FORM 10-K

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

(Mark One)

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

For the fiscal year ended December 31, 1997

                                       OR

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

For the transition period from ________ to ___________

Commission file number: 0-20058


                    WNC CALIFORNIA HOUSING TAX CREDITS, L.P.

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

California                                                   33-0316953

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

                                                            (714) 662-5565

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

Title of Securities                               Exchanges on which Registered

NONE                                              NOT APPLICABLE



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

NONE

<PAGE>


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

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


                       DOCUMENTS INCORPORATED BY REFERENCE

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

NONE



                                       2
<PAGE>


Item 1.  Business

Organization

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

The  general   partners  of  the   Partnership   are  WNC  &  Associates,   Inc.
("Associates")   and  Wilfred  N.  Cooper,  Sr.   (collectively,   the  "General
Partners").  Wilfred N. Cooper, Sr through the Cooper Revocable Trust, owns just
less than 70% of the outstanding stock of Associates. John B. Lester, Jr. is the
original limited partner of the Partnership and owns,  through the Lester Family
Trust, just less than 30% of the outstanding  stock of Associates.  The business
of the Partnership is conducted  primarily through Associates as the Partnership
has no employees of its own.

Associates  became  a  general  partner  upon  its  acquisition  of  all  of the
outstanding stock of WNC Resources, Inc. in August 1991. WNC Resources, Inc. was
originally a general partner and Mr. Cooper was its principal shareholder.

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


Description of Business

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


                                       3
<PAGE>

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

As of December 31, 1996,  CHTC has  invested in 11 Local  Limited  Partnerships.
Each of these Local  Limited  Partnerships  owns an  Apartment  Complex  that is
eligible for the federal Low Income  Housing Tax Credit.  Eight of the Apartment
Complexes are eligible for the California Low Income Housing Credit.  All of the
Local Limited  Partnerships also benefit from government  programs promoting low
or moderate income housing.

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

As of December 31, 1997,  all of the Apartment  Complexes  were completed and in
operation.  The Apartment  Complexes owned by the Local Limited  Partnerships in
which  CHTC has  invested  were  developed  by the Local  General  Partners  who
acquired the sites and applied for  applicable  mortgages  and  subsidies.  CHTC
became  the  principal  limited  partner  in these  Local  Limited  Partnerships
pursuant  to  arm's-length   negotiations  with  the  general  partners  of  the
respective Local Limited Partnerships  ("Local General Partners").  As a limited
partner,  CHTC's  liability for obligations of the Local Limited  Partnership is
limited  to its  investment.  The Local  General  Partner  of the Local  Limited
Partnership retains  responsibility for developing,  constructing,  maintaining,
operating and managing the Apartment Complex.

                                       4
<PAGE>

The  following  is a schedule  of the status as of  December  31,  1997,  of the
Apartment  Complexes  owned by Local  Limited  Partnerships  in which  CHTC is a
limited partner.

<TABLE>
<CAPTION>
                                      SCHEDULE OF PROJECTS OWNED BY LOCAL PARTNERSHIPS
                                         IN WHICH THE PARTNERSHIP HAS AN INVESTMENT
                                                   AS OF DECEMBER 31, 1997

                                         No. of              Units                 Units           Percentage of Total
Name & Location                           Apts.            Completed               Occupied        Units Occupied
---------------                           -----            ---------               --------        --------------
<S>                                      <C>               <C>                     <C>             <C>                             
Alta Vista Investors, Ltd.                 42                      42                   41                    98%
  Orisi, California
BCA Associates, Ltd.                       40                      40                   40                    100%
  Anderson, California
Cloverdale Garden Apts., Ltd.              34                      34                   34                    100%
  Cloverdale, California
Countryway Associates, Ltd.                41                      41                   39                    95%
  Mendota, California
East Garden Apartments, Ltd                51                      51                   49                    96%
  Jamestown, California
HPA Investors, Ltd.                        42                      42                   41                    98%
  Shafter, California
Knights Landing, Ltd.                      25                      25                   23                    92%
  Knights Landing, California
Midland Manor Associates                   40                      40                   37                    94%
  Mendota, California
San Jacinto Associates                     38                      38                   26                    68%
  San Jacinto, California
Woodlake Manor, Ltd.                       44                      44                   39                    89%
  Woodlake, California
Yreka Investment Group, Ltd.               36                      36                   35                    97%
  Yreka, California                        --                      --                   --                    -- 
                                          433                     433                  404                    93%
                                          ====                    ====                 ===                    ===
</TABLE>


Item 2.  Properties

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


Item 3.  Legal Proceedings

         NONE.

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

NONE.

                                       5
<PAGE>

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


Item 5a.
(a) The Units are not traded on a public exchange but were sold through a public
offering.  It is not  anticipated  that any public  market will  develop for the
purchase  and  sale  of  any  Unit.  Units  can  be  assigned  only  if  certain
requirements   in  CHTC's   Agreement  of  Limited   Partnership   ("Partnership
Agreement")  are  satisfied.  (b) At December 31,  1997,  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. The Limited Partners received $99 and
$100  federal Low Income  Housing  Credits per Unit for the years 1996 and 1997,
respectively.  State Low Income Housing Credits in the aggregate  amount of $473
to $700 per Limited Partnership Interest were generated from 1989 through 1994.
 Item 6.  Selected Financial Data

<TABLE>
<CAPTION>

                                                    Years Ended December 31,

                            1997               1996              1995                1994                  1993
                            -----              -----             -----               ----                  ----
<S>                      <C>                <C>               <C>                <C>                    <C>   
Revenues                       $2,227             $3,549            $3,911             $2,764                 $2,885

Partnership
operating  expenses         (139,595)          (138,716)         (145,806)          (145,636)              (157,710)

Equity in loss of
Local Partnership           (420,868)          (476,567)         (412,291)          (437,264)              (375,550)
                            --------           --------          --------           ---------              --------

Net loss                   $(558,236)         $(611,734)        $(554,186)         $(580,136)             $(530,375)
                            ========           ========          ========           ========               ========

Net loss per Limited
Partnership Interest     $       (74)       $       (81)      $       (74)           $                  $       (70)
                          ==========         ==========        ==========             =======            ==========
                                                                                         (77)

Total assets               $2,079,931         $2,526,490        $3,027,914         $3,470,515             $3,938,958
                            =========          =========         =========          =========              =========

Net investment in
Local Partnerships         $2,001,822         $2,442,547        $2,943,052         $3,376,715             $3,836,281
                            =========          =========         =========          =========              =========

Capital contributions
payable to Local
Partnerships                      -0-                -0-               -0-                -0-                    -0-
                                   =                  =                 =                  =                      = 
</TABLE>

                                       6
<PAGE>

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

Liquidity and Capital Resources
-------------------------------

 The Partnership raised $7,450,000 from investors by means of a public offering.
The Net Proceeds  available  for  investment  were  disbursed for the payment of
Acquisition Fees and Acquisition  Expenses,  the establishment of Reserves,  the
payment of  operating  expenses  and the  acquisition  of  investments  in Local
Limited Partnerships which own the Apartment Complexes. The Partnership has paid
all capital  contributions due for its investments in Local Limited Partnerships
and has no further obligations for its property investments.

Overall,  as reflected in its Statement of Cash Flows, the Partnership had a net
decrease in cash and cash  equivalents  of  approximately  $5,800 for the period
ended  December  31,  1997.  This  decrease  was due to cash  used by  operating
activities  for the  Partnership of  approximately  $10,800 and cash provided by
investing activities of approximately $5,000 of distributions from Local Limited
Partnerships.

Overall,  as reflected in its Statement of Cash Flows, the Partnership had a net
decrease in cash and cash equivalents of approximately $600 for the period ended
December 31, 1996.  This  decrease was due to cash used by operating  activities
for the  Partnership  of  approximately  $9,600 and cash  provided by  investing
activities  of  approximately   $9,000  of  distributions   from  Local  Limited
Partnerships. Cash provided by operating activities for the two years, consisted
of  interest,  and cash  used  consisted  of  payments  for  operating  fees and
expenses.

It is not  expected  that any of the  Local  Limited  Partnerships  in which the
Partnership has invested will generate cash sufficient to provide  distributions
to The  Partnership of any material  amount.  Distributions  to the  Partnership
would first by used to meet operating expenses of the Partnership, including the
payment of the Asset Management Fee to the General Partner.

The Partnership's  investments are not readily marketable and may be affected by
adverse general economic conditions which, in turn, could substantially increase
the risk of operating  losses for the  Apartment  Complexes,  the Local  Limited
Partnerships  and the  Partnership.  These  problems may result from a number of
factors,   many  of  which  cannot  be  controlled  by  the  General   Partners.
Nevertheless,  the General Partners anticipate that capital raised from the sale
of the Units is sufficient to fund the Partnership's operations.

Upon  completion  of its pubic  offering (in 1991) the  Partnership  established
working  capital  reserves of 3.3% of capital  contributions  (or  approximately
$247,000),  an amount which is anticipated  to be sufficient to satisfy  general
working  capital and  administrative  expense  requirements  of the  Partnership
including  payment of the asset management fee as well as expenses  attendant to
the  preparation  of tax returns and reports to the limited  partners  and other
investor  servicing  obligations of the Partnership.  To the extent that working
capital  reserves  are  insufficient  to satisfy  the cash  requirements  of the
Partnership,  it is anticipated  that  additional  funds would be sought through
bank loans or other institutional financing. The General Partners may also apply
any cash  distributions  received from the local limited  partnerships  for such
purposes or to replenish or increase working capital reserves.

                                       7
<PAGE>

Under its  partnership  agreement the  Partnership  does not have the ability to
assess its partners for additional  capital  contributions to provide capital if
needed  by the  Partnership  or  Local  Limited  Partnerships.  Accordingly,  if
circumstances arise that cause the Local Limited Partnerships to require capital
in addition to that  contributed by the  Partnership and any equity of the Local
General Partners, the only sources from which such capital needs will be able to
be  satisfied  (other than the limited  reserves  available  at the  Partnership
level) will be (i) third-party debt financing  (which may not be available,  if,
as expected, the apartment complexes owned by the local limited partnerships are
already  substantially  leveraged),  (ii)  additional  equity  contributions  or
advances of the Local General Partners,  (iii) other equity sources (which could
adversely  affect the  Partnership's  interest in tax credits,  cash flow and/or
proceeds of sale or refinancing of the apartment complexes and result in adverse
tax  consequences to the Limited  Partners),  or (iv) the sale or disposition of
the apartment  complexes (which could have the same adverse effects as discussed
in (iii) above).  There can be no assurance  that funds from any of such sources
would be readily available in sufficient amounts to fund the capital requirement
of the Local Limited partnerships in question.  If such funds are not available,
the  Local  Limited  Partnerships  would  risk  foreclosure  on their  apartment
complexes if they were unable to renegotiate  the terms of their first mortgages
and any other debt secured by the apartment  complexes to the extent the capital
requirements of the local limited partnerships relate to such debt.


Reserves of the Partnership and reserves of the Local Limited Partnership may be
increased  or  decreased  from time to time by the General  Partner or the Local
General  Partner,  as the case may be,  in order to meet  anticipated  costs and
expenses.  The amount of cash flow  available  for  distribution  and/or Sale or
Refinancing Proceeds, if any, which is available for distribution to the Limited
Partners may be affected accordingly.


Results of Operations
---------------------

As reflected on its  Statements of  Operations,  the  Partnership  had losses of
$558,236, $611,734 and $554,186 for the years ended December 31, 1997, 1996, and
1995,  respectively.  The  component  items of revenue and expense are discussed
below.

Revenue.  Partnership  revenues  consisted  entirely of interest  earned on cash
deposits held in financial institutions as Reserves.  Interest revenue in future
years will be a function  of  prevailing  interest  rates and the amount of cash
balances.  It is anticipated that the Partnership will maintain cash reserves in
an amount  not  materially  in  excess of the  minimum  amount  required  by its
Partnership Agreement, which is 3% of Capital Contributions.

Expenses. The most significant component of operating expenses is expected to be
the Asset Management Fee. The Asset Management Fees is equal to 0.5% of Invested
assets of local Limited  Partnerships:  accordingly the amount to be incurred in
the future is a function of the level of such invested assets (i.e.,  the sum of
the Partnerships'  capital  contributions to the Local Limited Partnerships plus
the Partnership's share of the debts related to the Apartment Complexes owned by
such  Local  Limited  Partnerships).  The annual  management  fee  incurred  was
$111,691,  $111,691,  and $111,691, for the years ended December 31, 1997, 1996,
and 1995, respectively, of which no amounts were paid in such years.

Office expense consists of the Partnership's  administrative  expenses,  such as
accounting and legal fees, bank charges and investor reporting expenses.


                                       8
<PAGE>

Equity in losses from Local Limited  Partnerships.  The Partnership's  equity in
losses from Local Limited Partnerships is equal to 99% of the aggregate net loss
of the Local Limited Partnerships. After rent-up, the Local Limited Partnerships
are  expected to generate  losses  during  each year of  operations;  this is so
because,  although rental income is expected to exceed cash operating  expenses,
depreciation   and  amortization   deductions   claimed  by  the  Local  Limited
Partnerships are expected to exceed net rental income.

The Partnership, as a Limited Partner in the Local Limited Partnerships in which
it  has  invested,  is  subject  to the  risks  incident  to  the  construction,
management,  and ownership of improved real estate. The Partnership  investments
are also subject to adverse general economic  conditions,  and accordingly,  the
status  of  the  national  economy,   including  substantial   unemployment  and
concurrent  inflation,  could increase vacancy levels,  rental payment defaults,
and operating expenses,  which in turn, could substantially increase the risk of
operating losses for the Apartment Complexes.




                                       9
<PAGE>

Item 8.  Financial Statements and Supplementary Data

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

                              FINANCIAL STATEMENTS

                               For The Years Ended
                        December 31, 1997, 1996 and 1995

                                      with

                      INDEPENDENT AUDITORS' REPORT THEREON



<PAGE>








                          INDEPENDENT AUDITORS' REPORT



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
December 31, 1997 and 1996, and the related statements of operations,  partners'
equity  (deficit) and cash flows for the years ended December 31, 1997, 1996 and
1995. 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 did not audit the financial statements of the
limited  partnerships  in which WNC  California  Housing Tax Credits,  L.P. is a
limited  partner.  These  investments,  as discussed in Note 2 to the  financial
statements,  are accounted for by the equity  method.  The  investments in these
limited  partnerships  represented  96%  and  97% of  the  total  assets  of WNC
California Tax Credits, L.P., at December 31, 1997 and 1996,  respectively.  The
financial  statements of the limited partnerships were audited by other auditors
whose reports have been furnished to us, and our opinion,  insofar as it relates
to the amounts included for these limited  partnerships,  is based solely on the
reports of the other auditors.

We  conducted  our  audits  in  accordance  with  generally   accepted  auditing
standards. Those standards require that we plan and perform the audits 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 December 31, 1997 and 1996,  and the results of its
operations  and its cash flows for each of the years ended  December  31,  1997,
1996 and 1995 in conformity with generally accepted accounting principles.





                                                             /s/CORBIN & WERTZ
                                                             -----------------
                                                                CORBIN & WERTZ

Irvine, California
March 18, 1998


<PAGE>


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

                                 BALANCE SHEETS

                           December 31, 1997 and 1996



<TABLE>
<CAPTION>
 
                                                                               1997                   1996
                                                                          ---------------        ----------------
<S>                                                                    <C>                     <C> 

ASSETS

Cash and cash equivalents                                               $         78,109        $          83,943

Investments in limited partnerships (Note 2)                                   2,001,822                2,442,547
                                                                         ---------------         ----------------

                                                                        $      2,079,931        $       2,526,490
                                                                         ===============         ================

LIABILITIES AND PARTNERS' EQUITY (DEFICIT)

Liabilities -
   Accrued fees and expenses due to general partner and
    affiliates (Note 3)                                                 $        705,925        $         594,248
                                                                         ---------------         ----------------

Partners' equity (deficit):
   General partners                                                              (51,100)                 (45,518)
   Limited partners (10,000 units authorized; 7,450 units
    issued and outstanding at December 31, 1997 and 1996)                      1,425,106                1,977,760
                                                                         ---------------         ----------------

         Total partners equity                                                 1,374,006                1,932,242
                                                                         ---------------         ----------------

                                                                        $      2,079,931        $       2,526,490
                                                                         ===============         ================

</TABLE>

                See accompanying notes to financial statements
                                      FS-2
<PAGE>


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

                            STATEMENTS OF OPERATIONS

              For The Years Ended December 31, 1997, 1996 and 1995


<TABLE>
<CAPTION>

                                                                 1997                1996                1995
                                                            ---------------     ---------------     ---------------
<S>                                                        <C>                 <C>  

Interest income                                            $        2,227      $        3,549     $        3,911

Operating expenses:
   Amortization (Note 2)                                           14,904              14,904             15,970
   Partnership management fees (Note 3)                           111,691             111,691            111,691
   Legal and accounting                                             5,339               5,175              7,000
   Office                                                           7,661               6,946             11,145
                                                            -------------       -------------      -------------

         Total operating expenses                                 139,595             138,716            145,806
                                                            -------------       -------------      -------------

Loss from operations                                             (137,368)           (135,167)          (141,895)

Equity in losses from limited partnerships (Note 2)              (420,868)           (476,567)          (412,291)
                                                            -------------       -------------      -------------

Net loss                                                   $     (558,236)     $     (611,734)    $     (554,186)
                                                            =============       =============      =============

Net loss allocable to:
   General partners                                        $       (5,582)     $       (6,117)    $       (5,542)
                                                            =============       =============      =============
   Limited partners                                        $     (552,654)     $     (605,617)    $     (548,644)
                                                            =============       =============      =============

Net loss per weighted number of limited partners
 units                                                     $       (74.18)     $      (81.29)     $       (73.64)
                                                            =============       ============       =============

Outstanding weighted limited partner units                          7,450               7,450              7,450
                                                            =============       =============      =============
</TABLE>

                See accompanying notes to financial statements
                                      FS-3
<PAGE>


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

                    STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

              For The Years Ended December 31, 1997, 1996 and 1995


<TABLE>
<CAPTION>

                                                               General             Limited
                                                               Partners            Partners             Total
                                                            ---------------     ---------------     ---------------
<S>                                                        <C>                 <C>               <C>  

Equity (deficit) - January 1, 1995                         $      (33,859)     $    3,132,021     $    3,098,162

Net loss                                                           (5,542)           (548,644)          (554,186)
                                                            -------------       -------------      -------------

Equity (deficit) - December 31, 1995                              (39,401)          2,583,377          2,543,976

Net loss                                                           (6,117)           (605,617)          (611,734)
                                                            -------------       -------------      -------------

Equity (deficit) - December 31, 1996                              (45,518)          1,977,760          1,932,242

Net loss                                                           (5,582)           (552,654)          (558,236)
                                                            -------------       -------------      -------------

Equity (deficit) - December 31, 1997                       $      (51,100)     $    1,425,106     $    1,374,006
                                                            =============       =============      =============

</TABLE>


                See accompanying notes to financial statements
                                      FS-4
<PAGE>


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

                            STATEMENTS OF CASH FLOWS

              For The Years Ended December 31, 1997, 1996 and 1995


<TABLE>
<CAPTION>

                                                                 1997                1996                1995
                                                            ---------------     ---------------     ---------------
<S>                                                        <C>                 <C>                <C>                   
Cash flows from operating activities:
   Net loss                                                $     (558,236)     $     (611,734)    $     (554,186)
   Adjustments to reconcile net loss to net
    cash used in operating activities:
       Amortization                                                14,904              14,904             15,970
       Equity in loss of limited partnerships                     420,868             476,567            412,291
       Change in other assets                                           -                 358               (284)
       Change in accrued fees and expenses
        due to general partner and affiliates                     111,677             110,310            111,585
                                                            -------------       -------------      -------------

   Net cash used in operating activities                          (10,787)             (9,595)           (14,624)

Cash flows provided by investing activities -
   Distributions from limited partnerships                          4,953               9,034              5,402
                                                            -------------       -------------      -------------

Net decrease in cash and cash equivalents                          (5,834)               (561)            (9,222)

Cash and cash equivalents, beginning of year                       83,943              84,504             93,726
                                                            -------------       -------------      -------------

Cash and cash equivalents, end of year                     $       78,109      $       83,943     $       84,504
                                                            =============       =============      =============


SUPPLEMENTAL DISCLOSURE OF CASH
 FLOW INFORMATION:
   Interest paid                                           $            -      $            -     $            -
                                                            =============       =============      =============
   Taxes paid                                              $          800      $          800     $          800
                                                            =============       =============      =============
</TABLE>

                See accompanying notes to financial statements
                                      FS-5
<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

              For The Years Ended December 31, 1997, 1996 and 1995




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 as a limited partner in other
limited  partnerships which own and operate  multifamily  housing complexes that
are eligible for low income housing tax credits.

WNC & Associates,  Inc., a California  corporation,  and Wilfred N. Cooper, Sr.,
are general  partners of the  Partnership  (the "General  Partner").  The Cooper
Revocable Trust is the principal shareholder of WNC & Associates, Inc.

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 Partnership  Agreement  authorized the sale of up to 10,000 units of Limited
Partnership  Interests  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  Partner has a 1%
interest  in  operating  profits  and  losses of the  Partnership.  The  limited
partners  will be allocated  the  remaining  99% interest in proportion to their
respective investments.

After the limited  partners  have received  proceeds from a sale or  refinancing
equal to their capital  contributions and their return on investment (as defined
in  the   Partnership   Agreement)  and  the  General  Partner  has  received  a
subordinated  disposition  fee (as described in Note 3), any additional  sale or
refinancing  proceeds  will  be  distributed  90% to the  limited  partners  (in
proportion to their respective investments) and 10% to the General Partner.

The Partnership's  investments in limited  partnerships are subject to the risks
incident to the management and ownership of multifamily residential real estate,
and  include  the risks  that  neither  the  Partnership's  investments  nor the
apartment   complexes  owned  by  the  limited   partnerships  will  be  readily
marketable.  Additionally there can be no assurance that the Partnership will be
able to dispose of its interests in the 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
apartment  complexes  and the  Partnership.  The  apartment  complexes  could be
subject to loss through  foreclosure.  In addition,  each limited partnership is
subject to risks relating to  environmental  hazards which might be uninsurable.
Because the Partnership's ability to control its operations will depend on these
and other  factors  beyond the  control of the  General  Partner and the general
partners of the limited partnerships, there can be no assurance that Partnership
operations will be profitable or that the  anticipated  housing tax credits will
be available to limited partners.

                                      FS-6
<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

              For The Years Ended December 31, 1997, 1996 and 1995



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

Method of Accounting For Investment 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 each limited  partnership's  results of operations  and
for  any  distributions   received.  The  accounting  policies  of  the  limited
partnerships are consistent with those of the Partnership. Costs incurred by the
Partnership in acquiring the investments in limited partnerships are capitalized
as part of the investment and are being amortized over 30 years (Note 2).

Losses from limited partnerships allocated to the Partnership are not recognized
to the extent that the investment balance would be adjusted below zero.

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.

Organization Costs
------------------

Organization  costs of $59,142 were being amortized on the straight-line  method
over sixty  months.  Such costs were fully  amortized  at December  31, 1997 and
1996.

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

Offering  expenses consist of underwriting  commissions,  legal fees,  printing,
filing and  recordation  fees,  and other costs  incurred  with selling  limited
partnership  interests in the  Partnership.  The General Partner is obligated to
pay all  offering  and  organization  costs in  excess of 15%  (including  sales
commissions)  of the total  offering  proceeds.  Offering  expenses  amounted to
$946,704  at  December  31, 1997 and 1996 and are  reflected  as a reduction  of
limited partners' capital.

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

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

                                      FS-7
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

              For The Years Ended December 31, 1997, 1996 and 1995


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

Net Loss Per Limited Partner Units
----------------------------------

Net loss per weighted  number of limited  partner  units is computed by dividing
the  limited  partners'  share of net loss by the  weighted  number  of  limited
partner units outstanding during the year.

Reclassifications
-----------------

Certain  prior  year  balances  have been  reclassified  to  conform to the 1997
presentation.

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

As of  December  31,  1997  and  1996,  the  Partnership  has  acquired  limited
partnership  interests  in eleven  limited  partnerships  which own and  operate
apartment  complexes  consisting of 433 apartment units. The respective  general
partners of the limited  partnerships  manage the day to day  operations  of the
limited  partnerships.   Significant  limited  partner  business  decisions,  as
defined, require the approval of the Partnership.  The Partnership, as a limited
partner, is generally entitled to 99% of the operating profits and losses of the
limited partnerships.

The  Partnership's  investment  in  limited  partnerships  as  reflected  in the
accompanying  balance  sheets at December  31, 1997 and 1996,  is  approximately
$208,000 and $225,000,  respectively,  greater than the Partnership's  equity as
shown  in  the  limited  partnerships'   combined  financial  statements.   This
difference is due primarily to acquisition, selection and other costs related to
the  acquisition  of the  limited  partnerships  which were  capitalized  in the
Partnership's  investment  account and to certain costs  incurred by the limited
partnerships  which  were  netted  against  partners'  capital  on  the  limited
partnerships'  financial  statements.  Acquisition,  selection  and other  costs
capitalized by the Partnership are being amortized over 30 years (see Note 3).

The following is a summary of the equity method  activity of the  investments in
limited partnerships for the years ended December 31:
<TABLE>
<CAPTION>

                                                                               1997                   1996
                                                                          ---------------        ----------------
<S>                                                                    <C>                     <C>                   

Investments per balance sheet, beginning of year                        $      2,442,547        $       2,943,052

Equity in loss of limited partnerships                                          (420,868)                (476,567)

Distributions                                                                     (4,953)                  (9,034)

Amortization of capitalized acquisition costs                                    (14,904)                 (14,904)
                                                                         ---------------         ----------------

Investments per balance sheet, end of year                              $      2,001,822        $       2,442,547
                                                                         ===============         ================
</TABLE>

                                      FS-8
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

              For The Years Ended December 31, 1997, 1996 and 1995


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

Approximate  combined  condensed  financial   information  from  the  individual
financial  statements of the limited  partnerships as of December 31 and for the
years then ended is as follows:


                        COMBINED CONDENSED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                               1997                   1996
                                                                          ---------------        ----------------

ASSETS
<S>                                                                    <C>                      <C>                     

Buildings and improvements, net of accumulated
 depreciation for 1997 and 1996 of $4,818,000 and
 $4,200,000, respectively                                               $     16,617,000        $      17,203,000
Land                                                                           1,484,000                1,484,000
Other assets                                                                   1,387,000                1,331,000
                                                                         ---------------         ----------------

         Total assets                                                   $     19,488,000        $      20,018,000
                                                                         ===============         ================

LIABILITIES

Mortgage loans payable                                                  $     16,854,000        $      16,882,000
Other liabilities                                                                483,000                  542,000
                                                                         ---------------         ----------------

         Total liabilities                                                    17,337,000               17,424,000
                                                                         ---------------         ----------------

PARTNERS' CAPITAL

WNC California Housing Tax Credits, L.P.                                       1,794,000                2,218,000
Other partners                                                                   357,000                  376,000
                                                                         ---------------         ----------------

         Total partners' capital                                               2,151,000                2,594,000
                                                                         ---------------         ----------------

                                                                        $     19,488,000        $      20,018,000
                                                                         ===============         ================
</TABLE>

                                      FS-9
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

              For The Years Ended December 31, 1997, 1996 and 1995


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

<TABLE>
<CAPTION>

                                        COMBINED CONDENSED STATEMENTS OF OPERATIONS

                                                                 1997                1996                1995
                                                            ---------------     ---------------     ---------------
<S>                                                        <C>                 <C>                <C>    

Total revenues, including rental and interest
 subsidies                                                 $    1,802,000      $    1,771,000     $    1,783,000
                                                            -------------       -------------      -------------

Expenses:
   Operating expenses                                           1,199,000           1,236,000          1,159,000
   Interest expense                                               410,000             406,000            407,000
   Depreciation and amortization                                  618,000             611,000            633,000
                                                            -------------       -------------      -------------

         Total expenses                                         2,227,000           2,253,000          2,199,000
                                                            -------------       -------------      -------------

Net loss                                                   $     (425,000)     $     (482,000)    $     (416,000)
                                                            =============       =============      ============= 

Net loss allocable to the Partnership                      $     (421,000)     $     (477,000)    $     (412,000)
                                                            =============       =============      ============= 
</TABLE>

Certain limited  partnerships have incurred operating losses and working capital
deficiencies.  In  the  event  these  limited  partnerships  continue  to  incur
operating  losses,  additional  capital  contributions by the Partnership may be
required to sustain  operations  of such  limited  partnerships.  If  additional
capital  contributions  are not made when they are required,  the  Partnership's
investment in certain of such limited partnerships could be impaired.

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

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

          Acquisition  fees equal to 6% of the gross  proceeds  from the sale of
          Units as compensation to the General Partner for services  rendered to
          the   Partnership  in  connection  with  the  acquisition  of  limited
          partnerships.  As of December 31, 1997 and 1996,  acquisition  fees of
          $447,060  have  been  incurred  and  included  in  the   Partnership's
          investment in limited partnerships.  Accumulated amortization amounted
          to  $172,053   and   $157,149  as  of  December  31,  1997  and  1996,
          respectively.

          Reimbursement of costs incurred by an affiliate of the General Partner
          in connection  with the  acquisition  of limited  partnerships.  These
          reimbursements  have not  exceeded  3% of the  gross  proceeds.  As of
          December 31, 1997 and 1996, the Partnership incurred acquisition costs
          of  $32,018  which  have  been  included  in the  limited  partnership
          investment.  Such costs were fully  amortized at December 31, 1997 and
          1996.

                                      FS-10
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

              For The Years Ended December 31, 1997, 1996 and 1995


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

          An annual  management fee equal to 0.5% of the invested  assets of the
          limited partnerships,  including the Partnership's  allocable share of
          the mortgages.  Fees of $111,691 were incurred  during 1997,  1996 and
          1995. No amounts were paid during 1997, 1996 or 1995.

          A subordinated  disposition  fee in an amount equal to 1% of the sales
          price of any property sold. Payment of this fee to the General Partner
          is  subordinated  to the limited  partners  who receive a 6% preferred
          return (as defined in the  partnership  agreement) and is payable only
          if the General Partner or its affiliates render services.

Accrued fees and expenses due to General  Partner and  affiliates are summarized
as follows:
<TABLE>
<CAPTION>

                                                                               1997                   1996
                                                                          ---------------        ----------------
<S>                                                                    <C>                      <C> 

Due to affiliate                                                        $              -        $              14

Annual management fees accrued net of amounts owed
 by General Partner                                                              705,925                  594,234
                                                                         ---------------         ----------------

Total                                                                   $        705,925        $         594,248
                                                                         ===============         ================
</TABLE>

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

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


                                      FS-11

<PAGE>


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

         NONE.



Item 10.  Directors and Executive Officers of the Registrant

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

Directors and Executive Officers of WNC & Associates, Inc.

The directors of Associates  are Wilfred N. Cooper,  Sr., who serves as Chairman
of the Board, John B. Lester,  Jr., David N. Shafer,  Wilfred N. Cooper, Jr. and
Kay L.  Cooper.  Substantially  all of the  shares  of  Associates  are owned by
Wilfred N. Cooper,  Sr., through the Cooper Revocable Trust, and John B. Lester,
Jr., through the Lester Family Trust.

WILFRED  N.  COOPER,  SR.,  age 67,  has been the  principal  shareholder  and a
Director of WNC & ASSOCIATES,  INC. since its  organization  in 1971, of SHELTER
RESOURCE  CORPORATION since its organization in 1981 and of WNC RESOURCES,  INC.
from its organization in 1988 through its acquisition by WNC & ASSOCIATES,  INC.
in 1991,  serving  as  President  of  those  companies  until  1992 and as Chief
Executive Officer since 1992, and has been a Director of WNC CAPITAL CORPORATION
since its organization. He is also a general partner with WNC & ASSOCIATES, INC.
in WNC FINANCIAL GROUP,  L.P. and WNC TAX CREDIT PARTNERS,  L.P. During 1970 and
1971  he  was  a  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.  Previously,  he had  responsibility  for new  business
development including factory-built housing evaluation and project management in
urban  planning  and  development.  Mr.  Cooper is a Director  of the  Executive
Committee  of the  National  Association  of  Home  Builders  (NAHB)  and a past
Chairman of the NAHB's Rural Housing Council, a Director of the National Housing
Conference,  a Director of the Affordable  Housing Tax Credit Coalition,  a past
President of the California Council of Affordable Housing (CCAH) (formerly Rural
Builders  Council of  California),  and a past President of Southern  California
Chapter II of the Real Estate  Syndication and Securities  Institute  (RESSI) of
the National  Association of Realtors  (NAR).  Mr. Cooper  graduated from Pomona
College in 1956 with a Bachelor of Arts degree.

JOHN B. LESTER, JR., age 64, has been a shareholder, a Director and Secretary of
WNC & ASSOCIATES,  INC. since 1986,  Executive Vice President from 1986 to 1992,
and President and Chief Operating Officer since 1992, and has been a Director of
WNC CAPITAL CORPORATION since its organization. He was a shareholder,  Executive
Vice  President,  Secretary  and a Director  of WNC  RESOURCES,  INC.  from 1988
through its acquisition by WNC & ASSOCIATES,  INC. in 1991. From 1973 to 1986 he
was Chairman of the Board and Vice  President or President of E & L  Associates,
Inc., a provider of engineering  and  construction  services to the oil refinery
and petrochemical industries which he co-founded in 1973. Mr. Lester is a former
Director of the Los Angeles  Chapter of the  Associated  General  Contractors of
California.  His  responsibilities  at WNC & ASSOCIATES,  INC.  include property
acquisitions and company operations. Mr. Lester graduated from the University of
Southern  California  in 1956 with a Bachelor  of Science  degree in  Mechanical
Engineering.

                                       10
<PAGE>

DAVID N. SHAFER,  age 45, has been a Director of WNC &  ASSOCIATES,  INC.  since
1997, a Senior Vice President  since 1992,  and General  Counsel since 1990, and
served as Asset  Management  Director from 1990 to 1992, and has been a Director
and Secretary of WNC Management, Inc. since its organization.  Previously he was
employed as an associate attorney by the law firms of Morinello,  Barone, Holden
& Nardulli  from 1987 until  1990,  Frye,  Brandt & Lyster from 1986 to 1987 and
Simon and Sheridan from 1984 to 1986.  Mr. Shafer is a Director and President of
CCAH, a member of NAHB's Rural  Housing  Council,  a past  President of Southern
California Chapter II of RESSI, a past Director of the Council of Affordable and
Rural Housing and Development  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 and from the  University of San Diego in 1986 with a Master
of Law degree in Taxation.

WILFRED N. COOPER,  JR.,  age 35, has been  employed by WNC &  ASSOCIATES,  INC.
since 1988 and has been a Director since 1997  Executive  Vice  President  since
1998, and a Senior Vice President  since 1992. Mr. Cooper heads the  Acquisition
Originations  department  at  WNC,  has  been  President  of,  and a  registered
principal with, WNC CAPITAL  CORPORATION,  a member firm of the NASD,  since its
organization,  and  has  been  a  Director  of WNC  Management  Inc.  since  its
organization.  Previously,  he was employed as a government affairs assistant by
Honda North America from 1987 to 1988, and as a legal  assistant with respect to
Federal  legislative and regulatory  matters by the law firm of Schwartz,  Woods
and Miller from 1986 to 1987. Mr. Cooper is an alternate  director and member of
NAHB's Rural Housing Council and serves as Chairman of its Membership Committee.
Mr.  Cooper  graduated  from The American  University in 1985 with a Bachelor of
Arts degree.

THEODORE M. PAUL, age 42, has been Vice President - Finance of WNC & ASSOCIATES,
INC. since 1992 and Chief Financial  Officer since 1990, and has been a Director
and Chief  Financial  Officer of WNC  Management  Inc.  since its  organization.
Previously,  he was a Vice  President  and Chief  Financial  Officer of National
Partnership  Investments  Corp.,  a sponsor  and general  partner of  syndicated
partnerships  investing in affordable  rental housing qualified for tax credits,
from 1986 until 1990, and was employed as an associate by the  accounting  firms
of Laventhol & Horwath,  during 1985, and Mann & Pollack Accountants,  from 1979
to 1984.  Mr. Paul is a member of the  California  Society of  Certified  Public
Accountants  and the American  Institute of Certified  Public  Accountants.  His
responsibilities  at WNC &  ASSOCIATES,  INC.  include  supervision  of investor
partnership  accounting  and tax reporting  matters and monitoring the financial
condition  of the  Local  Limited  Partnerships  in which the  Partnership  will
invest.  Mr.  Paul  graduated  from the  University  of  Illinois in 1978 with a
Bachelor of Science degree and is a Certified Public  Accountant in the State of
California.

                                       11
<PAGE>

THOMAS J. RIHA,  age 43, has been Vice  President  - Asset  Management  of WNC &
ASSOCIATES, INC. since 1994, and has been a Director and Chief Executive Officer
of WNC  Management  Inc.  since  its  organization.  He has more  than 17 years'
experience in commercial and multi-family real estate investment and management.
Previously,  Mr.  Riha was  employed  by Trust  Realty  Advisor,  a real  estate
acquisition  and  management  company,  from 1988 to 1994,  last serving as Vice
President - Operations.  His responsibilities at WNC & ASSOCIATES,  INC. include
monitoring  the  operations  and  financial   performance   of,  and  regulatory
compliance  by,  properties in the WNC  portfolio.  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 in the State of  California  and a member of the
American Institute of Certified Public Accountants.

SY P. GARBAN, age 52, has 20 years' experience in the real estate securities and
syndication industry. He has been associated with WNC & ASSOCIATES,  INC., since
1989,  serving as National Sales  Director  through 1992 and as Vice President -
National  Sales since  1992.  Previously,  he was  employed  as  Executive  Vice
President by MRW,  Inc.,  Newport  Beach,  California  from 1980 to 1989, 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.

CARL FARRINGTON,  age 55, has been associated with WNC & ASSOCIATES,  INC. since
1993, and has served as Director - Originations  since 1994. Mr.  Farrington has
more  than 12  years'  experience  in  finance  and  real  estate  acquisitions.
Previously,  he served as Acquisitions Director for The Arcand Company from 1991
to 1993, and as Treasurer and Director of Finance and Administrator for Polytron
Corporation  from 1988 to 1991.  Mr.  Farrington is a member and Director of the
Council  of  Affordable  and  Rural  Housing  and  Development.  Mr.  Farrington
graduated from Yale  University  with a Bachelor of Arts degree in 1966 and from
Dartmouth College with a Master of Business Administration in 1970.

DAVID TUREK, age 43, has been Director - Originations of WNC & ASSOCIATES,  INC.
since 1996. He has 23 years' experience in real estate finance and acquisitions.
Previously,  from 1995 to 1996 Mr. Turek  served as a consultant  for a national
Low  Income  Housing  Credit  sponsor  where  he  was  responsible  for  on-site
feasibility  studies and due  diligence  analyses of Low Income  Housing  Credit
properties,  from 1992 to 1995 he served as Executive Vice President for Levcor,
Inc., a  multi-family  development  company,  and from 1990 to 1992 he served as
Vice  President  for the Paragon Group where he was  responsible  for Low Income
Housing  Credit  development  activities.  Mr.  Turek  graduated  from  Southern
Methodist University in 1976 with a Bachelor of Business Administration degree.

N. PAUL BUCKLAND, age 36, has been employed by WNC & ASSOCIATES, INC. since 1994
and currently serves as Vice President Acquisitions. He has 11 years' experience
in  analysis  pertaining  to the  development  of  multi-family  and  commercial
properties.  Previously,  from 1986 to 1994 he served on the development team of
the Bixby Ranch which  constructed  more than 700 apartment  units and more than
one million square feet of "Class A" office space in California and  neighboring
states,  and from 1984 to 1986 he served as a land acquisition  coordinator with
Lincoln  Property   Company  where  he  identified  and  analyzed   multi-family
developments. Mr. Buckland graduated from California State University, Fullerton
in 1992 with a Bachelor of Science degree in Business Finance.

                                       12
<PAGE>

MICHELE M. TAYLOR,  age 43, has been  employed by WNC & ASSOCIATES,  INC.  since
1986,  serving as a paralegal and office manager,  and currently is the Investor
Services  Director.  Previously she was  self-employed  between 1982 and 1985 in
non-financial  services  activities  and from 1978 to 1981 she was employed as a
paralegal by a law firm which  specialized  in real estate  limited  partnership
transactions.  Ms. Taylor graduated from the University of California, Irvine in
1976 with a Bachelor of Arts degree.

THERESA I. CHAMPANY,  age 40, has been employed by WNC & ASSOCIATES,  INC. since
1989 and currently is the Marketing Services Director and a registered principal
with WNC  CAPITAL  CORPORATION.  Previously,  she was  employed  as  Manager  of
Marketing  Services  by August  Financial  Corporation  from 1986 to 1989 and as
office manager and Assistant to the Vice  President of Real Estate  Syndications
by  McCombs  Securities  Co.,  Inc.  from 1979 to 1986.  Ms.  Champany  attended
Manchester (Conn.) Community College from 1976 to 1978.

KAY L.  COOPER,  age 61, has been an officer and  Director of WNC &  ASSOCIATES,
INC. since 1971 and of WNC RESOURCES,  INC. from 1988 through its acquisition by
WNC & ASSOCIATES, INC. in 1991. Mrs. Cooper has also been the sole proprietor of
Agate 108, a manufacturer and retailer of home accessory  products,  since 1975.
She is the wife of Wilfred N. Cooper,  Sr., the mother of Wilfred N. Cooper, Jr.
and the sister of John B. Lester,  Jr. Mrs. 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 for the following fees:

(a) Organization and Offering Expenses. The Partnership paid the General Partner
or its affiliates as of December 31, 1997 approximately  $1,006,000,  consisting
of  offering  costs,  selling  commissions  and other fees and  expenses  of the
Partnership's offering of Unitsof approximately $59,000,  $745,000 and $202,000,
respectively. Of the total paid to the General Partner or its affiliates, all of
the approximate total of $1,006,000 was paid (reallowed)to  unaffiliated persons
participating  in the  Partnership's  offering or  rendering  other  services in
connection with the Partnership's offering.

(b)  Acquisition  fees in an  amount  equal to 6% of the gross  proceeds  of the
Partnership's  offering  ("Gross  Proceeds").  Through  December 31,  1997,  the
aggregate  amount of acquisition  fees of $447,060 have been paid to the General
Partner or its affiliates.

(c) The  Partnership  reimbursed  the General  Partner or its  affiliates  as of
December 31, 1997 for acquisition expenses expended by such persons on behalf of
the Partnership in the amounts $32,018.

(d) An annual asset management fee in an amount equal to 0.5% of invested assets
(the sum of the Partnership's  Investment in Local Limited Partnership Interests
and the Partnership's allocable share of the amount of the mortgage loans on and
other debts  related to, the  Apartment  Complexes  owned by such Local  Limited
Partnerships.)  Fees of $111,691  were  incurred for 1997,  1996,  and 1995.  No
amounts were paid during 1997, 1996 or 1995.

(e) The General  Partners  were  allocated  federal and  California  Housing Tax
Credits for 1997 and 1996 as follows:

WNC & ASSOCIATES, INC.

         1997     1996
Federal  $6,769   $6,715

WILFRED N. COOPER

         1997     1996
Federal  $  752   $  746

                                       13
<PAGE>


Item 12.  Security Ownership of Certain Beneficial Owners and Management

Security Ownership of Certain Beneficial Owners

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

Security Ownership of Management

(a)  Security Ownership of Certain Beneficial Owners

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

(b)  Security Ownership of Management

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

(c)  Changes in Control

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

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

Item 13.  Certain Relationships and Related Transactions

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

                                       14
<PAGE>

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

Financial Statements:
Report of independent public accountants.
Balance sheet as of December 31, 1997 and 1996.
Statements of Operations for the years ended December 31, 1997,  1996, and 1995.
Statement of Partners'  Equity for the years ended December 31, 1997,  1996, and
1995.  Statements of Cash Flows for the years ended December 31, 1997, 1996, and
1995.
Notes to Financial Statements.
Financial Statement Schedules:
N/A
Exhibits
(3): Articles of incorporation and by-laws:  The registrant is not incorporated.
The Partnership  Agreement is included as Exhibit B to the Prospectus,  filed as
Exhibit 28.1 to Form 10 K for the year ended December 31, 1994.

Material Contracts

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

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

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

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

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

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

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

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

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

                                       15
<PAGE>

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

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

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


Reports on Form 8-K

No reports of Current  Reports on Form 8-K were filed during the fourth  quarter
ended December 31, 1997.




                                       16
<PAGE>


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

WNC CALIFORNIA HOUSING TAX CREDITS, L.P.

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

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


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

Date: April 9, 1998


By:  /s/ Theodore M. Paul
_____________________________________________________
Theodore M. Paul  Vice-President Finance of WNC & Associates, Inc.

Date: April 9, 1998




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



By: /s/ Wilfred N. Cooper, Sr.
_____________________________________________________
Wilfred N. Cooper, Sr., Director and Chairman of the Board of 
Date: April 9, 1998           WNC & Associates, Inc.



By:  /s/ John B. Lester, Jr.
_____________________________________________________
John B. Lester, Jr.,    Director and Secretary of the Board of     
Date: April 14, 1998           WNC & Associates, Inc.


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

Date: April 9, 1998




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