FORM 10-K/A
                                 AMENDMENT NO. 1

                       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, 1998

                                       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

California                                                          33-0531301
(State or other jurisdiction of                               (I.R.S. Employer
incorporation or organization)                              Identification No.)


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

                                 (714) 662-5565

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

                                      NONE

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

                      UNITS OF LIMITED PARTNERSHIP INTEREST

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

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

                                       1

<PAGE>


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

                                  INAPPLICABLE


                       DOCUMENTS INCORPORATED BY REFERENCE

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

                                      NONE



















                                       2


<PAGE>
PART I.

Item 1.  Business

Organization

WNC  California  Housing  Tax  Credits  IV,  Series 4 (the  "Partnership")  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 limited partnerships or limited liability companies ("Local Limited
Partnerships")  which own  multifamily  housing  complexes that are eligible for
Federal and in certain cases, California income tax credits ("Low Income Housing
Credit").

The general  partner of the  Partnership  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").  Wilfred N. Cooper,
Sr., through the Cooper Revocable Trust,  owns 66.8% of the outstanding stock of
Associates.  John  B.  Lester,  Jr.  was the  original  limited  partner  of the
Partnership and owns,  through the Lester Family Trust, 28.6% of the outstanding
stock of  Associates.  The business of the  Partnership  is conducted  primarily
through Associates, as the Partnership has no employees of its own.

Pursuant to a  registration  statement  filed with the  Securities  and Exchange
Commission  on July 26, 1994,  the  Partnership  commenced a public  offering of
25,000 Units of Limited Partnership  Interest ("Units") at a price of $1,000 per
Unit.  As of the close of the public  offering  on August 10,  1995,  a total of
11,500 Units  representing  approximately  $11,099,000 had been sold. Holders of
Units are referred to herein as "Limited Partners."

Description of Business

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

In general,  in order to avoid  recapture  of Low Income  Housing  Credits,  the
Partnership  does not  expect  that it will  dispose of its  interests  in Local
Limited Partnerships ("Local Limited Partnership Interests") or approve the sale
by any Local Limited  Partnership of its Housing Complex prior to the end of the
applicable  Compliance  Period.  Because  of  (i)  the  nature  of  the  Housing
Complexes,  (ii) the  difficulty of predicting  the resale market for low-income
housing  15 or more years in the  future,  and (iii) the  ability of  government
lenders to  disapprove  of transfer,  it is not possible at this time to predict
whether the liquidation of the  Partnership's  assets and the disposition of the
proceeds,  if any, in  accordance  with the  Partnership's  Agreement of Limited
Partnership,   as  amended  by  Supplements  to  the  Prospectus   thereto  (the
"Partnership Agreement"), will be able to be accomplished promptly at the end of
the 15-year period. If a Local Limited Partnership is unable to sell its Housing
Complex,  it is  anticipated  that the local  general  partner  ("Local  General
Partner")  will either  continue to operate  such  Housing  Complex or take such

                                       3
<PAGE>

other actions as the Local General  Partner  believes to be in the best interest
of the Local Limited Partnership.  Notwithstanding the preceding,  circumstances
beyond the  control of the General  Partner or the Local  General  Partners  may
occur during the  Compliance  Period,  which would  require the  Partnership  to
approve the disposition of an Housing Complex prior to the end thereof, possibly
resulting in recapture of Low Income Housing Credits.

As of December  31, 1998,  the  Partnership  had invested in nine Local  Limited
Partnerships.  Each of these Local Limited  Partnerships  owns a Housing Complex
that is eligible for the federal Low Income Housing Credit and four of them were
eligible for the California Low Income  Housing  Credits.  Certain Local Limited
Partnerships  may  also  benefit  from  government  programs  promoting  low- or
moderate-income housing.

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

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

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

Item 2.  Properties

Through its  investment  in Local Limited  Partnerships  the  Partnership  holds
limited partnership interests in Housing Complexes. The following table reflects
the status of the nine  Housing  Complexes  as of December  31, 1998 and for the
periods indicated.

                                       4

<PAGE>

<TABLE>
<CAPTION>

                                        ---------------------------------------------------------------------------
                                                                   As of December 31, 1998
                                        ---------------------------------------------------------------------------

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

Chadron Apartments  Chadron,    Douglas E. Hiner           16   94%    $  483,000  $     391,000     $    1,029,000      $  800,000
I, L.P.             Nebraska


Colonial Village    Auburn,     S.P. Thomas Company
Auburn              California  of Northern California
                                and Project Go, Inc.,
                                a California Non-profit
                                Corporation                56   98%     2,979,000      2,979,000          4,115,000       2,087,000

Eagleville          Eagleville, Kenneth M. Vitor and
Associates I, L.P.  Missouri    Joseph A.Shepard           16  100%        79,000         79,000            145,000         356,000

Maharlika, Ltd.     Stockton,   Daniels C. Logue and
                    California  Cyrus Youssefi             69   96%     1,524,000      1,524,000          1,958,000       1,565,000

Pawnee Associates   Pawnee,     Kenneth M. Vitor and
I, L.P.             Illinois    Joseph A.Shepard           20   85%       130,000        130,000            239,000         539,000

Rancheria Village   Santa       Community Housing Program,
Apartments, a       Barbara,    Inc., Richard A Bialosky,
California Limited  California  Detlev Peikert, Francis C.
Partnership                     Thompson, Peter Koelsch,
                                and Real Estate Concepts,
                                Inc.                       14  100%       950,000        950,000          1,335,000         995,000

Sycamore Hills L.P. Salem,      Larry A. Swank and Lance
                    Indiana     A. Swank                   24  100%       185,000        185,000            346,000         763,000

Wills Point         Wills       1600 Capital Company,
Crossing, L.P.      Point,      Inc.                       36   97%       234,000        234,000            395,000         984,000
                    Texas

Woodlake Valencia   Woodlake,   Philip R. Hammond, Jr.
Partners            California  and Diane M. Hammond       47   89%     1,798,000      1,798,000          2,522,000         952,000
                                                          ---  ---      ---------      ---------         ----------       ---------

                                                          298   95%  $  8,362,000  $   8,270,000     $   12,084,000    $  9,041,000
                                                          ===  ===      =========      =========         ==========       =========

</TABLE>
                                       5


<PAGE>



                               -------------------------------------------
                                   For the year ended December 31, 1998
                               -------------------------------------------
                                                                  Low Income
                                                                  Housing Credit
                                                                  Allocated to
Partnership Name                Rental Income          Net loss   Partnership
--------------------------------------------------------------------------------


Chadron Apartments I, L.P.       $    49,000        $   (57,000)         99%


Colonial Village Auburn              377,000           (130,000)         99%

Eagleville Associates I, L.P.         46,000            (12,000)         99%

Maharlika, Ltd.                      110,000           (253,000)         99%

Pawnee Associates I, L.P.             65,000            (22,000)         99%

Rancheria Village Apartments, a                                          99%
California Limited Partnership       106,000            (47,000)

Sycamore Hills L.P.                   85,000            (13,000)         99%

Wills Point Crossing, L.P.           103,000            (14,000)         99%

Woodlake Valencia Partners            84,000           (210,000)         99%
                                  ----------          ---------
                                 $ 1,025,000        $  (758,000)
                                  ==========          =========











                                       6

<PAGE>
Item 3.  Legal Proceedings

NONE

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

NONE

PART II.

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

Item 5a.

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

(b)  At December 31, 1998, there were 429 Limited Partners.

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

(d)  No unregistered securities were sold by the Partnership during 1998.

Item 5b.

NOT APPLICABLE

Item 6. Selected Financial Data

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

                                   1998              1997             1996              1995             1994
                                   ----              ----             ----              ----             ----
ASSETS
<S>                          <C>              <C>             <C>                <C>               <C>
Cash and cash equivalents    $   760,343      $  1,147,906    $    2,614,756     $  3,827,214      $    484,771
Receivables from affilates             -            31,646           121,825                -                 -
Subscriptions receivable               -                 -                 -                -           258,200
Loans receivable                 201,611                 -                 -                -         1,098,608
Investments in limited
    partnerships, net          6,845,203         7,622,211         8,467,424        8,494,018         3,355,553
Other assets                           -                 -            12,912           25,824             1,613
                               ---------         ---------        ----------       ----------         ---------
                             $ 7,807,157      $  8,801,763     $  11,216,917     $ 12,347,056       $ 5,198,745
                               =========         =========        ==========       ==========         =========

LIABILITIES
Loan payable                           -                 -                 -                -         1,200,000
Accrued interest payable               -                 -                 -                -            13,388
Payable to limited
    partnerships                  91,746           363,634         1,929,597        2,785,857           584,640
Accrued fees and expenses
    due to general partner
    and affiliates                62,779             6,445            43,755          102,526         1,700,543

PARTNERS' EQUITY               7,652,632         8,431,684         9,243,565        9,458,673         1,700,174
                               ---------         ---------        ----------       ----------         ---------
                             $ 7,807,157      $  8,801,763      $ 11,216,917     $ 12,347,056       $ 5,198,745
                               =========         =========        ==========       ==========         =========

</TABLE>

                                      7

<PAGE>

Selected results of operations,  cash and other  information for the Partnership
is as follows for the years ended December 31:
<TABLE>
<CAPTION>

                                         1998              1997              1996             1995              1994
                                         ----              ----              ----             ----              ----
<S>                                <C>              <C>                <C>               <C>              <C>
Income (loss) from operations      $  (28,938)      $    (5,242)       $    70,901       $   23,654       $  (11,786)
Equity in income (loss) from
    limited partnerships             (750,114)         (806,639)          (528,288)        (100,224)           2,212
                                    ---------         ---------          ---------        ---------          -------
Net loss                           $ (779,052)      $  (811,881)       $  (457,387)      $  (76,570)      $   (9,574)
                                    =========         =========          =========        =========          =======

Net loss allocated to:
     General Partner               $   (7,791)      $    (8,119)       $    (4,574)      $     (766)      $      (96)
                                    =========         =========          =========        =========          =======
     Limited Partners              $ (771,261)      $  (803,762)       $  (452,813)      $  (75,804)      $   (9,478)
                                    =========         =========          =========        =========          =======

Net loss per limited partner
    unit                           $   (67.07)      $    (69.89)       $    (39.38)      $    (8.68)      $   (10.84)
                                    =========         =========          =========        =========          =======
Outstanding weighted limited
    partner units                      11,500            11,500             11,500            8,735              874
                                    =========         =========          =========        =========          =======
<CAPTION>

                                         1998              1997              1996             1995              1994
                                         ----              ----              ----             ----              ----
Net cash provided by
(used in):
<S>                                <C>              <C>                <C>             <C>              <C>
     Operating activities          $   84,603       $   110,356        $    95,766     $     26,322     $      1,602
     Investing activities            (472,166)       (1,539,896)        (1,369,907)      (1,979,131)      (3,717,992)
     Financing activities                   -           (37,310)            61,683        5,295,252        4,201,161
                                    ---------         ---------          ---------        ---------        ---------
Net change in cash and cash
    equivalents                      (387,563)       (1,466,850)        (1,212,458)       3,342,443          484,771
Cash and cash equivalents,
    beginning of period             1,147,906         2,614,756          3,827,214          484,771                -
                                    ---------         ---------          ---------        ---------        ---------
Cash and cash equivalents,
    end of period                  $  760,343       $ 1,147,906        $ 2,614,756     $  3,827,214      $   484,771
                                    =========         =========          =========        =========          =======

<CAPTION>
Low Income Housing  Credit per limited  partner unit was as follows for the year
ended December 31:

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

<S>                                <C>                <C>               <C>            <C>                <C>
Federal                            $       99         $      86         $      64      $        21        $        -
State                                      67                91                70               70                 -
                                         ----              ----              ----             ----              ----
Total                              $      166         $     177         $     134      $        91        $        -
                                         ====              ====              ====             ====              ====

</TABLE>

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

Financial Condition

The Partnership's assets at December 31, 1998 consisted primarily of $760,000 in
cash, $202,000 in loans receivable,  and aggregate investments in the nine Local
Limited  Partnerships of $6,845,000.  Liabilities at December 31, 1998 primarily
consisted  of  $5,000  of  accrued  annual  management  fees due to the  General
Partner, $55,000 due to Associates for cash advanced by Associates to acquire an
interest in a Local Limited Partnership and $92,000 due to limited partnerships.

                                       8
<PAGE>

Results of Operations

Year Ended  December 31, 1998  Compared to Year Ended  December  31,  1997.  The
Partnership's net loss for 1998 was $(779,000), reflecting a decrease of $33,000
from the net loss  experienced in 1997. The decline in net loss is primarily due
to equity in losses from limited  partnerships  which  declined to $(750,000) in
1998 from  $(807,000) in 1997.  The reduction in equity  losses  recognized  was
partially  offset by an increase in loss from operations of $(24,000) in 1998 to
$(29,000),  from $(5,000) in 1997,  due to a $5,000  increase in office  expense
allocations and a $19,000 decrease in interest income.

Year Ended  December 31, 1997  Compared to Year Ended  December  31,  1996.  The
Partnership's  net loss  for 1997 was  $(812,000),  reflecting  an  increase  of
$355,000  from the net loss  experienced  in 1996.  The  increase in net loss is
primarily due to equity in losses from limited  partnerships  which increased to
$(807,000) in 1997 from $(528,000) in 1996. Income from operations  decreased to
a net loss of $(5,000) in 1997 from net income of $71,000 in 1996.  The decrease
in net income of $76,000 was primarily  due to a decrease in interest  income of
$82,000, partially offset by a $6,000 decrease in office expense allocations.

Cash Flows

Year Ended  December 31, 1998 Compared to Year Ended December 31, 1997. Net cash
used in 1998 was $(388,000),  compared to net cash used in 1997 of $(1,467,000).
The change was due primarily to a decrease in cash used for investments in Local
Limited  Partnerships  of $1,084,000  and a decrease in cash paid to the General
Partner or  affiliates of $37,000  partially  offset by an increase in operating
costs paid to third  parties and a decline in  distributions  from Local Limited
Partnerships.

Year Ended  December 31, 1997 Compared to Year Ended December 31, 1996. Net cash
used in 1997 was $(1,467,000),  compared to $(1,212,000) in 1996. The change was
due  primarily  to an increase  in cash used for  investments  in Local  Limited
Partnerships of $176,000,  a decrease in cash collections of notes receivable of
$173,000 and a decrease in offering cost refund of $70,000 partially offset by a
decrease  in cash paid to the  General  Partner or  affiliates  of  $144,000,  a
decrease in operating costs paid to third parties of $14,000, and an increase in
distributions from Limited Partnerships of $6,000.

During 1998 accrued payables, which include related party management fees due to
the General Partner,  increased by $56,000, due primarily to an advance received
from Associates to acquire an interest in a Local Limited Partnership.

The Partnership  expects its future cash flows,  together with its net available
assets at December 31, 1998, to be  sufficient to meet all currently  forseeable
future cash requirements.


Impact of Year 2000

The General  Partner has assessed the  Partnership's  exposure to date sensitive
computer  systems that may not be operative  subsequent  to 1999. As a result of
this  assessment,  the  General  Partner  has  executed a plan to  minimize  the
Partnership's  exposure to financial loss and/or  disruption of normal  business
operations  that may  occur  as a result  of Year  2000  non-compliant  computer
systems.

                                       9

<PAGE>

Business Computer Systems

These systems include both computer hardware and software  applications relating
to operations such as financial reporting. The Partnership does not maintain its
own systems and thus utilizes the computer systems of the General  Partner.  The
General Partner  developed a compliance  plan for each of its business  computer
systems,  with  particular  attention  given to  critical  systems.  The General
Partner  contracted  with an outside  vendor to  evaluate,  test and repair such
systems.  The assessment  consisted of determining the compliance with Year 2000
of critical  computer hardware and software.  Incidences of non-compliance  were
found with respect to computer  software  applications  and were corrected.  The
vendor found no instances of non-compliance  with respect to computer  hardware.
The amount expended and to be expended by the General Partner is nominal.

The Local General  Partners and/or property  management  companies  maintain the
business  computer  systems that relate to the  operations  of the Local Limited
Partnerships.  The  General  Partner is in the  process of  obtaining  completed
questionnaires   from  such  Local  General  Partners  and  property  management
companies to assess their  respective Year 2000  readiness.  The General Partner
intends to  identify  those  Local  General  Partners  and  property  management
companies  that have systems  critical to the  operations  of the Local  Limited
Partnerships that are not Year 2000 compliant.  For those Local General Partners
and property  management  companies which have business  computer  systems which
will not be Year 2000 compliant prior to December 31, 1999 and where the lack of
such  compliance  is  determined  to have a  potential  material  effect  on the
Partnership's financial condition and results of operations, the General Partner
intends  to  develop  contingency  plans  which may  include  changing  property
management companies.

Outside Vendors

The General  Partner has obtained  assurances  from its  suppliers of electrical
power and banking and telecommunication services that their critical systems are
all Year 2000 compliant.  There exists,  however,  inherent uncertainty that all
systems of outside vendors or other third parties on which the General  Partner,
and thus the Partnership, and the Local General Partners and property management
companies,  and thus the  Local  Limited  Partnerships,  rely  will be Year 2000
compliant. Therefore, the Partnership remains susceptible to the consequences of
third party critical computer systems being non-compliant.

Personal Computers

The General  Partner has  determined  that its  personal  computers  and related
software critical to the operations of the Partnership are Year 2000 compliant.

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk

NONE.

Item 8.  Financial Statements and Supplementary Data

                                       10
<PAGE>
















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

                              FINANCIAL STATEMENTS

              For The Years Ended December 31, 1998, 1997 and 1996

                                      with

               REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS


















                                       11

<PAGE>








               REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS




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


We have audited the  accompanying  balance sheet of WNC  California  Housing Tax
Credits  IV,  L.P.,   Series  4  (a   California   Limited   Partnership)   (the
"Partnership")  as  of  December  31,  1998,  and  the  related   statements  of
operations,  partners'  equity (deficit) and cash flows for the year then ended.
These  financial   statements  are  the   responsibility  of  the  Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audit. 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 88% of the total assets of WNC California
Housing Tax Credits IV, L.P.,  Series 4 at December 31, 1998.  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 such limited  partnerships,  is based solely
on the reports of the other auditors.

We conducted our audit 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 audit and the  reports  of the  other  auditors  provide a
reasonable basis for our opinion.

In our opinion,  based on our audit and the reports of the other  auditors,  the
financial statements referred to above present fairly, in all material respects,
the financial  position of WNC California Housing Tax Credits IV, L.P., Series 4
(a California  Limited  Partnership) as of December 31, 1998, and the results of
its  operations and its cash flows for the year then ended,  in conformity  with
generally accepted accounting principles.




                                                        BDO SEIDMAN, LLP

Orange County, California
April 5, 1999





                                     12
<PAGE>



                          INDEPENDENT AUDITORS' REPORT



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


We have audited the  accompanying  balance sheet of WNC  California  Housing Tax
Credits  IV,  L.P.,   Series  4  (  a  California   Limited   Partnership)  (the
"Partnership")  as  of  December  31,  1997,  and  the  related   statements  of
operations,  partners'  equity (deficit) and cash flows for each of the years in
the two-year period ended December 31, 1997. These financial  statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these  financial  statements  based on our audit. We did not audit
the financial  statements of the limited  partnerships  in which WNC  California
Housing Tax Credits 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 87% of
the total assets of WNC  California  Housing Tax Credits IV,  L.P.,  Series 4 at
December 31, 1997.  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 these
limited partnerships, is based solely on the reports of the other auditors.

We  conducted  our  audits  in  accordance  with  generally   accepted  auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We  believe  that our audits and the  reports  of the other  auditors  provide a
reasonable basis for our opinion.

In our opinion,  based on our audits and the reports of the other auditors,  the
financial statements referred to above present fairly, in all material respects,
the financial  position of WNC California Housing Tax Credits IV, L.P., Series 4
(a California  Limited  Partnership) as of December 31, 1997, and the results of
its operations  and its cash flows for each of the years in the two-year  period
ended  December 31, 1997,  in  conformity  with  generally  accepted  accounting
principles.



                                                 CORBIN & WERTZ

Irvine, California
April 10, 1998














                                       13

<PAGE>


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

                                 BALANCE SHEETS

                           December 31, 1998 and 1997



                                         1998                    1997
                                         ----                    ----

ASSETS

Cash and cash equivalents         $        760,343        $       1,147,906
Receivables from affiliates
 (Note 3)                                        -                   31,646
Loans receivable (Note 7)                  201,611                        -
Investments in limited
 partnerships (Notes 2 and 7)            6,845,203                7,622,211
                                   ---------------         ----------------

                                  $      7,807,157        $       8,801,763
                                   ===============         ================
LIABILITIES AND PARTNERS'
EQUITY (DEFICIT)

Liabilities:
 Payable to limited partnerships
  (Notes 4 and 7)                 $         91,746        $         363,634
 Accrued fees and expenses due
  to General  Partner and
  affiliate (Note 3)                        62,779                    6,445
                                   ---------------         ----------------
         Total liabilities                 154,525                  370,079
                                   ---------------         ----------------
Commitments and contingencies
 (Note 7)

Partners' equity (deficit)
 (Note 6):
   General partner                         (24,647)                 (16,856)
   Limited partner (25,000 units
    authorized, 11,500 units
    issued and outstanding)              7,677,279                8,448,540
                                   ---------------         ----------------

         Total partners' equity          7,652,632                8,431,684
                                   ---------------         ----------------
                                  $      7,807,157        $       8,801,763
                                   ===============         ================






                 See accompanying notes to financial statements
                                       14

<PAGE>


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

                            STATEMENTS OF OPERATIONS

              For The Years Ended December 31, 1998, 1997 and 1996


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

Interest income                 $     46,032    $       65,307    $     147,254
                                   -----------       -----------    -----------

Operating expenses:
 Amortization (Note 2)                25,561            25,419           24,865
 Asset management fees
  (Note 3)                            31,625            31,625           31,625
 Office                               17,784            13,505           19,863
                                 -----------       -----------      -----------

 Total operating expenses             74,970            70,549           76,353
                                 -----------       -----------      -----------
(Loss) income from
 operations                          (28,938)           (5,242)          70,901

Equity in losses from
 limited partnerships
 (Note 2)                           (750,114)         (806,639)        (528,288)
                                 -----------       -----------      -----------

Net loss                     $      (779,052)   $     (811,881)   $    (457,387)
                                 ===========       ===========      ===========
Net loss allocable to:
   General partner           $        (7,791)   $       (8,119)   $      (4,574)
                                 ===========       ===========      ===========
   Limited partners          $      (771,261)   $     (803,762)   $    (452,813)
                                 ===========       ===========      ===========
Net loss per limited
 partner unit                $        (67.07)   $       (69.89)   $      (39.38)
                                 ===========       ===========      ===========
Outstanding weighted
 limited partner units                11,500            11,500           11,500
                                 ===========       ===========      ===========





                 See accompanying notes to financial statements
                                       15
<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, 1998, 1997 and 1996

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


Partners' equity (deficit),
 January 1, 1996              $    (4,861)   $    9,463,534    $     9,458,673

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

Offering costs (Note 3)               698            69,081             69,779

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

Partners' equity (deficit),
 December 31, 1996                 (8,737)        9,252,302          9,243,565

Net loss                           (8,119)         (803,762)          (811,881)
                              -----------       -----------        -----------

Partners' equity (deficit),
 December 31, 1997                (16,856)        8,448,540          8,431,684

Net loss                           (7,791)         (771,261)          (779,052)
                              -----------       -----------        -----------

Partners' equity (deficit),
 December 31, 1998           $    (24,647)   $    7,677,279    $     7,652,632
                              ===========       ===========        ===========











                 See accompanying notes to financial statements
                                       16

<PAGE>

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

                            STATEMENTS OF CASH FLOWS

              For The Years Ended December 31, 1998, 1997 and 1996


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

Cash flows from operating
activities:
 Net loss                            $  (779,052)  $   (811,881)  $   (457,387)
 Adjustments to reconcile
  net loss to  net cash
  provided by operating activities:
   Amortization                           25,561         25,419         24,865
   Equity in losses from
    limited partnerships                 750,114        806,639        528,288
   Change in receivables from
    affiliates                            31,646         90,179              -
   Change in accrued fees and
    expenses due to General
    Partner and affiliates                56,334              -              -
                                      ----------     ----------     ----------

 Net cash provided by operating
   activities                             84,603        110,356         95,766
                                      ----------     ----------     ----------
Cash flows from investing activities:
 Investments in limited
  partnerships, net                     (271,888)    (1,555,241)    (1,341,247)
 Capitalized acquisition cost
  and fees                                (1,584)        (3,567)       (41,572)
 Distributions from limited
  partnerships                             2,917          6,000              -
 Loans receivable                       (201,611)             -              -
 Other assets                                  -         12,912         12,912
                                      ----------     ----------     ----------
  Net cash used in investing
   activities                           (472,166)    (1,539,896)    (1,369,907)
                                      ----------     ----------     ----------
Cash flows from financing activities:
 Payments to affiliates or
  general partner, net                         -        (37,310)      (180,596)
 Offering costs                                -              -         69,779
 Collection on notes receivable                -              -        172,500
                                      ----------     ----------     ----------
Net cash (used in) provided
 by financing activities                       -        (37,310)        61,683
                                      ----------     ----------     ----------
Net decrease in cash and
 cash equivalents                       (387,563)    (1,466,850)    (1,212,458)

Cash and cash equivalents,
 beginning of year                     1,147,906      2,614,756      3,827,214
                                      ----------     ----------     ----------
Cash and cash equivalents,
 end of year                        $    760,343   $  1,147,906   $  2,614,756
                                      ==========     ==========     ==========


Continued
                 See accompanying notes to financial statements
                                       17
<PAGE>


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

                      STATEMENTS OF CASH FLOWS - CONTINUED

              For The Years Ended December 31, 1998, 1997 and 1996



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

SUPPLEMENTAL DISCLOSURE
OF CASH FLOW INFORMATION:
   Taxes paid                 $         800     $        800     $        800
                                ===========      ===========      ===========


SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING AND INVESTING ACTIVITY:

During the year ended December 31, 1996, the Partnership  incurred,  but did not
pay, $382,865 in payables to a limited partnership.


















                 See accompanying notes to financial statements
                                       18

<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, 1998, 1997 and 1996


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

WNC  California  Housing Tax Credits IV,  L.P.,  Series 4 a  California  Limited
Partnership (the "Partnership"),  was formed on February 16, 1994 under the laws
of the  State  of  California,  and  began  operations  on July  26,  1994.  The
Partnership was formed to invest  primarily in other limited  partnerships  (the
"Local  Limited   Partnership")  which  own  and  operate  multi-family  housing
complexes  (the  "Housing  Complex")  that are eligible  for low income  housing
credits. The local general partners (the "Local General Partners") of each Local
Limited  Partnership  retain  responsibility  for  maintaining,   operating  and
managing the Housing Complex.

The  general  partner is WNC  California  Tax Credit  Partners,  IV,  L.P.  (the
"General Partner"),  a California limited  partnership.  WNC & Associates,  Inc.
("WNC") is the general partner of the General Partner.  Wilfred N. Cooper,  Sr.,
through the Cooper Revocable Trust,  owns 66.8% of the outstanding stock of WNC.
John B. Lester, Jr. is the original limited partner of the Partnership and owns,
through the Lester Family Trust, 28.6% of the outstanding stock of WNC.

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

The  Partnership  Agreement  authorized the sale of up to 25,000 units at $1,000
per Unit ("Units"). 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  proceeds
equal  to its  capital  contributions  and a  subordinated  disposition  fee (as
described in Note 3) from the  remainder,  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.

Risks and Uncertainties

The Partnership's  investments in Local Limited  Partnerships are subject to the
risks incident to the management and ownership of low-income  housing and to the
management and ownership of multi-unit  residential  real estate.  Some of these
risks  are that the low  income  housing  credit  could be  recaptured  and that
neither the  Partnership's  investments  nor the Housing  Complexes owned by the
Local Limited Partnerships will be readily marketable. To the extent the Housing
Complexes  receive  government  financing  or operating  subsidies,  they may be
subject to one or more of the following risks: difficulties in obtaining tenants
for the Housing Complexes; difficulties in obtaining rent increases; limitations
on cash distributions; limitations on sales or refinancing of Housing Complexes;
limitations on transfers of Local Limited Partnership Interests;  limitations on
removal of Local  General  Partners;  limitations  on  subsidy of Local  Limited

                                       19

<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, 1998, 1997 and 1996


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued


Partnership  Interests;  limitations  on  removal  of  Local  General  Partners;
limitations on subsidy programs; and possible changes in applicable regulations.
The  Housing  Complexes  are or will be subject to mortgage  indebtedness.  If a
Local Limited Partnership does not make its mortgage payments,  the lender could
foreclose  resulting  in a loss of the Housing  Complex  and low income  housing
credits. As a limited partner of the Local Limited Partnerships, the Partnership
will have very limited  rights with respect to  management  of the Local Limited
Partnerships,  and will rely totally on the Local General  Partners of the Local
Limited Partnerships for management of the Local Limited Partnerships. The value
of the  Partnership's  investments  will be subject to changes in  national  and
local  economic  conditions,  including  unemployment  conditions,  which  could
adversely impact vacancy levels, rental payment defaults and operating expenses.
This, in turn, could substantially increase the risk of operating losses for the
Housing  Complexes  and  the  Partnership.   In  addition,  each  Local  Limited
Partnership  is subject to risks relating to  environmental  hazards and natural
disasters which might be uninsurable.  Because the Partnership's operations will
depend on these and other factors beyond the control of the General  Partner and
the Local General  Partners,  there can be no assurance that the anticipated low
income housing credits will be available to Limited Partners.

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

Method of Accounting For Investments in Limited Partnerships

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

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

Offering Expenses

Offering  expenses consist of underwriting  commissions,  legal fees,  printing,
filing and  recordation  fees,  and other costs  incurred  with selling  limited
partnership  interests in the  Partnership.  The General Partner is obligated to
pay all  offering  and  organization  costs in  excess of 15%  (including  sales
commissions) of the total offering proceeds.  Offering expenses are reflected as
a reduction of partners' capital and amounted to $1,312,054,  as of December 31,
1998 and 1997 respectively.

                                       20
<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, 1998, 1997 and 1996


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued

Use of Estimates

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

Cash and Cash Equivalents

The Partnership considers highly liquid investments with remaining maturities of
three months or less when purchased to be cash  equivalents.  The  Partnership's
cash equivalents  consisted of investments in mutual funds totaling $750,309 and
$768,013 at December 31, 1998 and 1997, respectively.

Concentration of Credit Risk

As of December 31, 1998, the Partnership  maintained a cash balance at a certain
financial institution in excess of the maximum federally insured amounts.

Net Loss Per Limited Partner Unit

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

Reporting Comprehensive Income

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

                                       21

<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, 1998, 1997 and 1996


NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS

At December 31, 1998, the Partnership had acquired limited partnership interests
in nine  Local  Limited  Partnerships  each of which  owns one  Housing  Complex
consisting  of an aggregate  of 298  apartment  units.  The  respective  general
partners of the Local Limited  Partnerships manage the day-to-day  operations of
the entities.  Significant Local Limited Partnership  business decisions require
approval  from the  Partnership.  The  Partnership,  as a  limited  partner,  is
generally  entitled  to 99%,  as  specified  in the  Local  Limited  Partnership
agreements,   of  the  operating   profits  and  losses  of  the  Local  Limited
Partnerships.

The  Partnership's  investment  in Local  Limited  Partnerships  as shown in the
balance sheets as of December 31, 1998 and 1997, is  approximately  $675,000 and
$1,061,000,  respectively, greater than the Partnership's equity as shown in the
Local Limited  Partnerships'  financial  statements.  This  difference is due to
unrecorded  losses,  acquisition,  selection  and  other  costs  related  to the
acquisition of the investments  which have been capitalized in the Partnership's
investment account and capital contributions payable to the limited partnerships
which were netted  against  partner  capital in the Local Limited  Partnership's
financial statements (see Note 4).

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

Distributions  received by limited  partners are accounted for as a reduction of
the investment balance.  Distributions received after the investment has reached
zero are  recognized as income.  During 1998,  no  investment  accounts in Local
Limited Partnerships reached a zero balance.

Following is a summary of the equity method activity of the investments in Local
Limited Partnerships for the years ended December 31:

                                                      1998               1997
                                                      ----               ----

Investments per balance sheet,
 beginning of year                           $     7,622,211    $    8,467,424
Total capital contributions made
 or accrued, net of tax credit adjustments                 -           (10,722)
Capitalized acquisition fees and costs                 1,584             3,567
Equity in losses of limited partnerships            (750,114)         (806,639)
Distributions paid                                    (2,917)           (6,000)
Amortization of paid acquisition fees
 and costs                                           (25,561)          (25,419)
                                                  ----------        ----------

Investments per balance sheet, end of year    $    6,845,203     $   7,622,211
                                                  ==========        ==========


                                       22

<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, 1998, 1997 and 1996


NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued

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


                        COMBINED CONDENSED BALANCE SHEETS

                                           1998                    1997
                                           ----                    ----
ASSETS

Buildings and improvements,
 net of accumulated depreciation
 for 1998 and 1997 of $1,838,000
 and $1,223,000, respectively        $    15,124,000      $     14,553,000
Land                                         916,000               916,000
Construction in progress                           -             1,181,000
Other assets                                 837,000               616,000
                                      --------------        --------------
                                     $    16,877,000      $     17,266,000
                                      ==============        ==============

LIABILITIES

Mortgage and construction loans
 payable                             $     9,041,000      $      9,164,000
Other liabilities (including
 payables to affiliates of
 $554,000 and $717,000 for
 1998 and 1997, respectively)              1,584,000             1,496,000
                                      --------------        --------------
                                          10,625,000            10,660,000
                                      --------------        --------------

PARTNERS' CAPITAL

WNC California Housing Tax
 Credits IV, L.P., Series 4                6,170,000             6,561,000
Other partners                                82,000                45,000
                                      --------------        --------------
                                           6,252,000             6,606,000
                                      --------------        --------------

                                      $   16,877,000      $     17,266,000
                                      ==============        ==============




                                       23

<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, 1998, 1997 and 1996

NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued

                  COMBINED CONDENSED STATEMENTS OF OPERATIONS

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

Revenues                    $     1,068,000    $   1,045,000   $     842,000

Expenses:
 Operating expenses                 713,000          705,000         521,000
 Interest expense                   489,000          535,000         392,000
 Depreciation and
  amortization                      624,000          619,000         463,000
                                -----------      -----------     -----------
   Total expenses                 1,826,000        1,859,000       1,376,000
                                -----------      -----------     -----------

Net loss                     $     (758,000)   $    (814,000)  $    (534,000)
                                ===========      ===========     ===========
Net loss allocable
 to the Partnership          $     (750,000)   $    (807,000)  $    (528,000)
                                ===========      ===========     ===========
Net loss recorded
 by the Partnership          $     (750,000)   $    (807,000)  $    (528,000)
                                ===========      ===========     ===========

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

NOTE 3 - RELATED PARTY TRANSACTIONS

As of December 31,  1997,  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 Units as
         compensation  for services  rendered in connection with the acquisition
         of Local Limited  Partnerships.  As of December 31, 1998 and 1997,  the
         Partnership   incurred   acquisition  fees  of  $654,580.   Accumulated
         amortization of these  capitalized  costs was $79,140 and $57,320 as of
         December 31, 1998 and 1997, respectively.

                                       24
<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, 1998, 1997 and 1996

NOTE 3 - RELATED PARTY TRANSACTIONS, continued

         Reimbursement  of costs incurred by an affiliate of the General Partner
         in connection with the acquisition of Local Limited Partnerships. These
         reimbursements  will  not  exceed  1.0% of the  gross  proceeds.  As of
         December 31, 1998 and 1997, the Partnership  incurred acquisition costs
         of $112,680 and  $111,096,  respectively,  which have been  included in
         investments  in  limited  partnerships.  Accumulated  amortization  was
         $12,760 and $9,016 for 1998 and 1997, respectively.

         An  annual  asset  management  fee equal to the  greater  amount of (i)
         $2,000 for each Housing 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 of the Local Limited
         Partnerships,  including  the  Partnership's  allocable  share  of  the
         mortgages.  Management fees of $31,625 were incurred for 1998, 1997 and
         1996  respectively,  of which,  $31,646,  $60,000 and $45,000 were paid
         during 1998, 1997 and 1996, respectively.

         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 preferred return of 14% through December
         31, 2005 and 6% thereafter  (as defined in the  Partnership  Agreement)
         and is payable  only if the General  Partner or its  affiliates  render
         services in the sales effort.

The  accrued  fees and  expenses  due to General  Partner and  affiliates  as of
December 31, 1998 and 1997 consist of the following:

                                            1998                    1997
                                            ----                    ----

Cash advances by WNC
 to acquire an interest in a
 limited partnership (Note 7)       $         55,200        $               -

Reimbursement for expenses
 paid by an affiliate
 of the General Partner                        2,210                    1,055

Asset management fees payable                  5,369                    5,390
                                      --------------          ---------------

                                    $         62,779        $           6,445
                                      ==============          ===============







                                       25

<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, 1998, 1997 and 1996

NOTE 4 - PAYABLES TO LIMITED PARTNERSHIPS

Payables  to limited  partnerships  represent  amounts  which are due at various
times based on conditions specified in the limited partnership agreements. These
contributions  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 as any  liability for income taxes is the  obligation of the partners
of the Partnership.

NOTE 6 - SUBSCRIPTIONS AND INVESTOR NOTES RECEIVABLE

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.  The
promissory  notes  accepted  during 1995 amounted to $172,500 and were collected
during 1996.

NOTE 7 - COMMITMENTS AND CONTINGENCIES

In January 1999, the Partnership  acquired a 99% limited partner  interest in an
additional  limited  partnership  which  committed the Partnership to additional
contributions of approximately $251,989, of which $201,611 has been advanced and
has been reflected in loans receivable in the accompanying balance sheet.







                                       26
<PAGE>
Item  9.  Changes  in and  Disagreements  With  Accountants  on  Accounting  and
Financial Disclosure

(a)(1)

(i)      On December 16, 1998, Corbin & Wertz, Irvine,  California was dismissed
         as the Partnership's principal independent accountant.

(ii)     During the last two fiscal  years of the  Partnership,  the  reports of
         Corbin & Wertz  respecting the financial  statements of the Partnership
         did not contain an adverse opinion or a disclaimer of opinion, nor were
         any such reports  qualified or modified as to uncertainty,  audit scope
         or accounting principles.

(iii)    The decision  to  change  accountants  was  approved  by  the  board of
         directors  of  WNC  &  Associates,  Inc., the  general  partner of  the
         Partnership.

(iv)     During the last two fiscal years and  subsequent  interim period of the
         Partnership there were no disagreements  between Corbin & Wertz and the
         Partnership  on any  matter  of  accounting  principles  or  practices,
         financial statement  disclosure,  or auditing scope or procedure of the
         nature  described  in Item  304(a)(1)(iv)  of  Securities  and Exchange
         Commission Regulation S-K.

(v)      During the last two fiscal years and  subsequent  interim period of the
         Partnership  there were no reportable events of the nature described in
         Item 304(a)(1)(v) of Securities and Exchange Commission Regulation S-K.

(a)(2)

On December 16, 1998, BDO Seidman,  LLP,  Costa Mesa,  California was engaged as
the Partnership's principal independent  accountant.  During the last two fiscal
years and subsequent interim period of the Partnership,  the Partnership did not
consult BDO Seidman,  LLP regarding (i) either,  the  application  of accounting
principles to a specified  transaction;  or the type of audit opinion that might
be rendered on the Partnership's  financial statements,  or (ii) any matter that
was  the  subject  of a  disagreement  (as  defined  in  Item  304(a)(1)(iv)  of
Securities and Exchange Commission Regulation S-K) or was a reportable event (as
defined in Item  304(a)(1)(v) of Securities and Exchange  Commission  Regulation
S-K).

PART III.

Item 10.  Directors and Executive Officers of the Registrant

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

Directors and Executive Officers of WNC & Associates, Inc.

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

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

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

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

David N. Shafer, age 46, is Senior Vice President, a Director,  General Counsel,
and a member of the  Acquisition  Committee  of WNC &  Associates,  Inc.,  and a
Director and Secretary of WNC  Management,  Inc. Mr. Shafer has been involved in
real estate  investment and acquisition  activities since 1984. Prior to joining
the Sponsor in 1990, he was  practicing  law with a specialty in real estate and
taxation.  Mr. Shafer is a Director and President of the  California  Council of
Affordable  Housing  and a member  of the State Bar of  California.  Mr.  Shafer
graduated  from the  University  of  California  at Santa Barbara in 1978 with a
Bachelor of Arts degree, from the New England School of Law in 1983 with a Juris
Doctor  degree (cum laude) and from the  University  of San Diego in 1986 with a
Master of Law degree in Taxation.

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

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

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

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

                                       28
<PAGE>
David Turek, age 44, is Vice President - Originations of WNC & Associates,  Inc.
He has been involved with real estate  investment and finance  activities  since
1976 and has been employed by WNC & Associates,  Inc.  since 1996.  From 1995 to
1996,  Mr. Turek served as a consultant  for a national Tax Credit sponsor where
he was responsible for on-site feasibility studies and due diligence analyses of
Tax Credit properties.  From 1990 to 1995, he was involved in the development of
conventional  and tax credit  multi-family  housing.  He is a Director  with the
Texas Council for Affordable Rural Housing and graduated from Southern Methodist
University in 1976 with a Bachelor of Business Administration degree.

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

Item 11.  Executive Compensation

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

(a)   Acquisition  Expenses.  The Partnership incurred  acquisition  expenses of
      $113,000 as of December 31, 1998 and $111,000 as of December 31, 1997.

(b)   Annual Asset Management Fee. An annual asset management fee the greater of
      (i) $2,000  per  multi-family  housing  complex,  or (ii)  0.275% of Gross
      Proceeds.  The base fee  amount  will be  adjusted  annually  based on the
      change in the Consumer Price Index.  However,  in no event will the annual
      asset  management fee exceed 0.2% of Invested  Assets.  "Invested  Assets"
      means  the  sum  of  the   Partnership's   investment   in  Local  Limited
      Partnerships  and the  Partnership's  allocable share of the amount of the
      indebtedness  related  to the  Housing  Complexes.  Fees of  $32,000  were
      incurred for the year ended  December 31, 1998. The  Partnership  paid the
      General Partner or its affiliates $32,000 of those fees during 1998.

(c)   Subordinated  Disposition Fee. A subordinated disposition fee in an amount
      equal to 1% of the sale  price  received  in  connection  with the sale or
      disposition of a Housing  Complex.  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
      Partners.  "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  Partnership's  term. No  disposition  fees
      have been paid.

(d)   Operating Expense.  The Partnership  reimbursed the General Partner or its
      affiliates for operating expenses of approximately  $2,000 during the year
      ended December 31, 1998.

(e)   Interest  in  Partnership.   The  General   Partners  receive  1%  of  the
      Partnership's  allocated Low Income Housing  Credits,  which  approximated
      $19,000 for the General  Partner for the year ended December 31, 1998. The
      General  Partners are also  entitled to receive 1% of cash  distributions.
      There were no  distributions  of cash to the General  Partners  during the
      year ended December 31,1998.

                                       29

<PAGE>
Item 12.  Security Ownership of Certain Beneficial Owners and Management

Security Ownership of Certain Beneficial Owners

(a)   Security Ownership of Certain Beneficial Owners

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

(b)   Security Ownership of Management

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

(c)   Changes in Control

      The  management  and control of the General  Partner 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

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

PART IV.

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

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

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

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

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

                                       30
<PAGE>

(b)  Reports on Form 8-K

1.   A Form 8-K dated December 16, 1998 was filed on December 22, 1998 reporting
     the dismissal of the  Partnership's  former  auditors and the engagement of
     new auditors. No financial statements were included.

(c)  Exhibits.

3.1  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.

10.1 Escrow  Agreement   between   Registrant  and  National  Bank  of  Southern
     California  filed as exhibit 10.1 to the  Pre-effective  Amendment No. 2 to
     Registration  Statement on Form S-11 of the Partnership dated July 22, 1994
     is hereby incorporated herein by reference as exhibit 10.1.

10.2 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 10.2

10.3 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 10.3.

10.4 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 10.4.

10.5 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 10.5.

10.6 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 10.6.

10.7 Amended and Restated Agreement of Limited  Partnership of Woodlake Valencia
     House, a California Limited Partnership. (1)

10.8 Amended and Restated Agreement of Limited  Partnership of Pawnee Associates
     I, L.P. (1)

10.9 Amended  and  Restated  Agreement  of  Limited  Partnership  of  Eagleville
     Associates I, L.P. (1)

21.1 Financial  Statements  of  Colonial  Village  Auburn,  for the years  ended
     December  31,  1998 and 1997  together  with  auditors  report  thereon;  a
     significant subsidiary of the Partnership.

(d)  Financial  statement  schedule  follows,  as set forth in subsection (a)(2)
     hereof.




                                       31
<PAGE>



              Report of Independent Certified Public Accountants on
                          Financial Statement Schedule



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


The audit  referred to in our report  dated April 5, 1999,  relating to the 1998
financial  statements of WNC California  Housing Tax Credits IV, L.P.,  Series 4
(the  "Partnership"),  which is contained in Item 8 of this Form 10-K,  included
the  audit of the  accompanying  financial  statement  schedule.  The  financial
statement  schedule is the responsibility of the Partnership's  management.  Our
responsibility  is to express an opinion on this  financial  statement  schedule
based upon our audit.

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




                                                       BDO SEIDMAN, LLP


Orange County, California
April 5, 1999













                                       32
<PAGE>



WNC California Housing Tax Credit Fund IV, L.P. Series 4
Schedule III
Real Estate Owned by Local Limited Partnerships
<TABLE>
<CAPTION>


                           ---------------------------------------------------------------------------------------------------------
                                                            As of December 31, 1998
                           ---------------------------------------------------------------------------------------------------------
                               Location      Partnership's      Amount of       Encumbrances  Property    Accumulated    Net
Partnership Name                             Total Investment   Investment      of  Local     and         Depreciation   Book
                                             in Local Limited   Paid to Date    Limited       Equipment                  Value
                                             Partnerships                       Partnerships
------------------------------------------------------------------------------------------------------------------------------------
<S>                            <C>           <C>                <C>             <C>           <C>          <C>           <C>

Chadron Apartments I, L.P.     Chadron,
                               Nebraska       $    483,000      $   391,000     $  800,000    $ 1,265,000  $   33,000    $ 1,232,000


Colonial Village Auburn        Auburn,
                               California        2,979,000        2,979,000      2,087,000      5,326,000     685,000      4,641,000

Eagleville Associates I, L.P.  Eagleville,
                               Missouri             79,000           79,000        356,000        416,000      43,000        373,000

Maharlika, Ltd.                Stockton,
                               California        1,524,000        1,524,000      1,565,000      3,038,000     370,000      2,668,000

Pawnee Associates I, L.P.      Pawnee,
                               Illinois            130,000          130,000        539,000        684,000      63,000        621,000

Rancheria Village Apartments,  Santa Barbara,
a California Limited           California          950,000          950,000        995,000      1,848,000     104,000      1,744,000
Partnership

Sycamore Hills L.P.            Salem,
                               Indiana             185,000          185,000        763,000        989,000     162,000        827,000

Wills Point Crossing, L.P.     Wills Point,
                               Texas               234,000          234,000        984,000      1,256,000      97,000      1,159,000


Woodlake Valencia Partners     Woodlake,
                               California        1,798,000        1,798,000        952,000      3,056,000     281,000      2,775,000
                                                ----------       ----------      ---------     ----------   ---------     ----------
                                             $   8,362,000     $  8,270,000     $9,041,000   $ 17,878,000 $ 1,838,000    $16,040,000
                                                ==========       ==========      =========     ==========   =========     ==========

</TABLE>
                                       33

<PAGE>


WNC California Housing Tax Credit Fund IV, L.P. Series 4
Schedule III
Real Estate Owned by Local Limited Partnerships
<TABLE>
<CAPTION>


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

     Partnership Name       Rental Income    Net loss     Year Investment        Status         Estimated Useful
                                                              Acquired                            Life (Years)
--------------------------------------------------------------------------------------------------------------------
<S>                           <C>            <C>                       <C>          <C>                        <C>

Chadron Apartments I, L.P.    $     49,000   $  (57,000)               1996         Completed                    40


Colonial Village Auburn            377,000     (130,000)               1994         Completed                  27.5

Eagleville Associates I,
L.P.                                46,000      (12,000)               1996         Completed                  27.5

Maharlika, Ltd.                    110,000     (253,000)               1995         Completed                  27.5

Pawnee Associates I, L.P.           65,000      (22,000)               1996         Completed                  27.5

Rancheria Village
Apartments, a California
Limited Partnership                106,000      (47,000)               1995         Completed                    40

Sycamore Hills L.P.                 85,000      (13,000)               1995         Completed                  27.5

Wills Point Crossing, L.P.         103,000      (14,000)               1995         Completed                    40

Woodlake Valencia Partners          84,000     (210,000)               1995         Completed                  27.5
                                 ---------     --------

                             $   1,025,000  $  (758,000)
                                 =========     ========


</TABLE>



                                       34
<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 of WNC & Associates, Inc.

Date: July 1, 1999


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

Date: July 1, 1999


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

Date: July 1, 1999

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


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

Date: July 1, 1999



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

Date: July 1, 1999


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

Date: July 1, 1999


                                       35
<PAGE>