UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-K

(Mark One)

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

                        For the year ended March 31, 2007

                                       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.
             (Exact name of registrant as specified in its charter)

                  California                          33-0316953
                (State or other jurisdiction of     (I.R.S. Employer
               incorporation or organization)      Identification No.)

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

                                 (714) 662-5565
                               (Telephone number)


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

                                      NONE

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

                      UNITS OF LIMITED PARTNERSHIP INTEREST
                                (Title of Class)

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

Indicate  by  check  mark if the  registrant  is not  required  to file  reports
pursuant to Section 13 or Section 15(d) of the Act.
Yes         No    X
   ---------  ----------

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

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

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

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

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

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. (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 invest  primarily in other
limited  partnership ( the "Local Limited  Partnership")  which own multi-family
housing complexes ("Housing Complexes") that are eligible for Federal low-income
housing tax  credits  ("Low  Income  Housing Tax  Credits").  The local  general
partners (the "Local General Partners") of each Local Limited Partnership retain
responsibility for maintaining, operating and managing the Housing Complex.

The  general   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  of  Associates   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 ("Partnership Units") at a price of
$1,000 per  Partnership  Unit. As of the close of the public offering on October
31, 1990, a total of 7,450  Partnership Units  representing  $7,450,000 had been
sold. Holders of Partnership Units are referred to herein as "Limited Partners".

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
(as defined below) or law.

Description of Business

The  Partnership's  principal  business  objective  is to  provide  its  Limited
Partners with Low Income Housing Credits.  The Partnership's  principal business
consists  of  investing  as a limited  partner or  non-managing  member in Local
Limited  Partnerships  each of which owns and  operates a  multi-family  housing
complex  (the  "Housing  Complexes")  which  qualify for the Low Income  Housing
Credits. In general,  under Section 42 of the Internal Revenue Code, an owner of
low-income  housing  can  receive  the Low Income  Housing  Credit to be used to
reduce Federal taxes otherwise due in each year of a ten-year credit period.  In
general,  under Section 17058 of the  California  Revenue and Taxation  Code, an
owner of low-income housing can receive the California Low Income Housing Credit
to be used against  California  taxes  otherwise due in each year of a four-year
period.  Each  Housing  Complex is subject to a 15 year  compliance  period (the
"Compliance  Period"),  and  under  state law may have to be  maintained  as low
income housing for 30 or more years.

In general,  in order to avoid  recapture  of Low Income  Housing  Credits,  the
Partnership  does not  expect  that it will  dispose of its  interests  in Local
Limited Partnerships ("Local Limited Partnership Interests") or approve the sale
by any Local Limited  Partnership of its Housing Complex prior to the end of the
applicable  Compliance  Period.  Because  of  (i)  the  nature  of  the  Housing
Complexes,  (ii) the  difficulty of predicting  the resale market for low-income
housing and (iii) the ability of  government  lenders to disapprove of transfer,
it is not  possible  at this time to  predict  whether  the  liquidation  of the
Partnership's assets and the disposition of the proceeds,  if any, in accordance
with the  Partnership's  Agreement of Limited  Partnership,  dated September 15,
1988 (the "Partnership Agreement"),  will be accomplished promptly at the end of
the  Compliance  Period.  If a Local Limited  Partnership  is unable to sell its
Housing  Complex,  it is  anticipated  that the local  general  partner  ("Local
General  Partner") will either  continue to operate such Housing Complex or take
such  other  actions as the Local  General  Partner  believes  to be in the best
interest  of the  Local  Limited  Partnership.  Notwithstanding  the  preceding,
circumstances  beyond the  control of the General  Partner or the Local  General
Partners  may occur  during the  Compliance  Period,  which  would  require  the
Partnership  to approve the  disposition  of a Housing  Complex prior to the end
thereof, possibly resulting in recapture of Low Income Housing Credits.

                                       3
<PAGE>
The Partnership originally invested in eleven Local Limited Partnerships, one of
which has been sold or otherwise disposed of as of March 31, 2007. Each of these
Local Limited  Partnerships  owns or did own a Housing Complex that was 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   additional   government   programs   promoting   low-  or
moderate-income housing.

Exit Strategy

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

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

Upon  identifying  those  Housing  Complexes  with the highest  potential  for a
successful sale, refinancing or syndication,  the Partnership expects to proceed
with  efforts to  liquidate  them.  The  objective  is to  maximize  the Limited
Partners'  return  wherever   possible  and,   ultimately,   to  wind  down  the
Partnership.  Local Limited Partnership interests may be disposed of any time by
the  General  Partner  in its  discretion.  While  liquidation  of  the  Housing
Complexes continues to be evaluated,  the dissolution of the Partnership was not
imminent as of March 31, 2007.

During the year ended March 31, 2007 the Partnership sold the Housing Complex of
one Local Limited Partnership,  BCA Associates. BCA Associates had completed its
15-year compliance period.  As of March  31,  2007,  no  additional  Housing
Complexes  had  been  selected  for  disposition.

On June 23, 2006, the Partnership filed a proxy with the Securities and Exchange
Commission for the written consent of the Limited  Partners for the commencement
of the disposition. On July 19, 2006 the Partnership filed additional definitive
proxy material with the SEC extending the deadline for proxy votes from July 21,
2006 to August 30, 2006. As of August 1, 2006, the Partnership  achieved the 51%
approval  necessary for the  disposition.  An affiliate of the General  Partners
executed a Purchase  and Sales  Agreement on August 30, 2006 for the purchase of
the Housing Complex at sales price of $1,820,000. The General Partner of BCA was
paid   approximately   $154,000  in  sales  preparation  and  refinancing  fees,
$1,390,000  paid  down  the  existing  mortgages,  the  remaining  $276,000  was
distributed  to the  Partnership  subsequent  to year end.  In  addition  to the
$276,000  the  Partnership  received  approximately  $26,000  as a result of the
remaining net assets of the Local Limited  Partnership.  The  disposition of the
Housing  Complex  of  BCA  Associates  was  closed  on  October  18,  2006.  The
distribution to the Limited  Partners  amounted to $40.13 per  Partnership  Unit
which was  distributed  in two  payments,  this  first  payment  was paid out on
December  20,  2006 and the final  portion of the  distribution  was paid out on
April 20, 2007. The  distribution to the General  Partners was made on April 20,
2007.

Subsequent to year-end the  Partnership  identified  the Housing  Complex of one
Local Limited Partnership, Woodlake Manor, a California limited partnership, for
disposition.  Woodlake Manor owns the Woodlake Manor  Apartments  (the "Woodlake
Manor Property") located in Woodlake, California. Consistent with the investment
objectives of the Partnership, the Woodlake Manor Property qualified for Federal
Low Income  Housing Tax Credits  under the  Internal  Revenue Code for a 10-year
period.  The  credit  period  has  expired,  and no  further  credits  are being
generated by the Woodlake Manor Property.  The 15-year Federal compliance period
has also expired,  so there would be no credit  recapture upon a transfer of the
Woodlake Manor Property.  All of the remaining Local Limited  Partnerships  have
completed the 15-year compliance period as of March 31, 2007.

On July  13,  2007,  the  Partnership  filed  preliminary  consent  solicitation
materials with the Securities and Exchange Commission  regarding the sale of the
Woodlake Manor  Property.  Definitive  materials were filed with the SEC on July
23, 2007 and  disseminated  to the  Partnership's  Limited  Partners on July 24,
2007.  On September  20, 2007 the  Partnership  filed an 8-K which  notified the
Limited  Partners that the sale of Woodlake  Manor has been  terminated,  due to
Rural Development not approving the appraisal.

                                       4
<PAGE>
Item 1A.  Risk Factors

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

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

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

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

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

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

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

     Sales of Housing  Complexes after 15 years are subject to limitations which
may impact a Local Limited  Partnership's  ability to sell its Housing  Complex.
Each  Local  Limited  Partnership   executes  an  extended  low  income  housing
commitment with the state in which the Housing Complex is located.  The extended
low income housing  commitment states the number of years that the Local Limited
Partnership  and any  subsequent  owners  must rent the  Housing  Complex as low
income housing. Under Federal law, the commitment must be for at least 30 years.
The commitment,  actually agreed to, may be significantly  longer than 30 years.
In prioritizing  applicants for Low Income Housing Tax Credits, most states give
additional  points for commitment  periods in excess of 30 years. On any sale of
the Housing  Complex during the commitment  period,  the purchaser would have to
agree to  continue  to rent the  Housing  Complex as low income  housing for the
duration of the  commitment  period.  This  requirement  reduces  the  potential
market, and possibly the sales price, for the Housing  Complexes.  The sale of a
Housing  Complex  may be subject to other  restrictions.  For  example,  Federal
lenders or subsidizers may have the right to approve or disapprove a purchase of
a Housing Complex.  Accordingly,  there can be no assurance that a Local Limited
Partnership will be able to sell its Housing Complex.  Even if it does so, there
can be no assurance that any  significant  amount of cash will be distributed to
the Limited Partners.  As a result, a material portion of the Low Income Housing
Tax  Credits  may  represent  a return of the money  originally  invested in the
Partnership.

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

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

     The failure to pay mortgage debt could result in a forced sale of a Housing
Complex. Each Local Limited Partnership  leverages the Partnership's  investment
therein by incurring mortgage debt. A Local Limited Partnership's revenues could
be less than its debt payments and taxes and other  operating  costs. If so, the

                                       5
<PAGE>
Local  Limited  Partnership  would have to use working  capital  reserves,  seek
additional  funds, or suffer a forced sale of its Housing  Complex,  which could
include a  foreclosure.  The same results  could occur if  government  subsidies
ceased. Foreclosure would result in a loss of the Partnership's capital invested
in the Housing  Complex.  Foreclosure  could also  result in a recapture  of Low
Income Housing Tax Credits, and a loss of Low Income Housing Tax Credits for the
year  in  which   the   foreclosure   occurs.   If  the   Housing   Complex   is
highly-leveraged,  a relatively  slight  decrease in the rental  revenues  could
adversely affect the Local Limited Partnership's ability to pay its debt service
requirements.  Mortgage  debt may be  repayable in a  self-amortizing  series of
equal  installments  or with a large balloon  final  payment.  Balloon  payments
maturing  prior to the end of the  anticipated  holding  period for the  Housing
Complex create the risk of a forced sale if the debt cannot be refinanced. There
can be no assurance that additional funds will be available to any Local Limited
Partnership if needed on acceptable terms or at all.

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

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

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

                                       6
<PAGE>
If that  happens,  a Limited  Partner's  return may be derived only from the Low
Income Housing Tax Credits and tax losses.

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

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

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

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

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

c.   Tax risks other than those relating to tax credits

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

                                       7
<PAGE>
          No  opinion of counsel  as to  certain  matters.  No legal  opinion is
          obtained regarding matters:

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

The more significant of these matters include:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

If any allocations were successfully  challenged,  a greater share of the income
or gain or a lesser share of the losses or tax credits might be allocated to the
Limited  Partners.  This  would  increase  the tax  liability  or reduce the tax
benefits to the Limited Partners.
                                       9
<PAGE>
     Tax  liabilities  could  arise in later years of the  Partnership.  After a
period  of  years  following  commencement  of  operations  by a  Local  Limited
Partnership,  the Local Limited  Partnership  may generate  profits  rather than
losses.  A Limited Partner would have tax liability on his share of such profits
unless he could offset the income with:

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

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

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

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

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

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

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

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

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

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

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

     d.   Risks related to the Partnership and the Partnership Agreement

     The  Partnership may be unable to timely provide  financial  reports to the
Limited   Partners  which  would  adversely  affect  their  ability  to  monitor
Partnership  operations.  Each  Local  General  Partner  is  required  to retain
independent  public  accountants  and to  report  financial  information  to the
Partnership  in a timely  manner.  There cannot be any assurance  that the Local
General Partners will satisfy these  obligations.  If not, the Partnership would
be unable to provide to the Limited  Partners in a timely  manner its  financial
statements and other reports. That would impact the Limited Partners' ability to

                                       10
<PAGE>
monitor  Partnership  operations.  The Partnership's  failure to meet its filing
requirements  under  the  Securities  Exchange  Act of  1934  could  reduce  the
liquidity  for  the  Partnership  Units  due to  the  unavailability  of  public
information concerning the Partnership. The failure to file could also result in
sanctions imposed by the SEC. Any defense mounted by the Partnership in the face
of such sanctions  could entail legal and other fees,  which would diminish cash
reserves.

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

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

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

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

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

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

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

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

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

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

Item 1B.  Unresolved Staff Comments

Not Applicable

Item 2. Properties

Through its investments in Local Limited  Partnerships,  the  Partnership  holds
indirect  ownership  interests in the Housing  Complexes.  The  following  table
reflects the status of the eleven  Housing  Complexes as of the dates or for the
periods indicated:
                                       12
<PAGE>
<TABLE>
<CAPTION>
                                                   -------------------------------- ------------------------------------------------
                                                          As of March 31, 2007                  As of December 31, 2006
                                                   -------------------------------- ------------------------------------------------
                                                                                                          Estimated     Mortgage
                                                   Partnership's Total   Amount of                       Aggregate Low Balances of
                                        General       Investment in      Investment                     Income Housing    Local
Local Limited                            Name         LocalLimited         Paid        Number               Credits      Limited
Partnership Name      Location          Partner       Partnerships       to Date      of Units   Occupancy    (1)      Partnership
------------------------------------------------------------------------------------------------------------------------------------
<S>              <C>            <C>                      <C>            <C>          <C>    <C>        <C>            <C>
Alta Vista           Orosi,        Philip R. Hammond, Jr.  $ 583,000     $ 583,000       42       100%   $ 1,274,000      $1,399,000
Investors            California    and Diane M. Hammond

BCA Associates (2)   Anderson,     Douglas W. Young                -             -        -          -             -               -
                     California

Cloverdale           Cloverdale,   David J. Michael, Patrick 617,000       617,000       34         97%    1,387,000       1,600,000
Garden               California    R. Sabelhaus and
Apartments                         Professional Apartment
                                   Management

Countryway           Mendota,      Philip R. Hammond, Jr.    571,000       571,000       41         88%    1,162,000       1,438,000
Associates           California    and Diane M. Hammond

East Garden          Jamestown,    David J. Michael and      770,000       770,000       51         98%    1,772,000       2,106,000
Apartments           California    Professional Apartment
                                   Management

HPA                  Shafter,      Douglas W. Young          538,000       538,000       42         90%    1,223,000       1,477,000
                     California

Knights              Knights       Douglas W. Young and      275,000       275,000       25        100%      446,000         977,000
Landing              Landing,      Diane L. Young
Harbor               California
</TABLE>
                                       13
<PAGE>
<TABLE>
<CAPTION>
                                                   --------------------------------   ----------------------------------------------
                                                         As of March 31, 2007                  As of December 31, 2006
                                                   --------------------------------   ----------------------------------------------
                                                                                                          Estimated     Mortgage
                                                   Partnership's Total   Amount of                       Aggregate Low Balances of
                                        General       Investment in      Investment                     Income Housing    Local
Local Limited                            Name         LocalLimited         Paid        Number               Credits      Limited
Partnership Name      Location          Partner       Partnerships       to Date      of Units   Occupancy    (1)      Partnership
------------------------------------------------------------------------------------------------------------------------------------
<S>             <C>            <C>                    <C>           <C>            <C>        <C>        <C>           <C>
Midland Manor       Mendota,        Philip R. Hammond,  383,000          383,000         40         88%      668,000       1,396,000
Associates          California      Jr. and Diane
                                    M. Hammond

San Jacinto         San Jacinto,    Richard Parasol and 469,000          469,000         38         97%      830,000       1,742,000
Associates          California      Richard A. Gullota

Woodlake Manor      Woodlake,       Thomas G. Larson,   545,000          545,000         44         93%    1,146,000       1,417,000
                    California      William H. Larson
                                    and Raymond L.
                                    Tetzlaff

Yreka Investment    Yreka,          Ronald D.           538,000          538,000         36         94%    1,174,000       1,431,000
Group               California      Bettencourt     -----------      -----------       ----         ---  -----------     -----------
                                                    $ 5,289,000      $ 5,289,000        393         95%  $12,187,000     $14,983,000
                                                    ===========      ===========       ====         ===  ===========     ===========
</TABLE>
(1) Represents  aggregate total  anticipated Low Income Housing Credits received
over the 10 year credit period if the Housing  complexes are retained and rented
and in compliance with credit rules for the 15-year  Compliance  Period.  All of
the  anticipated  Low Income  Housing  Credits have been received from the Local
Limited  Partnerships.  Accordingly,  the  Partnership  does  not  anticipate  a
significant  amount Low Income  Housing  Credits being  allocated to the Limited
Partners in the future.

(2)  Sold on October 18, 2006, as of March 31, 2007 the Partnership has not been
     dissolved.

                                       14
<PAGE>
<TABLE>
<CAPTION>
                                               -------------------------------------------------------------------------------------
                                                                       For the Year Ended December 31, 2006
                                               -------------------------------------------------------------------------------------
                                                                                                                       Low Income
                                                                                                                     Housing Credits
Local Limited                                                                                                         Allocated to
Partnership Name                                                Rental Income                 Net Income (Loss)       Partnership
------------------------------------------------------------------------------------------------------------------------------------
<S>                                           <C>                                 <C>                                    <C>
Alta Vista Investors                                              $228,000                           $(41,000)                   99%

BCA Associates                                                     165,000                            532,000 *                  99%

Cloverdale Garden Apartments                                       246,000                            (43,000)                   99%

Countryway Associates                                              161,000                           (117,000)                   99%

East Garden Apartments                                             305,000                            (26,000)                   99%

HPA Investors                                                      225,000                            (31,000)                   99%

Knights Landing Harbor                                             171,000                             10,000                    99%

Midland Manor Associates                                           205,000                            (46,000)                   99%

San Jacinto Associates                                             291,000                              2,000                    99%

Woodlake Manor                                                     282,000                            (12,000)                   99%

Yreka Investment Group                                             241,000                              1,000                    99%
                                                            --------------                     ---------------
           Total                                                $2,520,000                           $229,000
                                                            ==============                     ===============
</TABLE>
* This amount included the gain on disposal of the Housing Complex.

                                       15
<PAGE>
Item 3. Legal Proceedings

NONE

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

NONE

PART II.

Item 5. Market for Registrant's  Common Equity,  Related Stockholder Matters and
        Issuer Purchases of Equity Securities

Item 5a.

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

(b)  At March 31,  2007,  there were 650 Limited  Partners  and 0  assignees  of
     Partnership Units who were not admitted as Limited Partners.

(c)  The Partnership was not designed to provide cash  distributions  to Limited
     Partners in  circumstances  other than  refinancing  or  disposition of its
     investments in Local Limited Partnerships.  Any such distributions would be
     made in accordance with the terms of the Partnership Agreement.

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

(e)  No unregistered  securities  were sold by the  Partnership  during the year
     ended March 31, 2007.

Item 5b. Use of Proceeds

NOT APPLICABLE

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

NONE
                                       16
<PAGE>
Item 6.  Selected Financial Data

Selected balance sheet information for the Partnership is as follows:
<TABLE>
<CAPTION>
                                                                      For the Years Ending March 31,
                                            ----------------------------------------------------------------------------------------
                                                 2007              2006            2005          2004                    2003
                                            --------------    -------------    -----------   ------------       --------------------
<S>                                      <C>               <C>           <C>              <C>                 <C>
ASSETS
Cash                                      $        38,742   $      26,987  $       19,125  $       7,209       $                 734
Due from the General Partner or an
 affiliate
 (Note 3)                                           2,773              -                -              -                           -
Due from Local Limited Partnership                 24,700              -                -              -                           -
Investments in Local Limited
  Partnerships, net                                     -              -                -              -                     453,314
                                            -------------    ------------   -------------   ------------        --------------------
                                          $        66,215   $     26,987   $       19,125  $       7,209       $             454,048
                                            =============    ============   =============   ============        ====================
LIABILITIES
Accrued fees and expenses due to General
  Partner and affiliates
                                          $     1,858,649   $  1,709,640  $     1,568,394  $   1,432,637       $          1,300,219
Accounts Payable                                    1,000              -                -              -                          -

   PARTNERS' DEFICIT                           (1,793,434)    (1,682,653)      (1,549,269)    (1,425,428)                  (846,171)
                                            -------------    ------------   -------------   ------------        --------------------
                                          $        66,215   $     26,987  $        19,125  $       7,209       $            454,048
                                            =============    ===========  ===============  =============        ====================
</TABLE>
Selected  results  of  operations,  cash  flows  and other  information  for the
Partnership are as follows:
<TABLE>
<CAPTION>
                                                                             For the Years Ended
                                                                                  March 31,
                                           -----------------------------------------------------------------------------------------
                                                 2007               2006                2005               2004              2003
                                           --------------      --------------      -------------      ---------------    -----------
<S>                                     <C>                 <C>                  <C>                <C>               <C>
Loss  from operations                    $       (138,411)   $       (133,498)     $   (123,870)     $     (604,285)   $   (139,721)
(Note 1)
Equity in income (losses) from Local
  Limited Partnerships                                  -                   -                 -              25,028        (138,939)
Gain on sale of Local Limited
Partnership                                       302,020                   -                 -                   -               -

Interest income                                       157                 114                29                   -               -
                                           ----------------       ------------      ------------     ---------------    ------------
  Net income (loss)                      $        163,766     $      (133,384)     $   (123,841)     $     (579,257)   $   (278,660)
                                           =================      ============      ============      ==============    ============
Net income (loss) allocated to:

   General Partners                      $          1,638     $        (1,334)     $     (1,238)     $       (5,793)   $     (2,787)
                                           =================      ============    ==============     ===============   =============
                                         $        163,766     $      (132,050)     $   (122,603)     $     (573,464)   $   (275,873)
   Limited Partners                        =================      ============      ============     ==============     ============

Net income (loss) per Partnership        $          21.76     $        (17.72)     $     (16.46)     $       (76.98)   $     (37.03)
  Unit                                     =================      ============      ============     ===============    ============

Outstanding weighted Partner Units                  7,450               7,450             7,450               7,450           7,450
                                           =================      ============      ============      ==============    ============
</TABLE>
Note 1-Loss from  operations for the year ended March 31, 2004 includes a charge
for impairment  losses on investment in Local Limited  Partnerships of $470,093.

                                       17
<PAGE>
<TABLE>
<CAPTION>
                                                                       For the Years Ended March 31,
                                            ----------------------------------------------------------------------------------------
                                                  2007                 2006                2005               2004           2003
                                            ------------------    ----------------     --------------     --------------   ---------
<S>                                     <C>                    <C>                <C>                 <C>                <C>
Net cash provided by
 (used in):
   Operating activities                   $             8,982   $          7,862    $        11,916    $         3,659    $ (14,602)
   Investing activities                               277,320                  -                  -              2,816        3,166
   Financing activities                              (274,547)                 -                  -                  -            -
                                            ------------------    ----------------     --------------     --------------    --------
Net change in cash and cash equivalents                11,755              7,862             11,916              6,475      (11,436)

Cash, beginning of period                              26,987             19,125              7,209                734       12,170
                                            ------------------    ----------------     --------------     --------------     -------
Cash, end of period                       $            38,742   $         26,987    $        19,125    $         7,209    $     734
                                            ==================    ================     ==============     ==============     =======
</TABLE>
Low Income Housing  Credits per  Partnership  Unit were as follows for the years
ended December 31:
<TABLE>
<CAPTION>
                                                   2006                2005                2004               2003            2002
                                              ----------------    ----------------     --------------     -------------   ----------
<S>                                        <C>                 <C>                  <C>               <C>               <C>
Federal                                     $               -   $               -    $             1    $            1   $        1

State                                                       -                   -                  -                 -            -
                                              ----------------    ----------------     --------------     -------------   ----------
Total                                       $               -   $               -    $             1    $            1   $        1
                                              ================    ================     ==============     =============   ==========
</TABLE>
Item 7. Management's  Discussion and Analysis of Financial Condition and Results
        of Operations

Forward Looking Statements

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

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

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

Critical Accounting Policies and Certain Risks and Uncertainties

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

                                       18
<PAGE>
Use of Estimates

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

Method of Accounting for Investments in Local Limited Partnerships

The Partnership accounts for its investments in Local Limited Partnerships using
the equity method of accounting,  whereby the Partnership adjusts its investment
balance for its share of the Local Limited  Partnerships'  results of operations
and for  any  contributions  made 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 the estimated value derived by
management,  generally  consisting of the sum of the remaining future Low Income
Housing  Credits  estimated to be allocable to the Partnership and the estimated
residual  value  to  the  Partnership.  If an  investment  is  considered  to be
impaired,  the  Partnership  reduces the carrying value of its investment in any
such Local Limited  Partnership.  The  accounting  policies of the Local Limited
Partnerships,  generally,  are  expected  to be  consistent  with  those  of the
Partnership.  Costs incurred by the Partnership in acquiring the investments are
capitalized  as part of the investment  account and are being  amortized over 30
years.

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

Distributions  received from the Local Limited Partnerships are accounted for as
a  reduction  of  the  investment  balance.  Distributions  received  after  the
investment has reached zero are recognized as distribution  income. If the Local
Limited  Partnerships  report net income in future years,  the Partnership  will
resume applying the equity method only after its share of such net income equals
the share of net losses not  recognized  during the  period(s) the equity method
was suspended.

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

Income Taxes

No provision for income taxes has been  recorded in the financial  statements as
any  liabilities  and/or  benefits  for income taxes flow to the partners of the

                                       19
<PAGE>
Partnership and are their obligations and/or benefits.  For income tax purposes,
the Partnership reports on a calendar year basis.

Certain Risks and Uncertainties

See Item 1A for a discussion of risks regarding the Partnerships

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

To date, certain Local Limited Partnerships have incurred significant  operating
losses and have working capital  deficiencies.  In the event these Local Limited
Partnerships continue to incur significant operating losses,  additional capital
contributions  by the  Partnership  and/or  the  Local  General  Partner  may be
required  to sustain  the  operations  of such Local  Limited  Partnerships.  If
additional  capital  contributions  are not made  when  they are  required,  the
Partnership's  investment in certain of such Local Limited Partnerships could be
lost,  and the loss and recapture of the related Low Income  Housing Tax Credits
could occur.

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

Financial Condition

The  Partnership's  assets at March  31,  2007  consisted  of  $39,000  in cash.
Liabilities at March 31, 2007 primarily consisted of $1,000 of accounts payable,
$1,738,000 of accrued annual  management  fees and $121,000 in advance  payables
due to the General Partners. (See "Future Contractual Cash Obligations' below).

Results of Operations

Year  Ended  March  31,  2007   Compared  to  Year  Ended  March  31,  2006  The
Partnership's  net  income  for the year  ended  March  31,  2007 was  $164,000,
reflecting an increase of $297,000  from the net loss of $(133,000)  experienced
for the year ended March 31, 2006.  The increase in net income is primarily  due
to a $302,000 gain on disposal of one Housing Complex,  offset by an increase of
$(5,000)  in loss from  operation  which was due to an  increase  of $(8,000) in
legal and  accounting  expenses  and an increase of $(1,000) in other  expenses,
offset by an increase of $3,000 in distribution income and an increase of $1,000
in reporting fees.

Year  Ended  March  31,  2006   Compared  to  Year  Ended  March  31,  2005  The
Partnership's  net  loss for the  year  ended  March  31,  2006 was  $(133,000),
reflecting an increase of $(9,000)  from the net loss of $(124,000)  experienced
for the year ended March 31, 2005.  The increase in net loss is primarily due to
a $(6,000) increase of legal and accounting expense from $20,000 incurred in the
year ended  March 31,  2005  compared  to a $26,000 for the year ended March 31,
2006,  along with a  $(6,000)  decrease  in  distribution  income,  offset by an
increase  in  reporting  fees  of  $2,000,  along  with  a  $1,000  decrease  in
miscellaneous expense.

Liquidity and Capital Resources

Year Ended March 31, 2007  Compared to Year Ended March 31, 2006 Net increase in
cash during the year ended March 31, 2007 was $12,000  compared to net  increase
in cash for the year ended  March 31, 2006 of $8,000.  The net cash  increase of
$4,000 is due to the $1,000 increase in accounts payable, the $8,000 increase in
accrued  fees and expense due to General  Partner  and  affiliates  offset by an
increase in net loss before gain on sale of operating  partnership  of $(5,000).
There was a $277,000  increase in cash provided by investing  activities  due to
disposal the Housing  Complex,  of that amount  $274,000 was  distributed to the
Limited Partners of the Partnership.  There was also,  approximately  $3,000 due
from an affiliate in relation to the cash  received from the disposal of the one
Housing Complex,  which was  subsequently  paid as a distribution to the General
Partners.
                                       20
<PAGE>
Year Ended March 31, 2006  Compared to Year Ended March 31, 2005 Net increase in
cash during the year ended March 31, 2006 was $8,000 compared to net increase in
cash for the year ended March 31, 2005 of $12,000.  The net cash decrease is due
to an increase in accrued expenses due to the General Partner and affiliates and
an increase in distribution income from Local Limited Partnerships.

Accrued  payables,  which consist primarily of related party management fees due
to the General  Partner,  increased by  approximately  $149,000,  $112,000,  and
$112,000 for the years ended March 31, 2007,  2006 and 2005,  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 October 31, 2008.

Future Contractual Cash Obligations

The  following  table  summarizes  the  Partnership's  future  contractual  cash
obligations as of March 31, 2007:
<TABLE>
<CAPTION>
                                               2008        2009         2010        2011        2012      Thereafter         Total
                                            ----------  ----------   ---------   ---------   ---------  --------------     ---------
<S>                                      <C>           <C>        <C>         <C>         <C>    <C>    <C>           <C>
Asset Management Fees (1)                 $  1,849,808  $ 111,855  $  111,855  $  111,855  $   111,855  $  2,796,375    $ 5,093,603
Capital Contributions Payable to Local
   Limited Partnerships                              -          -           -           -            -             -              -
                                            ----------   --------   ---------   ---------   ----------   -----------     -----------
Total contractual cash obligations        $  1,849,808  $ 111,855  $  111,855  $  111,855  $   111,855  $  2,796,375    $ 5,093,603
                                            ==========   ========   =========   =========   ==========   ===========     ===========
</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,  2007 have  been  included  in the 2008  column.  The  General
     Partner does not anticipate that these fees will be paid until such time as
     capital reserves are in excess of the aggregate of the existing contractual
     obligations  and the  anticipated  future  foreseeable  obligations  of the
     Partnership.

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

Off-Balance Sheet Arrangements

The Partnerships has no off-balance sheet arrangements.

Exit Strategy

See Item 1 for information in this regard.

Item 7A.  Quantitative and Qualitative Disclosures about Market Risk

NOT APPLICABLE

Item 8.  Financial Statements and Supplementary Data

                                       21
<PAGE>

                  INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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, 2007 and 2006,  and the related  statements of  operations,  partners'
deficit and cash flows for the  periods  ended  March 31,  2007,  2006 and 2005.
These  financial   statements  are  the   responsibility  of  the  Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audits.

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

     In our opinion,  the financial statements referred to above present fairly,
in all material  respects,  the financial position of WNC California Housing Tax
Credits,  L.P. as of March 31, 2007 and 2006,  and the results of its operations
and its cash  flows  for the  periods  ended  March 31,  2007,  2006 and 2005 in
conformity with accounting principles generally accepted in the United States of
America.

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




/s/ Reznick Group, P.C.
-----------------------

Bethesda, Maryland
November 1, 2007

                                       22
<PAGE>

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

                                 BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                                                          March 31
                                                                                          ----------------------------------------
                                                                                                 2007                  2006
                                                                                          ------------------    ------------------
ASSETS
<S>                                                                                     <C>                   <C>
Cash and cash equivalents                                                                $            38,742   $             26,987
Due from the General Partner or an affiliate (Note 3)                                                  2,773                      -
Due from Local Limited Partnership                                                                    24,700                      -
Investments in Local Limited Partnerships, net (Notes 2 and 3)                                             -                      -
                                                                                          ------------------      ------------------
    Total assets                                                                         $            66,215   $             26,987
                                                                                          ==================      ==================
LIABILITIES AND PARTNERS' DEFICIT

Liabilities:
   Accrued fees and expenses due to General Partner and affiliates (Note 3)              $        1,858,649    $          1,709,640
   Accounts Payable                                                                                   1,000                       -
                                                                                          ------------------     ------------------
     Total liabilities                                                                            1,859,649               1,709,640

Partners' deficit:
    General Partners                                                                                (80,030)                (81,668)
    Limited Partners (10,000 Partnership Units authorized; 7,450 Partnership Units
     issued and outstanding)                                                                     (1,713,404)             (1,600,985)
                                                                                          ------------------      ------------------
      Total partners' deficit                                                                    (1,793,434)             (1,682,653)
                                                                                          ------------------      ------------------
             Total liabilities and partners' deficit                                     $           66,215    $             26,987
                                                                                          ==================      ==================
</TABLE>
                 See accompanying notes to financial statements

                                       23
<PAGE>
                    WNC CALIFORNIA HOUSING TAX CREDITS, L.P.
                       (A California Limited Partnership)

                            STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
                                                                                       For the Years Ended March 31,
                                                                        ------------------------------------------------------------
                                                                              2007                   2006                 2005
                                                                        ------------------     -----------------     ---------------
<S>                                                                  <C>                    <C>                   <C>
Distribution income                                                   $             8,832    $            5,799    $         11,886
Reporting fees                                                                      2,766                 1,937                   -
                                                                        ------------------     -----------------     ---------------
Total income                                                                       11,598                 7,736              11,886
                                                                        ------------------     -----------------     ---------------
Operating expenses:
   Asset management fees (Note 3)                                                 111,856               111,856             111,855
   Legal and accounting                                                            34,305                26,236              20,025
   Other                                                                            3,848                 3,142               3,876
                                                                        ------------------     -----------------     ---------------
    Total operating expenses                                                      150,009               141,234             135,756
                                                                        ------------------     -----------------     ---------------
Loss from operations                                                             (138,411)             (133,498)           (123,870)

Equity in losses of Local Limited
    Partnerships (Note 2)                                                               -                     -                   -

Gain on sale of Local Limited Partnership                                         302,020                     -                   -

Interest income                                                                       157                   114                  29
                                                                        ------------------     -----------------     ---------------
Net income (loss)                                                     $           163,766    $         (133,384)   $       (123,841)
                                                                        ==================     =================     ===============
Net income (loss) allocated to:
   General Partners                                                   $             1,638    $           (1,334)   $         (1,238)
                                                                        ==================     =================     ===============
   Limited Partners                                                   $           162,128    $         (132,050)   $       (122,603)
                                                                        ==================     =================     ===============
Net  income (loss) per Partnership Unit                               $             21.76    $           (17.72)   $         (16.46)
                                                                        ==================     =================     ===============
Outstanding weighted Partnership Units                                              7,450                 7,450               7,450
                                                                        ==================     =================     ===============
</TABLE>
                 See accompanying notes to financial statements

                                       24
<PAGE>
                    WNC CALIFORNIA HOUSING TAX CREDITS, L.P.
                       (A California Limited Partnership)

                         STATEMENTS OF PARTNERS' DEFICIT

               For The Years Ended March 31, 2007, 2006, and 2005
<TABLE>
<CAPTION>
                                                             General Partners          Limited Partners               Total
                                                           --------------------      --------------------     --------------------
<S>                                                     <C>                      <C>                         <C>
Partners' deficit at March 31, 2004                      $             (79,096)   $          (1,346,332)      $       (1,425,428)

Net loss                                                                (1,238)                (122,603)                (123,841)
                                                           --------------------      --------------------     --------------------
Partners' deficit at March 31, 2005                                    (80,334)              (1,468,935)              (1,549,269)

Net loss                                                                (1,334)                (132,050)                (133,384)
                                                           --------------------      --------------------     --------------------
Partners' deficit at March 31, 2006                      $             (81,668)   $          (1,600,985)      $       (1,682,653)

Net Income                                                               1,638                  162,128                  163,766

Distributions                                                                -                 (274,547)                (274,547)
                                                           --------------------      --------------------     --------------------
Partners' deficit at March 31, 2007                      $             (80,030)   $          (1,713,404)      $       (1,793,434)
                                                           ====================      ====================     ====================
</TABLE>

                 See accompanying notes to financial statements

                                       25
<PAGE>
                    WNC CALIFORNIA HOUSING TAX CREDITS, L.P.
                       (A California Limited Partnership)

                            STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                                          For the Years Ended March 31,
                                                                            --------------------------------------------------------
                                                                                  2007                 2006                 2005
                                                                            -----------------     ----------------      ------------
<S>                                                                      <C>                   <C>                 <C>
Cash flows from operating activities:
  Net income (loss)                                                       $          163,766    $        (133,384)  $      (123,841)
  Adjustments to reconcile net income (loss) to
  net cash provided in operating activities:
     Change in due from an affiliate                                                  (2,773)                   -                 -
     Change in accrued fees and expenses due to
       General Partner and affiliates                                                149,009              141,246           135,757
     Change in accounts payable                                                        1,000                    -                 -
     Gain on sale of investment in Local Limited
        Partnership                                                                (302,020)                   -                 -
                                                                            -----------------     ----------------      ------------
Net cash provided by (used in) operating activities                                    8,982                7,862            11,916
                                                                            -----------------     ----------------      ------------
Cash flows provided by investing activities:
   Proceeds from sale of investment in Local Limited
        Partnership                                                                  277,320                    -                 -
                                                                            -----------------     ----------------      ------------
             Net cash provided by investing activities                               277,320                    -                 -
                                                                            -----------------     ----------------      ------------
Cash flows from financing activities:
   Distributions to Limited Partners                                                (274,547)                   -                 -
                                                                            -----------------     ----------------      ------------
            Net cash used in financing activities                                   (274,547)                   -                 -
                                                                            -----------------     ----------------      ------------
Net increase in cash and cash equivalents                                             11,755                7,862            11,916

Cash and cash equivalents, beginning of period                                        26,987               19,125             7,209
                                                                            -----------------     ----------------      ------------
Cash and cash equivalents, end of period                                  $           38,742    $          26,987     $      19,125
                                                                            =================     ================      ============
SUPPLEMENTAL DISCLOSURE OF
    CASH FLOW INFORMATION:
    Taxes paid                                                            $              800    $             800     $         800
                                                                            =================     ================      ============
</TABLE>
                 See accompanying notes to financial statements

                                       26
<PAGE>
                    WNC CALIFORNIA HOUSING TAX CREDITS, L.P.
                       (A California Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS

               For the Years Ended March 31, 2007, 2006, and 2005

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 ("Associates"),  and Wilfred N.
Cooper, Sr., are general partners of the Partnership (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 have no employees of
their 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 of Limited
Partnership interest  ("Partnership  Units") at $1,000 per Partnership Unit. The
offering of  Partnership  Units  concluded  in October  1990 at which time 7,450
Partnership 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 Low Income Housing Tax Credits of the Partnership. The investors
in the Partnership  ("Limited  Partners") will be allocated the remaining 99% of
these items in proportion to their respective investments.

The  proceeds  from the  disposition  of any of the  Local  Limited  Partnership
properties  will be used  first  to pay  debts  and  other  obligations  per the
respective Local Limited Partnership Agreement. Any remaining proceeds will then
be paid to the  Partnership.  The sale of a Housing  Complex  may be  subject to
other restrictions and obligations.  Accordingly, there can be no assurance that
a Local Limited Partnership will be able to sell its Housing Complex. Even if it
does so, there can be no assurance that any significant  amounts of cash will be
distributed to the  Partnership.  Should such  distributions  occur, the Limited
Partners  will be  entitled  to  receive  distributions  equal to their  capital
contributions  and their  return on  investment  (as defined in the  Partnership
Agreement) and the General  Partners would then be entitled to receive  proceeds
equal to their capital contributions from the remainder.  Any additional sale or
refinancing  proceeds  will  be  distributed  99% to the  Limited  Partners  (in
proportion to their respective investments) and 1% to the General Partners.

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

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

The Low Income Housing Tax Credit rules are extremely complicated. Noncompliance
with these  rules  results in the loss of future Low Income  Housing Tax Credits
and the fractional recapture of Low Income Housing Tax Credits already taken. In
most  cases  the  annual  amount  of Low  Income  Housing  Tax  Credits  that an
individual can use is limited to the
                                       27
<PAGE>
                    WNC CALIFORNIA HOUSING TAX CREDITS, L.P.
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For the Years Ended March 31, 2007, 2006 and 2005

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

tax  liability  due on the person's  last $25,000 of taxable  income.  The Local
Limited  Partnerships  may be unable to sell the  Housing  Complexes  at a price
which would result in the Partnership  realizing cash  distributions or proceeds
from the transaction.  Accordingly,  the Partnership may be unable to distribute
any cash to its Limited Partners. Low Income Housing Tax Credits may be the only
benefit from an investment in the Partnership.

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

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

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

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

                                       28
<PAGE>
                    WNC CALIFORNIA HOUSING TAX CREDITS, L.P.
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For the Years Ended March 31, 2007, 2006 and 2005

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
--------------------------------------------------------------------------------
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 October 31, 2008.

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

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

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

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

Upon  identifying  those  Housing  Complexes  with the highest  potential  for a
successful sale, refinancing or syndication,  the Partnership expects to proceed
with  efforts to  liquidate  them.  The  objective  is to  maximize  the Limited
Partners'  return  wherever   possible  and,   ultimately,   to  wind  down  the
Partnership.  Local Limited Partnership interests may be disposed of any time by
the  General  Partner  in its  discretion.  While  liquidation  of  the  Housing
Complexes continues to be evaluated,  the dissolution of the Partnership was not
imminent as of March 31, 2007.

During the year ended March 31, 2007 the Partnership sold the Housing Complex of
one Local Limited Partnership,  BCA Associates. BCA Associates had completed its
15-year compliance period. As of March 31, 2007, no additional Housing Complexes
had been selected for disposition.

On June 23, 2006, the Partnership filed a proxy with the Securities and Exchange
Commission for the written consent of the Limited  Partners for the commencement
of the disposition. On July 19, 2006 the Partnership filed additional definitive
proxy material with the SEC extending the deadline for proxy votes from July 21,
2006 to August 30, 2006. As of August 1, 2006, the Partnership  achieved the 51%
approval  necessary for the  disposition.  An affiliate of the General  Partners
executed a Purchase and Sales Agreement on August 30, 2006 for the purchase

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For the Years Ended March 31, 2007, 2006 and 2005

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

of the Housing Complex at sales price of $1,820,000.  The General Partner of BCA
was paid  approximately  $154,000 in sales  preparation  and  refinancing  fees,
$1,390,000  paid  down  the  existing  mortgages,  the  remaining  $276,000  was
distributed  to the  Partnership.  In addition to the $276,000  the  Partnership
received  approximately  $26,000 as a result of the  remaining net assets of the
Local  Limited  Partnership.  The  disposition  of the  Housing  Complex  of BCA
Associates  was closed on October  18,  2006.  The  distribution  to the Limited
Partners  amounted to $40.13 per  Partnership  Unit which was distributed in two
payments,  this first  payment was paid out on  December  20, 2006 and the final
portion of the  distribution was paid out on April 20, 2007. The distribution to
the General Partners was made on April 20, 2007.

Subsequent to year-end the  Partnership  identified  the Housing  Complex of one
Local Limited Partnership, Woodlake Manor, a California limited partnership, for
disposition.  Woodlake Manor owns the Woodlake Manor  Apartments  (the "Woodlake
Manor Property") located in Woodlake, California. Consistent with the investment
objectives of the Partnership, the Woodlake Manor Property qualified for Federal
Low Income  Housing Tax Credits  under the  Internal  Revenue Code for a 10-year
period.  The  credit  period  has  expired,  and no  further  credits  are being
generated by the Woodlake Manor Property.  The 15-year Federal compliance period
has also expired,  so there would be no credit  recapture upon a transfer of the
Woodlake Manor Property.  All of the remaining Local Limited  Partnerships  have
completed the 15-year compliance period as of March 31, 2007.

On July  13,  2007,  the  Partnership  filed  preliminary  consent  solicitation
materials with the Securities and Exchange Commission  regarding the sale of the
Woodlake Manor Property. Definitive materials were filed with the SEC on July 23
,2007 and disseminated to the  Partnership's  Limited Partners on July 24, 2007.
On September 20, 2007 the  Partnership  filed an 8-K which  notified the Limited
Partners  that the sale of  Woodlake  Manor  has been  terminated,  due to Rural
Development not approving the appraisal.

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

The Partnership accounts for its investments in Local Limited Partnerships using
the equity method of accounting,  whereby the Partnership adjusts its investment
balance for its share of the Local Limited  Partnerships'  results of operations
and for any  contributions  made and  distributions  received.  The  Partnership
reviews the  carrying  amount of an  individual  investment  in a Local  Limited
Partnership for possible  impairment whenever events or changes in circumstances
indicate that the carrying  amount of such  investment  may not be  recoverable.
Recoverability  of such investment is measured by the estimated value derived by
management,  generally  consisting of the sum of the remaining future Low Income
Housing  Tax  Credits  estimated  to be  allocated  to the  Partnership  and the
estimated  residual value to the Partnership.  If an investment is considered to
be impaired, the Partnership reduces the carrying value of its investment in any
such Local Limited  Partnership.  The  accounting  policies of the Local Limited
Partnerships,  generally,  are  expected  to be  consistent  with  those  of the
Partnership.  Costs incurred by the Partnership in acquiring the investments are
capitalized  as part of the  investment  and are being  amortized over 30 years.
(See Notes 2 and 3)

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

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For the Years Ended March 31, 2007, 2006 and 2005

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

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

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

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

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

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

The Partnership considers all highly liquid investments with original maturities
of three months or less when purchased to be cash  equivalents.  As of March 31,
2007 and 2006, the Partnership had no cash equivalents.

Net Loss Per Partnership Unit
-----------------------------

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

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

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

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

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

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

As of the periods  presented,  the  Partnership  owns Local Limited  Partnership
interets in 11 Local Limited  Partnerships.  As the Housing Complex of one Local
Limited  Partnership,  BCA  Associates  was sold during the year ended March 31,
2007, 10 of these Local Limited Partnership's own one Housing Complex consisting
of an aggregate of 393 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 governing agreements,  of the
operating profits and losses,  taxable income and losses, amd tax credits of the
Local Limited Partnerships.

The  Partnership's  investments  in Local Limited  Partnerships  as shown in the
balance  sheets at March 31, 2007 and 2006,  are  approximately  $1,122,000  and

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For the Years Ended March 31, 2007, 2006 and 2005

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

$1,059,000 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 along with impairment  losses recorded in the
Partnership's  investment  account.  The Partnership's  investment is also lower
than  the  Partnership's  equity  as shown in the  Local  Limited  Partnership's
combined  financial  statements  due to the  estimated  losses  recorded  by the
Partnership for the three month period ended March 31.

At March 31, 2007, the investment accounts in all of Local Limited  Partnerships
have reached a zero balance.  Consequently, all of the Partnership's estimate of
its share of losses for the years ended March 31, 2007, 2006 and 2005, amounting
to approximately $310,000 and $303,000,  $302,000,  respectively,  have not been
recognized.  As of  March  31,  2007,  the  aggregate  share of net  losses  not
recognized by the Partnership amounted to $1,863,000.

The financial  information from the individual financial statements of the Local
Limited  Partnerships  includes 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>
                                                                                       2006                      2005
                                                                                --------------------      --------------------
ASSETS
<S>                                                                          <C>                       <C>
Buildings and improvements (net of accumulated depreciation for 2006 and
   2005 of $9,883,000 and $10,034,000, respectively)                          $          10,866,000     $          12,488,000
Land                                                                                      1,335,000                 1,485,000
Other assets                                                                              2,060,000                 2,131,000
                                                                                --------------------      --------------------
     Total assets                                                             $          14,261,000     $          16,104,000
                                                                                ====================      ====================
LIABILITIES

Mortgage loans payable                                                        $          14,983,000     $          16,427,000
Due to related parties                                                                      324,000                   349,000
Other liabilities                                                                           188,000                   185,000
                                                                                --------------------      --------------------
    Total liabilities                                                                    15,495,000                16,961,000
                                                                                --------------------      --------------------
PARTNERS' DEFICIT

WNC California Housing Tax Credits, L.P.                                                 (1,122,000)               (1,059,000)
Other partners                                                                             (112,000)                  202,000
                                                                                --------------------      --------------------
     Total partners' deficit                                                             (1,234,000)                 (857,000)
                                                                                --------------------      --------------------
         Total liabilities and partners' deficit                              $          14,261,000     $          16,104,000
                                                                                ====================      ====================
</TABLE>
                                       32
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For the Years Ended March 31, 2007, 2006 and 2005

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

                   COMBINED CONDENSED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
                                                                    2006                        2005                     2004
                                                             --------------------      --------------------     --------------------
<S>                                                                           <C>                      <C>                      <C>
Revenues                                                   $          2,600,000     $           2,681,000    $           2,677,000
                                                             --------------------      --------------------     --------------------
Expenses:
  Operating expenses                                                  1,833,000                 1,907,000                1,861,000
  Interest expense                                                      354,000                   364,000                  365,000
  Depreciation and amortization                                         744,000                   713,000                  690,000
                                                            --------------------      --------------------     ---------------------
   Total expenses                                                     2,931,000                 2,984,000                2,916,000
                                                            --------------------      --------------------     ---------------------
  Net operating  loss                                      $           (331,000)   $             (303,000)  $             (239,000)
                                                            --------------------      --------------------     ---------------------
Gain on sale of one Local Limited Partnership                           559,000                         -                        -
                                                            --------------------      --------------------     ---------------------
Net income(loss) allocable to the Partnership              $            226,000    $             (300,000)  $             (236,000)
                                                            ====================      ====================     =====================
 Net income(loss) recorded by the Partnership              $            302,000    $                    -   $                    -
                                                            ====================      ====================     =====================
</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.  At the  end of all  periods  presented,  the
     Partnership incurred acquisition fees of $447,060. Accumulated amortization
     of these capitalized costs was $447,060 for all periods presented.

     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  Local  Limited
     Partnerships. Accumulated amortization of the acquisition costs was $32,018
     for all periods presented.

     An annual asset  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
     $111,856,  $111,856 and $111,855 were incurred during the years ended March
     31, 2007,  2006 and 2005,  respectively of which $0 was paid during each of
     the years ended March 31, 2007, 2006 and 2005.

                                       33
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For the Years Ended March 31, 2007, 2006 and 2005

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

     The  Partnership  reimbursed  the  General  Partner or its  affiliates  for
     operating  expenses incurred by the Partnership and paid for by the General
     Partner or its affiliates on behalf of the Partnership.  Operating  expense
     reimbursements  were  approximately  $0, $0, and  $24,000  during the years
     ended March 31, 2007, 2006 and 2005, respectively.

     The  Partnership  is owed  approximately  $2,800 from an  affiliate  of the
     General  Partner,  which  represents the General  Partner's  portion of the
     distribution  from the  disposition  of BCA. As of March 31, 2007 the funds
     were being held in a distribution account which an affiliate of the General
     Partner controls.  The distribution was made to the  Partnership's  General
     Partners subsequent to year-end.

     The  Partnership  was owed $24,700 from BCA  Associates,  the Local Limited
     Partnership that was sold during the year ended March 31, 2007. This amount
     represents  the  final   distribution  owed  to  the  Partnership  for  the
     disposition of the Local Limited Partnership. It was received subsequent to
     year-end and distributed to the Partnership's  Limited Partners and General
     Partners, in accordance with the prospectus.

The accrued fees and expenses due to the General Partners and affiliates consist
of the following at:
<TABLE>
<CAPTION>
                                                                                                            March 31,
                                                                                             ---------------------------------------
                                                                                                   2007                  2006
                                                                                             ----------------    -------------------
<S>                                                                                       <C>                 <C>
Expenses paid by the General Partners
   or an affiliate on behalf of the Partnership                                            $         120,697   $             83,544

Asset management fee payable                                                                       1,737,952              1,626,096
                                                                                             ----------------    -------------------
Total                                                                                      $       1,858,649   $          1,709,640
                                                                                             ================    ===================
</TABLE>
The General  Partners and/or its affiliates 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.

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For the Years Ended March 31, 2007, 2006 and 2005

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

The following is a summary of the quarterly operations for the years ended March
31:
<TABLE>
<CAPTION>
                                                          June 30             September 30            December 31        March 31
                                                     -----------------      -----------------      -----------------   -------------
<S>                                               <C>                   <C>                   <C>                     <C>
                    2007
                    ----
Income                                             $           5,000     $           5,000     $             2,000     $          -

Operating expenses                                           (32,000)              (58,000)                (29,000)         (31,000)

Loss from operations                                         (27,000)              (53,000)                (27,000)         (31,000)

Equity in losses of Local Limited
     Partnerships                                                  -                     -                       -                -

Interest income                                                    -                     -                       -                -

Gain on sale of one Local
  Limited Partnership                                              -                     -                 302,000                -

Net income (loss)                                            (27,000)              (53,000)                275,000          (31,000)

Net Income (Loss) available to Limited
     Partners                                                (27,000)              (52,000)                272,000          (31,000)

Net Income(Loss) per Partnership Unit                             (4)                   (7)                     37               (4)
</TABLE>
                                       35
<PAGE>
                    WNC CALIFORNIA HOUSING TAX CREDITS, L.P.
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For the Years Ended March 31, 2007, 2006 and 2005

NOTE 4 - QUARTERLY RESULTS OF OPERATIONS (UNAUDITED), continued
---------------------------------------------------------------
<TABLE>
<CAPTION>
                                                   June 30                September 30           December 31            March 31
                                                -----------------      -----------------      -----------------      ---------------
                    2006
                    ----
<S>                                               <C>               <C>                   <C>                   <C>
Income                                             $        2,000    $           4,000     $               -     $            2,000

Operating expenses                                        (30,000)             (40,000)              (40,000)               (31,000)

Loss from operations                                      (28,000)             (36,000)              (40,000)               (29,000)

Equity in losses of Local Limited
     Partnerships                                               -                    -                     -                      -

Interest income                                                 -                    -                     -                      -

Net loss                                                  (28,000)             (36,000)              (40,000)               (29,000)

Net Loss available to Limited Partners                    (28,000)             (36,000)              (40,000)               (28,000)

Net Loss per Partnership Unit                                  (4)                  (5)                   (5)                    (4)
</TABLE>
<TABLE>
<CAPTION>
                                                           June 30              September 30          December 31          March 31
                                                     -----------------      ----------------      ----------------      ------------
                    2005
                    ----
<S>                                               <C>                  <C>                    <C>                 <C>
Income                                             $          6,000     $            5,000     $             -     $          1,000

Operating expenses                                          (30,000)               (37,000)            (28,000)             (41,000)

Loss from operations                                        (24,000)               (32,000)            (28,000)             (40,000)

Equity in losses of Local Limited
   Partnerships                                                   -                      -                   -                    -

Interest income                                                   -                      -                   -                    -

Net loss                                                    (24,000)               (32,000)            (28,000)             (40,000)

Net Loss available to Limited Partners                      (24,000)               (31,000)            (28,000)             (40,000)

Net Loss per Partnership Unit                                    (3)                    (4)                 (4)                  (5)
</TABLE>
                                       36
<PAGE>
                    WNC CALIFORNIA HOUSING TAX CREDITS, L.P.
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For the Years Ended March 31, 2007, 2006 and 2005

NOTE 5 - SUBSEQUENT EVENT
-------------------------

Subsequent to year-end the  Partnership  identified  the Housing  Complex of one
Local Limited Partnership, Woodlake Manor, a California limited partnership, for
disposition.  Woodlake Manor owns the Woodlake Manor  Apartments  (the "Woodlake
Manor Property") located in Woodlake, California. Consistent with the investment
objectives of the Partnership, the Woodlake Manor Property qualified for Federal
Low Income  Housing Tax Credits  under the  Internal  Revenue Code for a 10-year
period.  The  credit  period  has  expired,  and no  further  credits  are being
generated by the Woodlake Manor Property.  The 15-year Federal compliance period
has also expired,  so there would be no credit  recapture upon a transfer of the
Woodlake Manor Property.

On July  13,  2007,  the  Partnership  filed  preliminary  consent  solicitation
materials with the Securities and Exchange Commission  regarding the sale of the
Woodlake Manor  Property.  Definitive  materials were filed with the SEC on July
23, 2007 and were disseminated to the Partnership's Limited Partners on July 24,
2007.  On September  20, 2007 the  Partnership  filed an 8-K which  notified the
Limited  Partners that the sale of Woodlake  Manor has been  terminated,  due to
Rural Development not approving the appraisal.

                                       37
<PAGE>
Item  9.  Changes  in and  Disagreements  with  Accountants  on  Accounting  and
          Financial Disclosure

NONE

Item 9A. Controls and Procedures

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

(b)  There were no changes in the Partnership's  internal control over financial
     reporting  that  occurred  during the  quarter  ended  March 31,  2007 that
     materially  affected,  or are reasonably likely to materially  affect,  the
     Partnership's internal control over financial reporting.

Item 9B. Other Information

NONE

PART III.

Item 10. Directors and Executive Officers of the Registrant

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

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

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

In addition to Wilfred N. Cooper,  Sr., the directors of Associates  are Wilfred
N. Cooper,  Jr., Kay L. Cooper, and Jennifer Cooper. The principal  shareholders
of Associates are a trust established by the Coopers.

Wilfred N.  Cooper,  Sr.,  age 76, is the founder  and  Chairman of the Board of
Directors of Associates,  a Director of WNC Capital  Corporation,  and a general
partner in some of the  partnerships  previously  sponsored  by  Associates  Mr.
Cooper has been actively involved in the affordable housing industry since 1968.
Previously,  during 1970 and 1971,  he was  founder and a principal  of Creative
Equity  Development  Corporation,  a predecessor of Associates,  and of Creative
Equity Corporation, a real estate investment firm. For 12 years before that, Mr.
Cooper was employed by Rockwell International  Corporation,  last serving as its
manager  of  housing  and urban  developments  where he had  responsibility  for
factory-built  housing  evaluation and project  management in urban planning and
development.  He has testified before committees of the U.S. Senate and the U.S.
House  of  Representatives  on  matters  pertaining  to the  affordable  housing
industry.  Mr.  Cooper is a Life  Director of the National  Association  of Home
Builders,  a National Trustee for NAHB's Political Action Committee,  and a past
Chairman of NAHB's Multifamily Council. He is a Director of the National Housing
Conference and a member of NHC's Board of Governors,  and a founder and Director
of the California  Housing  Consortium.  He is the husband of Kay Cooper and the
father of Wilfred N. Cooper,  Jr. Mr. Cooper  graduated  from Pomona  College in
1956 with a Bachelor of Arts degree.

                                       38
<PAGE>
Wilfred  N.  Cooper,  Jr.,  age  44,  is  President,  Chief  Executive  Officer,
Secretary,  a Director and a member of the Acquisition  Committee of Associates.
He is President and a Director of, and a registered  principal with, WNC Capital
Corporation, and is a Director and Vice President of WNC Management, Inc. He has
been involved in real estate  investment and acquisition  activities  since 1988
when he  joined  Associates.  Previously,  he  served  as a  Government  Affairs
Assistant with Honda North America in Washington, D.C. Mr. Cooper is a member of
the Editorial  Advisory  Boards of Affordable  Housing Finance and LIHTC Monthly
                                   ---------------------------     -------------
Report,  a  Steering  Member  of  the  Housing  Credit  Group  of  the  National
------
Association  of Home  Builders,  a  member  of the Tax  Policy  Council  for the
National  Trust for Historical  Preservation,  a member of the Advisory Board of
the New York State  Association  for Affordable  Housing,  a member of the Urban
Land Institute and a member of TEC  International,  a global network of business
leaders  and chief  executives.  He is the son of  Wilfred  Cooper,  Sr. and Kay
Cooper.  Mr.  Cooper  graduated  from The  American  University  in 1985  with a
Bachelor of Arts degree.

David N. Shafer,  age 55, is an Executive  Vice  President,  and a member of the
Acquisition  Committee  of  Associates,  and  a  Director,  Vice  President  and
Secretary of WNC Management,  Inc. Mr. Shafer has been active in the real estate
industry  since 1984.  Before  joining  Associates in 1990, he was engaged as an
attorney  in the private  practice  of law with a  specialty  in real estate and
taxation.  Mr. Shafer is a Director and past President of the California Council
of Affordable Housing,  and a member of the State Bar of California.  Mr. Shafer
graduated  from the  University  of  California  at Santa Barbara in 1978 with a
Bachelor of Arts degree, from the New England School of Law in 1983 with a Juris
Doctor  degree  cum  laude and from the  University  of San Diego in 1986 with a
Master of Law degree in Taxation.

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

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

Thomas J. Riha, age 52, is Senior Vice President - Chief Financial Officer and a
member of the  Acquisition  Committee  and the  Commercial  Real Estate Group of
Associates and Vice President,  Treasurer and a Director of WNC Management, Inc.
He has been involved in real estate acquisition and investment  activities since
1979.  Before joining  Associates in 1994, Mr. Riha was employed by Trust Realty
Advisor, a real estate acquisition and Management Company,  last serving as Vice
President - Operations.  He is a founding member of the Housing Credit Certified
Professional Board of Governors,  a national professional  certification program
administered  by  the  NAHB  and  the  National  Affordable  Housing  Management
Association. Mr. Riha graduated from the California State University,  Fullerton
in 1977 with a Bachelor of Arts degree cum laude in Business Administration with
a concentration in Accounting and is a Certified Public  Accountant and a member
of the American Institute of Certified Public Accountants.

Thomas J.  Hollingsworth,  CPA, age 56, is Vice President - Asset  Management of
WNC  &  Associates,   Inc.  and  oversees  WNC's  asset  management  group.  Mr.
Hollingsworth  has been  involved in real estate  acquisitions,  operations  and
syndication  of  multifamily  properties  for 25 years.  Prior to joining WNC in
2005,  he  was  the  senior  workout  specialist  at  Key  Corporation   Housing
Management,  Inc.,  a division  of Key Bank.  He has also been  responsible  for
structuring  several tax sheltered  multifamily  acquisitions during his career.

                                       39
<PAGE>
Mr. Hollingsworth  graduated from the University of Utah in 1973 with a Bachelor
of Science degree (cum laude) in Business Administration.

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

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

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

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

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

     Inapplicable.

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

     Neither the Partnership, the General partner, nor Associates has an audit
     committee.

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

     Inapplicable.

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

(l)  Code of Ethics
     --------------

     Associates  has  adopted  a Code  of  Ethics  which  applies  to the  Chief
     Executive  Officer  of  Associates.  The Code of  Ethics  will be  provided
     without  charge to any person who  requests  it.  Such  requests  should be
     directed to: Investor Relations at (714)662-5565 extension 187.

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:
                                       40
<PAGE>
(a)  Annual Asset  Management Fee. An annual asset  management fee accrues in an
     amount equal to 0.5% of the Invested Assets of the Partnership, as defined.
     "Invested  Assets" means the sum of the  Partnership's  investment in Local
     Limited Partnership Interests and the Partnership's  allocable share of the
     amount of the  mortgage  loans on and other  debts  related to the  Housing
     Complexes owned by such Local Limited  Partnerships.  Fees of approximately
     $112,000 were incurred  during each of the years ended March 31, 2007, 2006
     and 2005. The Partnership paid the General Partners and or their affiliates
     $0 of those fees during the each of the years ended  March 31,  2007,  2006
     and 2005.

(b)  Operating Expenses.  The Partnership  reimbursed the General Partner or its
     affiliates  for  operating  expenses  of  approximately  $0, $0 and $24,000
     during the years ended March 31, 2007, 2006 and 2005, respectively.

(c)  Interest  in   Partnerships.   The  General  Partners  receive  1%  of  the
     Partnership's  allocated Low Income Housing Tax Credits, which approximated
     $0, $0 and $34 for Associates and $0, $0 and $4 for the General Partner for
     the calendar  years ended December 31, 2006,  2005 and 2004,  respectively.
     The  General  Partners  are  also  entitled  to  receive  a  percentage  of
     Partnership  income or  losses,  and of cash  distributions.  There were no
     distributions  of cash to the General Partners during the years ended March
     31, 2007, 2006 and 2005.

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

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

     The  Partnership  has no  compensation  plans under which  interests in the
     Partnership are authorized for issuance.

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

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

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

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

     First,   with  the   consent   of  any  other   General   Partners   and  a
     majority-in-interest  of the Limited  Partners,  any General  Partners  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 Partners 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

                                       41
<PAGE>
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. Principal Accountant Fees and Services

The  following  is a  summary  of  fees  paid  to  the  Partnership's  principal
independent registered public accounting firm for the years ended March 31:
<TABLE>
<CAPTION>
                                                            2007                      2006
                                                     --------------------      --------------------
<S>                                               <C>                       <C>
Audit Fees                                         $              23,733     $              22,392
Audit-related Fees                                                     -                         -
Tax Fees                                                           3,000                     3,000
All Other Fees                                                         -                         -
                                                     --------------------      --------------------
TOTAL                                              $              26,733     $              25,392
                                                     ====================      ====================
</TABLE>
The  Partnership  has no Audit  Committee.  All audit services and any permitted
non-audit  services  performed  by the  Partnership's  independent  auditors are
pre-approved by the General Partner.

                                       42
<PAGE>
PART IV.

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

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

         Balance Sheets, March 31, 2007 and 2006
         Statements of Operations for the years ended March 31, 2007, 2006 and
         2005
         Statements of Partners' Equity (Deficit) for the years ended March 31,
         2007, 2006 and 2005
         Statements of Cash Flows for the years ended March 31, 2007, 2006 and
         2005
         Notes to Financial Statements

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

       Schedule III - Real Estate Owned by Local Limited Partnerships

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

3.1  Agreement of Limited  Partnership dated September 15, 1988 filed as Exhibit
     28.1  to  Form  10-K  for the  year  ended  December  31,  1992  is  hereby
     incorporated herein by reference as Exhibit 3.1.

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

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

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

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

99.1 Amended  and  Restated  Agreement  of  Limited  Partnership  of  Countryway
     Associates  filed as exhibit  10.1 on Form 10-K dated  December 31, 1992 is
     hereby incorporated herein as exhibit 99.1

99.2 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 99.2.

99.3 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 99.3.

99.4 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 99.4.

99.5 Amended and Restated  Agreement  of Limited  Partnership  of HPA  Investors
     filed as  exhibit  10.8on  Form  10-K  dated  December  31,  1992 is hereby
     incorporated herein as exhibit 99.5.

                                       43
<PAGE>
99.6 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 99.6.

99.7 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 99.7.

99.8 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 99.8.

99.9 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 99.9.

99.10 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 99.10.

99.11 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 99.1

                                       44
<PAGE>
WNC California Housing Tax Credits, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2007
<TABLE>
<CAPTION>
                                 ---------------------------------------------------------------------------------------------------
                                         As of March 31, 2007                              As of December 31, 2006
                                 ---------------------------------------------------------------------------------------------------
                                                                      Mortgage
                                 Partnership's Total    Amount of    Balances of
Local Limited                    Investment in Local    Investment  Local Limited        Buildings &     Accumulated    Net Book
Partnership Name     Location    Limited Partnerships  Paid to Date  Partnership   Land   Equipment      Depreciation    Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                  <C>          <C>              <C>              <C>          <C>      <C>          <C>             <C>
Alta Vista Investors Orosi,         $  583,000           $  583,000  $ 1,399,000  $40,000  $2,276,000      $1,306,000     $1,010,000
                     California

BCA Associates (1)   Anderson,               -                    -            -        -           -               -              -
                     California

Cloverdale           Cloverdale,       617,000              617,000    1,600,000  182,000   2,047,000         848,000      1,381,000
Garden               California
Apartments

Countryway           Mendota,          571,000              571,000    1,438,000   90,000   2,200,000       1,335,000        955,000
Associates           California

East Garden          Jamestown,        770,000              770,000    2,106,000  225,000   2,652,000       1,123,000      1,754,000
Apartments           California

HPA Investors        Shafter,          538,000              538,000    1,477,000   94,000   2,164,000         948,000      1,310,000
                     California

Knights              Knights           275,000              275,000      977,000  100,000   1,297,000         583,000        814,000
Landing              Landing,
Harbor               California
</TABLE>
                                       45
<PAGE>
WNC California Housing Tax Credits, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2007
<TABLE>
<CAPTION>
                                 ---------------------------------------------------------------------------------------------------
                                          As of March 31, 2007                                      As of December 31, 2006
                                 ---------------------------------------------------------------------------------------------------
                                                                      Mortgage
                                 Partnership's Total    Amount of    Balances of
Local Limited                    Investment in Local    Investment  Local Limited          Buildings &     Accumulated    Net Book
Partnership Name     Location    Limited Partnerships  Paid to Date  Partnership     Land   Equipment      Depreciation    Value
------------------------------------------------------------------------------------------------------------------------------------
<S>            <C>                 <C>               <C>            <C>           <C>       <C>            <C>         <C>
Midland Manor        Mendota,          383,000              383,000     1,396,000     80,000   2,053,000     1,064,000     1,069,000
Associates           California

San Jacinto          San Jacinto,      469,000              469,000     1,742,000    223,000   2,143,000       713,000     1,653,000
Associates           California

Woodlake Manor (2)    Woodlake,        545,000              545,000     1,417,000    144,000   2,030,000     1,252,000       922,000
                      California

Yreka Investment      Yreka,           538,000              538,000     1,431,000    157,000   1,887,000       711,000     1,333,000
Group                 California     ---------           ----------   ----------- ----------  ----------     ---------   -----------
                                    $5,289,000           $5,289,000   $14,983,000 $1,335,000 $20,749,000    $9,883,000   $12,201,000
                                    ==========           ==========   =========== ========== ===========    ==========   ===========
</TABLE>
(1)The  property  was sold on  September  30,  2006,  as of March  31,  2007 the
   partnership had not yet been dissolved.

(2)Property identified on July 13, 2007 for disposition.

                                       46
<PAGE>
WNC California Housing Tax Credits, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2007
<TABLE>
<CAPTION>
                                             ---------------------------------------------------------------------------------------
                                                                       For the year ended December 31, 2006
                                             ---------------------------------------------------------------------------------------
Local Limited                                                     Net Income        Year Investment                 Estimated Useful
Partnership Name                             Rental Income          (Loss)              Acquired           Status     Life (Years)
------------------------------------------------------------------------------------------------------------------------------------
<S>                                <C>                       <C>                  <C>               <C>                   <C>
Alta Vista Investors                         $  228,000           $  (41,000)            1989             Completed             27.5

BCA Associates                                  165,000              532,000*            1989             Completed               40

Cloverdale Garden Apartments                    246,000              (43,000)            1989             Completed               40

Countryway Associates                           161,000             (117,000)            1989             Completed             27.5

East Garden Apartments                          305,000              (26,000)            1989             Completed               40

HPA Investors                                   225,000              (31,000)            1989             Completed               40

Knights Landing Harbor                          171,000               10,000             1989             Completed               40

Midland Manor Associates                        205,000              (46,000)            1990             Completed             27.5

San Jacinto Associates                          291,000                2,000             1990             Completed               50

Woodlake Manor                                  282,000              (12,000)            1989             Completed               30

Yreka Investment Group                          241,000                1,000             1989             Completed               50
                                            -----------           ----------
                                            $ 2,520,000           $  229,000
                                            ===========           ==========
</TABLE>
* This amount included the gain on disposal of Local Limited Partnership.

                                       47
<PAGE>
WNC California Housing Tax Credits, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2006
<TABLE>
<CAPTION>
                                 ---------------------------------------------------------------------------------------------------
                                      As of March 31, 2006                                            As of December 31, 2005
                                 ---------------------------------------------------------------------------------------------------
                                                                      Mortgage
                                 Partnership's Total    Amount of    Balances of
Local Limited                    Investment in Local    Investment  Local Limited          Buildings &     Accumulated    Net Book
Partnership Name     Location    Limited Partnerships  Paid to Date  Partnership     Land   Equipment      Depreciation    Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                  <C>          <C>               <C>           <C>           <C>        <C>            <C>           <C>
Alta Vista Investors   Orosi,        $  583,000        $  583,000    $ 1,406,000  $ 40,000   $ 2,260,000   $ 1,194,000    $1,106,000
                       California

BCA Associates         Anderson,        514,000           514,000      1,394,000   150,000     2,003,000       835,000     1,318,000
                       California

Cloverdale Garden      Cloverdale,      617,000           617,000      1,607,000   182,000     2,028,000       778,000     1,432,000
Apartments             California

Countryway Associates  Mendota,         571,000           571,000      1,445,000    90,000     2,176,000     1,246,000     1,020,000
                       California

East Garden Apartments Jamestown,       770,000           770,000      2,115,000   225,000     2,743,000     1,043,000     1,925,000
                       California

HPA Investors          Shafter,         538,000           538,000      1,483,000    94,000     2,150,000       885,000     1,359,000
                       California

Knights Landing Harbor Knights Landing, 275,000           275,000        963,000   100,000     1,294,000       546,000       848,000
                       California
</TABLE>
                                       48
<PAGE>
WNC California Housing Tax Credits, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2006
<TABLE>
<CAPTION>
                                 ---------------------------------------------------------------------------------------------------
                                       As of March 31, 2006                                            As of December 31, 2005
                                 ---------------------------------------------------------------------------------------------------
                                                                      Mortgage
                                 Partnership's Total    Amount of    Balances of
Local Limited                    Investment in Local    Investment  Local Limited          Buildings &     Accumulated    Net Book
Partnership Name     Location    Limited Partnerships  Paid to Date  Partnership     Land   Equipment      Depreciation    Value
------------------------------------------------------------------------------------------------------------------------------------
<S>             <C>                <C>                <C>           <C>          <C>        <C>          <C>           <C>
Midland Manor        Mendota,           383,000              383,000   1,402,000     80,000   1,843,000      983,000         940,000
Associates           California

San Jacinto          San Jacinto,       469,000              469,000   1,750,000    223,000   2,143,000      669,000       1,697,000
Associates           California

Woodlake Manor       Woodlake,          545,000              545,000   1,424,000    144,000   1,996,000    1,180,000         960,000
                     California

Yreka Investment     Yreka,             538,000              538,000   1,438,000    157,000   1,886,000      675,000       1,368,000
Group                California    ------------           ---------- ----------- ---------- -----------  -----------     -----------
                                   $  5,803,000           $5,803,000 $16,427,000 $1,485,000 $22,522,000  $10,034,000     $13,973,000
                                   ============           ========== =========== ========== ===========  ===========     ===========
</TABLE>
                                       49
<PAGE>
WNC California Housing Tax Credits, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2007
<TABLE>
<CAPTION>
                                             ---------------------------------------------------------------------------------------
                                                                       For the year ended December 31, 2005
                                             ---------------------------------------------------------------------------------------
Local Limited                                                     Net Income        Year Investment                 Estimated Useful
Partnership Name                             Rental Income          (Loss)              Acquired           Status     Life (Years)
------------------------------------------------------------------------------------------------------------------------------------
<S>                                          <C>                 <C>                <C>            <C>                   <C>
Alta Vista Investors                          $    228,000          $   (33,000)         1989             Completed             27.5

BCA Associates                                     236,000              (16,000)         1989             Completed               40

Cloverdale Garden Apartments                       240,000              (28,000)         1989             Completed               40

Countryway Associates                              187,000             (106,000)         1989             Completed             27.5

East Garden Apartments                             300,000              (21,000)         1989             Completed               40

HPA Investors                                      226,000              (42,000)         1989             Completed               40

Knights Landing Harbor                             164,000                9,000          1989             Completed               40

Midland Manor Associates                           226,000              (25,000)         1990             Completed             27.5

San Jacinto Associates                             285,000              (18,000)         1990             Completed               50

Woodlake Manor                                     284,000               (5,000)         1989             Completed               30

Yreka Investment Group                             225,000              (18,000)         1989             Completed               50
                                             -------------          ------------
                                             $   2,601,000          $  (303,000)
                                             =============          ============
</TABLE>
                                       50
<PAGE>
WNC California Housing Tax Credits, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2005
<TABLE>
<CAPTION>
                                 ---------------------------------------------------------------------------------------------------
                                      As of March 31, 2005                                         As of December 31, 2004
                                 ---------------------------------------------------------------------------------------------------
                                                                      Mortgage
                                 Partnership's Total    Amount of    Balances of
Local Limited                    Investment in Local    Investment  Local Limited          Buildings &     Accumulated    Net Book
Partnership Name     Location    Limited Partnerships  Paid to Date  Partnership     Land   Equipment      Depreciation    Value
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>              <C>              <C>              <C>           <C>         <C>            <C>           <C>
Alta Vista          Orosi,       $  583,000           $ 583,000     $ 1,412,000    $40,000   $ 2,109,000    $1,095,000    $1,054,000
Investors           California

BCA Associates      Anderson,       514,000             514,000       1,401,000    150,000     1,988,000       773,000     1,365,000
                    California

Cloverdale          Cloverdale,     617,000             617,000       1,614,000    182,000     2,019,000       715,000     1,486,000
Garden              California
Apartments

Countryway          Mendota,        571,000             571,000       1,452,000     90,000     2,159,000     1,158,000     1,091,000
Associates          California

East Garden         Jamestown,      770,000             770,000       2,123,000    225,000     2,756,000       962,000     2,019,000
Apartments          California

HPA Investors       Shafter,        538,000             538,000       1,489,000     94,000     2,133,000       826,000     1,400,000
                    California

Knights Landing     Knights         275,000             275,000         967,000    100,000     1,286,000       509,000       877,000
Harbor              Landing,
                    California

Midland Manor       Mendota,        383,000             383,000       1,407,000     80,000     1,794,000       911,000       963,000
Associates          California

San Jacinto         San Jacinto,    469,000             469,000       1,781,000    223,000     2,126,000       626,000     1,723,000
Associates          California

Woodlake Manor      Woodlake,       545,000             545,000       1,431,000    144,000     1,996,000     1,107,000     1,033,000
                    California

Yreka Investment    Yreka,          538,000             538,000       1,445,000    157,000     1,886,000       639,000     1,404,000
Group               California  -----------         -----------    ------------  ---------  ------------   -----------   -----------
                               $  5,803,000         $ 5,803,000    $ 16,522,000 $1,485,000  $ 22,252,000   $ 9,321,000   $14,415,000
                                ===========         ===========    ============ ==========  ============   ===========   ===========
</TABLE>
                                       51
<PAGE>
WNC California Housing Tax Credits, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2005
<TABLE>
<CAPTION>
                                             ---------------------------------------------------------------------------------------
                                                                       For the year ended December 31, 2004
                                             ---------------------------------------------------------------------------------------
Local Limited                                                     Net Income        Year Investment                 Estimated Useful
Partnership Name                             Rental Income          (Loss)              Acquired           Status     Life (Years)
------------------------------------------------------------------------------------------------------------------------------------
<S>                                  <C>                      <C>                 <C>             <C>                    <C>
Alta Vista Investors                           $   226,000          $ (20,000)             1989           Completed            27.5

BCA Associates                                     235,000             21,000              1989           Completed              40

Cloverdale Garden Apartments                       241,000            (26,000)             1989           Completed              40

Countryway Associates                              190,000            (60,000)             1989           Completed            27.5

East Garden Apartments                             337,000            (50,000)             1989           Completed              40

HPA Investors                                      210,000            (29,000)             1989           Completed              40

Knights Landing Harbor                             162,000                  -              1989           Completed              40

Midland Manor Associates                           240,000             16,000              1990           Completed            27.5

San Jacinto Associates                             274,000              9,000              1990           Completed              50

Woodlake Manor                                     285,000            (18,000)             1989           Completed              30

Yreka Investment Group                             224,000            (82,000)             1989           Completed              50
                                               -----------         -----------
                                               $ 2,624,000         $ (239,000)
                                               ===========         ===========
</TABLE>
                                       52
<PAGE>
                                   SIGNATURES

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

WNC CALIFORNIA HOUSING TAX CREDITS, L.P.

By:      WNC & Associates, Inc.,
         General Partner



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




Date: November 12, 2007


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


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




Date: November 12, 2007


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




Date: November 12, 2007


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




Date: November 12, 2007


By: /s/ Kay L. Cooper
    -----------------
    Kay L. Cooper
    Director of WNC & Associates, Inc.




Date: November 12, 2007


                                       53
<PAGE>