SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-K

(Mark One)

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

                        For the year ended March 31, 2004

                                       OR

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

           For the transition period from ___________ to _____________

                         Commission file number: 0-20058


                    WNC CALIFORNIA HOUSING TAX CREDITS, L.P.
                    (Exact name of registrant as specified in its charter)
                      California                               33-0316953
                    (State or other jurisdiction of         (I.R.S. Employer
                    incorporation or organization)           Identification No.)

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

                                 (714) 662-5565
                               (Telephone number)


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

                                      NONE

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

                      UNITS OF LIMITED PARTNERSHIP INTEREST
                                (Title of Class)

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






<PAGE>



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

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

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

                                  INAPPLICABLE

                       DOCUMENTS INCORPORATED BY REFERENCE

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

                                      NONE


                                       2
<PAGE>



PART I.

Item 1.  Business

Organization

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

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

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

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.

Description of Business

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

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

As of March 31, 2004,  the  Partnership  had  invested in eleven  Local  Limited
Partnerships.  Each of these Local Limited  Partnerships  owns a Housing Complex
that was  eligible for the Federal Low Income  Housing  Credit and eight of them
were  eligible for the  California  Low Income  Housing  Credit.  Certain  Local
Limited Partnerships may also benefit from government programs promoting low- or
moderate-income housing.


                                       3
<PAGE>

Certain Risks and Uncertainties

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

The Low Income  Housing  Credit rules are extremely  complicated.  Noncompliance
with these rules  results in the loss of future Low Income  Housing  Credits and
the  fractional  recapture  of Low Income  Housing  Credits  already  taken.  An
individual  Limited  Partner's  ability to use tax credits is  limited.  In most
cases,  the  annual  amount of Low Income  Housing  Credits  that an  individual
Limited Partner can use is limited to the tax liability due on the person's last
$25,000 of taxable  income.  Low Income Housing Credits may be the only material
benefit from the  Partnership  because  Limited  Partners may not get back their
capital.  Any  transactions  between  the  Partnership  and  Associates  and its
affiliates will entail conflicts of interest.

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  Credits,  and a  fractional  recapture  of prior Low
Income Housing Credits would occur. At any time, a foreclosure would result in a
loss of the Partnership's  investment in the Housing Complex. 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  Credits and  recapture  of Low Income
Housing 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
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.

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


                                       4
<PAGE>

There are limits on the transferability of units, including a prohibition on the
transfer of more than 50% of the Units in a 12-month  period.  No trading market
for the Units exists or is expected to develop.  Limited  Partners may be unable
to sell their Units except at a discount and should consider their 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.

Anticipated  future and  existing  cash  resources  are not  sufficient  to meet
existing   contractual  cash  obligations.   Substantially  all  of  the  future
contractual  cash  obligations  of the  Partnership  are  payable to the General
Partner.  Though a substantial portion of the amounts contractually obligated to
the  General  Partner  are  contractually  currently  payable,  the  Partnership
anticipates  that the  General  Partner  will not  require  the payment of these
contractual  obligations  until  capital  reserves  are in excess of the  future
foreseeable  working  capital  requirements  of the  Partnership.  However,  the
Partnership is  contractually  required to pay these  obligations to the General
Partner on a current basis. The Partnership  would be adversely  affected should
the General Partner demand current payment of these contractual  obligations and
or suspend services for this or any other reason.

Exit Strategy

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

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

Upon identifying  those  properties with the highest  potential for a successful
sale,  refinancing  or  syndication,  the  Partnership  expects to proceed  with
efforts to liquidate those properties.  The objective is to maximize the Limited
Partners' return wherever possible and, ultimately, to wind down the Partnership
when it no longer  provides tax  benefits to Limited  Partners.  However,  Local
Limited  Partnership  interests  may be disposed any time by  Associates  in its
discretion.  To date, no properties  in the  Partnership  have been selected for
disposition.

Item 2. Properties

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


                                       5
<PAGE>

<TABLE>
<CAPTION>
                                                        ----------------------------  ----------------------------------------------
                                                           As of March 31, 2004                   As of December 31, 2003
                                                        ----------------------------  ----------------------------------------------
                                                          Partnership's    Amount of                      Estimated         Mortgage
                                                         Total Investment  Investment                   Aggregate Low    Balances of
   Local Limited                       General Partner   in Local Limited  Paid to     Number          Income Housing  Local Limited
  Partnership Name        Location       Name               Partnership     Date     of Units  Occupancy   Credits (1)  Partnerships
------------------------------------------------------------------------------------------------------------------------------------
<S>                       <C>            <C>                  <C>          <C>           <C>      <C>   <C>             <C>
                                         Philip R. Hammond,
Alta Vista                Orosi,         Jr. and Diane M.
Investors                 California     Hammond              $  583,000   $ 583,000     42       98%   $   1,274,000   $  1,418,000


BCA                       Anderson,      Douglas W.
Associates                California     Young                   514,000     514,000     40      100%       1,105,000      1,407,000

                                         David J. Michael,
                                         Patrick R.
                                         Sabelhaus and
Cloverdale                               Professional
Garden                    Cloverdale,    Apartment
Apartments                California     Management              617,000     617,000     34       97%       1,387,000      1,619,000


                                         Philip R. Hammond,
Countryway                Mendota,       Jr. and Diane M.
Associates                California     Hammond                 571,000     571,000     41       98%       1,162,000      1,458,000

                                         David J. Michael
                                         and Professional
East Garden               Jamestown,     Apartment
Apartments                California     Management              770,000     770,000     51       98%       1,772,000      2,135,000

HPA                       Shafter,       Douglas W.
                          California     Young                   538,000     538,000     42       90%       1,223,000      1,495,000

Knights                   Knights        Douglas W. Young
Landing                   Landing,       and Diane L.
Harbor                    California     Young                   275,000     275,000     25      100%         446,000        971,000

</TABLE>


                                       6
<PAGE>



<TABLE>
<CAPTION>
                                                        ----------------------------  ----------------------------------------------
                                                           As of March 31, 2004                   As of December 31, 2003
                                                        ----------------------------  ----------------------------------------------
                                                          Partnership's    Amount of                      Estimated         Mortgage
                                                         Total Investment  Investment                   Aggregate Low    Balances of
   Local Limited                       General Partner   in Local Limited  Paid to     Number          Income Housing  Local Limited
  Partnership Name        Location       Name               Partnership     Date     of Units  Occupancy   Credits (1)  Partnerships
------------------------------------------------------------------------------------------------------------------------------------
<S>                       <C>            <C>                 <C>         <C>            <C>      <C>    <C>             <C>
Midland                                  Philip R. Hammond,
Manor                     Mendota,       Jr. and Diane M.
Associates                California     Hammond                 383,000     383,000     40       97%         668,000      1,412,000

San                       San            Richard Parasol
Jacinto                   Jacinto,       and Richard A.
Associates                California     Gullota                 469,000     469,000     38      100%         830,000      1,797,000

                                         Thomas G. Larson,
                                         William H. Larson
Woodlake                  Woodlake,      and Raymond L.
Manor                     California     Tetzlaff                545,000     545,000     44       93%       1,146,000      1,437,000

Yreka Investment          Yreka,         Ronald D.
Group                     California     Bettencourt             538,000     538,000     36      100%       1,174,000      1,451,000
                                                             ----------- ------ ----   -----     ----   -------------   ------------

                                                             $ 5,803,000 $ 5,803,000    433       97%   $  12,187,000   $ 16,600,000
                                                             =========== ===========   =====     ====   =============   ============


(1) Represents  aggregate total  anticipated Low Income Housing Credits received
over the 10 year credit period if the Housing  complexes are retained and rented
and  in  compliance  with  credit  rules  for  the  15-year  compliance  period.
Substantially  all of the  amticipated  Low  Income  Housing  Credits  have been
received from the Local Limited Partnerships.  Accordingly, the Partnership does
not anticipate a significant  amount Low Income Housing  Credits being allocated
to the Limited Partners in the future.

</TABLE>


                                       7
<PAGE>


<TABLE>
<CAPTION>

                                  ----------------------------------------------
                                      For the Year Ended December 31, 2003
                                  ----------------------------------------------
                                                                                       Low Income Housing Credits
        Partnership Name              Rental Income        Net Income (Loss)            Allocated to Partnership
--------------------------------------------------------------------------------     --------------------------------
<S>                                           <C>                      <C>                                      <C>
Alta Vista Investors                          $  225,000               ($ 6,000)                                 99%

BCA Associates                                   233,000                 22,000                                  99%

Cloverdale Garden Apartments                     237,000                  3,000                                  99%

Countryway Associates                            170,000                (72,000)                                 99%

East Garden Apartments                           334,000                 24,000                                  99%

HPA Investors                                    227,000                  5,000                                  99%

Knights Landing Harbor                           159,000                 11,000                                  99%

Midland Manor Associates                         237,000                 15,000                                  99%

San Jacinto Associates                           260,000                (12,000)                                 99%

Woodlake Manor                                   284,000                 23,000                                  99%

Yreka Investment Group                           226,000                (69,000)                                 99%
                                                 -------               --------

                                              $2,592,000               ($56,000)
                                              ===========              =========
</TABLE>




                                       8
<PAGE>




Item 3.  Legal Proceedings

NONE

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

NONE

PART II.

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

Item 5a.

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

(b)  At March 31, 2004, there were 653 Limited Partners and 8 assignees of Units
     who were not admitted as Limited Partners.

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

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

(e)  No unregistered  securities  were sold by the  Partnership  during the year
     ended March 31, 2004.

Item 5b. Use of Proceeds

NOT APPLICABLE

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

NONE




                                       9
<PAGE>



Item 6.  Selected Financial Data

Selected balance sheet information for the Partnership is as follows:
<TABLE>
<CAPTION>
                                 -----------------------------------------------------------------------
                                                                 March 31
                                 -----------------------------------------------------------------------

                                     2004           2003           2002          2001          2000
                                 -------------  -------------   -----------   -----------   ------------

<S>                            <C>            <C>             <C>           <C>           <C>
ASSETS
Cash                           $        7,209 $          734  $     12,170  $     44,172  $      47,877
Investments in limited
  partnerships, net                         -        453,314       600,843       809,249      1,187,690
                                 -------------  -------------   -----------   -----------   ------------

                               $        7,209 $      454,048  $    613,013  $    853,421  $   1,235,567
                                 =============  =============   ===========   ===========   ============

LIABILITIES
Accrued fees and expenses
  due to general partner and
  affiliates                   $    1,432,637 $    1,300,219  $  1,180,524  $  1,080,521  $     957,395


PARTNERS' EQUITY (DEFICIT)         (1,425,428)      (846,171)     (567,511)     (227,100)       278,172
                                 -------------  -------------   -----------   -----------   ------------

                               $        7,209 $      454,048  $    613,013  $    853,421  $   1,235,567
                                 =============  =============   ===========   ===========   ============
</TABLE>


                                       10
<PAGE>


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

                                                               For the Years Ended
                                                                    March 31
                            ---------------------------------------------------------------------------------------------

                              2004             2003               2002                 2001                2000
                            --------------    ------------     ----------------     ---------------    ------------------

<S>                       <C>               <C>              <C>                  <C>              <C>
Loss from
operations (Note 1)       $      (604,285)  $    (139,721)   $        (139,316)   $       (146,597)    $      (142,543)
Equity in income
  (losses) from limited
  partnerships                     25,028        (138,939)            (201,095)           (358,675)           (300,256)
                            --------------    ------------     ----------------     ---------------    ------------------
Net loss                  $      (579,257)  $    (278,660)   $        (340,411)   $       (505,272)    $      (442,799)
                            ==============    ============     ================     ===============    ==================

Net loss
allocated to:
General
partners                  $        (5,793)  $      (2,787)   $          (3,404)   $         (5,053)    $        (4,428)
                            ==============    ============     ================     ===============     =================
Limited
partners                  $      (573,464)  $    (275,873)   $        (337,007)   $       (500,219)    $      (438,371)
                            ==============    ============     ================     ===============     =================
Net loss per
limited partner
unit                      $        (76.98)  $      (37.03)   $          (45.24)   $         (67.14)    $        (58.84)
                            ==============    ============     ================     ===============     =================
Outstanding
weighted
limited partner
units                               7,450           7,450                7,450               7,450               7,450
                            ==============    ============     ================     ===============    ==================
</TABLE>

Note 1 Loss from  operations for the year ended March 31,2004  includes a charge
for impairment  losses on investment in limited  partnerships of $470,093.  (See
Note 2 to the audited financial statements.)
<TABLE>
<CAPTION>
                                          For the Years Ended March 31,
                                 ----------------------------------------------------------------------

                                     2004            2003          2002          2001          2000
                                 --------------   -----------    ----------    ----------    ----------

<S>                            <C>              <C>            <C>           <C>           <C>
Net cash provided by
 (used in):
   Operating activities        $         3,659  $    (14,602)  $   (34,751)  $    (8,569)  $   (18,747)
   Investing activities                  2,816         3,166         2,749         4,864         5,501
                                 --------------   -----------    ----------    ----------    ----------

Net change in cash and cash
  equivalents                            6,475       (11,436)      (32,002)       (3,705)      (13,246)

Cash, beginning of period                  734        12,170        44,172        47,877        61,123
                                 --------------   -----------    ----------    ----------    ----------

Cash, end of period            $         7,209  $        734   $    12,170   $    44,172   $    47,877
                                 ==============   ===========    ==========    ==========    ==========

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

                                      2003           2002           2001          2000          1999
                                   ------------   ------------   -----------    ---------     ----------

Federal                          $           1  $           1  $         16   $       59             99

State                                        -              -             -            -              -
                                   ------------   ------------   -----------    ---------     ----------

Total                            $           1  $           1  $         16   $       59    $        99
                                   ============   ============   ===========    =========     ==========
</TABLE>

                                       11

<PAGE>


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

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

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

Critical Accounting Policies and Certain Risks and Uncertainties

The  Partnership  believes  that the  following  discussion  addresses  its 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 Limited Partnerships

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

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


                                       12
<PAGE>



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 income.  If the Local  Limited
Partnerships  report net income in future  years,  the  Partnership  will resume
applying  the equity  method only after its share of such net income  equals the
share of net losses not  recognized  during the  period(s) the equity method was
suspended.

Income Taxes

No provision for income taxes has been  recorded in the financial  statements as
any  liability  and/or  benefit for income  taxes  flows to the  partners of the
Partnership and is their  obligation  and/or benefit.  For income taxes purposes
the Partnership reports on a calendar year basis.

Certain Risks and Uncertainties

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

The Low Income  Housing  Credit rules are extremely  complicated.  Noncompliance
with these rules  results in the loss of future Low Income  Housing  Credits and
the fractional  recapture of Low Income Housing  Credits  already taken. In most
cases the annual amount of Low Income Housing Credits that an individual can use
is limited to the tax  liability  due on the  person's  last  $25,000 of taxable
income.  The Low  Income  Housing  Credits  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
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  Credits,  a fractional  recapture of prior Low Income
Housing  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
Credits and recapture of Low Income Housing 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
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.

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


                                       13
<PAGE>



from the Local  Limited  Partnerships  in the  future.  Until the Local  Limited
Partnerships  have completed the 15 year Low Income  Housing  Credit  compliance
period risks exist for potential recapture of prior low Income Housing Credits.

No trading  market  for the Units  exists or is  expected  to  develop.  Limited
Partners  may be unable to sell  their  Units  except at a  discount  and should
consider their 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.

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

Anticipated  future and  existing  cash  resources  are not  sufficient  to meet
existing   contractual  cash  obligations.   Substantially  all  of  the  future
contractual  cash  obligations  of the  Partnership  are  payable to the General
Partner.  Though a substantial portion of the amounts contractually obligated to
the  General  Partner  are  contractually  currently  payable,  the  Partnership
anticipates  that the  General  Partner  will not  require  the payment of these
contractual  obligations  until  capital  reserves  are in excess of the  future
foreseeable  working  capital  requirements  of the  Partnership.  However,  the
Partnership is  contractually  required to pay these  obligations to the General
Partner on a current basis. The Partnership  would be adversely  affected should
the General Partner demand current payment of these contractual  obligations and
or suspend services for this or any other reason.

Financial Condition

The  Partnership's  assets  at March  31,  2004  consisted  of  $7,000  in cash.
Liabilities  at March 31, 2004  primarily  consisted  of  $1,433,000  of accrued
annual management fees due to the General Partners.

Results of Operations

Year  Ended  March  31,  2004   Compared  to  Year  Ended  March  31,  2003  The
Partnership's  net  loss for the  year  ended  March  31,  2004 was  $(579,000),
reflecting a increase of $(300,000)  from the net loss  experienced for the year
ended  March  31,  2003.  The  increase  in net  loss  is  primarily  due to the
impairment loss of $470,000 incurred in the year ended March 31, 2004, offset by
a change in equity in income (losses) from limited  partnerships which decreased
by  $164,000  to income of $25,000 for the year ended March 31, 2004 from losses
of $(139,000) for the year ended March 31, 2003.  The impairment  loss is due to
the fact that the net  investment  balance  exceeded the  remaining  tax credits
along with any residual value in four limited partnerships.  The decrease equity
in income (losses) from limited partnerships is primarily due to the Partnership
not  recognizing  certain  losses  of  the  Local  Limited   Partnerships.   The
investments in such Local Limited Partnerships had reached $0 at March 31, 2003.
Since the  Partnership's  liability with respect to its  investments is limited,
losses in excess of investment are not  recognized.  Equity in losses of limited
partnerships included a portion relating to the reduction of the net acquisition
fee component of  investments  in Local Limited  Partnerships  to zero for those
Local Limited Partnerships which would otherwise be below a zero balance.

Year  Ended  March  31,  2003  Compared  to  Year  Ended  March  31,  2002.  The
Partnership's  net  loss for the  year  ended  March  31,  2003 was  $(279,000),
reflecting  a decrease  of $61,000  from the net loss  experienced  for the year
ended March 31, 2002.  The  decrease in net loss is  primarily  due to equity in
losses from limited  partnerships  which  decreased by $62,000 to $(139,000) for
the year ended March 31, 2003 from $(201,000) for the year ended March 31, 2002.
This decrease was a result of the Partnership not recognizing  certain losses of
the  Local  Limited   Partnerships.   The  investments  in  such  Local  Limited
Partnerships had reached $0 at March 31, 2003. Since the Partnership's liability
with respect to its  investments is limited,  losses in excess of investment are
not  recognized.  Equity in losses of  limited  partnerships  included a portion
relating to the reduction of the net acquisition fee component of investments in
Local Limited  Partnerships to zero for those Local Limited  Partnerships  which
would otherwise be below a zero balance.


                                       14
<PAGE>

Liquidity and Capital Resources

Year Ended March 31, 2004  Compared to Year Ended March 31, 2003 Net increase in
cash during the year ended March 31, 2004 was $6,000 compared to net decrease in
cash used for the year ended March 31, 2003 of $(11,000).  The net cash increase
is due to an  increase  in  accrued  expenses  due to the  General  Partner  and
affiliates   and  an  increase  in   distribution   income  from  Local  Limited
Partnerships.

Year Ended March 31, 2003  Compared to Year Ended March 31, 2002.  Net cash used
during the year ended  March 31, 2003 was  $(11,000),  compared to net cash used
for the year ended  March 31,  2002 of  $(32,000).  The net cash used  primarily
represents  cash used for operating  expenses net of minimal cash  distributions
from Local Limited Partnerships.

During the years ended March 31, 2004, 2003 and 2002,  accrued  payables,  which
consist  primarily of related party  management fees due to the General Partner,
increased by $132,000, $120,000 and $100,000,  respectively. The General Partner
does not  anticipate  that  these  accrued  fees will be paid until such time as
capital   reserves  are  in  excess  of  future   foreseeable   working  capital
requirements of the Partnership.

The  Partnership   currently  has  insufficient  working  capital  to  fund  its
operations.  Associate  has agreed to  continue  providing  advances  sufficient
enough  to  fund  the  operations  and  working  capital   requirements  of  the
Partnership through June 30, 2005.

Future Contractual Cash Obligations

The  following  table  summarizes  the  Partnership's  future  contractual  cash
obligations as of March 31, 2004:
<TABLE>
<CAPTION>

                                     2005         2006       2007        2008       2009     Thereafter        Total

                                   ----------   ---------  ---------   ---------  ---------  ------------    ----------

<S>                              <C>          <C>        <C>         <C>        <C>        <C>             <C>
Asset Management Fees (1)        $ 1,514,239  $  111,855 $  111,855  $  111,855 $  111,855 $   3,131,940   $ 5,093,599
Capital Contributions Payable
   to Lower Tier Partnerships              -           -          -           -          -             -             -
                                   ----------   ---------  ---------   ---------  ---------  ------------    ----------
Total contractual cash
   obligations                   $ 1,514,239  $  111,855 $  111,855  $  111,855 $  111,855 $   3,131,940   $ 5,093,599
                                   ==========   =========  =========   =========  =========  ============    ==========
</TABLE>
(1)  Asset  Management  Fees  are  payable  annually  until  termination  of the
     Partnership, which is to occur no later than 2037. The estimate of the fees
     payable included herein assumes the retention of the Partnership's interest
     in all Housing Complexes until 2037.  Amounts due to the General Partner as
     of March 31,  2004 have  been  included  in the 2005  column.  The  General
     Partner does not anticipate that these fees will be paid until such time as
     capital  reserves are in excess of the future  foreseeable  working capital
     requirements of the Partnership.

For  additional  information  on our 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

The IRS  compliance  period for  low-income  housing  tax credit  properties  is
generally  15 years from  occupancy  following  construction  or  rehabilitation
completion.  WNC was one of the first in the industry to offer investments using
the tax credit.  Now these very first programs are completing  their  compliance
period.

With that in mind, we are continuing our review of the  Partnership's  holdings,
with special  emphasis on the more mature  properties  including those that have
satisfied the IRS compliance requirements. Our review will consider many factors


                                       15
<PAGE>


including  extended  use  requirements  on the  property  (such as those  due to
mortgage  restrictions  or state  compliance  agreements),  the condition of the
property,  and the tax consequences to the Limited Partners from the sale of the
property.

Upon identifying  those  properties with the highest  potential for a successful
sale, refinancing or syndication, we expect to proceed with efforts to liquidate
those  properties.  Our  objective is to maximize the Limited  Partners'  return
wherever  possible  and,  ultimately,  to wind down  those  funds that no longer
provide  tax  benefits  to  Limited  Partners.  To date,  no  properties  in the
Partnership have been selected.

Impact of New Accounting Pronouncements

New Accounting Pronouncements
-----------------------------

In January 2003, the FASB issued Interpretation No. 46 ("FIN46"), "Consolidation
of  Variable  Interest  Entities."  FIN 46  provides  guidance on when a company
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. 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 absorbs the  majority of the entity's
expected losses, the majority of the expected returns, or both.

In  December  2003,  the FASB issued a revision of FIN 46 ("FIN 46R") to clarify
some of its provisions.  The revision results in multiple  effective dates based
on the  nature  as well as the  creation  date of the VIE.  VIEs  created  after
January 31,  2003,  but prior to January 1, 2004,  may be  accounted  for either
based on the original interpretations or the revised  interpretations.  However,
all VIEs must be accounted for under the revised interpretations as of March 31,
2004, when FIN 46R is effective for the Partnership.

This  Interpretation  would require  consolidation by the Partnership of certain
Local Limited  Partnerships' assets and liabilities and results of operations if
the Partnership determined that the Local Limited Partnership was a VIE and that
the  Partnership  was  the  "Primary  Beneficiary."  Minority  interests  may be
recorded for the Local Limited  Partnerships'  ownership  share  attributable to
other Limited Partners. Where consolidation of Local Limited Partnerships is not
required,   additional  financial  information   disclosures  of  Local  Limited
Partnerships  may be  required.  The  Partnership  has  assessed  the  potential
consolidation effects of the Interpretation and preliminarily concluded that the
adoption of the Interpretation  will not have a material impact on the financial
statements of the Partnerships.


Item 7A.  Quantitative and Qualitative Disclosures about Market Risk

NOT APPLICABLE

Item 8.  Financial Statements and Supplementary Data





                                       16
<PAGE>

             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


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



     We have audited the  accompanying  balance sheet of WNC California  Housing
Tax Credits,  L.P. (a California Limited  Partnership) (the"Partnership") as of
March 31, 2004 and the related  statements of operations,  partners'  equity and
cash  flows  for  the  year  then  ended.  These  financial  statements  are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these  financial  statements  based on our  audit.  A  significant
portion of the  financial  statements of the limited  partnerships  in which the
Partnership  is a limited  partner were audited by other  auditors whose reports
have been  furnished to us. As discussed in note 2 to the financial  statements,
the Partnership  accounts for its investments in limited  partnerships using the
equity  method.   The  portion  of  the  Partnership's   investment  in  limited
partnerships  audited by other auditors represented $25,028 of the Partnership's
equity in gains of limited  partnerships  for the year ended March 31, 2004. Our
opinion,  insofar  as it  relates  to the  amounts  included  in  the  financial
statements for the limited  partnerships  which were audited by others, is based
solely on the reports of the other auditors.

     We  conducted  our audit 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.  An  audit  includes
examining,  on a test basis,  evidence supporting the amounts and disclosures in
the  financial  statements.  An audit also  includes  assessing  the  accounting
principles  used  and  significant  estimates  made  by  management,  as well as
evaluating the overall  financial  statement  presentation.  We believe that our
audit and the reports of the other auditors  provide a reasonable  basis for our
opinion.

     In our opinion,  based on our audit and the reports of the other  auditors,
the  financial  statements  referred to above  present  fairly,  in all material
respects,  the financial position of WNC California Housing Tax Credits, L.P. (a
California  Limited  Partnership)  as of March 31, 2004,  and the results of its
operations  and its cash  flows  for the year  then  ended  in  conformity  with
accounting principles generally accepted in the United States of America.

     The  Partnership   currently  has  insufficient  working  capital  to  fund
obligations,  to an  affiliate  of the  General  Partner,  for asset  management
services.  As discussed in Note 1 to the financial  statements,  the Partnership
would be adversely  affected  should the affiliate of the General Partner of the
Partnership,  WNC and  Associates,  Inc.,  demand  current  payment of  existing
contractual obligations and/or suspend services for this or any other reason.


                                                 /s/Reznick Fedder & Silverman

Bethesda, Maryland
June 18, 2004







                                      17
<PAGE>



             Report of Independent Registered Public Accounting Firm


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


We have audited the  accompanying  balance sheet of WNC  California  Housing Tax
Credits, L.P. (a California Limited Partnership) (the "Partnership") as of March
31, 2003, and the related  statements of operations,  partners' deficit and cash
flows for the years ended March 31, 2003 and 2002.  These  financial  statements
are the responsibility of the Partnership's management. Our responsibility is to
express  an  opinion  on  these  financial  statements  based on our  audits.  A
significant portion of the financial  statements of the limited  partnerships in
which the  Partnership is a limited partner were audited by other auditors whose
reports  have been  furnished  to us. As  discussed  in Note 2 to the  financial
statements, the Partnership accounts for its investments in limited partnerships
using the equity method. The portion of the Partnership's  investment in limited
partnerships  audited by other auditors  represented  80% of the total assets of
the Partnership at March 31, 2003 and 83% and 88% of the Partnership's equity in
losses of limited  partnerships  for the years  ended  March 31,  2003 and 2002,
respectively.  Our opinion, insofar as it relates to the amounts included in the
financial  statements for the limited partnerships which were audited by others,
is based solely on the reports of the other auditors.

We conducted our audits in accordance with 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. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits and the reports of
the other auditors provide a reasonable basis for our opinion.

In our opinion, based on our audits and the reports of the other auditors, the
financial statements referred to above present fairly, in all material respects,
the financial position of WNC California Housing Tax Credits, L.P. (A California
Limited Partnership) as of March 31, 2003, and the results of its operations and
its cash flows for the years ended March 31, 2003 and 2002, in conformity with
accounting principles generally accepted in the United States of America.




                                                /s/ BDO SEIDMAN, LLP

Costa Mesa, California
May 2, 2003


                                       18
<PAGE>


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

                                 BALANCE SHEETS
<TABLE>
<CAPTION>



                                                                                               March 31
                                                                                     ------------------------------

                                                                                         2004             2003
                                                                                     --------------   -------------

<S>                                                                                <C>             <C>
ASSETS

Cash                                                                               $         7,209  $          734
Investments in limited partnerships, net (Notes 2 and 3)                                         -         453,314
                                                                                     --------------   -------------

                                                                                   $         7,209  $      454,048
                                                                                     ==============   =============

LIABILITIES AND PARTNERS' DEFICIT

Liabilities:
   Accrued fees and expenses due to General Partner and
     affiliates (Note 3)                                                           $     1,432,637  $    1,300,219

Commitments and contingencies

Partners' deficit:
    General partners                                                                       (79,096)        (73,303)
    Limited partners (10,000 units authorized; 7,450 units
     issued and outstanding)                                                            (1,346,332)       (772,868)
                                                                                     --------------   -------------

      Total partners' deficit                                                           (1,425,428)       (846,171)
                                                                                     --------------   -------------

                                                                                   $         7,209  $      454,048
                                                                                     ==============   =============
</TABLE>

                 See accompanying notes to financial statements
                                       19
<PAGE>


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

                            STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>



                                                              For the Years Ended March 31
                                                      ----------------------------------------------

                                                          2004             2003            2002
                                                      --------------    ------------    ------------


<S>                                                 <C>               <C>             <C>
Interest income                                     $            10   $          46   $         720
Distribution income                                           3,650           1,584           1,584
                                                      --------------    ------------    ------------

Total income                                                  3,660           1,630           2,304
                                                      --------------    ------------    ------------

Operating expenses:
   Amortization (Notes 2 and 3)                               5,433           5,424           4,562
   Asset management fees (Note 3)                           111,855         111,855         111,854
   Impairment loss (Note 2)                                 470,093               -               -
   Legal and accounting                                      16,106          18,795          18,957
   Office                                                     4,458           5,277           6,247
                                                      --------------    ------------    ------------

    Total operating expenses                                607,945         141,351         141,620
                                                      --------------    ------------    ------------

Loss from operations                                       (604,285)       (139,721)       (139,316)

Equity in income (losses) of limited
    partnerships (Note 2)                                    25,028        (138,939)       (201,095)
                                                      --------------    ------------    ------------

Net loss                                            $      (579,257)  $    (278,660)  $    (340,411)
                                                      ==============    ============    ============

Net loss allocated to:
   General partners                                 $        (5,793)  $      (2,787)  $      (3,404)
                                                      ==============    ============    ============

   Limited partners                                 $      (573,464)  $    (275,873)  $    (337,007)
                                                      ==============    ============    ============

Net loss per limited partnership unit               $        (76.98)  $      (37.03)  $      (45.24)
                                                      ==============    ============    ============

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


                 See accompanying notes to financial statements
                                       20
<PAGE>


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

                         STATEMENTS OF PARTNERS' DEFICIT

                For The Years Ended March 31, 2004, 2003 and 2002
<TABLE>
<CAPTION>


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

<S>                                                       <C>                         <C>                <C>
Partners' deficit at March 31, 2001                       $        (67,112)   $       (159,988)  $       (227,100)

Net loss                                                            (3,404)           (337,007)          (340,411)
                                                            ---------------     ---------------    ---------------

Partners' deficit at March 31, 2002                                (70,516)           (496,995)          (567,511)

Net loss                                                            (2,787)           (275,873)          (278,660)
                                                            ---------------     ---------------    ---------------

Partners' deficit at March 31, 2003                                (73,303)           (772,868)          (846,171)

Net loss                                                            (5,793)           (573,464)          (579,257)
                                                            ---------------     ---------------    ---------------

Partners' deficit at March 31, 2004                       $        (79,096)   $     (1,346,332)  $     (1,425,428)
                                                            ===============     ===============    ===============
</TABLE>


                 See accompanying notes to financial statements
                                       21
<PAGE>


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

                            STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>



                                                                 For the Years Ended March 31
                                                          -------------------------------------------

                                                             2004            2003            2002
                                                          ------------    ------------    -----------

<S>                                                     <C>             <C>             <C>
Cash flows from operating activities:
   Net loss                                             $    (579,257)  $    (278,660)  $   (340,411)
   Adjustments to reconcile net loss to
     net cash used in operating activities:
     Amortization                                               5,433           5,424          4,562
     Equity in (income) losses of limited
       partnerships                                           (25,028)        138,939        201,095
      Impairment loss                                         470,093               -              -
     Change in accrued fees and expenses due to
       General Partner and affiliates                         132,418         119,695        100,003
                                                          ------------    ------------    -----------

Net cash provided by (used in) operating activities             3,659         (14,602)       (34,751)
                                                          ------------    ------------    -----------

Cash flows provided by investing activities:
   Distributions from limited partnerships                      2,816           3,166          2,749
                                                          ------------    ------------    -----------

Net increase (decrease) in cash and cash equivalents            6,475         (11,436)       (32,002)

Cash, beginning of period                                         734          12,170         44,172
                                                          ------------    ------------    -----------

Cash, end of period                                     $       7,209   $         734   $     12,170
                                                          ============    ============    ===========

SUPPLEMENTAL DISCLOSURE OF
     CASH FLOW INFORMATION:
    Taxes paid                                          $         800   $         800   $        800
                                                          ============    ============    ===========
</TABLE>
                 See accompanying notes to financial statements
                                       22

<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                For The Years Ended March 31, 2004, 2003 and 2002



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

Organization
------------

WNC California Housing Tax Credits,  L.P., a California Limited Partnership (the
"Partnership"),  was formed on September 15, 1988 under the laws of the State of
California.  The  Partnership  was formed to invest  primarily in other  limited
partnerships   (the  "Local  Limited   Partnerships")   which  own  and  operate
multi-family  housing complexes (the "Housing  Complexes") that are eligible for
low income housing tax credits.  The local general  partners (the "Local General
Partners")  of  each  Local  Limited   Partnership  retain   responsibility  for
maintaining, operating and managing the Housing Complex.

WNC & Associates, Inc., a California corporation ("WNC"), and Wilfred N. Cooper,
Sr., are general  partners of the  Partnership  (the  "General  Partners").  The
chairman  and  president  own  substantially  all of the  outstanding  stock  of
Associates.  The  business of the  Partnership  is conducted  primarily  through
Associates, as the Partnership 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 at $1,000
per Unit  ("Units").  The  offering of Units  concluded in October 1990 at which
time 7,450 Units  representing  subscriptions  in the amount of $7,450,000,  had
been accepted.  The General Partners have a 1% interest in operating profits and
losses,  taxable income and losses,  in cash available for distribution from the
Partnership  and tax credits of the  Partnership.  The limited  partners will be
allocated the  remaining  99% of these items in  proportion to their  respective
investments.

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

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

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

The Low Income  Housing  Credit rules are extremely  complicated.  Noncompliance
with these rules  results in the loss of future Low Income  Housing  Credits and
the fractional  recapture of Low Income Housing  Credits  already taken. In most
cases the annual amount of Low Income Housing 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
Credits may be the only benefit from an investment in the Partnership.



                                       23
<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2004, 2003 and 2002


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

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  Credits,  a fractional  recapture of prior Low Income
Housing  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
Credits and recapture of Low Income Housing 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
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.

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

Anticipated  future and  existing  cash  resources  of the  Partnership  are not
sufficient to meet existing  contractual cash obligations.  Substantially all of
the future  contractual  cash  obligations of the Partnership are payable to the
General  Partner.  Though a  substantial  portion of the  amounts  contractually
obligated  to the  General  Partner are  contractually  currently  payable,  the
Partnership anticipates that the General Partner will not require the payment of
these contractual obligations until capital reserves are in excess of the future
foreseeable  working  capital  requirements  of the  Partnership.  However,  the
Partnership is  contractually  required to pay these  obligations to the General
Partner on a current basis. The Partnership  would be adversely  affected should
the General Partner demand current payment of these contractual  obligations and
or suspend services for this or any other reason.

No trading  market  for the Units  exists or is  expected  to  develop.  Limited
Partners  may be unable to sell  their  Units  except at a  discount  and should
consider their 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.

                                       24
<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2004, 2003 and 2002


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

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

The IRS  compliance  period for  low-income  housing  tax credit  properties  is
generally  15 years from  occupancy  following  construction  or  rehabilitation
completion.  WNC was one of the first in the industry to offer investments using
the tax credit.  Now these very first programs are completing  their  compliance
period.

With that in mind,  the  Partnership  is continuing to review the  Partnership's
holdings,  with special emphasis on the more mature  properties  including those
that have satisfied the IRS compliance  requirements.  The Partnership's  review
will consider many factors  including  extended use requirements on the property
(such as those due to mortgage restrictions or state compliance agreements), the
condition of the property, and the tax consequences to the Limited Partners from
the sale of the property.

Upon identifying  those  properties with the highest  potential for a successful
sale,  refinancing  or  syndication,  the  Partnership  expects to proceed  with
efforts  to  liquidate  those  properties.  The  Partnership's  objective  is to
maximize the Limited Partners' return wherever possible and, ultimately, to wind
down those funds that no longer  provide tax  benefits to Limited  Partners.  To
date no properties in the Partnership have been selected for disposition.

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

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

Equity in losses of Local Limited Partnerships for each year ended March 31 have
been  recorded  by the  Partnership  based on nine  months of  reported  results
provided by the Local Limited  Partnerships  for each year ended December 31 and
on  three  months  of  results  estimated  by  management  of  the  Partnership.
Management's  estimate  for the  three-month  period is based on  either  actual
unaudited  results  reported by the Local  Limited  Partnerships  or  historical
trends in the operations of the Local Limited Partnerships.  Equity in losses of
limited  partnerships  allocated to the  Partnership  are not  recognized to the
extent that the investment  balance would be adjusted below zero. As soon as the
investment balance reaches zero,  amortization of the related costs of acquiring
the investment is accelerated to the extent of losses available (see Note 3). If
the  Local  Limited  Partnerships  reported  net  income in  future  years,  the
Partnership  will resume applying the equity method only after its share of such
net income  equals the share of net losses not  recognized  during the period(s)
the equity method was suspended.

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 income.


                                       25
<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2004, 2003 and 2002


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

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 an  original
maturities of three months or less when purchased to be cash equivalents.  As of
March 31, 2004 and 2003, the Partnership had no cash equivalents.

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

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

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

No provision  for income taxes has been recorded in the  accompanying  financial
statements  as any  liability  and/or  benefit  for  income  taxes  flows to the
partners of the Partnership and is their obligation  and/or benefit.  For income
taxes purposes the Partnership reports on a calendar year basis.

New Accounting Pronouncements
-----------------------------

In January 2003, the FASB issued Interpretation No. 46 ("FIN46"), "Consolidation
of  Variable  Interest  Entities."  FIN 46  provides  guidance on when a company
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. 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 absorbs the  majority of the entity's
expected losses, the majority of the expected returns, or both.

In  December  2003,  the FASB issued a revision of FIN 46 ("FIN 46R") to clarify
some of its provisions.  The revision results in multiple  effective dates based
on the  nature  as well as the  creation  date of the VIE.  VIEs  created  after
January 31,  2003,  but prior to January 1, 2004,  may be  accounted  for either
based on the original interpretations or the revised  interpretations.  However,
all VIEs must be accounted for under the revised interpretations as of March 31,
2004, when FIN 46R is effective for the Partnership.

This  Interpretation  would require  consolidation by the Partnership of certain
Local Limited  Partnerships' assets and liabilities and results of operations if
the Partnership determined that the Local Limited Partnership was a VIE and that
the  Partnership  was  the  "Primary  Beneficiary."  Minority  interests  may be
recorded for the Local Limited  Partnerships'  ownership  share  attributable to
other Limited Partners. Where consolidation of Local Limited Partnerships is not
required,   additional  financial  information   disclosures  of  Local  Limited
Partnerships  may be  required.  The  Partnership  has  assessed  the  potential
consolidation effects of the Interpretation and preliminarily concluded that the
adoption of the Interpretation  will not have a material impact on the financial
statements of the Partnerships.



                                       26
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2004, 2003 and 2002


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

As of the periods  presented,  the Partnership has acquired limited  partnership
interests in eleven Local  Limited  Partnerships  each of which owns one Housing
Complex  consisting of an aggregate of 433 apartment units. The respective 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 agreements,  of the operating profits and losses, taxable income and
losses, and tax credits of the Local Limited Partnerships.

The  Partnership's  investments  in Local Limited  Partnerships  as shown in the
balance  sheets  at March 31,  2004 and 2003,  are  approximately  $495,000  and
$891,000  respectively,  greater than the Partnership's  equity at the preceding
December  31 as shown in the  Local  Limited  Partnerships'  combined  financial
statements  presented  below.  This  difference  is primarily  due to unrecorded
losses as discussed below, and acquisition, selection and other costs related to
the  acquisition  of  the  investments   which  have  been  capitalized  in  the
Partnership's  investment  account along with impairment  losses recorded in the
Partnership's  investment  account.  The Partnership's  investment is also lower
than  the  Partnership's  equity  as shown in the  Local  Limited  Partnership's
combined  financial  statements  due to the  estimated  losses  recorded  by the
Partnership for the three month period ended March 31.

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

A Loss in value from a Local Limited  Partnership other than a temporary decline
would be recorded as an impairment loss. Impairment is measured by comparing the
investment  carrying  amount to the sum of the total amount of the remaining tax
credits  allocated  to  the  fund  and  the  estimated  residual  value  of  the
investment. Accordingly, the Partnership recorded an impairment loss of $470,093
during the year ended March 31, 2004.

Distributions  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 income.

At March 31, 2004 and 2003,  the  investment  accounts in certain  Local Limited
Partnerships  have  reached  a zero  balance.  Consequently,  a  portion  of the
Partnership's  estimate  of its share of losses  for the years  ended  March 31,
2004,  2003  and  2002,  amounting  to  approximately  $(13,000),  $282,000  and
$276,000,  respectively,  have not been  recognized.  As of March 31, 2004,  the
aggregate  share of net losses not  recognized  by the  Partnership  amounted to
$948,000.

The following is a summary of the equity method  activity of the  investments in
Local Limited Partnerships for the periods presented:
<TABLE>
<CAPTION>

                                                                           For the Years
                                                                           Ended March 31
                                                             -------------------------------------------
                                                                2004            2003           2002
                                                             ------------    -----------    ------------

<S>                                                        <C>             <C>            <C>
Investments per balance sheet, beginning of period         $     453,314   $    600,843   $     809,249
Equity in losses of limited partnerships                          25,028       (138,939)       (201,095)
Distributions received                                            (2,816)        (3,166)         (2,749)
Impairment loss                                                 (470,093)             -               -
Amortization of paid acquisition fees and costs                   (5,433)        (5,424)         (4,562)
                                                             ------------    -----------    ------------

Investments per balance sheet, end of period               $           -   $    453,314   $     600,843
                                                             ============    ===========    ============
</TABLE>


                                       27
<PAGE>



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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2004, 2003 and 2002



<TABLE>
<CAPTION>
NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued

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

                        COMBINED CONDENSED BALANCE SHEETS

                                                                                     2003               2002
                                                                                ---------------    ---------------

<S>                                                                           <C>                <C>
ASSETS

Buildings and improvements (net of accumulated
   depreciation for 2003 and 2002 of $8,631,000 and
   $7,961,000, respectively)                                                  $     13,410,000   $     13,955,000
Land                                                                                 1,484,000          1,484,000
Other assets                                                                         1,984,000          1,556,000
                                                                                ---------------    ---------------

                                                                              $     16,878,000   $     16,995,000
                                                                                ===============    ===============

LIABILITIES

Mortgage loans payable                                                        $     16,600,000   $     16,621,000
Due to related parties                                                                 347,000            347,000
Other liabilities                                                                      175,000            213,000
                                                                                ---------------    ---------------

                                                                                    17,122,000         17,181,000
                                                                                ---------------    ---------------

PARTNERS' CAPITAL

WNC California Housing Tax Credits, L.P.                                              (495,000)          (438,000)
Other partners                                                                         251,000            252,000
                                                                                ---------------    ---------------

                                                                                      (244,000)          (186,000)
                                                                                ---------------    ---------------

                                                                              $     16,878,000   $     16,995,000
                                                                                ===============    ===============
</TABLE>


                                       28
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2004, 2003 and 2002
<TABLE>
<CAPTION>
NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued
-------------------------------------------------------

                   COMBINED CONDENSED STATEMENTS OF OPERATIONS

                                                                 2003                2002               2001
                                                            ---------------     ---------------    ---------------

<S>                                                       <C>                 <C>                <C>
Revenues                                                  $      2,657,000    $      2,067,000   $      1,936,000
                                                            ---------------     ---------------    ---------------

Expenses:
  Operating expenses                                             1,660,000           1,460,000          1,394,000
  Interest expense                                                 381,000             386,000            385,000
  Depreciation and amortization                                    672,000             657,000            636,000
                                                            ---------------     ---------------    ---------------

   Total expenses                                                2,713,000           2,503,000          2,415,000
                                                            ---------------     ---------------    ---------------

Net loss                                                  $        (56,000)   $       (436,000)  $       (479,000)
                                                            ===============     ===============    ===============

Net loss allocable to the Partnership                     $        (55,000)   $       (432,000)  $       (474,000)
                                                            ===============     ===============    ===============

Net income (loss) recorded by the Partnership             $         25,000    $       (139,000)  $       (201,000)
                                                            ===============     ===============    ==============
</TABLE>
Certain Local Limited  Partnerships have incurred  significant  operating losses
and/or have  working  capital  deficiencies.  In the event  these Local  Limited
Partnerships continue to incur significant operating losses,  additional capital
contributions  by the  Partnership  and/or  the Local  General  Partners  may be
required to sustain operations of such Local Limited Partnerships. If additional
capital  contributions  are not made when they are required,  the  Partnership's
investment in certain of such Local Limited Partnerships could be impaired,  and
the loss and recapture of the related tax credits could occur.

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

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

          Acquisition  fees equal to 6% of the gross  proceeds  from the sale of
          Units as  compensation  for services  rendered in connection  with the
          acquisition of Local Limited  Partnerships.  At the end of all periods
          presented,  the  Partnership  incurred  acquisition  fees of $447,060.
          Accumulated  amortization of these  capitalized costs was $447,060 and
          $359,107,  as of  March  31,  2004  and  2003,  respectively.  Of  the
          accumulated  amortization  recorded on the balance  sheet at March 31,
          2004,  $24,119  and $24,375 of the related  expense was  reflected  as
          equity in losses of limited  partnerships during the years ended March
          31, 2004,  2003 and 2002,  respectively,  to reduce the respective net
          acquisition fee component of investments in local limited partnerships
          to zero for those Local Limited  Partnerships which would otherwise be
          below a zero balance and $82,520, was reflected in the impairment loss
          during the year ended March 31, 2004.

          Reimbursement  of  costs  incurred  by  the  General  Partners  or  an
          affiliate in  connection  with the  acquisition  of the Local  Limited
          Partnerships.  These  reimbursements have not exceeded 3% of the gross
          proceeds. As of the end of all periods presented,  the Partnership had
          incurred  acquisition  costs of $32,018  which have been  included  in
          investments in limited  partnerships and were fully amortized at March
          31, 2004.

          An annual  management fee equal to 0.5% of the invested  assets of the
          Local Limited Partnerships, including the Partnerships allocable share
          of the mortgages, for the life of the Partnership.  Management fees of
          $111,855,  $111,855 and $111,854 were incurred  during the years ended
          March  31,  2004,  2003 and  2002,  respectively,  of which $0, $0 and
          $2,430 was paid during the years ended March 31, 2004,  2003 and 2002,
          respectively.


                                       29
<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2004, 2003 and 2002

<TABLE>
<CAPTION>

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

          The  Partnership  reimbursed the General Partner or its affiliates for
          operating  expenses  incurred on behalf of the Partnership.  Operating
          expense  reimbursements  were  approximately  $19,000 during the years
          ended March 31, 2004.

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

                                                                                                March 31
                                                                                      -----------------------------

                                                                                         2004            2003
                                                                                      ------------   --------------

<S>                                                                                 <C>            <C>
Reimbursement for expenses paid by the General Partners
   or an affiliate                                                                  $      30,252  $         9,690

Asset management fee payable                                                            1,402,385        1,290,529
                                                                                      ------------   --------------

Total                                                                               $   1,432,637  $     1,300,219
                                                                                      ============   ==============
</TABLE>

The General  Partners 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.

<TABLE>
<CAPTION>
NOTE 4 - QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
----------------------------------------------------

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

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

               2004
               ----

<S>                                   <C>                 <C>                <C>                 <C>
Income                                $          1,000    $          2,000   $              0    $          1,000

Operating expenses                             (34,000)            (42,000)           (30,000)           (502,000)

Equity in losses of limited
     partnerships                              (25,000)            (26,000)           (26,000)            102,000

Net loss                                       (58,000)            (66,000)           (56,000)           (399,000)

Net Loss available to limited
     partners                                  (58,000)            (65,000)           (55,000)           (395,000)

Net Loss per limited partner unit                   (8)                 (9)                (7)                (53)

</TABLE>


                                       30
<PAGE>




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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                For The Years Ended March 31, 2004, 2003 and 2002


<TABLE>
<CAPTION>

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

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

               2003
               ----

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

Operating expenses                             (36,000)            (40,000)           (32,000)            (33,000)

Equity in losses of limited
     partnerships                              (39,000)            (26,000)           (26,000)            (48,000)

Net loss                                       (75,000)            (64,000)           (58,000)            (81,000)

Net Loss available to limited
     partners                                  (74,000)            (64,000)           (57,000)            (81,000)

Net Loss per limited partner unit                  (10)                 (8)                (8)                (11)

</TABLE>





                                       31
<PAGE>


<TABLE>
<CAPTION>

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

NOT APPLICABLE

Item 9a. 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 Fund's "disclosure  controls and procedures" as defined
in  Securities  Exchange  Act of 1934  Rule  13a-15  and  15d-15.  Based on that
evaluation,  the Chief Executive  Officer and Principal  Financial  Officer have
concluded  that  as of  the  end of the  period  covered  by  this  report,  the
Partnership's  disclosure controls and procedures were adequate and effective in
timely  alerting  them  to  material  information  relating  to the  Partnership
required to be included in the Partnership's periodic SEC filings.

Changes  in  internal  controls.  There  were no  changes  in the  Partnership's
internal control over financial reporting that occurred during the quarter ended
March 31, 2004 that materially affected,  or are reasonably likely to materially
affect, the Partnership's internal control over financial reporting.

PART III.

Item 10. Directors and Executive Officers of the Registrant

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

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

Associates is a California corporation which was organized in 1971. Its officers
and significant employees are:
<S>                                   <C>

Wilfred N. Cooper, Sr.                Chairman of the Board
Wilfred N. Cooper, Jr.                President and Chief Executive Officer
David N. Shafer, Esq.                 Executive Vice President and Director of Asset Management
Sylvester P. Garban                   Senior Vice President - Institutional Investments
Thomas J. Riha, CPA                   Senior Vice President - Chief Financial Officer
David C. Turek                        Senior Vice President - Originations
Michael J. Gaber                      Senior Vice President - Acquisitions
Diemmy T. Tran                        Vice President - Portfolio Management
</TABLE>


In addition to Wilfred N. Cooper,  Sr., the directors of Associates  are Wilfred
N. Cooper, Jr., David N. Shafer, and Kay L. Cooper. The principal shareholder of
Associates is a trust established by Wilfred N. Cooper, Sr. and Kay L. Cooper.

Wilfred N.  Cooper,  Sr.,  age 73, is the founder  and  Chairman of the Board of
Directors of Associates,  a Director of WNC Capital  Corporation,  and a general
partner in some of the  partnerships  previously  sponsored  by  Associates  Mr.
Cooper has been actively involved in the affordable housing industry since 1968.
Previously,  during 1970 and 1971,  he was  founder and a principal  of Creative
Equity  Development  Corporation,  a predecessor of Associates,  and of Creative
Equity Corporation, a real estate investment firm. For 12 years before that, Mr.
Cooper was employed by Rockwell International  Corporation,  last serving as its
manager  of  housing  and urban  developments  where he had  responsibility  for
factory-built  housing  evaluation and project  management in urban planning and
development.  He has testified before committees of the U.S. Senate and the U.S.
House  of  Representatives.  Mr.  Cooper  is a Life  Director  of  the  National
Association of Home Builders and a National  Trustee for NAHB's Political Action
Committee,  and the Chairman of NAHB's Multifamily  Council. He is a Director of
the National Housing Conference and a member of NHC's Executive Committee, and a
founder and Director of the California Housing Consortium.  He is the husband of
Kay Cooper and the father of Wilfred N. Cooper,  Jr. Mr. Cooper  graduated  from
Pomona College in 1956 with a Bachelor of Arts degree.


                                       32
<PAGE>

Wilfred  N.  Cooper,  Jr.,  age  41,  is  President,  Chief  Executive  Officer,
Secretary,  a Director and a member of the Acquisition  Committee of Associates.
He is President of, and a registered  principal  with, WNC Capital  Corporation,
and is a Director of WNC  Management,  Inc. He has been  involved in real estate
investment  and  acquisition  activities  since 1988 when he joined  Associates.
Previously, he served as a Government Affairs Assistant with Honda North America
in Washington,  D.C. Mr. Cooper is a member of the Editorial  Advisory Boards of
Affordable  Housing  Finance and LIHC Monthly  Report,  a Steering Member of the
----------------------------     --------------------
Housing Credit Group of the National Association of Home Builders,  an Alternate
Director  of  NAHB,  a  member  of the  Advisory  Board  of the New  York  State
Association for Affordable Housing and a member of the Urban Land Institute.  He
is the son of Wilfred Cooper,  Sr. and Kay Cooper. Mr. Cooper graduated from The
American University in 1985 with a Bachelor of Arts degree.

David N. Shafer,  age 51, is Executive Vice President,  a Director,  Director of
Asset Management and a member of the Acquisition Committee of Associates,  and a
Director and Secretary of WNC Management, Inc. Mr. Shafer has been active in the
real estate  industry  since 1984.  Before  joining  Associates  in 1990, he was
engaged as an attorney in the private  practice of law with a specialty  in real
estate and taxation.  Mr.  Shafer is a Director and President of the  California
Council of Affordable Housing, and a member of the State Bar of California.  Mr.
Shafer graduated from the University of California at Santa Barbara in 1978 with
a Bachelor of Arts  degree,  from the New  England  School of Law in 1983 with a
Juris Doctor degree cum laude and from the  University of San Diego in 1986 with
a Master of Law degree in Taxation.

Sylvester  P.  Garban,   age  58,  is  Senior  Vice  President  -  Institutional
Investments  of  Associates.  Mr.  Garban  has  been  involved  in  real  estate
investment  activities since 1978. Before joining  Associates in 1989, he served
as  Executive  Vice  President  with MRW,  Inc., a real estate  development  and
management  firm.  Mr.  Garban  is a  member  of  the  National  Association  of
Affordable Housing Lenders and the Financial Planning Association.  He graduated
from  Michigan  State  University  in 1967 with a Bachelor of Science  degree in
Business Administration.

Thomas J. Riha, age 48, is Senior Vice President - Chief Financial Officer and a
member of the Acquisition Committee of Associates and President, Treasurer and a
Director of WNC Management, Inc. He has been involved in real estate acquisition
and investment  activities  since 1979.  Before joining  Associates in 1994, Mr.
Riha was  employed  by Trust  Realty  Advisor,  a real  estate  acquisition  and
management  company,  last  serving  as Vice  President  -  Operations.  He is a
Director  of the Task  Force on Housing  Credit  Certification  of the  National
Association  of Home Builders.  Mr. Riha  graduated  from the  California  State
University,  Fullerton  in 1977  with a  Bachelor  of Arts  degree  cum laude in
Business  Administration  with a concentration  in Accounting and is a Certified
Public  Accountant  and a member of the American  Institute of Certified  Public
Accountants.

David C. Turek,  age 49, is Senior Vice President - Originations  of Associates.
His  experience  with real estate  investments  and finance has continued  since
1976, and he has been employed by Associates since 1996.  Previously,  from 1995
to 1996,  Mr.  Turek served as a  consultant  for a national tax credit  sponsor
where he was  responsible  for on-site  feasibility  studies  and due  diligence
analyses of tax credit properties. From 1992 to 1995 he served as Executive Vice
President for Levcor, Inc., a multi-family development company, and from 1990 to
1992 he served as Vice President for the Paragon Group where he was  responsible
for tax credit development activities.  He is a Director of the National Housing
and Rehabilitation  Association,  the Rural Rental Housing Association of Texas,
and the Alabama Council of Affordable  Rental Housing.  Mr. Turek graduated from
Southern Methodist University in 1976 with a Bachelor of Business Administration
degree.

Michael J. Gaber,  age 38, is Senior Vice President - Acquisitions and a member
of the Acquisition Committee of Associates.  Mr. Gaber has been involved in real
estate acquisition,  valuation and investment activities since 1989 and has been
associated  with  Associates  since 1997.  Prior to joining  Associates,  he was
involved in the valuation and  classification of major assets,  restructuring of
debt and analysis of real estate taxes with H.F.  Ahmanson & Company,  parent of
Home  Savings  of  America.  Mr.  Gaber  graduated  from  the  California  State
University,  Fullerton  in 1991 with a Bachelor  of Science  degree in  Business
Administration - Finance.


                                       33
<PAGE>

Diemmy T. Tran, age 38, is Vice President - Portfolio  Management of Associates.
She is responsible for overseeing  portfolio  management and investor  reporting
for  all  WNC  funds,  and  for  monitoring   investment  returns  for  all  WNC
institutional  funds. Ms. Tran has been involved in real estate asset management
and finance  activities for 12 years.  Prior to joining  Associates in 1998, Ms.
Tran served as senior asset manager for a national Tax Credit  sponsor and as an
asset specialist for the Resolution Trust  Corporation where she was responsible
for the disposition  and management of commercial  loan and REO portfolios.  Ms.
Tran is  licensed  as a  California  real  estate  broker.  She  graduated  from
California  State  University,  Northridge  in 1989 with a  Bachelor  of Science
degree in finance and a minor in real estate.

Kay L. Cooper,  age 67, is a Director of  Associates.  Mrs.  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.

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

     Inapplicable.

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

     Inapplicable.

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

     Neither the Partnership nor Associates has an audit committee.

(i)  Changes to Nominating Procedures
     --------------------------------

     Inapplicable

(j)  Code of Ethics
     --------------

     WNC & Associates  has adopted a Code of Ethics  which  applies to the Chief
     Executive Officer and Chief Financial Officer of WNC & 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 118.

Item 11.  Executive Compensation

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

(a)  Annual Asset  Management Fee. An annual asset  management fee accrues in an
     amount equal to 0.5% of the Invested Assets of the Partnership, as defined.
     "Invested  Assets" means the sum of the  Partnership's  investment in Local
     Limited Partnership Interests and the Partnership's  allocable share of the
     amount of the  mortgage  loans on and other  debts  related to the  Housing
     Complexes owned by such Local Limited  Partnerships.  Fees of $112,000 were
     incurred  during each of the years ended March 31, 2004, 2003 and 2002. The
     Partnership  paid the General  Partners and or their affiliates $0, $0, and
     $3,000 of those fees during the years ended March 31, 2004,  2003 and 2002,
     respectively.

(b)  Operating  Expense.  The Partnership  reimbursed the General Partner or its
     affiliates for operating  expenses of  approximately  $19,000,  $15,000 and
     $34,000 during the years ended March 31, 2004, 2003 and 2002, respectively.

(c)  Interest  in  Partnership.   The  General   Partners   receive  1%  of  the
     Partnership's  allocated Low Income Housing Tax Credits, which approximated
     $60, $60 and $1,100 for  Associates  and $7, $7 and $120 for Mr. Cooper for
     the calendar  years ended December 31, 2003,  2002 and 2001,  respectively.
     The General  Partners  are also  entitled to receive a  percentage  of cash
     distributions.  There were no distributions of cash to the General Partners
     during the years ended March 31, 2004, 2003 and 2002.




                                       34
<PAGE>

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 the General Partners to own beneficially in excess of
     5% of the outstanding Units.

(c)  Security Ownership of Management
     --------------------------------

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

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

Item 13.  Certain Relationships and Related Transactions

The General Partners manage all of the Partnership's  affairs.  The transactions
with  the  General  Partners  are  primarily  in the  form of  fees  paid by the
Partnership for services rendered to the Partnership, 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.




                                       35
<PAGE>



Item 14. Principal Accountant Fees and Services

The following is a summary of fees paid to the Fund's  independent  auditors for
the years ended March 31:

                                             2004                2003
                                        ---------------     ---------------

Audit Fees                            $         14,451              16,315
Audit-related Fees                                   -                   -
Tax Fees                                         1,625               1,500
All Other Fees                                       -                   -
                                        ---------------     ---------------
TOTAL                                 $         16,076              17,815
                                        ===============     ===============


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






                                       36
<PAGE>


PART IV.

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

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

          Report of  Independent  Registered  Public  Accounting  Firm- Reznick,
            Fedder & Silverman
          Report of Independent Registered Public Accounting Firm - BDO Seidman,
            LLP
          Balance  Sheets,  March  31,  2004 and 2003
          Statements of Operations for the years ended March 31, 2004,  2003 and
            2002
          Statements of Partners' Equity (Deficit) for the years ended March 31,
            2004, 2003 and 2002
          Statements of Cash Flows for the years ended March 31, 2004,  2003 and
            2002
          Notes to Financial Statements

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

          Report of Independent  Registered  Public Accounting Firm on Financial
          Statement  Schedules- Reznick Fedder & Silverman
          Report of Independent  Registered  Public Accounting Firm on Financial
          Statement Schedules - BDO Seidman, LLP
          Schedule III - Real Estate Owned by Local Limited Partnerships

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

          NONE

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

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

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

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

32.1      Certification of the Principal Executive Officer pursuant to 18 U.S.C.
          section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley
          Act of 2002. (filed herewith)

32.2      Certification of the Principal Financial Officer pursuant to 18 U.S.C.
          section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley
          Act of 2002. (filed herewith)

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

99.2      Amended and Restated  Agreement of Limited  Partnership  of Alta Vista
          Investors  filed as exhibit 10.2 on Form 10-K dated  December 31, 1992
          is hereby incorporated herein as exhibit 99.2.

99.3      Amended  and  Restated  Agreement  of  Limited  Partnership  of  Yreka
          Investment Group filed as exhibit 10.3 on Form 10-K dated December 31,
          1992 is hereby incorporated herein as exhibit 99.3.

99.4      Amended  and  Restated   Agreement  of  Limited   Partnership  of  BCA
          Associates  filed as exhibit 10.7 on Form 10-K dated December 31, 1992
          is hereby incorporated herein as exhibit 99.4.


                                       37
<PAGE>


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

99.6      Amended and Restated  Agreement of Limited  Partnership  of Cloverdale
          Garden  Apartments  filed as exhibit 10.11 on Form 10-K dated December
          31, 1992 is hereby incorporated herein as exhibit 99.6.

99.7      Amended  and  Restated  Agreement  of Limited  Partnership  of Knights
          Landing  Harbor filed as exhibit 10.13 on Form 10-K dated December 31,
          1992 is hereby incorporated herein as exhibit 99.7.

99.8      Amended and  Restated  Agreement  of Limited  Partnership  of Woodlake
          Manor filed as exhibit  10.16 on Form 10-K dated  December 31, 1992 is
          hereby incorporated herein as exhibit 99.8.

99.9      Amended and Restated  Agreement of Limited  Partnership of East Garden
          Apartments filed as exhibit 10.18 on Form 10-K dated December 31, 1992
          is hereby incorporated herein as exhibit 99.9.

99.10     Amended and Restated Agreement of Limited Partnership of Midland Manor
          Associates  filed as exhibit 0.26 on Form 10-K dated December 31, 1992
          is hereby incorporated herein as exhibit 99.10.

99.11     Amended and Restated  Agreement of Limited  Partnership of San Jacinto
          Associates filed as exhibit 10.27 on Form 10-K dated December 31, 1992
          is hereby incorporated herein as exhibit 99.11.

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





                                       38
<PAGE>





 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON FINANCIAL STATEMENT
                                    SCHEDULES


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


The audit  referred to in our report  dated June 18,  2004  relating to the 2004
financial  statements of WNC California Housing Tax Credits,  L.P. (a California
Limited Partnership) (the "Partnership"),  which are contained in Item 8 of this
Form 10-K,  included the audit of the accompanying  financial statement schedule
"Real Estate Owned by Local Limited Partnerships March 31, 2004." This financial
statement  schedule is the responsibility of the Partnership's  management.  Our
responsibility  is to express an opinion on this  financial  statement  schedule
based upon our audit.

In our opinion,  based on our audit and the reports of the other auditors,  such
financial  statement schedule referred to above presents fairly, in all material
respects, the information set forth therein.

                                                 /s/Reznick Fedder & Silverman

Bethesda, Maryland
June 18, 2004






                                       39
<PAGE>


 Report of Independent Registered Public Accounting Firm on Financial Statement
                                   Schedules




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


The audits referred to in our report dated May 2, 2003, relating to the 2003 and
2002  financial  statements  of WNC  California  Housing Tax Credits,  L.P. (the
"Partnership"),  which is  contained  in Item 8 of this Form 10-K,  included the
audit of the accompanying financial statement schedules. The financial statement
schedules  are  the   responsibility  of  the  Partnership's   management.   Our
responsibility is to express an opinion on these financial  statement  schedules
based upon our audits.

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



                                      /s/ BDO SEIDMAN, LLP


Costa Mesa, California
May 2, 2003







                                       40
<PAGE>


WNC California Housing Tax Credits, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2004
<TABLE>
<CAPTION>
                                                -------------------------------  ---------------------------------------------------
                                                   As of March 31, 2004                          As of December 31, 2003
                                                ------------------------------------------------------------------------------------
                                                                                   Mortgage
                                             Total Investment      Amount of      Balances of
                                             in Local Limited    Investment Paid Local Limited   Property and  Accumulated  Net Book
      Partnership Name          Location         Partnerships        to Date      Partnerships    Equipment    Depreciation   Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                             <C>           <C>             <C>            <C>             <C>            <C>         <C>
Alta Vista                      Orosi,
Investors                       California    $    583,000    $   583,000    $  1,418,000    $  2,128,000   $ 1,014,000 $  1,114,000

BCA                             Anderson,
Associates                      California         514,000        514,000       1,407,000       2,062,000       715,000    1,347,000

Cloverdale Garden               Cloverdale,
Apartments                      California         617,000        617,000       1,619,000       2,201,000       651,000    1,550,000

Countryway                      Mendota,
Associates                      California         571,000        571,000       1,458,000       2,194,000     1,069,000    1,125,000

East Garden                     Jamestown,
Apartments                      California         770,000        770,000       2,135,000       2,962,000       879,000    2,083,000

HPA                             Shafter,
Investors                       California         538,000        538,000       1,495,000       2,209,000       768,000    1,441,000

Knights                         Knights
Landing                         Landing,
Harbor                          California         275,000        275,000         971,000       1,372,000       474,000      898,000

Midland Manor                   Mendota,
Associates                      California         383,000        383,000       1,412,000       1,867,000       841,000    1,026,000

San Jacinto                     San Jacinto,
Associates                      California         469,000        469,000       1,797,000       2,349,000       584,000    1,765,000

Woodlake                        Woodlake,
Manor                           California         545,000        545,000       1,437,000       2,137,000     1,034,000    1,103,000

Yreka Investment                Yreka,
Group                           California         538,000        538,000       1,451,000       2,044,000       602,000    1,442,000
                                              ------------    -----------    ------------    ------------   ----------- ------------

                                              $  5,803,000    $ 5,803,000    $ 16,600,000    $ 23,525,000   $ 8,631,000 $ 14,894,000
                                              ============    ===========    ============    ============   =========== ============
</TABLE>


                                       41
<PAGE>




WNC California Housing Tax Credits, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2004
<TABLE>
<CAPTION>
                              --------------------------------------------------------------------------------------
                                                      For the year ended December 31, 2003
                              --------------------------------------------------------------------------------------
                                                    Net Income     Year Investment                Estimated Useful
      Partnership Name          Rental Income         (Loss)          Acquired         Status       Life (Years)
--------------------------------------------------------------------------------------------------------------------
<S>                                     <C>              <C>                    <C>                              <C>
Alta Vista Investors                    $   225,000         $  (6,000)          1989         Completed            27.5

BCA Associates                              233,000            22,000           1989         Completed              40

Cloverdale Garden Apartments                237,000             3,000           1989         Completed              40

Countryway Associates                       170,000           (72,000)          1989         Completed            27.5

East Garden Apartments                      334,000            24,000           1989         Completed              40

HPA Investors                               227,000             5,000           1989         Completed              40

Knights Landing Harbor                      159,000            11,000           1989         Completed              40

Midland Manor Associates                    237,000            15,000           1990         Completed            27.5

San Jacinto Associates                      260,000           (12,000)          1990         Completed              50

Woodlake Manor                              284,000            23,000           1989         Completed              30

Yreka Investment Group                      226,000           (69,000)          1989         Completed              50
                                        -----------         ----------

                                        $ 2,592,000         $ (56,000)
                                        ===========         ==========
</TABLE>


                                       42
<PAGE>


WNC California Housing Tax Credits, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2003
<TABLE>
<CAPTION>
                                                -------------------------------  ---------------------------------------------------
                                                   As of March 31, 2003                          As of December 31, 2002
                                                ------------------------------------------------------------------------------------
                                                                                   Mortgage
                                             Total Investment      Amount of      Balances of
                                             in Local Limited    Investment Paid Local Limited   Property and  Accumulated  Net Book
      Partnership Name          Location         Partnerships        to Date      Partnerships    Equipment    Depreciation   Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                             <C>           <C>             <C>            <C>             <C>            <C>         <C>
Alta Vista                      Orosi,
Investors                       California    $    583,000    $   583,000    $  1,423,000    $  2,124,000   $   935,000 $  1,189,000

BCA                             Anderson,
Associates                      California         514,000        514,000       1,412,000       2,049,000       662,000    1,387,000

Cloverdale Garden               Cloverdale,
Apartments                      California         617,000        617,000       1,625,000       2,163,000       579,000    1,566,000

Countryway                      Mendota,
Associates                      California         571,000        571,000       1,463,000       2,175,000       978,000    1,197,000

East Garden                     Jamestown,
Apartments                      California         770,000        770,000       2,138,000       2,923,000       799,000    2,124,000

HPA                             Shafter,
Investors                       California         538,000        538,000       1,500,000       2,203,000       710,000    1,493,000

Knights                         Knights
Landing                         Landing,
Harbor                          California         275,000        275,000         974,000       1,371,000       440,000      931,000

Midland Manor                   Mendota,
Associates                      California         383,000        383,000       1,417,000       1,862,000       771,000    1,091,000

San Jacinto                     San Jacinto,
Associates                      California         469,000        469,000       1,770,000       2,349,000       542,000    1,807,000

Woodlake                        Woodlake,
Manor                           California         545,000        545,000       1,442,000       2,137,000       962,000    1,175,000

Yreka Investment                Yreka,
Group                           California         538,000        538,000       1,457,000       2,044,000       565,000    1,479,000
                                              ------------    -----------    ------------    ------------   ----------- ------------

                                              $  5,803,000    $ 5,803,000    $ 16,621,000    $ 23,400,000   $ 7,961,000 $ 15,439,000
                                              ============    ===========    ============    ============   =========== ============
</TABLE>


                                       43
<PAGE>






WNC California Housing Tax Credits, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2003
<TABLE>
<CAPTION>
                              --------------------------------------------------------------------------------------
                                                      For the year ended December 31, 2003
                              --------------------------------------------------------------------------------------
                                                    Net Income     Year Investment                Estimated Useful
      Partnership Name          Rental Income         (Loss)          Acquired         Status       Life (Years)
--------------------------------------------------------------------------------------------------------------------
<S>                                     <C>              <C>                    <C>                              <C>
Alta Vista Investors                    $   168,000        $  (78,000)          1989         Completed            27.5

BCA Associates                              163,000           (30,000)          1989         Completed              40

Cloverdale Garden Apartments                208,000             4,000           1989         Completed              40

Countryway Associates                       170,000           (72,000)          1989         Completed            27.5

East Garden Apartments                      249,000           (44,000)          1989         Completed              40

HPA Investors                               177,000           (38,000)          1989         Completed              40

Knights Landing Harbor                      125,000           (21,000)          1989         Completed              40

Midland Manor Associates                    157,000           (58,000)          1990         Completed            27.5

San Jacinto Associates                      213,000           (14,000)          1990         Completed              50

Woodlake Manor                              187,000           (52,000)          1989         Completed              30

Yreka Investment Group                      171,000           (33,000)          1989         Completed              50
                                        -----------         ----------

                                        $ 1,988,000        $ (436,000)
                                        ===========         ==========
</TABLE>


                                       44

<PAGE>


WNC California Housing Tax Credits, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2002
<TABLE>
<CAPTION>
                                                -------------------------------  ---------------------------------------------------
                                                   As of March 31, 2002                          As of December 31, 2001
                                                ------------------------------------------------------------------------------------
                                                                                   Mortgage
                                             Total Investment      Amount of      Balances of
                                             in Local Limited    Investment Paid Local Limited   Property and  Accumulated  Net Book
      Partnership Name          Location         Partnerships        to Date      Partnerships    Equipment    Depreciation   Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                             <C>           <C>             <C>            <C>             <C>            <C>         <C>
Alta Vista                      Orosi,
Investors                       California    $    583,000    $   583,000    $  1,428,000    $  2,092,000   $   857,000 $  1,235,000

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

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

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

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

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

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

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

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

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

Yreka Investment                Yreka,
Group                           California         538,000        538,000       1,462,000       2,044,000       528,000    1,516,000
                                              ------------    -----------    ------------    ------------   ----------- ------------

                                              $  5,803,000    $ 5,803,000    $ 16,675,000    $ 23,289,000   $ 7,304,000 $ 15,985,000
                                              ============    ===========    ============    ============   =========== ============
</TABLE>


                                       45
<PAGE>





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

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

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

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

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

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

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

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

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

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

Yreka Investment Group                      166,000           (17,000)          1989         Completed              50
                                        -----------         ----------

                                        $ 1,850,000        $ (480,000)
                                        ===========         ==========
</TABLE>

                                       46
<PAGE>


                                   SIGNATURES


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

WNC CALIFORNIA HOUSING TAX CREDITS, L.P.

By:      WNC & Associates, Inc.,
         General Partner

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

Date:  September 24, 2004

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:  September 24, 2004


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

Date:  September 24, 2004


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

Date:  September 24, 2004

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

Date:  September 24, 2004




                                       47