           213,000               (14,000)                                  99%

Woodlake Manor                                   187,000               (52,000)                                  99%

Yreka Investment Group                           171,000               (33,000)                                  99%
                                            ------------            -----------

                                             $ 1,988,000            $ (436,000)
                                            ============            ===========
</TABLE>


                                       8
<PAGE>




Item 3.  Legal Proceedings

NONE

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

NONE

PART II.

Item 5. Market for Registrant's Common Equity 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, 2003, there were 688 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, 2003.

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
                           --------------------------------------------------------------------   ---------------
                              2003          2002          2001          2000           1999            1998
                           -----------   -----------   -----------   ------------   -----------   ---------------

<S>                      <C>           <C>           <C>           <C>            <C>            <C>
ASSETS
Cash and cash
  equivalents            $        734  $     12,170  $     44,172  $      47,877  $     61,123  $         66,028
Investments in limited
  partnerships, net           453,314       600,843       809,249      1,187,690     1,508,351         1,595,464
                           -----------   -----------   -----------   ------------   -----------   ---------------

                         $    454,048  $    613,013  $    853,421  $   1,235,567  $  1,569,474  $      1,661,492
                           ===========   ===========   ===========   ============   ===========   ===============
LIABILITIES
Accrued fees and
  expenses due to
  general partner and
  affiliates             $  1,300,219  $  1,180,524  $  1,080,521  $     957,395  $    848,503  $        820,365

PARTNERS' EQUITY
(DEFICIT)                    (846,171)     (567,511)     (227,100)       278,172       720,971           841,127
                           -----------   -----------   -----------   ------------   -----------   ---------------
                         $    454,048  $    613,013  $    853,421  $   1,235,567  $  1,569,474  $      1,661,492
                           ===========   ===========   ===========   ============   ===========   ===============
</TABLE>

                                       9
<PAGE>


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

                                                                                                                 For the Year
                                          For the Years Ended                    For the Three Months Ended          Ended
                                               March 31                                   March 31               December 31
                          ----------------------------------------------------   ----------------------------    -------------
                            2003          2002         2001           2000          1999            1998             1998
                          ----------    ----------   ----------    -----------   ------------   -------------    -------------
                                                                                                 (Unaudited)
<S>                     <C>         <C>           <C>          <C>            <C>            <C>              <C>
Loss from operations    $  (139,721)$    (139,316)$   (146,597)$     (142,543)$      (37,519)$       (32,603) $      (144,721)
Equity in loss from
  limited partnerships     (138,939)     (201,095)    (358,675)      (300,256)       (82,637)       (104,625)        (388,158)
                          ----------    ----------   ----------    -----------   ------------   -------------    -------------
Net loss                $  (278,660)$    (340,411)$   (505,272)$     (442,799)$     (120,156)$      (137,228) $      (532,879)
                          ==========    ==========   ==========    ===========   ============   =============    =============
Net loss allocated to:
   General partners     $    (2,787)$      (3,404)$     (5,053)$       (4,428)$       (1,202)$        (1,372) $        (5,329)
                          ==========    ==========   ==========    ==========    ==========     =============    =============
   Limited partners     $  (275,873)$    (337,007)$   (500,219)$     (438,371)$     (118,954)$      (135,856) $      (527,550)
                          ==========    ==========   ==========    ==========    ==========     =============    =============
Net loss per limited
  partner unit          $    (37.03)$      (45.24)$     (67.14)$       (58.84)$       (15.97)$        (18.24) $        (70.81)
                          ==========    ==========   ==========    ==========    ==========     =============    =============
Outstanding weighted          7,450         7,450        7,450          7,450          7,450           7,450            7,450
  limited partner units   ==========    ==========   ==========    ===========   ============   =============    =============
</TABLE>

<TABLE>
<CAPTION>

                                                   For the Year
                                            For the Years Ended                       For the Years Ended              Ended
                                                 March 31                                Ended March 31            December 31
                           ------------------------------------------------------  ----------------------------    ------------
                              2003          2002          2001           2000          1999           1998            1998
                           -----------    ----------    ----------    -----------  -------------   ------------    ------------
                                                                                                   (Unaudited)
<S>                      <C>          <C>           <C>           <C>            <C>             <C>             <C>
Net cash provided by
 (used in):
   Operating activities  $    (14,602)$     (34,751)$      (8,569)$      (18,747)$       (5,655) $         546   $     (15,377)
   Investing activities         3,166         2,749         4,864          5,501            750            535           3,296
                           -----------    ----------    ----------    -----------  -------------   ------------    ------------

Net change in cash and
  cash equivalents            (11,436)      (32,002)       (3,705)      (13,246)         (4,905)         1,081         (12,081)

Cash and cash
  equivalents,
  beginning of period          12,170        44,172        47,877         61,123         66,028         78,109          78,109
                           -----------    ----------    ----------    -----------  -------------   ------------    ------------

Cash and cash
  equivalents, end of
  period                 $        734 $      12,170 $      44,172   $     47,877 $       61,123  $      79,190   $      66,028
                           ===========    ==========    ==========    ===========  =============   ============    ============
</TABLE>
<TABLE>
<CAPTION>

Low Income Housing Credit per Unit was as follows for the years ended December 31:

                                                2002           2001           2000           1999           1998
                                             ------------   ------------   ------------   ------------   ------------
<S>                                        <C>            <C>            <C>            <C>                       <C>
Federal                                    $           1  $          16  $          59  $          99             99

State                                                  -              -              -              -              -
                                             ------------   ------------   ------------   ------------   ------------
Total                                      $           1  $          16  $          59  $          99  $          99
                                             ============   ============   ============   ============   ============
</TABLE>

                                       10
<PAGE>


Item 7. Management's  Discussion and Analysis of Financial Condition and Results
of Operations

Forward Looking Statements

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

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

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

Critical Accounting Policies and Certain Risks and Uncertainties

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

Use of Estimates

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

Method of Accounting For Investments in Limited Partnerships

The Partnership  accounts for its investments in limited  partnerships using the
equity method of  accounting,  whereby the  Partnership  adjusts its  investment
balance for its share of the Local Limited  Partnerships'  results of operations
and for  any  contributions  made or  distributions  received.  The  Partnership
reviews the  carrying  amount of an  individual  investment  in a Local  Limited
Partnership for possible  impairment whenever events or changes in circumstances
indicate that the carrying  amount of such  investment  may not be  recoverable.
Recoverability  of such  investment  is measured by a comparison of the carrying
amount to future  undiscounted  net cash flows  expected to be generated.  If an
investment  is  considered  to be impaired,  the  impairment to be recognized is
measured by the amount by which the carrying  amount of the  investment  exceeds
fair value.  The  accounting  policies  of the Local  Limited  Partnerships  are
generally  consistent  with  those of the  Partnership.  Costs  incurred  by the
Partnership  in  acquiring  the  investments  are  capitalized  as  part  of the
investment account and are being amortized over 30 years.

Equity in losses of the Local Limited  Partnerships for each year ended March 31
have been recorded by the Partnership  based on nine months of reported  results
provided by the Local Limited  Partnerships  for each year ended December 31 and
on three months of results  estimated by management of the  Partnership for each
three-month  period ended March 31.  Management's  estimate for the  three-month
period is based on either actual unaudited results reported by the Local Limited
Partnerships  or  historical  trends  in the  operations  of the  Local  Limited
Partnerships.  Equity in losses of the Local Limited Partnerships are 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.


                                       11
<PAGE>


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

Income Taxes

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

Certain Risks and Uncertainties

An investment in the  Partnership  and the  Partnership's  investments  in Local
Limited  Partnerships  and their Housing  Complexes are subject to risks.  These
risks may impact the tax benefits of an investment in the  Partnership,  and the
amount of proceeds  available for distribution to the Limited Partners,  if any,
on liquidation of the Partnership's investments. Some of those risks include the
following:

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

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

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

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

To date, certain Local Limited Partnerships have incurred significant  operating
losses and have working capital  deficiencies.  In the event these Local Limited
Partnerships continue to incur significant operating losses,  additional capital
contributions  by the  Partnership  and/or  the  Local  General  Partner  may be
required  to sustain  the  operations  of such Local  Limited  Partnerships.  If
additional capital contributions are not made when they are required, the

                                       12
<PAGE>

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.

Financial Condition

The Partnership's assets at March 31, 2003 consisted primarily of $700 in cash
and aggregate investments in the eleven Local Limited Partnerships of $453,000.
Liabilities at March 31, 2003 primarily consisted of $1,291,000 of accrued
annual management fees due to the General Partners.

Results of Operations

Year  Ended  March  31,  2003  Compared  to  Year  Ended  March  31,  2002.  The
Partnership's  net  loss for the  year  ended  March  31,  2003 was  $(279,000),
reflecting  a decrease  of $61,000  from the net loss  experienced  for the year
ended March 31, 2002.  The  decrease in net loss is  primarily  due to equity in
losses from limited  partnerships  which  decreased by $62,000 to $(139,000) for
the year ended March 31, 2003 from $(201,000) for the year ended March 31, 2002.
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, 2003. Since the Partnership's liability
with respect to its  investments is limited,  losses in excess of investment are
not  recognized.  Equity in losses of  limited  partnerships  included a portion
relating to the reduction of the net acquisition fee component of investments in
Local Limited  Partnerships to zero for those Local Limited  Partnerships  which
would otherwise be below a zero balance.

Year  Ended  March  31,  2002  Compared  to  Year  Ended  March  31,  2001.  The
Partnership's  net  loss for the  year  ended  March  31,  2002 was  $(340,000),
reflecting  a decrease of $165,000  from the net loss  experienced  for the year
ended March 31, 2001.  The  decrease in net loss is  primarily  due to equity in
losses from limited  partnerships  which decreased by $158,000 to $(201,000) for
the year ended March 31, 2002 from $(359,000) for the year ended March 31, 2001.
Equity in losses of  limited  partnerships  included a portion  relating  to the
reduction of the net  acquisition  fee component of investments in Local Limited
Partnerships to zero for those Local Limited  Partnerships which would otherwise
be below a zero balance.

Liquidity and Capital Resources

Year Ended March 31, 2003  Compared to Year Ended March 31, 2002.  Net cash used
during the year ended  March 31, 2003 was  $(11,000),  compared to net cash used
for the year ended  March 31,  2002 of  $(32,000).  The net cash used  primarily
represents  cash used for operating  expenses net of minimal cash  distributions
from Local Limited Partnerships.

Year Ended March 31, 2002  Compared to Year Ended March 31, 2001.  Net cash used
during the year ended  March 31, 2002 was  $(32,000),  compared to net cash used
for the year  ended  March 31,  2001 of  $(4,000).  The net cash used  primarily
represents  cash used for operating  expenses net of minimal cash  distributions
from Local Limited Partnerships.

During the years ended March 31, 2003, 2002 and 2001,  accrued  payables,  which
consist  primarily of related party  management fees due to the General Partner,
increased by $120,000, $100,000 and $123,000,  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   currently  has  insufficient  working  capital  to  fund  its
operations.  Associates  has agreed to continue  providing  advances  sufficient
enough  to  fund  the  operations  and  working  capital   requirements  of  the
Partnership through June 30, 2004.



                                       13
<PAGE>



Future Contractual Cash Obligations

The  following  table  summarizes  the  Partnership's  future  contractual  cash
obligations as of March 31, 2003:
<TABLE>
<CAPTION>

                                     2004         2005       2006        2007       2008     Thereafter        Total

                                   ----------   ---------  ---------   ---------  ---------  ------------    ----------
<S>                              <C>          <C>        <C>         <C>        <C>        <C>             <C>
Asset Management Fees (1)        $ 1,412,074  $  111,855 $  111,855  $  111,855 $  111,855 $   3,243,795   $ 5,103,289
Capital Contributions Payable
   to Lower Tier Partnerships              -           -          -           -          -             -             -
                                   ----------   ---------  ---------   ---------  ---------  ------------    ----------
Total contractual cash
   obligations                   $ 1,412,074  $  111,855 $  111,855  $  111,855 $  111,855 $   3,243,795   $ 5,103,289
                                   ==========   =========  =========   =========  =========  ============    ==========
</TABLE>

(1)  Asset  Management  Fees  are  payable  annually  until  termination  of the
Partnership,  which is to occur no later than  2037.  The  estimate  of the fees
payable included herein assumes the retention of the  Partnership's  interest in
all Housing Complexes until 2037. Amounts due to the General Partner as of March
31, 2003 have been  included in the 2004  column.  The General  Partner does not
anticipate that these fees will be paid until such time as capital  reserves are
in  excess  of  the  future  foreseeable  working  capital  requirements  of the
Partnership.

For   additional   information  on  our  Asset   Management   Fees  and  Capital
Contributions  Payable  to Lower  Tier  Partnerships,  see  Notes 2 and 3 to the
financial statements included elsewhere herein.

Exit Strategy

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

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

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

Impact of New Accounting Pronouncements

In June 2001, the Financial Accounting Standards Board ("FASB") issued Statement
of  Financial  Accounting  Standards  ("SFAS")  No. 143,  "Accounting  for Asset
Retirement  Obligations",  which requires that the fair value of a liability for
an asset  retirement  obligation  be  recognized  in the  period  in which it is
incurred with the associated asset retirement costs being  capitalized as a part
of the  carrying  amount of the  long-lived  asset.  SFAS No. 143 also  includes
disclosure   requirements   that  provide  a  description  of  asset  retirement
obligations   and   reconciliation   of  changes  in  the  components  of  those
obligations.  The statement is effective for fiscal years  beginning  after June
15, 2002. The Partnership does not expect the adoption of SFAS No. 143 to have a
material  effect  on  the  Partnership's   financial   position  or  results  of
operations.

In August  2001,  the FASB  issued  SFAS No.  144,  "Impairment  or  Disposal of
Long-Lived  Assets," which addresses  accounting and financial reporting for the
impairment or disposal of long-lived assets. This standard was effective for the
Partnership's financial statements beginning January 1, 2002. The implementation
of SFAS No. 144 did not have a material  impact on the  Partnership's  financial
position or results of operations.

                                       14
<PAGE>

In April 2002, the FASB issued SFAS No. 145,  "Rescission of FASB Statements No.
4, 44, and 64,  Amendment of FASB Statement No. 13, and Technical  Corrections."
SFAS No. 145 rescinded three previously  issued  statements and amended SFAS No.
13, "Accounting for Leases." The statement provides reporting standards for debt
extinguishments   and   provides   accounting   standards   for  certain   lease
modifications that have economic effects similar to sale-leaseback transactions.
The statement is effective for certain lease  transactions  occurring  after May
15,  2002 and all other  provisions  of the  statement  shall be  effective  for
financial statements issued on or after May 15, 2002. The implementation of SFAS
No. 145 did not have a material impact on the Partnership's  financial  position
or results of operations.

In June 2002,  the FASB issued SFAS No. 146,  "Accounting  for Costs  Associated
with Exit or  Disposal  Activities,"  which  updates  accounting  and  reporting
standards for personnel and operational restructurings.  The Partnership adopted
SFAS No. 146 for exit,  disposal  or other  restructuring  activities  initiated
after  December 31,  2002.  The adoption of SFAS No. 146 did not have a material
effect on the Partnership's financial position or results of operations.

In November 2002, the FASB issued Interpretation No. 45 ("FIN 45"), "Guarantor's
Accounting  and  Disclosure  Requirements  for  Guarantees,  Including  Indirect
Guarantees  of  Indebtedness  of Others."  The adoption of FIN 45 did not have a
material  impact  on  the  Partnership's   financial   position  or  results  of
operations.

In December  2002,  the FASB issued SFAS No. 148,  "Accounting  for  Stock-Based
Compensation  - Transition  and Disclosure - an Amendment to SFAS No. 123." SFAS
No. 148 provides alternative methods of transition for a voluntary change to the
fair value based method on accounting for stock-based employee compensation. The
implementation  of SFAS No. 148 is not expected to have a material effect on the
Partnership's financial position or results of operations.

In  January   2003,   the  FASB  issued   Interpretation   No.  46  ("FIN  46"),
"Consolidation  of Variable  Interest  Entities." The adoption of FIN 46 did not
have a material  impact on the  Partnership's  financial  position or results of
operations.

Item 7A.  Quantitative and Qualitative Disclosures about Market Risk

NOT APPLICABLE

Item 8.  Financial Statements and Supplementary Data


                                       15
<PAGE>


               Report of Independent Certified Public Accountants


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



We have audited the  accompanying  balance sheets of WNC California  Housing Tax
Credits, L.P. (a California Limited Partnership) (the "Partnership") as of March
31, 2003 and 2002, and the related  statements of operations,  partners' deficit
and cash  flows  for the  years  ended  March 31,  2003,  2002 and  2001.  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 80% and
79% of the  total  assets  of the  Partnership  at  March  31,  2003  and  2002,
respectively,  and 83%,  88% and 78% of the  Partnership's  equity  in losses of
limited  partnerships  for the  years  ended  March  31,  2003,  2002 and  2001,
respectively.  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 auditing standards generally accepted
in the  United  States of  America.  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, L.P. (A California
Limited  Partnership)  as of March 31,  2003 and 2002,  and the  results  of its
operations and its cash flows for the years ended March 31, 2003, 2002 and 2001,
in conformity with accounting principles generally accepted in the United States
of America.

The  Partnership   currently  has  insufficient  working  capital  to  fund  its
operations.  As  discussed  in  Note  3 to the  financial  statements,  WNC  and
Associates, Inc., the general partner of the Partnership, has agreed to continue
providing advances  sufficient enough to fund the operations and working capital
requirements of the Partnership through June 30, 2004.




                                          /s/  BDO SEIDMAN, LLP

Costa Mesa, California
May 2, 2003

                                       16
<PAGE>


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

                                 BALANCE SHEETS
<TABLE>
<CAPTION>

                                                                                               March 31
                                                                                     ------------------------------
                                                                                         2003             2002
                                                                                     --------------   -------------
<S>                                                                                <C>              <C>
ASSETS

Cash and cash equivalents                                                          $           734  $       12,170
Investments in limited partnerships, net (Notes 2 and 3)                                   453,314         600,843
                                                                                     --------------   -------------

                                                                                   $       454,048  $      613,013
                                                                                     ==============   =============

LIABILITIES AND PARTNERS' DEFICIT

Liabilities:
   Accrued fees and expenses due to General Partner and
     affiliates (Note 3)                                                           $     1,300,219  $    1,180,524

Commitments and contingencies

Partners' deficit:
    General partners                                                                       (73,303)        (70,516)
    Limited partners (10,000 units authorized; 7,450 units
     issued and outstanding)                                                              (772,868)       (496,995)
                                                                                     --------------   -------------

      Total partners' deficit                                                             (846,171)       (567,511)
                                                                                     --------------   -------------

                                                                                   $       454,048  $      613,013
                                                                                     ==============   =============
</TABLE>

                 See accompanying notes to financial statements
                                       17

<PAGE>


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

                            STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>



                                                              For the Years Ended March 31
                                                      ----------------------------------------------
                                                          2003             2002            2001
                                                      --------------    ------------    ------------

<S>                                                 <C>               <C>             <C>
Interest income                                     $            46   $         720   $       1,836
Distribution income                                           1,584           1,584           1,584
                                                      --------------    ------------    ------------

Total income                                                  1,630           2,304           3,420
                                                      --------------    ------------    ------------
Operating expenses:
   Amortization (Notes 2 and 3)                               5,424           4,562          14,902
   Asset management fees (Note 3)                           111,855         111,854         111,856
   Legal and accounting                                      18,795          18,957          17,995
   Office                                                     5,277           6,247           5,264
                                                      --------------    ------------    ------------
    Total operating expenses                                141,351         141,620         150,017
                                                      --------------    ------------    ------------
Loss from operations                                       (139,721)       (139,316)       (146,597)

Equity in losses of limited
    partnerships (Note 2)                                  (138,939)       (201,095)       (358,675)
                                                      --------------    ------------    ------------

Net loss                                            $      (278,660)  $    (340,411)  $    (505,272)
                                                      ==============    ============    ============
Net loss allocated to:
   General partners                                 $        (2,787)  $      (3,404)  $      (5,053)
                                                      ==============    ============    ============
   Limited partners                                 $      (275,873)  $    (337,007)  $    (500,219)
                                                      ==============    ============    ============
Net loss per limited partnership unit               $        (37.03)  $      (45.24)  $      (67.14)
                                                      ==============    ============    ============
Outstanding weighted limited partner units                    7,450           7,450           7,450
                                                      ==============    ============    ============
</TABLE>

                 See accompanying notes to financial statements
                                       18

<PAGE>


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

                    STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

                For The Years Ended March 31, 2003, 2002 and 2001
<TABLE>
<CAPTION>


                                                               General             Limited             Total
                                                               Partners            Partners
                                                            ---------------     ---------------    ---------------
<S>                                                       <C>                <C>                <C>
Partners' equity (deficit) at March 31, 2000              $        (62,059)  $        340,231   $        278,172

Net loss                                                            (5,053)          (500,219)          (505,272)
                                                            ---------------     ---------------    ---------------
Partners' deficit at March 31, 2001                                (67,112)          (159,988)          (227,100)

Net loss                                                            (3,404)          (337,007)          (340,411)
                                                            ---------------     ---------------    ---------------
Partners' deficit at March 31, 2002                                (70,516)          (496,995)          (567,511)

Net loss                                                            (2,787)          (275,873)          (278,660)
                                                            ---------------     ---------------    ---------------
Partners' deficit at March 31, 2002                       $        (73,303)  $       (772,868)  $       (846,171)
                                                            ===============     ===============    ===============
</TABLE>
                 See accompanying notes to financial statements
                                       19

<PAGE>


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

                            STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>



                                                                 For the Years Ended March 31
                                                          -------------------------------------------
                                                             2003            2002            2001
                                                          ------------    ------------    -----------
<S>                                                     <C>             <C>             <C>
Cash flows from operating activities:
   Net loss                                             $    (278,660)  $    (340,411)  $   (505,272)
   Adjustments to reconcile net loss to
     net cash used in operating activities:
     Amortization                                               5,424           4,562         14,902
     Equity in losses of limited partnerships                 138,939         201,095        358,675
     Change in accrued fees and expenses due to
       General Partner and affiliates                         119,695         100,003        123,126
                                                          ------------    ------------    -----------
Net cash used in operating activities                         (14,602)        (34,751)        (8,569)
                                                          ------------    ------------    -----------
Cash flows provided by investing activities:
   Distributions from limited partnerships                      3,166           2,749          4,864
                                                          ------------    ------------    -----------
Net decrease in cash and cash equivalents                     (11,436)        (32,002)        (3,705)

Cash and cash equivalents, beginning of period                 12,170          44,172         47,877
                                                          ------------    ------------    -----------
Cash and cash equivalents, end of period                $         734   $      12,170   $     44,172
                                                          ============    ============    ===========
SUPPLEMENTAL DISCLOSURE OF
     CASH FLOW INFORMATION:
    Taxes paid                                          $         800   $         800   $        800
                                                          ============    ============    ===========
</TABLE>
                 See accompanying notes to financial statements
                                       20

<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                For The Years Ended March 31, 2003, 2002 and 2001


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

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

WNC California Housing Tax Credits,  L.P., a California Limited Partnership (the
"Partnership"),  was formed on September 15, 1988 under the laws of the State of
California.  The  Partnership  was formed to invest  primarily in other  limited
partnerships   (the  "Local  Limited   Partnerships")   which  own  and  operate
multi-family  housing complexes (the "Housing  Complexes") that are eligible for
low income housing tax credits.  The local general  partners (the "Local General
Partners")  of  each  Local  Limited   Partnership  retain   responsibility  for
maintaining, operating and managing the Housing Complex.

WNC & Associates, Inc., a California corporation ("WNC"), and Wilfred N. Cooper,
Sr., are general  partners of the  Partnership  (the  "General  Partners").  The
chairman  and  president  own  substantially  all of the  outstanding  stock  of
Associates.  The  business of the  Partnership  is conducted  primarily  through
Associates, as the Partnership has no employees of its own.

The Partnership shall continue to be in full force and effect until December 31,
2037 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 10,000 units at $1,000
per Unit  ("Units").  The  offering of Units  concluded in October 1990 at which
time 7,450 Units  representing  subscriptions  in the amount of $7,450,000,  had
been accepted.  The General Partners have a 1% interest in operating profits and
losses,  taxable income and losses,  in 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  Partners have received  proceeds
equal to their capital contributions from the remainder,  any additional sale or
refinancing  proceeds  will  be  distributed  99% to the  limited  partners  (in
proportion to their respective investments) and 1% to the General Partners.


                                       21
<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2003, 2002 and 2001


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

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

An investment in the  Partnership  and the  Partnership's  investments  in Local
Limited  Partnerships  and their Housing  Complexes are subject to risks.  These
risks may impact the tax benefits of an investment in the  Partnership,  and the
amount of proceeds  available for distribution to the Limited Partners,  if any,
on liquidation of the Partnership's investments. Some of those risks include the
following:

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

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

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

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


                                       22
<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2003, 2002 and 2001



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

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

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

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

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

The Partnership  accounts for its investments in limited  partnerships using the
equity method of  accounting,  whereby the  Partnership  adjusts its  investment
balance for its share of the Local Limited  Partnerships'  results of operations
and for any  contributions  made and  distributions  received.  The  Partnership
reviews the  carrying  amount of an  individual  investment  in a Local  Limited
Partnership for possible  impairment whenever events or changes in circumstances
indicate that the carrying  amount of such  investment  may not be  recoverable.
Recoverability  of such  investment  is measured by a comparison of the carrying
amount to future  undiscounted  net cash flows  expected to be generated.  If an
investment  is  considered  to be impaired,  the  impairment to be recognized is
measured by the amount by which the carrying  amount of the  investment  exceeds
fair value.  The  accounting  policies  of the Local  Limited  Partnerships  are
generally  consistent  with  those of the  Partnership.  Costs  incurred  by the
Partnership  in  acquiring  the  investments  are  capitalized  as  part  of the
investment and are being amortized over 30 years (see Notes 2 and 3).

Equity in losses of Local  Limited  Partnerships  for the years  ended March 31,
2003, 2002 and 2001 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.  Management's
estimate for the three-month  period is based on either actual unaudited results
reported  by  the  Local  Limited  Partnerships  or  historical  trends  in  the
operations  of the Local  Limited  Partnerships.  Equity  in  losses of  limited
partnerships  allocated to the Partnership  will not be recognized to the extent
that  the  investment  balance  would be  adjusted  below  zero.  As soon as the
investment balance reaches zero,  amortization of the related costs of acquiring
the investment is accelerated to the extent of losses available (see Note 3).


                                       23
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2003, 2002 and 2001



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.  WNC 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 $946,704 at the end of all periods
presented.

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

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

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

The  Partnership   considers  all  highly  liquid   investments  with  remaining
maturities of three months or less when purchased to be cash equivalents.  As of
March 31, 2003 and 2002, the Partnership had no cash equivalents.

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

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

Reporting Comprehensive Income
------------------------------

The  Statement of Financial  Accounting  Standards  ("SFAS") No. 130,  Reporting
Comprehensive  Income  established  standards  for the  reporting and display of
comprehensive  income (loss) and its components in a full set of general-purpose
financial statements. The Partnership had no items of other comprehensive income
for all years presented, as defined by SFAS No. 130.

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

In June 2001, the Financial Accounting Standards Board ("FASB") issued Statement
of  Financial  Accounting  Standards  ("SFAS")  No. 143,  "Accounting  for Asset
Retirement  Obligations",  which requires that the fair value of a liability for
an asset  retirement  obligation  be  recognized  in the  period  in which it is
incurred with the associated asset retirement costs being  capitalized as a part
of the  carrying  amount of the  long-lived  asset.  SFAS No. 143 also  includes
disclosure   requirements   that  provide  a  description  of  asset  retirement
obligations   and   reconciliation   of  changes  in  the  components  of  those
obligations.  The statement is effective for fiscal years  beginning  after June
15, 2002. The Partnership does not expect the adoption of SFAS No. 143 to have a
material  effect  on  the  Partnership's   financial   position  or  results  of
operations.

In August  2001,  the FASB  issued  SFAS No.  144,  "Impairment  or  Disposal of
Long-Lived  Assets," which addresses  accounting and financial reporting for the
impairment or disposal of long-lived assets. This standard was effective for the
Partnership's financial statements beginning January 1, 2002. The implementation
of SFAS No. 144 did not have a material  impact on the  Partnership's  financial
position or results of operations.

                                       24
<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2003, 2002 and 2001


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

In April 2002, the FASB issued SFAS No. 145,  "Rescission of FASB Statements No.
4, 44, and 64,  Amendment of FASB Statement No. 13, and Technical  Corrections."
SFAS No. 145 rescinded three previously  issued  statements and amended SFAS No.
13, "Accounting for Leases." The statement provides reporting standards for debt
extinguishments   and   provides   accounting   standards   for  certain   lease
modifications that have economic effects similar to sale-leaseback transactions.
The statement is effective for certain lease  transactions  occurring  after May
15,  2002 and all other  provisions  of the  statement  shall be  effective  for
financial statements issued on or after May 15, 2002. The implementation of SFAS
No. 145 did not have a material impact on the Partnership's  financial  position
or results of operations.

In June 2002,  the FASB issued SFAS No. 146,  "Accounting  for Costs  Associated
with Exit or  Disposal  Activities,"  which  updates  accounting  and  reporting
standards for personnel and operational restructurings.  The Partnership adopted
SFAS No. 146 for exit,  disposal  or other  restructuring  activities  initiated
after  December 31,  2002.  The adoption of SFAS No. 146 did not have a material
effect on the Partnership's financial position or results of operations.

In November 2002, the FASB issued Interpretation No. 45 ("FIN 45"), "Guarantor's
Accounting  and  Disclosure  Requirements  for  Guarantees,  Including  Indirect
Guarantees  of  Indebtedness  of Others."  The adoption of FIN 45 did not have a
material  impact  on  the  Partnership's   financial   position  or  results  of
operations.

In December  2002,  the FASB issued SFAS No. 148,  "Accounting  for  Stock-Based
Compensation  - Transition  and Disclosure - an Amendment to SFAS No. 123." SFAS
No. 148 provides alternative methods of transition for a voluntary change to the
fair value based method on accounting for stock-based employee compensation. The
implementation  of SFAS No. 148 is not expected to have a material effect on the
Partnership's financial position or results of operations.

In  January   2003,   the  FASB  issued   Interpretation   No.  46  ("FIN  46"),
"Consolidation  of Variable  Interest  Entities." The adoption of FIN 46 did not
have a material  impact on the  Partnership's  financial  position or results of
operations.

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

As of the periods  presented,  the Partnership has acquired limited  partnership
interests in eleven Local  Limited  Partnerships  each of which owns one Housing
Complex  consisting of an aggregate of 433 apartment units. The respective Local
General  Partners  of the  Local  Limited  Partnerships  manage  the  day to day
operations  of the entities.  Significant  Local  Limited  Partnership  business
decisions require approval from the Partnership.  The Partnership,  as a limited
partner,  is  generally  entitled  to 99%,  as  specified  in the Local  Limited
Partnership agreements,  of the operating profits and losses, taxable income and
losses, and tax credits of the Local Limited Partnerships.

The  Partnership's  investments  in Local Limited  Partnerships  as shown in the
balance  sheets  at March 31,  2003 and 2002,  are  approximately  $891,000  and
$571,000,  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.

                                       25
<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2003, 2002 and 2001



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

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  from the Local 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, 2003 and 2002,  the  investment  accounts in certain  Local Limited
Partnerships  have  reached  a zero  balance.  Consequently,  a  portion  of the
Partnership's  estimate  of its share of losses  for the years  ended  March 31,
2003, 2002 and 2001, amounting to approximately $282,000, $276,000 and $116,000,
respectively,  have not been  recognized.  As of March 31, 2002,  the  aggregate
share of net losses not recognized by the Partnership amounted to $832,000.

The following is a summary of the equity method  activity of the  investments in
Local Limited Partnerships for the periods presented:
<TABLE>
<CAPTION>

                                                                           For the Years
                                                                           Ended March 31
                                                             -------------------------------------------
                                                                2003            2002           2001
                                                             ------------    -----------    ------------
<S>                                                        <C>             <C>            <C>
Investments per balance sheet, beginning of period         $     600,843   $    809,249   $   1,187,690
Equity in losses of limited partnerships                        (138,939)      (201,095)       (358,675)
Distributions received                                            (3,166)        (2,749)         (4,864)
Amortization of paid acquisition fees and costs                   (5,424         (4,562)        (14,902)
                                                             ------------    -----------    ------------
Investments per balance sheet, end of period               $     453,314   $    600,843   $     809,249
                                                             ============    ===========    ============
</TABLE>


                                       26
<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2003, 2002 and 2001


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>

                                                                                     2002               2001
                                                                                ---------------    ---------------

<S>                                                                           <C>                <C>
ASSETS

Buildings and improvements (net of accumulated
   depreciation for 2002 and 2001 of $7,961,000 and
   $7,304,000, respectively)                                                  $     13,955,000   $     14,501,000
Land                                                                                 1,484,000          1,484,000
Other assets                                                                         1,556,000          1,513,000
                                                                                ---------------    ---------------

                                                                              $     16,995,000   $     17,498,000
                                                                                ===============    ===============

LIABILITIES

Mortgage loans payable                                                        $     16,621,000   $     16,675,000
Due to related parties                                                                 347,000            347,000
Other liabilities                                                                      213,000            178,000
                                                                                ---------------    ---------------

                                                                                    17,181,000         17,200,000
                                                                                ---------------    ---------------

PARTNERS' CAPITAL

WNC California Housing Tax Credits, L.P.                                              (438,000)            30,000
Other partners                                                                         252,000            268,000
                                                                                ---------------    ---------------

                                                                                      (186,000)           298,000
                                                                                ---------------    ---------------

                                                                              $     16,995,000   $     17,498,000
                                                                                ===============    ===============
</TABLE>

                                       27

<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2003, 2002 and 2001


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

                   COMBINED CONDENSED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>

                                                                 2002                2001               2000
                                                            ---------------     ---------------    ---------------

<S>                                                       <C>                 <C>                <C>
Revenues                                                  $      2,067,000    $      1,936,000   $      1,891,000
                                                            ---------------     ---------------    ---------------

Expenses:
  Operating expenses                                             1,460,000           1,394,000          1,336,000
  Interest expense                                                 386,000             385,000            396,000
  Depreciation and amortization                                    657,000             636,000            625,000
                                                            ---------------     ---------------    ---------------

   Total expenses                                                2,503,000           2,415,000          2,357,000
                                                            ---------------     ---------------    ---------------

Net loss                                                  $       (436,000)   $       (479,000)  $       (466,000)
                                                            ===============     ===============    ===============

Net loss allocable to the Partnership                     $       (432,000)   $       (474,000)  $       (461,000)
                                                            ===============     ===============    ===============

Net loss recorded by the Partnership                      $       (139,000)   $       (201,000)  $       (359,000)
                                                            ===============     ===============    ===============
</TABLE>

Certain Local Limited  Partnerships have incurred  significant  operating losses
and/or have  working  capital  deficiencies.  In the event  these Local  Limited
Partnerships continue to incur significant operating losses,  additional capital
contributions  by the  Partnership  and/or  the Local  General  Partners  may be
required to sustain 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.

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

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

          Acquisition  fees equal to 6% of the gross  proceeds  from the sale of
          Units as  compensation  for services  rendered in connection  with the
          acquisition  of  Local  Limited  Partnerships.  As of  the  end of all
          periods  presented,  the  Partnership  incurred  acquisition  fees  of
          $447,060.  Accumulated  amortization  of these  capitalized  costs was
          $359,107 and $329,564, as of March 31, 2003 and 2002, respectively. Of
          the  accumulated  amortization  recorded on the balance sheet at March
          31,  2003,  $24,119,  $24,375 and  $80,140 of the related  expense was
          reflected as equity in losses of limited partnerships during the years
          ended  March 31,  2003,  2002 and 2001,  respectively,  to reduce  the
          respective  net  acquisition  fee  component of  investments  in local
          limited  partnerships  to zero for those  Local  Limited  Partnerships
          which would otherwise be below a zero balance.

          Reimbursement  of  costs  incurred  by  the  General  Partners  or  an
          affiliate in  connection  with the  acquisition  of the Local  Limited
          Partnerships.  These  reimbursements have not exceeded 3% of the gross
          proceeds. As of the end of all periods presented,  the Partnership had
          incurred  acquisition  costs of $32,018  which have been  included  in
          investments in limited  partnerships and were fully amortized at March
          31, 2003.

          An annual  management fee equal to 0.5% of the invested  assets of the
          Local Limited Partnerships, including the Partnerships allocable share
          of the mortgages, for the life of the Partnership.  Management fees of
          $111,855,  $111,854 and $111,856 were incurred  during the years ended
          March 31, 2003, 2002 and 2001,  respectively,  of which $0, $2,430 and
          $0 was paid  during the years  ended  March 31,  2003,  2002 and 2001,
          respectively.

                                       28
<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2003, 2002 and 2001


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

The accrued fees and expenses due to the General Partners and affiliates consist
of the following as of the dates indicated:
<TABLE>
<CAPTION>

                                                                                                March 31
                                                                                      -----------------------------
                                                                                         2003            2002
                                                                                      ------------   --------------

<S>                                                                                 <C>            <C>
Reimbursement for expenses paid by the General Partners
   or an affiliate                                                                  $       9,690  $         1,850

Asset management fee payable                                                            1,290,529        1,178,674
                                                                                      ------------   --------------

Total                                                                               $   1,300,219  $     1,180,524
                                                                                      ============   ==============
</TABLE>

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

The  Partnership   currently  has  insufficient  working  capital  to  fund  its
operations.  WNC has agreed to continue providing advances  sufficient enough to
fund the operations and working capital  requirements of the Partnership through
June 30, 2004.

NOTE 4 - INCOME TAXES
---------------------

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

NOTE 5 - QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>

The following is a summary of the quarterly operations for the years ended March 31, 2003 and 2002:

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

               2003

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

Operating expenses                             (36,000)            (40,000)           (32,000)            (33,000)

Equity in losses of limited
     partnerships                              (39,000)            (26,000)           (26,000)            (48,000)

Net loss                                       (75,000)            (64,000)           (58,000)            (81,000)

Loss available to limited partners             (74,000)            (64,000)           (57,000)            (81,000)

Loss per limited partner unit                      (10)                 (8)                (8)                (11)
</TABLE>

                                       29
<PAGE>



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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2003, 2002 and 2001


NOTE 5 - QUARTERLY RESULTS OF OPERATIONS (UNAUDITED), continued
<TABLE>
<CAPTION>

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

               2002
               ----

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

Operating expenses                             (33,000)            (41,000)           (33,000)            (35,000)

Equity in losses of limited
     partnerships                              (47,000)            (67,000)           (48,000)            (39,000)

Net loss                                       (80,000)           (108,000)           (81,000)            (72,000)

Loss available to limited partners             (79,000)           (107,000)           (80,000)            (71,000)

Loss per limited partner unit                      (11)                (14)               (11)                (10)
</TABLE>



                                       30
<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

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

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

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

<S>                                   <C>
Wilfred N. Cooper, Sr.                Chairman of the Board
Wilfred N. Cooper, Jr.                President and Chief Executive Officer
David N. Shafer, Esq.                 Executive Vice President and Director of Asset Management
Sylvester P. Garban                   Senior Vice President - Institutional Investments
David C. Turek                        Senior Vice President - Originations
Thomas J. Riha, CPA                   Vice President - Chief Financial Officer
Michael J. Gaber                      Vice President - Acquisitions
Diemmy T. Tran                        Vice President - Portfolio Management
J. Brad Hurlbut                       Director of Syndications
</TABLE>

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

Wilfred N.  Cooper,  Sr.,  age 72, is the founder  and  Chairman of the Board of
Directors of Associates,  a Director of WNC Capital  Corporation,  and a general
partner in some of the  partnerships  previously  sponsored  by  Associates  Mr.
Cooper has been actively involved in the affordable housing industry since 1968.
Previously,  during 1970 and 1971,  he was  founder and a principal  of Creative
Equity  Development  Corporation,  a predecessor of Associates,  and of Creative
Equity Corporation, a real estate investment firm. For 12 years before that, Mr.
Cooper was employed by Rockwell International  Corporation,  last serving as its
manager  of  housing  and urban  developments  where he had  responsibility  for
factory-built  housing  evaluation and project  management in urban planning and
development.  He has testified before committees of the U.S. Senate and the U.S.
House  of  Representatives.  Mr.  Cooper  is a Life  Director  of  the  National
Association of Home Builders and a National  Trustee for NAHB's Political Action
Committee,  and the Chairman of NAHB's Multifamily  Council. He is a Director of
the National Housing Conference and a member of NHC's Executive Committee, and a
founder and Director of the California Housing Consortium.  He is the husband of
Kay Cooper and the father of Wilfred N. Cooper,  Jr. Mr. Cooper  graduated  from
Pomona College in 1956 with a Bachelor of Arts degree.

Wilfred N. Cooper, Jr., age 40, is President, Chief Executive Officer, Secretary
and a Director and a member of the  Acquisition  Committee of  Associates  He is
President of, and a registered principal with, WNC Capital Corporation, and is a
Director of WNC Management,  Inc. He has been involved in real estate investment
and acquisition activities since 1988 when he joined Associates  Previously,  he
served as a Government Affairs Assistant with Honda North America in Washington,
D.C.  Mr.  Cooper is a member of the  Editorial  Advisory  Boards of  Affordable
                                                                      ----------
Housing Finance and LIHC Monthly Report, a Steering Member of the Housing Credit
---------------     -------------------
Group of the National  Association  of Home Builders,  an Alternate  Director of
NAHB,  a member of the  Advisory  Board of the New York  State  Association  for
Affordable  Housing and a member of the Urban Land  Institute.  He is the son of
Wilfred  Cooper,  Sr. and Kay Cooper.  Mr.  Cooper  graduated  from The American
University in 1985 with a Bachelor of Arts degree.

                                       31
<PAGE>

David N. Shafer,  age 50, is Executive Vice President,  a Director,  Director of
Asset Management and a member of the Acquisition Committee of Associates,  and a
Director and Secretary of WNC Management, Inc. Mr. Shafer has been active in the
real estate  industry  since 1984.  Before  joining  Associates  in 1990, he was
engaged as an attorney in the private  practice of law with a specialty  in real
estate and taxation.  Mr.  Shafer is a Director and President of the  California
Council of Affordable Housing, and a member of the State Bar of California.  Mr.
Shafer graduated from the University of California at Santa Barbara in 1978 with
a Bachelor of Arts  degree,  from the New  England  School of Law in 1983 with a
Juris Doctor degree cum laude and from the  University of San Diego in 1986 with
a Master of Law degree in Taxation.

Sylvester  P.  Garban,   age  57,  is  Senior  Vice  President  -  Institutional
Investments of Associates Mr. Garban has been involved in real estate investment
activities since 1978. Before joining Associates in 1989, he served as Executive
Vice President with MRW, Inc., a real estate  development  and management  firm.
Mr. Garban is a member of the National Association of Affordable Housing Lenders
and the  Financial  Planning  Association.  He  graduated  from  Michigan  State
University in 1967 with a Bachelor of Science degree in Business Administration.

David C. Turek,  age 48, is Senior Vice President -  Originations  of Associates
His  experience  with real estate  investments  and finance has continued  since
1976, and he has been employed by Associates since 1996.  Previously,  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 1992 to 1995 he served as Executive Vice
President for Levcor, Inc., a multi-family development company, and from 1990 to
1992 he served as Vice President for the Paragon Group where he was  responsible
for tax credit development activities.  He is a Director of the National Housing
and Rehabilitation  Association,  the Rural Rental Housing Association of Texas,
and the Alabama Council of Affordable  Rental Housing.  Mr. Turek graduated from
Southern Methodist University in 1976 with a Bachelor of Business Administration
degree.

Thomas J. Riha, age 47, is Vice President - Chief Financial Officer and a member
of the  Acquisition  Committee of  Associates  and  President,  Treasurer  and a
Director of WNC Management, Inc. He has been involved in real estate acquisition
and investment  activities  since 1979.  Before joining  Associates in 1994, Mr.
Riha was  employed  by Trust  Realty  Advisor,  a real  estate  acquisition  and
management  company,  last  serving  as Vice  President  -  Operations.  He is a
Director  of the Task  Force on Housing  Credit  Certification  of the  National
Association  of Home Builders.  Mr. Riha  graduated  from the  California  State
University,  Fullerton  in 1977  with a  Bachelor  of Arts  degree  cum laude in
Business  Administration  with a concentration  in Accounting and is a Certified
Public  Accountant  and a member of the American  Institute of Certified  Public
Accountants.

Michael J. Gaber,  age 37, is Vice President - Acquisitions  and a member of the
Acquisition  Committee of Associates  Mr. Gaber has been involved in real estate
acquisition,  valuation  and  investment  activities  since  1989  and has  been
associated  with  Associates  since 1997.  Prior to joining  Associates,  he was
involved in the valuation and  classification of major assets,  restructuring of
debt and analysis of real estate taxes with H.F.  Ahmanson & Company,  parent of
Home  Savings  of  America.  Mr.  Gaber  graduated  from  the  California  State
University,  Fullerton  in 1991 with a Bachelor  of Science  degree in  Business
Administration - Finance.

Diemmy T. Tran, age 37, is Vice  President - Portfolio  Management of Associates
She is responsible for overseeing  portfolio  management and investor  reporting
for  all  WNC  funds,  and  for  monitoring   investment  returns  for  all  WNC
institutional  funds. Ms. Tran has been involved in real estate asset management
and finance  activities for 12 years.  Prior to joining  Associates in 1998, Ms.
Tran served as senior asset manager for a national Tax Credit  sponsor and as an
asset specialist for the Resolution Trust  Corporation where she was responsible
for the disposition  and management of commercial  loan and REO portfolios.  Ms.
Tran is  licensed  as a  California  real  estate  broker.  She  graduated  from
California  State  University,  Northridge  in 1989 with a  Bachelor  of Science
degree in finance and a minor in real estate.

J. Brad  Hurlbut,  age 43, is  Director  of  Syndications  of  Associates  He is
responsible  for the financial  structuring of WNC's  institutional  funds.  Mr.
Hurlbut has 20 years of experience in real estate  investment  and  development.
Prior to  joining  WNC in 2000,  he served  as  corporate  controller  for Great
Western Hotels  Corporation.  Mr. Hurlbut has been an enrolled agent licensed to
practice before the IRS since 1984. He graduated from the University of Redlands
in 1981 with a  Bachelor  of  Science  degree in  business  management  and from
California State  University,  Fullerton in 1985 with a Master of Science degree
in taxation.

                                       32
<PAGE>

Kay L.  Cooper,  age 66, is a Director of  Associates  Mrs.  Cooper was the sole
proprietor of Agate 108, a manufacturer and retailer of home accessory products,
from 1975 until its sale in 1998. She is the wife of Wilfred Cooper, Sr. and the
mother of Wilfred  Cooper,  Jr. Ms.  Cooper  graduated  from the  University  of
Southern California in 1958 with a Bachelor of Science degree.

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

     Inapplicable.

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

     Inapplicable.

(h)  Audit Committee Financial Expert
     --------------------------------

     Neither the Partnership nor Associates has an audit committee.

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 Partnerships 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 $112,000 were incurred
     during  each of the  years  ended  March  31,  2003,  2002  and  2001.  The
     Partnership  paid the General  Partners and or their  affiliates $0, $3,000
     and $0 of those fees during the years ended March 31, 2003,  2002 and 2001,
     respectively.

(b)  Operating  Expense.  The Partnership  reimbursed the General Partner or its
     affiliates for operating  expenses of  approximately  $15,000,  $34,000 and
     $4,000 during the years ended March 31, 2003, 2002 and 2001, respectively.

(c)  Interest  in  Partnership.   The  General   Partners   receive  1%  of  the
     Partnership's allocated Low Income Housing Credits, which approximated $60,
     $1,100 and $3,800 for  Associates  and $7, $120 and $420 for Mr. Cooper for
     the calendar  years ended December 31, 2002,  2001 and 2000,  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
     years ended March 31, 2003, 2002 and 2001.

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

(a)  Securities Authorized for Issuance Under Equity Compensation Plans
     ------------------------------------------------------------------

     Inapplicable.

(b)  Security Ownership of Certain Beneficial Owners
     -----------------------------------------------

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

                                       33
<PAGE>


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

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

(d)  Changes in Control
     ------------------

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

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

Item 13.  Certain Relationships and Related Transactions

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

Item 14. Controls and Procedures

Associates,  on behalf of the  Partnership,  maintains  disclosure  controls and
procedures that are designed to ensure that information required to be disclosed
in our  periodic  reports  filed with the  Securities  and  Exchange  Commission
("SEC") is recorded, processed,  summarized and reported within the time periods
specified  in the  rules  and  forms of the SEC and  that  such  information  is
accumulated  and  communicated  to our management as appropriate to allow timely
decisions  regarding  required  disclosure.  In  designing  and  evaluating  the
disclosure controls and procedures,  our management recognized that any controls
and  procedures,  no matter how well  designed  and  operated,  can provide only
reasonable  assurance of achieving the desired control objectives and management
necessarily  was required to apply its judgment in evaluating  the  cost-benefit
relationship of possible controls and procedures.

Based on their most recent evaluation, which was completed within 90 days of the
filing of this Annual Report on Form 10-K, our Principal  Executive  Officer and
Principal  Financial Officer believe that our disclosure controls and procedures
(as defined in Rules 13a-14 and 15d-14 of the  Securities  Exchange Act of 1934,
as  amended)  are  effective.  There were no  significant  changes  in  internal
controls or in other  factors that could  significantly  affect  these  internal
controls subsequent to the date of their most recent evaluation.



                                       34
<PAGE>


PART IV.

Item 15.  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
       Balance Sheets, March 31, 2003 and 2002
       Statements of Operations for the years ended March 31, 2003, 2002 and
         2001
       Statements of Partners' Equity (Deficit) for the years ended March 31,
         2003, 2002 and 2001
       Statements of Cash Flows for the years ended March 31, 2003, 2002 and
         2001
       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.     NONE.

(c)    Exhibits.
       ---------

3.1    Agreement of Limited  Partnership  dated September 15, 1988;  included as
       Exhibit B to the Prospectus, which was filed as Exhibit 28.1 to Form 10-K
       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  Countryway
       Associates  filed as exhibit 10.1 on Form 10-K dated December 31, 1992 is
       hereby incorporated herein as exhibit 10.1.

10.2   Amended  and  Restated  Agreement  of Limited  Partnership  of Alta Vista
       Investors  filed as exhibit 10.2 on Form 10-K dated  December 31, 1992 is
       hereby incorporated herein as exhibit 10.2.

10.3   Amended and Restated Agreement of Limited Partnership of Yreka Investment
       Group  filed as exhibit  10.3 on Form 10-K  dated  December  31,  1992 is
       hereby incorporated herein as exhibit 10.3.

10.4   Amended and Restated  Agreement of Limited  Partnership of BCA Associates
       filed as exhibit  10.7 on Form 10-K  dated  December  31,  1992 is hereby
       incorporated herein as exhibit 10.4.

10.5   Amended and Restated  Agreement of Limited  Partnership  of HPA Investors
       filed as exhibit  10.8 on Form 10-K  dated  December  31,  1992 is hereby
       incorporated herein as exhibit 10.5.

10.6   Amended and  Restated  Agreement  of Limited  Partnership  of  Cloverdale
       Garden  Apartments filed as exhibit 10.11 on Form 10-K dated December 31,
       1992 is hereby incorporated herein as exhibit 10.6.

10.7   Amended and Restated Agreement of Limited  Partnership of Knights Landing
       Harbor  filed as exhibit  10.13 on Form 10-K dated  December  31, 1992 is
       hereby incorporated herein as exhibit 10.7.

10.8   Amended and Restated  Agreement of Limited  Partnership of Woodlake Manor
       filed as exhibit  10.16 on Form 10-K dated  December  31,  1992 is hereby
       incorporated herein as exhibit 10.8.

10.9   Amended and  Restated  Agreement  of Limited  Partnership  of East Garden
       Apartments filed as exhibit 10.18 on Form 10-K dated December 31, 1992 is
       hereby incorporated herein as exhibit 10.9.


                                       35
<PAGE>

10.10  Amended and Restated  Agreement of Limited  Partnership  of Midland Manor
       Associates filed as exhibit 10.26 on Form 10-K dated December 31, 1992 is
       hereby incorporated herein as exhibit 10.10.

10.11  Amended and  Restated  Agreement  of Limited  Partnership  of San Jacinto
       Associates filed as exhibit 10.27 on Form 10-K dated December 31, 1992 is
       hereby incorporated herein as exhibit 10.11.

99.1   Certification  of the Principal  Executive  Officer pursuant to 18 U.S.C.
       section  1350, as adopted  pursuant to section 906 of the  Sarbanes-Oxley
       Act of 2002. (filed herewith)

99.2   Certification  of the Principal  Financial  Officer pursuant to 18 U.S.C.
       section  1350, as adopted  pursuant to section 906 of the  Sarbanes-Oxley
       Act of 2002. (filed herewith)

99.3   Financial  Statements of Yreka Investment  Group, as of and for the years
       ended  December 31, 2001 and 2000  together  with  Independent  Auditors'
       Report thereon;  filed as exhibit 99.3 on Form 10-k dated March 31, 2002;
       a significant subsidiary of the Partnership.

99.4   Financial  Statements of Yreka Investment  Group, as of and for the years
       ended  December 31, 2002 and 2001  together  with  Independent  Auditors'
       Report  thereon;  a  significant  subsidiary of the  Partnership.  (filed
       herewith)

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


                                       36
<PAGE>


       Report of Independent Certified Public Accountants on Financial Statement
       Schedules






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


The audits  referred to in our report  dated May 2, 2003,  relating to the 2003,
2002 and 2001 financial  statements of WNC California Housing Tax Credits,  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


Costa Mesa, California
May 2, 2003

                                       37
<PAGE>


WNC California Housing Tax Credits, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2003
<TABLE>
<CAPTION>
                                          ------------------------------------------- ----------------------------------------------
                                                  As of March 31, 2003                             As of December 31, 2002
                                          ------------------------------------------- ----------------------------------------------
                                           Partnership's Total      Amount of      Encumbrances of  Property
                                           Investment in Local    Investment Paid  Local Limited    and      Accumulated    Net Book
   Partnership Name      Location          Limited Partnerships      to Date       Partnerships     Equipment Depreciation     Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                      <C>                   <C>             <C>             <C>           <C>            <C>         <C>
Alta Vista
Investors                Orosi,
                         California            $    583,000    $   583,000     $  1,423,000  $  2,124,000   $   935,000 $  1,189,000

BCA Associates           Anderson,
                         California                 514,000        514,000        1,412,000     2,049,000       662,000    1,387,000

Cloverdale Garden        Cloverdale,
Apartments               California                 617,000        617,000        1,625,000     2,163,000       597,000    1,566,000

Countryway               Mendota,
Associates               California                 571,000        571,000        1,463,000     2,175,000       978,000    1,197,000

East Garden              Jamestown,
Apartments               California                 770,000        770,000        2,138,000     2,923,000       799,000    2,124,000

HPA                      Shafter,
Investors                California                 538,000        538,000        1,500,000     2,203,000       710,000    1,493,000

Knights                  Knights
Landing                  Landing,
Harbor                   California                 275,000        275,000          974,000     1,371,000       440,000      931,000

Midland Manor            Mendota,
Associates               California                 383,000        383,000        1,417,000     1,862,000       771,000    1,091,000

San Jacinto              San Jacinto,
Associates               California                 469,000        469,000        1,770,000     2,349,000       542,000    1,807,000

Woodlake                 Woodlake,
Manor                    California                 545,000        545,000        1,442,000     2,137,000       962,000    1,175,000

Yreka Investment         Yreka,
Group                    California                 538,000        538,000        1,457,000     2,044,000       565,000    1,479,000
                                               -------------   ------------    ------------- ------------   ----------- ------------

                                               $  5,803,000    $ 5,803,000     $ 16,621,000  $ 23,400,000   $ 7,961,000 $ 15,439,000
                                               =============   ============    ============= =============  ============ ===========
</TABLE>

                                       38
<PAGE>


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

                                       ---------------------------------------------------------------------------------------------
                                                              For the year ended December 31, 2002
                                       ---------------------------------------------------------------------------------------------
                                                       Net Income          Year Investment                        Estimated Useful
          Partnership Name             Rental Income      (Loss)               Acquired            Status             Life (Years)
------------------------------------------------------------------------------------------------------------------------------------

<S>                                     <C>                <C>                  <C>                <C>                          <C>
Alta Vista Investors                    $   168,000        $ (78,000)           1989               Completed                    27.5

BCA Associates                              163,000          (30,000)           1989               Completed                      40

Cloverdale Garden Apartments                208,000            4,000            1989               Completed                      40

Countryway Associates                       170,000          (72,000)           1989               Completed                    27.5

East Garden Apartments                      249,000          (44,000)           1989               Completed                      40

HPA Investors                               177,000          (38,000)           1989               Completed                      40

Knights Landing Harbor                      125,000          (21,000)           1989               Completed                      40

Midland Manor Associates                    157,000          (58,000)           1990               Completed                    27.5

San Jacinto Associates                      213,000          (14,000)           1990               Completed                      50

Woodlake Manor                              187,000          (52,000)           1989               Completed                      30

Yreka Investment Group                      171,000          (33,000)           1989               Completed                      50
                                        -----------       -----------
                                        $ 1,988,000       $ (436,000)
                                        ===========       ===========
</TABLE>


                                       39
<PAGE>


WNC California Housing Tax Credits, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2002
<TABLE>
<CAPTION>
                                          ------------------------------------------- ----------------------------------------------
                                                  As of March 31, 2002                             As of December 31, 2001
                                          ------------------------------------------- ----------------------------------------------
                                           Partnership's Total      Amount of      Encumbrances of  Property
                                           Investment in Local    Investment Paid  Local Limited    and      Accumulated    Net Book
   Partnership Name      Location        Limited Partnerships        to Date       Partnerships     Equipment Depreciation     Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                      <C>                   <C>             <C>             <C>           <C>            <C>         <C>
Alta Vista
Investors                Orosi,
                         California            $    583,000    $   583,000     $  1,428,000  $ 2,092,000    $  857,000  $  1,235,000

BCA Associates           Anderson,
                         California                 514,000        514,000        1,416,000     2,040,000       611,000    1,429,000

Cloverdale Garden        Cloverdale,
Apartments               California                 617,000        617,000        1,630,000     2,163,000       541,000    1,622,000

Countryway               Mendota,
Associates               California                 571,000        571,000        1,469,000     2,142,000       890,000    1,252,000

East Garden              Jamestown,
Apartments               California                 770,000        770,000        2,144,000     2,903,000       722,000    2,181,000

HPA                      Shafter,
Investors                California                 538,000        538,000        1,504,000     2,203,000       654,000    1,549,000

Knights                  Knights
Landing                  Landing,
Harbor                   California                 275,000        275,000          978,000     1,363,000       406,000      957,000

Midland Manor            Mendota,
Associates               California                 383,000        383,000        1,421,000     1,852,000       704,000    1,148,000

San Jacinto              San Jacinto,
Associates               California                 469,000        469,000        1,776,000     2,349,000       501,000    1,848,000

Woodlake                 Woodlake,
Manor                    California                 545,000        545,000        1,447,000     2,138,000       890,000    1,248,000

Yreka Investment         Yreka,
Group                    California                 538,000        538,000        1,462,000     2,044,000       528,000    1,516,000
                                               -------------   ------------    ------------- ------------   ----------- ------------

                                               $  5,803,000    $ 5,803,000     $ 16,675,000  $ 23,289,000   $ 7,304,000 $ 15,985,000
                                               =============   ============    ============= =============  ============ ===========
</TABLE>

                                       40
<PAGE>


WNC California Housing Tax Credits, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2002
<TABLE>
<CAPTION>

                                       ---------------------------------------------------------------------------------------------
                                                              For the year ended December 31, 2001
                                       ---------------------------------------------------------------------------------------------
                                                       Net Income          Year Investment                        Estimated Useful
          Partnership Name             Rental Income      (Loss)               Acquired            Status             Life (Years)
------------------------------------------------------------------------------------------------------------------------------------

<S>                                     <C>                <C>                  <C>                <C>                          <C>
Alta Vista Investors                    $   158,000        $ (43,000)           1989               Completed                    27.5

BCA Associates                              162,000          (25,000)           1989               Completed                      40

Cloverdale Garden Apartments                190,000          (28,000)           1989               Completed                      40

Countryway Associates                       160,000          (70,000)           1989               Completed                    27.5

East Garden Apartments                      232,000          (34,000)           1989               Completed                      40

HPA Investors                               157,000          (58,000)           1989                Completed                     40

Knights Landing Harbor                      116,000          (25,000)           1989               Completed                      40

Midland Manor Associates                    152,000          (50,000)           1990               Completed                    27.5

San Jacinto Associates                      190,000          (16,000)           1990               Completed                      50

Woodlake Manor                              167,000         (114,000)           1989               Completed                      30

Yreka Investment Group                      166,000          (17,000)           1989               Completed                      50
                                        -----------       -----------
                                        $ 1,850,000       $ (479,000)
                                        ===========       ===========
</TABLE>


                                       41

<PAGE>


WNC California Housing Tax Credits, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2001
<TABLE>
<CAPTION>
                                          ------------------------------------------- ----------------------------------------------
                                                  As of March 31, 2001                             As of December 31, 2000
                                          ------------------------------------------- ----------------------------------------------
                                           Partnership's Total      Amount of      Encumbrances of  Property
                                           Investment in Local    Investment Paid  Local Limited    and      Accumulated    Net Book
   Partnership Name      Location        Limited Partnerships        to Date       Partnerships     Equipment Depreciation     Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                      <C>                   <C>             <C>             <C>           <C>            <C>         <C>
Alta Vista
Investors                Orosi,
                         California            $    583,000    $   583,000     $  1,432,000   $ 2,044,000    $  782,000 $  1,262,000

BCA Associates           Anderson,
                         California                 514,000        514,000        1,421,000     2,025,000       563,000    1,462,000

Cloverdale Garden        Cloverdale,
Apartments               California                 617,000        617,000        1,634,000     2,155,000       484,000    1,671,000

Countryway               Mendota,
Associates               California                 571,000        571,000        1,473,000     2,090,000       814,000    1,276,000

East Garden              Jamestown,
Apartments               California                 770,000        770,000        2,150,000     2,901,000       647,000    2,254,000

HPA                      Shafter,
Investors                California                 538,000        538,000        1,508,000     2,196,000       597,000    1,599,000

Knights                  Knights
Landing                  Landing,
Harbor                   California                 275,000        275,000          981,000     1,351,000       374,000      977,000

Midland Manor            Mendota,
Associates               California                 383,000        383,000        1,425,000     1,824,000       640,000    1,184,000

San Jacinto              San Jacinto,
Associates               California                 469,000        469,000        1,781,000     2,349,000       459,000    1,890,000

Woodlake                 Woodlake,
Manor                    California                 545,000        545,000        1,452,000     2,137,000       817,000    1,320,000

Yreka Investment         Yreka,
Group                    California                 538,000        538,000        1,467,000     2,044,000       491,000    1,553,000
                                               -------------   ------------    ------------- ------------   ----------- ------------

                                               $  5,803,000    $ 5,803,000     $ 16,724,000  $ 23,116,000   $ 6,668,000 $ 16,448,000
                                               =============   ============    ============= =============  ============ ===========
</TABLE>

                                       42
<PAGE>


WNC California Housing Tax Credits, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2001
<TABLE>
<CAPTION>

                                       ---------------------------------------------------------------------------------------------
                                                              For the year ended December 31, 2000
                                       ---------------------------------------------------------------------------------------------
                                                       Net Income          Year Investment                        Estimated Useful
          Partnership Name             Rental Income      (Loss)               Acquired            Status             Life (Years)
------------------------------------------------------------------------------------------------------------------------------------

<S>                                     <C>                <C>                  <C>                <C>                          <C>
Alta Vista Investors                    $   160,000        $ (48,000)           1989               Completed                    27.5

BCA Associates                              145,000          (45,000)           1989               Completed                      40

Cloverdale Garden Apartments                190,000          (20,000)           1989               Completed                      40

Countryway Associates                       151,000          (56,000)           1989               Completed                    27.5

East Garden Apartments                      229,000          (34,000)           1989               Completed                      40

HPA Investors                               155,000          (59,000)           1989               Completed                      40

Knights Landing Harbor                      124,000           (5,000)           1989               Completed                      40

Midland Manor Associates                    143,000          (51,000)           1990               Completed                    27.5

San Jacinto Associates                      164,000          (54,000)           1990               Completed                      50

Woodlake Manor                              183,000          (63,000)           1989               Completed                      30

Yreka Investment Group                      155,000          (31,000)           1989               Completed                      50
                                        -----------       -----------
                                        $ 1,799,000       $ (466,000)
                                        ===========       ===========
</TABLE>


                                       43
<PAGE>


                                   SIGNATURES


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

WNC CALIFORNIA HOUSING TAX CREDITS, L.P.

By:      WNC & Associates, Inc.,
         General Partner

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

Date:  June 24, 2003

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


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

Date:  June 24, 2003


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

Date:  June 24, 2003


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

Date:  June 24, 2003

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

Date:  June 24, 2003



                                       44
<PAGE>


                                 CERTIFICATIONS

     I,   Wilfred N. Cooper, Jr., certify that:

     1.   I have  reviewed  this  annual  report on Form 10-K of WNC  CALIFORNIA
          HOUSING TAX CREDITS, L.P.;

     2.   Based on my knowledge, this annual report does not contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements were made, not misleading with respect to the periods covered by
     this annual report;

     3.   Based on my knowledge,  the financial statements,  and other financial
          information  included in this  annual  report,  fairly  present in all
          material respects the financial  condition,  results of operations and
          cash flows of the registrant as of, and for, the periods  presented in
          this annual report;

     4.   The registrant's  other certifying  officers and I are responsible for
          establishing  and maintaining  disclosure  controls and procedures (as
          defined in Exchange  Act Rules  13a-14 and 15d-14) for the  registrant
          and we have:

          (a)  designed such  disclosure  controls and procedures to ensure that
               material  information  relating to the registrant,  including its
               consolidated  subsidiaries,  is made known to us by others within
               those  entities,  particularly  during  the  period in which this
               annual report is being prepared;

          (b)  evaluated  the  effectiveness  of  the  registrant's   disclosure
               controls and  procedures as of a date within 90 days prior to the
               filing date of this annual report (the "Evaluation Date"); and

          (c)  presented  in  this  annual  report  our  conclusions  about  the
               effectiveness of the disclosure  controls and procedures based on
               our evaluation as of the Evaluation Date;

     5.   The registrant's other certifying officers and I have disclosed, based
          on our most recent  evaluation,  to the registrant's  auditors and the
          audit  committee  of  registrant's  board  of  directors  (or  persons
          performing the equivalent function):

          (a)  all  significant  deficiencies  in the  design  or  operation  of
               internal  controls which could adversely  affect the registrant's
               ability to record,  process,  summarize and report financial data
               and have  identified for the  registrant's  auditors any material
               weaknesses in internal controls; and

          (b)  any fraud,  whether or not material,  that involves management or
               other employees who have a significant  role in the  registrant's
               internal controls; and

     6.   The  registrant's  other  certifying  officers and I have indicated in
          this annual report  whether or not there were  significant  changes in
          internal controls or in other factors that could significantly  affect
          internal   controls   subsequent  to  the  date  of  our  most  recent
          evaluation,   including   any   corrective   actions  with  regard  to
          significant deficiencies and material weaknesses.

     Date:  June 24, 2003


     /s/  Wilfred N. Cooper, Jr.
     ---------------------------

     [Signature]

     Chairman and Chief Executive Officer of WNC & Associates, Inc.

                                       45

<PAGE>


                                 CERTIFICATIONS

     I,   Thomas J. Riha, certify that:

     1.   I have  reviewed  this  annual  report on Form 10-K of WNC  CALIFORNIA
          HOUSING TAX CREDITS, L.P.;

     2.   Based on my knowledge,  this annual report does not contain any untrue
          statement  of a  material  fact  or  omit to  state  a  material  fact
          necessary to make the statements  made, in light of the  circumstances
          under which such  statements were made, not misleading with respect to
          the periods covered by this annual report;

     3.   Based on my knowledge,  the financial statements,  and other financial
          information  included in this  annual  report,  fairly  present in all
          material respects the financial  condition,  results of operations and
          cash flows of the registrant as of, and for, the periods  presented in
          this annual report;

     4.   The registrant's  other certifying  officers and I are responsible for
          establishing  and maintaining  disclosure  controls and procedures (as
          defined in Exchange  Act Rules  13a-14 and 15d-14) for the  registrant
          and we have:

          (a)  designed such  disclosure  controls and procedures to ensure that
               material  information  relating to the registrant,  including its
               consolidated  subsidiaries,  is made known to us by others within
               those  entities,  particularly  during  the  period in which this
               annual report is being prepared;

          (b)  evaluated  the  effectiveness  of  the  registrant's   disclosure
               controls and  procedures as of a date within 90 days prior to the
               filing date of this annual report (the "Evaluation Date"); and

          (c)  presented  in  this  annual  report  our  conclusions  about  the
               effectiveness of the disclosure  controls and procedures based on
               our evaluation as of the Evaluation Date;

     5.   The registrant's other certifying officers and I have disclosed, based
          on our most recent  evaluation,  to the registrant's  auditors and the
          audit  committee  of  registrant's  board  of  directors  (or  persons
          performing the equivalent function):

          (a)  all  significant  deficiencies  in the  design  or  operation  of
               internal  controls which could adversely  affect the registrant's
               ability to record,  process,  summarize and report financial data
               and have  identified for the  registrant's  auditors any material
               weaknesses in internal controls; and

          (b)  any fraud,  whether or not material,  that involves management or
               other employees who have a significant  role in the  registrant's
               internal controls; and

     6.   The  registrant's  other  certifying  officers and I have indicated in
          this annual report  whether or not there were  significant  changes in
          internal controls or in other factors that could significantly  affect
          internal   controls   subsequent  to  the  date  of  our  most  recent
          evaluation,   including   any   corrective   actions  with  regard  to
          significant deficiencies and material weaknesses.

     Date:  June 24, 2003


     /s/  Thomas J. Riha
     -------------------

     [Signature]

     Vice-President - Chief Financial Officer of WNC & Associates, Inc.

                                       46