FORM 10-K

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

(Mark One)

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

For the fiscal year ended December 31, 1998

                                       OR

o 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.

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

California                                                   33-0316953

                    WNC CALIFORNIA HOUSING TAX CREDITS, L.P.
              3158 Redhill Avenue, Suite 120, Costa Mesa, CA 92626

                                 (714) 662-5565

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

Title of Securities                               Exchanges on which Registered

NONE                                              NOT APPLICABLE


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

UNITS OF LIMITED PARTNERSHIP INTEREST
<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 X No ____
         Indicate by check mark if disclosure of delinquent  filers  pursuant to
Item 405 of Regulation S-K is not contained  herein,  and will not be contained,
to the best of  registrant's  knowledge,  in  definitive  proxy  or  information
statements  incorporated  by  reference  in Part  III of this  Form  10-K or any
amendment to this Form 10-K. x



                       DOCUMENTS INCORPORATED BY REFERENCE

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

NONE



<PAGE>
PART I.
Item 1.  Business

Organization

WNC California Tax Housing  Credits,  L.P.  ("CHTC" or the  "Partnership")  is a
California Limited  Partnership formed under the laws of the State of California
on September 15, 1988. The Partnership was formed to acquire limited partnership
interests in local limited partnerships ("Local Limited Partnerships") which own
multifamily apartment complexes that are eligible for low-income housing federal
and California income tax credits ("Low Income Housing Credits").

The  general   partners  of  the   Partnership   are  WNC  &  Associates,   Inc.
("Associates")   and  Wilfred  N.  Cooper,  Sr.   (collectively,   the  "General
Partners"). Wilfred N. Cooper, Sr. through the Cooper Revocable Trust, owns just
less than 70% of the outstanding stock of Associates. John B. Lester, Jr. is the
original limited partner of the Partnership and owns,  through the Lester Family
Trust, just less than 30% 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.

On March 16, 1989, the  Partnership  commenced a public offering of 10,000 Units
of Limited Partnership  Interests ("Units"),  at a price of $1,000 per Units. As
of the close of the public  offering,  October 31,  1990, a total of 7,450 Units
representing  $7,450,000 had been sold.  Holders of Units are referred herein as
"Limited Partners".


Description of Business

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

                                       1
<PAGE>

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  Partnerships  Interests") or approve the
sale by a Local Limited Partnership of any Apartment Complex prior to the end of
the  applicable  Compliance  Period.  Because of (i) the nature of the Apartment
Complexes,  (ii) the  difficulty of predicting  the resale market for low-income
housing  15 or  more  year  in  the  future,  and  (iii)  the  inability  of the
Partnership  to directly  cause the sale of  Apartment  Complexes by the general
partners  of  the  respective   Local  Limited   Partnerships   ("Local  General
Partners"),  but generally  only to require such Local  General  Partners to use
their  respective  best efforts to find a purchaser for the Apartment  Complexes
(and then  subject  to the  ability  of  government  lenders  to  disapprove  of
transfers),  it is not possible at this time to predict  whether the liquidation
of  substantially  all of the  Partnership's  assets and the  disposition of the
proceeds,  if any, in accordance with the Partnership  Agreement will be able to
be accomplished promptly at the end of the Compliance Period. If a Local Limited
Partnership is unable to sell an Apartment  Complex,  it is anticipated that the
Local General Partner will either continue to operate such Apartment  Complex or
take such other actions as the Local General Partner  believes to be in the best
interest of the Local Limited Partnership. In addition, circumstances beyond the
control of the General  Partners  may occur during the  Compliance  Period which
would require the Partnership to approve the disposition of an Apartment Complex
prior to the end thereof.

As of December 31, 1998,  CHTC has  invested in 11 Local  Limited  Partnerships.
Each of these Local  Limited  Partnerships  owns an  Apartment  Complex  that is
eligible for the federal Low Income  Housing Tax Credit.  Eight of the Apartment
Complexes are eligible for the California Low Income Housing Credit.  All of the
Local Limited  Partnerships also benefit from government  programs promoting low
or moderate-income housing.
                                       2
<PAGE>

The Partnership's  investments in Local Limited  Partnerships are subject to the
risks incident to the management and ownership of multifamily  residential  real
estate.  Some of these risks are that the Housing Tax Credit could be recaptured
and neither the Partnership's  investments nor the Apartment  Complexes owned by
Local Limited Partnerships will be readily marketable. Additionally there can be
no  assurance  that the  Partnership  will be able to dispose of its interest in
Local Limited Partnerships at the end of the Compliance Period. The value of the
Partnership's  investments  will be subject to  changes  in  national  and local
economic conditions,  including unemployment  conditions,  which could adversely
impact vacancy levels, rental payment defaults and operating expenses.  This, in
turn,  could  substantially  increase  the  risk  of  operating  losses  for the
Apartment  Complexes  and the  Partnership.  The  Apartment  Complexes  could be
subject to loss through foreclosure. In addition, each Local Limited Partnership
is  subject  to  risks  relating  to   environmental   hazards  which  might  be
uninsurable.  Because the  Partnership's  ability to control its operations will
depend on these and other factors beyond the control of the General Partners and
the  general  partners  of  the  Local  Limited  Partnerships,  there  can be no
assurance that Partnership operations will be profitable or that the anticipated
Low Income Housing Credits will be available to Limited Partners.

As of December 31, 1998,  all of the Apartment  Complexes  were completed and in
operation.  The Apartment  Complexes owned by the Local Limited  Partnerships in
which  CHTC has  invested  were  developed  by the Local  General  Partners  who
acquired the sites and applied for  applicable  mortgages  and  subsidies.  CHTC
became  the  principal  limited  partner  in these  Local  Limited  Partnerships
pursuant  to  arm's-length   negotiations  with  the  general  partners  of  the
respective Local Limited Partnerships  ("Local General Partners").  As a limited
partner,  CHTC's  liability for obligations of the Local Limited  Partnership is
limited  to its  investment.  The Local  General  Partner  of the Local  Limited
Partnership retains  responsibility for developing,  constructing,  maintaining,
operating and managing the Apartment Complex.

                                       3
<PAGE>

The  following  is a schedule  of the status as of  December  31,  1998,  of the
Apartment  Complexes  owned by Local  Limited  Partnerships  in which  CHTC is a
limited partner.


                                     Total        Units    Percentage of Total
Name & Location                      Units        Occupied      Units Occupied

Alta Vista Investors, Ltd.            42             41                 98%
  Orisi, California
BCA Associates, Ltd.                  40             40                100%
  Anderson, California
Cloverdale Garden Apts., Ltd.         34             34                100%
  Cloverdale, California
Countryway Associates, Ltd.           41             39                 95%
  Mendota, California
East Garden Apartments, Ltd           51             51                100%
  Jamestown, California
HPA Investors, Ltd.                   42             41                 98%
  Shafter, California
Knights Landing, Ltd.                 25             24                 96%
  Knights Landing, California
Midland Manor Associates              40             39                 98%
  Mendota, California
San Jacinto Associates                38             28                 74%
  San Jacinto, California
Woodlake Manor, Ltd.                  44             41                 93%
  Woodlake, California
Yreka Investment Group, Ltd.          36             36                100%
  Yreka, California
                                     ----           ----               ----
                                     433            414                 96%
                                     ====           ===                 ===

                                       4
<PAGE>

Item 2.  Properties

         Through its investment in Local  Partnerships,  CHTC holds interests in
Apartment  Complexes.  See Item 1 for information  pertaining to these Apartment
Complexes.

Item 3.  Legal Proceedings

NONE.

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

NONE.

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

Item 5a.
(a) The Units are not traded on a public exchange but were sold through a public
offering.  It is not  anticipated  that any public  market will  develop for the
purchase  and  sale  of  any  Unit.  Units  can  be  assigned  only  if  certain
requirements   in  CHTC's   Agreement  of  Limited   Partnership   ("Partnership
Agreement")  are  satisfied.  (b) At December 31,  1998,  there were 685 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.  The Limited  Partners  received $99
federal  Low  Income  Housing  Credits  per Unit for each year of 1998 and 1997.
State Low Income  Housing  Credits in the  aggregate  amount of $473 to $700 per
Limited Partnership Interest were generated from 1989 through 1994.
 
                                      5
<PAGE>
 Item 6.  Selected Financial Data

         OMITTED
         Note  to  Reader.  Some  of  the  limited  partnerships  in  which  the
         Partnership has investments have yet to provide final audited financial
         statements  and other  information  as required  under the terms of the
         respective partnership agreements.  That information is critical to the
         completion of the  Partnership's  required  disclosures  in this Annual
         Report on Form 10K,  including  information on the underlying  property
         investments,   the  Partnership's  financial  statements  and  required
         supplementary  schedules.  Every  effort is being  made to obtain  this
         information and the registrant will file an amended Form 10K as quickly
         as possible.

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

        OMITTED
        See the Note to Reader in Part II, Item 6.


Impact of Year 2000

Associates has assessed the  Partnership's  exposure to date sensitive  computer
systems  that  may not be  operative  subsequent  to 1999.  As a result  of this
assessment,  Associates  has  executed  a plan  to  minimize  the  Partnership's
exposure to financial loss and/or disruption of normal business  operations that
may occur as a result of Year 2000 non-compliant computer systems.

Business Computer Systems

These systems include both computer hardware and software  applications relating
to operations such as financial reporting. The Partnership does not maintain its
own systems  and thus  utilizes  the  computer  systems of the General  Partner.
Associates  developed  a  compliance  plan  for  each of its  business  computer
systems,  with  particular  attention  given  to  critical  systems.  Associates
contracted with an outside vendor to evaluate, test and repair such systems. The
assessment  consisted of determining  the compliance  with Year 2000 of critical
computer  hardware and software.  Incidences of  non-compliance  were found with
respect to computer software  applications and were corrected.  The vendor found
no instances of non-compliance with respect to computer hardware.

                                       6
<PAGE>

The Local General  Partners and/or property  management  companies  maintain the
business  computer  systems that relate to the  operations  of the Local Limited
Partnerships. Associates is in the process of obtaining completed questionnaires
from such Local  General  Partners and property  management  companies to assess
their respective Year 2000 readiness. Associates intends to identify those Local
General Partners and property management companies that have systems critical to
the  operations  of the  Local  Limited  Partnerships  that  are not  Year  2000
compliant.  For those Local General Partners and property  management  companies
which have business computer systems which will not be Year 2000 compliant prior
to December 31, 1999 and where the lack of such compliance is determined to have
a potential material effect on the Partnership's financial condition and results
of operations, Associates intends to develop contingency plans which may include
changing property management companies.

Outside Vendors

Associates has obtained  assurances  from its suppliers of electrical  power and
banking and telecommunication  services that their critical systems are all Year
2000 compliant.  There exists, however, inherent uncertainty that all systems of
outside vendors or other third parties on which the General  Partners,  and thus
the  Partnership,  and  the  Local  General  Partners  and  property  management
companies,  and thus the  Local  Limited  Partnerships,  rely  will be Year 2000
compliant. Therefore, the Partnership remains susceptible to the consequences of
third party critical computer systems being non-compliant.

Personal Computers

Associates  has  determined  that its personal  computers  and related  software
critical to the operations of the Partnership are Year 2000 compliant.

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk

         NONE.


Item 8.  Financial Statements and Supplementary Data

        OMITTED.
        See the Note to Reader in Part II, Item 6.
 
                                      7
<PAGE>

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

          (a)(1) (i) On December 16, 1998,  Corbin & Wertz,  Irvine,  California
          was dismissed as the Partnership's principal independent accountant.

               (ii) The  reports  of  Corbin & Wertz  respecting  the  financial
          statements of the  Partnership did not contain an adverse opinion or a
          disclaimer of opinion, nor were any such reports qualified or modified
          as to uncertainty,  audit scope, or accounting  principles,  as of and
          for the years ended December 31, 1997 and 1996.

               (iii) The  decision  to change  accountants  was  approved by the
          board of directors of the General Partner.

               (iv)  During the last two  fiscal  years and  subsequent  interim
          period of the Partnership there were no disagreements between Corbin &
          Wertz and the  Partnership  on any matter of accounting  principles or
          practices,  financial  statement  disclosure,  or  auditing  scope  or
          procedure of the nature described in Item  304(a)(1)(iv) of Securities
          and Exchange Commission Regulation S-K.

               (v)  During  the last two  fiscal  years and  subsequent  interim
          period  of the  Partnership  there  were no  reportable  events of the
          nature  described  in Item  304(a)(1)(v)  of  Securities  and Exchange
          Commission Regulation S-K.

          (a)(2) On February 3, 1999, BDO Seidman,  LLP, Costa Mesa,  California
          was engaged as the  Partnership's  principal  independent  accountant.
          During the last two fiscal years and subsequent  interim period of the
          Partnership,   the  Partnership  did  not  consult  BDO  Seidman,  LLP
          regarding (i) either,  the  application of accounting  principles to a
          specified  transaction;  or the type of audit  opinion  that  might be
          rendered on the Partnership's financial statements, or (ii) any matter
          that  was  the  subject  of  a   disagreement   (as  defined  in  Item
          304(a)(1)(iv) of Securities and Exchange Commission Regulation S-K) or
          was a reportable event (as defined in Item  304(a)(1)(v) of Securities
          and Exchange Commission Regulation S-K).


                                       8
<PAGE>

PART III.

Item 10. Directors and Executive Officers of the Registrant

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

Directors and Executive Officers of WNC & Associates, Inc.

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

     Wilfred N. Cooper, Sr., age 68, is the founder, Chief Executive Officer and
a Director of WNC & Associates, Inc., a Director of WNC Capital Corporation, and
a general partner in some of the programs  previously  sponsored by the Sponsor.
Mr.  Cooper  has  been  involved  in  real  estate  investment  and  acquisition
activities  since 1968.  Previously,  during  1970 and 1971,  he was founder and
principal of Creative  Equity  Development  Corporation,  a predecessor of WNC &
Associates,  Inc., and of Creative Equity Corporation,  a real estate investment
firm.  For 12  years  prior  to  that,  Mr.  Cooper  was  employed  by  Rockwell
International  Corporation,  last  serving as its  manager of housing  and urban
developments where he had  responsibility  for factory-built  housing evaluation
and project  management  in urban  planning  and  development.  Mr.  Cooper is a
Director of the  National  Association  of Home  Builders  (NAHB) and a National
Trustee  for NAHB's  Political  Action  Committee,  a Director  of the  National
Housing  Conference  (NHC)  and a member  of  NHC's  Executive  Committee  and a
Director of the National Multi-Housing Council (NMHC). Mr. Cooper graduated from
Pomona College in 1956 with a Bachelor of Arts degree.

     John B. Lester, Jr., age 65, is President, a Director, Secretary and a
member of the Acquisition Committee of WNC & Associates, Inc., and a Director of
WNC Capital  Corporation.  Mr. Lester has 27 years of experience in  engineering
and construction and has been involved in real estate investment and acquisition
activities since 1986 when he joined the Sponsor. Previously, he was Chairman of
the Board and Vice President or President of E & L Associates,  Inc., a provider
of engineering and construction  services to the oil refinery and  petrochemical
industries which he co-founded in 1973. Mr. Lester graduated from the University
of Southern  California in 1956 with a Bachelor of Science  degree in Mechanical
Engineering.

                                       9
<PAGE>

     Wilfred N. Cooper, Jr., age 36, is Executive Vice President, a Director and
a member of the Acquisition Committee of WNC & Associates,  Inc. He is President
of, and a registered principal with, WNC Capital  Corporation,  a member firm of
the NASD,  and is a Director of WNC  Management,  Inc.  He has been  involved in
investment  and  acquisition  activities  with  respect to real estate  since he
joined  the  Sponsor in 1988.  Prior to this,  he served as  Government  Affairs
Assistant with Honda North America in Washington, D.C. Mr. Cooper is a member of
the Advisory Board for LIHC Monthly Report,  a Director of NMHC and an Alternate
Director of NAHB.  He  graduated  from The  American  University  in 1985 with a
Bachelor of Arts degree.

     David N.  Shafer,  age 46, is Senior Vice  President,  a Director,  General
Counsel,  and a member of the Acquisition  Committee of WNC & Associates,  Inc.,
and a  Director  and  Secretary  of WNC  Management,  Inc.  Mr.  Shafer has been
involved in real estate investment and acquisition  activities since 1984. Prior
to joining the Sponsor in 1990, he was  practicing  law with a specialty in real
estate and taxation.  Mr.  Shafer is a Director and President of the  California
Council of Affordable  Housing and a member of the State Bar of California.  Mr.
Shafer graduated from the University of California at Santa Barbara in 1978 with
a Bachelor of Arts  degree,  from the New  England  School of Law in 1983 with a
Juris  Doctor  degree (cum laude) and from the  University  of San Diego in 1986
with a Master of Law degree in Taxation.

     Michael L. Dickenson,  age 42, is Vice President - Finance, Chief Financial
Officer and a member of the Acquisition Committee of WNC & Associates,  Inc. and
Chief  Financial  Officer of WNC  Management,  Inc.  He has been  involved  with
acquisition  and investment  activities  with respect to real estate since 1985.
Prior to joining  the Sponsor in March 1999,  he was the  Director of  Financial
Reporting at  TrizecHahn  Centers  Inc., a developer  and operator of commercial
real estate, from 1995 to 1999, a Senior Manager with E&Y Kenneth Leventhal Real
Estate  Group,  Ernst & Young,  LLP,  from 1988 to 1995,  and Vice  President of
Finance with Great Southwest Companies, a commercial and residential real estate
developer,  from  1985 to  1988.  Mr.  Dickenson  is a member  of the  Financial
Accounting  Standards  Committee  for the  National  Association  of Real Estate
Companies  and the American  Institute of Certified  Public  Accountants,  and a
Director of HomeAid Southern California,  a charitable  organization  affiliated
with the building industry. He graduated from Texas Tech University in 1978 with
a Bachelor of Business  Administration - Accounting  degree,  and is a Certified
Public Accountant.

                                       10
<PAGE>

     Thomas J. Riha, age 44, is Vice  President - Asset  Management and a member
of the Acquisition Committee of WNC & Associates,  Inc. and a Director and Chief
Executive  Officer  of WNC  Management,  Inc.  Mr.  Riha  has been  involved  in
acquisition  and investment  activities  with respect to real estate since 1979.
Prior to joining the  Sponsor in 1994,  Mr.  Riha was  employed by Trust  Realty
Advisor, a real estate acquisition and management company,  last serving as Vice
President - Operations. Mr. Riha graduated from the California State University,
Fullerton  in 1977 with a  Bachelor  of Arts  degree  (cum  laude)  in  Business
Administration  with a  concentration  in Accounting  and is a Certified  Public
Accountant  and  a  member  of  the  American   Institute  of  Certified  Public
Accountants.

     Sy P. Garban, age 53, is Vice President - National Sales of WNC &
Associates, Inc. and has been employed by the Sponsor since 1989. Mr. Garban has
been involved in real estate investment  activities since 1978. Prior to joining
the Sponsor he served as Executive  Vice  President by MRW,  Inc., a real estate
development  and management  firm.  Mr. Garban is a member of the  International
Association of Financial  Planners.  He graduated from Michigan State University
in 1967 with a Bachelor of Science degree in Business Administration.

     N.  Paul  Buckland,  age 36,  is Vice  President  -  Acquisitions  of WNC &
Associates,   Inc.  He  has  been  involved  in  real  estate  acquisitions  and
investments  since 1986 and has been employed with WNC & Associates,  Inc. since
1994.  Prior to that, he served on the development team of the Bixby Ranch which
constructed  apartment  units  and  Class  A  office  space  in  California  and
neighboring states, and as a land acquisition  coordinator with Lincoln Property
Company where he identified and analyzed multi-family developments. Mr. Buckland
graduated from California State University, Fullerton in 1992 with a Bachelor of
Science degree in Business Finance.


     David Turek,  age 44, is Vice President - Originations of WNC & Associates,
Inc. He has been involved  with real estate  investment  and finance  activities
since 1976 and has been employed by WNC & Associates, Inc. since 1996. From 1995
to 1996,  Mr.  Turek served as a  consultant  for a national Tax Credit  sponsor
where he was  responsible  for on-site  feasibility  studies  and due  diligence
analyses of Tax Credit  properties.  From 1990 to 1995,  he was  involved in the
development  of  conventional  and  tax  credit  multi-family  housing.  He is a
Director with the Texas Council for Affordable  Rural Housing and graduated from
Southern Methodist University in 1976 with a Bachelor of Business Administration
degree.

     Kay L. Cooper, age 62, is a Director of WNC & Associates,  Inc. Mrs. Cooper
was the founder and sole proprietor of Agate 108, a manufacturer and retailer of
home  accessory  products,  from 1975 until 1998.  She is the wife of Wilfred N.
Cooper,  Sr.,  the mother of Wilfred  N.  Cooper,  Jr. and the sister of John B.
Lester,  Jr. Ms. Cooper graduated from the University of Southern  California in
1958 with a Bachelor of Science degree.
  
                                     11
<PAGE>

Item 11.  Executive Compensation

The Partnership has no officers,  employees,  or directors.  However,  under the
terms of the  Partnership  Agreement the Partnership is obligated to the General
Partners or their affiliates for the following fees:

(a)  Organization  and  Offering  Expenses.  The  Partnership  paid the  General
Partners or their affiliates as of December 31, 1998  approximately  $1,006,000,
consisting of organization costs, commissions and other fees and expenses of the
Partnership's offering of Units of approximately $59,000, $745,000 and $202,000,
respectively.  Of the total paid to the General Partners or its affiliates,  the
entire  approximate  amount of $1,006,000 was paid  (reallowed) to  unaffiliated
persons participating in the Partnership's  offering or rendering other services
in connection with the Partnership's offering.

(b)  Acquisition  fees in an  amount  equal to 6% of the gross  proceeds  of the
Partnership's  offering  ("Gross  Proceeds").  Through  December 31,  1998,  the
aggregate  amount of acquisition  fees of $447,060 have been paid to the General
Partners or its affiliates.

(c) The  Partnership  reimbursed the General  Partnersor  their  affiliatesas of
December 31, 1998 for acquisition expenses expended by such persons on behalf of
the Partnership in the amounts $32,018.

(d) An annual asset management fee in an amount equal to 0.5% of invested assets
(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  Apartment  Complexes  owned by such Local  Limited
Partnerships.).  Fees of $111,691  were  incurred for 1998,  1997,  and 1996. No
amounts were paid during 1998, 1997 or 1996.

(e) The General  Partners  were  allocated  federal and  California  Housing Tax
Credits for 1998 and 1997 as follows:

WNC & ASSOCIATES, INC.

                    1998              1997             1996
                    ----              ----             ----
Federal           $6,719            $6,716           $6,715

WILFRED N. COOPER

                    1998              1997             1996
                    ----              ----             ----
Federal           $  747            $  745           $  746

                                       12
<PAGE>

Item 12.  Security Ownership of Certain Beneficial Owners and Management

Security Ownership of Certain Beneficial Owners

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

Security Ownership of Management

(a)  Security Ownership of Certain Beneficial Owners

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

(b)  Security Ownership of Management

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

(c)  Changes in Control

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

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

Item 13.  Certain Relationships and Related Transactions

All of the  Partnership's  affairs are managed by Associates.  The  transactions
with the General  Partners and Associates are primarily in the form of fees paid
by the Partnership  for services  rendered to the  Partnership,  as discussed in
Item 11 and in the notes to the accompanying financial statements.

                                       13
<PAGE>

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

Financial Statements

     OMITTED.       
     See the Note to Reader in Part II, Item 6.


Exhibits
(3): Articles of incorporation and by-laws:  The registrant is not incorporated.
The Partnership  Agreement is included as Exhibit B to the Prospectus,  filed as
Exhibit 28.1 to Form 10 K for the year ended December 31, 1994.

Material Contracts

10.1 Amended and Restated Agreement of Limited  Partnership of Orland Associates
filed as exhibit 10.1 to the annual report on Form 10-K dated December 31, 1992,
is herein incorporated by reference as Exhibit 10.1.

10.2 Ukiah Terrace, a California Partnership filed as Exhibit 10.2 to the annual
report on Form 10-K dated December 31, 1992, is herein incorporated by reference
as Exhibit 10.2.

10.3 Amended and Restated  Agreement of Limited  Partnership of Northwest Tulare
Associates  filed as  exhibit  10.3 to the  annual  report  on Form  10-K  dated
December 31, 1992, is herein incorporated by reference as Exhibit 10.3.

10.4 Second  Amended and  Restated  Agreement  of Limited  Partnership  of Yucca
Warren Vista, Ltd. filed as exhibit 10.4 to the annual report on Form 10-K dated
December 31, 1992, is herein incorporated by reference as Exhibit 10.4.

10.5 Amended and Restated  Agreement of Limited  Partnership of Woodlake  Garden
Apartments  filed as  exhibit  10.5 to the  annual  report  on Form  10-K  dated
December 31, 1992, is herein incorporated by reference as Exhibit 10.5.

10.6 Amended and Restated  Agreement of Limited  Partnership  of 602 Main Street
Investors filed as exhibit 10.6 to the annual report on Form 10-K dated December
31, 1992, is herein incorporated by reference as Exhibit 10.6.

10.7 Amended and Restated  Agreement of Limited  Partnership of ADI  Development
Partners  filed as exhibit 10.7 to the annual report on Form 10-K dated December
31, 1992, is herein incorporated by reference as Exhibit 10.7.

                                       14
<PAGE>

10.8 Amended and Restated  Agreement of Limited  Partnership  of Bayless  Garden
Apartment  Investors  filed as exhibit  10.8 to the  annual  report on Form 10-K
dated December 31, 1992, is herein incorporated by reference as Exhibit 10.8.

10.9 Third Amended and Restated  Agreement of Limited  Partnership of Twin Pines
Apartments  Associates  filed as exhibit 10.9 to the annual  report on Form 10-K
dated December 31, 1992, is herein incorporated by reference as Exhibit 10.9.

10.10 Amended and Restated Agreement of Limited  Partnership of Blackberry Oaks,
Ltd. filed as exhibit 10.10 to the annual report on Form 10-K dated December 31,
1992, is herein incorporated by reference as Exhibit 10.10.

10.11 Amended and Restated Agreement of Limited  Partnership of Mecca Apartments
II filed as exhibit 10.11 to the annual  report on Form 10-K dated  December 31,
1992, is herein incorporated by reference as Exhibit 10.11.

10.12  Amended and  Restated  Agreement of Limited  Partnership  of Silver Birch
Limited  Partnership  filed as exhibit  10.12 to the annual  report on Form 10-K
dated December 31, 1992, is herein incorporated by reference as Exhibit 10.12.


Reports on Form 8-K

Form 8K Current Report was filed December 22, 1998

                                       15
<PAGE>


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

WNC CALIFORNIA HOUSING TAX CREDITS, L.P.

By:  WNC California Tax Credit Partners III, L.P.   
     General Partner of the Registrant

By:  WNC & Associates, Inc.         
     General Partner of WNC California Tax Credit Partners III, L.P.


By:_/s/ John B. Lester, Jr.
____________________________________________________
John B. Lester, Jr.       
President and Chief Operating Officer of WNC & Associates, Inc.
Date: April 13, 1999


By:_/s/ Michael L. Dickenson 
___________________________________________________
Michael L. Dickenson  Vice-President Finance and 
Chief Financial Officer of WNC & Associates, Inc.
Date: April 13, 1999


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


By:__/s/ Wilfred N. Cooper, Sr.
_________________________________________________
Wilfred N. Cooper, Sr.    
Director and Chairman of the Board    WNC & Associates, Inc.
Date: April 13, 1999


By:_/s/ John B. Lester, Jr.
____________________________________________________
John B. Lester, Jr.        
Director and Secretary of the Board       WNC & Associates, Inc.
Date: April 13, 1999



By:__/s./ David N. Shafer 
___________________________________________________
David N. Shafer   Director of WNC & Associates, Inc.
Date: April 13, 1999



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