FORM 10-K

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   (Mark One)

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

                               For the year ended

                                       OR

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

        For the transition period from January 1, 1999 to March 31, 1999

                         Commission file number: 0-20058


                    WNC CALIFORNIA HOUSING TAX CREDITS, L.P.

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



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

                                 (714) 662-5565

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

                                      NONE

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

                      UNITS OF LIMITED PARTNERSHIP INTEREST

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes X No___

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



<PAGE>


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

                                  INAPPLICABLE


                       DOCUMENTS INCORPORATED BY REFERENCE

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

                                      NONE



















                                       2
<PAGE>

PART I.

Item 1.  Business

Organization

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

The  general   partners  of  the   Partnership   are  WNC  &  Associates,   Inc.
("Associates") and Wilfred N. Cooper, Sr.  (collectively,  the "General Partner"
or "General  Partners").  Wilfred N. Cooper,  Sr.,  through the Cooper Revocable
Trust,  owns 66.8% of the outstanding stock of Associates.  John B. Lester,  Jr.
was the original limited partner of the Partnership and owns, through the Lester
Family Trust, 28.6% of the outstanding stock of Associates.  The business of the
Partnership is conducted primarily through Associates, as the Partnership has no
employees of its own.

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

Description of Business

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

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


                                       3

<PAGE>

As of March 31, 1999,  the  Partnership  had  invested in eleven  Local  Limited
Partnerships.  Each of these Local Limited  Partnerships  owns a Housing Complex
that is eligible  for the federal  Low Income  Housing  Credit and eight of them
were  eligible for the  California  Low Income  Housing  Credit.  Certain  Local
Limited Partnerships may also benefit from government programs promoting low- or
moderate-income   housing.  The  Partnership's   investments  in  Local  Limited
Partnerships  are subject to the risks  incident to the management and ownership
of  low-income  housing  and to  the  management  and  ownership  of  multi-unit
residential  real  estate.  Some of these risks are that the Low Income  Housing
Credit could be recaptured and that neither the  Partnership's  investments  nor
the Housing  Complexes owned by the Local Limited  Partnerships  will be readily
marketable.  To the extent the Housing Complexes receive government financing or
operating subsidies,  they may be subject to one or more of the following risks:
difficulties  in obtaining  tenants for the Housing  Complexes;  difficulties in
obtaining  rent  increases;  limitations on cash  distributions;  limitations on
sales or  refinancing  of Housing  Complexes;  limitations on transfers of Local
Limited Partnership Interests; limitations on removal of Local General Partners;
limitations on subsidy programs; and possible changes in applicable regulations.
The Housing Complexes are subject to mortgage  indebtedness.  If a Local Limited
Partnership  does not makes its mortgage  payments,  the lender could  foreclose
resulting in a loss of the Housing Complex and Low Income Housing Credits.  As a
limited partner or non-managing  member of the Local Limited  Partnerships,  the
Partnership  will have very  limited  rights with respect to  management  of the
Local  Limited  Partnerships,  and will rely totally on the general  partners or
managing  members of the Local Limited  Partnerships for management of the Local
Limited Partnerships. The value of the Partnership's investments will be subject
to changes in national and local  economic  conditions,  including  unemployment
conditions, which could adversely impact vacancy levels, rental payment defaults
and operating expenses.  This, in turn, could substantially increase the risk of
operating  losses for the Housing  Complexes and the  Partnership.  In addition,
each Local Limited  Partnership  is subject to risks  relating to  environmental
hazards  and  natural  disasters,  which  might  be  uninsurable.   Because  the
Partnership's  operations  will  depend on these and other  factors  beyond  the
control of the General Partner and the Local General  Partners,  there can be no
assurance that the  anticipated  Low Income Housing Credits will be available to
Limited Partners.

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

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

Item 2. Properties

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

                                       4


<PAGE>
<TABLE>
<CAPTION>



                                                -------------------------------------  ---------------------------------------------
                                                      As of March 31, 1999                            As of December 31, 1998
                                                -------------------------------------  ---------------------------------------------
                                                       Partnership's                                                   Encumbrances
                                                       Total Investment  Amount of     Number         Estimated Low    of Local
Partnership                         General Partner    in Local Limited  Investment     of    Occu-   Income Housing   Limited
Name              Location          Name               Partnerships      Paid to Date  Units  pancy   Credits          Partnerships
------------------------------------------------------------------------------------------------------------------------------------
<S>               <C>               <C>                  <C>           <C>             <C>    <C>     <C>              <C>

Alta Vista        Orosi,            Philip R. Hammond,
Investors         California        Jr. and Diane M.
                                    Hammond              $  583,000    $   583,000     42      98%    $  1,274,000     $  1,440,000



BCA Associates    Anderson,         Douglas W. Young        514,000        514,000     40     100%       1,105,000        1,429,000
                  California

Cloverdale        Cloverdale,       David J. Michael,
Garden            California        Patrick R.
Apartments                          Sabelhaus and
                                    Professional
                                    Apartment
                                    Management              617,000        617,000     34     100%       1,387,000        1,642,000


Countryway        Mendota,          Philip R. Hammond,
Associates        California        Jr. and Diane M.
                                    Hammond                 571,000        571,000     41      95%       1,162,000        1,481,000

East Garden       Jamestown,        David J. Michael
Apartments        California        and Professional
                                    Apartment
                                    Management              770,000        770,000     51     100%       1,772,000        2,161,000

HPA               Shafter,          Douglas W. Young        538,000        538,000     42      98%       1,223,000        1,516,000
                  California

Knights Landing   Knights Landing,  Douglas W. Young and
Harbor            California        Diane L. Young          275,000        275,000     25      96%         446,000          986,000


</TABLE>


                                       5

<PAGE>


<TABLE>
<CAPTION>

                                                -------------------------------------  ---------------------------------------------
                                                      As of March 31, 1999                            As of December 31, 1998
                                                -------------------------------------  ---------------------------------------------
                                                       Partnership's                                                   Encumbrances
                                                       Total Investment  Amount of     Number         Estimated Low    of Local
Partnership                         General Partner    in Local Limited  Investment     of    Occu-   Income Housing   Limited
Name              Location          Name               Partnerships      Paid to Date  Units  pancy   Credits          Partnerships
------------------------------------------------------------------------------------------------------------------------------------
<S>               <C>               <C>                  <C>           <C>             <C>    <C>     <C>              <C>

Midland Manor     Mendota,          Philip R. Hammond,
Associates        California        Jr. and Diane M.
                                    Hammond              $  383,000    $   383,000     40       98%    $   668,000     $  1,431,000

San Jacinto       San Jacinto,      Richard Parasol
Associates        California        and Richard A.
                                    Gullota                 469,000        469,000     38       74%        830,000        1,790,000

Woodlake Manor    Woodlake,         Thomas G. Larson,
                  California        William H. Larson
                                    and Raymond L.
                                    Tetzlaff                545,000        545,000     44       93%      1,146,000        1,460,000

Yreka Investment  Yreka,            Ronald D.
Group             California        Bettencourt             538,000        538,000     36      100%      1,174,000        1,475,000
                                                          ---------      ---------    ---     -----     ----------       ----------
                                                        $ 5,803,000    $ 5,803,000    433       96%   $ 12,187,000     $ 16,811,000
                                                          =========      =========    ===     =====     ==========       ==========
</TABLE>


                                       6




<PAGE>
<TABLE>
<CAPTION>

                                 -----------------------------------------------
                                     For the Year Ended December 31, 1998
                                 -----------------------------------------------
                                                             Low Income Housing
                                    Rental         Net       Credits Allocated
Partnership Name                    Income         Loss      to Partnership
--------------------------------------------------------------------------------
<S>                            <C>           <C>                    <C>

Alta Vista Investors           $    153,000   $  (47,000)           99%

BCA Associates                      151,000      (16,000)           99%

Cloverdale Garden Apartments        176,000      (25,000)           99%

Countryway Associates               167,000      (34,000)           99%

East Garden Apartments              218,000      (42,000)           99%

HPA Investors                       161,000      (63,000)           99%

Knights Landing Harbor              118,000      (21,000)           99%

Midland Manor Associates            151,000      (45,000)           99%

San Jacinto Associates              118,000      (80,000)           99%

Woodlake Manor                      170,000      (45,000)           99%

Yreka Investment Group              154,000       (7,000)           99%
                                  ---------     --------
                              $   1,737,000   $ (425,000)
                                  =========     ========

</TABLE>
                                       7



<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 and Related Stockholder Matters

Item 5a.

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

(b)  At March 31, 1999, there were 685 Limited Partners.

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

(d)  No unregistered  securities  were sold by the Partnership  during the three
     months ended March 31, 1999.

Item 5b.

NOT APPLICABLE

Item 6.  Selected Financial Data

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

                                  March 31                                           December 31
                        -----------------------------   ----------------------------------------------------------------------

                                 1999           1998          1998          1997          1996          1995          1994
                                 ----           ----          ----          ----          ----          ----          ----
                                         (Unaudited)
ASSETS
Cash and cash
<S>                      <C>           <C>            <C>           <C>           <C>           <C>           <C>
  equivalents            $     61,123  $      79,190  $     66,028  $     78,109  $     83,943  $     84,504  $     93,726
Investments in limited
  partnerships, net         1,508,351      1,892,936     1,595,464     2,001,822     2,442,547     2,943,052     3,376,715
Other assets                        -              -             -             -             -           358            74
                            ---------      ---------     ---------     ---------     ---------     ---------     ---------
                         $  1,569,474  $   1,972,126  $  1,661,492  $  2,079,931  $  2,526,490  $  3,027,914  $  3,470,515
                            =========      =========     =========     =========     =========     =========     =========
LIABILITIES
Accrued fees and
  expenses due to
  general partner and
  affiliates             $    848,503  $     735,348  $    820,365  $    705,925  $    594,248  $    483,938  $    372,353

PARTNERS' EQUITY              720,971      1,236,778       841,127     1,374,006     1,932,242     2,543,976     3,098,162
                            ---------      ---------      ---------    ---------     ---------     ---------     ---------
                         $  1,569,474  $   1,972,126  $   1,661,492 $  2,079,931  $  2,526,490  $  3,027,914  $  3,470,515
                            =========      =========      =========    =========     =========     =========     =========
</TABLE>


                                       8
<PAGE>


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

                         For the Three Months Ended                               For the Years Ended
                                  March 31                                            December 31
                        -----------------------------   ------------------------------------------------------------------------

                                 1999          1998           1998           1997          1996           1995          1994
                                 ----          ----           ----           ----          ----           ----          ----
                                         (Unaudited)
<S>                      <C>             <C>            <C>            <C>           <C>            <C>           <C>
Loss from operations     $    (37,519)   $  (32,603)    $ (144,721)    $ (137,368)   $ (135,167)    $ (141,895)   $ (142,872)
Equity in loss from
  limited partnerships        (82,637)     (104,625)      (388,158)      (420,868)     (476,567)      (412,291)     (437,264)
                             --------      --------       --------       --------      --------       --------      --------
Net loss                 $   (120,156)   $ (137,228)    $ (532,879)    $ (558,236)   $ (611,734)    $ (554,186)   $ (580,136)
                             ========      ========       ========       ========      ========       ========      ========

Net loss allocated to:
   General partners      $     (1,202)   $   (1,372)    $   (5,329)    $   (5,582)   $   (6,117)    $   (5,542)   $   (5,801)
                             ========      ========       ========       ========      ========       ========      ========
   Limited partners      $   (118,954)   $ (135,856)    $ (527,550)    $ (552,654)   $ (605,617)    $ (548,644)   $ (574,335)
                             ========      ========       ========       ========      ========       ========      ========
Net loss per limited
  partner unit           $     (15.97)   $   (18.24)    $   (70.81)    $   (74.18)   $   (81.29)    $   (73.64)   $   (77.09)
                             ========      ========       ========       ========      ========       ========      ========
Outstanding weighted
  limited partner units         7,450         7,450          7,450          7,450         7,450          7,450         7,450
                             ========      ========       ========       ========      ========       ========      ========

                         For the Three Months Ended                               For the Years Ended
                                  March 31                                            December 31
                        -----------------------------   ------------------------------------------------------------------------

                                 1999          1998           1998           1997          1996           1995          1994
                                 ----          ----           ----           ----          ----           ----          ----
                                         (Unaudited)
Net cash provided by
  (used in):
    Operating activities   $   (5,655)  $       546   $    (15,377)   $   (10,787)  $    (9,595)   $   (14,624)  $   (11,490)
    Investing activities          750           535          3,296          4,953         9,034          5,402         7,402
                             --------      --------       --------       --------      --------       --------      --------
Net change in cash and
  cash equivalents             (4,905)        1,081        (12,081)        (5,834)         (561)        (9,222)       (4,088)

Cash and cash
  equivalents,
  beginning of period          66,028        78,109         78,109         83,943        84,504         93,726        97,814
                             --------      --------       --------       --------      --------       --------      --------
Cash and cash
  equivalents, end of
  period                   $   61,123  $     79,190   $     66,028    $    78,109   $    83,943    $    84,504   $    93,726
                             ========      ========       ========       ========      ========       ========      ========
</TABLE>

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

                                         1998            1997             1996            1995            1994
                                         ----            ----             ----            ----            ----

<S>                               <C>              <C>              <C>             <C>             <C>
 Federal                          $            99  $           99   $           99  $           99  $           118
 State                                          -               -                -               -                -
                                     ------------    ------------     ------------    ------------    -------------
 Total                            $            99  $           99   $           99  $           99  $           118
                                     ============    ============     ============    ============    =============
</TABLE>

                                       9
<PAGE>


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

Financial Condition

The  Partnership's  assets at March 31, 1999  consisted  primarily of $61,123 in
cash and  aggregate  investments  in the eleven Local  Limited  Partnerships  of
$1,508,351.  Liabilities  at March 31, 1999  primarily  consisted of $845,540 of
accrued annual management fees due to the General Partners.

Results of Operations

Three Months Ended March 31, 1999 Compared to Three Months Ended March 31, 1998.
The  Partnership's  net loss for the  three  months  ended  March  31,  1999 was
$(120,000),  reflecting a decrease of $17,000 from the net loss  experienced for
the three months ended March 31, 1998.  The decline in net loss is primarily due
to equity in losses  from  limited  partnerships  which  declined  by $22,000 to
$(83,000)  for the three  months  ended March 31, 1999 from  $(105,000)  for the
three months ended March 31, 1998. 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, 1999.
Since the  Partnership's  liability with respect to its  investments is limited,
losses in excess of  investment  are not  recognized.  The  reduction  in equity
losses recognized was partially offset by an increase in loss from operations of
$5,000 for the three months ended March 31, 1999 to  $(37,000),  from  $(32,000)
for the three  months  ended March 31,  1998,  due to a  comparable  increase in
operating expense allocations.

Year Ended  December 31, 1998  Compared to Year Ended  December  31,  1997.  The
Partnership's net loss for 1998 was $(533,000), reflecting a decrease of $25,000
from the net loss  experienced in 1997. The decline in net loss is primarily due
to equity in losses from limited  partnerships  which  declined to $(388,000) in
1998 from  $(421,000) in 1997. This decrease was a result of the Partnership not
recognizing certain losses of the Local Limited Partnerships. The investments in
such Local Limited  Partnerships reached $0 during 1998. Since the Partnership's
liability  with  respect  to its  investments  is  limited,  losses in excess of
investment  are not  recognized.  The reduction in equity losses  recognized was
partially  offset by an  increase in loss from  operations  of $8,000 in 1998 to
$(145,000),  from $(137,000) in 1997, due to a comparable  increase in operating
expense allocations.

Year Ended  December 31, 1997  Compared to Year Ended  December  31,  1996.  The
Partnership's net loss for 1997 was $(558,000), reflecting a decrease of $54,000
from the net loss  experienced in 1996. The decline in net loss is primarily due
to equity in losses from limited  partnerships  which  declined to $(421,000) in
1997 from  $(477,000) in 1996,  because the investments in certain Local Limited
Partnerships  reached $0 during 1997.  Losses from operations  were  essentially
unchanged between years.

Cash Flows

Three Months Ended March 31, 1999 Compared to Three Months Ended March 31, 1998.
Net cash used  during  the three  months  ended  March  31,  1999 was  $(5,000),
compared to a net  increase in cash for the three months ended March 31, 1998 of
$1,000.  The change was due primarily to an increase in operating  costs paid to
third parties.

Year Ended  December 31, 1998 Compared to Year Ended December 31, 1997. Net cash
used in 1998 was $(12,000),  compared to net cash used in 1997 of $(6,000).  The
change was due primarily to an increase in operating costs paid to third parties
and a decline in distributions from Local Limited Partnerships.

Year Ended  December 31, 1997 Compared to Year Ended December 31, 1996. Net cash
used in 1997 was  $(6,000),  compared to  $(1,000)  in  1996.The  change was due
primarily to a decrease in distributions from limited partnerships.

                                       10
<PAGE>

During the three  months  ended March 31, 1999 and the year ended  December  31,
1998, accrued payables, which consist primarily of related party management fees
due to the General Partner, increased by $28,000 and $115,000, 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  expects its future cash flows,  together with its net available
assets at March 31, 1999, to be  sufficient  to meet all  currently  foreseeable
future cash requirements.

Impact of Year 2000

WNC & Associates, Inc.

Status of Readiness

Information Technology (IT) Systems. The Partnership relies on the IT systems of
WNC, its general partner. IT systems include computer hardware and software used
to produce  financial  reports and tax return  information.  This information is
then used to generate  reports to investors and regulatory  agencies,  including
the Internal Revenue Service and the Securities and Exchange Commission.  The IT
systems of WNC are year 2000 compliant.

Non-IT Systems. The Partnership also relies on the non-IT systems of WNC. Non-IT
systems  include  machinery and  equipment  such as  telephones,  voice mail and
electronic  postage  equipment.  Except  for one  telephone  system,  the non-IT
systems of WNC are year 2000  compliant.  The one telephone  system will require
the replacement of one computer and one software application, both of which will
be completed on or before October 1, 1999.

Service  Providers.  WNC also  relies on the IT and  non-IT  systems  of service
providers. Service providers include utility companies,  financial institutions,
telecommunications carriers,  municipalities, and other outside vendors. WNC has
obtained verbal assurances from its material service providers (electrical power
provider,  financial institutions and telecommunications carriers) that their IT
and non-IT systems are year 2000 compliant.  There can be no assurance that this
compliance  information  is  correct.  There also can be no  assurance  that the
systems of other,  less-important  service providers and outside vendors will be
year 2000 compliant.

Costs to Address Year 2000 Issues

The cost to address  year 2000  issues for WNC has been less than  $20,000.  The
cost to replace the telephone  system noted above will be less than $5,000.  The
cost to deal with potential year 2000 issues of other outside  vendors cannot be
estimated at this time.

Risk of Year 2000 Issues

The most  reasonable and likely result from non-year 2000  compliance of systems
of the service  providers  noted above will be the disruption of normal business
operations for WNC. This disruption would, in turn, lead to delays in performing
reporting and fiduciary responsibilities on behalf of the Partnership. The worst
case scenario would be the replacement of a service provider. These delays would
likely  be  temporary  and  would  likely  not  have a  material  effect  on the
Partnership or WNC.

                                       11
<PAGE>

Local Limited Partnerships

Status of Readiness

WNC is in the  process of  obtaining  year 2000  certifications  from each Local
General Partner of each Local Limited  Partnership.  Those  certifications  will
represent  to the  Partnership  that the IT and non-IT  systems  critical to the
operation of the Housing Complexes and investor reporting to the Partnership are
year 2000 compliant. These certifications will also represent to the Partnership
that the IT and non-IT  systems of property  management  companies,  independent
accountants,    electrical   power   providers,   financial   institutions   and
telecommunications  carriers used by the Local Limited Partnership are year 2000
compliant.

There can be no assurance that the representations in the certifications will be
correct.   There  also  can  be  no   assurance   that  the  systems  of  other,
less-important  service  providers  and  outside  vendors,  upon which the Local
Limited Partnerships rely, will be year 2000 compliant.

Costs to Address Year 2000 Issues

There  will be no cost to the  Partnership  as a result of  assessing  year 2000
issues for the Local Limited Partnerships.  The cost to deal with potential year
2000 issues of the Local Limited Partnerships cannot be estimated at this time.

Risk of Year 2000 Issues

There may be Local  General  Partners who indicate  that they or their  property
management  company are not year 2000  compliant and do not have plans to become
year 2000  compliant  before the end of 1999.  There may be other Local  General
Partners who are  unwilling to respond to the  certification  request.  The most
likely result of either non-compliance or failure to respond will be the removal
and  replacement  of the property  management  company  and/or the Local General
Partner with year 2000 compliant operators.

Despite the efforts to obtain certifications, there can be no assurance that the
Partnership  will be unaffected  by year 2000 issues.  The most  reasonable  and
likely  result from non-year 2000  compliance  will be the  disruption of normal
business  operations  for the  Local  Limited  Partnerships,  including  but not
limited  to the  possible  failure  to  properly  collect  rents and meet  their
obligations in a timely manner.  This disruption  would, in turn, lead to delays
by  the  Local  Limited  Partnerships  in  performing  reporting  and  fiduciary
responsibilities  on behalf of the  Partnership.  The worst-case  scenario would
include the  initiation of  foreclosure  proceedings on the property by mortgage
debt holders. Under these circumstances, WNC or its affiliates will take actions
necessary  to  minimize  the risk of  foreclosure,  including  the  removal  and
replacement of a Local General  Partner by the  Partnership.  These delays would
likely  be  temporary  and  would  likely  not  have a  material  effect  on the
Partnership or WNC.

Item 7A.  Quantitative and Qualitative Disclosures about Market Risk

NOT APPLICABLE

Item 8.  Financial Statements and Supplementary Data

                                       12
<PAGE>
               Report of Independent Certified Public Accountants


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


We have audited the  accompanying  balance sheets of WNC California  Housing Tax
Credits, L.P. (a California Limited Partnership) (the "Partnership") as of March
31, 1999 and  December  31,  1998,  and the related  statements  of  operations,
partners'  equity  (deficit) and cash flows for the three months ended March 31,
1999 and the year ended December 31, 1998.  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, 1999 and December 31, 1998. 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  generally   accepted  auditing
standards.  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, 1999 and December 31, 1998, and the results
of its  operations  and its cash flows for the three months ended March 31, 1999
and the year ended  December  31, 1998 in  conformity  with  generally  accepted
accounting principles.




                                               BDO SEIDMAN, LLP

Orange County, California
July 7, 1999




                                       13
<PAGE>


                          INDEPENDENT AUDITORS' REPORT



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

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



                                                    CORBIN & WERTZ

Irvine, California
March 18, 1998




                                       14
<PAGE>


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

                                 BALANCE SHEETS
<TABLE>
<CAPTION>


                                                March 31                        December 31
                                      ------------------------------   ------------------------------

                                              1999             1998             1998            1997
                                              ----             ----             ----            ----
                                                       (Unaudited)
ASSETS

<S>                                 <C>              <C>                <C>             <C>
Cash and cash equivalents           $       61,123   $       79,190     $     66,028    $     78,109
Investments in limited
  partnerships,  net (Note 2)            1,508,351        1,892,936        1,595,464       2,001,822
                                         ---------        ---------        ---------       ---------
                                    $    1,569,474   $    1,972,126     $  1,661,492    $  2,079,931
                                         =========        =========        =========       =========
LIABILITIES AND PARTNERS' EQUITY
  (DEFICIT)

Liabilities:
   Accrued  fees  and  expenses
     due to  General Partner
     and affiliates (Note 3)        $      848,503   $      735,348     $    820,365   $     705,925

Commitments and contingencies

Partners' equity (deficit):
  General partners                         (57,631)         (52,472)         (56,429)        (51,100)
  Limited partners
    (10,000 units  authorized;
    7,450 units issued and
    outstanding)                           778,602        1,289,250          897,556       1,425,106
                                         ---------        ---------        ---------       ---------
      Total partners' equity               720,971        1,236,778          841,127       1,374,006
                                         ---------        ---------        ---------       ---------
                                    $    1,569,474   $    1,972,126     $  1,661,492   $   2,079,931
                                         =========        =========        =========       =========
</TABLE>


                 See accompanying notes to financial statements
                                       15

<PAGE>

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

                            STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>


                                         For the Three Months Ended
                                                  March 31                     For the Years Ended December 31
                                         ----------------------------   -------------------------------------------

                                           1999            1998           1998            1997           1996
                                           ----            ----           ----            ----           ----
                                                        (Unaudited)

<S>                               <C>              <C>             <C>             <C>            <C>
Interest income                   $         465    $        546    $     2,166     $     2,227    $     3,549

Operating expenses:
  Amortization (Note 2)                   3,726           3,726         14,904          14,904         14,904
  Asset management fees (Note 3)         27,923          27,923        111,691         111,691        111,691
  Legal and accounting                    4,553             500          4,000           5,339          5,175
  Office                                  1,782           1,000         16,292           7,661          6,946
                                       --------        --------       --------        --------       --------
  Total operating expenses               37,984          33,149        146,887         139,595        138,716
                                       --------        --------       --------        --------       --------

Loss from operations                    (37,519)        (32,603)      (144,721)       (137,368)      (135,167)

Equity in losses of limited
  partnerships (Note 2)                 (82,637)       (104,625)      (388,158)       (420,868)      (476,567)
                                       --------        --------       --------        --------       --------
Net loss                          $    (120,156)   $   (137,228)   $  (532,879)    $  (558,236)   $  (611,734)
                                       ========        ========       ========        ========       ========
Net loss allocated to:
  General partners                $      (1,202)   $     (1,372)   $    (5,329)    $    (5,582)   $    (6,117)
                                      =========        ========       ========        ========       ========
  Limited partners                $    (118,954)   $   (135,856)   $  (527,550)    $  (552,654)   $  (605,617)
                                      =========        ========       ========        ========       ========
Net  loss  per  limited
  partnership unit                $      (15.97)   $     (18.24)   $    (70.81)    $    (74.18)   $    (81.29)
                                      =========        ========       ========        ========       ========
Outstanding weighted limited
  partner units                           7,450           7,450          7,450           7,450          7,450
                                      =========        ========       ========        ========       ========
</TABLE>




                 See accompanying notes to financial statements
                                       16

<PAGE>


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

                    STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

                For The Three Months Ended March 31, 1999 and For
                The Years Ended December 31, 1998, 1997 and 1996



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

Partners' equity (deficit)
  at January 1, 1996          $   (39,401)      $   2,583,377    $    2,543,976

Net loss                           (6,117)           (605,617)         (611,734)
                                 --------           ---------         ---------
Partners' equity (deficit)
  at December 31, 1996            (45,518)          1,977,760         1,932,242

Net loss                           (5,582)           (552,654)         (558,236)
                                 --------           ---------         ---------
Partners' equity (deficit)
  at December 31, 1997            (51,100)          1,425,106         1,374,006

Net loss                           (5,329)           (527,550)         (532,879)
                                 --------           ---------         ---------
Partners' equity (deficit)
  at December 31, 1998            (56,429)            897,556           841,127

Net loss                           (1,202)           (118,954)         (120,156)
                                 --------           ---------         ---------
Partners' equity (deficit)
  at March 31, 1999           $   (57,631)      $     778,602    $      720,971
                                 ========           =========         =========







                 See accompanying notes to financial statements
                                       17

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

                            STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>



                                         For the Three Months Ended
                                                  March 31                     For the Years Ended December 31
                                         ----------------------------    -------------------------------------------

                                                 1999           1998            1998           1997            1996
                                                 ----           ----            ----           ----            ----
                                                         (Unaudited)

Cash flows from operating activities:
<S>                                    <C>              <C>            <C>             <C>            <C>
   Net loss                            $     (120,156)  $   (137,228)  $    (532,879)  $   (558,236)  $    (611,734)

   Adjustments to reconcile net loss
     to net cash provided by (used  in)
     operating activities:
     Amortization                               3,726          3,726          14,904         14,904          14,904
     Equity in losses of limited
       partnerships                            82,637        104,625         388,158        420,868         476,567
     Change in other assets                         -              -               -              -             358
     Change in accrued fees and
       expenses due to General
       Partner and affiliates                  28,138         29,423         114,440        111,677         110,310
                                            ---------      ---------       ---------      ---------       ---------
Net cash provided by (used in)
  operating activities                         (5,655)           546         (15,377)       (10,787)         (9,595)
                                            ---------      ---------       ---------      ---------       ---------

Cash flows provided by investing activities:
  Distributions from limited partnerships         750            535           3,296          4,953           9,034
                                            ---------      ---------       ---------      ---------       ---------

Net increase (decrease) in cash and
  cash equivalents                             (4,905)         1,081         (12,081)        (5,834)           (561)

Cash and cash equivalents, beginning
  of period                                    66,028         78,109          78,109         83,943          84,504
                                            ---------      ---------       ---------      ---------       ---------

Cash and cash equivalents, end of
  period                                $      61,123  $      79,190   $      66,028  $      78,109   $      83,943
                                            =========      =========       =========      =========       =========
SUPPLEMENTAL DISCLOSURE OF
  CASH FLOW INFORMATION:

    Taxes paid                         $            -  $           -   $         800  $         800   $         800
                                            =========      =========       =========      =========       =========
</TABLE>


                 See accompanying notes to financial statements
                                       18

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

                          NOTES TO FINANCIAL STATEMENTS

         For The Three Months Ended March 31, 1999 and 1998 (Unaudited)
            And For The Years Ended December 31, 1998, 1997 and 1996


NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

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

WNC & Associates, Inc., a California corporation ("WNC"), and Wilfred N. Cooper,
Sr., are general partners of the Partnership (the "General  Partners").  Wilfred
N. Cooper, Sr., through the Cooper Revocable Trust owns 66.8% of the outstanding
stock of WNC.  John B.  Lester,  Jr.  was the  original  limited  partner of the
Partnership and owns,  through the Lester Family Trust, 28.6% of the outstanding
stock of WNC.

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

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

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

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

Change in Reporting Year End

The  Partnership  has  elected  to change its year end for  financial  reporting
purposes from December 31 to March 31. All  financial  information  reflected in
the financial statements and related footnotes has been adjusted for this change
in year end except for the combined condensed financial  information relating to
the Local Limited Partnerships included in Note 2.

Due to the change in year end, unaudited financial information as of and for the
three months ended March 31, 1998 is included in the  financial  statements  for
comparative  purposes  only.  The  financial  statements as of and for the three
months  ended  March  31,  1998  are  unaudited  but  include  all   adjustments
(consisting  of normal  recurring  adjustments)  which  are,  in the  opinion of
management,  necessary for a fair statement of financial position and results of
operations of the Partnership for the interim period.

                                       19
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

         For The Three Months Ended March 31, 1999 and 1998 (Unaudited)
            And For The Years Ended December 31, 1998, 1997 and 1996


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

Risks and Uncertainties

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

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

Method of Accounting For Investments in Limited Partnerships

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

Losses from limited partnerships for the years ended December 31, 1998, 1997 and
1996 have been recorded by the Partnership's  based on reported results provided
by the Local  Limited  Partnerships.  Losses from limited  partnerships  for the
three months ended March 31, 1999 and 1998 have been  estimated by management of
the Partnership.  Losses from limited partnerships  allocated to the Partnership
are not recognized to the extent that the  investment  balance would be adjusted
below zero.


                                       20
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

         For The Three Months Ended March 31, 1999 and 1998 (Unaudited)
            And For The Years Ended December 31, 1998, 1997 and 1996


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

Offering Expenses

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

Use of Estimates

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

Cash and Cash Equivalents

The  Partnership   considers  all  highly  liquid   investments  with  remaining
maturities of three months or less when purchased to be cash equivalents.  As of
March 31, 1999 and  December  31,  1998 and 1997,  the  Partnership  had no cash
equivalents.

Net Loss Per Limited Partner Unit

Net loss per limited  partnership  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 income per unit is not required.

Reporting Comprehensive Income

In June 1997,  the FASB  issued  Statement  of  Financial  Accounting  Standards
("SFAS") No. 130, Reporting  Comprehensive  Income.  This statement  establishes
standards for reporting the components of comprehensive income and requires that
all items that are  required to be  recognized  under  accounting  standards  as
components of comprehensive  income be included in a financial statement that is
displayed with the same prominence as other financial statements.  Comprehensive
income  includes net income as well as certain items that are reported  directly
within a separate  component  of  Partners'  equity and bypass net  income.  The
Partnership  adopted the  provisions of this  statement in 1998. For the periods
presented,  the Partnership has no elements of other  comprehensive  income,  as
defined by SFAS No. 130.

Reclassifications

Certain  prior period  balances  have been  reclassified  to conform to the 1999
presentation.


                                       21
<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

         For The Three Months Ended March 31, 1999 and 1998 (Unaudited)
            And For The Years Ended December 31, 1998, 1997 and 1996


NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS

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

The  Partnership's  investments  in Local Limited  Partnerships  as shown in the
balance  sheets at December 31, 1998 and 1997,  are  approximately  $205,000 and
$208,000,  respectively,  greater than the Partnership's  equity as shown in the
Local Limited Partnerships'  financial statements.  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.

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

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

At March 31, 1999, 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 three month  period ended March 31, 1999
amounting to approximately  $23,000 have not been recognized.  The Partnership's
share  of  losses  during  the  year  ended   December  31,  1998  amounting  to
approximately  $32,000  have not been  recognized.  As of March  31,  1999,  the
aggregate  share of net losses not  recognized  by the  Partnership  amounted to
$55,000.

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

                                    For the Three           For the Years Ended
                                     Months Ended               December 31
                                       March 31
                                    ---------------   --------------------------

                                           1999            1998           1997
                                           ----            ----           ----
Investments per balance sheet,
  beginning of period               $ 1,595,464   $   2,001,822   $  2,442,547
Equity in losses of limited
  partnerships                          (82,637)       (388,158)      (420,868)
Distributions received                     (750)         (3,296)        (4,953)
Amortization of paid
  acquisition fees and costs             (3,726)        (14,904)       (14,904)
                                      ---------       ---------      ---------
Investments per balance sheet,
  end of period                     $ 1,508,351   $   1,595,464   $  2,001,822
                                      =========       =========      =========


                                       22
<PAGE>
                    WNC CALIFORNIA HOUSING TAX CREDITS, L.P.
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

         For The Three Months Ended March 31, 1999 and 1998 (Unaudited)
            And For The Years Ended December 31, 1998, 1997 and 1996

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 limited  partnerships as of December 31
and for the years then ended is as follows:

                        COMBINED CONDENSED BALANCE SHEETS

                                                    1998                1997
                                                    ----                ----
ASSETS

Buildings and improvements,
  (net of accumulated                   $     16,079,000    $     16,617,000
   depreciation for 1998 and
   1997 of  $5,420,000 and
   $4,818,000, respectively)
Land                                           1,484,000           1,484,000
Other assets                                   1,465,000           1,387,000
                                         ---------------     ---------------
                                        $     19,028,000    $     19,488,000
                                         ===============     ===============

LIABILITIES

Mortgage loans payable                  $     16,811,000    $     16,854,000
Other liabilities
  (including $348,000 and $347,000               506,000             483,000
  due to related parties)
                                         ---------------     ---------------
                                              17,317,000          17,337,000
                                         ---------------     ---------------
PARTNERS' CAPITAL

WNC California Housing
  Tax Credits, L.P                             1,390,000           1,794,000
Other partners                                   321,000             357,000
                                         ---------------     ---------------
                                               1,711,000           2,151,000
                                         ---------------     ---------------
                                        $     19,028,000    $     19,488,000
                                         ===============     ===============


                                       23
<PAGE>
                    WNC CALIFORNIA HOUSING TAX CREDITS, L.P.
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

         For The Three Months Ended March 31, 1999 and 1998 (Unaudited)
            And For The Years Ended December 31, 1998, 1997 and 1996

NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued

                   COMBINED CONDENSED STATEMENTS OF OPERATIONS

                                1998               1997                1996
                                ----               ----                ----

Revenues                 $     1,828,000   $     1,802,000   $       1,771,000
                               ---------         ---------           ---------
Expenses:
  Operating expenses           1,251,000         1,199,000           1,236,000
  Interest expense               400,000           410,000             406,000
  Depreciation and
    amortization                 602,000           618,000             611,000
                               ---------         ---------           ---------
   Total expenses              2,253,000         2,227,000           2,253,000
                               ---------         ---------           ---------
Net loss                 $      (425,000)  $      (425,000)  $        (482,000)
                               =========         =========           =========
Net loss allocable to
   the Partnership       $      (420,000)  $      (421,000)  $        (477,000)
                               =========         =========           =========
Net loss recorded
   by the Partnership    $      (388,000)  $      (421,000)  $        (477,000)
                               =========         =========           =========

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

NOTE 3 - RELATED PARTY TRANSACTIONS

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

          Acquisition  fees equal to 6% of the gross  proceeds  from the sale of
          Units as  compensation  for services  rendered in connection  with the
          acquisition  of  Local  Limited  Partnerships.  As of  the  end of all
          periods  presented,  the  Partnership  incurred  acquisition  fees  of
          $447,060.  Accumulated  amortization  of these  capitalized  costs was
          $190,683,  $186,957 and $172,053 as of March 31, 1999 and December 31,
          1998 and 1997, respectively.

          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
          incurred  acquisition  costs of $32,018  which have been  included  in
          investments in limited  partnerships.  Such costs were fully amortized
          at December 31, 1997.

          An annual  management fee equal to 0.5% of the invested  assets of the
          Local Limited Partnerships, including the Partnerships allocable share
          of the mortgages.  Management fees of $27,923 were incurred during the
          three months ended March 31, 1999 and $111,691 were incurred for 1998,
          1997 and 1996,  of which $0 was paid  during  the three  months  ended
          March 31, 1999 and the years ended December 31, 1998, 1997 and 1996.

                                       24
<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

         For The Three Months Ended March 31, 1999 and 1998 (Unaudited)
            And For The Years Ended December 31, 1998, 1997 and 1996

NOTE 3 - RELATED PARTY TRANSACTIONS, continued

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


                                    March 31                 December 31
                                 ---------------    ----------------------------

                                        1999             1998             1997
                                        ----             ----             ----

Reimbursement for expenses
  paid by the General
  Partners or an affiliate      $      2,963     $      2,748    $           -
Asset management fee payable         845,540          817,617          705,925
                                   ---------        ---------        ---------

Total                           $    848,503     $    820,365    $     705,925
                                   =========        =========        =========

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

NOTE 4 - INCOME TAXES

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


                                       25

<PAGE>

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

NOT APPLICABLE

PART III.

Item 10. Directors and Executive Officers of the Registrant

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

Directors and Executive Officers of WNC & Associates, Inc.

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

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

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

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

David N. Shafer, age 47, is Senior Vice President, a Director,  General Counsel,
and a member of the  Acquisition  Committee  of WNC &  Associates,  Inc.,  and a
Director and Secretary of WNC  Management,  Inc. Mr. Shafer has been involved in
real estate  investment and acquisition  activities since 1984. Prior to joining
the Sponsor in 1990, he was  practicing  law with a specialty in real estate and
taxation.  Mr. Shafer is a Director and President of the  California  Council of
Affordable  Housing  and a member  of the State Bar of  California.  Mr.  Shafer
graduated  from the  University  of  California  at Santa Barbara in 1978 with a
Bachelor of Arts degree, from the New England School of Law in 1983 with a Juris
Doctor  degree (cum laude) and from the  University  of San Diego in 1986 with a
Master of Law degree in Taxation.

                                       26
<PAGE>

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

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

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

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

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

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

                                       27
<PAGE>

Item 11.  Executive Compensation

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

(a)  Annual Asset  Management  Fee. An annual asset  management fee in an amount
     equal  to 0.5% of the  Invested  Assets  of the  Partnership,  as  defined.
     "Invested  Assets" means the sum of the  Partnership's  investment in Local
     Limited Partnerships and the Partnership's allocable share of the amount of
     the  mortgage  loans on and other debts  related to the  Housing  Complexes
     owned by such Local Limited Partnerships. Fees of $28,000 and $112,000 were
     incurred  during the three  months  ended March 31, 1999 and the year ended
     December 31, 1998, respectively.  The Partnership paid the General Partners
     and or their  affiliates  $0 of those fees  during the three  months  ended
     March 31, 1999 and the year ended December 31, 1998.

(b)  Operating  Expense.  The Partnership  reimbursed the General Partner or its
     affiliates for operating expenses of approximately $6,000 and $3,000 during
     the three months ended March 31, 1999 and the year ended December 31, 1998,
     respectively.

(c)  Interest  in  Partnership.   The  General   Partners   receive  1%  of  the
     Partnership's  allocated Low Income  Housing  Credits,  which  approximated
     $6,700 for  Associates  and $750 for Mr. Cooper for the year ended December
     31,  1998.  The General  Partners  are also  entitled to receive 1% of cash
     distributions.  There were no distributions of cash to the General Partners
     during the three  months  ended March 31, 1999 and the year ended  December
     31, 1998.

Item 12.  Security Ownership of Certain Beneficial Owners and Management

(a)  Security Ownership of Certain Beneficial Owners

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

(b)  Security Ownership of Management

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

(c)  Changes in Control

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

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

Item 13.  Certain Relationships and Related Transactions

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

                                       28
<PAGE>

PART IV.

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

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

         Report of Independent Certified Public Accountants
         Independent Auditors' Report
         Balance  Sheets,  March 31, 1999  and 1998 (Unaudited) and December 31,
           1998 and 1997
         Statements of Operations for the three months ended  March 31, 1999 and
           1998  (Unaudited)  and for  the  years ended December 31, 1998,  1997
           and 1996
         Statements  of   Partners'  Equity  (Deficit)  for   the  three  months
           ended March 31, 1999 and  for  the  years  ended  December 31,  1998,
           1997 and 1996
         Statements of Cash Flows  for the three months ended March 31, 1999 and
           1998 (Unaudited) and for the years ended  December 31, 1998, 1997 and
           1996
         Notes to Financial Statements

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

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

(b)      Reports on Form 8-K.

1.       A Form 8-K dated May 13, 1999  was filed on May 14, 1999  reporting the
         Partnership's change in fiscal year end to March 31.

(c)      Exhibits.

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

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

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

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

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

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

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

                                       29
<PAGE>

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

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

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

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

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

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

                                       30

<PAGE>


              Report of Independent Certified Public Accountants on
                          Financial Statement Schedule






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


The audits  referred to in our report  dated July 7, 1999,  relating to the 1999
and 1998 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.



                                                         BDO SEIDMAN, LLP


Orange County, California
July 7, 1999







                                       31

<PAGE>


WNC California Housing Tax Credits, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 1999
<TABLE>
<CAPTION>
                                    ------------------------------------   ---------------------------------------------------------
                                               As of March 31, 1999                                  As of December 31, 1998
                                    ------------------------------------   ---------------------------------------------------------
                                   Partnership's Total     Amount of       Encumbrances of
                                   Investment in Local  Investment Paid    Local Limited   Property and   Accumulated     Net Book
Partnership Name      Location     Limited Partnerships    to Date         Partnerships      Equipment    Depreciation      Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                   <C>            <C>                <C>              <C>             <C>             <C>           <C>
Alta Vista            Orosi,
Investors             California     $   583,000        $   583,000      $   1,440,000   $   2,038,000   $   636,000   $   1,402,000

BCA Associates        Anderson,
                      California         514,000            514,000          1,429,000       2,014,000       471,000       1,543,000

Cloverdale Garden     Cloverdale,
Apartments            California         617,000            617,000          1,642,000       2,136,000       375,000       1,761,000

Countryway            Mendota,
Associates            California         571,000            571,000          1,481,000       2,085,000       668,000       1,417,000

East Garden           Jamestown,
Apartments            California         770,000            770,000          2,161,000       2,886,000       499,000       2,387,000

HPA Investors         Shafter,
                      California         538,000            538,000          1,516,000       2,158,000       489,000       1,669,000

Knights Landing       Knights
Harbor                Landing,
                      California         275,000            275,000            986,000       1,345,000       312,000       1,033,000

Midland Manor         Mendota,
Associates            California         383,000            383,000          1,431,000       1,821,000       512,000       1,309,000

San Jacinto           San Jacinto,
Associates            California         469,000            469,000          1,790,000       2,349,000       374,000       1,975,000

Woodlake Manor        Woodlake,
                      California         545,000            545,000          1,460,000       2,108,000       667,000       1,441,000

Yreka Investment      Yreka,
Group                 California         538,000            538,000          1,475,000       2,043,000       417,000       1,626,000
                                       ---------          ---------         ----------      ----------     ---------      ----------
                                     $ 5,803,000        $ 5,803,000      $  16,811,000   $  22,983,000   $ 5,420,000   $  17,563,000
                                       =========          =========         ==========      ==========     =========      ==========
</TABLE>

                                       32

<PAGE>


WNC California Housing Tax Credits, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 1999
<TABLE>
<CAPTION>
                                          ------------------------------------------------------------------------------------------
                                                                       For the year ended December 31, 1998
                                          ------------------------------------------------------------------------------------------

                                                                           Year Investment                    Estimated Useful Life
Partnership Name                      Rental Income       Net Loss            Acquired           Status              (Years)
------------------------------------------------------------------------------------------------------------------------------------
<S>                                 <C>               <C>                         <C>           <C>                       <C>
Alta Vista Investors                $     153,000     $   (47,000)                1989          Completed                 27.5

BCA Associates                            151,000         (16,000)                1989          Completed                   40

Cloverdale Garden Apartments              176,000         (25,000)                1989          Completed                   40

Countryway Associates                     167,000         (34,000)                1989          Completed                 27.5

East Garden Apartments                    218,000         (42,000)                1989          Completed                   40

HPA Investors                             161,000         (63,000)                1989          Completed                   40

Knights Landing Harbor                    118,000         (21,000)                1989          Completed                   40

Midland Manor Associates                  151,000         (45,000)                1990          Completed                 27.5

San Jacinto Associates                    118,000         (80,000)                1990          Completed                   50

Woodlake Manor                            170,000         (45,000)                1989          Completed                   30

Yreka Investment Group                    153,000          (7,000)                1989          Completed                   50
                                        ---------        --------
                                    $   1,736,000     $  (425,000)
                                        =========        ========

</TABLE>

                                       33


<PAGE>



WNC California Housing Tax Credits, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
December 31, 1998
<TABLE>
<CAPTION>

                                   -------------------------------------------------------------------------------------------------
                                                                            As of December 31, 1998
                                   -------------------------------------------------------------------------------------------------
                                   Partnership's Total     Amount of       Encumbrances of
                                   Investment in Local  Investment Paid    Local Limited   Property and   Accumulated     Net Book
Partnership Name      Location     Limited Partnerships    to Date         Partnerships      Equipment    Depreciation      Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                   <C>            <C>                <C>              <C>             <C>             <C>           <C>
Alta Vista            Orosi,
Investors             California     $   583,000        $   583,000      $   1,440,000   $   2,038,000   $   636,000   $   1,402,000

BCA Associates        Anderson,
                      California         514,000            514,000          1,429,000       2,014,000       471,000       1,543,000

Cloverdale Garden     Cloverdale,
Apartments            California         617,000            617,000          1,642,000       2,136,000       375,000       1,761,000

Countryway            Mendota,
Associates            California         571,000            571,000          1,481,000       2,085,000       668,000       1,417,000

East Garden           Jamestown,
Apartments            California         770,000            770,000          2,161,000       2,886,000       499,000       2,387,000

HPA Investors         Shafter,
                      California         538,000            538,000          1,516,000       2,158,000       489,000       1,669,000

Knights Landing       Knights
Harbor                Landing,
                      California         275,000            275,000            986,000       1,345,000       312,000       1,033,000

Midland Manor         Mendota,
Associates            California         383,000            383,000          1,431,000       1,821,000       512,000       1,309,000

San Jacinto           San Jacinto,
Associates            California         469,000            469,000          1,790,000       2,349,000       374,000       1,975,000

Woodlake Manor        Woodlake,
                      California         545,000            545,000          1,460,000       2,108,000       667,000       1,441,000

Yreka Investment      Yreka,
Group                 California         538,000            538,000          1,475,000       2,043,000       417,000       1,626,000
                                       ---------          ---------         ----------      ----------     ---------      ----------
                                     $ 5,803,000        $ 5,803,000      $  16,811,000   $  22,983,000   $ 5,420,000   $  17,563,000
                                       =========          =========         ==========      ==========     =========      ==========
</TABLE>

                                       34
<PAGE>



WNC California Housing Tax Credits, L.P.
Schedule III
Real Estate Owned by Local Limited Partnerships
December 31, 1998
<TABLE>
<CAPTION>

                                     -----------------------------------------------------------------------------------------------
                                                                  For the year ended December 31, 1998
                                     -----------------------------------------------------------------------------------------------

                                                                           Year Investment                    Estimated Useful Life
Partnership Name                      Rental Income       Net Loss            Acquired           Status              (Years)
------------------------------------------------------------------------------------------------------------------------------------
<S>                                 <C>               <C>                         <C>           <C>                       <C>
Alta Vista Investors                $     153,000     $   (47,000)                1989          Completed                 27.5

BCA Associates                            151,000         (16,000)                1989          Completed                   40

Cloverdale Garden Apartments              176,000         (25,000)                1989          Completed                   40

Countryway Associates                     167,000         (34,000)                1989          Completed                 27.5

East Garden Apartments                    218,000         (42,000)                1989          Completed                   40

HPA Investors                             161,000         (63,000)                1989          Completed                   40

Knights Landing Harbor                    118,000         (21,000)                1989          Completed                   40

Midland Manor Associates                  151,000         (45,000)                1990          Completed                 27.5

San Jacinto Associates                    118,000         (80,000)                1990          Completed                   50

Woodlake Manor                            170,000         (45,000)                1989          Completed                   30

Yreka Investment Group                    153,000          (7,000)                1989          Completed                   50
                                        ---------        --------
                                    $   1,736,000     $  (425,000)
                                        =========        ========

</TABLE>

                                       35
<PAGE>


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


WNC CALIFORNIA HOUSING TAX CREDITS, L.P.

By:  WNC & Associates, Inc., General Partner


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

Date: July 27, 1999


By:  /s/ Michael L. Dickenson
Michael L. Dickenson,
Vice-President - Chief Financial Officer of WNC & Associates, Inc.

Date: July 27, 1999


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

Date: July 27, 1999

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


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

Date: July 27, 1999



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

Date: July 27, 1999


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

Date: July 27, 1999


                                       36