FORM 10-K

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   (Mark One)

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

                    For the fiscal year ended March 31, 2002

                                       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.

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

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

                                 (714) 662-5565

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

                                      NONE

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

                      UNITS OF LIMITED PARTNERSHIP INTEREST

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

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


<PAGE>


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

                                  INAPPLICABLE


                       DOCUMENTS INCORPORATED BY REFERENCE

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

                                      NONE


                                       2
<PAGE>



PART I.

Item 1.  Business

Organization

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

The  general   partners  of  the   Partnership   are  WNC  &  Associates,   Inc.
("Associates") and Wilfred N. Cooper, Sr.  (collectively,  the "General Partner"
or "General  Partners").  Wilfred N. Cooper,  Sr.,  through the Cooper Revocable
Trust,  owns 93.65% of the outstanding  stock of Associates.  Wilfred N. Cooper,
Jr., President of Associates, owns 3.01% of the outstanding stock of Associates.
The business of the Partnership is conducted  primarily through  Associates,  as
the Partnership has no employees of its own.

Pursuant to a  registration  statement  filed with the  Securities  and Exchange
Commission,  on March 16, 1989, the  Partnership  commenced a public offering of
10,000 Units of Limited Partnership  Interest ("Units") at a price of $1,000 per
Unit.  As of the close of the public  offering on October 31,  1990,  a total of
7,450 Units representing $7,450,000 had been sold. Holders of Units are referred
to herein as "Limited Partners".

Description of Business

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

In general,  in order to avoid  recapture  of Low Income  Housing  Credits,  the
Partnership  does not  expect  that it will  dispose of its  interests  in Local
Limited Partnerships ("Local Limited Partnership Interests") or approve the sale
by any Local Limited  Partnership of its Housing Complex prior to the end of the
applicable  Compliance  Period.  Because  of  (i)  the  nature  of  the  Housing
Complexes,  (ii) the  difficulty of predicting  the resale market for low-income
housing  15 or more years in the  future,  and (iii) the  ability of  government
lenders to  disapprove  of transfer,  it is not possible at this time to predict
whether the liquidation of the  Partnership's  assets and the disposition of the
proceeds,  if any, in  accordance  with the  Partnership's  Agreement of Limited
Partnership,  as amended by Supplement  No. 1 through  Supplement  No. 9 thereto
(the "Partnership  Agreement"),  will be able to be accomplished promptly at the
end of the 15-year period. If a Local Limited  Partnership is unable to sell its
Housing  Complex,  it is  anticipated  that the local  general  partner  ("Local
General  Partner") will either  continue to operate such Housing Complex or take
such  other  actions as the Local  General  Partner  believes  to be in the best
interest  of the  Local  Limited  Partnership.  Notwithstanding  the  preceding,
circumstances  beyond the  control of the General  Partner or the Local  General
Partners  may occur  during the  Compliance  Period,  which  would  require  the
Partnership  to approve the  disposition  of a Housing  Complex prior to the end
thereof, possibly resulting in recapture of Low Income Housing Credits.

As of March 31, 2002,  the  Partnership  had  invested in eleven  Local  Limited
Partnerships.  Each of these Local Limited  Partnerships  owns a Housing Complex
that is eligible  for the federal  Low Income  Housing  Credit and eight of them
were  eligible for the  California  Low Income  Housing  Credit.  Certain  Local
Limited Partnerships may also benefit from government programs promoting low- or
moderate-income housing.

                                       3
<PAGE>


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

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

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

Item 2. Properties

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

                                        4

<PAGE>


<TABLE>
<CAPTION>
                                                        ------------------------      ----------------------------------------------
                                                           As of March 31, 2002             As of December 31, 2001
                                                        ------------------------      ----------------------------------------------
                                                           Partnership's
                                                              Total                                        Estimated    Encumbrances
                                                           Investment Amount of                            Low Income       of Local
 Partnership Name      Location    General Partner Name    Partnership's Paid to Date  Of Units   Occupancy  Credits    Partnerships
------------------------------------------------------------------------------------------------------------------------------------
<S>                    <C>            <C>                  <C>            <C>             <C>      <C>   <C>            <C>
                                      Philip R. Hammond,
Alta Vista             Orosi          Jr. and Diane M.
Investors              California     Hammond              $  583,000     $ 583,000       42       100%  $   1,274,000  $  1,428,000

                       Anderson,      Douglas W.
BCA Associates         California     Young                   514,000       514,000       40       100%      1,105,000     1,416,000

                                      David J. Michael,
                                      Patrick R.
                                      Sabelhaus and
                                      Professional
Cloverdale Garden      Cloverdale,    Apartment
Apartments             California     Management              617,000       617,000       34        97%      1,387,000     1,630,000


                                      Philip R. Hammond,
Countryway             Mendota,       Jr. and Diane M.
Associates             California     Hammond                 571,000       571,000       41        95%      1,162,000     1,469,000

                                      David J. Michael
                                      and Professional
East Garden            Jamestown,     Apartment
Apartments             California     Management              770,000       770,000       51        98%      1,772,000     2,144,000

                       Shafter,       Douglas W.
HPA                    California     Young                   538,000       538,000       42        86%      1,223,000     1,504,000

                       Knights        Douglas W.
Knights Landing        Landing        Young and Diane
Harbor                 California     L. Young                275,000       275,000       25        92%        446,000       978,000

</TABLE>

                                       5

<PAGE>




<TABLE>
<CAPTION>
                                                           -------------------------   ---------------------------------------------
                                                           As of March 31, 2002        As of December 31, 2001
                                                           -------------------------   ---------------------------------------------
                                                           Partnership's
                                                              Total                                        Estimated    Encumbrances
                                                           Investment Amount of                            Low Income       of Local
 Partnership Name      Location    General Partner Name    Partnership's Paid to Date  Of Units   Occupancy  Credits    Partnerships
------------------------------------------------------------------------------------------------------------------------------------
<S>                    <C>            <C>                 <C>           <C>              <C>       <C>   <C>            <C>
                                      Philip R. Hammond,
Midland Manor          Mendota,       Jr. and Diane M.
Associates             California     Hammond                 383,000       383,000       40        93%        668,000     1,421,000

                                      Richard Parasol
San Jacinto            San Jacinto,   and Richard A.
Associates             California     Gullota                 469,000       469,000       38        97%        830,000     1,776,000

                                      Thomas G. Larson,
                                      William H. Larson
Woodlake               Woodlake,      and Raymond L.
Manor                  California     Tetzlaff                545,000       545,000       44        89%      1,146,000     1,447,000

Yreka Investment       Yreka,         Ronald D.
Group                  California     Bettencourt             538,000       538,000       36       100%      1,174,000     1,462,000
                                                          ------------  ------------  ---------- ------- -------------     ---------

                                                          $ 5,803,000   $ 5,803,000      433        95%  $  12,187,000  $ 16,675,000
                                                          ============  ============    =======    ====  =============  ============

</TABLE>
                                       6


<PAGE>




<TABLE>
<CAPTION>

                                          --------------------------------------------------------------------------
                                                            For the year ended December 31, 2001
                                          --------------------------------------------------------------------------
                                                                                                   Low Income
                                                                                                Housing Credits
                                                                                                  Allocated to
             Partnership Name                 Rental Income             Net Loss                  Partnership
 -------------------------------------------------------------------------------------------------------------------
<S>                                            <C>                   <C>                                         <C>
Alta Vista Investors                           $ 158,000             $ (43,000)                                  99%

BCA Associates                                   162,000               (25,000)                                  99%

Cloverdale Garden Apartments                     190,000               (28,000)                                  99%

Countryway Associates                            160,000               (70,000)                                  99%

East Garden Apartments                           232,000               (34,000)                                  99%

HPA Investors                                    157,000               (58,000)                                  99%

Knights Landing Harbor                           116,000               (25,000)                                  99%

Midland Manor Associates                         152,000               (50,000)                                  99%

San Jacinto Associates                           190,000               (16,000)                                  99%

Woodlake Manor                                   167,000              (114,000)                                  99%

Yreka Investment Group                           166,000               (17,000)                                  99%
                                            ------------           -----------

                                            $ 1,850,000            $ (479,000)
                                            ============           ===========

</TABLE>

                                       7


<PAGE>




                                       11
Item 3.  Legal Proceedings

NONE

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

NONE

PART II.

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

Item 5a.

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

(b)  At March 31, 2002, there were 688 Limited Partners.

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

(d)  No unregistered  securities  were sold by the  Partnership  during the year
     ended March 31, 2002.

Item 5b.

NOT APPLICABLE

Item 6.  Selected Financial Data

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


                                                 March 31                                 December 31
                           ------------------------------------------------------   -------------------------
                                 2002          2001          2000           1999          1998          1997
                           -----------   -----------   -----------   ------------   -----------   -----------
<S>                      <C>           <C>           <C>           <C>            <C>           <C>
ASSETS
Cash and cash
  equivalents            $     12,170  $     44,172  $     47,877  $      61,123  $     66,028  $     78,109
Investments in limited
  partnerships, net           600,843       809,249     1,187,690      1,508,351     1,595,464     2,001,822
                           -----------   -----------   -----------   ------------   -----------   -----------
                         $    613,013  $    853,421  $  1,235,567  $   1,569,474  $  1,661,492  $  2,079,931
                           ===========   ===========   ===========   ============   ===========   ===========

LIABILITIES
Accrued fees and
  expenses due to
  general partner and
  affiliates             $  1,180,524  $  1,080,521  $    957,395  $     848,503  $    820,365  $    705,925

PARTNERS' EQUITY
(DEFICIT)                    (567,511)     (227,100)      278,172        720,971       841,127     1,374,006
                           -----------   -----------   -----------   ------------   -----------   -----------
                         $    613,013  $    853,421  $  1,235,567  $   1,569,474  $  1,661,492  $  2,079,931
                           ===========   ===========   ===========   ============   ===========   ===========
</TABLE>
                                       8

<PAGE>


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

                                    For the Years Ended                For the Three Months          For the Years Ended
                                          March 31                        Ended March 31                 December 31
                            -------------------------------------   ---------------------------   --------------------------
                              2002          2001         2000          1999           1998           1998          1997
                            ----------    ---------    ----------   ------------  ------------  ------------  --------------
                                                                                   (Unaudited)
<S>                       <C>          <C>           <C>            <C>           <C>           <C>           <C>
Loss from operations      $  (139,316) $   (146,597) $   (142,543)  $   (37,519)  $   (32,603)  $   (144,721) $    (137,368)
Equity in loss from
  limited partnerships       (201,095)     (358,675)     (300,256)      (82,637)     (104,625)      (388,158)      (420,868)
                          ------------  ------------    ----------  ------------  ------------  ------------- -------------
Net loss                  $  (340,411) $   (505,272) $   (442,799)  $  (120,156)  $  (137,228)  $    (532,879)$    (558,236)
                          ============  ============    ==========  ============  ============  ============= =============
Net loss allocated to:

   General partners       $    (3,404) $     (5,053) $     (4,428)  $    (1,202)  $    (1,372)  $     (5,329) $      (5,582)
                          ============  ============    ==========  ============  ============  ============  ==============
   Limited partners       $  (337,007) $   (500,219) $   (438,371)  $  (118,954)  $  (135,856)  $   (527,550) $    (552,654)
                          ============  ============    ==========  ============  ============  ============  ==============
Net loss per limited
  partner unit            $    (45.24) $     (67.14) $     (58.84)  $    (15.97)  $    (18.24)  $     (70.81) $      (74.18)
                          ============ ============  =============  ============  ============  ============  ==============
Outstanding weighted
  limited partner units         7,450         7,450         7,450          7,450        7,450          7,450          7,450
                          ============    =========  ============   ============  ============  ============= ==============
</TABLE>


<TABLE>
<CAPTION>
                                    For the Years Ended                 For the Three Months          For the Years Ended
                                          March 31                         Ended March 31                 December 31
                           ---------------------------------------    --------------------------   --------------------------
                              2002          2001          2000           1999          1998           1998           1997
                           -----------    ----------    ----------    -----------  ------------   -----------    -----------
                                                                                    (Unaudited)
<S>                      <C>            <C>           <C>           <C>           <C>          <C>            <C>
Net cash provided by
 (used in):
   Operating activities  $    (34,751)  $    (8,569)  $   (18,747)  $    (5,655)  $       546  $    (15,377)  $    (10,787)
   Investing activities         2,749         4,864         5,501           750           535         3,296          4,953
                         ------------   ------------    ----------    ----------- -----------  -------------  -------------

Net change in cash and
  cash equivalents            (32,002)       (3,705)      (13,246)       (4,905)        1,081       (12,081)        (5,834)

Cash and cash
  equivalents,
  beginning of period          44,172        47,877        61,123        66,028        78,109        78,109         83,943
                           -----------  ------------    ----------    ----------- -----------  -------------  -------------

Cash and cash
  equivalents, end of
  period                 $     12,170   $    44,172   $    47,877   $    61,123   $    79,190  $     66,028   $     78,109
                         ============   ============    ==========    =========== ===========  =============  =============
</TABLE>

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

                                                2001           2000           1999           1998           1997
                                             ------------   ------------   ------------   ------------   ------------
<S>                                        <C>            <C>            <C>            <C>            <C>
Federal                                    $          16  $          59  $          99  $          99  $          99

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

                                       9
<PAGE>


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

Financial Condition

The  Partnership's  assets at March 31, 2002  consisted  primarily of $12,000 in
cash and  aggregate  investments  in the eleven Local  Limited  Partnerships  of
$601,000.  Liabilities  at March 31, 2001  primarily  consisted of $1,179,000 of
accrued annual management fees due to the General Partners.

Results of Operations

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

Year  Ended  March  31,  2001  Compared  to  Year  Ended  March  31,  2000.  The
Partnership's  net  loss for the  year  ended  March  31,  2001 was  $(505,000),
reflecting  an increase of $62,000  from the net loss  experienced  for the year
ended March 31, 2000.  The  increase in net loss is  primarily  due to equity in
losses from limited  partnerships  which  increased by $59,000 to $(359,000) for
the year ended March 31, 2001 from $(300,000) for the year ended March 31, 2000.
Equity in losses of limited  partnerships  increased due to the reduction of the
net  acquisition  fee component of investments in Local Limited  Partnerships to
zero for those Local Limited  Partnerships which would otherwise be below a zero
balance.

Cash Flows

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

Year Ended March 31, 2001  Compared to Year Ended March 31, 2000.  Net cash used
during the year ended March 31, 2001 was $(4,000), compared to net cash used for
the  year  ended  March  31,  2000 of  $(13,000).  The net cash  used  primarily
represents  cash used for operating  expenses net of minimal cash  distributions
from Local Limited Partnerships.

During the years ended March 31, 2002, 2001 and 2000,  accrued  payables,  which
consist  primarily of related party  management fees due to the General Partner,
increased by $100,000, $123,000 and $109,000,  respectively. The General Partner
does not  anticipate  that  these  accrued  fees will be paid until such time as
capital   reserves  are  in  excess  of  future   foreseeable   working  capital
requirements of the partnership.

The  Partnership   currently  has  insufficient  working  capital  to  fund  its
operations.  WNC has agreed to continue providing advances  sufficient enough to
fund the operations and working capital  requirements of the Partnership through
at least April 1, 2003.

Impact of New Accounting Pronouncement

In October 2001,  the FASB issued  Statement of Financial  Accounting  Standards
No.144,"Accounting  for the Impairment or Disposal of Long-Lived Asssets" ("SFAS
144"), which addresses  accounting and financial reporting for the impairment or
disposal of long-lived assest.  SFAS 144 is effective for fiscal years beginning
after December 15, 2001, and generally, is to be applied prospectively.  We have
not yet  completed  our  evaluation  of the impact of SFAS 144 on our  financial
position or results of operations.

Item 7A.  Quantitative and Qualitative Disclosures about Market Risk

NOT APPLICABLE

Item 8.  Financial Statements and Supplementary Data

                                       10

<PAGE>


               Report of Independent Certified Public Accountants


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



We have audited the  accompanying  balance sheets of WNC California  Housing Tax
Credits, L.P. (a California Limited Partnership) (the "Partnership") as of March
31, 2002 and 2001, and the related  statements of operations,  partners' deficit
and cash  flows  for the  years  ended  March 31,  2002,  2001 and  2000.  These
financial statements are the responsibility of the Partnership's management. Our
responsibility  is to express an opinion on these financial  statements based on
our audits.  A significant  portion of the  financial  statements of the limited
partnerships in which the Partnership is a limited partner were audited by other
auditors  whose reports have been furnished to us. As discussed in Note 2 to the
financial  statements,  the Partnership  accounts for its investments in limited
partnerships   using  the  equity  method.  The  portion  of  the  Partnership's
investment in limited partnerships audited by other auditors represented 79% and
78% of the  total  assets  of the  Partnership  at  March  31,  2002  and  2001,
respectively.  Our opinion, insofar as it relates to the amounts included in the
financial  statements for the limited partnerships which were audited by others,
is based solely on the reports of the other auditors.

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

In our opinion,  based on our audits and the reports of the other auditors,  the
financial statements referred to above present fairly, in all material respects,
the financial position of WNC California Housing Tax Credits, L.P. (A California
Limited  Partnership)  as of March 31,  2002 and 2001,  and the  results  of its
operations and its cash flows for the years ended March 31, 2002, 2001 and 2000,
in conformity with accounting principles generally accepted in the United States
of America.

The  Partnership   currently  has  insufficient  working  capital  to  fund  its
operations.  As  discussed  in  Note  3 to the  financial  statements,  WNC  and
Associates, Inc., the general partner of the Partnership, has agreed to continue
providing advances  sufficient enough to fund the operations and working capital
requirements of the Partnership through at least April 1, 2003.




                                         /S/BDO SEIDMAN, LLP
                                            BDO SEIDMAN, LLP
Orange County, California
April 19, 2002

                                       11
<PAGE>


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

                                 BALANCE SHEETS

<TABLE>
<CAPTION>




                                                                                               March 31
                                                                                     ------------------------------
                                                                                         2002             2001
                                                                                     --------------   -------------
<S>                                                                                <C>             <C>
ASSETS

Cash and cash equivalents                                                          $        12,170 $        44,172
Investments in limited partnerships, net (Notes 2 and 3)                                   600,843         809,249
                                                                                     --------------   -------------

                                                                                   $       613,013 $       853,421
                                                                                     ==============   =============

LIABILITIES AND PARTNERS' DEFICIT

Liabilities:
   Accrued fees and expenses due to General Partner and
     affiliates (Note 3)                                                           $     1,180,524  $    1,080,521

Commitments and contingencies

Partners' deficit:
    General partners                                                                       (70,516)        (67,112)
    Limited partners (10,000 units authorized; 7,450 units
     issued and outstanding)                                                              (496,995)       (159,988)
                                                                                     --------------   -------------

      Total partners' deficit                                                             (567,511)       (227,100)
                                                                                     --------------   -------------

                                                                                   $       613,013  $      853,421
                                                                                     ==============   =============
</TABLE>

                 See accompanying notes to financial statements

                                       12
<PAGE>


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

                            STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>



                                                              For the Years Ended March 31
                                                      ----------------------------------------------
                                                          2002             2001            2000
                                                      --------------    ------------    ------------

<S>                                                 <C>               <C>             <C>
Interest income                                     $           720   $       1,836   $       1,817
Distribution income                                           1,584           1,584               -
                                                      --------------    ------------    ------------
Total income                                                  2,304           3,420           1,817
                                                      --------------    ------------    ------------
Operating expenses:
   Amortization (Note 2)                                      4,562          14,902          14,904
   Asset management fees (Note 3)                           111,854         111,856         111,855
   Legal and accounting                                      18,957          17,995          12,807
   Office                                                     6,247           5,264           4,794
                                                      --------------    ------------    ------------
    Total operating expenses                                141,620         150,017         144,360
                                                      --------------    ------------    ------------
Loss from operations                                       (139,316)       (146,597)       (142,543)

Equity in losses of limited
    partnerships (Note 2)                                  (201,095)       (358,675)       (300,256)
                                                      --------------    ------------    ------------
                                                    $      (340,411)  $    (505,272)  $    (442,799)
                                                      ==============    ============    ============
Net loss allocated to:
   General partners                                 $        (3,404)  $      (5,053)  $      (4,428)
                                                      ==============    ============    ============
   Limited partners                                 $      (337,007)  $    (500,219)  $    (438,371)
                                                      ==============    ============    ============
Net loss per limited partnership unit               $        (45.24)  $      (67.14)  $      (58.84)
                                                      ==============    ============    ============
Outstanding weighted limited partner units                    7,450           7,450           7,450
                                                      ==============    ============    ============
</TABLE>
                 See accompanying notes to financial statements

                                       13
<PAGE>


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

                    STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

                For The Years Ended March 31, 2002, 2001 and 2000
<TABLE>
<CAPTION>


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

<S>                                                       <C>                <C>                <C>
Partners' equity (deficit) at March 31, 1999              $        (57,631)  $        778,602   $        720,971

Net loss                                                            (4,428)          (438,371)          (442,799)
                                                            ---------------     ---------------    ---------------

Partners' equity (deficit) at March 31, 2000                       (62,059)           340,231            278,172

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

Net loss                                                            (3,404)          (337,007)          (340,411)
                                                            ---------------     ---------------    ---------------
Partners' deficit at March 31, 2002                       $        (70,516)  $       (496,995)  $       (567,511)
                                                            ===============     ===============    ===============
</TABLE>
                 See accompanying notes to financial statements

                                       14
<PAGE>


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

                            STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>



                                                                 For the Years Ended March 31
                                                          -------------------------------------------
                                                             2002            2001            2000
                                                          ------------    ------------    -----------
<S>                                                     <C>              <C>            <C>
Cash flows from operating activities:
   Net loss                                             $    (340,411)   $   (505,272)  $   (442,799)
   Adjustments to reconcile net loss to
     net cash used in operating activities:
     Amortization                                               4,562          14,902         14,904
     Equity in losses of limited partnerships                 201,095         358,675        300,256
     Change in accrued fees and expenses due to
       General Partner and affiliates                         100,003         123,126        108,892
                                                          ------------    ------------    -----------
Net cash used in operating activities                         (34,751)         (8,569)       (18,747)
                                                          ------------    ------------    -----------
Cash flows provided by investing activities:
   Distributions from limited partnerships                      2,749           4,864          5,501
                                                          ------------    ------------    -----------
Net decrease in cash and cash equivalents                     (32,002)         (3,705)       (13,246)

Cash and cash equivalents, beginning of period                 44,172          47,877         61,123
                                                          ------------    ------------    -----------
Cash and cash equivalents, end of period                $      12,170   $      44,172   $     47,877
                                                          ============    ============    ===========
SUPPLEMENTAL DISCLOSURE OF
     CASH FLOW INFORMATION:
    Taxes paid                                          $         800   $         800   $        800
                                                          ============    ============    ===========
</TABLE>
                 See accompanying notes to financial statements

                                       15
<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                For The Years Ended March 31, 2002, 2001 and 2000



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 Complex") that are eligible for low
income  housing tax credits.  The local  general  partners  (the "Local  General
Partners")  of  each  Local  Limited   Partnership  retain   responsibility  for
maintaining, operating and managing the Housing Complex.

WNC & Associates, Inc., a California corporation ("WNC"), and Wilfred N. Cooper,
Sr., are general partners of the Partnership (the "General  Partners").  Wilfred
N.  Cooper,  Sr.,  through  the  Cooper  Revocable  Trust  owns  93.65%  of  the
outstanding stock of WNC. Wilfred N. Cooper,  Jr.,  President of WNC, owns 3.01%
of the outstanding stock of WNC.

The Partnership shall continue to be in full force and effect until December 31,
2037 unless terminated prior to that date pursuant to the partnership agreement
or law.

The financial  statements  include only activity relating to the business of the
Partnership,  and do not give  effect to any assets that the  partners  may have
outside of their interests in the Partnership, or to any obligations,  including
income taxes, of the partners.

The  Partnership  Agreement  authorized the sale of up to 10,000 units at $1,000
per Unit  ("Units").  The  offering of Units  concluded in October 1990 at which
time 7,450 Units  representing  subscriptions  in the amount of $7,450,000,  had
been accepted.  The General Partners have a 1% interest in operating profits and
losses,  taxable income and losses,  in cash available for distribution from the
Partnership  and tax credits of the  Partnership.  The limited  partners will be
allocated the  remaining  99% of these items in  proportion to their  respective
investments.

After the limited  partners  have received  proceeds from a sale or  refinancing
equal to their capital  contributions and their return on investment (as defined
in the Partnership  Agreement) and the General  Partners have received  proceeds
equal to their capital contributions from the remainder,  any additional sale or
refinancing  proceeds  will  be  distributed  99% to the  limited  partners  (in
proportion to their respective investments) and 1% to the General Partners.


                                       16
<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2002, 2001 and 2000


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

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

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

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

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

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

Losses from Local Limited  Partnerships for the years ended March 31, 2002, 2001
and 2000 have been recorded by the Partnership  based on nine months of reported
results  provided  by the  Local  Limited  Partnerships  and on three  months of
results  estimated  by  management  of  the  Partnership.  Losses  from  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).


                                       17
<PAGE>



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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2002, 2001 and 2000



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

Offering Expenses
-----------------

Offering  expenses consist of underwriting  commissions,  legal fees,  printing,
filing and  recordation  fees,  and other costs  incurred  with selling  limited
partnership  interests in the Partnership.  WNC is obligated to pay all offering
and  organization  costs in excess of 15% (including  sales  commissions) of the
total  offering  proceeds.  Offering  expenses  are  reflected as a reduction of
limited  partners'  capital  and  amounted to $946,704 at the end of all periods
presented.

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

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

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

The  Partnership   considers  all  highly  liquid   investments  with  remaining
maturities of three months or less when purchased to be cash equivalents.  As of
March 31, 2002 and 2001, the Partnership had no cash equivalents.

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

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

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

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

New Accounting Pronouncement
----------------------------

In October 2001, the FASB issued Statement of Financial Accounting Standards No.
144,  "Accounting  for the  Impairment or Disposal of Long-Lived  Assets" ("SFAS
144"),  addresses  accounting  and  financial  reporting  for the  impairment or
disposal of long-lived assets.  SFAS 144 is effective for fiscal years beginning
after  December 15, 2001,  and generally,  is to be applied  prospectively.  The
Partnership  has not yet completed  its  evaluation of the impact of SFAS 144 on
its financial position or results of operations.


                                       18
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2002, 2001 and 2000


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

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

The  Partnership's  investments  in Local Limited  Partnerships  as shown in the
balance  sheets  at March 31,  2002 and 2001,  are  approximately  $571,000  and
$298,000,  respectively,  greater than the Partnership's equity at the preceding
December  31 as shown in the  Local  Limited  Partnerships'  combined  financial
statements  presented  below.  This  difference  is primarily  due to unrecorded
losses as discussed below, and acquisition, selection and other costs related to
the  acquisition  of  the  investments   which  have  been  capitalized  in  the
Partnership's  investment  account.  The Partnership's  investment is also lower
than  the  Partnership's  equity  as shown in the  Local  Limited  Partnership's
combined  financial  statements  due to the  estimated  losses  recorded  by the
Partnership for the three month period ended March 31.

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

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

At March 31, 2002 and 2001,  the  investment  accounts in certain  Local Limited
Partnerships  have  reached  a zero  balance.  Consequently,  a  portion  of the
Partnership's  estimate  of its share of losses  for the years  ended  March 31,
2002, 2001 and 2000, amounting to approximately $276,000, $116,000 and $103,000,
respectively,  have not been  recognized.  As of March 31, 2002,  the  aggregate
share of net losses not recognized by the Partnership amounted to $550,000.

The following is a summary of the equity method  activity of the  investments in
Local Limited Partnerships for the periods presented:
<TABLE>
<CAPTION>
                                                                           For the Years
                                                                           Ended March 31
                                                             -------------------------------------------
                                                                2002            2001           2000
                                                             ------------    -----------    ------------
<S>                                                        <C>             <C>            <C>
Investments per balance sheet, beginning of period         $     809,249   $  1,187,690   $   1,508,351
Equity in losses of limited partnerships                        (201,095)      (358,675)       (300,256)
Distributions received                                            (2,749)        (4,864)         (5,501)
Amortization of paid acquisition fees and costs                   (4,562)       (14,902)        (14,904)
                                                             ------------    -----------    ------------
Investments per balance sheet, end of period               $     600,843   $    809,249   $   1,187,690
                                                             ============    ===========    ============
</TABLE>


                                       19
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2002, 2001 and 2000


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

The financial  information from the individual financial statements of the Local
Limited Partnerships include rental and interest subsidies. Rental subsidies are
included in total revenues and interest  subsidies are generally  netted against
interest expense.  Approximate combined condensed financial information from the
individual financial statements of the Local Limited Partnerships as of December
31 and for the years then ended is as follows:

                        COMBINED CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>

                                                                                     2001               2000
                                                                                ---------------    ---------------

<S>                                                                           <C>                <C>
ASSETS

Buildings and improvements (net of accumulated
   depreciation for 2001 and 2000 of $7,304,000 and
   $6,668,000, respectively)                                                  $     14,501,000   $     14,964,000
Land                                                                                 1,484,000          1,484,000
Other assets                                                                         1,513,000          1,606,000
                                                                                ---------------    ---------------

                                                                              $     17,498,000   $     18,054,000
                                                                                ===============    ===============

LIABILITIES

Mortgage loans payable                                                        $     16,675,000   $     16,724,000
Due to related parties                                                                 347,000            373,000
Other liabilities                                                                      178,000            165,000
                                                                                ---------------    ---------------

                                                                                    17,200,000         17,262,000
                                                                                ---------------    ---------------

PARTNERS' CAPITAL

WNC California Housing Tax Credits, L.P.                                                30,000            511,000
Other partners                                                                         268,000            281,000
                                                                                ---------------    ---------------

                                                                                       298,000            792,000
                                                                                ---------------    ---------------

                                                                              $     17,498,000   $     18,054,000
                                                                                ===============    ===============
</TABLE>

                                       20

<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2002, 2001 and 2000


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

                   COMBINED CONDENSED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>

                                                                 2001                2000               1999
                                                            ---------------     ---------------    ---------------

<S>                                                       <C>                 <C>                <C>
Revenues                                                  $      1,936,000    $      1,891,000   $      1,849,000
                                                            ---------------     ---------------    ---------------

Expenses:
  Operating expenses                                             1,394,000           1,336,000          1,237,000
  Interest expense                                                 385,000             396,000            401,000
  Depreciation and amortization                                    636,000             625,000            622,000
                                                            ---------------     ---------------    ---------------

   Total expenses                                                2,415,000           2,357,000          2,260,000
                                                            ---------------     ---------------    ---------------

Net loss                                                  $       (479,000)  $        (466,000)  $       (411,000)
                                                            ===============     ===============    ===============

Net loss allocable to the Partnership                     $       (474,000)  $        (461,000)  $       (407,000)
                                                            ===============     ===============    ===============

Net loss recorded by the Partnership                      $       (201,000)  $        (359,000)  $       (300,000)
                                                            ===============     ===============    ===============
</TABLE>

Certain Local Limited  Partnerships have incurred  significant  operating losses
and  have  working  capital  deficiencies.  In the  event  these  Local  Limited
Partnerships continue to incur significant operating losses,  additional capital
contributions  by the  Partnership  and/or  the Local  General  Partners  may be
required to sustain operations of such Local Limited Partnerships. If additional
capital  contributions  are not made when they are required,  the  Partnership's
investment in certain of such Local Limited Partnerships could be impaired,  and
the loss and recapture of the related tax credits could occur.

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

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

          Acquisition  fees equal to 6% of the gross  proceeds  from the sale of
          Units as  compensation  for services  rendered in connection  with the
          acquisition  of  Local  Limited  Partnerships.  As of  the  end of all
          periods  presented,  the  Partnership  incurred  acquisition  fees  of
          $447,060.  Accumulated  amortization  of these  capitalized  costs was
          $329,564 and $300,629, as of March 31, 2002 and 2001, respectively. Of
          the  accumulated  amortization  recorded on the balance sheet at March
          31, 2001,  $80,140 of the related  expense was  reflected as equity in
          losses of limited  partnerships on the statement of operations  during
          the  fourth  quarter of the year  ended  March 31,  2001 to reduce the
          respective  net  acquisition  fee  component of  investments  in local
          limited  partnerships  to zero for those  Local  Limited  Partnerships
          which  would  otherwise  be  below  a zero  balance.  During  2002  an
          additional $24,373 was recognized under the same methodology.

          Reimbursement  of  costs  incurred  by  the  General  Partners  or  an
          affiliate in  connection  with the  acquisition  of the Local  Limited
          Partnerships.  These  reimbursements have not exceeded 3% of the gross
          proceeds. As of the end of all periods presented,  the Partnership had
          incurred  acquisition  costs of $32,018  which have been  included  in
          investments in limited  partnerships and were fully amortized at March
          31, 2002.

          An annual  management fee equal to 0.5% of the invested  assets of the
          Local Limited Partnerships, including the Partnerships allocable share
          of the mortgages.  Management fees of $111,854,  $111,856 and $111,855
          were  incurred  during the years ended March 31, 2002,  2001 and 2000,
          respectively,  of which  $2,430,  $0 and $0 was paid  during the years
          ended March 31, 2002, 2001 and 2000, respectively.


                                     21
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2002, 2001 and 2000



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

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

                                                                                                March 31
                                                                                      -----------------------------
                                                                                         2002            2001
                                                                                      ------------   --------------

<S>                                                                                 <C>            <C>
Reimbursement for expenses paid by the General Partners
   or an affiliate                                                                  $       1,850  $        11,271

Asset management fee payable                                                            1,178,674        1,069,250
                                                                                      ------------   --------------

Total                                                                               $   1,180,524  $     1,080,521
                                                                                      ============   ==============
</TABLE>

The General  Partners do 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.  WNC has agreed to continue providing advances  sufficient enough to
fund the operations and working capital  requirements of the Partnership through
at least April 1, 2003.

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

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

NOTE 5 - QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
----------------------------------------------------

The following is a summary of the quarterly operations for the years ended March
31, 2002 and 2001 (in thousands, except for per share data).
<TABLE>
<CAPTION>

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

               2002
               ----

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

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

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

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

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

Loss per limited partner unit                      (11)               (14)              (11)                (9)
</TABLE>

                                       22
<PAGE>



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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2002, 2001 and 2000



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

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

               2001
               ----

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

Operating expenses                             (35,000)            (36,000)           (33,000)            (46,000)

Equity in losses of limited
     partnerships                              (64,000)            (63,000)           (63,000)           (168,000)

Net loss                                       (99,000)            (98,000)           (96,000)           (212,000)

Loss available to limited partner              (98,000)            (97,000)           (95,000)           (210,000)

Loss per limited partner unit                      (13)                (13)               (13                 (28)
</TABLE>


                                       23

<PAGE>




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

NOT APPLICABLE

PART III.

Item 10.  Directors and Executive Officers of the Registrant

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 Chief Executive Officer, Chairman of the Board, John B. Lester, Jr., David N.
Shafer,  Wilfred N. Cooper, Jr. and Kay L. Cooper. The principal  shareholder of
WNC & Associates, Inc. is a trust established by Wilfred N. Cooper, Sr.

Wilfred  N.  Cooper,  Sr.,  age 71, is the  founder,  Chief  Executive  Officer,
Chairman  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.

Wilfred N.  Cooper,  Jr.,  age 39, is  President,  Chief  Operating  Officer,  a
Director and a member of the Acquisition Committee of WNC & Associates,  Inc. He
is President of, and a registered  principal  with, WNC Capital  Corporation,  a
member firm of the NASD, and is a Director of WNC  Management,  Inc. He has been
involved in investment and  acquisition  activities  with respect to real estate
since he joined the  Sponsor  in 1988.  Prior to this,  he served as  Government
Affairs  Assistant with Honda North America in Washington,  D.C. Mr. Cooper is a
member of the Advisory Board for LIHC Monthly Report,  a Director of NMHC and an
Alternate  Director of NAHB. He graduated  from The American  University in 1985
with a Bachelor of Arts degree.

David N.  Shafer,  age 50, is  Executive  Vice  President,  a Director,  General
Counsel,  and a member of the Acquisition  Committee of WNC & Associates,  Inc.,
and a  Director  and  Secretary  of WNC  Management,  Inc.  Mr.  Shafer has been
involved in real estate investment and acquisition  activities since 1984. Prior
to joining the Sponsor in 1990, he was  practicing  law with a specialty in real
estate and taxation.  Mr.  Shafer is a Director and President of the  California
Council of Affordable  Housing and a member of the State Bar of California.  Mr.
Shafer graduated from the University of California at Santa Barbara in 1978 with
a Bachelor of Arts  degree,  from the New  England  School of Law in 1983 with a
Juris  Doctor  degree (cum laude) and from the  University  of San Diego in 1986
with a Master of Law degree in Taxation.

Thomas J. Riha, age 47, became Chief Financial  Officer  effective January 2001.
Prior to his  appointment  as Chief  Financial  Officer he was 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.

                                       24
<PAGE>



Sy P. Garban,  age 56, 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  of MRW,  Inc.,  a real  estate
development  and management  firm.  Mr. Garban is a member of the  International
Association of Financial  Planners.  He graduated from Michigan State University
in 1967 with a Bachelor of Science degree in Business Administration.

Michael J. Gaber,  age 36, is Vice President - Acquisitions  and a member of the
Acquisitions Committee of WNC & Associates,  Inc. Mr. Gaber has been involved in
real estate acquisition,  valuation and investment activities since 1989 and has
been employed with WNC since 1997.  Prior to joining WNC & Associates,  Inc., he
was involved in the valuation and classification of major assets,  restructuring
of debt and analysis of real estate taxes with the H.F. Ahmanson company, parent
to 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.

David Turek, age 47, 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 65, 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. and the mother of Wilfred N. Cooper,  Jr. Ms. Cooper graduated from
the University of Southern California in 1958 with a Bachelor of Science degree.

Item 11.  Executive Compensation

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

(a)  Annual Asset  Management  Fee. An annual asset  management fee in an amount
     equal  to 0.5% of the  Invested  Assets  of the  Partnership,  as  defined.
     "Invested  Assets" means the sum of the  Partnership's  investment in Local
     Limited Partnerships and the Partnership's allocable share of the amount of
     the  mortgage  loans on and other debts  related to the  Housing  Complexes
     owned by such Local  Limited  Partnerships.  Fees of $112,000 were incurred
     during  each of the  years  ended  March  31,  2002,  2001  and  2000.  The
     Partnership paid the General Partners and or their  affiliates  $3,000,  $0
     and $0 of those fees during the years ended March 31, 2002,  2001 and 2000,
     respectively.

(b)  Operating  Expense.  The Partnership  reimbursed the General Partner or its
     affiliates  for operating  expenses of  approximately  $34,000,  $4,000 and
     $7,000 during the years ended March 31, 2002, 2001 and 2000, respectively.

(c)  Interest  in  Partnership.   The  General   Partners   receive  1%  of  the
     Partnership's  allocated Low Income  Housing  Credits,  which  approximated
     $1,100,  $3,800 and $6,700 for Associates  and $120,  $420 and $750 for Mr.
     Cooper for the  calendar  years ended  December  31,  2001,  2000 and 1999,
     respectively.  The General Partners are also entitled to receive 1% of cash
     distributions.  There were no distributions of cash to the General Partners
     during the years ended March 31, 2002, 2001 and 2000.

Item 12.  Security Ownership of Certain Beneficial Owners and Management

(a)  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.

                                       25
<PAGE>




(b)  Security Ownership of Management

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

(c)  Changes in Control

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

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

Item 13.  Certain Relationships and Related Transactions

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

                                       26
<PAGE>


PART IV.

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

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

          Report of Independent  Certified  Public  Accountants
          Balance Sheets, March 31, 2002 and 2001
          Statements of  Operations for the years ended March 31, 2002, 2001
            and 2000
          Statements of Partners'  Equity (Deficit) for the years ended
            March 31, 2002,  2001 and 2000
          Statements of Cash Flows for the years ended March 31, 2002, 2001
            and 2000
          Notes to Financial Statements

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

          Report  of  Independent  Certified  Public  Accountants  on  Financial
          Statement  Schedules Schedule III - Real Estate Owned by Local Limited
          Partnerships

(b)      Reports on Form 8-K.
         -------------------

1.       NONE.

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

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

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

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

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

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

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

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

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

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

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

                                       27

<PAGE>



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

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

21.1     Financial Statements of Yreka Investment Group, as of and for the years
         ended  December 31, 1999 and 1998 together with  Independent  Auditors'
         Report  thereon filled as exhibit 21.1 on Form 10-K dated June 29, 2000
         is hereby incorporated as exhibit 21.1; a significant subsidiary of the
         Partnership.

21.2     Financial Statements of Yreka Investment Group, as of and for the years
         ended  December 31, 2000 and 1999 together with  Independent  Auditors'
         Report  thereon filled as exhibit 21.2 on Form 10-K dated July 20, 2001
         is hereby incorporated as exhibit 21.2; a significant subsidiary of the
         Partnership.


21.3     Financial Statements of Yreka Investment Group, as of and for the years
         ended  December 31, 2001 and 2000 together with  Independent  Auditors'
         Report thereon; a significant subsidiary of the Partnership.

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

                                       28

<PAGE>


Report of  Independent  Certified  Public  Accountants  on  Financial  Statement
Schedules






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


The audits referred to in our report dated April 19, 2002, relating to the 2002,
2001 and 2000 financial  statements of WNC California Housing Tax Credits,  L.P.
(the  "Partnership"),  which are contained in Item 8 of this Form 10-K, included
the audit of the  accompanying  financial  statement  schedules.  The  financial
statement schedules are the responsibility of the Partnership's management.  Our
responsibility is to express an opinion on these financial  statement  schedules
based upon our audits.

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



                                         /S/BDO SEIDMAN, LLP
                                            BDO SEIDMAN, LLP

Orange County, California
April 19, 2002

                                       29
<PAGE>


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

                                         -------------------------------  ----------------------------------------------------------
                                             As of March 31, 2002         As of December 31, 2001
                                         -------------------------------  ----------------------------------------------------------
                                           Total Investment   Amount of    Encumbrances
                                           in Local Limited   Investment  of Local Limited  Property and    Accumulated     Net Book
          Partnership Name      Location    Partnerships      Paid to Date  Partnerships    Equipment       Depreciation       Value
------------------------------------------------------------------------  ----------------------------------------------------------
<S>                             <C>          <C>             <C>           <C>             <C>              <C>          <C>

Alta Vista                      Orosi
Investors                       California   $    583,000    $   583,000   $  1,428,000    $  2,092,000      $ 857,000   $ 1,235,000

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

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

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

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

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

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

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

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

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

Yreka Investment                Yreka
Group                           California        538,000        538,000      1,462,000       2,044,000        528,000     1,516,000
                                             -------------   ------------  -------------   -------------   -----------  ------------
                                             $  5,803,000    $ 5,803,000   $ 16,675,000    $ 23,289,000    $ 7,304,000  $ 15,985,000
                                             =============   ============  =============   =============   ===========  ============
</TABLE>

                                       30
<PAGE>


WNC California Housing Tax Credits, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2002
<TABLE>
<CAPTION>
                                   ----------------------------------------------------------------------------
                                                      For the year ended December 31, 2001
                                   ----------------------------------------------------------------------------
                                                                          Year                     Estimated
                                                                      Investment                  Useful Life
     Partnership Name                 Rental Income       Net Loss      Acquired       Status        (Years)
---------------------------------------------------------------------------------------------------------------
<S>                                <C>                <C>                 <C>          <C>                <C>
Alta Vista Investors               $    158,000       $  (43,000)         1989         Completed          27.5

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

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

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

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

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

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

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

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

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

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

                                       31

<PAGE>



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

                                          ------------------------------  ----------------------------------------------------------
                                           As of March 31, 2001           As of December 31, 2000
                                          ------------------------------  ----------------------------------------------------------
                                           Total Investment   Amount of    Encumbrances
                                           in Local Limited   Investment  of Local Limited  Property and    Accumulated     Net Book
          Partnership Name      Location    Partnerships      Paid to Date  Partnerships    Equipment       Depreciation       Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                             <C>          <C>             <C>           <C>             <C>              <C>          <C>

Alta Vista                      Orosi
Investors                       California   $    583,000    $   583,000   $  1,432,000    $  2,044,000      $ 782,000   $ 1,262,000

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

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

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

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

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

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

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

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

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

Yreka Investment                Yreka
Group                           California        538,000        538,000      1,467,000       2,044,000        491,000     1,553,000
                                             -------------   ------------  -------------   -------------   -----------  ------------
                                             $  5,803,000    $ 5,803,000   $ 16,724,000    $ 23,116,000    $ 6,668,000  $ 16,448,000
                                             =============   ============  =============   =============   ===========  ============
</TABLE>

                                       32
<PAGE>

WNC California Housing Tax Credits, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2001
<TABLE>
<CAPTION>
                                   ----------------------------------------------------------------------------
                                                      For the year ended December 31, 2001
                                   ----------------------------------------------------------------------------
                                                                          Year                     Estimated
                                                                      Investment                  Useful Life
     Partnership Name                 Rental Income       Net Loss      Acquired       Status        (Years)
---------------------------------------------------------------------------------------------------------------
<S>                                <C>                <C>                 <C>          <C>                <C>
Alta Vista Investors               $    160,000       $  (48,000)         1989         Completed          27.5

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

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

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

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

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

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

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

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

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

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

                                       33

<PAGE>

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


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

Alta Vista                      Orosi
Investors                       California   $    583,000    $   583,000   $  1,436,000    $  2,044,000      $ 709,000   $ 1,335,000

BCA                             Anderson
Associates                      California        514,000        514,000      1,425,000       2,017,000        517,000     1,500,000

Cloverdale Garden               Cloverdale
Apartments                      California        617,000        617,000      1,638,000       2,154,000        428,000     1,726,000

Countryway                      Mendota
Associates                      California        571,000        571,000      1,478,000       2,085,000        741,000     1,344,000

East Garden                     Jamestown
Apartments                      California        770,000        770,000      2,156,000       2,901,000        573,000     2,328,000

HPA                             Shafter
Investors                       California        538,000        538,000      1,511,000       2,186,000        542,000     1,644,000

Knights                         Knights
Landing                         Landing
Harbor                          California        275,000        275,000        984,000       1,350,000        343,000     1,007,000

Midland Manor                   Mendota
Associates                      California        383,000        383,000      1,428,000       1,824,000        575,000     1,249,000

San Jacinto                     San Jacinto
Associates                      California        469,000        469,000      1,786,000       2,349,000        417,000     1,932,000

Woodlake                        Woodlake
Manor                           California        545,000        545,000      1,456,000       2,137,000        744,000     1,393,000

Yreka Investment                Yreka
Group                           California        538,000        538,000      1,471,000       2,044,000        454,000     1,590,000
                                             -------------   ------------  -------------   -------------   -----------  ------------
                                             $  5,803,000    $ 5,803,000   $ 16,769,000    $ 23,091,000    $ 6,043,000  $ 17,048,000
                                             =============   ============  =============   =============   ===========  ============
</TABLE>

                                       34
<PAGE>


WNC California Housing Tax Credits, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2000
<TABLE>
<CAPTION>
                                   ----------------------------------------------------------------------------
                                                      For the year ended December 31, 1999
                                   ----------------------------------------------------------------------------
                                                                          Year                     Estimated
                                                                      Investment                  Useful Life
     Partnership Name                 Rental Income       Net Loss      Acquired       Status        (Years)
---------------------------------------------------------------------------------------------------------------
<S>                                <C>                <C>                 <C>          <C>                <C>
Alta Vista Investors               $    161,000       $  (36,000)         1989         Completed          27.5

BCA Associates                          150,000          (32,000)         1989         Completed            40

Cloverdale Garden Apartments            181,000          (30,000)         1989         Completed            40

Countryway Associates                   165,000          (49,000)         1989         Completed          27.5

East Garden Apartments                  227,000          (29,000)         1989         Completed            40

HPA Investors                           158,000          (40,000)         1989         Completed            40

Knights Landing Harbor                  120,000          (13,000)         1989         Completed            40

Midland Manor Associates                147,000          (44,000)         1990         Completed          27.5

San Jacinto Associates                  130,000          (55,000)         1990         Completed            50

Woodlake Manor                          178,000          (57,000)         1989         Completed            30

Yreka Investment Group                  155,000          (26,000)         1989         Completed            50
                                   ------------       -----------
                                   $  1,772,000       $ (411,000)
                                   ============       ===========
</TABLE>

                                       35
<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 & Associates, Inc., General Partner


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

Date:  May 23, 2002


By:  /s/ Thomas J. Riha
     ------------------
Thomas J. Riha, Vice-President
Chief Financial Officer of WNC & Associates, Inc.

Date:  May 23, 2002


By:  /s/ Wilfred N. Cooper, Sr.
     --------------------------
Wilfred N. Cooper, Sr., General Partner

Date: May 23, 2002

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


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

Date:  May 23, 2002


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

Date:  May 23, 2002








                                       36
<PAGE>








Exhibit
Number              Exhibit Description

EX-21.3             Financial Statements of Yreka Investment Group.



                             YREKA INVESTMENT GROUP
                        A California Limited Partnership


                                    CONTENTS



                                                                            Page
INDEPENDENT AUDITORS' REPORT ON THE
  FINANCIAL STATEMENTS                                                       1


FINANCIAL STATEMENTS
  Balance Sheets                                                             2
  Statements of Operations                                                 3 - 5
  Statements of Changes in Partners' Capital                                   6
  Statements of Cash Flows                                                 7 - 8
  Notes to Financial Statements                                           9 - 14


INDEPENDENT AUDITORS' REPORT ON THE
  SUPPORTING DATA REQUIRED BY USDA/RD                                        15


SUPPORTING DATA REQUIRED BY USDA/RD                                      16 - 26


INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND ON
  INTERNAL CONTROL OVER FINANCIAL REPORTING BASED
  ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
  ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS                          27 - 28


<PAGE>

                          INDEPENDENT AUDITORS' REPORT



To the Partners
Yreka Investment Group
A California Limited Partnership

We have audited the  accompanying  balance sheets of Yreka  Investment  Group, a
California  Limited  Partnership,  as of  December  31,  2001 and 2000,  and the
related statements of operations,  changes in partners' capital,  and cash flows
for the years then ended.  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 auditing standards generally accepted
in the United States of America and Government  Auditing Standards issued by the
Comptroller  General of the 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.  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 Yreka Investment Group as of
December 31, 2001 and 2000, and the results of its operations and its cash flows
for the years then ended,  in conformity with  accounting  principles  generally
accepted in the United States of America.

In accordance with Government Auditing  Standards,  we have also issued a report
dated  January  10,  2002,  on our  consideration  of Yreka  Investment  Group's
internal  control over financial  reporting and our tests of its compliance with
certain provisions of laws, regulations, contracts and grants.


                                      /S/TATE,PROPP,BEGGS & SUGIMOTO
                                          An Accountancy Corporation


January 10, 2002
Sacramento, California

<PAGE>



                             YREKA INVESTMENT GROUP
                        A California Limited Partnership

                                 BALANCE SHEETS
                           December 31, 2001 and 2000
<TABLE>
<CAPTION>



                                     ASSETS

                                                                                                2001                 2000
                                                                                           ----------------    -----------------
<S>                                                                                        <C>                 <C>
Current Project Assets:
   Cash                                                                                    $                   $
                                                                                                     11,657               8,830
   Restricted cash:
     Tenant security deposits                                                                         8,750               8,750
     Taxes and insurance                                                                              5,850               8,662
     USDA/RD reserve                                                                                140,717             133,138
   Accounts receivable                                                                                8,610               2,022
   Prepaid expenses                                                                                   2,730               2,388
                                                                                           ----------------    -----------------

       Total current project assets                                                                 178,314             163,790

Property and equipment                                                                            1,515,961           1,552,817
                                                                                           ----------------    -----------------

         Total Assets                                                                      $      1,694,275      $    1,716,607
                                                                                           ================    =================

                                         LIABILITIES AND PARTNERS' CAPITAL

Current Project Liabilities:
   Tenant security deposits                                                                $                   $          8,750
                                                                                                      8,750
   Note payable, current portion                                                                      5,148               4,718
                                                                                           ---------------     -----------------

       Total current project liabilities                                                             13,898              13,468

Long-Term Project Liabilities:
   Note payable, less current portion                                                             1,456,932           1,462,080

Non-Project Liabilities:
   Due to related party                                                                               2,400               2,400
                                                                                           ---------------     -----------------

       Total liabilities                                                                          1,473,230           1,477,948

Partners' capital                                                                                   221,045             238,659
                                                                                           ---------------     -----------------

         Total Liabilities and Partners' Capital                                           $      1,694,275        $  1,716,607
                                                                                           ===============     =================
</TABLE>

                  The accompanying notes are an integral part
                          of these financial statements
                                       2
<PAGE>


                             YREKA INVESTMENT GROUP
                        A California Limited Partnership

                            STATEMENTS OF OPERATIONS
                 For the Years Ended December 31, 2001 and 2000
<TABLE>
<CAPTION>


                                                                                                2001                 2000
                                                                                           ----------------    -----------------
<S>                                                                                        <C>                 <C>
Project Operating Income:
   Gross rent                                                                              $        64,362     $        61,426
   Rental assistance                                                                               103,848              96,308
   Less vacancies                                                                                   (2,177)             (2,462)
                                                                                           ----------------    -----------------
   Net rent                                                                                        166,033             155,272
   Other project income:
      Late charges                                                                                     324                 245
      Laundry income                                                                                 1,645               2,292
      Tenant damages                                                                                 2,109               1,866
   Interest income                                                                                   4,019               4,438
   Miscellaneous income                                                                                  -                 114
                                                                                           ----------------    -----------------

       Total project operating income                                                              174,130             164,227
                                                                                           ----------------    -----------------

Project Operating Expenses:
   Maintenance and operating:
      Caretaker                                                                                      8,978               7,384
      Supplies                                                                                       2,257               2,802
      Painting and decorating                                                                          531                 665
      General maintenance and repairs                                                                  967               3,563
      Snow removal                                                                                       -                  25
      Elevator maintenance                                                                               -                   -
      Grounds maintenance                                                                              480               1,608
      Services                                                                                         566                 429
      Furniture and furnishings replacement                                                          2,113               2,578
      Other operating expenses                                                                           -                   -
                                                                                           ----------------    -----------------

       Total maintenance and operating                                                              15,892              19,054
                                                                                           ----------------    -----------------

   Utilities:
      Electricity                                                                                    1,919               1,548
      Water                                                                                          9,460               8,228
      Sewer                                                                                          7,385               7,074
      Heating fuel/other                                                                             3,866               2,983
      Garbage and trash removal                                                                      3,510               3,434
     Other utilities                                                                                (2,191)                  -
                                                                                           ----------------    -----------------

       Total utilities                                                                              23,949              23,267
                   The accompanying notes are an integral part                             ----------------     -----------------
                          of these financial statements

</TABLE>
                                       3
<PAGE>




                             YREKA INVESTMENT GROUP
                        A California Limited Partnership

                      STATEMENTS OF OPERATIONS (CONTINUED)
                 For the Years Ended December 31, 2001 and 2000
<TABLE>
<CAPTION>


                                                                                                2001                 2000
                                                                                           ----------------    -----------------
<S>                                                                                        <C>                 <C>
Project Operating Expenses (Continued):
   Administrative:
     Manager                                                                               $                   $         11,628
                                                                                                      9,832
     Management fees                                                                                 17,928              17,064
      Accounting/auditing                                                                             4,120               4,000
     Bookkeeping                                                                                        864                 864
     Legal                                                                                                -               1,685
     Advertising                                                                                        151                 352
     Telephone                                                                                          815                 978
     Office supplies                                                                                  2,536               2,547
     Office furniture and equipment                                                                     293                 428
     Training expense                                                                                     -                 467
     Health insurance                                                                                 3,314               2,073
     Payroll taxes                                                                                    1,831               1,712
     Worker's compensation insurance                                                                  2,616               2,297
     Other administrative expenses                                                                      946                 938
                                                                                           ----------------    -----------------

       Total administrative                                                                          45,246              47,033
                                                                                           ----------------    -----------------

   Taxes and insurance:
     Real estate taxes                                                                               13,551              14,539
     Special assessments                                                                                  -                   -
     Other taxes, fees and permits                                                                      899                 905
     Property insurance                                                                               4,540               4,174
     Other insurance                                                                                    578                 493
                                                                                           ----------------    -----------------

       Total taxes and insurance                                                                     19,568              20,111
                                                                                           ----------------    -----------------

       Total project operating expenses                                                             104,655             109,465

                                                                                           ----------------    -----------------
</TABLE>

                   The accompanying notes are an integral part
                          of these financial statements
                                        4
<PAGE>

                             YREKA INVESTMENT GROUP
                        A California Limited Partnership

                      STATEMENTS OF OPERATIONS (CONTINUED)
                 For the Years Ended December 31, 2001 and 2000
<TABLE>
<CAPTION>


                                                                                                2001                 2000
                                                                                           ----------------    -----------------
<S>                                                                                         <C>                  <C>
Other Project Income (Expenses):
   Interest subsidy - PASS Credit                                                           $       94,672      $       94,672
   Depreciation and amortization                                                                   (36,856)            (36,856)
   Interest expense:
     USDA/RD 1% interest                                                                           (33,487)            (33,881)
     Interest subsidy                                                                              (94,672)            (94,672)
   Authorized capital improvements from USDA/RD reserve                                            (13,050)            (11,832)
                                                                                           ----------------    -----------------

       Total other project income (expenses)                                                       (83,393)                  )
                                                                                           ----------------    -----------------

Non-Project Expenses:
   Partnership administration fee                                                                    2,400               2,400
   Tax administration fee                                                                              800                 800
                                                                                           ----------------    -----------------

         Total non-project expenses                                                                  3,200               3,200
                                                                                           ----------------    -----------------

         Net loss                                                                           $      (17,118)     $      (31,007)
                                                                                           ================    =================
</TABLE>
                   The accompanying notes are an integral part
                          of these financial statements
                                        5
<PAGE>



                             YREKA INVESTMENT GROUP
                        A California Limited Partnership

                   STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
                 For the Years Ended December 31, 2001 and 2000
<TABLE>
<CAPTION>


                                                             General                 Limited
                                                             Partner                 Partner
                                                       --------------------     ------------------
                                                                                       WNC
                                                                                   California
                                                            Ronald D.                Housing
                                                           Bettencourt             Tax Credits               Total
                                                       --------------------     ------------------    --------------------

<S>                                                    <C>                      <C>                      <C>
Balance, December 31, 1999                             $         1,515          $         268,647        $      270,162

Return on investment                                                (5)                      (491)                 (496)

Net loss                                                          (310)                   (30,697)              (31,007)
                                                       --------------------     ------------------    --------------------

Balance, December 31, 2000                                       1,200                    237,459               238,659

Return on investment                                                (5)                      (491)                 (496)

Net loss                                                          (171)                   (16,947)              (17,118)
                                                       --------------------     ------------------    --------------------

Balance, December 31, 2001                             $         1,024          $         220,021        $      221,045
                                                       ====================     ==================    ====================
</TABLE>


                   The accompanying notes are an integral part
                          of these financial statements
                                        6
<PAGE>

                             YREKA INVESTMENT GROUP
                        A California Limited Partnership

                            STATEMENTS OF CASH FLOWS
                 For the Years Ended December 31, 2001 and 2000
                                Increase in Cash
<TABLE>
<CAPTION>



                                                                                                2001                 2000
                                                                                           ----------------    -----------------
<S>                                                                                         <C>                  <C>
Cash Flows From Operating Activities:
   Cash received from tenants for rent                                                      $      159,445       $      158,111
   Miscellaneous cash received                                                                       8,097                8,955
   Cash paid to suppliers and employees and
     for other restricted cash                                                                    (117,635)            (111,106)
   Mortgage interest paid                                                                          (33,487)             (33,881)
   Limited partnership tax paid                                                                       (800)                (800)
                                                                                           ----------------    -----------------

     Net cash provided by operating activities                                                      15,620               21,279
                                                                                           ----------------    -----------------

Cash Flows From Investing Activities:
  Deposits to the USDA/RD reserve                                                                  (24,480)             (24,311)
  Withdrawals from the USDA/RD reserve                                                              16,901               15,986
                                                                                           ----------------    -----------------

     Net cash used by investing activities                                                          (7,579)              (8,325)
                                                                                           ----------------    -----------------

Cash Flows From Financing Activities:
    Principal payments on note payable                                                              (4,718)              (4,324)
    Return on investment                                                                              (496)                (496)
                                                                                           ----------------    -----------------

      Net cash used by financing activities                                                         (5,214)              (4,820)
                                                                                           ----------------    -----------------

Increase in cash                                                                                     2,827                8,134

Cash, beginning of year                                                                              8,830                  696
                                                                                           ----------------    -----------------

Cash, end of year                                                                          $        11,657     $          8,830
                                                                                           ================    =================
</TABLE>
                   The accompanying notes are an integral part
                          of these financial statements
                                       7
<PAGE>






                             YREKA INVESTMENT GROUP
                        A California Limited Partnership

                      STATEMENTS OF CASH FLOWS (CONTINUED)
                 For the Years Ended December 31, 2001 and 2000
                                Increase in Cash
<TABLE>
<CAPTION>



<S>                                                                                        <C>                 <C>
Reconciliation of Net Loss to Net
  Cash Provided By Operating Activities:                                                        2001                 2000
                                                                                           ----------------    -----------------

Net loss                                                                                   $                   $       (31,007)
                                                                                                   (17,118)
Adjustments to reconcile net loss to net
   cash provided by operating activities:
      Depreciation and amortization                                                                 36,856              36,856
      (Increase) decrease in accounts receivable                                                    (6,588)              2,839
      Increase in prepaid expenses                                                                    (342)               (108)
      Decrease in other restricted cash                                                              2,812              12,699
                                                                                           ----------------    -----------------

Net cash provided by operating activities                                                  $        15,620     $        21,279
                                                                                           ================    =================
</TABLE>


                   The accompanying notes are an integral part
                          of these financial statements

                                       8
<PAGE>








                             YREKA INVESTMENT GROUP
                        A California Limited Partnership

                          NOTES TO FINANCIAL STATEMENTS
                           December 31, 2001 and 2000



NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Yreka Investment  Group, a California  Limited  Partnership,  was formed in
     October 1988 for the purpose of constructing  and operating a 36-unit rural
     rental  housing  project  located in Yreka,  California,  known as Siskiyou
     Valley  Apartments.  Project  construction  began in February  1989 and was
     completed in November 1989. Rental operations commenced in November 1989.

     The  major  activities  of the  Project  are  governed  by the  Partnership
     agreement and the United States Department of Agriculture/Rural Development
     (USDA/RD)  pursuant to Sections 515 and 521 of the Housing Act of 1949,  as
     amended,  which  provide for interest and rental  subsidies,  respectively.
     USDA/RD has  contracted  with the  Partnership  to make  rental  assistance
     payments to the  Partnership on behalf of qualified  tenants.  The contract
     terminates upon total disbursement of the assistance obligation.

     The following is a summary of significant accounting policies:

          (a)  The  financial  statements  are prepared on the accrual  basis of
               accounting.

          (b)  The Partnership is not an income tax paying entity although, as a
               limited partnership,  it is subject to a limited partnership tax.
               The net income or loss of the  Partnership  passes through to and
               is  reportable  by  the  partners  individually.   Therefore,  no
               provision  for  income  taxes is  reflected  in  these  financial
               statements.

          (c)  Property and equipment is stated at cost.  Assets are depreciated
               over their estimated useful lives using the straight-line method.
               The estimated useful lives range from 5 to 50 years.

          (d)  Loan  acquisition  costs and  construction  period  interest  are
               amortized over 50 years using the straight-line method.

          (e)  The Partnership maintains its cash balances in institutions where
               they  are  insured,  up  to  $100,000,  by  the  Federal  Deposit
               Insurance
               Corporation (FDIC).

                                       9
<PAGE>

                             YREKA INVESTMENT GROUP
                        A California Limited Partnership

                          NOTES TO FINANCIAL STATEMENTS
                           December 31, 2001 and 2000



NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

          (f)  The  presentation  of financial  statements  in  conformity  with
               accounting  principles generally accepted in the Unites 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 differ
               from those estimates.

NOTE 2: TENANT SECURITY DEPOSITS

               Tenant security  deposits are maintained in a separate account at
               a bank insured by the FDIC.

NOTE 3: TAXES AND INSURANCE RESERVE

               A separate bank account has been  established to accumulate  cash
               transfers for the payment of property taxes and insurance. During
               2001 and 2000, $3,000 and 15,900,  respectively,  of unrestricted
               cash was transferred from this interest bearing account.

NOTE 4:         USDA/RD RESERVE

               The loan  agreement  with USDA/RD  requires  cash  transfers to a
               replacement  reserve  account  each year until  $201,600 has been
               accumulated.  Withdrawals  from the  reserve  account may be made
               only with the approval and countersignature of the USDA/RD.


                                       10
<PAGE>

                             YREKA INVESTMENT GROUP
                        A California Limited Partnership

                          NOTES TO FINANCIAL STATEMENTS
                           December 31, 2001 and 2000



NOTE 4:         USDA/RD RESERVE (CONTINUED)

               Changes in the reserve for the years ended  December 31, 2001 and
<TABLE>
<CAPTION>
<S>                                                                                                            <C>
               2000, are as follows:

                Balance, December 31, 1999                                                                     $       124,813

                Deposits                                                                                                20,160
                Interest earned                                                                                          4,151
                Withdrawals                                                                                            (11,832)
                Interest withdrawn                                                                                      (4,151)
                Bank charges                                                                                                (3)
                                                                                                               -----------------

                Balance, December 31, 2000                                                                             133,138

                Deposits                                                                                                20,629
                Interest earned                                                                                          3,851
                Withdrawals                                                                                            (13,050)
                Interest withdrawn                                                                                      (3,851)
                                                                                                               -----------------

                Balance, December 31, 2001                                                                     $       140,717
                                                                                                               =================
</TABLE>

               This account was  underfunded  at December 31, 2001 and 2000,  by
               $2,075 and $470, respectively.

NOTE 5:         PROPERTY AND EQUIPMENT

               Property  and  equipment  at  December  31,  2001 and  2000,  was
               comprised of the following:
<TABLE>
<CAPTION>

                                                                                                  2001                2000
                                                                                           ----------------    -----------------

<S>                                                                                        <C>                 <C>
                Land                                                                       $       157,378     $       157,378
                Building                                                                         1,786,004           1,786,004
                Furniture and equipment                                                            100,405             100,405
                                                                                           ----------------    -----------------

                                                                                                 2,043,787           2,043,787
                Less accumulated depreciation and amortization                                     527,826             490,970
                                                                                           ----------------    -----------------

                   Total property and equipment                                             $    1,515,961      $    1,552,817
                                                                                           ================    =================
</TABLE>

                                       11
<PAGE>

                             YREKA INVESTMENT GROUP
                        A California Limited Partnership

                          NOTES TO FINANCIAL STATEMENTS
                           December 31, 2001 and 2000



NOTE 6:         NOTE PAYABLE

               The  Partnership  has  a  note  payable  to  USDA/RD  in  monthly
               installments  of $11,073  including  interest at 8.75% per annum,
               due  January 1,  2039.  The note is secured by a deed of trust on
               the apartment project.

               The  Partnership has entered into an interest  subsidy  agreement
               with USDA/RD.  USDA/RD provides a monthly interest subsidy in the
               amount of $7,889,  which reduces the  effective  interest rate to
               approximately  1% over  the  term of the  loan.  The  subsidy  is
               credited to subsidy income,  and interest at 8.75% is included in
               interest expense.  The USDA/RD regulatory  agreement provides for
               USDA/RD to establish and control the allowable rents.

               Principal  payments for the succeeding  five years and thereafter
               are as follows:

                                              Year Ending December 31:
                              2002                                         5,148
                              2003                                         5,617
                              2004                                         6,128
                              2005                                         6,687
                              2006                                         7,296
                           Thereafter                                  1,431,204
                                                               -----------------

                             Total                                $    1,462,080
                                                               =================

                    NOTE 7: RELATED PARTY TRANSACTIONS

                    Fees Paid to Related Entities


     The  general  partner of the  Project  is a partner  in The CBM  Management
     Group.  The  general  partner of the Project is also a  shareholder  in the
     following related entities:


               o    The CBM Group,  Inc.  and its  divisions:  CBM  Diversified,
                    Consolidated Building Maintenance, and CBM Landscape.

                    During 2001 and 2000,  The CBM Group,  Inc. was paid $17,928
                    and $17,064, respectively, in management fees, and $864 each
                    year for automation services.  CBM Diversified was paid $490
                    and $408  during  2001 and 2000,  respectively,  for  credit
                    checking fees.


              o    Capital  Resources,  Inc. and its division  Atlantic Vending
                    Services.  During 2001 and 2000,  Atlantic  Vending Services
                    was paid $1,645 and $2,292 for laundry facility maintenance.



                                       12
<PAGE>


                             YREKA INVESTMENT GROUP
                        A California Limited Partnership

                          NOTES TO FINANCIAL STATEMENTS
                           December 31, 2001 and 2000



     NOTE 7: RELATED PARTY TRANSACTIONS (CONTINUED)

          Fees Paid to Related Entities (Continued)

     o    Rural  Housing  Reinsurance,  the surety  company  which  provides the
          insurance  coverage for the Project.  The general  partner owns a less
          than 5%  interest  in the surety  company,  which was paid  $4,882 and
          $4,282 during 2001 and 2000, respectively, for insurance premiums.

          During 2001 and 2000, a tax  administration  fee of $800 was paid each
          year to The CBM Group, Inc. as a non-project expense. (See Note 8.)

          The Project also pays The CBM Group,  Inc. a ten-cent per copy fee for
          bulk copies of forms.

          Fees Paid in Accordance with the Partnership Agreement.

          In accordance  with the  partnership  agreement,  fees for each of the
          years ended  December 31, 2001 and 2000,  were charged to  non-project
          expenses as follows:

          Fee                        Partner                  2001          2000
          Partnership administration Ronald Bettencourt     $2,400        $2,400

          At  December  31,  2001 and 2000,  $2,400 was  payable to the  general
          partner for accrued partnership administration fees.

NOTE 8:         PARTNERSHIP PROFITS, LOSSES AND DISTRIBUTIONS

          Profits  and  losses,  as  adjusted  for  certain  provisions  of  the
          Partnership agreement, are allocated 1% to the general partner and 99%
          to the limited partner.  Under USDA/RD  regulations,  distributions to
          partners may be made from project  operations only to the extent funds
          exceed the required contributions to the cash reserve account.  Annual
          distributions are limited to 8% of the  Partnership's  initial capital
          investment.  If the return on  investment is not paid in a given year,
          any unpaid  portion  may be carried  forward  for one year and paid if
          earned.  During  2001 and 2000,  a portion of the 2000 and 1999 earned
          return on investment,  $3,200 each year,  was used to pay  non-project
          expenses and liabilities.

                                       13
<PAGE>


                             YREKA INVESTMENT GROUP
                        A California Limited Partnership

                          NOTES TO FINANCIAL STATEMENTS
                           December 31, 2001 and 2000



NOTE 9:         TAXABLE LOSS

          A  reconciliation  of the financial  statement net loss to the taxable
          loss of the partnership at December 31, 2001 and 2000, is as follows:
<TABLE>
<CAPTION>

                                                                                                  2001                2000
                                                                                           ----------------    -----------------

<S>                                                                                        <C>                 <C>
                Financial statement net loss                                               $                   $       (31,007)
                                                                                                   (17,118)

                Adjustments:
                  Excess of tax depreciation and amortization over financial
                statement depreciation and amortization                                            (28,999)            (29,609)
                                                                                           ----------------    -----------------

                     Taxable loss                                                          $                   $       (60,616)
                                                                                                   (46,117)
                                                                                           ================    =================
</TABLE>

NOTE 10: CURRENT VULNERABILITY DUE TO CERTAIN CONCENTRATIONS

          The Project's  operations are  concentrated  in the  multifamily  real
          estate  market.  In  addition,  the  Project  operates  in  a  heavily
          regulated  environment.  The  operations of the Project are subject to
          the administrative directives, rules and regulations of federal, state
          and local regulatory agencies, including, but not limited to, USDA/RD.
          Such administrative  directives,  rules and regulations are subject to
          change by an act of congress or an  administrative  change mandated by
          USDA/RD.  Such  changes  may occur with  little  notice or  inadequate
          funding  to  pay  for  the  related  cost,  including  the  additional
          administrative burden, to comply with a change.


                                       14
<PAGE>






















                       SUPPORTING DATA REQUIRED BY USDA/RD
















<PAGE>




                       INDEPENDENT AUDITORS' REPORT ON THE
                       SUPPORTING DATA REQUIRED BY USDA/RD



To the Partners
Yreka Investment Group
A California Limited Partnership

We have audited the financial statements of Yreka Investment Group, a California
Limited  Partnership,  as of and for the year ended  December 31, 2001, and have
issued  our  report  thereon  dated  January  10,  2002.  Our  audit was made in
accordance with auditing  standards  generally  accepted in the United States of
America and Government  Auditing Standards issued by the Comptroller  General of
the United  States  and,  accordingly,  included  such  tests of the  accounting
records and such other  auditing  procedures as we  considered  necessary in the
circumstances.

Our audit was made for the purpose of forming an opinion on the basic  financial
statements taken as a whole. The supplementary  information provided on pages 16
through 26,  including  USDA/RD Form RD 1930-7,  has been prepared in the format
and following the  instructions  of the USDA/RD.  Those  instructions  prescribe
practices  that differ in some respects  from  accounting  principles  generally
accepted in the United States of America.  Accordingly,  the accompanying  forms
are not  intended  to present  financial  position or results of  operations  in
conformity with accounting principles generally accepted in the United States of
America.  The  information  in USDA/RD Form RD 1930-7 has been  subjected to the
auditing procedures applied in the audit of the basic financial  statements and,
in our opinion,  is fairly stated in all material  respects in  accordance  with
practices and instructions prescribed by USDA/RD.

This  report is  intended  solely for filing with  regulatory  agencies  and the
United States Department of Agriculture/Rural Development and is not intended to
be and should not be used by anyone other than these specific parties.



                                        /S/TATE,PROPP,BEGGS & SUGIMOTO
                                            An Accountancy Corporation


January 10, 2002
Sacramento, California

<PAGE>

                             YREKA INVESTMENT GROUP
                        A California Limited Partnership

                      SUPPLEMENTAL INFORMATION REQUIRED FOR
                      2001 ANNUAL REPORTS FOR 515 PROJECTS
<TABLE>
<CAPTION>


<S>                     <C>                                            <C>
                        Requirement                                              Response

1.    Identity of interest.                                            See the audited financial statements of Yreka Investment
                                                                       Group, a California Limited Partnership, as of and for the
                                                                       year ended December 31, 2001, and the accompanying Note 7 -
                                                                       Related Party Transactions, to the audited financial
                                                                       statements dated January 10, 2002.

2.    Funds paid to management firm in excess of the approved
      management fee.                                                  $0

3.    Incumbrance of project accounts.                                 None

4.    Project accounts.                                                Cash, account #12589-08513 maintained at Bank of America,
                                                                       2885 Bell Road, Auburn, CA 95603, with a balance of $11,507,
                                                                       non-interest bearing.

                                                                       Tenant security deposits, account #12589-01408 maintained at
                                                                       Bank of America, 2885 Bell Road, Auburn, CA 95603, with a
                                                                       balance of $8,750, non-interest bearing.

                                                                       Taxes and insurance reserve, account #12587-01409 maintained
                                                                       at Bank of America, 2885 Bell Road, Auburn, CA 95603, with a
                                                                       balance of $5,850, interest at 1.0% annually.

                                                                       USDA/RD reserve, account #3150963973 maintained at Union
                                                                       Bank of California, 874 Lincoln Way, Auburn, CA 95603, with
                                                                       a balance of $4,472, interest at 1.50% annually.

                                                                       USDA/RD reserve, account #190002253 maintained at Bank of
                                                                       Sacramento, 1750 Howe Ave., Suite 100, Sacramento, CA 95825,
                                                                       with a balance of $83,549 interest at 1.40% annually.
</TABLE>

                                       22
<PAGE>

                             YREKA INVESTMENT GROUP
                        A California Limited Partnership

                      SUPPLEMENTAL INFORMATION REQUIRED FOR
                2001 ANNUAL REPORTS FOR 515 PROJECTS (CONTINUED)

<TABLE>
<CAPTION>
<S>                     <C>                                            <C>

                        Requirement                                              Response

4.    Project accounts (continued).                                    USDA/RD reserve, account #92-24126988, maintained at
                                                                       California Federal Bank, 2845 Bell Road, Auburn, CA 95603,
                                                                       with a balance of $52,696, interest at 1.88% annually.

5.    Total cash paid to owners in 2001.                               $3,696 return on investment was paid in 2001.  Of that
                                                                       amount, $3,200 was used to pay non-project expenses and
                                                                       liabilities and $496 was paid to the owners.
</TABLE>

                                       23
<PAGE>

                             YREKA INVESTMENT GROUP
                        A California Limited Partnership

                      SUPPLEMENTAL INFORMATION REQUIRED FOR
                2001 ANNUAL REPORTS FOR 515 PROJECTS (CONTINUED)


Requirement/Response


6.    USDA/RD reserve activity.

The reserve account  activity for the year ended December 31, 2001 is summarized
below:
<TABLE>
<CAPTION>

                                                                                              Actual              Required
                                                                                         -----------------    -----------------

<S>                                                                  <C>                   <C>                  <C>
     Required reserve balance, December 31, 2000                                                                $      133,608

     Actual reserve balance, December 31, 2000                                             $      133,138

     Required 2001 annual reserve deposit                                                                              20,160

     Required Reserve Adjustment deposit                                                                                2,074
       (See Adjustment to Reserve Requirement below)

     Actual 2001 reserve account deposit                                                          20,629

     Less 2001 authorized withdrawals:
        02/08  Reimburse legal fees                                  $
                                                                                602
        08/24  Replace carpet/vinyl                                           1,650
        08/24  Replace three stairways                                        4,990
        09/21  Replace refrigerator                                             480
        10/04  ADA transition plan                                              550
        12/12  Legal fees over budget                                         2,587
        12/17  Utilities over budget                                          2,191
                                                                     ----------------

     Total 2001 authorized withdrawals                                                           (13,050)             (13,050)
                                                                                         -----------------    -----------------

     Required reserve balance, December 31, 2001                                                                      142,792

     Actual reserve balance, December 31, 2001                                             $      140,717             140,717
                                                                                         =================    -----------------

     Underfunded                                                                                              $          2,075
                                                                                                              =================
</TABLE>


                                       24
<PAGE>

                             YREKA INVESTMENT GROUP
                        A California Limited Partnership

                      SUPPLEMENTAL INFORMATION REQUIRED FOR
                2001 ANNUAL REPORTS FOR 515 PROJECTS (CONTINUED)
<TABLE>
<CAPTION>




                              Requirement/Response


<S>           <C>               <C>            <C>                   <C>                 <C>                       <C>

6.    USDA/RD reserve activity (continued).

      ADJUSTMENT TO RESERVE REQUIREMENT:

      Was Return to Owner earned?
                                                                                                                   Yes

A.       Were there any amount of net funds remaining (non-expended funds) from line items 2, 3, 4 or 9
           from Page 2 of Form 1930-7, exclusive of reserve expenditures?                                          Yes


                                                   Budgeted              Actual              Balance
                                               -----------------     ----------------    -----------------

               Item 2           Supply         $                     $         2,257     $
                                                          2,238                                      (19)
               Item 3           Contract                  3,217                  967               2,250
               Item 4           Painting                    287                  531                (244)
               Item 9           Furniture                 2,200                2,113                  87
                                                                                         -----------------


                                   Net                                                   $          2,074
                                                                                         =================



B.       Were any reserve funds used to items which would normally be classified under line 2, 3,4 or 9
           from page 2 of Form 1930-7, "MFH Project Budget"?                                                       Yes


                                                                                                                $7,120

           Enter the LESSER of (A) or (B) above                                                                 $2,074
</TABLE>


                                       25
<PAGE>

                             YREKA INVESTMENT GROUP
                        A California Limited Partnership

                      SUPPLEMENTAL INFORMATION REQUIRED FOR
                2001 ANNUAL REPORTS FOR 515 PROJECTS (CONTINUED)


                              Requirement/Response
<TABLE>
<CAPTION>


<S>                                                                                                              <C>
7.    Owners' return on investment.

      Total project operating income                                                                             $      174,130

      Less total project operating expenses                                                                            (104,655)
                                                                                                               -----------------

         Net project income                                                                                              69,475

      Less authorized capital improvements from USDA/RD reserve                                                         (13,050)

      Less debt service:
        Principal                                                                                                        (4,718)
        Interest                                                                                                        (33,487)

      Less required USDA/RD reserve contribution                                                                        (20,160)

      Add authorized USDA/RD reserve withdrawals                                                                         13,050
                                                                                                               -----------------

          Surplus cash - sub-total                                                                                       11,110

      Less Reserve Adjustment
        (Transfer is $2,075, net of underfunding)                                                                        (2,074)
                                                                                                               -----------------

           Surplus cash                                                                                        $          9,036
                                                                                                               =================

      Budgeted return on investment                                                                            $          3,696
                                                                                                               =================

      Available for distribution in 2002                                                                       $          3,696

      Less annual partnership management fee
        (Ronald Bettencourt)                                                                                             (2,400)
                                                                                                               -----------------

      Net available for distribution in 2002                                                                              1,296

      Ronald Bettencourt                                                                                                    (13)

      WNC California Housing                                                                                             (1,283)
                                                                                                               -----------------

                                                                                                               $
                                                                                                                              -
                                                                                                               =================
</TABLE>


                                       26
<PAGE>






















       INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND ON INTERNAL CONTROL
       OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS
           PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS














<PAGE>


INDEPENDENT  AUDITORS'  REPORT  ON  COMPLIANCE  AND  ON  INTERNAL  CONTROL  OVER
FINANCIAL  REPORTING  BASED ON AN AUDIT OF  FINANCIAL  STATEMENTS  PERFORMED  IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS



To the Partners
Yreka Investment Group
A California Limited Partnership

We have audited the financial statements of Yreka Investment Group, a California
Limited  Partnership,  as of and for the year ended  December 31, 2001, and have
issued our report  thereon  dated  January 10, 2002.  We conducted  our audit in
accordance with auditing  standards  generally  accepted in the United States of
America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States.

Compliance
----------

As part of obtaining reasonable assurance about whether Yreka Investment Group's
financial  statements are free of material  misstatement,  we performed tests of
its  compliance  with certain  provisions  of laws,  regulations,  contracts and
grants,  noncompliance with which could have a direct and material effect on the
determination of financial statement amounts.  However,  providing an opinion on
compliance  with  those  provisions  was  not an  objective  of our  audit  and,
accordingly,  we do not  express  such an  opinion.  The  results  of our  tests
disclosed a certain immaterial  instance of noncompliance  which is described in
Note 4 to the audited financial statements dated January 10, 2002.

Internal Control Over Financial Reporting
-----------------------------------------

In planning and performing our audit,  we considered  Yreka  Investment  Group's
internal  control over  financial  reporting in order to determine  our auditing
procedures for the purpose of expressing our opinion on the financial statements
and not to provide  assurance on the internal control over financial  reporting.
Our  consideration  of the internal  control over financial  reporting would not
necessarily  disclose  all  matters  in  the  internal  control  over  financial
reporting that might be material weaknesses.  A material weakness is a condition
in  which  the  design  or  operation  of one or  more of the  internal  control
components does not reduce to a relatively low level the risk that misstatements
in amounts that would be material in relation to the financial  statements being
audited may occur and not be detected within a timely period by employees in the
normal  course of  performing  their  assigned  functions.  We noted no  matters
involving the internal  control over financial  reporting and its operation that
we consider to be material weaknesses.




<PAGE>







This  report is  intended  solely for filing with  regulatory  agencies  and the
United States Department of Agriculture/Rural Development and is not intended to
be and should not be used by anyone other than these specific parties.



                                       /S/TATE,PROPP,BEGGS & SUGIMOTO
                                          An Accountancy Corporation


January 10, 2002
Sacramento, California