UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION





Washington,
D.C. 20549





FORM
10-K





(Mark
One)




S       ANNUAL REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE


ACT OF
1934





For the
fiscal year ended March 31, 2011





OR





□       TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES


EXCHANGE
ACT OF 1934





For the
transition period from ___________ to _____________





Commission
file number: 0-20058








WNC
CALIFORNIA HOUSING TAX CREDITS, L.P.


(Exact
name of registrant as specified in its charter)





California
            33-0316953(State
      or other jurisdiction of
            (I.R.S.
      Employerincorporation
      or organization)
            Identification
      No.)17782
      Sky Park Circle
            92614-6404Irvine,
      CA
            (Zip
      Code)(Address
      of principal executive offices)





(714)
662-5565


(Telephone
number)








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





NONE





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





UNITS OF
LIMITED PARTNERSHIP INTEREST


(Title of
Class)





Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in
Rule 405 of the Securities Act


Yes_____
No___X__





Indicate
by check mark if the registrant is not required to file reports pursuant to
Section 13 or Section 15(d) of the Act.


Yes_____
No___X__











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 whether the registrant has submitted electronically and posted on
its corporate Website, if any, every Interactive Data File required to be
submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this
chapter) during the preceding 12 months (or for such shorter period that the
registrant was required to submit and post such files).


Yes    No
X





Indicate
by check mark if disclosure of delinquent filers pursuant to Item 405 of
Regulation S-K (229.405 of this chapter) is not contained herein, and will not
be contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-K
or any amendment to this Form 10-K.x





Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer or a smaller reporting company. See
definition of “large accelerated filer,” “accelerated filer” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act.


Large
accelerated filer___ Accelerated filer___ Non-accelerated filer___X__Smaller reporting
company_____





Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act).


Yes____
No__X__








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





INAPPLICABLE





DOCUMENTS
INCORPORATED BY REFERENCE





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





NONE





2


PART
I.





Item
1.  Business





Organization





WNC
California Housing Tax Credits, L.P. (the "Partnership") is a California limited
partnership formed under the laws of the State of California on September 15,
1988.  The Partnership was formed to acquire limited partnership
interests in other limited partnerships ("Local Limited Partnerships") which own
multi-family or senior housing complexes (“Housing Complexes”) that are eligible
for Federal low income housing tax credits (“Low Income Housing Tax
Credits”).  The local general partners (the “Local General Partners”)
of each Local Limited Partnership retain responsibility for maintaining,
operating and managing the Housing Complex. Each Local Limited Partnership is
governed by its agreement of limited partnership or operating agreement (the
“Local Limited Partnership Agreement”).





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





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





The
Partnership shall continue in full force and effect until December 31, 2037
unless terminated prior to that date pursuant to the Partnership Agreement (as
defined below) or law.





Description
of Business





The
Partnership's principal business objective was to provide its Limited Partners
with Low Income Housing Tax Credits.  The Partnership's principal
business therefore consisted of investing as a limited partner or non-managing
member in Local Limited Partnerships each of which owned and operated a Housing
Complex which qualified for the Low Income Housing Tax Credits.  In
general, under Section 42 of the Internal Revenue Code, an owner of low income
housing can receive the Low Income Housing Tax Credits to be used to reduce
Federal taxes otherwise due in each year of a ten-year credit period. Each
Housing Complex is subject to a 15-year compliance period (the “Compliance
Period”), and under state law may have to be maintained as low income housing
for 30 or more years.


3




As a
consequence of the provisions of tax law in effect for dispositions of buildings
prior to August 2008, in order to avoid recapture of Low Income Housing Credits,
the Partnership expected that it would not 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. That provision of law was amended in 2008
(i) to provide that there would be no recapture on sale of a Low Income
Housing Tax Credit building during the Compliance Period if it were reasonable
to expect at the time of sale that the building would continue to be operated as
qualified low income housing (see “Exit Strategy” below) and (ii) to
eliminate the possibility of posting a bond against potential
recapture.  The Partnership is seeking to sell its Local Limited
Partnership Interests.  Nonetheless, because of (i) the nature of the
Housing Complexes and the Local Limited Partnership Interests, (ii) the
difficulty of predicting the resale market for low-income housing, (iii) the
current economy, and (iv) the ability of lenders to disapprove of transfer, it
is not possible at this time to predict whether the liquidation of the
Partnership's assets and the disposition of the proceeds, if any, in accordance
with the Partnership's Agreement of Limited Partnership dated September 15, 1988
(the "Partnership Agreement"), will be accomplished in the near term.
Furthermore, the recent codification of the economic substance doctrine as part
of 2010 legislation has created some uncertainty about the deductibility of
losses from low income housing that is not generating Low Income Housing Tax
Credits, and this could have an adverse effect on the resale market for Housing
Complexes and Local Limited Partnership Interests.  If a Local Limited
Partnership Interest or the related Housing Complex is not sold, it is
anticipated that the Local General Partner would continue to operate such
Housing Complexes.





The
Partnership originally invested in eleven Local Limited Partnerships Interests,
eight of which have been sold or otherwise disposed of as of March 31,
2011.  Each of these Local Limited Partnerships owns or did own a
Housing Complex that was eligible for the Low Income Housing Tax Credit, and
eight of them were eligible for the California Low Income Housing Tax
Credit.  Certain Local Limited Partnerships may also benefit or have
benefited from additional government programs promoting low-income
housing.





Exit
Strategy





The
Compliance Period for a Housing Complex is generally 15 years following
construction or rehabilitation completion. Associates was one of the first in
the industry to offer syndicated investments in Low Income Housing Tax
Credits.  The initial programs have completed their Compliance
Periods.





Upon the
sale of a Local Limited Partnership Interest or Housing Complex after the end of
the Compliance Period, there would be no recapture of Low Income Housing Tax
Credits.  All Local Limited Partnerships have completed their 15-year
Compliance Period.





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





Upon
identifying those Housing Complexes with the highest potential for a successful
sale, refinancing or re-syndication, the Partnership expects to proceed with
efforts to liquidate them. The objective is to wind down the Partnership as Low
Income Housing Tax Credits are no longer available.  Local Limited
Partnership Interests may be disposed of any time by the General Partner in its
discretion. While liquidation of the Housing Complexes continues to be
evaluated, the dissolution of the Partnership was not imminent as of March 31,
2011.





Upon
management of the Partnership identifying a Local Limited Partnership for
disposition, costs incurred by the Partnership in preparation for the
disposition are deferred. Upon the sale of the Local Limited Partnership
interest, the Partnership nets the costs that had been deferred against the
proceeds from the sale in determining the gain or loss on sale of the Local
Limited Partnership. Deferred disposition costs are included in other assets on
the balance sheets.


4




As of
March 31, 2010 the Partnership had sold the Housing Complexes of BCA Associates
and Woodlake Manor.  Further, the Partnership had also sold its Local
Limited Partnership Interests in Yreka Investment Group, Countryway Associates,
San Jacinto Associates, Cloverdale Garden Apartment LP and East Garden
Apartments. Each of the Local Limited Partnerships had completed its Compliance
Period.





During
the year ended March 31, 2010, the Partnership identified one Local Limited
Partnership, HPA Investors, (“HPA”) for disposition.  HPA owned the
Hudson Park Apartments II, located in Shafter, California (the
“Property”).  Consistent with the investment objectives of the
Partnership, the Property qualified for Federal Low Income Housing Tax Credits
under the Internal Revenue Code for a 10-year period.  The credit
period had expired, and no further credits were being generated by the
Property.  The Compliance Period had also expired, so there would be
no credit recapture upon the transfer of the Property.  On October 5,
2009, the Partnership filed a proxy with the United States Securities and
Exchange Commission for the written consent of the Limited Partners for the
commencement of disposition.  Definitive materials were filed on
November 10, 2009 which extended the deadline for submitting
ballots.  As of November 16, 2009 the Partnership achieved the 51%
approval necessary for the disposition.





During
the year ended March 31, 2011, the sale of HPA closed. The total sales price
including replacement reserves was  approximately $1,707,000 which was
disbursed as follows:  the Local General Partner of HPA was paid
approximately $104,000 in sales preparation and refinancing fees and repayment
of loans previously made, $1,452,000 paid down the outstanding mortgages and
approximately $8,000 in selling costs were paid.  The remaining
$143,000 was distributed to the Partnership.  The Partnership’s
investment balance was zero at March 31, 2010. The Partnership had incurred
$3,000 in expenses related to the disposition which are netted against the
proceeds from the sale in calculating the gain on sale of the Local Limited
Partnership. Accordingly, a gain on sale of Local Limited Partnerships of
$140,000 was recorded during the year ended March 31, 2011. The cash proceeds
were used to fund the Partnership’s reserves, of which $93,000 of the cash
received paid accrued asset management fees, $2,000 paid the General Partner of
the Partnership for operating expenses paid on its behalf and the remaining
$48,000 will remain in the Partnership’s reserves to fund future asset
management fees and reimbursements to the General Partners or an affiliate. No
funds will be distributed to the Limited Partners.





On
October 18, 2010, the Partnership filed preliminary consent solicitation
materials with the SEC regarding the adoption of a plan of liquidation of the
remaining Local Limited Partnership Interests.  Definitive materials
were filed with the SEC on October 29, 2010.  Materials were
disseminated to the Limited Partners on November 1, 2010.  The
Partnership is seeking approval to have a formal plan of liquidation of selling
its Local Limited Partnership Interests or selling the underlying Housing
Complexes of each of the Local Limited Partnerships. On November 23, 2010, the
Partnership sent a letter to the Limited Partners reminding them that a proxy
was mailed to them and a vote was requested. On December 6, 2010, the
Partnership received the majority vote in favor of the plan for
dissolution.  While a plan of dissolution was approved, liquidation of
the Partnership was not imminent as of March 31, 2011.





The
Partnership has received the majority vote in favor of the plan of liquidation
of the Partnership.  Therefore, the Partnership is engaging third
party appraisers to appraise several or all of the Local Limited Partnerships in
this Partnership.  The appraisal is one of the preliminary steps that
need to be completed in order to move forward with the approved liquidation
plan.  The expense incurred for the appraisals, or any other
disposition related expenses the Partnership incurs, are being capitalized and
will remain on the balance sheet until the respective Local Limited Partnership
is sold.  At the time of disposition the capitalized costs will be
netted with any cash proceeds that are received in order to calculate the gain
or loss on the disposition.


5





During
the year ended March 31, 2011, the Partnership identified one Local Limited
Partnership, Alta Vista Investors (“Alta Vista”) for
disposition.  Alta Vista owns Alta Vista Apartments, located in Orosi,
California. Consistent with the investment objectives of the Partnership, Alta
Vista qualified for Federal Low Income Housing Tax Credits under the Internal
Revenue Code for a 10-year period.  The credit period has expired, and
no further credits are being generated by Alta Vista.  The Compliance
Period has also expired, so there will be no credit recapture upon the transfer
of Alta Vista.  On April 1, 2011, the Partnership filed definitive
materials with the SEC for the written consent of the Limited Partners for the
commencement of disposition.  On May 25, 2011 the Partnership had
obtained the majority in favor of the disposition.





One other
Local Limited Partnership, Midland Manor Associates (“Midland”) has been
identified for disposition.  Midland was appraised with a value of
$785,000 and has outstanding debt of approximately $1,366,000.  The
Local General Partner requested to exercise his right to an Option Agreement as
outlined in the Limited Partnership Agreement and an Option Agreement was
executed by all parties.   A preliminary offer of $1,505,000 was
accepted for the property.  It is estimated that the property will be
sold in October 2011, the Partnership has yet to decide how the sales proceeds
will be disbursed.  The Partnership will be sending out a proxy of
solicitation to the Limited Partners, due to the fact that an entity related to
the General Partner will be active in the rehabilitation of
Midland.  The Compliance Period has expired, and no further credits
are being generated by Midland.





Item
1A.  Risk Factors





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




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





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





As part
of the recently enacted health care legislation, Congress has codified the
economic substance doctrine. Because of its recent enactment, the full reach of
this provision is unclear.  Inasmuch as Housing Complexes might offer
no benefit to a purchaser other than tax benefits, it is possible that the
economic substance doctrine could be interpreted to limit the deduction of tax
losses from Housing Complexes, which would be expected to have a significant
adverse effect on the sales value of the Housing Complexes and the Local Limited
Partnership Interests.


6





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





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





The failure to pay mortgage debt
could result in a forced sale of a Housing Complex. Each Local Limited
Partnership leverages the Partnership’s investment therein by incurring mortgage
debt.  A Local Limited Partnership’s revenues could be less than its
debt payments and taxes and other operating costs.  If so, the Local
Limited Partnership would have to use working capital reserves, seek additional
funds, or suffer a forced sale of its Housing Complex, which could include a
foreclosure.  The same results could occur if government subsidies
ceased.  Foreclosure would result in a loss of the Partnership’s
capital invested in the Housing Complex.  If the Housing Complex is
highly-leveraged, a relatively slight decrease in the rental revenues could
adversely affect the Local Limited Partnership’s ability to pay its debt service
requirements. Mortgage debt may be repayable in a self-amortizing series of
equal installments or with a large balloon final payment.  Balloon
payments maturing prior to the end of the anticipated holding period for the
Housing Complex create the risk of a forced sale if the debt cannot be
refinanced. There can be no assurance that additional funds will be available to
any Local Limited Partnership if needed on acceptable terms or at
all.





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





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





·
            Obtaining
      tenants for the Housing Complexes.  Government regulations limit
      the types of people who can rent subsidized housing. These regulations may
      make it more difficult to rent the residential units in the Housing
      Complexes.


·
            Obtaining
      rent increases.  In many cases rents can only be increased with
      the prior approval of the subsidizing
agency.


·
            Limitations
      on cash distributions.  The amount of cash that may be
      distributed to owners of subsidized Housing Complexes is less than the
      amount that could be earned by the owners of non-subsidized Housing
      Complexes.


·
            Limitations
      on sale or refinancing of the Housing Complexes.  A Local
      Limited Partnership may be unable to sell its Housing Complex or to
      refinance its mortgage loan without the prior approval of the lender. The
      lender may withhold such approval in the discretion of the lender.
      Approval may be subject to conditions, including the condition that the
      purchaser continues to operate the property as affordable housing for
      terms which could be as long as 30 years or more. In addition, any
      prepayment of a mortgage may result in the assessment of a prepayment
      penalty.


·
            Limitations
      on transfers of interests in Local Limited Partnerships.  The
      Partnership may be unable to sell its interest in a Local Limited
      Partnership without the prior approval of the lender.  The
      lender may withhold such approval in the discretion of the
      lender.  Approval may be subject to
  conditions.


·
            Limitations
      on removal and admission of Local General Partners.  The
      Partnership may be unable to remove a Local General Partner from a Local
      Limited Partnership except for cause, such as the violation of the rules
      of the lender or state allocating authority.  Regulations may
      prohibit the removal of a Local General Partner or permit removal only
      with the prior approval of the lender.  Regulations may also
      require approval of the admission of a successor Local General Partner
      even upon the death or other disability of a Local General
      Partner.


7




·
            Limitations
      on subsidy payments. Subsidy payments may be fixed in amount and subject
      to annual legislative appropriations. The rental revenues of a Housing
      Complex, when combined with the maximum committed subsidy, may be
      insufficient to meet obligations. Congress or the state legislature, as
      the case may be, may fail to appropriate or increase the necessary
      subsidy.  In those events, the mortgage lender could foreclose
      on the Housing Complex unless a workout arrangement could be
      negotiated.


·
            Possible
      changes in applicable regulations.  Legislation may be enacted
      which adversely revises provisions of outstanding mortgage
      loans.  Such legislation has been enacted in the
      past.


·
            Limited
      Partners may not receive distributions if Housing Complexes are
      sold.  There is no assurance that Limited Partners will receive
      any cash distributions from the sale or refinancing of a Housing
      Complex.  The price at which a Housing Complex is sold may not
      be high enough to pay the mortgage and other expenses at the Local Limited
      Partnership and Partnership levels which must be paid at such
      time.  If that happens, a Limited Partner’s return would be
      derived only from the Low Income Housing Tax Credits and tax
      losses.





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





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





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





Fluctuating
economic conditions can reduce the value of real estate.  The Partnership’s
principal business objective is providing its Limited Partners with Low Income
Housing Tax Credits, not the generation of gains from the appreciation of real
estate held by the Local Limited Partnerships.    In its
financial statements, the Partnership has carried its investments in Local
Limited Partnerships at values reflecting the sum of the total amount of the
remaining future Low Income Housing Tax Credits estimated to be allocated to the
Partnership and the estimated residual value to the Partnership of its interests
in the Local Limited Partnerships.  As of the beginning of the first
year covered by this report, the Partnership had reduced the carrying amount to
$0 with respect to all of its investments.  8





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





·
            the
      general and local job market,


·
            the
      availability and cost of mortgage
financing,


·
            monetary
      inflation,


·
            tax,
      environmental, land use and zoning
policies,


·
            the
      supply of and demand for similar
properties,


·
            neighborhood
      conditions,


·
            the
      availability and cost of utilities and
water.





c.
            Tax
      risks other than those relating to tax
credits





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





No opinion of counsel as to certain
matters.  No legal opinion is obtained regarding
matters:





·
            the
      determination of which depends on future factual
      circumstances,


·
            which
      are peculiar to individual Limited Partners,
or


·
            which
      are not customarily the subject of an
opinion.





The more
significant of these matters include:





·
            allocating
      purchase price among components of a property, particularly as between
      buildings and fixtures, the cost of which is depreciable, and the
      underlying land, the cost of which is not
  depreciable,


·
            characterizing
      expenses and payments made to or by the Partnership or a Local Limited
      Partnership,


·
            identifying
      the portion of the costs of any Housing Complex which qualify for historic
      and other tax credits, and


·
            applying
      to any specific Limited Partner the limitation on the use of tax credits
      and tax losses.  Limited Partners must determine for themselves
      the extent to which they can use tax credits and tax
    losses.





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





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





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


9




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





·
            the
      amount of cash the Limited Partner invests in the Partnership,
      and


·
            the
      Limited Partner’s share of Partnership qualified nonrecourse
      financing.





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





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





·
            the
      sales proceeds plus the amount of indebtedness secured by the Housing
      Complex, and


·
            the
      adjusted basis for the Housing Complex. The adjusted basis for a Housing
      Complex is its original cost, plus capital expenditures, minus
      depreciation.





Similarly,
when the Partnership sells an interest in a Local Limited Partnership the
Partnership will recognize gain. Such gain is equal to the difference
between:





·
            the
      sales proceeds plus the Partnership’s share of the amount of indebtedness
      secured by the Housing Complex, and


·
            the
      adjusted basis for the interest.  The adjusted basis for an
      interest in a Local Limited Partnership is the amount paid for the
      interest, plus income allocations and cash distributions, less loss
      allocations.





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





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





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


10




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





·
            between
      the Limited Partners and the General
Partner,


·
            among
      the Limited Partners, or


·
            between
      the Partnership and a Local General
Partner.





If any
allocations were successfully challenged, a greater share of the income or gain
or a lesser share of the losses or tax credits might be allocated to the Limited
Partners.  This would increase the tax liability or reduce the tax
benefits to the Limited Partners.





Tax liabilities could arise in later
years of the Partnership.  After a period of years following
commencement of operations by a Local Limited Partnership, the Local Limited
Partnership may generate profits rather than losses.  A Limited
Partner would have tax liability on his share of such profits unless he could
offset the income with:





·
            unused
      passive losses from the Partnership or other investments,
    or


·
            current
      passive losses from other
investments.





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





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





·
            should
      be deductible over a longer period of time or in a later
    year,


·
            are
      excessive and may not be capitalized or deducted in
  full,


·
            should
      be capitalized and not deducted, or


·
            may
      not be included as part of the basis for computing tax
      credits.





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





·
            the
      eligible basis of a Housing Complex used to compute Low Income Housing Tax
      Credits,


·
            the
      adjusted basis of a Housing Complex used to compute
      depreciation,


·
            the
      correct deduction of fees,


·
            the
      amortization of organization and offering expenses and start-up
      expenditures.





If the
IRS were successful in any such contention, the anticipated Low Income Housing
Tax Credits and losses of the Partnership would be reduced, perhaps
substantially.


11




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





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





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





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





d.
            Risks
      related to the Partnership and the Partnership
  Agreement





The Partnership may be unable to
timely provide financial reports to the Limited Partners which would adversely
affect their ability to monitor Partnership operations.Historically, the
Partnership has been unable to timely file and provide investors with all of its
required periodic reports.  In some instances, the delay has been
substantial. Each
Local General Partner is required to retain independent public accountants and
to report financial information to the Partnership in a timely
manner.  There cannot be any assurance that the Local General Partners
will satisfy these obligations.  If not, the Partnership would be
unable to provide to the Limited Partners in a timely manner its financial
statements and other reports.  That would impact the Limited Partners’
ability to monitor Partnership operations.  The Partnership’s failure
to meet its filing requirements under the Securities Exchange Act of 1934 could
reduce the liquidity for the Partnership Units due to the unavailability of
public information concerning the Partnership.  The failure to file
could also result in sanctions imposed by the SEC.  Any defense
mounted by the Partnership in the face of such sanctions could entail legal and
other fees, which would diminish cash reserves.





Lack of liquidity of
investment.  There is no public market for the purchase and
sale of  Partnership Units, and it is unlikely that one will
develop.  Accordingly, Limited Partners may not be able to sell their
Partnership Units promptly or at a reasonable price.  Partnership
Units should be considered as a long-term investment because the Partnership is
unlikely to sell any Local Limited Partnership Interests for at least 15
years.  Partnership Units cannot be transferred to tax-exempt or
foreign entities, or through a secondary market.  The General Partner
can deny effectiveness of a transfer if necessary to avoid adverse tax
consequences from the transfer.  The General Partner does not
anticipate that any Partnership Units will be redeemed by the
Partnership.





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


12




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





·
            remove
      the General Partner and elect a replacement general
    partner,


·
            amend
      the Partnership Agreement,


·
            terminate
      the Partnership.





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





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





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





Associates and its affiliates are
serving as the general partners of many other
partnerships.  Depending on their corporate area of
responsibility, the officers of Associates initially devote approximately 5% to
50% of their time to the Partnership.  These individuals spend
significantly less time devoted to the Partnership after the investment of the
Partnership’s capital in Local Limited Partnerships.





The interests of Limited Partners
may conflict with the interests of the General Partner and its
affiliates.  The General Partner and its affiliates are
committed to the management of more than 100 other limited partnerships that
have investments similar to those of the Partnership.  The General
Partner and its affiliates receive substantial compensation from the
Partnership.  The General Partner decides how the Partnership’s
investments in Housing Complexes are managed, and when the investments will be
sold. The General Partner may face a conflict in these circumstances because the
General Partner’s share of fees and cash distributions from the transaction may
be more or less than their expected share of fees if a Housing Complex was not
sold. The result of these conflicts could be that a partnership may make
investments which are less desirable, or on terms which are less favorable, to
the partnership than might otherwise be the case. The Partnership has not
developed any formal process for resolving conflicts of interest. However, the
General Partner is subject to a fiduciary duty to exercise good faith and
integrity in handling the affairs of the Partnership, and that duty will govern
its actions in all such matters. Furthermore, the manner in which the
Partnership can operate and sell investments is subject to substantial
restrictions as outlined in the Partnership Agreement.





Anticipated
future and existing cash resources of the Partnership are not sufficient to pay
existing liabilities of the Partnership.   However, substantially
all of the existing liabilities of the Partnership are payable to the General
Partner and/or its affiliates.


13




The
Partnership’s accrued payables consist primarily of the asset management fees
payable to the General Partner.  These accrued payables increased
(decreased) by approximately $(76,000), $60,000 and $7,000 for the years ended
March 31, 2011, 2010 and 2009, respectively.  The Partnership’s future
contractual cash obligations consist solely of its obligations to pay future
annual asset management fees.  These will equal approximately $26,000
per year through the termination of the Partnership, which must occur no later
than December 31, 2037.  Though the amounts payable to the General
Partner and/or its affiliates are contractually  currently
payable,  the Partnership  anticipates that the General
Partner and/or its affiliates will not require the payment of these
contractual  obligations until capital reserves are in excess of the
aggregate of the
existing  contractual  obligations  and
anticipated future foreseeable  obligations of the
Partnership.  The Partnership would be adversely affected should the
General Partner and/or its affiliates demand current payment of the existing
contractual obligations and or suspend services for this or any other
reason.





Associates
agreed to continue providing advances sufficient enough to fund the operations
and working capital requirements of the Partnership through June 30,
2012.





Item
1B.  Unresolved Staff Comments





Not
Applicable





Item
2. Properties





Through
its investments in Local Limited Partnerships, the Partnership holds indirect
ownership interests in the Housing Complexes.  The following table
reflects the status of the three Housing Complexes for which the Partnership had
ownership during the year, as of the dates or for the periods
indicated:


14


As of March 31, 2010
              As of December 31, 2010Local
      Limited
                Partnership
      Name
              Location
              
              General
      Partner Name
              
              Partnership’s
      Total Investment in Local Limited Partnerships
              
              Amount
      of Investment Paid to Date
              Number
      of Units
              Estimated
      Aggregate Low Income Housing Tax Credits
              Mortgage
      Balances of Local Limited PartnershipAlta
      Vista Investors (1)
              Orosi,
      California
              
              Philip
      R. Hammond, Jr. and Diane M. Hammond
              
              $583,000
              $583,000
              42
              $1,274,000
              $1,366,000Knights
      Landing Harbor
              Knights
      Landing, California
              
              Douglas
      W. Young and Diane L. Young
              
              275,000
              275,000
              25
              446,000
              934,000Midland
      Manor Associates (1)
              Mendota,
      California
              
              Philip
      R. Hammond, Jr. and Diane M. Hammond
              
              383,000
              383,000
              40
              668,000
              1,366,000$1,241,000
              $1,241,000
              107
              $2,388,000
              $3,666,000




(1)
            The
      Local Limited Partnership has been identified for sale as of March 31,
      2011.


15


For
      the Year Ended December 31, 2010Local
      Limited
              Partnership
      Name
            Rental
      Income
            
            Net
      Loss
            
            Low
      Income Housing Tax Credits Allocated to PartnershipAlta
      Vista Investors (1)
            $ 231,000
            
            $
       (40,000)
            
            N/AKnights
      Landing Harbor
            181,000
            
            (8,000)
            
            N/AMidland
      Manor Associates (1)
            216,000
            
            (34,000)
            
            N/ATotal
            $ 628,000
            
            $ (82,000)





N/A – All
of the Low Income Housing Tax Credits have been allocated to the Partnership and
there are no future Low Income Housing Tax Credits expected to be
received.





(1) – The
Local Limited Partnership has been identified for sale as of March 31,
2011.


16




WNC
      California Housing Tax Credits, L.P.March
      31, 2011Occupancy
      RatesAs
      of December 31,Local
      Limited
              Partnership
      Name
            Location
            General
      Partner Name
            2010
            2009
            2008
            2007
            2006Alta
      Vista Investors
            Orosi,
      California
            Philip
      R. Hammond, Jr. and Diane M. Hammond
            100%
            98%
            93%
            93%
            100%BCA
      Associates
            Anderson,
      California
            Douglas
      W. Young
            N/A
            N/A
            N/A
            N/A
            100%Cloverdale
      Garden Apartments
            Cloverdale,
      California
            David
      J. Michael, Patrick R. Sabelhaus and Professional Apartment
      Management
            N/A
            100%
            100%
            100%
            97%Countryway
      Associates
            Mendota,
      California
            Philip
      R. Hammond, Jr. and Diane M. Hammond
            N/A
            N/A
            N/A
            85%
            88%East
      Garden Apartments
            Jamestown,
      California
            David
      J. Michael and Professional Apartment Management
            N/A
            100%
            100%
            100%
            98%HPA
      Investors
            Shafter,
      California
            Douglas
      W. Young
            N/A
            90%
            81%
            90%
            90%Knights
      Landing Harbor
            Knights
      Landing, California
            Douglas
      W. Young and Diane L. Young
            100%
            100%
            100%
            96%
            100%Midland
      Manor Associates
            Mendota,
      California
            Philip
      R. Hammond, Jr. and Diane M. Hammond
            93%
            80%
            88%
            88%
            88%San
      Jacinto Associates
            San
      Jacinto, California
            Richard
      Parasol and Richard A. Gullota
            N/A
            N/A
            95%
            97%
            97%


17


WNC
      California Housing Tax Credits, L.P.March
      31, 2011Occupancy
      RatesAs
      of December 31,Local
      Limited
              Partnership
      Name
            Location
            General
      Partner Name
            2010
            2009
            2008
            2007
            2006Woodlake
      Manor
            Woodlake,
      California
            Thomas
      G. Larson, William H. Larson and Raymond L. Tetzlaff
            N/A
            N/A
            N/A
            98%
            93%Yreka
      Investment Group
            Yreka,
      California
            Ronald
      D. Bettencourt
            N/A
            N/A
            N/A
            97%
            94%Weighted
      Average
            
            
            97%
            94%
            94%
            94%
            95%




N/A –
Local Limited Partnership was sold prior to the respective year
end.


18




Item
3.  Legal Proceedings





NONE





Item
4.  (Removed and Reserved)





PART
II.





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





Item
5a.





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





(b)
            At
      March 31, 2011, there were 655 Limited Partners and 0 assignees of
      Partnership Units who were not admitted as Limited
    Partners.





(c)
            The
      Partnership was not designed to provide operating cash distributions to
      Limited Partners.  It is possible that the Partnership could
      make distributions from sale proceeds, if the Partnership is able to sell
      its Local Limited Partnership Interests or Housing Complexes for more than
      the related closing costs and any then accrued obligations of the
      Partnership.  There can be no assurance in this
      regard.  Any distributions would be made in accordance with the
      terms of the Partnership Agreement.  During the years ended
      March 31, 2011, 2010 and 2009, the Partnership made no cash distributions
      to the Limited Partners.





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





(e)
            The
      Partnership does not issue common
stock





(f)
            No
      unregistered securities were sold by the Partnership during the year ended
      March 31, 2011.





Item
5b. Use of Proceeds





NOT
APPLICABLE





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





NONE


19


Item
6.  Selected Financial Data





Selected
balance sheet information for the Partnership is as follows:





March
      31,2011
            
            2010
            
            2009
            
            2008
            
            2007ASSETSCash
            $
            44,858
            $
            42,834
            $
            49,488
            $
            209,252
            $
            38,742Investments
      in Local Limited Partnerships, net
            
            -
            
            -
            
            -
            
            -
            
            -Other
      assets
            
            8,703
            
            3,051
            
            -
            
            -
            
            -Due
      from General Partner or affiliates
            
            -
            
            -
            
            -
            
            -
            
            2,773Due
      from Local Limited Partnership
            
            -
            
            -
            
            -
            
            -
            
            24,700Total
      Assets
            $
            53,561
            $
            45,885
            $
            49,488
            $
            209,252
            $
            66,215LIABILITIESAccrued
      fees and expenses due to General Partner and affiliates
            $
            1,825,197
            $
            1,898,495
            $
            1,895,560
            $
            1,987,676
            $
            1,858,649Accounts
      payable
            
            -
            
            -
            
            -
            
            -
            
            1,000Total
      Liabilities
            
            1,825,197
            
            1,898,495
            
            1,895,560
            
            1,987,676
            
            1,859,649PARTNERS'
      DEFICIT
            
            (1,771,636)
            
            (1,852,610)
            
            (1,846,072)
            
            (1,778,424)
            
            (1,793,434)Total
      Liabilities and Partners’ Deficit
            $
            53,561
            $
            45,885
            $
            49,488
            $
            209,252
            $
            66,215


20




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





For
      the Years Ended
              March
      31,2011
            
            2010
            
            2009
            
            2008
            
            2007Loss  from
      operations
            $
            (58,819)
            $
            (143,637)
            $
            (112,965)
            $
            (124,134)
            $
            (138,411)Gain
      on sale of Local Limited Partnerships
            
            139,742
            
            137,083
            
            45,000
            
            512,673
            
            302,020Interest
      income
            
            51
            
            16
            
            317
            
            100
            
            157Net
      income (loss)
            $
            80,974
            $
            (6,538)
            $
            (67,648)
            $
            388,639
            $
            163,766Net
      income (loss) allocated to:General
      Partners
            $
            810
            $
            (65)
            $
            (676)
            $
            3,886
            $
            1,638Limited
      Partners
            $
            80,164
            $
            (6,473)
            $
            (66,972)
            $
            384,753
            $
            162,128Net
      income (loss) per Partnership Unit
            $
            10.77
            $
            (.87)
            $
            (8.99)
            $
            51.64
            $
            21.76Outstanding
      weighted Partnership Units
            
            7,446
            
            7,446
            
            7,446
            
            7,446
            
            7,446




For
      the Years Ended March 31,2011
            
            2010
            
            2009
            
            2008
            
            2007Net
      cash provided by
              (used
      in):Operating
    activities
            $
            (140,769)
            $
            (143,737)
            $
            (204,764)
            $
            31,466
            $
            8,982Investing
    activities
            
            142,793
            
            137,083
            
            45,000
            
            512,673
            
            277,320Financing
      activities
            
            -
            
            -
            
            -
            
            (373,629)
            
            (274,547)Net
      change in cash
            
            2,024
            
            (6,654)
            
            (159,764)
            
            170,510
            
            11,755Cash,
      beginning of period
            
            42,834
            
            49,488
            
            209,252
            
            38,742
            
            26,987Cash,
      end of period
            $
            44,858
            $
            42,834
            $
            49,488
            $
            209,252
            $
            38,742




Low
Income Housing Tax Credits per Partnership Unit were as follows for the years
ended December 31:


2010
            
            2009
            
            2008
            
            2007
            
            2006Federal
            $
            -
            $
            -
            $
            -
            $
            -
            $
            -State
            
            -
            
            -
            
            -
            
            -
            
            -Total
            $
            -
            $
            -
            $
            -
            $
            -
            $
            -


21


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





Forward
Looking Statements





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





Risks and
uncertainties inherent in forward looking statements include, but are not
limited to, the Partnerhip’s future cash flows and ability to obtain sufficient
financing, level of operating expenses, conditions in the Low Income Housing Tax
Credits property market and the economy in general, changes in law rules and
regulations, and legal proceedings.  Historical results are not
necessarily indicative of the operating results for any future
period.





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





Critical
Accounting Policies and Certain Risks and Uncertainties





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





Use
of Estimates





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




Method
of Accounting for Investments in Local Limited Partnerships





The
Partnership accounts for its investments in Local Limited Partnerships using the
equity method of accounting, whereby the Partnership adjusts its investment
balance for its share of the Local Limited Partnerships’ results of operations
and for any contributions made and distributions received. The Partnership
reviews the carrying amount of an individual investment in a Local Limited
Partnership for possible impairment at least annually or whenever events or
changes in circumstances indicate that the carrying amount of such investment
may not be recoverable.  Recoverability of such investment is measured
by the estimated value derived by management, generally consisting of the
product of the remaining future Low Income Housing Tax Credits estimated to be
allocable to the Partnership and any estimated residual value to the
Partnership.  If an investment is considered to be impaired, the
Partnership reduces the carrying value of its investment in any such Local
Limited Partnership. The accounting policies of the Local Limited Partnerships,
generally, are expected to be consistent with those of the Partnership. Costs
incurred by the Partnership in acquiring the investments were capitalized as
part of the investment account and were being amortized over 27.5 years. (See
Notes 2 and 3 to the financial statements.)





"Equity
in losses of Local Limited Partnerships" for each year ended March 31 has been
recorded by the Partnership based on the twelve months of reported results
provided by the Local Limited Partnerships for each year ended December 31.
Equity in losses from the Local Limited Partnerships allocated to the
Partnership is not recognized to the extent that the investment balance would be
adjusted below zero. 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 from the Local Limited Partnerships are accounted for as a reduction of
the investment balance.  Distributions received after the investment
has reached zero are recognized as distribution income.


22


In
accordance with the accounting guidance for the consolidation of variable
interest entities, the Partnership determines when it should include the assets,
liabilities, and activities of a variable interest entity (VIE) in its financial
statements, and when it should disclose information about its relationship with
a VIE. The analysis that must be performed to determine which entity should
consolidate a VIE focuses on control and economic factors. A VIE is a legal
structure used to conduct activities or hold assets, which must be consolidated
by a company if it is the primary beneficiary because it has (1) the power to
direct the activities of the VIE that most significantly impact the VIE's
economic performance and (2) the obligation to absorb losses or receive benefits
that could potentially be significant to the VIE. If multiple unrelated parties
share such power, as defined, no party will be required to consolidate the VIE.
Further, the guidance requires continual reconsideration of the primary
beneficiary of a VIE.





Based on
this guidance, the Local Limited Partnerships in which the Partnership invests
meet the definition of a VIE because the owners of the equity at risk in these
entities do not have the power to direct their operations. However, management
does not consolidate the Partnership's interests in these VIEs, as it is not
considered to be the primary beneficiary since it does not have the power to
direct the activities that are considered most significant to the economic
performance of these entities. The Partnership currently records the amount of
its investment in these Local Limited Partnerships as an asset on its balance
sheets, recognizes its share of partnership income or losses in the statements
of operations, and discloses how it accounts for material types of these
investments in its financial statements. The Partnership's balance in investment
in Local Limited Partnerships, plus the risk of recapture of tax credits
previously recognized on these investments, represents its maximum exposure to
loss. The Partnership's exposure to loss on these Local Limited Partnerships is
mitigated by the condition and financial performance of the underlying Housing
Complexes as well as the strength of the Local General Partners and their
guarantee against credit recapture to the investors in the
Partnership.





Income
Taxes





The
Partnership has elected to be treated as a pass-through entity for income tax
purposes and, as such, is not subject to income taxes. Rather, all items of
taxable income, deductions and tax credits are passed through to and are
reported by its owners on their respective income tax returns.  The
Partnership’s federal tax status as a pass-through entity is based on its legal
status as a partnership. Accordingly, the Partnership is not required to take
any tax positions in order to qualify as a pass-through entity. The Partnership
is required to file and does file tax returns with the Internal Revenue Service
and other taxing authorities. Accordingly, these financial statements do not
reflect a provision for income taxes and the Partnership has no other tax
positions which must be considered for disclosure.





Impact
of Recent Accounting Pronouncements





In
September 2006, the Financial Accounting Standards Board (“FASB”) issued
accounting guidance for Fair Value Measurements, which defines fair value,
establishes a framework for measuring fair value and expands disclosure about
fair value measurements. This guidance is effective for financial statements
issued for fiscal years beginning after November 15, 2007 and shall be applied
prospectively except for very limited transactions.  In February 2008,
the FASB delayed for one year implementation of the guidance as it pertains to
certain non-financial assets and liabilities. The Partnership adopted GAAP for
Fair Value Measurements effective April 1, 2008, except as it applies to those
non-financial assets and liabilities, for which the effective date was April 1,
2009. The Partnership has determined that adoption of this guidance has no
material impact on the Partnership’s financial statements.





In
February 2007, the FASB issued accounting guidance for The Fair Value Option for
Financial Assets and Financial Liabilities. This guidance permits entities to
choose to measure many financial instruments and certain other items at fair
value.  The fair value election is designed to improve financial
reporting by providing entities with the opportunity to mitigate volatility in
reported earnings caused by measuring related assets and liabilities differently
without having to apply complex hedge accounting provisions. It is effective for
fiscal years beginning after November 15, 2007.  On April 1,
2008, the Partnership adopted GAAP for The Fair Value Option for Financial
Assets and Financial Liabilities and elected not to apply the provisions to its
eligible financial assets and financial liabilities on the date of adoption.
Accordingly, the initial application of the guidance had no effect on the
Partnership.


23




In
November 2008, the FASB issued accounting guidance on Equity Method Investment
Accounting Considerations that addresses how the initial carrying value of an
equity method investment should be determined, how an impairment assessment of
an underlying indefinite-lived intangible asset of an equity method investment
should be performed, how an equity method investee’s issuance of shares should
be accounted for, and how to account for a change in an investment from the
equity method to the cost method. This guidance is effective in fiscal years
beginning on or after December 15, 2008, and interim periods within
those fiscal years. The Partnership adopted the guidance for the interim
quarterly period beginning April 1, 2009. The impact of adopting it did not have
a material impact on the Partnership’s financial condition or results of
operations.





In April
2009, the FASB issued accounting guidance for Interim Disclosures about Fair
Value of Financial Instruments.  This requires disclosure about the
method and significant assumptions used to establish the fair value of financial
instruments for interim reporting periods as well as annual
statements.  It became effective for as of and for the interim period
ended June 30, 2009 and had no impact on the Partnership’s financial condition
or results of operations.





In May
2009, the FASB issued guidance regarding subsequent events, which was
subsequently updated in February 2010. This guidance established general
standards of accounting for and disclosure of events that occur after the
balance sheet date but before financial statements are issued or are available
to be issued. In particular, this guidance sets forth the period after the
balance sheet date during which management of a reporting entity should evaluate
events or transactions that may occur for potential recognition or disclosure in
the financial statements, the circumstances under which an entity should
recognize events or transactions occurring after the balance sheet date in its
financial statements, and the disclosures that an entity should make about
events or transactions that occurred after the balance sheet date. This guidance
was effective for financial statements issued for fiscal years and interim
periods ending after June 15, 2009, and was therefore adopted by the
Partnership for the quarter ended June 30, 2009. The adoption did not have a
significant impact on the subsequent events that the Partnership reports, either
through recognition or disclosure, in the financial statements. In February
2010, the FASB amended its guidance on subsequent events to remove the
requirement to disclose the date through which an entity has evaluated
subsequent events, alleviating conflicts with current SEC guidance. This
amendment was effective immediately and therefore the Company did not include
the disclosure in this Form 10-K.





In June
2009, the FASB issued an amendment to the accounting and disclosure requirements
for the consolidation of VIEs. The amended guidance modifies the consolidation
model to one based on control and economics, and replaced quantitative primary
beneficiary analysis with a qualitative analysis. The primary beneficiary of a
VIE will be the entity that has (1) the power to direct the activities of the
VIE that most significantly impact the VIE's economic performance and (2) the
obligation to absorb losses or receive benefits that could potentially be
significant to the VIE. If multiple unrelated parties share such power, as
defined, no party will be required to consolidate the VIE. Further, the amended
guidance requires continual reconsideration of the primary beneficiary of a VIE
and adds an additional reconsideration event for determination of whether an
entity is a VIE. Additionally, the amendment requires enhanced and expanded
disclosures around VIEs. This amendment was effective for fiscal years beginning
after November 15, 2009. The adoption of this guidance on April 1, 2010 did not
have a material effect on the Partnership's financial statements.





In June
2009, the FASB issued the Accounting Standards Codification (Codification).
Effective July 1, 2009, the Codification is the single source of authoritative
accounting principles recognized by the FASB to be applied by non-governmental
entities in the preparation of financial statements in conformity with GAAP. The
Codification is intended to reorganize, rather than change, existing GAAP.
Accordingly, all references to currently existing GAAP have been removed and
have been replaced with plain English explanations of the Partnership's
accounting policies. The adoption of the Codification did not have a material
impact on the Partnership's financial position or results of
operations.


24




Certain
Risks and Uncertainties





See Item
1A for a discussion of risks regarding the Partnership.





All of
the Low Income Housing Tax Credits anticipated to be realized from the Local
Limited Partnerships have been realized. The Partnership does not anticipate
being allocated a significant amount of Low Income Housing Tax Credits from the
Local Limited Partnerships in the future.





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





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





Financial
Condition





The
Partnership’s assets at March 31, 2011 consisted of $45,000 in cash and $9,000
in other assets.  Liabilities at March 31, 2011 consisted of
$1,825,000 of accrued fees and expenses due to General Partner and affiliates.
(See “Future Contractual Cash Obligations” below).





Results
of Operations





Year Ended March 31, 2011 Compared to
Year Ended March 31, 2010The Partnership’s net income for the
year ended March 31, 2011 was $81,000, reflecting a change of $88,000 from the
net loss of $(7,000) for the year ended March 31, 2010. For the year ended March
31, 2011 there was a $35,000 decrease in asset management fees from the year
ended March 31, 2010.  This decrease is due to the fact that the fees
are calculated based invested assets of the Partnership, as defined, which
decreased due to the sale of Local Limited Partnership capitalize interests
during the years ended March 31, 2011 and 2010. Legal and accounting expenses
decreased by $40,000 due to the timing of the accounting work performed and
legal fees related to the sold properties.  The distribution income
decreased by $(2,000) and reporting fees increased by $8,000 for the year ended
March 31, 2011. Distribution income and reporting fees are expected to vary as
payments are only made when the Local Limited Partnerships have available cash
flows.  There was an increase of $3,000 in the gain on sale of Local
Limited Partnerships.   The gains recorded by the Partnership can
vary depending on the sales prices of the Housing Complexes or Local Limited
Partnerships that are being sold.


25




Year Ended March 31, 2010 Compared to
Year Ended March 31, 2009The Partnership’s net loss for the
year ended March 31, 2010 was $(7,000), reflecting a change of $61,000 from the
net loss of $(68,000) experienced for the year ended March 31,
2009.  The change is primarily due to an increase of $92,000 in the
gain on sale of Local Limited Partnerships.   For the year ended
March 31, 2009 there was a $45,000 gain on disposal from the sale of two Housing
Complexes, compared to a $137,000 gain on the sale of three Local Limited
Partnerships for the year ended March 31, 2010.  The gains recorded by
the Partnership can vary depending on the sales prices and values of the Housing
Complexes or Local Limited Partnerships that are being sold.  For the
year ended March 31, 2010 there was a $24,000 decrease in asset management fees
from the year ended March 31, 2009.  This decrease is due to the fact
that the fees are calculated based on invested assets, which decreased due to
the sale of Limited Partnership interests in three additional Local Limited
Partnerships during the year ended March 31, 2010. Legal and accounting expenses
increased by $(59,000), due to the timing of the accounting work performed and
legal fees related to the sold properties.  For the year ended March
31, 2009 the Partnership incurred $(11,000) in appraisal expenses compared to
none during the year ended March 31, 2010. These costs were incurred related to
the sale of the two Local Limited Partnerships sold during the year ended March
31, 2009.  Appraisal costs related to Limited Partnership capitalize
interests that were sold during the year ended March 31, 2010 were netted with
the gross proceeds received as a result of the dispositions. Lastly, the total
income decreased by $(4,000). Distribution income and reporting fees are
expected to vary as payments are only made when the Local Limited Partnerships
have available cash flows. Also, as three additional Local Limited Partnerships
were sold during the year ended March 31, 2010, fewer distributions and
reporting fees were available to be collected.





Liquidity
and Capital Resources





Year Ended March 31, 2011 Compared to
Year Ended March 31, 2010   The net increase in cash
during the year ended March 31, 2011 was $2,000 compared to the net decrease in
cash for the year ended March 31, 2010 of $(7,000).  The change is
partially due to the increase in gain on sale of Local Limited Partnerships of
$3,000, which, as explained above, can vary depending on the value of the Local
Limited Partnership being sold.  Additionally, the Partnership paid
the General Partner or an affiliate $(103,000) of accrued asset management fees
during the year ended March 31, 2011 compared to $(3,000) paid during the year
ended March 31, 2010.  The Partnership reimbursed $(148,000) to the
General Partner or an affiliate for operating expenses that were paid on its
behalf during the year ended March 31, 2010 compared to $(48,000) reimbursed
during the year ended March 31, 2011.   The Partnership also
received $(2,000) less in distribution income and $8,000 more in reporting fees
for the year ended March 31, 2011 compared to the year ended March 31,
2010.  Distribution income and reporting fees are expected to vary as
payments are only made when the Local Limited Partnerships have available cash
flows.





Year Ended March 31, 2010 Compared to
Year Ended March 31, 2009   The net decrease in cash
during the year ended March 31, 2010 was $(7,000) compared to the net decrease
in cash for the year ended March 31, 2009 of $(160,000).  The decrease
in net change in cash of $153,000 is largely due to the increase in proceeds
from the sale of Local Limited Partnerships of $92,000, which, as explained
above, can vary depending on the value of the Local Limited Partnership being
sold.  The increase in proceeds received was partially offset by the
Partnership paying the General Partner or an affiliate $(3,000) in accrued asset
management fees compared to $(80,000) paid during the year ended March 31,
2009.  During the year ended March 31, 2010 the Partnership also paid
$(148,000) to the General Partner or an affiliate for reimbursements of
operating expenses that were paid on behalf of the Partnership compared to
$(130,000) in reimbursements being paid during the year ended March 31,
2009.   The higher amount paid during March 31, 2009 for accrued
management fees and operating expense reimbursements was due to the fact that
the Partnership received cash proceeds from dispositions in March 31, 2008 that
were sitting in reserves until it was decided during the year ended March 31,
2009 that the advances would be reimbursed.





Accrued
payables, which consist primarily of related party asset management fees due to
the General Partner, increased (decreased) by approximately $(73,000), $3,000
and $(92,000) for the years ended March 31, 2011, 2010 and 2009, respectively.
The General Partner does not anticipate that these accrued fees will be paid
until such time as capital reserves are in excess of future foreseeable working
capital requirements of the Partnership.





The
Partnership currently has insufficient working capital to fund its operations.
Associates has agreed to continue providing advances sufficient enough to fund
the operations and working capital requirements of the Partnership through June
30, 2012.


26




Future
Contractual Cash Obligations





The
following table summarizes the Partnership’s future contractual cash obligations
as of March 31, 2011:





2012
            
            2013
            
            2014
            
            2015
            
            2016
            
            Thereafter
            
            TotalAsset
      management fees (1)
            $
            1,851,024
            $
            25,827
            $
            25,827
            $
            25,827
            $
            25,827
            $
            542,367
            $
            2,496,699Total
      contractual cash obligations
            $
            1,851,024
            $
            25,827
            $
            25,827
            $
            25,827
            $
            25,827
            $
            542,367
            $
            2,496,699





(1)
            Asset
      management fees are payable annually until termination of the Partnership,
      which is to occur no later than 2037. The estimate of the fees payable
      included herein assumes the retention of the Partnership’s interest in all
      Housing Complexes until 2037. Amounts due to the General Partner as of
      March 31, 2011 have been included in the 2012 column. The General Partner
      does not anticipate that these fees will be paid until such time as
      capital reserves are in excess of the aggregate of the existing
      contractual obligations and the anticipated future foreseeable obligations
      of the Partnership.





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





Off-Balance
Sheet Arrangements





The
Partnerships has no off-balance sheet arrangements.





Exit
Strategy





See Item
1 for information in this regard.





Impact
of New Accounting Pronouncements





See
footnote 1 to the financial statements.





Item
7A.  Quantitative and Qualitative Disclosures about Market
Risk





NOT
APPLICABLE





Item
8.  Financial Statements and Supplementary Data


27


REPORT
OF INDEPENDENT REGISTERED
 
 PUBLIC
ACCOUNTING FIRM
 
 To
the Partners
 WNC
California Housing Tax Credits, L.P.
 
 We
have audited the accompanying balance sheets of WNC California Housing Tax
Credits, L.P. (a California Limited Partnership) (the Partnership) as of March
31, 2011 and 2010, and the related statements of operations, partners’ deficit
and cash flows for each of the years in the three-year period ended March 31,
2011.  The Partnership’s management is responsible for these financial
statements. Our responsibility is to express an opinion on these financial
statements based on our audits.
 
 We
conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  The Partnership is not
required to have, nor were we engaged to perform, an audit of its internal
control over financial reporting. Our audits included consideration of internal
control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Partnership’s internal control over
financial reporting. Accordingly, we express no such opinion.  An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation.  We believe that our audits
provide a reasonable basis for our opinion.
 
 In
our opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of WNC California Housing Tax Credits,
L.P. as of March 31, 2011 and 2010, and the results of its operations and its
cash flows for each of the years in the three-year period ended March 31, 2011,
in conformity with accounting principles generally accepted in the United States
of America.
 
 Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole.  The schedules listed under
Item 15(a)(2) in the index related to years above are presented for the purpose
of complying with the Securities and Exchange Commission’s rules and are not
part of the basic financial statements. These schedules have been subjected to
the auditing procedures applied to the audits of the basic financial statements
and, in our opinion, fairly state in all material respects the financial
statement data required to be set forth therein in relation to the basic
financial statements taken as a whole.
 
 /s/Reznick
Group, P.C.
 Bethesda,
Maryland
 June
27, 2011








28
 WNC
CALIFORNIA HOUSING TAX CREDITS, L.P.
 (A
California Limited Partnership)
 
 BALANCE
SHEETS


March
      31,2011
            
            2010ASSETSCash
            $
            44,858
            $
            42,834Investments
      in Local Limited Partnerships, net (Notes 2 and 3)
            
            -
            
            -Other assets
            
            8,703
            
            3,051Total
      Assets
            $
            53,561
            $
            45,885LIABILITIES
      AND PARTNERS’ DEFICITLiabilities:Accrued fees and expenses due to
      General Partner and affiliates (Note 3)
            $
            1,825,197
            $
            1,898,495Partners’
      Deficit:General
Partners
            
            (79,444)
            
            (80,254)Limited Partners (10,000
      Partnership Units authorized; 7,446  Partnership Units issued
      and outstanding as of March 31, 2011 and 2010)
            
            (1,692,192)
            
            (1,772,356)Total Partners’
      Deficit
            
            (1,771,636)
            
            (1,852,610)Total
      Liabilities and Partners’ Deficit
            $
            53,561
            $
            45,885





See
accompanying notes to financial statements
 29
 WNC
CALIFORNIA HOUSING TAX CREDITS, L.P.
 (A
California Limited Partnership)
 
 STATEMENTS
OF OPERATIONS





For
      the Years Ended March 31,2011
            
            2010
            
            2009Distribution
      income
            $
            513
            $
            2,617
            $
            7,426Reporting
      fees
            
            9,455
            
            1,050
            
            -Total
      income
            
            9,968
            
            3,667
            
            7,426Operating
      expenses:Asset management fees (Note
      3)
            
            27,104
            
            62,328
            
            86,804Legal and
    accounting
            
            38,213
            
            78,402
            
            19,221Appraisal
      expenses
            
            -
            
            -
            
            11,250Other
            
            3,470
            
            6,574
            
            3,116Total operating
      expenses
            
            68,787
            
            147,304
            
            120,391Loss
      from operations
            
            (58,819)
            
            (143,637)
            
            (112,965)Gain
      on sale of Local Limited Partnerships
            
            139,742
            
            137,083
            
            45,000Interest
      income
            
            51
            
            16
            
            317Net
      income (loss)
            $
            80,974
            $
            (6,538)
            $
            (67,648)Net
      income (loss) allocated to:General Partners
            $
            810
            $
            (65)
            $
            (676)Limited Partners
            $
            80,164
            $
            (6,473)
            $
            (66,972)Net
      income (loss) per Partnership Unit
            $
            10.77
            $
            (.87)
            $
            (8.99)Outstanding
      weighted Partnership Units
            
            7,446
            
            7,446
            
            7,446


See
accompanying notes to financial statements
 30
 WNC
CALIFORNIA HOUSING TAX CREDITS, L.P.
 (A
California Limited Partnership)
 
 STATEMENTS
OF PARTNERS’ DEFICIT
 
 For
The Years Ended March 31, 2011, 2010 and 2009


General
      Partners
            
            Limited
      Partners
            
            TotalPartners’
      deficit at March 31, 2008
            $
            (79,513)
            $
            (1,698,911)
            $
            (1,778,424)Net
      loss
            
            (676)
            
            (66,972)
            
            (67,648)Partners’
      deficit at March 31, 2009
            
            (80,189)
            
            (1,765,883)
            
            (1,846,072)Net
      loss
            
            (65)
            
            (6,473)
            
            (6,538)Partners’
      deficit at March 31, 2010
            
            (80,254)
            
            (1,772,356)
            
            (1,852,610)Net
      income
            
            810
            
            80,164
            
            80,974Partners
      deficit at March 31, 2011
            $
            (79,444)
            $
            (1,692,192)
            $
            (1,771,636)





See
accompanying notes to financial statements
 31
 WNC
CALIFORNIA HOUSING TAX CREDITS, L.P.
 (A
California Limited Partnership)
 
 STATEMENTS
OF CASH FLOWS




For
      the Years Ended March 31,2011
            
            2010
            
            2009Cash
      flows from operating activities:Net
      income (loss)
            $
            80,974
            $
            (6,538)
            $
            (67,648)Adjustments
      to reconcile net income (loss) to
              net
      cash used in operating activities:Increase
      in other assets
            
            (8,703)
            
            (3,051)
            
            -Increase
      (decrease) in accrued fees and expenses due to General Partner and
      affiliates
            
            (73,298)
            
            2,935
            
            (92,116)Gain
      on sale of Local Limited Partnerships
            
            (139,742)
            
            (137,083)
            
            (45,000)Net
      cash used in operating activities
            
            (140,769)
            
            (143,737)
            
            (204,764)Cash
      flows from investing activities:Proceeds
      from sale of Local Limited Partnerships
            
            142,793
            
            137,083
            
            45,000Net
      cash provided by investing activities
            
            142,793
            
            137,083
            
            45,000Net
      increase (decrease) in cash
            
            2,024
            
            (6,654)
            
            (159,764)Cash,
      beginning of period
            
            42,834
            
            49,488
            
            209,252Cash,
      end of period
            $
            44,858
            $
            42,834
            $
            49,488SUPPLEMENTAL
      DISCLOSURE OF
              CASH FLOW
      INFORMATION:Taxes paid
            $
            800
            
            800
            $
            800








See
accompanying notes to financial statements
 32
 WNC
CALIFORNIA HOUSING TAX CREDITS, L.P.
 (A
California Limited Partnership)
 
 NOTES
TO FINANCIAL STATEMENTS
 
 For
the Years Ended March 31, 2011, 2010 and 2009


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 acquire limited partnership interests
in other limited partnerships ("Local Limited Partnerships") which own
multi-family or senior housing complexes (“Housing Complexes”) that are eligible
for Federal low income housing tax credits (“Low Income Housing Tax
Credits”).  The local general partners (the “Local General Partners”)
of each Local Limited Partnership retain responsibility for maintaining,
operating and managing the Housing Complex. Each Local Limited Partnership is
governed by its agreement of limited partnership or operating agreement (the
“Local Limited Partnership Agreement”).





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





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





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





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





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





Risks and
Uncertainties





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





33
 WNC
CALIFORNIA HOUSING TAX CREDITS, L.P.
 (A
California Limited Partnership)
 
 NOTES
TO FINANCIAL STATEMENTS – CONTINUED
 
 For
the Years Ended March 31, 2011, 2010 and 2009


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





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





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





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





All of
the Low Income Housing Tax Credits anticipated to be realized from the Local
Limited Partnerships have been realized. The Partnership does not anticipate
being allocated any Low Income Housing Tax Credits from the Local Limited
Partnerships in the future.





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





34
 WNC
CALIFORNIA HOUSING TAX CREDITS, L.P.
 (A
California Limited Partnership)
 
 NOTES
TO FINANCIAL STATEMENTS – CONTINUED
 
 For
the Years Ended March 31, 2011, 2010 and 2009


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





The
Partnership currently has insufficient working capital to fund its operations.
Associates has agreed to continue providing advances sufficient enough to fund
the operations and working capital requirements of the Partnership through June
30, 2012.





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





Exit
Strategy





The
Compliance Period for a Housing Complex is generally 15 years following
construction or rehabilitation completion. Associates was one of the first in
the industry to offer syndicated investments in Low Income Housing Tax
Credits.  The initial programs have completed their Compliance
Periods.





Upon the
sale of a Local Limited Partnership Interest or Housing Complex after the end of
the Compliance Period, there would be no recapture of Low Income Housing Tax
Credits.  All Local Limited Partnerships have completed their 15-year
Compliance Period.





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





Upon
identifying those Housing Complexes with the highest potential for a successful
sale, refinancing or re-syndication, the Partnership expects to proceed with
efforts to liquidate them. The objective is to wind down the Partnership as Low
Income Housing Tax Credits are no longer available.  Local Limited
Partnership Interests may be disposed of any time by the General Partner in its
discretion. While liquidation of the Housing Complexes continues to be
evaluated, the dissolution of the Partnership was not imminent as of March 31,
2011.





Upon
management of the Partnership identifying a Local Limited Partnership for
disposition, costs incurred by the Partnership in preparation for the
disposition are deferred. Upon the sale of the Local Limited Partnership
interest, the Partnership nets the costs that had been deferred against the
proceeds from the sale in determining the gain or loss on sale of the Local
Limited Partnership. Deferred disposition costs are included in other assets on
the balance sheets.





As of
March 31, 2010 the Partnership had sold the Housing Complexes of BCA Associates
and Woodlake Manor.  Further, the Partnership had also sold its Local
Limited Partnership Interests in Yreka Investment Group, Countryway Associates,
San Jacinto Associates, Cloverdale Garden Apartment LP and East Garden
Apartments. Each of the Local Limited Partnerships had completed its Compliance
Period.





During
the year ended March 31, 2010, the Partnership identified one Local Limited
Partnership, HPA Investors, (“HPA”) for disposition.  HPA owned the
Hudson Park Apartments II, located in Shafter, California (the
“Property”).  Consistent with the investment objectives of the
Partnership, the Property qualified for Federal Low Income Housing Tax Credits
under the Internal Revenue Code for a 10-year period.  The credit
period had expired, and no further credits were being generated by the
Property.  The Compliance Period had also expired, so there would be
no credit recapture upon the transfer of the Property.  On October 5,
2009, the Partnership filed a proxy with the United States Securities and
Exchange Commission for the written consent of the Limited Partners for the
commencement of disposition.  Definitive materials were filed on
November 10, 2009 which extended the deadline for
submitting ballots. As of November 16, 2009 the Partnership achieved the 51%
approval necessary for the disposition.  35
 WNC
CALIFORNIA HOUSING TAX CREDITS, L.P.
 (A
California Limited Partnership)
 
 NOTES
TO FINANCIAL STATEMENTS – CONTINUED
 
 For
the Years Ended March 31, 2011, 2010 and 2009





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




During
the year ended March 31, 2011, the sale of HPA closed. The total sales price
including replacement reserves was  approximately $1,707,000 which was
disbursed as follows:  the Local General Partner of HPA was paid
approximately $104,000 in sales preparation and refinancing fees and repayment
of loans previously made, $1,452,000 paid down the outstanding mortgages and
approximately $8,000 in selling costs were paid.  The remaining
$143,000 was distributed to the Partnership.  The Partnership’s
investment balance was zero at March 31, 2010. The Partnership had incurred
$3,000 in expenses related to the disposition which are netted against the
proceeds from the sale in calculating the gain on sale of the Local Limited
Partnership. Accordingly, a gain on sale of Local Limited Partnerships of
$140,000 was recorded during the year ended March 31, 2011. The cash proceeds
were used to fund the Partnership’s reserves, of which $93,000 of the cash
received paid accrued asset management fees, $2,000 paid the General Partner of
the Partnership for operating expenses paid on its behalf and the remaining
$48,000 will remain in the Partnership’s reserves to fund future asset
management fees and reimbursements to the General Partners or an affiliate. No
funds will be distributed to the Limited Partners.





On
October 18, 2010, the Partnership filed preliminary consent solicitation
materials with the SEC regarding the adoption of a plan of liquidation of the
remaining Local Limited Partnership Interests.  Definitive materials
were filed with the SEC on October 29, 2010.  Materials were
disseminated to the Limited Partners on November 1, 2010.  The
Partnership is seeking approval to have a formal plan of liquidation of selling
its Local Limited Partnership Interests or selling the underlying Housing
Complexes of each of the Local Limited Partnerships. On November 23, 2010, the
Partnership sent a letter to the Limited Partners reminding them that a proxy
was mailed to them and a vote was requested. On December 6, 2010, the
Partnership received the majority vote in favor of the plan for
dissolution.





The
Partnership has received the majority vote in favor of the plan of liquidation
of the Partnership.  Therefore, the Partnership is engaging third
party appraisers to appraise several or all of the Local Limited Partnerships in
this Partnership.  The appraisal is one of the preliminary steps that
need to be completed in order to move forward with the approved liquidation
plan.  The expense incurred for the appraisals, or any other
disposition related expenses the Partnership incurs, are being capitalized and
will remain on the balance sheet until the respective Local Limited Partnership
is sold.  At the time of disposition the capitalized costs will be
netted with any cash proceeds that are received in order to calculate the gain
or loss on the disposition.





During
the year ended March 31, 2011, the Partnership identified one Local Limited
Partnership, Alta Vista Investors (“Alta Vista”) for
disposition.  Alta Vista owns Alta Vista Apartments, located in Orosi,
California. Consistent with the investment objectives of the Partnership, Alta
Vista qualified for Federal Low Income Housing Tax Credits under the Internal
Revenue Code for a 10-year period.  The Compliance Period has
expired, and no further credits are being generated by Alta
Vista.  The Compliance Period has also expired, so there will be no
credit recapture upon the transfer of Alta Vista.  On April 1, 2011,
the Partnership filed definitive materials with the SEC for the written consent
of the Limited Partners for the commencement of disposition.  On May
25, 2011 the Partnership had obtained the majority in favor of the
disposition.


36
 WNC
CALIFORNIA HOUSING TAX CREDITS, L.P.
 (A
California Limited Partnership)
 
 NOTES
TO FINANCIAL STATEMENTS – CONTINUED
 
 For
the Years Ended March 31, 2011, 2010 and 2009


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





One other
Local Limited Partnership, Midland Manor Associates (“Midland”) has been
identified for disposition.  Midland was appraised with a value of
$785,000 and has outstanding debt of approximately $1,366,000.  The
Local General Partner requested to exercise his right to an Option Agreement as
outlined in the Limited Partnership Agreement.  An Option Agreement
was executed by all parties.   A preliminary offer of $1,505,000
was accepted for the property.  It is estimated that the property will
be sold in October 2011, the Partnership has yet to decide how the sales
proceeds will be disbursed.  The Partnership will be sending out a
proxy of solicitation to the Limited Partners, due to the fact that an entity
related to the General Partner will be active in the rehabilitation of
Midland.  The Compliance Period has expired, and no further credits
are being generated by Midland.





Method of Accounting For
Investments in Local Limited Partnerships





The
Partnership accounts for its investments in Local Limited Partnerships using the
equity method of accounting, whereby the Partnership adjusts its investment
balance for its share of the Local Limited Partnerships’ results of operations
and for any contributions made and distributions received. The Partnership
reviews the carrying amount of an individual investment in a Local Limited
Partnership for possible impairment at least annually or whenever events or
changes in circumstances indicate that the carrying amount of such investment
may not be recoverable.  Recoverability of such investment is measured
by the estimated value derived by management, generally consisting of the sum of
the remaining future Low Income Housing Tax Credits estimated to be allocated to
the Partnership and the estimated residual value to the
Partnership.  If an investment is considered to be impaired, the
Partnership reduces the carrying value of its investment in any such Local
Limited Partnership.  The accounting policies of the Local Limited
Partnerships, generally, are expected to be consistent with those of the
Partnership.  Costs incurred by the Partnership in acquiring the
investments were capitalized as part of the investment and were being amortized
over 27.5 years (See Notes 2 and 3).





“Equity
in losses of Local Limited Partnerships” for the periods ended December 31, 2010
and 2009 have been recorded by the Partnership. Management’s estimate for the
nine-month period is based on either actual unaudited results reported by the
Local Limited Partnerships or historical trends in the operations of the Local
Limited Partnerships. In subsequent annual financial statements, upon receiving
the actual annual results reported by the Local Limited Partnerships, management
reverses its prior estimate and records the actual results reported by the Local
Limited Partnerships. Equity in losses of Local Limited Partnerships allocated
to the Partnership are not recognized to the extent that the investment balance
would be adjusted below zero. If the Local Limited Partnerships reported net
income in future years, the Partnership will resume applying the equity method
only after its share of such net income equals the share of net losses not
recognized during the period(s) the equity method was suspended (see Note
2).





Distributions
received from the Local Limited Partnerships are accounted for as a reduction of
the investment balance.


Distributions
received after the investment has reached zero are recognized as distribution
income.





In
accordance with the accounting guidance for the consolidation of variable
interest entities, the Partnership determines when it should include the assets,
liabilities, and activities of a variable interest entity (VIE) in its financial
statements, and when it should disclose information about its relationship with
a VIE. The analysis that must be performed to determine which entity should
consolidate a VIE focuses on control and economic factors. A VIE is a legal
structure used to conduct activities or hold assets, which must be consolidated
by a company if it is the primary beneficiary because it has (1) the power to
direct the activities of the VIE that most significantly impact the VIE's
economic performance and (2) the obligation to absorb losses or receive benefits
that could potentially be significant to the VIE. If multiple unrelated parties
share such power, as defined, no party will be required to consolidate the VIE.
Further, the guidance requires continual reconsideration of the primary
beneficiary of a VIE.


37
 WNC
CALIFORNIA HOUSING TAX CREDITS, L.P.
 (A
California Limited Partnership)
 
 NOTES
TO FINANCIAL STATEMENTS – CONTINUED
 
 For
the Years Ended March 31, 2011, 2010 and 2009


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





Based on
this guidance, the Local Limited Partnerships in which the Partnership invests
meet the definition of a VIE because the owners of the equity at risk in these
entities do not have the power to direct their operations. However, management
does not consolidate the Partnership's interests in these VIEs, as it is not
considered to be the primary beneficiary since it does not have the power to
direct the activities that are considered most significant to the economic
performance of these entities. The Partnership currently records the amount of
its investment in these Local Limited Partnerships as an asset on its balance
sheets, recognizes its share of partnership income or losses in the statements
of operations, and discloses how it accounts for material types of these
investments in its financial statements. The Partnership's balance in investment
in Local Limited Partnerships, plus the risk of recapture of tax credits
previously recognized on these investments, represents its maximum exposure to
loss. The Partnership's exposure to loss on these Local Limited Partnerships is
mitigated by the condition and financial performance of the underlying Housing
Complexes as well as the strength of the Local General Partners and their
guarantee against credit recapture to the investors in the
Partnership.





Use of
Estimates





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





Cash and Cash
Equivalents





The
Partnership considers all highly liquid investments with original maturities of
three months or less when purchased to be cash equivalents.  As of
March 31, 2011 and 2010, the Partnership had no cash equivalents.





Reporting Comprehensive
Income





The
Partnership had no items of other comprehensive income for the periods
presented.





Net Loss Per Partnership
Unit





Net loss
per Partnership Unit includes no dilution and is computed by dividing loss
available to Limited Partners by the weighted average number of Partnership
Units outstanding during the period.  Calculation of diluted net loss
per Partnership Unit is not required.





Income
Taxes





The
Partnership has elected to be treated as a pass-through entity for income tax
purposes and, as such, is not subject to income taxes. Rather, all items of
taxable income, deductions and tax credits are passed through to and are
reported by its owners on their respective income tax returns.  The
Partnership’s federal tax status as a pass-through entity is based on its legal
status as a partnership. Accordingly, the Partnership is not required to take
any tax positions in order to qualify as a pass-through entity. The Partnership
is required to file and does file tax returns with the Internal Revenue Service
and other taxing authorities. Accordingly, these financial statements do not
reflect a provision for income taxes and the Partnership has no other tax
positions which must be considered for disclosure.





38
 WNC
CALIFORNIA HOUSING TAX CREDITS, L.P.
 (A
California Limited Partnership)
 
 NOTES
TO FINANCIAL STATEMENTS – CONTINUED
 
 For
the Years Ended March 31, 2011, 2010 and 2009


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





Revenue
Recognition





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





Impact of Recent Accounting
Pronouncements





In
September 2006, the Financial Accounting Standards Board (FASB) issued
accounting guidance for Fair Value Measurements, which defines fair value,
establishes a framework for measuring fair value and expands disclosure about
fair value measurements. This guidance is effective for financial statements
issued for fiscal years beginning after November 15, 2007 and shall be applied
prospectively except for very limited transactions.  In February 2008,
the FASB delayed for one year implementation of the guidance as it pertains to
certain non-financial assets and liabilities. The Partnership adopted GAAP for
Fair Value Measurements effective April 1, 2008, except as it applies to those
non-financial assets and liabilities, for which the effective date was April 1,
2009. The Partnership has determined that adoption of this guidance has no
material impact on the Partnership’s financial statements.





In
February 2007, the FASB issued accounting guidance for The Fair Value Option for
Financial Assets and Financial Liabilities. This guidance permits entities to
choose to measure many financial instruments and certain other items at fair
value.  The fair value election is designed to improve financial
reporting by providing entities with the opportunity to mitigate volatility in
reported earnings caused by measuring related assets and liabilities differently
without having to apply complex hedge accounting provisions. It is effective for
fiscal years beginning after November 15, 2007.  On April 1,
2008, the Partnership adopted GAAP for The Fair Value Option for Financial
Assets and Financial Liabilities and elected not to apply the provisions to its
eligible financial assets and financial liabilities on the date of adoption.
Accordingly, the initial application of the guidance had no effect on the
Partnership.





In
November 2008, the FASB issued accounting guidance on Equity Method Investment
Accounting Considerations that addresses how the initial carrying value of an
equity method investment should be determined, how an impairment assessment of
an underlying indefinite-lived intangible asset of an equity method investment
should be performed, how an equity method investee’s issuance of shares should
be accounted for, and how to account for a change in an investment from the
equity method to the cost method. This guidance is effective in fiscal years
beginning on or after December 15, 2008, and interim periods within
those fiscal years. The Partnership adopted the guidance for the interim
quarterly period beginning April 1, 2009. The impact of adopting it did not have
a material impact on the Partnership’s financial condition or results of
operations.





In April
2009, the FASB issued accounting guidance for Interim Disclosures about Fair
Value of Financial Instruments.  This requires disclosure about the
method and significant assumptions used to establish the fair value of financial
instruments for interim reporting periods as well as annual
statements.  It became effective for as of and for the interim period
ended June 30, 2009 and had no impact on the Partnership’s financial condition
or results of operations.





39
 WNC
CALIFORNIA HOUSING TAX CREDITS, L.P.
 (A
California Limited Partnership)
 
 NOTES
TO FINANCIAL STATEMENTS – CONTINUED
 
 For
the Years Ended March 31, 2011, 2010 and 2009


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





In May
2009, the FASB issued guidance regarding subsequent events, which was
subsequently updated in February 2010. This guidance established general
standards of accounting for and disclosure of events that occur after the
balance sheet date but before financial statements are issued or are available
to be issued. In particular, this guidance sets forth the period after the
balance sheet date during which management of a reporting entity should evaluate
events or transactions that may occur for potential recognition or disclosure in
the financial statements, the circumstances under which an entity should
recognize events or transactions occurring after the balance sheet date in its
financial statements, and the disclosures that an entity should make about
events or transactions that occurred after the balance sheet date. This guidance
was effective for financial statements issued for fiscal years and interim
periods ending after June 15, 2009, and was therefore adopted by the
Partnership for the quarter ended June 30, 2009. The adoption did not have a
significant impact on the subsequent events that the Partnership reports, either
through recognition or disclosure, in the financial statements. In February
2010, the FASB amended its guidance on subsequent events to remove the
requirement to disclose the date through which an entity has evaluated
subsequent events, alleviating conflicts with current SEC guidance. This
amendment was effective immediately and therefore the Company did not include
the disclosure in this Form 10-K.





In June
2009, the FASB issued an amendment to the accounting and disclosure requirements
for the consolidation of VIEs.  The amended guidance modifies the
consolidation model to one based on control and economics, and replaced
quantitative primary beneficiary analysis with a qualitative
analysis.  The primary beneficiary of a VIE will be the entity that
has (1) the power to direct the activities of the VIE that most significantly
impact the VIEs economic performance and (2) the obligation to absorb losses or
receive benefits that could potentially be significant to the VIE.  If
multiple unrelated parties share such power, as defined, no party will be
required to consolidate the VIE.  Further, the amended guidance
requires continual reconsideration of the primary beneficiary of a VIE and adds
an additional reconsideration event for determination of whether an entity is a
VIE.  Additionally, the amendment requires enhanced and expanded
disclosures around VIEs.  This amendment was effective for fiscal
years beginning after November 15, 2009.  The adoption of this
guidance on April 1, 2010 did not have a material effect on the Partnership’s
financial statements.





In June
2009, the FASB issued the Accounting Standards Codification
(Codification).  Effective July 1, 2009, the Codification is the
single source of authoritative accounting principles recognized by the FASB to
be applied by non-governmental entities in the preparation of financial
statements in conformity with GAAP.  The Codification is intended to
reorganize, rather than change, existing GAAP.  Accordingly, all
references to currently existing GAAP have been removed and have been replaced
with plain English explanations of the Partnership’s accounting
policies.  The adoption of the Codification did not have a material
impact on the Partnership’s financial position or results of
operations.





NOTE 2 - INVESTMENTS IN
LOCAL LIMITED PARTNERSHIPS





As of
March 31, 2011 and 2010, the Partnership owns interests in 3 and 4 Local Limited
Partnerships, respectively. As of March 31, 2011 and 2010, these Local Limited
Partnerships each own one Housing Complex consisting of an aggregate of 107 and
149 apartment units, respectively. The respective Local General Partners of the
Local Limited Partnerships manage the day to day operations of the entities.
Significant Local Limited Partnership business decisions require approval from
the Partnership.  The Partnership, as a limited partner, is generally
entitled to 99%, as specified in the Local Limited Partnership capitalize
agreements, of the operating profits and losses, taxable income and losses, and
Low Income Housing Tax Credits of the Local Limited Partnerships.





40
 WNC
CALIFORNIA HOUSING TAX CREDITS, L.P.
 (A
California Limited Partnership)
 
 NOTES
TO FINANCIAL STATEMENTS – CONTINUED
 
 For
the Years Ended March 31, 2011, 2010 and 2009


NOTE 2 - INVESTMENTS IN
LOCAL LIMITED PARTNERSHIPS, continued





The
Partnership's investments in Local Limited Partnerships as shown in the balance
sheets at March 31, 2011 and 2010 are approximately $891,000 and $1,214,000,
respectively, greater than the Partnership's equity at the preceding
December 31 as shown in the Local Limited Partnerships’ combined condensed
financial statements presented below.  This difference is primarily
due to unrecorded losses as discussed below, and acquisition, selection and
other costs related to the acquisition of the investments which have been
capitalized in the Partnership's investment account along with impairment losses
recorded in the Partnership’s investment account.





At March
31, 2011 and 2010, the investment accounts in all of Local Limited Partnerships
have reached a zero balance. Consequently, all of the Partnership’s estimate of
its share of losses for the years ended March 31, 2011, 2010 and 2009, amounting
to approximately $81,000, $226,000 and $210,000, respectively, have not been
recognized.  As of March 31, 2011, the aggregate share of net losses
not recognized by the Partnership amounted to $949,000.





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





COMBINED
CONDENSED BALANCE SHEETS





2010
            
            2009ASSETSBuildings
      and improvements (net of accumulated depreciation as of December 31, 2010
      and 2009 of $3,833,000 and $7,009,000, respectively)
            $
            1,942,000
            $
            5,685,000Land
            
            220,000
            
            720,000Other
      assets
            
            695,000
            
            1,614,000Total
      assets
            $
            2,857,000
            $
            8,019,000LIABILITIESMortgage
      loans payable
            $
            3,666,000
            $
            8,792,000Due
      to related parties
            
            20,000
            
            239,000Other
      liabilities
            
            50,000
            
            134,000Total
      liabilities
            
            3,736,000
            
            9,165,000PARTNERS’
      EQUITY (DEFICIT)WNC
      California Housing Tax Credits, L.P.
            
            (891,000)
            
            (1,214,000)Other
      partners
            
            12,000
            
            68,000Total
      partners’ equity (deficit)
            
            (879,000)
            
            (1,146,000)Total
      liabilities and partners’ equity (deficit)
            $
            2,857,000
            $
            8,019,000


41
 WNC
CALIFORNIA HOUSING TAX CREDITS, L.P.
 (A
California Limited Partnership)
 
 NOTES
TO FINANCIAL STATEMENTS – CONTINUED
 
 For
the Years Ended March 31, 2011, 2010 and 2009





NOTE 2 - INVESTMENTS IN
LOCAL LIMITED PARTNERSHIPS, continued





COMBINED
CONDENSED STATEMENTS OF OPERATIONS





2010
            
            2009
            
            2008Revenues
            $
            623,000
            $
            1,457,000
            $
            1,772,000Expenses:Operating expenses
            
            403,000
            
            1,071,000
            
            1,274,000Interest expense
            
            75,000
            
            187,000
            
            227,000Depreciation and amortization
            
            227,000
            
            427,000
            
            483,000Total expenses
            
            705,000
            
            1,685,000
            
            1,984,000Net
      operating  loss
            $
            (82,000)
            $
            (228,000)
            $
            (212,000)Net
      loss allocable to the Partnership
            $
            (81,000)
            $
            (226,000)
            $
            (210,000)Net
      loss recorded by the Partnership
            $
            -
            $
            -
            $
            -





Additionally,
the financial information for the year ended December 31, 2010 does not include
information for Cloverdale Garden Apartments, East Garden Apartments, HPA
Investors and San Jacinto Associates, since the Partnership sold its Local
Limited Partnership Interest in those particular Local Limited Partnership as of
December 31, 2010. The December 31, 2009  financial information above
does include the financial information for Cloverdale Garden Apartments, East
Garden Apartments, HPA Investors and San Jacinto Associates and the December 31,
2008 financial information includes all four Local Limited
Partnerships.








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 Partnership Units
      as compensation for services rendered in connection with the acquisition
      of Local Limited Partnerships.  At the end of all periods
      presented, the Partnership incurred acquisition fees of
      $447,060.  Accumulated amortization of these capitalized costs
      was $447,060 for all periods
presented.





Reimbursement
      of costs incurred by the General Partners or an affiliate in connection
      with the acquisition of the Local Limited Partnerships.  These
      reimbursements have not exceeded 3% of the gross proceeds. As of the end
      of all periods presented, the Partnership had incurred acquisition costs
      of $32,018 which have been included in investments in Local Limited
      Partnerships.  Accumulated amortization of the acquisition costs
      was $32,018 for all periods
presented.


42
 WNC
CALIFORNIA HOUSING TAX CREDITS, L.P.
 (A
California Limited Partnership)
 
 NOTES
TO FINANCIAL STATEMENTS – CONTINUED
 
 For
the Years Ended March 31, 2011, 2010 and 2009


NOTE 3 – RELATED PARTY
TRANSACTIONS, continued





An
      annual asset management fee equal to 0.5% of the Invested Assets of the
      Partnership, as defined. “Invested Assets” means the sum of the
      Partnership’s investment in Local Limited Partnership interests and the
      Partnership’s allocable share of mortgage loans on and other debts related
      to the Housing Complexes owned by such Local Limited Partnerships. Asset
      management fees of $27,104, $62,328 and $86,804 were incurred during the
      years ended March 31, 2011, 2010 and 2009, respectively, of which
      $103,220, $2,500 and $79,850 was paid during the years ended March 31,
      2011, 2010 and 2009, respectively.





The
      Partnership reimbursed the General Partner or its affiliates for operating
      expenses incurred by the Partnership and paid for by the General Partner
      or its affiliates on behalf of the Partnership.  Operating
      expense reimbursements were $47,569, $148,433 and $130,158 during the
      years ended March 31, 2011, 2010 and 2009,
  respectively.





The
accrued fees and expenses due to General Partners and affiliates consist of the
following at:





March
      31,2011
            
            2010Expenses
      paid by the General Partners or affiliates on behalf of the
      Partnership
            
            
            $
            2,818
            $
            -Asset
      management fee payable
            
            
            
            1,822,379
            
            1,898,495Total
            
            
            $
            1,825,197
            $
            1,898,495





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





The
Partnership currently has insufficient working capital to fund its operations.
Associates has agreed to continue providing advances sufficient enough to fund
the operations and working capital requirements of the Partnership through June
30, 2012.





43
 WNC
CALIFORNIA HOUSING TAX CREDITS, L.P.
 (A
California Limited Partnership)
 
 NOTES
TO FINANCIAL STATEMENTS – CONTINUED
 
 For
the Years Ended March 31, 2011, 2010 and 2009





NOTE 4 – QUARTERLY RESULTS
OF OPERATIONS (UNAUDITED)





The
following is a summary of the quarterly operations for the years ended March 31
(rounded):





June
      30
            
            September
      30
            
            December
      31
            
            March
      312011Income
            $
            -
            $
            6,000
            $
            2,000
            $
            2,000Operating
      expenses
            
            (13,000)
            
            (31,000)
            
            (16,000)
            
            (9,000)Loss
      from operations
            
            (13,000)
            
            (25,000)
            
            (14,000)
            
            (7,000)Gain
      on sale of Local Limited
              Partnerships
            
            140,000
            
            -
            
            -
            
            -Net
      income (loss)
            
            127,000
            
            (25,000)
            
            (14,000)
            
            (7,000)Net
      income (loss) available to Limited Partners
            
            126,000
            
            (25,000)
            
            (14,000)
            
            (7,000)Net
      income (loss) per Partnership Unit
            
            17
            
            (3)
            
            (2)
            
            (1)








June
      30
            
            September
      30
            
            December
      31
            
            March
      312010Income
            $
            1,000
            $
            -
            $
            -
            $
            3,000Operating
      expenses
            
            (33,000)
            
            (84,000)
            
            (20,000)
            
            (11,000)Loss
      from operations
            
            (32,000)
            
            (84,000)
            
            (20,000)
            
            (8,000)Gain
      on sale of Local Limited
              Partnerships
            
            -
            
            40,000
            
            -
            
            97,000Net
      income (loss)
            
            (32,000)
            
            (44,000)
            
            (20,000)
            
            89,000Net
      income (loss) available to Limited Partners
            
            (31,000)
            
            (43,000)
            
            (20,000)
            
            88,000Net
      income (loss) per Partnership Unit
            
            (4)
            
            (6)
            
            (3)
            
            12


44
 WNC
CALIFORNIA HOUSING TAX CREDITS, L.P.
 (A
California Limited Partnership)
 
 NOTES
TO FINANCIAL STATEMENTS – CONTINUED
 
 For
the Years Ended March 31, 2011, 2010 and 2009





NOTE 4 – QUARTERLY RESULTS
OF OPERATIONS (UNAUDITED), continued





June
      30
            
            September
      30
            
            December
      31
            
            March
      312009Income
            $
            1,000
            $
            4,000
            $
            1,000
            $
            1,000Operating
      expenses
            
            (31,000)
            
            (30,000)
            
            (28,000)
            
            (31,000)Loss
      from operations
            
            (30,000)
            
            (26,000)
            
            (27,000)
            
            (30,000)Gain
      on sale of Local Limited
              Partnerships
            
            -
            
            -
            
            45,000
            
            -Net
      income (loss)
            
            (30,000)
            
            (26,000)
            
            18,000
            
            (30,000)Net
      income (loss) available to Limited Partners
            
            (30,000)
            
            (26,000)
            
            18,000
            
            (29,000)Net
      income (loss) per Partnership Unit
            
            (4)
            
            (3)
            
            2
            
            (4)








45








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





NONE





Item
9A. Controls and Procedures





(a)           Evaluation
of disclosure controls and procedures





As of the
end of the period covered by this report, the Partnership’s General Partner,
under the supervision and with the participation of the Chief Executive Officer
and Chief Financial Officer of Associates, carried out an evaluation of the
effectiveness of the Partnership’s “disclosure controls and procedures” as
defined in Securities Exchange Act of 1934 Rules 13a-15 and 15d-15. Based on
that evaluation, the Chief Executive Officer and Chief Financial Officer have
concluded that, as of the end of the period covered by this report, the
Partnership’s disclosure controls and procedures were not effective to ensure
that material information required to be disclosed in the Partnership’s periodic
report filings with SEC is recorded, processed, summarized and reported within
the time period specified by the SEC’s rules and forms, consistent with the
definition of “disclosure controls and procedures” under the Securities Exchange
Act of 1934.





The
Partnership must rely on the Local Limited Partnerships to provide the
Partnership with certain information necessary to the timely filing of the
Partnership’s periodic reports. Factors in the accounting at the Local Limited
Partnerships have caused delays in the provision of such information during past
reporting periods, and resulted in the Partnership’s inability to file its
periodic reports in a timely manner.





Once the
Partnership has received the necessary information from the Local Limited
Partnerships, the Chief Executive Officer and the Chief Financial Officer of
Associates believe that the material information required to be disclosed in the
Partnership’s periodic report filings with SEC is effectively recorded,
processed, summarized and reported, albeit not in a timely manner. Going
forward, the Partnership will use the means reasonably within its power to
impose procedures designed to obtain from the Local Limited Partnerships the
information necessary to the timely filing of the Partnership’s periodic
reports.





(b)           Management’s annual report
on internal control over financial reporting





The
management of Associates is responsible for establishing and maintaining for the
Partnership adequate internal control over financial reporting as that term is
defined in Securities Exchange Act of 1934 Rules 13a-15(f) and 15d-15(f), and
for performing an assessment of the effectiveness of internal control over
financial reporting as of March 31, 2011. The internal control process of
Associates, as it is applicable to the Partnership, was designed to provide
reasonable assurance to Associates regarding the preparation and fair
presentation of published financial statements, and includes those policies and
procedures that:





(1)
            Pertain
      to the maintenance of records that in reasonable detail accurately and
      fairly reflect the transactions and dispositions of the assets of the
      Partnership;


(2)
            Provide
      reasonable assurance that transactions are recorded as necessary to permit
      preparation of financial statements in accordance with generally accepted
      accounting principles in the United States, and that the Partnership’s
      receipts and expenditures are being made only in accordance with
      authorization of the management of Associates;
  and


(3)
            Provide
      reasonable assurance regarding prevention or timely detection of
      unauthorized acquisition, use or disposition of the Partnership’s assets
      that could have a material effect on the financial
    statements.





46


All
internal control processes, no matter how well designed, have inherent
limitations. Therefore, even those processes determined to be effective can
provide only reasonable assurance with respect to the reliability of financial
statement preparation and presentation. Further, projections of any evaluation
of effectiveness to future periods are subject to the risk that controls may
become inadequate because of changes in conditions or that the degree of
compliance with the policies or procedures may deteriorate.





Management
of Associates assessed the effectiveness of its internal control over financial
reporting, as it is applicable to the Partnership, as of the end of the
Partnership’s most recent fiscal year. In making this assessment, it used the
criteria set forth in Internal Control – Integrated Framework issued by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based
on its assessment, management of Associates concluded that, for the reasons set
forth above under “Disclosure controls and procedures,” the internal control
over financial reporting, as it is applicable to the Partnership, was not
effective as of March 31, 2011.


For
purposes of the Securities Exchange Act of 1934, the term “material weakness” is
a deficiency, or a combination of deficiencies, in a reporting company’s
internal control over financial reporting such that there is a reasonable
possibility that a material misstatement of the company's annual or interim
financial statements will not be prevented or detected on a timely
basis.  For the reasons discussed above in this Item 9A, sub-section
(a) under the caption “Disclosure Controls and Procedures,” the Partnership’s
internal control over financial reporting has not been effective in permitting
timely reporting of the Partnership’s financial
information.  Accordingly, the management of Associates believes that
this inability to generate timely reports constitutes a material weakness in its
internal control over financial reporting.





(c)           Changes in internal
controls





There
were no changes in the Partnership’s internal control over financial reporting
that occurred during the year ended March 31, 2011 that materially affected, or
are reasonably likely to materially affect, the Partnership’s internal control
over financial reporting.





Item
      9B. Other Information





NONE





PART
III.





Item
10. Directors, Executive Officers and Corporate Governance





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





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


47




Wilfred
      N. Cooper, Sr.
            ChairmanWilfred
      N. Cooper, Jr.
            President,
      Chief Executive Officer and SecretaryMichael
      J. Gaber
            Executive
      Vice President and Chief Operating OfficerDavid
      N. Shafer, Esq.
            Executive
      Vice PresidentDarrick
      Metz
            Senior
      Vice PresidentMelanie
      R. Wenk, CPA
            Vice
      President - Chief Financial OfficerPaula
      Hall
            Vice
      President - Asset ManagementChristine
      A. Cormier
            Senior
      Vice President - Fund ManagementGregory
      S. Hand
            Vice
      President - AcquisitionsKelly
      Henderson
            Vice
      President - AcquisitionsThomas
      F. Maxwell
            Vice
      President - OriginationsKay
      L. Cooper
            Director
      of WNC & Associates, Inc.Jennifer
      E. Cooper
            Director
      of WNC & Associates, Inc.





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





Wilfred
N. Cooper, Sr., age 80, is the founder and Chairman of the Board of Directors of
WNC & Associates, Inc., a Director of WNC Capital Corporation, and a general
partner in some of the partnerships previously sponsored by WNC &
Associates, Inc. Mr. Cooper has been actively involved in the affordable housing
industry since 1968. Previously, during 1970 and 1971, he was founder and a
principal of Creative Equity Development Corporation, a predecessor of WNC &
Associates, Inc., and of Creative Equity Corporation, a real estate investment
firm. For 12 years before that, Mr. Cooper was employed by Rockwell
International Corporation, last serving as its manager of housing and urban
developments where he had responsibility for factory-built housing evaluation
and project management in urban planning and development. He has testified
before committees of the U.S. Senate and the U.S. House of Representatives on
matters pertaining to the affordable housing industry. Mr. Cooper is a Life
Director of the National Association of Home Builders (“NAHB”), a National
Trustee for NAHB’s Political Action Committee, and a past Chairman of NAHB’s
Multifamily Council. He is a Life Trustee of the National Housing Conference,
and a co-founder and Director Emeritus of the California Housing Consortium. He
is the husband of Kay Cooper and the father of Wilfred N. Cooper, Jr. Mr. Cooper
graduated from Pomona College in 1956 with a Bachelor of Arts
degree.





Wilfred
N. Cooper, Jr., age 48, is President, Chief Executive Officer, Secretary, a
Director, and a member of the Acquisition Committee, of WNC & Associates,
Inc. He is President and a Director of, and a registered principal with, WNC
Capital Corporation. He has been involved in real estate investment and
acquisition activities since 1988 when he joined WNC & Associates, Inc.
Previously, he served as a Government Affairs Assistant with Honda North America
in Washington, D.C. Mr. Cooper serves on the Orange County Advisory Board of
U.S. Bank and the New York State Association for Affordable Housing, the Board
of Trustees of NHC, the Editorial Advisory Board of Tax Credit Advisor, and the
Tax Policy Council of the National Trust for Historic
Preservation.  He is a member of the Urban Land Institute and of
Vistage International, a global network of business leaders and chief
executives. He is the son of Wilfred Cooper, Sr. and Kay Cooper. Mr. Cooper
graduated from The American University in 1985 with a Bachelor of Arts
degree.





Michael
J. Gaber, age 45, is an Executive Vice President, Chief Operating Officer, chair
of the Acquisition Committee, and oversees the Property Acquisition and
Investment Management groups, of WNC & Associates, Inc. Mr. Gaber has been
involved in real estate acquisition, valuation and investment activities since
1989 and has been associated with WNC & Associates, Inc. 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 a large financial institution. Mr. Gaber is a member of the
Housing Credit Group of NAHB and of National Housing and Rehabilitation
Association (“NH&RA”). Mr. Gaber graduated from the California State
University, Fullerton in 1991 with a Bachelor of Science degree in Business
Administration – Finance.


48




David N.
Shafer, age 58, is an Executive Vice President, chair of the Portfolio
Disposition Committee, a member of the Acquisition Committee, and oversees the
New Markets Tax Credit group, of WNC & Associates, Inc. Mr. Shafer has been
active in the real estate industry since 1984. Before joining WNC &
Associates, Inc. in 1990, he was engaged as an attorney in the private practice
of law with a specialty in real estate and taxation. Mr. Shafer is a Director
and past President of the California Council of Affordable Housing, a Director
of the Council for Affordable and Rural 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 Laws degree in Taxation.





Darrick
Metz, age 40, is Senior Vice President – Originations of WNC & Associates,
Inc. He has been involved in multifamily property underwriting, acquisition and
investment activities since 1991. Prior to joining WNC in 1999, he was employed
by a Minnesota development company specializing in tax credit and market rate
multifamily projects. Mr. Metz also worked with the Minnesota Housing Finance
Agency (“MHFA”), where he held the position of Senior Housing Development
Officer. While at MHFA, he was responsible for the allocation of tax credits,
HOME funds and state loan products. Mr. Metz is active in the Qualified
Allocation Plan Tax Credit Advisory Committee for the Wisconsin Housing and
Economic Development Authority, a member of MHFA’s Multifamily Technical
Assistance and a board member of NH&RA. He graduated from St. Cloud State
University in 1993 with a Bachelor of Science degree in
finance/economics.





Melanie
R. Wenk, age 43, is Vice President – Chief Financial Officer of WNC &
Associates, Inc. She oversees WNC’s corporate and partnership accounting group,
which is responsible for SEC reporting and New Markets Tax Credit compliance.
Prior to joining WNC in 2003, Ms. Wenk was associated as a public accountant
with BDO Seidman, LLP. She graduated from the California Polytechnic State
University, Pomona in 1999 with a Bachelor of Science degree in
accounting.





Paula
Hall, age 44, is Vice President – Asset Management, a member of the Acquisition
Committee, and oversees the asset management group, of WNC & Associates,
Inc. She joined WNC in 1997 and has more than 21 years of property management
experience. Ms. Hall is a Certified Occupancy Specialist (CPO), Housing Credit
Certified Professional (HCCP), and Certified Property Manager (CPM) candidate.
Prior to joining WNC, she was a property manager for NHP Property Management
(AIMCO) where she oversaw operations, training and development.





Christine
A. Cormier, age 52, is Senior Vice President – Fund Management, a member of the
Placement Committee and the Disposition Committee, and oversees the fund
management group, of WNC & Associates, Inc. Ms. Cormier has been active in
the real estate industry since 1985. Prior to joining WNC in 2008, Ms. Cormier
was with another major tax credit syndicator for over 12 years where she was the
Managing Director of investor relations. Ms. Cormier graduated from Bentley
University in 1982 with a Bachelor of Science degree (summa cum laude) in
accounting and computer science.





Gregory
S. Hand, age 47, is Vice President – Acquisitions, and oversees the property
underwriting activities, of the Irvine office of WNC & Associates, Inc. Mr.
Hand has been involved in real estate analysis, development and management since
1987. Prior to joining WNC in 1998, he was a portfolio asset manager with a
national tax credit sponsor with responsibility for the management of $200
million in assets. Prior to that, he was a finance manager with The Koll Company
and a financial analyst with The Irvine Company. Mr. Hand graduated from Iowa
State University in 1987 with a Bachelor of Business Administration degree in
finance.





Kelly
Henderson, Esq., age 39, is Vice President – Acquisitions, and oversees the
property underwriting activities of the New York City office, of WNC &
Associates, Inc. Prior to joining WNC in 2006, she was Vice President –
Acquisitions and Senior Counsel with a national tax credit
syndicator.  Ms. Henderson has been underwriting tax credit properties
since 1999. She graduated from the State University of New York at Geneseo in
1993 with a Bachelor of Arts degree in political science, and from the New
England School of Law in 1996 with a Juris Doctor degree.  She is
licensed to practice law in the States of New York and
Massachusetts.


49




Thomas F.
Maxwell, age 59, is Vice President – Originations of the Northeast Region. He
has 17 years of experience in the tax credit industry, and more than 30 years of
real estate experience, including originating, structuring and closing all types
of affordable housing developments. Prior to joining WNC in 2009, he served as a
team leader for a national tax credit syndicator for nine years. Mr. Maxwell
graduated from Case Western Reserve University in 1974 with a Bachelor of Arts
degree in English, and from Boston University in 1980 with a Master of Business
Administration degree.





Kay L.
Cooper, age 73, is a Director of WNC & Associates, Inc. and has not
otherwise been engaged in business activities during the previous five years.
Kay Cooper was the sole proprietor of Agate 108, a manufacturer and retailer of
home accessory products from 1975 until its sale in 1998. She is the wife of
Wilfred Cooper, Sr. and the mother of Wilfred Cooper, Jr. Ms. Cooper graduated
from the University of Southern California in 1958 with a Bachelor of Science
degree.





Jennifer
E. Cooper, age 47, is a Director of WNC & Associates, Inc. and has not
otherwise been engaged in business activities during the previous five years.
She is the wife of Wilfred Cooper, Jr. and attended the University of Texas from
1981 to 1986.





(f)
            Involvement in Certain
      Legal Proceedings





None.





(g)
            Promoters and Control
      Persons





Inapplicable.





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





Neither
the Partnership nor the General Partners, has an audit committee.





(j)   Changes to Nominating
Procedures





Inapplicable.





(k)  Compliance With Section
16(a) of the Exchange Act





None.





(l)   Code of
Ethics





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


50




Item
11.  Executive Compensation





The
General Partners and their Affiliates are not permitted under Section 5.6 of the
Partnership’s Agreement of Limited Partnership (the “Agreement,” incorporated as
Exhibit 3.1 to this report) to receive any salary, fees, profits, distributions
or allocations from the Partnership or any Local Limited Partnership in which
the Partnership invests except as expressly allowed by the
Agreement.  The compensation and other economic benefits to the
General Partner and its Affiliates provided for in the Agreement are summarized
below.





(a)  Compensation for
Services





For
services rendered by the General Partner or an Affiliate of the General Partner
in connection with the administration of the affairs of the Partnership, the
General Partner or any such Affiliate may receive an annual asset management fee
in an amount equal to 0.5% of Invested Assets in Local Limited Partnerships
which are subsidized under one or more Federal, state or local housing
assistance programs. The asset management fee is payable with respect to the
previous calendar quarter on the first day of each calendar quarter during the
year. Accrued but unpaid asset management fees for any year are deferred without
interest and are payable in subsequent years from any funds available to the
Partnership after payment of all other costs and expenses of the Partnership,
including any capital reserves then determined by the General Partner to no
longer be necessary to be retained by the Partnership, or from the proceeds of a
sale or refinancing of Partnership assets.    Asset
management fees of approximately $27,000, $62,000 and $87,000 were incurred
during the years ended March 31, 2011, 2010 and 2009, respectively. The
Partnership paid the General Partners and or their affiliates $103,000, $3,000
and $80,000 of those fees during the years ended March 31, 2011, 2010 and 2009,
respectively.





Subject
to a number of terms and conditions set forth in the Agreement, the General
Partner and its Affiliates may be entitled to compensation for services actually
rendered or to be rendered in connection with (i) selecting, evaluating,
structuring, negotiating and closing the Partnership's investments in Local
Limited Partnership Interests, (ii) the acquisition or development of Properties
for the Local Limited Partnerships, or (iii) property management services
actually rendered by the General Partners or their Affiliates respecting the
Properties owned by Local Limited Partnerships.  The Partnership has
completed its investment stage, so no compensation for the services in (i) or
(ii) has been paid during the period covered by this report and none will be
paid in the future.  None of the services described in (iii) were
rendered and no such compensation was payable for such services during the
periods covered by this report.





(b)  Operating
Expenses





Reimbursement
to a General Partner or any of its Affiliates of Operating Cash Expenses is
subject to specific restrictions in Section 5.3.4 of the Partnership’s Agreement
of Limited Partnership (the “Agreement,” incorporated as Exhibit 3.1 to this
report).  The Agreement defines “Operating Cash Expenses”
as  51




“ . . .
the amount of cash disbursed by the Partnership . . . in the ordinary course of
business for the payment of its operating expenses, such as expenses for
advertising and promotion, management, utilities, repair and maintenance,
insurance, investor communications, legal, accounting, statistical and
bookkeeping services, use of computing or accounting equipment, travel and
telephone expenses, salaries and direct expenses of Partnership employees while
engaged in Partnership business, and any other operational and administrative
expenses necessary for the prudent operation of the Partnership. Without
limiting the generality of the foregoing, Operating Cash Expenses shall include
fees paid by the Partnership to any General Partner or any Affiliate of a
General Partner permitted by this Agreement and the actual cost of goods,
materials and administrative services used for or by the Partnership, whether
incurred by a General Partner, an Affiliate of a General Partner or a
non-Affiliated Person in performing the foregoing functions. As used in the
preceding sentence, actual cost of goods and materials means the actual cost of
goods and materials used for or by the Partnership and obtained from entities
not Affiliated with a General Partner, and actual cost of administrative
services means the pro rata cost of personnel (as if such persons were employees
of the Partnership) associated therewith, but in no event to exceed the
Competitive amount.”





The
Agreement provides that no such reimbursement shall be permitted for services
for which a General Partner or any of its Affiliates is entitled to compensation
by way of a separate fee.  Furthermore, no such reimbursement is to be
made for (a) rent or depreciation, utilities, capital equipment or other such
administrative items, and (b) salaries, fringe benefits, travel expenses and
other administrative items incurred or allocated to any "controlling person" of
a General Partner or any Affiliate of a General Partner. For the purposes of
Section 5.3.4, "controlling person" includes, but is not limited to, any person,
however titled, who performs functions for a General Partner or any Affiliate of
a General Partner similar to those of: (1) chairman or member of the board of
directors; (2) executive management, such as president, vice president or senior
vice president, corporate secretary or treasurer; (3) senior management, such as
the vice president of an operating division who reports directly to executive
management; or (4) those holding 5% or more equity interest in such General
Partner or any such Affiliate of a General Partner or a person having the power
to direct or cause the direction of such General Partner or any such Affiliate
of a General Partner, whether through the ownership of voting securities, by
contract or otherwise.





The
unpaid operating expenses reimbursable to the General Partner or its affiliates
were $2,818, $0 and $56,893 as of March 31, 2011, 2010 and 2009,
respectively.   The Partnership reimbursed the General Partner or
its affiliates for operating expenses of $47,569, $148,433 and $130,158 during
the years ended March 31, 2011, 2010 and 2009, respectively.





(c)   Interest
in Partnership





The
General Partner receives 1% of the Partnership’s allocated Low Income Housing
Tax Credits, which approximated $0 for Associates and $0 for the General Partner
in the aggregate for each of the tax years (calendar years) ended December 31,
2010, 2009 and 2008. The General Partner is also entitled to receive 1% of the
Partnership’s operating income or losses, gain or loss from the sale of property
and operating cash distributions. There were no distributions of operating cash
to the General Partner during the years ended March 31, 2011, 2010 and
2009.   The General Partner has an interest in sale or
refinancing proceeds as follows: after the Limited Partners have received a
return of their capital, General Partner may receive an amount equal to its
capital contribution, less any prior distribution of such proceeds, then the
General Partner may receive 1% and the Limited Partners 99% of any remaining
proceeds.  The distributions of cash to the General Partners during
each of the years ended March 31, 2011, 2010 and 2009 were $0.


52




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





(a)
            Securities Authorized
      for Issuance Under Equity Compensation
  Plans





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





(b)
            Security Ownership of
      Certain Beneficial Owners





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





(c)
            Security Ownership of
      Management





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




(d)
            Changes in
      Control





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





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





Item
13.  Certain Relationships and Related Transactions, and Director
Independence





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





(b)
            The
      Partnership has no directors.


53




Item
14. Principal Accountant Fees and Services





The
following is a summary of fees paid to the Partnership’s principal independent
registered public accounting firm for the years ended March 31:





2011
            
            2010Audit
      Fees
            $
            20,860
            $
            47,620Audit-related
      Fees
            
            -
            
            -Tax
      Fees
            
            3,035
            
            3,035All
      Other Fees
            
            -
            
            7,595TOTAL
            $
            23,895
            $
            58,250





The
Partnership has no Audit Committee. All audit services and any permitted
non-audit services performed by the Partnership’s independent auditors are
pre-approved by the General Partner.


54




PART
IV.





Item
15.  Exhibits and Financial Statement Schedules





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





Balance
      Sheets, March 31, 2011 and 2010


Statements
      of Operations for the years ended March 31, 2011, 2010 and
      2009


Statements
      of Partners’ Deficit for the years ended March 31, 2011, 2010 and
      2009


Statements
      of Cash Flows for the years ended March 31, 2011, 2010 and
      2009


Notes
      to Financial Statements





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





Schedule
III - Real Estate Owned by Local Limited Partnerships





(a)(3)      Exhibits.





31.1
            Certification
      of the Chief Executive Officer pursuant to Rule 13a-14 or
      15d-14.  (filed herewith)





31.2
            Certification
      of the Chief Financial Officer pursuant to Rule 13a-14 or
      15d-14.  (filed herewith)





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





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


55




WNC
      California Housing Tax Credits, L.P.Schedule
      IIIReal
      Estate Owned by Local Limited PartnershipsMarch
      31, 2011As
      of March 31, 2011
            As
      of December 31, 2010Local
      Limited
              Partnership
      Name
            Location
            Partnership’s
      Total Investment in Local Limited Partnerships
            Amount
      of Investment Paid to Date
            Mortgage
      Balances of Local Limited Partnership
            Land
            Buildings
      & Equipment
            Accumulated
      Depreciation
            Net
      Book ValueAlta
      Vista Investors (1)
            Orosi,
      California
            $583,000
            $583,000
            $1,366,000
            $40,000
            $2,394,000
            $1,753,000
            $681,000Knights
      Landing Harbor
            Knights
      Landing, California
            275,000
            275,000
            934,000
            100,000
            1,281,000
            683,000
            698,000Midland
      Manor (1) Associates
            Mendota,
      California
            383,000
            
            383,000
            
            1,366,000
            
            80,000
            
            2,100,000
            
            1,397,000
            
            783,000$1,241,000
            
            $1,241,000
            
            $3,666,000
            
            $220,000
            
            $5,775,000
            
            $3,833,000
            
            $2,162,000





(1)      The
Local Limited Partnership has been identified for sale as of March 31,
2011.


56




WNC
      California Housing Tax Credits, L.P.Schedule
      IIIReal
      Estate Owned by Local Limited PartnershipsMarch
      31, 2011For
      the year ended December 31, 2010Local
      Limited Partnership Name
            Rental
      Income
            Loss
            Year
      Investment Acquired
            Status
            Estimated
      Useful Life (Years)Alta
      Vista Investors (1)
            $231,000
            $(40,000)
            1989
            Completed
            27.5Knights
      Landing Harbor
            181,000
            (8,000)
            1989
            Completed
            40Midland
      Manor Associates (1)
            216,000
            
            (34,000)
            1990
            Completed
            27.5$628,000
            
            $(82,000)








(1)
            The
      Local Limited Partnership has been identified for sale as of March 31,
      2011.


57


Schedule
      IIIReal
      Estate Owned by Local Limited PartnershipsMarch
      31, 2010As
      of March 31, 2010
            As
      of December 31, 2009Local
      Limited
              Partnership
      Name
            Location
            Partnership’s
      Total Investment in Local Limited Partnerships
            Amount
      of Investment Paid to Date
            Mortgage
      Balances of Local Limited Partnership
            Land
            Buildings
      & Equipment
            Accumulated
      Depreciation
            Net
      Book ValueAlta
      Vista Investors
            Orosi,
      California
            $583,000
            $583,000
            $1,375,000
            $40,000
            $2,389,000
            $1,646,000
            $783,000Cloverdale
      Garden Apartments
            Cloverdale,
      California
            *
            *
            1,575,000
            182,000
            2,059,000
            1,004,000
            1,237,000East
      Garden Apartments
            Jamestown,
      California
            *
            *
            2,073,000
            225,000
            2,748,000
            1,338,000
            1,635,000HPA
      Investors (1)
            Shafter,
      California
            538,000
            538,000
            1,454,000
            93,000
            2,123,000
            1,059,000
            1,157,000Knights
      Landing Harbor
            Knights
      Landing, California
            275,000
            275,000
            941,000
            100,000
            1,281,000
            648,000
            733,000Midland
      Manor Associates
            Mendota,
      California
            383,000
            
            383,000
            
            1,374,000
            
            80,000
            
            2,094,000
            
            1,314,000
            
            860,000$1,779,000
            
            $1,779,000
            
            $8,792,000
            
            $720,000
            
            $12,694,000
            
            $7,009,000
            
            $6,405,000





(1)      The
Local Limited Partnership was sold subsequent to March 31, 2010. The transaction
was approved by the Limited Partners and closed on May 20, 2010.





*      The
Local Limited Partnership Interest was sold subsequent to December 31, 2009 and
prior to March 31, 2010.





Note: San
Jacinto was sold August 17, 2009.


58


WNC
      California Housing Tax Credits, L.P.Schedule
      IIIReal
      Estate Owned by Local Limited PartnershipsMarch
      31, 2010For
      the year ended December 31, 2009Local
      Limited Partnership Name
            Rental
      Income
            Net
      Income (Loss)
            Year
      Investment Acquired
            Status
            Estimated
      Useful Life (Years)Alta
      Vista Investors
            $212,000
            $(83,000)
            1989
            Completed
            27.5Cloverdale
      Garden Apartments
            265,000
            (12,000)
            1989
            Completed
            40East
      Garden Apartments
            320,000
            (63,000)
            1989
            Completed
            40HPA
      Investors
            239,000
            (23,000)
            1989
            Completed
            40Knights
      Landing Harbor
            180,000
            2,000
            1989
            Completed
            40Midland
      Manor Associates
            201,000
            
            (49,000)
            1990
            Completed
            27.5$1,417,000
            
            $(228,000)








(1) The
Local Limited Partnership was sold subsequent to March 31, 2010. The transaction
was approved by the Limited Partners and closed on May 20, 2010.








Note: San
Jacinto was sold August 17, 2009.


59


WNC
      California Housing Tax Credits, L.P.Schedule
      IIIReal
      Estate Owned by Local Limited PartnershipsMarch
      31, 2009As
      of March 31, 2009
            As
      of December 31, 2008Local
      Limited
              Partnership
      Name
            Location
            Partnership’s
      Total Investment in Local Limited Partnerships
            Amount
      of Investment Paid to Date
            Mortgage
      Balances of Local Limited Partnership
            Land
            Buildings
      & Equipment
            Accumulated
      Depreciation
            Net
      Book ValueAlta
      Vista Investors
            Orosi,
      California
            $583,000
            $583,000
            $1,375,000
            $40,000
            $2,389,000
            $1,646,000
            $783,000Cloverdale
      Garden Apartments
            Cloverdale,
      California
            617,000
            617,000
            1,575,000
            182,000
            2,059,000
            1,004,000
            1,237,000East
      Garden Apartments
            Jamestown,
      California
            770,000
            770,000
            2,073,000
            225,000
            2,748,000
            1,338,000
            1,635,000HPA
      Investors (1)
            Shafter,
      California
            538,000
            538,000
            1,454,000
            93,000
            2,123,000
            1,059,000
            1,157,000Knights
      Landing Harbor
            Knights
      Landing, California
            275,000
            275,000
            941,000
            100,000
            1,281,000
            648,000
            733,000Midland
      Manor Associates
            Mendota,
      California
            383,000
            383,000
            1,374,000
            80,000
            2,094,000
            1,314,000
            860,000San
      Jacinto Associates
            San
      Jacinto, California
            469,000
            
            469,000
            
            1,723,000
            
            223,000
            
            2,142,000
            
            802,000
            
            1,563,000$3,635,000
            
            $3,635,000
            
            $10,568,000
            
            $943,000
            
            $14,727,000
            
            $7,385,000
            
            $8,285,000





60


WNC
      California Housing Tax Credits, L.P.Schedule
      IIIReal
      Estate Owned by Local Limited PartnershipsMarch
      31, 2009For
      the year ended December 31, 2008Local
      Limited Partnership Name
            Rental
      Income
            Net
      Income (Loss)
            Year
      Investment Acquired
            Status
            Estimated
      Useful Life (Years)Alta
      Vista Investors
            $232,000
            $(72,000)
            1989
            Completed
            27.5Cloverdale
      Garden Apartments
            263,000
            (11,000)
            1989
            Completed
            40East
      Garden Apartments
            313,000
            (56,000)
            1989
            Completed
            40HPA
      Investors
            243,000
            -
            1989
            Completed
            40Knights
      Landing Harbor
            174,000
            1,000
            1989
            Completed
            40Midland
      Manor Associates
            205,000
            (42,000)
            1990
            Completed
            27.5San
      Jacinto Associates
            287,000
            
            (32,000)
            1990
            Completed
            50$1,717,000
            
            $(212,000)





61


SIGNATURES








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





WNC
CALIFORNIA HOUSING TAX CREDITS, L.P.





By:          WNC
& Associates, Inc.,


General
Partner





By:          /s/ Wilfred N. Cooper,
Jr.


Wilfred N. Cooper,
Jr.,


President
of WNC & Associates, Inc.





Date: 
June 27, 2011





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








By:          /s/ Wilfred N. Cooper,
Jr.


Wilfred
N. Cooper, Jr.,


Chief
Executive Officer, President and Director of WNC & Associates, Inc.
(principal executive officer)





Date: 
June 27, 2011








By:          /s/ Melanie R.
Wenk


Melanie
R. Wenk


Vice-President
- Chief Financial Officer of WNC & Associates, Inc. (principal financial
officer and principal accounting officer)





Date: 
June 27, 2011








By:          /s/ Wilfred N. Cooper,
Sr.


Wilfred
N. Cooper, Sr.,


Chairman
of the Board of WNC & Associates, Inc.





Date: 
June 27, 2011





By:          /s/ Kay L.
Cooper


Kay L.
Cooper


Director
of WNC & Associates, Inc.





Date: 
June 27, 2011











62