FORM 10-K

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

(Mark One)

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

For the fiscal year ended December 31, 1996

                                       OR

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

For the transition period from ________ to ___________

Commission file number: 33-76970


              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., Series 4

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

California                                                   33-0531301

              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., Series 4
              3158 Redhill Avenue, Suite 120, Costa Mesa, CA 92626

                                 (714) 662-5565

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

Title of Securities                                Exchanges on which Registered

NONE                                               NOT APPLICABLE



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

NONE

<PAGE>


         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes X No ____
         Indicate by check mark if disclosure of delinquent  filers  pursuant to
Item 405 of Regulation S-K is not contained  herein,  and will not be contained,
to the best of  registrant's  knowledge,  in  definitive  proxy  or  information
statements  incorporated  by  reference  in Part  III of this  Form  10-K or any
amendment to this Form 10-K. |X|




                       DOCUMENTS INCORPORATED BY REFERENCE

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

NONE




<PAGE>


Item 1.  Business

         PART I.


Organization

WNC California  Housing Tax Credits IV, Series 4 ("the  Partnership"  or "Series
4") is a California  limited  partnership  formed under the laws of the State of
California on February 16, 1994. The  Partnership  was formed to acquire limited
partnership   interests   in  local   limited   partnerships   ("Local   Limited
Partnerships")  which own multifamily  apartment complexes that are eligible for
Federal and (in some cases) California  low-income housing tax credits (the "Low
Income Housing Credits").

The general  partner of Series 4 is WNC  California  Tax Credits IV, L.P.  ("The
General Partner"). The general partner of WNC California Tax Credit Partners IV,
L.P. is WNC & Associates,  Inc. ("Associates").  The business of the Partnership
is conducted  primarily  through  Associates as the  Partnership and The General
Partner have no employees of their own.

Holders of Limited  Partnership  Interests  are  referred  to herein as "Limited
Partners."

On July 26, 1994 the Partnership  commenced a public offering of 25,000 Units of
Limited  Partnership  Interests  ("Units"),  at a price of $1,000 per Unit.  The
Partnership  closed its  offering  August 10, 1995 with a total of 11,500  Units
representing  approximately  $11,099,000 that were sold throughout the offering.
Enova Financial, Inc., a California corporation which is not an affiliate of the
Partnership or General Partner, purchased 5,096 Units, which represents 44.3% of
the Units  outstanding  for the  Partnership.  Enova  Financial,  Inc.  invested
$4,712,000 due to a volume discount of $384,000.


The  Partnership  has applied and will apply funds raised  through  their public
offerings,   including  the  installment   payments  of  the  Limited  Partners'
promissory  notes as received,  to the purchase price and  acquisition  fees and
costs of Local  Limited  Partnership  Interests,  reserves  and  expenses of the
Offering.



Description of Business

The  Partnership's  principal  business  objective  is to  provide  its  Limited
Partners with Low Income Housing Credits.  The Partnership's  principal business
therefore   consists  of  investing  as  a  limited  partner  in  local  limited
partnerships  ("Local Limited  Partnerships") each of which will own and operate
an apartment  complex  ("Apartment  Complex") which will qualify for the federal
low-income  housing tax credit ("Low Income Housing Tax"). The Tax Reform Act of
1986 (the  "1986  Act")  replaced  most  existing  federal  tax  incentives  for
low-income  housing with Section 42 of the Internal Revenue Code, which provides
for the Low Income Housing Credit. In general,  an owner of a low-income housing
project  under (i) federal  law is  entitled to receive the Federal  Housing Tax
Credit in each year of a ten-year  period (the  "Credit  Period") and (ii) under
California  Revenue  and  Taxation  Section  17058 is  entitled  to receive  the
California  Housing Tax Credit in each year of a four-year period. The Apartment
Complex is subject to a 15-year compliance period (the "Compliance Period").


<PAGE>


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

As  of  December  31,  1996,  Series  4  had  invested  in  nine  Local  Limited
Partnerships. Each of these Local Limited Partnerships owns an Apartment Complex
that is eligible for the Low Income  Housing  Credit.  All of the Local  Limited
Partnerships   also  benefit  from   government   programs   promoting  low-  or
moderate-income housing.

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

As of December 31, 1996, the eight of nine apartment  complexes  acquired by the
Partnership were completed and in operation and one is under  construction.  The
Apartment Complexes are being developed by the respective Local General Partners
who acquired the sites and applied for applicable  mortgages and subsidies.  The
Partnership  became  the  principal  limited  partner  in  these  Local  Limited
Partnerships  pursuant  to  arm's-length  negotiations  with the  Local  General
Partners.  As a limited partner, the Partnership's  liability for obligations of
each Local Limited  Partnership is limited to its investment.  The Local General
Partners of the Local Limited Partnership retain  responsibility for developing,
constructing, maintaining, operating and managing the Apartment Complex.

The  following  is a schedule of the status,  as of December  31,  1996,  of the
Apartment Complexes owned by Local Limited Partnerships in which the Partnership
was a limited partner.
<PAGE>


<TABLE>
<CAPTION>
                         SCHEDULE OF PROJECTS OWNED BY LOCAL LIMITED PARTNERSHIPS
                                IN WHICH THE PARTNERSHIP HAS AN INVESTMENT
                                           AS OF DECEMBER 31, 1996

                                            No. of          Units           Units        Percentage of Total
Name & Location                              Apts.        Completed        Occupied        Units Occupied
---------------                              -----        ---------        --------        --------------
<S>                                         <C>           <C>              <C>           <C>

CHADRON APARTMENTS I                          16              0                0                 0%
  Chadron, Nebraska
COLONIAL VILLAGE AUBURN                       56             56               53                95
  Auburn, California
EAGLEVILLE ASSOCIATES I                       16             16               14                88
  Eagleville, Montana
MAHARLIKA, LTD                                69             69               64                93
  Stockton, California
PAWNEE ASSOCIATES I                           20             20               20               100
  Pawnee, Illinois
RANCHERA VILLAGE APTS                         14             14               14               100
  Santa Barbara, California
SYCAMORE HILLS                                24             24               23                96
   Salem, Indiana
WILLS POINT CROSSING                          36             36               36               100
  Wills Point, Texas
WOODLAKE VALENCIA                             47                               0                 0
  Woodlake, California                        --             --               --                --

                                              298            235             224                95%
                                              ===            ===             ===                == 
</TABLE>



Description of Local Partnerships
---------------------------------
Series 4 has become a limited partner in Colonial  Village Auburn,  a California
limited  partnership   ("COLONIAL-AUBURN");   Maharlika,  a  California  limited
partnership   Eagleville   Associates   I,  a   Missouri   limited   partnership
("EAGLEVILLE"),   Maharlika  a  California  Limited  Partnership  ("MAHARLIKA");
Rancheria    Gardens    Apartments,    a    California    limited    partnership
("RANCHERIA"),Pawnee   Associates  I,  L.P.,  a  Missouri  limited   partnership
("PAWNEE"), , Sycamore Hills L.P., an Indiana limited partnership  ("SYCAMORE"),
in Salem,  Indiana,  Wills Point Crossing,  L.P., a Georgia limited  partnership
qualified  to do  business  in  Texas  ("WILLS  POINT")  and  Woodlake  Valencia
Partners, a California limited partnership ("WOODLAKE").

COLONIAL-AUBURN   owns  the  Colonial  Village  Auburn   Apartments  in  Auburn,
California;  EAGLEVILLE owns the MAHARLIKA owns the Filipino  Community Building
in Stockton, California; PAWNEE owns the Countryside Manor Apartments in Pawnee,
Illinois,  RANCHERIA  owns the Rancheria  Gardens  Apartments in Santa  Barbara,
California; SYCAMORE owns the Sycamore Hills Apartments in Salem, Indiana, WILLS
POINT owns Wills Point  Crossing  Apartments in Wills Point,  Texas and WOODLAKE
owns Valencia House in Woodlake, California.

Series 4 expects to become a limited  partner in  Chadron  Apartments  I Limited
Partnership,  a  Nebraska  limited  partnership  ("CHADRON").  CHADRON  owns the
Chadron  Apartments in Chadron,  Nebraska;  EAGLEVILLE owns the Shamrock Estates
Apartments  in  Eagleville,  Missouri;  and PAWNEE  owns the  Countryside  Manor
Apartments in Pawnee, Illinois.

The  following   tables  contain   information   concerning  the  Local  Limited
Partnerships identified above.

<PAGE>


<TABLE>
====================================================================================================================================
<S>               <C>              <C>              <C>             <C>           <C>              <C>              <C>
Local             Project Name     Estimated        Estimated       Number of     Basic Monthly    Permanent        Local Limited
Limited                            Construction     Development     Apartment     Rents            Mortgage Loan    Partnership's
Partnership                        Completion       Cost With Land  Units                          Amount           Anticipated
                                                                                                                    Tax Credits (1)
====================================================================================================================================
Chadron           Chadron          November         $1,016,432       4 2BR units  $285             $400,000         $894,940
                  Apartments       1996                             12 3BR units  $385             FNBO (2)         (federal)

                  8 buildings

------------------------------------------------------------------------------------------------------------------------------------
Colonial-         Colonial         May 1995         $6,184,639      28 2BR units  $458-555         $2,145,000       $4,467,790
Auburn            Village                                           28 3BR units  $528-640         Home             (federal)
                  Auburn                                                                           Savings (2)
                  Apartments                                                                                        $1,489,263
                                                                                                                    (California)
------------------------------------------------------------------------------------------------------------------------------------
Eagleville        Shamrock         March            $429,860        10 1BR units  $191             $358,000         $150,280
                  Estates          1996                              6 2BR units  $250             RECDS (5)        (federal)
                  Apartments

                   (3)

------------------------------------------------------------------------------------------------------------------------------------
Maharlika         Filipino         October          $3,162,402      69 1BR units  $267             $436,000         $1,958,000
                  Community        1995                                                            Home             (federal)
                  Building                                                                         Savings (6)
                  (3)                                                                                               $946,961
                                                                                                   $451,800         (California
                                                                                                   HOME (7)

                                                                                                   $107,200
                                                                                                   CDBG (7)

                                                                                                   $603,200
                                                                                                   RDA (7)
------------------------------------------------------------------------------------------------------------------------------------
Pawnee            Countryside      June 1996        $773,261        10 1BR units  $275             $615,264         $253,520
                  Manor                                             10 2BR units  $304             RECDS (5)        (federal)
                  Apartments

                  (3)

------------------------------------------------------------------------------------------------------------------------------------
Rancheria         Rancheria        October          $1,886,829       8 2BR units  $463-565         $400,000         $1,334,550
                  Gardens          1995                              5 3BR units  $526-644         Santa            (federal)
                  Apartments                                         1 4BR unit   $716             Barbara Bank
                                                                                                   & Trust (8)      $462,852
                                                                                                                    (California)
                                                                                                   $570,940
                                                                                                   Santa
                                                                                                   Barbara City
                                                                                                   RDA (9)
------------------------------------------------------------------------------------------------------------------------------------
Sycamore          Sycamore         August           $840,000        22 1BR units  $236             $814,800         $346,000
                  Hills            1994                              2 2BR units  $262             RECDS(5)         (federal)
                  Apartments
------------------------------------------------------------------------------------------------------------------------------------
Woodlake          Valencia House   February 1996    $3,084,533      47 1BR units  $202             $176,121         $2,226,740
                                                                                  $266             CCRC (10)        (federal)
                                                                                  $290             $1,000,000
                                                                                                   HOME (11)        $1,136,985
                                                                                                                    (California)
------------------------------------------------------------------------------------------------------------------------------------
Wills             Wills Point      September        $1,021,000       8 1BR units  $240             $990,370         $447,050
Point             Crossing         1995                                                            RECDS(5)         (federal)
                  Apartments                                        28 2BR units  $275
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>


(1) Federal Low Income Housing Credits are available over a 10-year period.  For
the  year in which  the  credit  first  becomes  available  with  respect  to an
Apartment  Complex,  Series 4 will  receive only that  percentage  of the annual
credit  which  corresponds  to the number of months  during which Series 4 was a
limited partner of the Local Limited Partnership, and during which the Apartment
Complex was  completed  and in  service.  See the  discussion  under "Low Income
Housing  Credits  - Federal  Low  Income  Housing  Credits"  in the  Prospectus,
incorporated herein by reference.

California Low Income Housing Credits are available over a four-year period. The
full  amount of the  first-year  California  Low  Income  Housing  Credit can be
claimed in the year in which the  low-income  units are occupied,  regardless of
the month of occupancy. Notwithstanding, the amount of the California Low Income
Housing  Credits  which  can  be  allocated  to  Series  4  by a  Local  Limited
Partnership  in the first  year must be  pro-rated  if Series 4 is not a limited
partner of the Local Limited  Partnership  owning the  Apartment  Complex at the
time it is first placed in service. See the discussion under "Low Income Housing
Credits - California Low Income Housing Credits" in the Prospectus.

(2) First  National Bank of Omaha  ("FNBO") will provide the mortgage loan for a
term of 12 years at a variable interest rate. The interest rate will be adjusted
every 36 months  to an  annual  rate of 225  basis  points  over the  three-year
Treasury Constant Maturities rate. The note will have a minimum rate of 8.5% and
a maximum rate of 12.5%. Principal and interest will be payable monthly based on
a 25-year amortization schedule.

(3)   Maharlika  is  senior   citizen   housing.   Eagleville   and  Pawnee  are
rehabilitation properties.

(4) Home Savings of America will provide the mortgage  loan at a fixed  interest
rate equal to the rate  established by the 11th District  Federal Home Loan Bank
plus 1.5% per annum.  The loan will be for a 15-year  term,  with  principal and
interest  payable  monthly based on a 30-year  amortization  schedule.  The then
outstanding principal amount will be due at maturity.

(5) RECDS  (formally  the  Farmers  Home  Administration)  of the United  States
Department of  Agriculture  provides  mortgage  loans under the FmHA Section 515
Mortgage  Loan  Program.  The  mortgage  loan is a 50-year loan and bears annual
interest at a market rate prior to reduction of the interest  rate by a mortgage
interest  subsidy to an annual rate of 1%, with  principal and interest  payable
monthly based on a 50-year amortization schedule.

(6) Home Savings of America will provide the first  mortgage  loan at a variable
interest rate equal to the rate  established  by the 11th District  Federal Home
Loan Bank  plus  2.5% per  annum.  The loan  will be for a  15-year  term,  with
principal and interest payable monthly based on a 30-year amortization schedule.
The then outstanding principal amount will be due at maturity.

(7) HOME will provide the second  mortgage loan at a fixed interest rate of 7.5%
per annum for a term and amortization period of 40 years,  Community Development
Block Grant  program  ("CDBG")  will provide the third  mortgage loan at a fixed
interest  rate of 3% per annum for a term and  amortization  period of 47 years,
and Stockton  Redevelopment Agency ("RDA") will provide the fourth mortgage loan
at a fixed interest rate of 3% per annum for a term and  amortization  period of
45 years.  Prior to maturity  the loans will be paid  annually,  but only to the
extent cash from operations of the Apartment Complex is available therefor after
payment of operating expenses,  debt service on the first mortgage and an amount
equal to $15,000.  The unpaid  balances will be due on the  respective  maturity
dates of the loans.

(8) Santa  Barbara Bank & Trust will  provide the  mortgage  loan at an interest
rate  determined  as follows:  years 1-15, a rate equal to the 20-year  Treasury
Bond rate plus  2.875%  per  annum;  years  16-30,  a rate  equal to the  5-year
Treasury Bond rate plus 2.5% per annum. Adjustments to the interest rate will be
made in  years  16,  21 and 26.  The  term of the loan  will be 30  years,  with
principal and interest payable monthly based on a 30-year amortization period.

(9) Santa  Barbara  City  Redevelopment  Agency  ("RDA") will provide the second
mortgage loan at a fixed interest rate of 4.5% per annum, with $5,000 to be paid
per year, and the balance to be accrued until maturity. The term of the loan and
the amortization period will be 30 years.


<PAGE>


(10) California Community Reinvestment  Corporation will provide a mortgage loan
for a term of 30 ears at an  annual  interest  rate of 9%,  with  principal  and
interest payable monthly based on a 30-year amortization schedule.

(11)  HOME  will  provide  a  mortgage  loan for a term of 40 years at an annual
interest rate equal to the applicable  Federal rate, with principal and interest
payable monthly based on a 40-year amortization schedule.

Chadron  (CHADRON):  Chadron  (population  5,600)  is the  county  seat of Dawes
County, and is in northwestern Nebraska at the intersection of U.S. Highways 385
and 20. Basic  economic  activities of Chadron,  a county seat and college town,
include  retail  and  wholesale  sales,  farming,   ranching,   cattle  feeding,
transportation  and  tourism.  The major  employers  for Chadron  residents  are
Chadron State College, Chadron Community Hospital and Chadron city schools

Auburn  (COLONIAL-AUBURN):  Auburn, the county seat of Placer County, is located
at the intersection of Interstate Highway 80 and State Highway 49, approximately
30 miles  northeast of  Sacramento.  The  population of Auburn is  approximately
10,500.  The largest  employment  sector for Placer  County  residents is in the
services industry  (primarily  health services and hotel and lodging  services).
Retail  trade is the  second  largest  employment  sector.  Some of the  largest
manufacturing  employers  for Auburn  residents  are  Coherent  (optic and laser
systems),  American  Forest  Products  (lumber),  and R&W  Products  (industrial
ceramics).

Eagleville  (EAGLEVILLE):  Eagleville (population 275) is in Harrison County, in
northeastern  Missouri,  at the intersection of Interstate Highway 35 and County
Highway N,  approximately  14 miles north of Bethany.  The major  employers  for
residents of Eagleville are Premium Standard Farm and Continental Grain.

Pawnee  (PAWNEE):   Pawnee   (population   2,400)  is  in  Sangamon  County,  in
west-central   Illinois,  on  Interstate  Highway  55.  Springfield  is  located
approximately 15 miles north of Pawnee. The major employers for Pawnee residents
are Central Illinois Power and the state government.

Stockton  (MAHARLIKA):  Stockton,  the county  seat of San  Joaquin  County,  is
located  approximately  80 miles  east of San  Francisco  and 40 miles  south of
Sacramento.  In 1990,  the  population  of Stockton was  approximately  195,000.
Historically,  the economy of Stockton has been based in agricultural production
and  processing.  In recent  years the  economic  base has  broadened to include
electronics and construction  materials production.  Stockton is also becoming a
major distribution center.

Santa  Barbara  (RANCHERIA):  Santa  Barbara,  the county seat of Santa  Barbara
County,  is located on U.S. Highway 101 on the Pacific coast, 90 miles northwest
of Los Angeles.  The population of Santa Barbara is approximately  370,000.  The
economy of Santa  Barbara is based  primarily  in  tourism.  The city's  largest
employers  are the  University of  California  at Santa  Barbara,  Santa Barbara
County government, and Carter's Hospital.

Salem  (SYCAMORE):  Salem,  the county seat of Washington  County,  Indiana,  is
located approximately 100 miles south of Indianapolis in the southern portion of
Indiana  at the  intersection  of State  Highways  56,  60,  135,  and 160.  The
population of Salem is approximately 5,600. The largest categories of employment
in Washington County are manufacturing and wholesale and retail trade. The major
employers  in  the  Salem  area  are  Smith  Cabinet  &  Child  Craft  (juvenile
furniture),  ICM/Krebsoge  (powder metal  products),  and Kimball  International
(office furniture).

Woodlake  (WOODLAKE):  Woodlake,  Tulare  County,  California  is located at the
intersection of State Highways 245 and 216, approximately six miles northwest of
Cisalia and  approximately  50 miles  southeast  of Fresno.  The  population  of
Woodlake is approximately  6,300. The major employers for Woodlake residents are
Dryvip Systems  (stucco  manufacturer),  Fruit Growers  (agricultural  chemicals
manufacturer), and Golden State Packers (fruit packers).

Wills Point  (WILLS  POINT):  Wills Point  (population  3,000) is located in Van
Zandt County, in the northeast section of Texas,  approximately 50 miles east of
Dallas, at the intersection of U.S. Highway 80 and State Highway 64. Canton, the
county seat, is located 13 miles southeast of Wills Point. The largest employers
for Wills  Point  residents  are the school  district  and Cushie  Manufacturing
(diapers).

<PAGE>


<TABLE>
================================================================================================================================
<CAPTION>
                                                                                 Sharing Ratio:
                                                                                 --------------

<S>                <C>                         <C>                  <C>                     <C>               <C>
                                                                                            Allocations
Local              Local                                                                    and Sale or       Series 4's
Limited            General                     Property                                     Refinancing       Capital
Partnership        Partners                    Manager (1)          Cash Flow (2)           Proceeds          Contributions (3)
================================================================================================================================
Chadron            Retro Development Inc.      Retro Management     Series 4:  first        99/1 (4)          $483,000
                                               Group, Inc.          $2,500                  25/75 (5)
                   Most Worshipful Prince                           LGP:  next $2,500
                   Hall Grand Lodge                                 The balance:
                                                                    Series 4:  25%
                                                                    LGP:  75%
--------------------------------------------------------------------------------------------------------------------------------
Colonial-          The S. P. Thomas Company    FPI Management,      1995-1998:  Series 4:   99/1  (4)         $3,184,640
Auburn             of Northern California,     Inc.                 first $5,000,           51/49 (5)
                   Inc.                                             balance to LGP;
                                                                    1999-2002
                   Project GO, Inc.                                 Series 4: first
                                                                    $8,500 balance to LGP
                                                                    Thereafter
                                                                    Series 4: 75%
                                                                    LGP: 30%
--------------------------------------------------------------------------------------------------------------------------------
Eagleville         Joseph A. Shepherd          Lockwood Realty,     Series 4:  Greater      99/1 (4)          $82,000
                                               Inc.                 15% or $300             50/50 (5)
                   Kenneth M. Vitor                                 LGP:  40%
                                                                    Balance:  50/50
--------------------------------------------------------------------------------------------------------------------------------
Maharlika          Daniels C. Logue            Daniels C. Logue     Series 4: 1/3           99/1  (4)         $1,524,233
                                               Development and      LGP:  2/3               50/50 (5)
                   Cyrus Youssefi              Construction Co.,
                                               Inc.
--------------------------------------------------------------------------------------------------------------------------------
Pawnee             Joseph A. Shepherd          Lockwood Realty,     Series 4:  Greater      99/1 (4)          $138,000
                                               Inc.                 15% or $300             50/50 (5)
                   Kenneth M. Vitor                                 LGP:  40%
                                                                    Balance:  50/50
--------------------------------------------------------------------------------------------------------------------------------
Rancheria          Richard Bialosky            Real Estate          Series 4: 1/3           99/1  (4)         $960,891
                                               Concepts, Inc.       LGP:  2/3               50/50 (5)
                   Detlev Peikert

                   Community Housing
                   Assistance Program, Inc.
--------------------------------------------------------------------------------------------------------------------------------
Sycamore           Larry A. Swank              Sterling             Series 4:  1st $500     99/1 (4)          $184,972
                                               Management Ltd.,     LGP:  2nd $1,500        25/75 (5)
                   Lance A. Swank              Inc.                 Balance:
                                                                    Series 4:  99%
                                                                    LGP:  1%
--------------------------------------------------------------------------------------------------------------------------------
Woodlake           Philip R. Hammond, Jr.      The Management       Series 4:  1/3          99/1 (4)          $1,798,247
                                               Company              LGP:  2/3               51/49 (5)
--------------------------------------------------------------------------------------------------------------------------------
Wills              1600 Capital                M-DC Group,          Series 4: 1st           99/1  (4)         $234,567
Point              Company,                    Inc., dba            $815                    50/50 (5)
                   Inc.                        Alpha                LGP: 2nd
                                               Management           $1,635
                                                                    Balance: 99/1
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>


(1)      The  maximum  annual  management  fee payable to the  property  manager
         generally  is  determined  pursuant  to lender  regulations.  The Local
         General  Partners are authorized to employ either  themselves or one of
         their  Affiliates,  or a third party, as a property manager for leasing
         and  management  of the  Apartment  Complex so long as the fee therefor
         does not exceed the amount  authorized  and  approved by the lender for
         the Apartment Complex.

(2)      Reflects the amount of the net cash flow from operations, if any, to be
         distributed to Series 4 and the Local General  Partners  ("LGP") of the
         Local Limited  Partnership for each year of operations.  Generally,  to
         the extent that the specific  dollar  amounts  which are to be paid are
         not  paid  annually,  they  will  accrue  and  be  paid  from  sale  or
         refinancing proceeds as an obligation of the Local Limited Partnership.

(3)      Series 4 will  make its  capital  contributions  to the  Local  Limited
         Partnership  in  stages,   with  each  contribution  due  when  certain
         conditions  regarding  construction  or  operations  of  the  Apartment
         Complex have been fulfilled.  See  "Investment  Policies" and "Terms of
         the Local Limited Partnership  Agreements" under "Investment Objectives
         and Policies" in the Prospectus.

(4)      Subject  to  certain  special  allocations,   reflects  the  respective
         percentage  interests  of Series 4 and the Local  General  Partners  in
         profits, losses and Low Income Housing Credits commencing with entry of
         Series 4 as a limited partner.

(5)      Reflects the respective  percentage interests of Series 4 and the Local
         General  Partners in any net cash proceeds from sale or  refinancing of
         the Apartment  Complexes,  after payment of the mortgage loan and other
         Local Limited Partnership obligations, in the order set forth: Chadron:
         Series 4's capital contribution,  and the Local General Partners' sales
         preparation fee. Colonial-Auburn:  Series 4's capital contribution, and
         the Local General Partners' sales preparation fee.  Eagleville:  Series
         4's  capital  contribution,  and  the  Local  General  Partners'  sales
         preparation fee. Maharlika:  Series 4's capital  contribution,  and the
         capital contribution of the Local General Partners.  Pawnee: Series 4's
         capital contribution, and the Local General Partners' sales preparation
         fee.  Rancheria:  The Local General  Partners' sales  preparation  fee,
         Series 4's capital  contribution,  and the capital  contribution of the
         Local General Partners. Sycamore: Series 4's capital contribution,  and
         the Local General Partners' sales preparation fee. Woodlake: Series 4's
         capital contribution, and the Local General Partners' sales preparation
         fee.  Wills Point:  : An amount equal to the financial  interest of the
         Local  General   Partner,   as  determined  in  accordance  with  RECDS
         regulations,   Series   4'S   capital   contribution   (less   previous
         distributions);  an amount equal to any  operating  deficit loan to the
         Local  General   Partner;   and  the  Local  General   Partner's  sales
         preparation fee. 

As used above, the term "sales  preparation fee" means a fee in the amount of 3%
(6% for Rancheria) of sale or refinancing proceeds.



Item 2.  Properties


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


Item 3.  Legal Proceedings

None.


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

None.

<PAGE>


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

The  Units are not  traded on a public  exchange  but are being  sold  through a
public  offering.  It is not anticipated that any public market will develop for
the  purchase  and sale of any  Unit.  Units  can be  assigned  only if  certain
requirements in the Partnership Agreement are satisfied.

At  December  31,  1996,  there  were  429  Limited  Partner  in  Series  4. The
Partnership was not designed to provide cash  distributions  to Limited Partners
in  circumstances  other than  refinancing or disposition of its  investments in
Local Limited  Partnerships.  The Limited Partners  invested in the Series 4 for
the full years of 1996 and 1995 received Low Income Housing  Credits per Unit as
follows:

                            1996     1995
                           ------   ------
Federal                      $64      $12
California                    70       70
                           ------   ------
                            $134      $82
                            ====      ===



ITEM 6.  SELECTED FINANCIAL DATA


<TABLE>
<CAPTION>
                                                                                       For the Period July 26,
                                                                                        1994(Date Operations
                                          For Year Ended          For Year Ended           Commenced) to
                                         December 31, 1996       December 31, 1995        December 31,1994
                                         -----------------       -----------------        ----------------
<S>                                       <C>                    <C>                    <C>    
Revenues                                  $    147,254           $    160,888           $      1,613
Partnership operating
 expenses                                      (76,353)              (137,234)               (13,399)
Equity in income (loss) from
 limited partnerships                         (528,288)              (100,224)                 2,212
                                               -------                -------                  -----
Net loss                                  $   (457,387)          $    (76,570)          $     (9,574)
                                              ========                =======                 ======
Net loss per weighted
 limited partner units                    $        (39)          $         (9)          $        (11)
                                                    ==                      =                     ==
Total assets                              $ 11,216,917           $ 12,347,056           $  5,198,745
                                            ==========             ==========              =========
Investments in
 limited partnerships                     $  8,467,424           $  8,494,018           $  3,355,553
                                             =========              =========              =========
Payable to
 limited partnerships                     $  1,929,597           $  2,785,857           $    584,640
                                             =========              =========                =======
Accrued fees and expenses due to
 affiliates                               $     43,755           $    102,526           $  1,700,543
                                                ======                =======              =========

</TABLE>

Series 4 was organized on February 16, 1994 and had only minimal  activity until
December 19, 1994, the date the Partnership's  minimum offering  requirement was
satisfied.  Series 4's Offering of Limited  Partnership  Interests  commenced on
July 26, 1994. Due to these factors and the nature of Series 4's business (i.e.,
raising capital and acquiring Local Limited Partnership Interests over the first
several  years  of its  term),  the data  provided  above  will not be  directly
comparable  from year to year.  See  "Management's  Discussion  and  Analysis of
Financial Condition and Results of Operations."


<PAGE>


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

Liquidity and Capital Resources

Overall,  as reflected in its Statement of Cash Flows, the Partnership had a net
decrease in cash and cash  equivalents of $1,212,000 for the year ended December
31, 1996.  This  decrease in cash consists of cash (used in) and provided by the
Partnership's   operating   activities,   investing   activities  and  financing
activities of approximately  $95,766,  $(1,369,907)  and $61,683,  respectively.
Cash used by investing activities  consisted primarily of capital  contributions
to Local Partnerships of approximately $1,341,000.  Cash provided from financing
activities  consisted of collection of notes receivable of $172,500 and offering
costs of $70,000,  cash used in  investing  activities  consisted of payments to
affiliates or general partner.  Cash provided by operating  activities consisted
primarily of collection of receivables from  affiliates.  Cash used by operating
activities consisted primarily of payments for operating fees and expenses.  The
major components of all these activities are discussed in greater detail below.

Overall,  as  reflected  in its  Statement  of Cash  Flows,  Series  4 had a net
increase in cash and cash equivalents of  approximately  $3,342,000 and $485,000
for the years ended December 31, 1995 and 1994,  respectively.  This increase in
cash was provided by Series 4's  financing  activities,  including  the proceeds
from its Offering and, for 1994, the short term  indebtedness  described  below.
Cash from  financing  activities for the period ended December 31, 1995 and 1994
of approximately $5,295,000 and $4,201,000,  respectively was sufficient to fund
the investing activities of Series 4 (i.e.,  capital  contributions and loans to
Local  Limited   Partnerships)  of  approximately   $1,979,000  and  $3,718,000,
respectively.  Cash provided by and used in the operating activities of Series 4
was minimal compared to its other activities.  Cash provided consisted primarily
of interest received on cash deposits and Limited Partner  Promissory Notes, and
cash used consisted  primarily of payment for operating  fees and expenses.  The
major components of all these activities are discussed in greater detail below.

As of December  31,  1996,  the  Partnership  is indebted to an affiliate of the
General Partner in the amount of approximately  $44,000.  The component items of
such indebtedness are as follows: accrued management fees, and acquisition fees,
and advances made for acquisition  costs,  organizational,  offering and selling
costs of $18,000, $24,000 and $2,000, respectively.

As of March 31,  1997 and  December  31,  1996,  the  Partnership  has  received
approximately   $11,099,000  from  the  sale  of  the  Units  and  approximately
$9,135,000  (82%)  of  which  has  been  committed  to the  purchase  price  and
acquisition  fees and  costs of  investments  in 18  local  Limited  Partnership
Interests.

The Partnership had made capital  contributions to Local Limited Partnerships in
the amount of  approximately  $6,443,000  and $7,260,000 as of December 31, 1996
and March 31, 1997, respectively.

Prior to sale of the  Apartment  Complexes,  it is not expected  that any of the
Local Limited  Partnerships in which the Partnership has invested or will invest
will generate cash sufficient to provide distributions to The Partnership of any
material amount.  Distributions  to the Partnership  would first by used to meet
operating  expenses  of the  Partnership,  including  the  payment  of the Asset
Management Fee to the General Partner.  See Item 11 hereof.  As a result,  it is
not anticipated that the Partnership  will provide  distributions to the Limited
Partners prior to the same of the Apartment Complexes.


<PAGE>


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

Upon  completion  of its  public  offering  (August  10,  1995) the  Partnership
established  working  capital  reserves  of  approximately  3%  of  the  Limited
Partners' capital contributions.  This amount is anticipated to be sufficient to
satisfy general working capital and administrative  expense  requirements of the
Partnership  including  payment of the asset  management fee as well as expenses
attendant to the preparation of tax returns and reports to the Limited  Partners
and other investor  servicing  obligations of the Partnership.  Liquidity would,
however,  be adversely  affected by  unanticipated  or greater than  anticipated
operating costs. The Partnership's  liquidity could also be affected by defaults
or delays in payment of the Limited  Partners'  promissory  notes,  from which a
portion of the working capital reserves is expected to be funded.  To the extent
that working capital reserves are insufficient to satisfy the cash  requirements
of the  Partnership,  it is anticipated  that  additional  funds would be sought
through bank loans or other  institutional  financing.  The General  Partner may
also apply any cash distributions  received from the Local Partnerships for such
purposes or to replenish or increase working capital reserves.

As part  of its  application  for  government  assistance,  each  Local  Limited
Partnership  must  establish to the  satisfaction  of the agency  providing  the
government  assistance that the Local  Partnership will have sufficient funds to
complete  construction or rehabilitation of its apartment  complex.  None of the
Local  Partnerships  has  any  material  capital   commitments  other  than  the
completion of its Apartment Complex.

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

The  Partnership's  capital  needs and  resources  are expected to undergo major
changes at least  through 1997 as a result of the  completion of its offering of
Units and its acquisition of investments.  Thereafter, the Partnership's capital
needs and  resources  are  expected  to be  relatively  stable  over the holding
periods of the investments.


<PAGE>


Item 8.  Financial Statements and Supplementary Data



















             WNC CALIFORNIA HOUSING TAX CREDITS, IV, L.P., SERIES 4
                       (A California Limited Partnership)

               For The Years Ended December 31, 1996 and 1995 and
               For The Period From July 26, 1994 (Date Operations
                         Commenced) To December 31, 1994

                                      with

                      INDEPENDENT AUDITORS' REPORT THEREON



<PAGE>












                          INDEPENDENT AUDITORS' REPORT




To the Partners
WNC California Housing Tax Credits IV, L.P., Series 4


We have audited the  accompanying  balance sheets of WNC California  Housing Tax
Credits  IV,  L.P.,   Series  4  (a   California   Limited   Partnership)   (the
"Partnership")  as of December 31, 1996 and 1995, and the related  statements of
operations,  partners'  equity (deficit) and cash flows for the years then ended
and for the period from July 26, 1994 (date  operations  commenced)  to December
31, 1994. These financial statements are the responsibility of the Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audits. We did not audit the financial statements of the
limited  partnerships  in which WNC  California  Housing Tax  Credits IV,  L.P.,
Series 4 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  75% and 69% of the total assets of WNC
California Housing Tax Credits IV, L.P., Series 4 at December 31, 1996 and 1995,
respectively.  Substantially  all of 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 the
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 IV, L.P., Series 4
(a California  Limited  Partnership)  as of December 31, 1996 and 1995,  and the
results  of its  operations  and its cash flows for the years then ended and for
the period from July 26, 1994 (date operations  commenced) to December 31, 1994,
in conformity with generally accepted accounting principles.



                                                         /s/  Corbin & Wertz
                                                        _____________________
                                                        CORBIN & WERTZ

Irvine, California
May 1, 1997



<PAGE>


              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
                       (A California Limited Partnership)

                                 BALANCE SHEETS

                           December 31, 1996 and 1995



ASSETS                                                  1996             1995
                                                     ----------       ----------

Cash and cash equivalents                          $  2,614,756    $  3,827,214
Receivables from affiliates (Note 3)                    121,825            --
Investments in limited partnerships (Note 2)          8,467,424       8,494,018
Other assets                                             12,912          25,824
                                                     ----------      ----------

                                                   $ 11,216,917    $ 12,347,056
                                                     ==========      ==========

LIABILITIES AND PARTNERS' EQUITY (DEFICIT)

Liabilities:
  Payable to limited partnerships (Note 4)         $  1,929,597    $  2,785,857
  Accrued fees and advances due to
   General Partner and affiliate (Note 3)                43,755         102,526
                                                     ----------      ----------

     Total liabilities                                1,973,352       2,888,383
                                                     ----------      ----------

Partners' equity (deficit) (Note 6):
  General partner                                        (8,737)         (4,861)
  Limited partner (25,000 units authorized,
   11,500 units issued and outstanding at
   December 31, 1996 and 1995)                        9,252,302       9,463,534
                                                     ----------      ----------

     Total partners' equity                           9,243,565       9,458,673
                                                     ----------      ----------

                                                   $ 11,216,917    $ 12,347,056
                                                     ==========      ==========



                 See accompanying notes to financial statements
                                      FS-1

<PAGE>


              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
                       (A California Limited Partnership)

                            STATEMENTS OF OPERATIONS

               For The Years Ended December 31, 1996 and 1995 and
               For The Period From July 26, 1994 (Date Operations
                         Commenced) To December 31, 1994



                                          1996           1995           1994
                                       ----------     ----------     ----------

Interest income                         $ 147,254      $ 160,888      $   1,613
                                        ---------      ---------      ---------

Operating expenses:
  Amortization                             24,865         16,056           --
  Partnership management fees (Note 3)     31,625         31,625           --
  Interest expense (Note 3)                  --           79,853         13,387
  Office                                   19,863          9,700             12
                                        ---------      ---------      ---------
                                           76,353        137,234         13,399
                                        ---------      ---------      ---------

Income (loss) from operations              70,901         23,654        (11,786)

Equity in (loss) income of limited
 partnerships (Note 2)                   (528,288)      (100,224)         2,212
                                        ---------      ---------      ---------

Net loss                                $(457,387)     $ (76,570)     $  (9,574)
                                        =========      =========      =========

Net loss allocable to:
  General partner                       $  (4,574)     $    (766)     $     (96)
                                        =========      =========      =========
  Limited partner                       $(452,813)     $ (75,804)     $  (9,478)
                                        =========      =========      =========
Net loss per weighted limited 
  partner units                         $  (39.38)     $   (8.68)     $  (10.84)
                                        =========      =========      =========
Outstanding weighted limited 
  partner units                            11,500          8,735            874
                                        =========      =========      =========





                 See accompanying notes to financial statements
                                      FS-2

<PAGE>


              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
                       (A California Limited Partnership)

                    STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

               For The Years Ended December 31, 1996 and 1995 and
               For The Period From July 26, 1994 (Date Operations
                         Commenced) To December 31, 1994



                                           General        Limited
                                           Partner        Partner          Total
                                           -------        -------          -----
Capital contribution from General
 Partner                              $       100    $      --      $       100

Capital contributions                        --        2,157,000      2,157,000

Capital issued for notes receivable
 (Note 6)                                    --         (145,500)      (145,500)

Offering expenses                          (3,019)      (298,833)      (301,852)

Net loss                                      (96)        (9,478)        (9,574)
                                       ----------     ----------     ----------

Equity (deficit) December 31, 1994         (3,015)     1,703,189      1,700,174

Capital contributions, net of
 discounts                                   --        8,942,050      8,942,050

Collection of notes receivable
 (Note 6)                                    --          145,500        145,500

Capital issued for notes receivable
 (Note 6)                                    --         (172,500)      (172,500)

Offering expenses                          (1,080)    (1,078,901)    (1,079,981)

Net loss                                     (766)       (75,804)       (76,570)
                                       ----------     ----------     ----------

Equity (deficit) December 31, 1995         (4,861)     9,463,534      9,458,673

Collection of notes receivable
 (Note 6)                                    --          172,500        172,500

Offering expenses                             698         69,081         69,779

Net loss                                   (4,574)      (452,813)      (457,387)
                                       ----------     ----------     ----------

Equity (deficit) December 31, 1996    $    (8,737)   $ 9,252,302    $ 9,243,565
                                       ==========     ==========     ==========



                 See accompanying notes to financial statements
                                      FS-3

<PAGE>


              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
                       (A California Limited Partnership)
<TABLE>
<CAPTION>

                                             STATEMENTS OF CASH FLOWS

                                For The Years Ended December 31, 1996 and 1995 and
                                For The Period From July 26, 1994 (Date Operations
                                          Commenced) To December 31, 1994



                                                           1996             1995             1994
                                                        ----------       ----------       ----------

<S>                                                   <C>              <C>              <C>
Cash flows provided by operating activities:
  Net loss                                            $  (457,387)     $   (76,570)     $    (9,574)
  Adjustments to reconcile net loss to
   net cash provided by operating activities:
    Amortization                                           24,865           16,056             --
    Equity in losses of limited partnerships              528,288          100,224           (2,212)
    Change in accrued interest payable                       --            (13,388)          13,388
                                                       ----------       ----------       ----------

  Net cash provided by operating activities                95,766           26,322            1,602
                                                       ----------       ----------       ----------

Cash flows used in investing activities:
  Investments in limited partnerships                  (1,341,247)      (2,501,693)      (2,600,000)
  Acquisition fees                                        (41,572)        (551,835)         (17,771)
  Loans receivable                                           --          1,098,608       (1,098,608)
  Other assets                                             12,912          (24,211)          (1,613)
                                                       ----------       ----------       ----------

Net cash used in investing activities                  (1,369,907)      (1,979,131)      (3,717,992)
                                                       ----------       ----------       ----------

Cash flows provided by financing activities:
  Payments to affiliates or general partner              (180,596)      (1,598,017)       1,263,862
  Capital contributions                                      --          9,173,250        1,753,400
  Offering costs                                           69,779       (1,079,981)         (16,101)
  (Repayments)Proceeds from loan payable                     --         (1,200,000)       1,200,000           
  Collection on notes receivable                          172,500             --               --
                                                       ----------       ----------       ----------

Net cash provided by financing activities                  61,683        5,295,252        4,201,161
                                                       ----------       ----------       ----------

Net change in cash                                     (1,212,458)       3,342,443          484,771

Cash and cash equivalents, beginning of
 period                                                 3,827,214          484,771             --
                                                       ----------       ----------          -------

Cash and cash equivalents, end of period              $ 2,614,756      $ 3,827,214      $   484,771
                                                       ==========       ==========       ==========

SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING
 AND INVESTING ACTIVITY:
  The Partnership has incurred but not paid -
    Capital contributions in connection with
     investments in limited partnerships              $   382,865      $ 2,201,217      $   584,640
                                                       ==========       ==========       ==========
    Acquisition fees and offering costs
     advanced by an affiliate                         $      --        $      --        $   436,741
                                                       ==========       ==========       ==========

  The Partnership has not received -
    Subscriptions in connection with
     capital contributions                            $      --        $   172,500      $   403,700
                                                       ==========       ==========       ==========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
  Interest paid                                       $      --        $    93,241      $      --
                                                       ==========       ==========          =======
  Taxes paid                                          $       800      $       800      $      --
                                                       ==========       ==========          =======
</TABLE>


                 See accompanying notes to financial statements
                                      FS-4

<PAGE>


              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
                       (A California Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS

               For The Years Ended December 31, 1996 and 1995 and
               For The Period From July 26, 1994 (Date Operations
                         Commenced) To December 31, 1994


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
---------------------------------------------------
Organization
------------
WNC California  Housing Tax Credits IV, L.P., Series 4 (the  "Partnership")  was
formed under the  California  Revised  Limited  Partnership  Act on February 16,
1994, and commenced  operations on July 26, 1994. The  Partnership was formed to
invest  primarily  in other  limited  partnerships  which  will own and  operate
multi-family housing complexes that will qualify for low income housing credits.

The  general  partner is WNC  California  Tax Credit  Partners,  IV,  L.P.  (the
"General Partner"), a California limited partnership.  WNC & Associates, Inc. is
the general partner of the General Partner.  Wilfred N. Cooper, Sr., through the
Cooper Revocable Trust,  owns 70% of the outstanding  stock of WNC & Associates,
Inc. John B. Lester,  Jr. is the original limited partner of the Partnership and
owns,  through the Lester Family Trust,  30% of the  outstanding  stock of WNC &
Associates, Inc.

The partnership  agreement  authorized the sale of up to 25,000 units of limited
partnership interest (Units) at $1,000 per Unit. The offering of Units concluded
in August 1995 at which time 11,500  Units  representing  subscriptions,  net of
discounts  of  $400,950  for  purchases  of 100 units or more,  in the amount of
$11,099,050  had  been  accepted.  The  General  Partner  has a 1%  interest  in
operating profits and losses,  taxable income and loss and in cash available for
distribution  from 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  Partner  has  received  a
subordinated disposition fee (as described in Note 3 below), any additional sale
or  refinancing  proceeds will be  distributed  90% to the limited  partners (in
proportion to their respective investments) and 10% to the General Partner.

The Partnership's  investments in limited  partnerships are subject to the risks
incident to the management and ownership of multifamily residential real estate,
and  include  the risks  that  neither  the  Partnership's  investments  nor the
apartment   complexes  owned  by  the  limited   partnerships  will  be  readily
marketable.  Additionally there can be no assurance that the Partnership will be
able to dispose of its  interest in the limited  partnerships.  The value of the
Partnership's  investments  will be subject to  changes  in  national  and local
economic conditions,  including unemployment  conditions,  which could adversely
impact vacancy levels, rental payment defaults and operating expenses.  This, in
turn,  could  substantially  increase  the  risk  of  operating  losses  for the
apartment  complexes  and the  Partnership.  The  apartment  complexes  could be
subject to loss through  foreclosure.  In addition,  each limited partnership is
subject to risks relating to  environmental  hazards which might be uninsurable.
Because the Partnership's ability to control its operations will depend on these
and other  factors  beyond the  control of the  General  Partner and the general
partners of the limited partnerships, there can be no assurance that Partnership
operations will be profitable or that the  anticipated  housing tax credits will
be available to limited partners.

Continued

                                      FS-5

<PAGE>


              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

               For The Years Ended December 31, 1996 and 1995 and
               For The Period From July 26, 1994 (Date Operations
                         Commenced) To December 31, 1994


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
--------------------------------------------------------------
Method of Accounting For Investment in Limited Partnership
----------------------------------------------------------
The  Partnership  accounts for its investment in limited  partnership  using the
equity method of  accounting,  whereby the  Partnership  adjusts its  investment
balance for its share of the limited partnership's results of operations and for
any distributions  received.  Costs incurred by the Partnership in acquiring the
investment in limited  partnership are capitalized as part of the investment and
amortized over 30 years (see Note 3).

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

Cash and Cash Equivalents
-------------------------
The  Partnership considers all  investments  with remaining  maturities of three
months  or less when  purchased  to be cash  equivalents.  The  Partnership  had
$1,835,700  and  $3,368,212 of cash  equivalents  at December 31, 1996 and 1995,
respectively.

Concentration of Credit Risk
----------------------------
As of December 31, 1996,  the  Partnership  maintained  cash balances at certain
financial institutions in excess of amounts insured by Federal agencies.

Offering Expenses
-----------------
Offering  expenses consist of underwriting  commissions,  legal fees,  printing,
filing and  recordation  fees, and other costs  incurred in connection  with the
selling of limited partnership interests in the Partnership. The General Partner
is  obligated  to pay all  offering  and  organization  costs in  excess  of 15%
(including sales commissions) of the total offering proceeds.  Offering expenses
are reflected as a reduction of limited  partners'  capital.  As of December 31,
1996, the Partnership had incurred offering and selling expenses of $757,584 and
$554,470,  respectively  (see  Note 3).  No  organizational  expenses  have been
incurred to date.

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.

Net Loss Per Limited Partner Units
----------------------------------
Net loss per limited partner unit is computed by dividing the limited  partners'
share of net loss by the weighted  number of limited  partner units  outstanding
during the period.


Continued

                                      FS-6

<PAGE>


              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

               For The Years Ended December 31, 1996 and 1995 and
               For The Period From July 26, 1994 (Date Operations
                         Commenced) To December 31, 1994


NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS
--------------------------------------------
At December 31, 1996, the Partnership had acquired limited partnership interests
in  nine  limited   partnerships  which  own  and  operate  apartment  complexes
consisting  of 298  apartment  units.  The  accounting  policies  of the limited
partnerships are consistent with the Partnership.  The Partnership, as a limited
partner, is generally entitled to 99% of the operating profits and losses of the
limited partnership.

The  Partnership's  investment  in  the  limited  partnership  as  shown  in the
accompanying  balance sheet as of December 31, 1996 and 1995,  is  approximately
$2,388,000 and $3,410,000,  respectively,  greater than the Partnership's equity
as shown in the limited partnership's  financial statements.  This difference is
due to  acquisition  and  selection  costs  related  to the  acquisition  of the
investments that have been capitalized in the Partnership's  investment  account
and will be amortized  over 30 years and capital  contributions  accrued but not
paid (Note 3).

Following  is a summary of the equity  method  activity  of the  investments  in
limited partnerships for the years ended December 31:

                                                        1996             1995
                                                     ----------       ----------

Investments, beginning of year                     $ 8,494,018      $ 3,355,553

Total capital contributions made to and
 accrued with respect to limited partnerships          484,987        4,702,910

Capitalized acquisition fees and costs
 (see Note 3)                                           41,572          551,835

Amortization of acquisition fees and costs             (24,865)         (16,056)

Equity in losses of limited partnerships              (528,288)        (100,224)
                                                    ----------       ----------

Investments, end of year                           $ 8,467,424      $ 8,494,018
                                                    ==========       ==========


Continued

                                      FS-7

<PAGE>


              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

               For The Years Ended December 31, 1996 and 1995 and
               For The Period From July 26, 1994 (Date Operations
                         Commenced) To December 31, 1994


NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued
-------------------------------------------------------
Approximate  combined  condensed  financial   information  from  the  individual
financial  statements  of the limited  partnerships  as of December 31, 1996 and
1995,  and for the years then ended and the for the period  ended  December  31,
1994 is as follows:

                        COMBINED CONDENSED BALANCE SHEETS
                        ---------------------------------
ASSETS                                                  1996             1995
                                                     ----------       ----------

Buildings and improvements, net of
 accumulated depreciation of $605,000
 and $142,000 for 1996 and 1995                     $15,138,000      $ 9,880,000
Land                                                    911,000          800,000
Construction in progress                                 37,000        1,141,000
Other assets                                            808,000        1,100,000
                                                     ----------       ----------

                                                    $16,894,000      $12,921,000
                                                     ==========       ==========

LIABILITIES AND PARTNERS' EQUITY

Liabilities -
  Construction loan payable                         $ 8,286,000      $ 5,045,000
  Other liabilities (including
   payables to affiliates of
   $1,288,000 and $1,060,000 for
   1996 and 1995, respectively)                       2,491,000        2,760,000
                                                     ----------       ----------
     Total liabilities                               10,777,000        7,805,000
                                                     ----------       ----------

Partners' equity:
  WNC California Housing Tax Credits
   IV, L.P., Series 4                                 6,079,000        5,084,000
  Other partners                                         38,000           32,000
                                                     ----------       ----------
     Total partners' equity                           6,117,000        5,116,000
                                                     ----------       ----------

                                                    $16,894,000      $12,921,000
                                                     ==========       ==========

                   COMBINED CONDENSED STATEMENTS OF OPERATIONS
                   -------------------------------------------
                                           1996           1995           1994
                                        ----------     ----------     ----------

Total revenues                         $   842,000    $   217,000    $     2,000
                                        ----------     ----------     ----------

Expenses:
  Operating expenses                       521,000        104,000           --
  Interest expense                         392,000         72,000           --
  Depreciation and amortization            463,000        142,000           --
                                        ----------     ----------        -------

     Total expenses                      1,376,000        318,000           --
                                        ----------     ----------        -------

Net loss                               $  (534,000)   $  (101,000)   $     2,000
                                        ==========     ==========     ==========

Net loss allocable to the
 Partnership                           $  (528,000)   $  (100,000)   $     2,000
                                        ==========     ==========     ==========


Continued

                                      FS-8

<PAGE>


              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

               For The Years Ended December 31, 1996 and 1995 and
               For The Period From July 26, 1994 (Date Operations
                         Commenced) To December 31, 1994


NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued
-------------------------------------------------------
Certain limited  partnerships  have incurred  operating  losses and have working
capital deficiencies.  In the event these limited partnerships continue to incur
operating  losses,  additional  capital  contributions by the Partnership may be
required to sustain the operations of such limited  partnerships.  If additional
capital  contributions  are not made when they are required,  the  Partnership's
investment in certain of such limited partnerships could be impaired.

NOTE 3 - RELATED PARTY TRANSACTIONS
-----------------------------------
Receivables  from  affiliates   consists  primarily  of  amounts  due  from  WNC
California  Housing Tax Credits IV, L.P.,  Series 5 related to the allocation of
offering  expenses  incurred,  as  defined  in  the  Partnership  Agreement.  In
connection  with such  allocation,  offering  expenses  were  reduced by $69,779
during the year ended December 31, 1996.

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

          Acquisition  fees  of 7% of  the  gross  proceeds  from  the  sale  of
          Partnership  units as compensation for services rendered in connection
          with the acquisition of limited partnerships.  As of December 31, 1996
          and 1995,  acquisition  fees of $654,580 and  $640,930,  respectively,
          have been  incurred  and included in limited  partnership  investment.
          Accumulated  amortization  amounted  to  $35,499  and  $13,792  as  of
          December 31, 1996 and 1995, respectively. No amortization was recorded
          during 1994.

          Reimbursement of costs incurred by an affiliate of the General Partner
          in connection  with the  acquisition  of limited  partnerships.  These
          reimbursements  will not  exceed  1.0% of the  gross  proceeds.  As of
          December 31, 1996 and 1995, the Partnership  has incurred  acquisition
          costs of $107,538 and $79,606, respectively,  which have been included
          in limited partnership investment. Accumulated amortization was $5,423
          for 1996 and was  insignificant for 1995. No amortization was recorded
          during 1994.

An annual  asset  management  fee equal to the greater  amount of (i) $2,000 for
each apartment  complex,  or (ii) 0.275% of gross proceeds.  In either case, the
fee will be  decreased or  increased  annually  based on changes to the Consumer
Price Index.  However,  in no event will the maximum  amount  exceed 0.2% of the
invested assets (defined as the  Partnership's  capital  contributions  plus its
allocable  percentage of the mortgage debt encumbering the apartment  complexes)
of the limited  partnerships.  Management fees of $31,625 were incurred for 1996
and 1995.  No management  fees were  incurred for the period ended  December 31,
1994.  Management  fees of $45,000 were paid during  1996.  No amounts were paid
during 1995 and 1994.

          A subordinated  disposition  fee in an amount equal to 1% of the sales
          price of real estate sold.  Payment of this fee is subordinated to the
          limited  partners  receiving a return on investment (as defined in the
          Partnership Agreement) and is payable only if services are rendered in
          the sales effort.


Continued

                                      FS-9

<PAGE>


              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
                       (A California Limited Partnership)
                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

               For The Years Ended December 31, 1996 and 1995 and
               For The Period From July 26, 1994 (Date Operations
                         Commenced) To December 31, 1994


NOTE 3 - RELATED PARTY TRANSACTIONS, continued
----------------------------------------------
Accrued fees and advances due the General  Partner and affiliate are  summarized
as follows:

                                                          1996           1995
                                                       ----------     ----------

Acquisition fees                                         $ 23,993       $ 14,321
Advances made for acquisition costs,
 organizational, offering and selling
 expenses                                                   1,512         56,580
Asset management fees                                      18,250         31,625
                                                       ----------     ----------

                                                         $ 43,755       $102,526
                                                       ==========     ==========

Amounts  advanced  to acquire  limited  partnerships  bore  interest at the rate
incurred by the  affiliate  on its line of credit which has ranged from 9.75% to
10.5% per annum.  Interest  incurred on these  advances  during the period ended
December 31, 1995 amounted to $38,174.

NOTE 4 - PAYABLE TO LIMITED PARTNERSHIPS
----------------------------------------
Payable  to limited  partnerships  represents  amounts  which are due at various
times based on conditions specified in the limited partnership agreements. These
contributions are non-interest  bearing, are payable in installments and are due
upon  the  limited  partnership  achieving  certain  operating  and  development
benchmarks (generally within two years of the Partnership's initial investment).

NOTE 5 - INCOME TAXES
---------------------
No provision  for income taxes has been recorded in the  accompanying  financial
statements  since all items of taxable  income and loss will be allocated to the
partners for inclusion in their respective income tax returns.

NOTE 6 - SUBSCRIPTIONS AND INVESTOR NOTES RECEIVABLE
----------------------------------------------------
At December 31, 1995, the Partnership had accepted  $172,500 in promissory notes
from limited partners.  During 1995,  limited partners who subscribed for ten or
more units of limited  partnership  interest ($10,000) could elect to pay 50% of
the  purchase  price in cash  upon  subscription  and the  remaining  50% by the
delivery of a promissory note payable,  together with interest at the rate of 8%
per annum,  due no later than 13 months after the  subscription  date. Since the
promissory  notes  had not  been  collected  as of the date of  issuance  of the
financial  statements,  their  aggregate  unpaid  balance  was  reflected  as  a
reduction of partners'  equity in the  accompanying  financial  statements.  The
promissory  notes  accepted during 1995 amounting to $172,500 and were collected
during 1996;  notes  accepted  during 1994  amounting to $145,500 were collected
during 1995.













                                      FS-10


<PAGE>


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

None.


Item 10.  Directors and Executive Officers of the Registrant

Directors of Registrant

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

Directors and Executive Officers of WNC & Associates, Inc.

WILFRED  N.  COOPER,  SR.,  age 65,  has been the  principal  shareholder  and a
Director of WNC & ASSOCIATES,  INC. since its  organization  in 1971, of SHELTER
RESOURCE  CORPORATION since its organization in 1981 and of WNC RESOURCES,  INC.
from its organization in 1988 through its acquisition by WNC & ASSOCIATES,  INC.
in 1991,  serving  as  President  of  those  companies  until  1992 and as Chief
Executive Officer since 1992, and has been a Director of WNC CAPITAL CORPORATION
since its organization. He is also a general partner with WNC & ASSOCIATES, INC.
in WNC FINANCIAL GROUP,  L.P. and WNC TAX CREDIT PARTNERS,  L.P. During 1970 and
1971  he  was  a  principal  of  Creative  Equity  Development  Corporation,   a
predecessor of WNC & ASSOCIATES,  INC., and of Creative  Equity  Corporation,  a
real estate investment firm. For 12 years prior to that, Mr. Cooper was employed
by Rockwell  International  Corporation,  last serving as its manager of housing
and urban  developments.  Previously,  he had  responsibility  for new  business
development including factory-built housing evaluation and project management in
urban  planning and  development.  Mr.  Cooper is a Director and a member of the
Executive  Committee of the National  Association of Home Builders  (NAHB) and a
Chairman of the NAHB's Rural Housing Council, a Director of the National Housing
Conference,  a Director of the Affordable  Housing Tax Credit Coalition,  a past
President  of  the  Rural  Builders  Council  of  California  (RBCC)  and a past
President of Southern  California  Chapter II of the Real Estate Syndication and
Securities  Institute (RESSI) of the National Association of Realtors (NAR). Mr.
Cooper graduated from Pomona College in 1956 with a Bachelor of Arts degree.

JOHN B. LESTER, JR., age 62, has been a shareholder, a Director and Secretary of
WNC & ASSOCIATES,  INC. since 1986,  Executive Vice President from 1986 to 1992,
and President and Chief Operating Officer since 1992, and has been a Director of
WNC CAPITAL CORPORATION since its organization. He was a shareholder,  Executive
Vice  President,  Secretary  and a Director  of WNC  RESOURCES,  INC.  from 1988
through its acquisition by WNC & ASSOCIATES,  INC. in 1991. From 1973 to 1986 he
was Chairman of the Board and Vice  President or President of E & L  Associates,
Inc., a provider of engineering  and  construction  services to the oil refinery
and petrochemical industries which he co-founded in 1973. Mr. Lester is a former
Director of the Los Angeles  Chapter of the  Associated  General  Contractors of
California.  His  responsibilities  at WNC & ASSOCIATES,  INC.  include property
acquisitions and company operations. Mr. Lester graduated from the University of
Southern  California  in 1956 with a Bachelor  of Science  degree in  Mechanical
Engineering.


<PAGE>


DAVID N. SHAFER,  age 44, has been a Senior Vice  President of WNC & ASSOCIATES,
INC. since 1992 and General  Counsel since 1990, and served as Asset  Management
Director from 1990 to 1992.  Previously he was employed as an associate attorney
by the law firms of Morinello,  Barone,  Holden & Nardulli from 1987 until 1990,
Frye,  Brandt & Lyster  from 1986 to 1987 and Simon  and  Sheridan  from 1984 to
1986.  Mr.  Shafer is a Director and President of RBCC, a member of NAHB's Rural
Housing Council, a past President of Southern  California Chapter II of RESSI, a
past Director of the Council of Affordable and Rural Housing and Development and
a  member  of the  State  Bar of  California.  Mr.  Shafer  graduated  from  the
University  of  California  at Santa  Barbara  in 1978 with a  Bachelor  of Arts
degree,  from the New England  School of Law in 1983 with a Juris Doctor  degree
and from the  University  of San Diego in 1986  with a Master  of Law  degree in
Taxation.

WILFRED N. COOPER,  JR.,  age 33, has been  employed by WNC &  ASSOCIATES,  INC.
since 1988 and has been a Senior Vice  President or Vice  President  since 1992.
Mr.  Cooper heads the  Acquisition  Origination  department  at WNC and has been
President of and a registered principal with WNC CAPITAL  CORPORATION,  a member
firm of the NASD,  since its  organization.  Previously,  he was  employed  as a
government  affairs assistant by Honda North America from 1987 to 1988, and as a
legal assistant with respect to Federal  legislative  and regulatory  matters by
the law firm of Schwartz,  Woods and Miller from 1986 to 1987.  Mr.  Cooper is a
member of NAHB's Rural Housing  Council and serves as Chairman of its Membership
Committee.  Mr.  Cooper  graduated  from The American  University in 1985 with a
Bachelor of Arts degree.

THEODORE M. PAUL, age 40, has been Vice President - Finance of WNC & ASSOCIATES,
INC. since 1992 and Chief  Financial  Officer since 1990.  Previously,  he was a
Vice President and Chief Financial Officer of National  Partnership  Investments
Corp.,  a sponsor and general  partner of syndicated  partnerships  investing in
affordable rental housing  qualified for tax credits,  from 1986 until 1990, and
was  employed as an associate  by the  accounting  firms of Laventhol & Horwath,
during 1985,  and Mann & Pollack  Accountants,  from 1979 to 1984. Mr. Paul is a
member  of the  California  Society  of  Certified  Public  Accountants  and the
American Institute of Certified Public Accountants.  His responsibilities at WNC
& ASSOCIATES,  INC. include supervision of investor  partnership  accounting and
tax  reporting  matters and  monitoring  the  financial  condition  of the Local
Limited  Partnerships in which the Partnership  will invest.  Mr. Paul graduated
from the University of Illinois in 1978 with a Bachelor of Science degree and is
a Certified Public Accountant in the State of California.

THOMAS J. RIHA,  age 41, has been Vice  President  - Asset  Management  of WNC &
ASSOCIATES, INC. since 1994. He has more than 17 years' experience in commercial
and multi-family real estate investment and management. Previously, Mr. Riha was
employed by Trust  Realty  Advisor,  a real estate  acquisition  and  management
company,  from 1988 to 1994,  last serving as Vice  President - Operations.  His
responsibilities at WNC & ASSOCIATES, INC. include monitoring the operations and
financial  performance of, and regulatory  compliance by,  properties in the WNC
portfolio. Mr. Riha graduated from the California State University, Fullerton in
1977 with a Bachelor of Arts degree (cum laude) in Business  Administration with
a concentration in Accounting and is a Certified Public  Accountant in the State
of  California  and a member  of the  California  Society  of  Certified  Public
Accountants and the American Institute of Certified Public Accountants.


<PAGE>


SY GARBAN,  age 50, has 19 years'  experience in the real estate  securities and
syndication industry. He has been associated with WNC & ASSOCIATES,  INC., since
1989,  serving as National Sales  Director  through 1992 and as Vice President -
National Sales since 1992.  Previously,  he was employed by MRW,  Inc.,  Newport
Beach, California from 1980 to 1989, a real estate acquisition,  development and
management  firm.  Mr. Garban is a member of the  International  Association  of
Financial Planners.  Mr. Garban graduated from Michigan State University in 1967
with a Bachelor of Science degree in Business Administration.

CARL FARRINGTON,  age 50, has been associated with WNC & ASSOCIATES,  INC. since
1993,  currently  serving as Director - Originations  since 1994. Mr. Farrington
has more than 12 years'  experience  in finance  and real  estate  acquisitions.
Previously,  he served as Acquisitions Director for The Arcand Company from 1991
to 1993, and as Treasurer and Director of Finance and Administrator for Polytron
Corporation  from 1988 to 1991.  Mr.  Farrington is a member and Director of the
Council  of  Affordable  and  Rural  Housing  and  Development.  Mr.  Farrington
graduated from Yale  University  with a Bachelor of Arts degree in 1966 and from
Dartmouth College with a Master of Business Administration in 1970.

MICHELE M. TAYLOR,  age 41, has been  employed by WNC & ASSOCIATES,  INC.  since
1986,  serving as a paralegal and office manager,  and currently is the Investor
Services  Director.  Previously she was  self-employed  between 1982 and 1985 in
non-financial  services  activities  and from 1978 to 1981 she was employed as a
paralegal by a law firm which  specialized  in real estate  limited  partnership
transactions.  Ms. Taylor graduated from the University of California, Irvine in
1976 with a Bachelor of Arts degree.

THERESA I. CHAMPANY, age 38, has been employed by WNC & ASSOCIATES,  INC., since
1989 and currently is the Marketing Services Director and a registered principal
with WNC  CAPITAL  CORPORATION.  Previously,  she was  employed  as  Manager  of
Marketing  Services  by August  Financial  Corporation  from 1986 to 1989 and as
office manager and Assistant to the Vice  President of Real Estate  Syndications
by  McCombs  Securities  Co.,  Inc.  from 1979 to 1986.  Ms.  Champany  attended
Manchester (Conn.) Community College from 1976 to 1978.

KAY L.  COOPER,  age 59, has been an officer and  Director of WNC &  ASSOCIATES,
INC. since 1971 and of WNC RESOURCES,  INC. from 1988 through its acquisition by
WNC & ASSOCIATES, INC. in 1991. Mrs. Cooper has also been the sole proprietor of
Agate 108, a manufacturer and retailer of home accessory  products,  since 1975.
She is the wife of Wilfred N. Cooper,  Sr., the mother of Wilfred N. Cooper, Jr.
and the sister of John B. Lester,  Jr. Mrs. Cooper graduated from the University
of Southern California in 1958 with a Bachelor of Science degree.

   

<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 Associates for the following fees:

(a)  Acquisition  fees in an  amount  equal to 7% of the gross  proceeds  of the
Partnership's  offering  ("Gross  Proceeds")  allocable  to  each  of the  Local
Partnerships.  Through December 31, 1996, acquisition fees of $654,000 have been
incurred.

(b) An annual asset management fee in an amount equal to 0.5% of invested assets
(the sum of the Partnership's  Investment in Local Limited Partnership Interests
and the Partnership's allocable share of the amount of the mortgage loans on and
other debts  related to, the  Apartment  Complexes  owned by such Local  Limited
Partnerships.).  Fees of $31,625,  $31,625, and $0 were incurred for 1996, 1995,
and 1994 respectively.

c) A  subordinated  disposition  fee in an amount  equal to 1% of the sale price
received in connection  with the sale or disposition of an Apartment  Complex or
Local  Limited  Partnership  Interest.  Subordinated  disposition  fees  will be
subordinated to the prior return of the Limited Partners' capital  contributions
and  payment of the Return on  Investment  to the  Limited  Parners.  "Return on
Investment"  means an annual,  cumulative  but not  compounded,  "return" to the
Limited  Partners  (including  Low Income  Housing  Credits) as a class on their
adjusted capital  contributions  commencing for each Limited Partner on the last
day  of  the  calendar  quarter  during  which  the  Limited  Partner's  capital
contribution is received by the Partnership,  calculated at the following rates:
(i)  14%  through  December  31,  2005,  and  (ii)  6% for  the  balance  of the
Partnerships term. No disposition fees have been paid.

(d) The General Partner was allocated federal and California Housing Tax Credits
for 1996 and 1995 as follows:

                      1996           1995   
                      ----           ----   
Federal            $ 7,476        $ 1,803   
California           8,086          6,131   
                     -----         ------   
                   $15,562        $ 7,934   
                   =======        =======   




<PAGE>


Item 12.  Security Ownership of Certain Beneficial Owners and Management

(a) Security Ownership of Certain Beneficial Owners

<TABLE>
<S>                            <C>                           <C>                            <C>
                               Name and Address              Amount and
Title of Class                 of Beneficial Owner           Nature of                      Percent
                                                             Beneficial Owner               of Class
------------------------------------------------------------------------------------------------------------------------
Units of Limited Partnership     Enova Financial , Inc.        5,096 units                    44.3%
Interests                        P.O. Box 126943
                                 San Diego, CA  92113-6943
</TABLE>

The  above is only  person  known to own  beneficially  in  excess  of 5% of the
outstanding Limited Partnership Interests.


(b) Security Ownership of Management

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

(c) Changes in Control

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

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


Item 13.  Certain Relationships and Related Transactions

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


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

Financial Statements:
Report of independent public accountants.


<PAGE>


Balance sheet as of December 31, 1996 and 1995.

Statements of Operations for the years ended December 31, 1996, 1995, and 1994.

Statement of Partners'  Equity for the years ended December 31, 1996,  1995, and
1994.

Statements of Cash Flows for the years ended December 31, 1996, 1995, and 1994.

Notes to Financial Statements.

Financial Statement Schedules:
N/A
(3)      Articles  of   incorporation   and  by-laws:   The  registrant  is  not
         incorporated.  The Partnership  Agreement  included as Exhibit B to the
         Prospectus,  and  the  First  Amendment  to the  Partnership  Agreement
         included in the Supplement dated April 30, 1996 to Prospectus,  each of
         which is included in Post-Effective No. 10 to Registration Statement on
         Form S-11 dated May 3, 1996 are  incorporated  herein by  reference  as
         Exhibit 3.

(10) Material contracts:

10.1 Amended and Restated  Agreement of Limited  Partnership of Colonial Village
Auburn  filed as  exhibit  10.1 to Form 8-K  dated  October  28,  1994 is hereby
incorporated herein by reference as exhibit 10.1.

10.2 Amended and Restated  Agreement of Limited  Partnership of Sycamore  Hills,
L.P.  filed  as  exhibit  10.1 to Form  8-K  dated  January  9,  1995 is  hereby
incorporated herein by reference as exhibit 10.2.

10.3  Amended and Restated  Agreement of Limited  Partnership  of  Maharlika,  a
California  Limited  Partnership filed as exhibit 10.1 to Form 8-K dated May 31,
1995 is hereby incorporated herein by reference as exhibit 10.3.

10.4  Amended  and  Restated  Agreement  of Limited  Partnership  of Wills Point
Crossing,  L.P.  filed as exhibit 10.1 to Form 8-K dated July 26, 1995 is hereby
incorporated herein by reference as exhibit 10.4.

10.5 Amended and Restated Agreement of Limited  Partnership of Rancheria Village
Apartments,  a California Limited  Partnership filed as exhibit 10.1 to Form 8-K
dated September 26, 1995 is hereby  incorporated  herein by reference as exhibit
10.5.

10.6 Amended and Restated Agreement of Limited  Partnership of Woodlake Valencia
House, a California Limited Partnership filed as exhibit 10.7 to Form 10-K dated
December 31, 1995 is hereby incorporated herein by reference as exhibit 10.6.

10.7 Amended and Restated Agreement of Limited  Partnership of Pawnee Associates
I, L.P.  filed as exhibit  10.8 to Form 10-K dated  December  31, 1995 is hereby
incorporated herein by reference as exhibit 10.7.
 

10.8  Amended  and  Restated  Agreement  of Limited  Partnership  of  Eagleville
Associates I, L.P. filed as exhibit 10.9 to Form 10-K dated December 31, 1995 is
hereby incorporated herein by reference as exhibit 10.8.



Reports on Form 8-K

No reports on form 8-K were filed during the fourth  quarter ended  December 31,
1996.



<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 IV, L.P., Series 4

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


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


By:   /s/    John B. Lester,  Jr.
   _____________________________________________________
John B. Lester,  Jr. President and Chief Opertating Officer of WNC & Associates,
Inc.

Date: May 12, 1997

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

Date: May 12, 1997




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

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

Date: May 12, 1997

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

Date: May 12, 1997