FORM 10-K

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

(Mark One)

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

For the fiscal year ended December 31, 1997

                                                        OR

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

For the transition period from ________ to ___________

Commission file number: 33-76970


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

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

California                                                   33-0531301

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

                                                  (714) 662-5565

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

Title of Securities                               Exchanges on which Registered

NONE                                                         NOT APPLICABLE



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

NONE
<PAGE>



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


DOCUMENTS INCORPORATED BY REFERENCE

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

NONE



                                       2
<PAGE>


Item 1.  Business

PART I.

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.
The  Partnership was formed to acquire  limited  partnership  interests in local
limited  partnerships  ("Local  Limited  Partnerships")  which  own  multifamily
apartment complexes that are eligible for Federal and (in some cases) California
low-income housing tax credits (the "Low Income Housing 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.)  The business of the
Partnership is conducted primarily through Associates as the Partnership and the
General Partner have no employees of their own.

The  Partnership  conducted its public offering  ("Offering")  from July 1994 to
August 1995. 25,000 units of limited partnership interests ("Units"), at a price
of $1,000  per Unit  were  offered.  Since  inception  a total of  11,500  Units
representing  approximately  $11,099,000  were  sold  throughout  the  offering.
Holders of Units are referred to herein as "Limited Partners."

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

Description of Business
-----------------------

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

                                       3
<PAGE>

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


As of December  31, 1997,  the  Partnership  had invested in nine Local  Limited
Partnerships. Each of these Local Limited Partnerships owns an Apartment Complex
that is eligible for the Low Income Housing Credit. These investments  represent
approximately 100% of the offering proceeds available for investment.

The Partnership's  investments in Local Limited  Partnerships are subject to the
risks incident to the management and ownership of multifamily  residential  real
estate.  Some of these risks are that neither the Partnership's  investments nor
the  Apartment  Complexes  owned by Local Limited  Partnerships  will be readily
marketable. Additionally, there can be no assurance that the Partnership will be
able to dispose of its interests in Local Limited Partnerships at the end of the
Compliance Period. The value of the Partnership's investments will be subject to
changes  in  national  and local  economic  conditions,  including  unemployment
conditions, which could adversely impact vacancy levels, rental payment defaults
and operating expenses.  This, in turn, could substantially increase the risk of
operating losses for the Apartment Complexes and the Partnership.  The Apartment
Complexes will be subject to loss through foreclosure.  In addition,  each Local

                                       4
<PAGE>

Limited Partnership is subject to risks relating to environmental  hazards which
might  be  uninsurable.   Because  the  Partnership's  ability  to  control  its
operations  will  depend on these and other  factors  beyond the  control of the
General Partners and the Local General Partners,  there can be no assurance that
Partnership  operations  will be profitable or that the  anticipated  Low Income
Housing Credits will be available to Limited Partners.

Each of the Local Limited  Partnerships has received  financial  assistance from
the FmHA.  The  Partnership's  ability to exercise the voting rights  granted it
under the Local Limited Partnership Agreements and to transfer its Local Limited
Partnership  Interests is subject to restrictions  which would not be present if
assistance  were  received.  In this regard,  FmHA  approval  generally  will be
required in connection with the removal of a Local General Partner,  the sale of
an Apartment Complex or the sale of a Local Limited  Partnership  Interest.  Any
such approval may be withheld upon the discretion of FmHA.

As of December 31, 1997,  eight of the nine  Apartment  Complexes were completed
and in operation. CHADRON was under construction.  The Apartment Complexes owned
by the Local Limited  Partnerships  in which the  Partnership  has invested were
developed by the Local  General  Partners who acquired the sites and applied for
applicable mortgages and subsidies. The Partnership became the principal limited
partner  in  these  Local   Limited   Partnerships   pursuant  to   arm's-length
negotiations  with  the  Local  General  Partners.  As a  limited  partner,  the
Partnerships  liability  for  obligations  of the Local Limited  Partnership  is
limited  to its  investment.  The Local  General  Partner  of the Local  Limited
Partnership retains  responsibility for developing,  constructing,  maintaining,
operating and managing the Apartment Complex.


The  following  is a schedule  of the status as of  December  31,  1997,  of the
Apartment Complexes owned by Local Limited Partnerships in which The Partnership
was a limited partner:


                                       5
<PAGE>


<TABLE>
<CAPTION>

            SCHEDULE OF PROJECTS OWNED BY LOCAL LIMITED PARTNERSHIPS
                   IN WHICH THE PARTNERSHIP HAS AN INVESTMENT
                             AS OF DECEMBER 31, 1997

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


CHADRON APARTMENTS I                          16                  0                    0                        0%
  Chadron, Nebraska
COLONIAL VILLAGE AUBURN                       56                 56                    56                     100%
  Auburn, California
EAGLEVILLE ASSOCIATES I                       16                 16                    12                      75%
  Eagleville, Montana
MAHARLIKA, LTD                                69                 69                    58                      84%
  Stockton, California
PAWNEE ASSOCIATES I                           20                 20                    16                      80%
  Pawnee, Illinois
RANCHERA VILLAGE APTS                         14                 14                    14                     100%
  Santa Barbara, California
SYCAMORE HILLS                                24                 24                    21                      88%
   Salem, Indiana
WILLS POINT CROSSING                          36                 36                    33                      92%
  Wills Point, Texas
WOODLAKE VALENCIA                             47                 47                    35                      74%
  Woodlake, California
                                             ---                ---                   ---                     
                                             298                282                   245                      87%
                                             ===                ===                   ===
</TABLE>


Description of Local Limited Partnerships
-----------------------------------------

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

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

                                       6
<PAGE>

The  following   tables  contain   information   concerning  the  Local  Limited
Partnerships identified above.
<TABLE>
<CAPTION>

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

               8 buildings

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

                (4)

-------------- ------------- ------------- -------------- -------------- ------------- ---------------- -----------------
Maharlika      Filipino      October       $3,162,402     69 1BR units   267           $436,000         $1,958,000
               Community     1995                                                      Home             (federal)
               Building                                                                Savings (6)
               (4)                                                                                      $946,961
                                                                                       $451,800         (California
                                                                                       HOME (7)

                                                                                       $107,200
                                                                                       CDBG (7)

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

               (4)

-------------- ------------- ------------- -------------- -------------- ------------- ---------------- -----------------
Rancheria      Rancheria     October       $1,886,829      8 2BR units   $463-565      $400,000         $1,334,550
               Gardens       1995                          5 3BR units   $526-644      Santa            (federal)
               Apartments                                  1 4BR unit    $716          Barbara Bank
                                                                                       & Trust (8)      $462,852
                                                                                                        (California)
                                                                                       $570,940
                                                                                       Santa
                                                                                       Barbara City
                                                                                       RDA (9)
-------------- ------------- ------------- -------------- -------------- ------------- ---------------- -----------------
Sycamore       Sycamore      August        $840,000       22 1BR units   $236          $814,800         $346,000
               Hills         1994                         2 2BR units    $262          RECDS(5)         (federal)
               Apartments
-------------- ------------- ------------- -------------- -------------- ------------- ---------------- -----------------
Woodlake       Valencia      February      $3,084,533     47 1 BR units  $202          $176,121         $2,226,740
               House         1996                                        $266          CCRC (10)        (federal)
                                                                         $290          $1,000,000
                                                                                       HOME (11)        $1,136,985
                                                                                                        (California)
-------------- ------------- ------------- -------------- -------------- ------------- ---------------- -----------------
Wills          Wills Point   September     $1,021,000      8 1BR         $240          $990,370         $447,050
Point          Crossing      1995                         units                        RECDS(5)         (federal)
               Apartments                                 28 2BR         $275
                                      units
-------------- ------------- ------------- -------------- -------------- ------------- ---------------- -----------------
</TABLE>
                                       7
<PAGE>


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

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

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

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

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

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

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

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

                                       8
<PAGE>

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

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


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

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

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

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

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

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

                                       9
<PAGE>

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

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

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

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

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

                                       10
<PAGE>

<TABLE>
<CAPTION>

--------------- -------------------------- ----------------- ----------------------------------------- -----------------
                                                                          Sharing Ratio:

                                                                                        Allocations
Local           Local                                                                   and Sale or    The
Limited         General                    Property                                     Refinancing    Partnership's
Partnership     Partners                   Manager (1)       Cash Flow (2)              Proceeds       Capital
                                                                                                       Contributions
<S>             <C>                        <C>               <C>                        <C>            <C>
                                                                                                       (3)
--------------- -------------------------- ----------------- -------------------------- -------------- -----------------
Chadron         Retro Development Inc.     Retro             The Partnership:  first    99/1 (4)       $482,865
                                           Management        $2,500                     25/75 (5)
                Most Worshipful Prince     Group, Inc.       LGP:  next $2,500
                Hall Grand Lodge                             The balance:
                                                             The Partnership:  25%
                                                             LGP:  75%
--------------- -------------------------- ----------------- -------------------------- -------------- -----------------
Colonial-       The S. P. Thomas Company   FPI Management,   1995-1998:  The            99/1  (4)      $2,990,645
Auburn          of Northern California,    Inc.              Partnership: first         51/49 (5)
                Inc.                                         $5,000,
                                                             balance to LGP;
                Project GO, Inc.                             1999-2002
                                                             The Partnership: first
                                                             $8,500 balance to LGP
                                                             Thereafter
                                                             The Partnership: 75%
                                                             LGP: 30%
--------------- -------------------------- ----------------- -------------------------- -------------- -----------------
Eagleville      Joseph A. Shepherd         Lockwood          The Partnership:           99/1 (4)       $78,920
                                           Realty, Inc.      Greater  15% or $300       50/50 (5)
                Kenneth M. Vitor                             LGP:  40%
                                                             Balance:  50/50
--------------- -------------------------- ----------------- -------------------------- -------------- -----------------
--------------- -------------------------- ----------------- -------------------------- -------------- -----------------
Maharlika       Daniels C. Logue           Daniels C.        The Partnership: 1/3       99/1  (4)      $1,546,018
                                           Logue             LGP:  2/3                  50/50 (5)
                Cyrus Youssefi             Development and
                                           Construction
                                           Co., Inc.
--------------- -------------------------- ----------------- -------------------------- -------------- -----------------
Pawnee          Joseph A. Shepherd         Lockwood          The Partnership:           99/1 (4)       $130,054
                                           Realty, Inc.      Greater  15% or $300       50/50 (5)
                Kenneth M. Vitor                             LGP:  40%
                                                             Balance:  50/50
--------------- -------------------------- ----------------- -------------------------- -------------- -----------------
Rancheria       Richard Bialosky           Real Estate       The Partnership: 1/3       99/1  (4)      $949,966
                                           Concepts, Inc.    LGP:  2/3                  50/50 (5)
                Detlev Peikert

                Community Housing
                Assistance Program, Inc.
--------------- -------------------------- ----------------- -------------------------- -------------- -----------------
Sycamore        Larry A. Swank             Sterling          The Partnership:  1st      99/1 (4)       $184,972
                                           Management        $500                       25/75 (5)
                Lance A. Swank             Ltd., Inc.        LGP:  2nd $1,500
                                    Balance:
                                                             The Partnership:  99%
                                     LGP: 1%
--------------- -------------------------- ----------------- -------------------------- -------------- -----------------
Woodlake        Philip R. Hammond, Jr.     The Management    The Partnership:  1/3      99/1 (4)       $1,798,247
                                           Company           LGP:  2/3                  51/49 (5)
--------------- -------------------------- ----------------- -------------------------- -------------- -----------------
Wills            1600 Capital              M-DC Group,        The Partnership: 1st       99/1  (4)     $234,247
Point            Company,                  Inc., dba         $815                        50/50 (5)
                Inc.                       Alpha             LGP: 2nd
                                           Management        $1,635
                                                             Balance: 99/1
--------------- -------------------------- ----------------- -------------------------- -------------- -----------------
</TABLE>
                                       11
<PAGE>

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

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

(3)      The  Partnership  will  make its  capital  contributions  to the  Local
         Limited  Partnership in stages, with each contribution due when certain
         conditions  regarding  construction  or  operations  of  the  Apartment
         Complex have been fulfilled.

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

(5) Reflects the  respective  percentage  interests of The  Partnership  and the
Local General  Partners in any net cash proceeds from sale or refinancing of the
Apartment Complexes,  after payment of the mortgage loan and other Local Limited
Partnership  obligations,  in the order set forth:  Chadron:  The  Partnership's
capital  contribution,  and the Local General  Partners' sales  preparation fee.
Colonial-Auburn:  The Partnership's capital contribution,  and the Local General
Partners'  sales  preparation  fee.   Eagleville:   The  Partnership's   capital
contribution,  and the Local General Partners' sales preparation fee. Maharlika:
The  Partnership's  capital  contribution,  and the capital  contribution of the
Local General Partners. Pawnee: The Partnership's capital contribution,  and the
Local General  Partners' sales  preparation  fee.  Rancheria:  The Local General
Partners' sales preparation fee, The Partnership's capital contribution, and the
capital contribution of the Local General Partners.  Sycamore: The Partnership's
capital  contribution,  and the Local General  Partners' sales  preparation fee.
Woodlake:  The  Partnership's  capital  contribution,   and  the  Local  General
Partners' sales preparation fee. Wills Point: : An amount equal to the financial
interest of the Local General  Partner,  as determined in accordance  with RECDS
regulations,    The   Partnership's    capital   contribution   (less   previous
distributions);  an  amount  equal to any  operating  deficit  loan to the Local
General Partner;  and the Local General Partner's sales preparation fee. As used
above, the term "sales  preparation fee" means a fee in the amount of 3% (6% for
Rancheria) of sale or refinancing proceeds.

                                       12
<PAGE>


Item 2.  Properties

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


Item 3.  Legal Proceedings

NONE

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

NONE

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.  Units  can  be  assigned  only  if  certain
requirements in the Partnership  Agreement of Limited Partnership  ("Partnership
Agreement") are satisfied.

(b) At December 31, 1997, there were 431 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.  The Limited  Partners  received the
following federal and California Low Income Housing Credits per Unit:

                           1997     1996
                           ----     ----
 Federal                     $86     $64
California                  $91       70
                           ----      ---
                           $177     $134
                           ====     ====

                                       13
<PAGE>

ITEM 6.  SELECTED FINANCIAL DATA
<TABLE>
<CAPTION>

                                                                                              
                                                    Years ended December 31,                    Period from December  
                                 -----------------------------------------------------------      19, 1994 to
                                                                                                  December 31
                                            1997                1996                 1995             1994
                                            ----                ----                 ----             ----
                                                                                  
                                                                                  
<S>                                     <C>              <C>                 <C>                <C>    

Revenues                                  $65,307          $147,254            $160,888            $  1,613

Partnership operating
expenses                                  (70,549)          (76,353)           (137,234)            (13,399)

Equity in losses from
limited partnerships                     (806,639)         (528,288)           (100,224)              2,212
                                         ---------         --------            --------               -----

Net loss                                $(811,881)        $(457,387)          $ (76,570)           $ (9,574)
                                          ========          ========            ========             =======

Net loss per weighted
 limited partner units                       $(70)            $ (39)               $ (9)               $(11)
                                               ==               ===                 ====                ===

Total assets                            $8,801,763      $11,216,917          $12,347,056          $5,198,745
                                         =========       ==========          ===========          ==========
                                                                                          
Investments in
 limited partnerships                   $7,622,211       $8,467,424           $8,494,018         $ 3,355,553
                                         =========        =========           ==========          ==========

Payable to
 limited partnerships                     $363,634       $1,929,597           $2,785,857            $584,640
                                           =======        =========           ==========            ========

Accrued fees and expenses
due to affiliates                           $6,445          $43,755             $102,526         $ 1,700,543
                                           =======           ======             ========         ===========

</TABLE>



The Partnership was organized on February 16, 1994 and had only minimal activity
until December 19, 1994, the date the Partnership's minimum offering requirement
was satisfied.  The  Partnership's  Offering of Units  commenced on September 1,
1994. Due to these factors and the nature of the  Partnership's  business (i.e.,
raising capital and acquiring Local Limited Partnership Interests over the first
several  years  of its  term),  the data  provided  above  will not be  directly
comparable  from year to year.  See  "Management's  Discussion  and  Analysis of
Financial Condition and Results of Operations."

                                       14
<PAGE>

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


Liquidity and Capital Resources
-------------------------------

Since inception the  Partnership has received  $11,090,050 in cash from the sale
of  Units.  Substantially  all of the  $11,090,050  has  been  committed  to the
purchase  price and  acquisiton  fees and cost of  investments  in Local Limited
Partnerships,  reserves and expenses of the offering. Although not presently the
case, the  Partnership  previously had identified its  investments in advance of
receipt of sufficient cash capital to fund the  investments.  As of December 31,
1997, the Partnership had made capital  contribution to Limited  Partnerships in
the  amount  of  approximately   $8,032,300  and  had  further   obligations  of
approximately $363,600.

As of December 31, 1997,  the  Partnership  was  indebted to  Associates  in the
amount of  approximately  $6,400.  The  component of such  indebtedness  were as
follows:  advances  to pay  front-end  fees of  approximately  $1,100 and assets
management fees of approximately, $5,400.

Overall,  as reflected in its Statement of Cash Flows, the Partnership had a net
decrease  in cash and cash  equivalents  of  approximately  $1,466,900.  for the
period ended December 31, 1997.  This decrease in cash consisted of cash used in
investing  activities  and  financing  activities  offset  by cash  provided  by
operations for the  Partnership  of  approximately  $(1,539,900),  $(37,300) and
$110,400,  respectively.  Cash used in investing activities consisted of capital
contributions  to Local  Limited  Partnerships  and  acquisitions  fees  paid to
Associates of approximately 1,555,200 and 3,600,  respectively.  Cash flows from
investing  activities consisted of distributions from Local Limited Partnerships
and changes in other assets of approximately  $6,000 and $12,900,  respectively.
Cash flows used in financing  activities  consisted of payments to affiliates of
the general partner. Cash provided by operating activities consisted of interest
income.  Cash used in operating  activities  consisted primarily of payments for
operating fees and expenses.  The major  components of all these  activities are
discussed in greater detail below.

Overall, as reflected in its Statement of Cash Flows, the Partnership had a
net decrease in cash and cash equivalents of approximately  $1,212,500.  for the
period ended December 31, 1996.  This decrease in cash consisted of cash used in
investing  activities  offset  by  cash  provided  by  financing  and  operating
activities of the Partnership of approximately ($1,369,900), $61,700 and $95,600
respectively.   Cash  used  in   investing   activities   consisted  of  capital
contributions  to Local  Limited  Partnerships  and  acquisitions  fees  paid to
Associates of approximately 1,341,200 and 41,600, respectively.  Cash flows from
investing  activities  consisted  of  changes in other  assets of  approximately
$12,900.  Cash provided by financing  activities consists of collection of notes
receivable  from the Limited  Partners  and refund of offering  costs  offset by
payments to affiliates or the General Partner of approximately $172,500, $69,800
and $(180,600).  Cash provided by operating activities consisted of primarily of
interest  income.  Cash used in  operating  activities  consisted  primarily  of
payments for  operating  fees and  expenses.  The major  components of all these
activities are discussed in greater detail below.

                                       15
<PAGE>

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

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

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

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

                                       16
<PAGE>

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

The  Partnership'  capital  needs and  resources  are expected to undergo  major
changes  during  the  first  several  years of  operations  as a  result  of the
completion  of  their   respective   offerings  of  Units  and   acquisition  of
investments.  Thereafter,  the  Partnership'  capital  needs and  resources  are
expected to be relatively stable over the holding periods of the investments.


Results of Operations
---------------------

As discussed  in Item 1 above,  as of December 31,  1997,  the  Partnership  had
acquired  interests in nine Local  Limited  Partnership  Interests.  Each of the
Apartment  Complexes  owned by such Local  Limited  Partnerships  has received a
reservation or an allocation for Low Income Low Income Housing Credits.

Consistent  with The  Partnership's  investment  objectives,  each Local Limited
Partnership is generating or is expected to generate Low Income Housing  Credits
for  a  period  of  approximately  ten  years,  commencing  with  completion  of
construction or  rehabilitation of its Apartment Complex and is generating or is
expected to generate losses until sale of the Apartment Complex.

                                       17
<PAGE>

As reflected on its  Statements of  Operations,  the  Partnership  had losses of
approximately  $811,900 and  $457,400 for the years ended  December 31, 1997 and
1996,  respectively.  The  component  items of revenue and expense are discussed
below.

Revenue.  Revenues  consisted  entirely  of interest  earned on Limited  Partner
Promissory  Notes  and  cash  deposits  held in  financial  institutions  (i) as
reserves,  or (ii) pending  investment in Local Limited  Partnerships.  Interest
revenue in future years will be a function of prevailing  interest rates and the
amount of cash balances.  It is anticipated  that The Partnership  will maintain
cash  reserves  in an amount  not  materially  in excess of the  minimum  amount
required by its Partnership Agreement, which is 3% of investor capital.

Expenses. The most significant component of operating expenses is expected to be
the Asset  Management  Fee. The Asset  Management Fee is equal to the greater of
$2,000 for each Apartment  Complex or 0.275 % of investor  capital,  and will be
increased based on changes in the Consumer Price Index. The Asset Management Fee
of  approximately  $31,625 was incurred in the years ended December 31, 1997 and
1996. The  Partnership  paid the General  Partner or its affiliates  $60,000 and
$45,000 of those fees in 1997 and 1996, respectively.

Amortization  expense consists of the amortization  over a period of 30 years of
the Acquisition Fee and other expenses  attributable to the acquisition of Local
Limited Partnership Interests.

Office expense consists of The Partnership's  administrative  expenses,  such as
accounting and legal fees, bank charges and investor reporting expenses.

Equity in Income from Local Limited  Partnerships.  The Partnership's  equity in
income from Local  Limited  Partnerships  is equal to  approximately  99% of the
aggregate net income of the Local Limited Partnerships  incurred after admission
of The Partnership as a limited partner thereof.

After rent-up,  the Local Limited  Partnerships  are expected to generate losses
during each year of operations;  this is so because,  although  rental income is
expected  to exceed  cash  operating  expenses,  depreciation  and  amortization
deductions claimed by the Local Limited  Partnerships are expected to exceed net
rental income.

                                       18
<PAGE>

Item 8.  Financial Statements and Supplementary Data
              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
                       (A California Limited Partnership)

                              FINANCIAL STATEMENTS

              For The Years Ended December 31, 1997, 1996 and 1995

                                      with

                      INDEPENDENT AUDITORS' REPORT THEREON


                                       19
<PAGE>








                          INDEPENDENT AUDITORS' REPORT



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


We have audited the  accompanying  balance sheets of WNC California  Housing Tax
Credits  IV,  L.P.,   Series  4  (a   California   Limited   Partnership)   (the
"Partnership")  as of December 31, 1997 and 1996, and the related  statements of
operations,  partners'  equity  (deficit)  and cash  flows for the  years  ended
December  31,  1997,  1996  and  1995.   These  financial   statements  are  the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial  statements based on our audits.  We did not audit
the financial  statements of the limited  partnerships  in which WNC  California
Housing Tax Credits IV, L.P., Series 4 is a limited partner.  These investments,
as discussed in Note 2 to the  financial  statements,  are  accounted for by the
equity method. The investments in these limited partnerships represented 87% and
75% of the total assets of WNC California Housing Tax Credits IV, L.P., Series 4
at December 31, 1997 and 1996, respectively.  Substantially all of the financial
statements  of the limited  partnerships  were audited by other  auditors  whose
reports have been furnished to us, and our opinion, insofar as it relates to the
amounts included for the limited partnerships, is based solely on the reports of
the other auditors.

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

In our opinion,  based on our audits and the reports of the other auditors,  the
financial statements referred to above present fairly, in all material respects,
the financial  position of WNC California Housing Tax Credits IV, L.P., Series 4
(a California  Limited  Partnership)  as of December 31, 1997 and 1996,  and the
results of its  operations  and its cash flows for the years ended  December 31,
1997,  1996  and  1995,  in  conformity  with  generally   accepted   accounting
principles.



                                                             /s/CORBIN & WERTZ
                                                             -----------------
                                                                CORBIN & WERTZ

Irvine, California
April 10, 1998


<PAGE>


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

                                 BALANCE SHEETS

                           December 31, 1997 and 1996

<TABLE>
<CAPTION>


                                                                               1997                    1996
                                                                         -----------------       ------------------

ASSETS
<S>                                                                    <C>                     <C>    
Cash and cash equivalents                                               $      1,147,906        $       2,614,756
Receivables from affiliates (Note 3)                                              31,646                  121,825
Investments in limited partnerships (Note 2)                                   7,622,211                8,467,424
Other assets                                                                           -                   12,912
                                                                         ---------------         ----------------

                                                                        $      8,801,763        $      11,216,917
                                                                         ===============         ================

LIABILITIES AND PARTNERS' EQUITY (DEFICIT)

Liabilities:
   Payable to limited partnerships (Note 4)                             $        363,634        $       1,929,597
   Accrued fees and advances due to General
    Partner and affiliate (Note 3)                                                 6,445                   43,755
                                                                         ---------------         ----------------

         Total liabilities                                                       370,079                1,973,352
                                                                         ---------------         ----------------

Partners' equity (deficit) (Note 6):
   General partner                                                               (16,856)                  (8,737)
   Limited partner (25,000 units authorized, 11,500 units
    issued and outstanding at December 31, 1997 and 1996)                      8,448,540                9,252,302
                                                                         ---------------         ----------------

         Total partners' equity                                                8,431,684                9,243,565
                                                                         ---------------         ----------------

                                                                        $      8,801,763        $      11,216,917
                                                                         ===============         ================
</TABLE>



                 See notes to accompanying financial statements
                                      FS-2
<PAGE>

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

                            STATEMENTS OF OPERATIONS

              For The Years Ended December 31, 1997, 1996 and 1995



<TABLE>
<CAPTION>
                                                            1997                 1996                  1995
                                                      -----------------    ------------------    ------------------
<S>                                                <C>                   <C>                   <C>    

Interest income                                     $          65,307     $        147,254      $         160,888
                                                     ----------------      ---------------       ----------------

Operating expenses:
   Amortization                                                25,419               24,865                 16,056
   Partnership management fees (Note 3)                        31,625               31,625                 31,625
   Interest expense (Note 3)                                        -                    -                 79,853
   Office                                                      13,505               19,863                  9,700
                                                     ----------------      ---------------       ----------------

         Total operating expenses                              70,549               76,353                137,234
                                                     ----------------      ---------------       ----------------

(Loss) income from operations                                  (5,242)              70,901                 23,654

Equity in losses from limited partnerships
 (Note 2)                                                    (806,639)            (528,288)              (100,224)
                                                     ----------------      ---------------       ----------------

Net loss                                            $        (811,881)    $       (457,387)      $        (76,570)
                                                     ================      ===============        ===============

Net loss allocable to:
   General partner                                  $          (8,119)    $         (4,574)      $           (766)
                                                     ================      ===============        ===============
   Limited partners                                 $        (803,762)    $       (452,813)      $        (75,804)
                                                     ================      ===============        ===============

Net loss per weighted limited partner units         $         (69.89)     $         (39.38)      $         (8.68)
                                                     ===============       ===============        ==============

Outstanding weighted limited partner
 units                                                         11,500               11,500                  8,735
                                                     ================      ===============        ===============

</TABLE>

                 See notes to accompanying financial statements
                                      FS-3
<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, 1997, 1996 and 1995


<TABLE>
<CAPTION>

                                                      General Partner      Limited Partners
                                                                                                       Total
                                                      -----------------    ------------------    ------------------
<S>                                                 <C>                   <C>                   <C>    

Equity (deficit), January 1, 1995                   $          (3,015)    $      1,703,189       $      1,700,174


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

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

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

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

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

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

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

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

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

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

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

Equity (deficit), December 31, 1997                 $         (16,856)    $      8,448,540       $      8,431,684
                                                     ================      ===============        ===============


</TABLE>

                 See notes to accompanying financial statements
                                      FS-4
<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, 1997, 1996 and 1995




<TABLE>
<CAPTION>
                                                            1997                 1996                  1995
                                                      -----------------    ------------------    ------------------
<S>                                                <C>                    <C>                    <C>    

Cash flows from operating activities:
   Net loss                                         $        (811,881)    $       (457,387)      $        (76,570)
   Adjustments to reconcile net loss to
    net cash provided by operating activities:
       Amortization                                            25,419               24,865                 16,056
       Equity in losses of limited partnerships               806,639              528,288                100,224
       Change in receivables from affiliates                   90,179                    -                      -
       Change in accrued interest payable                           -                    -                (13,388)
                                                     ----------------      ---------------        ---------------

   Net cash provided operating activities                     110,356               95,766                 26,322
                                                     ----------------      ---------------        ---------------

Cash flows from investing activities:
   Investments in limited partnerships                     (1,555,241)          (1,341,247)            (2,501,693)
   Distributions                                                6,000                    -                      -
   Acquisition fees                                            (3,567)             (41,572)              (551,835)
   Loans receivable                                                 -                    -              1,098,608
   Other assets                                                12,912               12,912                (24,211)
                                                     ----------------      ---------------        ---------------

   Net cash used in investing activities                   (1,539,896)          (1,369,907)            (1,979,131)
                                                     ----------------      ---------------        ---------------

Cash flows from financing activities:
   Payments to affiliates or general partner, net             (37,310)            (180,596)            (1,598,017)
   Capital contributed                                              -                    -              9,173,250
   Offering costs                                                   -               69,779             (1,079,981)
   Repayments from loan payable                                     -                    -             (1,200,000)
   Collection on notes receivable                                   -              172,500                      -
                                                     ----------------      ---------------        ---------------

   Net cash (used in) provided by financing
    activities                                                (37,310)              61,683              5,295,252
                                                     ----------------      ---------------        ---------------

Net change in cash                                         (1,466,850)          (1,212,458)             3,342,443

Cash and cash equivalents, beginning of year                2,614,756            3,827,214                484,771
                                                     ----------------      ---------------        ---------------

Cash and cash equivalents, end of year              $       1,147,906     $      2,614,756       $      3,827,214
                                                     ================      ===============        ===============
</TABLE>

Continued
                 See notes to accompanying financial statements
                                       FS-5
<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, 1997, 1996 and 1995



<TABLE>
<CAPTION>
 
                                                            1997                 1996                  1995
                                                      -----------------    ------------------    ------------------

SUPPLEMENTAL DISCLOSURE OF
 NONCASH FINANCING AND INVESTING
 ACTIVITY:
<S>                                                <C>                   <C>                     <C>    

The Partnership has incurred but not paid -
   Capital contributions in connection with
    with investments in limited partnerships        $               -     $        382,865       $      2,201,217
                                                     ================      ===============        ===============

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


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


                See accompanying notes to financial statements
                                      FS-6
<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, 1997, 1996 and 1995




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

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

WNC California  Housing Tax Credits IV, L.P., Series 4 (the  "Partnership")  was
formed under the  California  Revised  Limited  Partnership  Act on February 16,
1994, and commenced  operations on December 19, 1994. The Partnership was formed
to invest  primarily in other  limited  partnerships  which will own and operate
multi-family housing complexes that will qualify for low income housing credits.

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

The partnership  agreement  authorized the sale of up to 25,000 units of limited
partnership interest (Units) at $1,000 per Unit. The offering of Units concluded
in August 1995 at which time 11,500  Units  representing  subscriptions,  net of
discounts  of  $400,950  for  purchases  of 100 units or more,  in the amount of
$11,099,050  had  been  accepted.  The  General  Partner  has a 1%  interest  in
operating profits and losses,  taxable income and loss and in cash available for
distribution  from the  Partnership.  The limited partners will be allocated the
remaining 99% of these items in proportion to their respective investments.

After the limited  partners  have received  proceeds from a sale or  refinancing
equal to their capital  contributions and their return on investment (as defined
in  the   Partnership   Agreement)  and  the  General  Partner  has  received  a
subordinated disposition fee (as described in Note 3 below), any additional sale
or  refinancing  proceeds will be  distributed  90% to the limited  partners (in
proportion to their respective investments) and 10% to the General Partner.

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

                                      FS-7
<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

              For The Years Ended December 31, 1997, 1996 and 1995



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

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

The Partnership  accounts for its investment in limited  partnerships  using the
equity method of  accounting,  whereby the  Partnership  adjusts its  investment
balance for its share of the limited partnerships' results of operations and for
any distributions  received.  Costs incurred by the Partnership in acquiring the
investment in limited partnerships are capitalized as part of the investment and
amortized over 30 years (see Note 3).

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

Cash and Cash Equivalents
-------------------------

The  Partnership  considers all investments  with remaining  maturities of three
months or less when purchased to be cash  equivalents.  The  Partnership  had no
cash  equivalents at December 31, 1997. The  Partnership  had $1,835,700 of cash
equivalents at December 31, 1996.

Concentration of Credit Risk
----------------------------

As of December 31, 1997,  the  Partnership  maintained  cash balances at certain
financial institutions in excess of amounts insured by Federal agencies.

Offering Expenses
-----------------

Offering  expenses consist of underwriting  commissions,  legal fees,  printing,
filing and  recordation  fees, and other costs  incurred in connection  with the
selling of limited partnership interests in the Partnership. The General Partner
is  obligated  to pay all  offering  and  organization  costs in  excess  of 15%
(including sales commissions) of the total offering proceeds.  Offering expenses
are reflected as a reduction of limited  partners'  capital.  As of December 31,
1997, the Partnership had incurred offering and selling expenses of $757,234 and
$554,470,  respectively  (see  Note 3).  No  organizational  expenses  have been
incurred to date.

Use of Estimates
----------------

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

                                      FS-8
<PAGE>
             WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

              For The Years Ended December 31, 1997, 1996 and 1995


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

Net Loss Per Limited Partner Units
----------------------------------

Net loss per limited partner unit is computed by dividing the limited  partners'
share of net loss by the weighted  number of limited  partner units  outstanding
during the period.

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

At December 31, 1997, the Partnership had acquired limited partnership interests
in  nine  limited   partnerships  which  own  and  operate  apartment  complexes
consisting  of 298  apartment  units.  The  accounting  policies  of the limited
partnerships are consistent with the Partnership.  The Partnership, as a limited
partner, is generally entitled to 99% of the operating profits and losses of the
limited partnership.

The  Partnership's  investment  in  the  limited  partnership  as  shown  in the
accompanying  balance sheet as of December 31, 1997 and 1996,  is  approximately
$1,061,000 and $2,388,000,  respectively,  greater than the Partnership's equity
as shown in the limited partnership's  financial statements.  This difference is
due to  acquisition  and  selection  costs  related  to the  acquisition  of the
investments that have been capitalized in the Partnership's  investment  account
and will be amortized  over 30 years and capital  contributions  accrued but not
paid (Note 3).

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

                                                                               1997                    1996
                                                                         -----------------       ------------------
<S>                                                                    <C>                     <C>                      

Investments, beginning of year                                          $      8,467,424        $       8,494,018

Total capital contributions made or accrued, net of
 tax credit adjustments                                                          (10,722)                 484,987

Capitalized acquisition costs and acquisition fees (see Note 3)                    3,567                   41,572

Distributions                                                                     (6,000)                       -

Amortization of acquisition fees and costs                                       (25,419)                 (24,865)

Equity in losses in limited partnerships                                        (806,639)                (528,288)
                                                                         ---------------         ----------------

Investments, end of year                                                $      7,622,211        $       8,467,424
                                                                         ===============         ================
</TABLE>

                                      FS-9
<PAGE>
             WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

              For The Years Ended December 31, 1997, 1996 and 1995


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

                        COMBINED CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>

                                                                               1997                    1996
                                                                         -----------------       ------------------

ASSETS
<S>                                                                    <C>                     <C>   

Buildings and improvements, net of accumulated depreciation
  for 1997 and 1996 of $1,223,000 and $605,000,
  respectively                                                          $     14,553,000        $      15,138,000
Land                                                                             916,000                  911,000
Construction in progress                                                       1,181,000                   37,000
Other assets                                                                     616,000                  808,000
                                                                         ---------------         ----------------

         Total assets                                                   $     17,266,000        $      16,894,000
                                                                         ===============         ================

LIABILITIES

Mortgage and construction loans payable                                 $      9,164,000        $       8,286,000
Other liabilities (including payables to affiliates
  of $717,000 and $1,288,000 for 1997 and 1996,
  respectively)                                                                1,496,000                2,491,000
                                                                         ---------------         ----------------

         Total liabilities                                                    10,660,000               10,777,000
                                                                         ---------------         ----------------

PARTNERS' CAPITAL

WNC California Housing Tax Credits IV, L.P., Series 4                          6,561,000                6,079,000
Other partners                                                                    45,000                   38,000
                                                                         ---------------         ----------------

         Total partners' capital                                               6,606,000                6,117,000
                                                                         ---------------         ----------------

                                                                        $     17,266,000        $      16,894,000
                                                                         ===============         ================
</TABLE>



                                      FS-10
<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, 1997, 1996 and 1995


NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued
-------------------------------------------------------

                   COMBINED CONDENSED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>

                                                                 1997               1996                1995
                                                            ---------------    ----------------    ----------------
<S>                                                       <C>                 <C>                 <C>   

Total revenues                                             $    1,045,000      $      842,000     $       217,000
                                                            -------------       -------------      --------------

Expenses:
   Operating expenses                                             705,000             521,000             104,000
   Interest expense                                               535,000             392,000              72,000
   Depreciation and amortization                                  619,000             463,000             142,000
                                                            -------------       -------------      --------------

         Total expenses                                         1,859,000           1,376,000             318,000
                                                            -------------       -------------      --------------

Net loss                                                   $     (814,000)     $     (534,000)    $      (101,000)
                                                            =============       =============      ============== 

Net loss allocable to the Partnership                      $     (807,000)     $     (528,000)    $      (100,000)
                                                            =============       =============      ============== 
</TABLE>


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

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

As of December 31, 1997, receivables from affiliates consist of amounts due from
an affiliate  related to certain costs paid by the Partnership on behalf of such
affiliate.  As of  December  31,  1996,  receivables  from  affiliates  consists
primarily  of amounts due from WNC  California  Housing  Tax  Credits IV,  L.P.,
Series 5 related to the allocation of offering expenses incurred,  as defined in
the Partnership Agreement. In connection with such allocation, offering expenses
were reduced by $69,779 during the year ended December 31, 1996.

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

         Acquisition  fees  of 7%  of  the  gross  proceeds  from  the  sale  of
         Partnership  units as compensation for services  rendered in connection
         with the acquisition of limited  partnerships.  As of December 31, 1997
         and 1996,  acquisition fees of $654,580 have been incurred and included
         in limited partnership investment. Accumulated amortization amounted to
         $57,320 and $35,499 as of December 31, 1997 and 1996, respectively.

                                      FS-11
<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, 1997, 1996 and 1995


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

         Reimbursement  of costs incurred by an affiliate of the General Partner
         in  connection  with the  acquisition  of limited  partnerships.  These
         reimbursements  will  not  exceed  1.0% of the  gross  proceeds.  As of
         December 31, 1997 and 1996, the  Partnership  has incurred  acquisition
         costs of $108,622 and $107,538,  respectively, which have been included
         in limited partnership investment.  Accumulated amortization was $9,016
         and $5,423 for 1997 and 1996, respectively.

         An  annual  asset  management  fee equal to the  greater  amount of (i)
         $2,000 for each apartment complex, or (ii) 0.275% of gross proceeds. In
         either case,  the fee will be decreased or increased  annually based on
         changes to the  Consumer  Price  Index.  However,  in no event will the
         maximum  amount  exceed  0.2% of the  invested  assets  (defined as the
         Partnership's  capital  contributions plus its allocable  percentage of
         the mortgage debt  encumbering the apartment  complexes) of the limited
         partnerships.  Management  fees of $31,625 were incurred for 1997, 1996
         and 1995.  Management fees of $60,000 and $45,000 were paid during 1997
         and 1996, respectively. No amounts were paid during 1995.

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

Accrued fees and advances due the General  Partner and affiliate are  summarized
as follows:
<TABLE>
<CAPTION>

                                                                               1997                    1996
                                                                         -----------------       ------------------
<S>                                                                    <C>                      <C>    

Acquisition fees                                                        $              -        $          23,993

Advances made for acquisition costs, organizational,
 offering and selling expenses                                                     1,055                    1,512

Asset management fees                                                              5,390                   18,250
                                                                         ---------------         ----------------

                                                                        $          6,445        $          43,755
                                                                         ===============         ================
</TABLE>

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

                                      FS-12
<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, 1997, 1996 and 1995


NOTE 4 - PAYABLE TO LIMITED PARTNERSHIPS
----------------------------------------

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

NOTE 5 - INCOME TAXES
---------------------

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

NOTE 6 - SUBSCRIPTIONS AND INVESTOR NOTES RECEIVABLE
----------------------------------------------------

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


                                      FS-13


         
<PAGE>

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

         NONE

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 Associates  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.  Substantially  all of the  shares  of  Associates  are owned by
Wilfred N. Cooper,  Sr., through the Cooper Revocable Trust, and John B. Lester,
Jr., through the Lester Family Trust.

WILFRED  N.  COOPER,  SR.,  age 67,  has been the  principal  shareholder  and a
Director of WNC & ASSOCIATES,  INC. since its  organization  in 1971, of SHELTER
RESOURCE  CORPORATION since its organization in 1981 and of WNC RESOURCES,  INC.
from its organization in 1988 through its acquisition by WNC & ASSOCIATES,  INC.
in 1991,  serving  as  President  of  those  companies  until  1992 and as Chief
Executive Officer since 1992, and has been a Director of WNC CAPITAL CORPORATION
since its organization. He is also a general partner with WNC & ASSOCIATES, INC.
in WNC FINANCIAL GROUP,  L.P. and WNC TAX CREDIT PARTNERS,  L.P. During 1970 and
1971  he  was  a  principal  of  Creative  Equity  Development  Corporation,   a
predecessor of WNC & ASSOCIATES,  INC., and of Creative  Equity  Corporation,  a
real estate investment firm. For 12 years prior to that, Mr. Cooper was employed
by Rockwell  International  Corporation,  last serving as its manager of housing
and urban  developments.  Previously,  he had  responsibility  for new  business
development including factory-built housing evaluation and project management in
urban  planning  and  development.  Mr.  Cooper is a Director  of the  Executive
Committee  of the  National  Association  of  Home  Builders  (NAHB)  and a past
Chairman of the NAHB's Rural Housing Council, a Director of the National Housing
Conference,  a Director of the Affordable  Housing Tax Credit Coalition,  a past
President of the California Council of Affordable Housing (CCAH) (formerly Rural
Builders  Council of  California),  and a past President of Southern  California
Chapter II of the Real Estate  Syndication and Securities  Institute  (RESSI) of
the National  Association of Realtors  (NAR).  Mr. Cooper  graduated from Pomona
College in 1956 with a Bachelor of Arts degree.

JOHN B. LESTER, JR., age 64, has been a shareholder, a Director and Secretary of
WNC & ASSOCIATES,  INC. since 1986,  Executive Vice President from 1986 to 1992,
and President and Chief Operating Officer since 1992, and has been a Director of
WNC CAPITAL CORPORATION since its organization. He was a shareholder,  Executive
Vice  President,  Secretary  and a Director  of WNC  RESOURCES,  INC.  from 1988
through its acquisition by WNC & ASSOCIATES,  INC. in 1991. From 1973 to 1986 he
was Chairman of the Board and Vice  President or President of E & L  Associates,
Inc., a provider of engineering  and  construction  services to the oil refinery
and petrochemical industries which he co-founded in 1973. Mr. Lester is a former
Director of the Los Angeles  Chapter of the  Associated  General  Contractors of
California.  His  responsibilities  at WNC & ASSOCIATES,  INC.  include property
acquisitions and company operations. Mr. Lester graduated from the University of
Southern  California  in 1956 with a Bachelor  of Science  degree in  Mechanical
Engineering.

                                       20
<PAGE>

DAVID N. SHAFER,  age 45, has been a Director of WNC &  ASSOCIATES,  INC.  since
1997, a Senior Vice President  since 1992,  and General  Counsel since 1990, and
served as Asset  Management  Director from 1990 to 1992, and has been a Director
and Secretary of WNC Management, Inc. since its organization.  Previously he was
employed as an associate attorney by the law firms of Morinello,  Barone, Holden
& Nardulli  from 1987 until  1990,  Frye,  Brandt & Lyster from 1986 to 1987 and
Simon and Sheridan from 1984 to 1986.  Mr. Shafer is a Director and President of
CCAH, a member of NAHB's Rural  Housing  Council,  a past  President of Southern
California Chapter II of RESSI, a past Director of the Council of Affordable and
Rural Housing and Development  and a member of the State Bar of California.  Mr.
Shafer graduated from the University of California at Santa Barbara in 1978 with
a Bachelor of Arts  degree,  from the New  England  School of Law in 1983 with a
Juris Doctor  degree and from the  University of San Diego in 1986 with a Master
of Law degree in Taxation.

WILFRED N. COOPER,  JR.,  age 35, has been  employed by WNC &  ASSOCIATES,  INC.
since 1988 and has been a Director since 1997  Executive  Vice  President  since
1998, and a Senior Vice President  since 1992. Mr. Cooper heads the  Acquisition
Originations  department  at  WNC,  has  been  President  of,  and a  registered
principal with, WNC CAPITAL  CORPORATION,  a member firm of the NASD,  since its
organization,  and  has  been  a  Director  of WNC  Management  Inc.  since  its
organization.  Previously,  he was employed as a government affairs assistant by
Honda North America from 1987 to 1988, and as a legal  assistant with respect to
Federal  legislative and regulatory  matters by the law firm of Schwartz,  Woods
and Miller from 1986 to 1987. Mr. Cooper is an alternate  director and member of
NAHB's Rural Housing Council and serves as Chairman of its Membership Committee.
Mr.  Cooper  graduated  from The American  University in 1985 with a Bachelor of
Arts degree.

THEODORE M. PAUL, age 42, has been Vice President - Finance of WNC & ASSOCIATES,
INC. since 1992 and Chief Financial  Officer since 1990, and has been a Director
and Chief  Financial  Officer of WNC  Management  Inc.  since its  organization.
Previously,  he was a Vice  President  and Chief  Financial  Officer of National
Partnership  Investments  Corp.,  a sponsor  and general  partner of  syndicated
partnerships  investing in affordable  rental housing qualified for tax credits,
from 1986 until 1990, and was employed as an associate by the  accounting  firms
of Laventhol & Horwath,  during 1985, and Mann & Pollack Accountants,  from 1979
to 1984.  Mr. Paul is a member of the  California  Society of  Certified  Public
Accountants  and the American  Institute of Certified  Public  Accountants.  His
responsibilities  at WNC &  ASSOCIATES,  INC.  include  supervision  of investor
partnership  accounting  and tax reporting  matters and monitoring the financial
condition  of the  Local  Limited  Partnerships  in which the  Partnership  will
invest.  Mr.  Paul  graduated  from the  University  of  Illinois in 1978 with a
Bachelor of Science degree and is a Certified Public  Accountant in the State of
California.

THOMAS J. RIHA,  age 43, has been Vice  President  - Asset  Management  of WNC &
ASSOCIATES, INC. since 1994, and has been a Director and Chief Executive Officer
of WNC  Management  Inc.  since  its  organization.  He has more  than 17 years'
experience in commercial and multi-family real estate investment and management.
Previously,  Mr.  Riha was  employed  by Trust  Realty  Advisor,  a real  estate
acquisition  and  management  company,  from 1988 to 1994,  last serving as Vice
President - Operations.  His responsibilities at WNC & ASSOCIATES,  INC. include
monitoring  the  operations  and  financial   performance   of,  and  regulatory
compliance  by,  properties in the WNC  portfolio.  Mr. Riha  graduated from the
California  State  University,  Fullerton in 1977 with a Bachelor of Arts degree
(cum laude) in Business Administration with a concentration in Accounting and is
a Certified  Public  Accountant in the State of  California  and a member of the
American Institute of Certified Public Accountants.

                                       21
<PAGE>

SY P. GARBAN, age 52, has 20 years' experience in the real estate securities and
syndication industry. He has been associated with WNC & ASSOCIATES,  INC., since
1989,  serving as National Sales  Director  through 1992 and as Vice President -
National  Sales since  1992.  Previously,  he was  employed  as  Executive  Vice
President by MRW,  Inc.,  Newport  Beach,  California  from 1980 to 1989, 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.

CARL FARRINGTON,  age 55, has been associated with WNC & ASSOCIATES,  INC. since
1993, and has served as Director  Originations  since 1994.  Mr.  Farrington has
more  than 12  years'  experience  in  finance  and  real  estate  acquisitions.
Previously,  he served as Acquisitions Director for The Arcand Company from 1991
to 1993, and as Treasurer and Director of Finance and Administrator for Polytron
Corporation  from 1988 to 1991.  Mr.  Farrington is a member and Director of the
Council  of  Affordable  and  Rural  Housing  and  Development.  Mr.  Farrington
graduated from Yale  University  with a Bachelor of Arts degree in 1966 and from
Dartmouth College with a Master of Business Administration in 1970.

DAVID TUREK, age 43, has been Director - Originations of WNC & ASSOCIATES,  INC.
since 1996. He has 23 years' experience in real estate finance and acquisitions.
Previously,  from 1995 to 1996 Mr. Turek  served as a consultant  for a national
Low  Income  Housing  Credit  sponsor  where  he  was  responsible  for  on-site
feasibility  studies and due  diligence  analyses of Low Income  Housing  Credit
properties,  from 1992 to 1995 he served as Executive Vice President for Levcor,
Inc., a  multi-family  development  company,  and from 1990 to 1992 he served as
Vice  President  for the Paragon Group where he was  responsible  for Low Income
Housing  Credit  development  activities.  Mr.  Turek  graduated  from  Southern
Methodist University in 1976 with a Bachelor of Business Administration degree.

N. PAUL BUCKLAND, age 36, has been employed by WNC & ASSOCIATES, INC. since 1994
and  currently  serves  as  Vice  President  -  Acquisitions.  He has 11  years'
experience  in  analysis  pertaining  to the  development  of  multi-family  and
commercial  properties.   Previously,  from  1986  to  1994  he  served  on  the
development  team of the Bixby Ranch which  constructed  more than 700 apartment
units  and more than one  million  square  feet of  "Class  A"  office  space in
California  and  neighboring  states,  and from 1984 to 1986 he served 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.

MICHELE M. TAYLOR,  age 43, has been  employed by WNC & ASSOCIATES,  INC.  since
1986,  serving as a paralegal and office manager,  and currently is the Investor
Services  Director.  Previously she was  self-employed  between 1982 and 1985 in
non-financial  services  activities  and from 1978 to 1981 she was employed as a
paralegal by a law firm which  specialized  in real estate  limited  partnership
transactions.  Ms. Taylor graduated from the University of California, Irvine in
1976 with a Bachelor of Arts degree.

THERESA I. CHAMPANY,  age 40, has been employed by WNC & ASSOCIATES,  INC. since
1989 and currently is the Marketing Services Director and a registered principal
with WNC  CAPITAL  CORPORATION.  Previously,  she was  employed  as  Manager  of
Marketing  Services  by August  Financial  Corporation  from 1986 to 1989 and as
office manager and Assistant to the Vice  President of Real Estate  Syndications
by  McCombs  Securities  Co.,  Inc.  from 1979 to 1986.  Ms.  Champany  attended
Manchester (Conn.) Community College from 1976 to 1978.

KAY L.  COOPER,  age 61, has been an officer and  Director of WNC &  ASSOCIATES,
INC. since 1971 and of WNC RESOURCES,  INC. from 1988 through its acquisition by
WNC & ASSOCIATES, INC. in 1991. Mrs. Cooper has also been the sole proprietor of
Agate 108, a manufacturer and retailer of home accessory  products,  since 1975.
She is the wife of Wilfred N. Cooper,  Sr., the mother of Wilfred N. Cooper, Jr.
and the sister of John B. Lester,  Jr. Mrs. Cooper graduated from the University
of Southern California in 1958 with a Bachelor of Science degree.

                                       22
<PAGE>

Item 11.  Executive Compensation

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

(a) Organization and Offering Expenses. The Partnership paid the General Partner
or its affiliates as of December 31, 1997 $1,311,700,  consisting of commissions
and other fees and expenses of the  Partnership's  offering of Units of $554,500
and  $757,200,  respectively.  Of the total paid to the  General  Partner or its
affiliates,  approximately  $1,081,700  was  paid  (reallowed)  to  unaffiliated
persons participating in the Partnership's  offering or rendering other services
in connection with the Partnership's offering.

(b)  Acquisition  fees in an  amount  equal to 7% of the gross  proceeds  of the
Partnership's  offering  ("Gross  Proceeds").  Through  December 31,  1997,  the
aggregate  amount of  acquisition  fees of $654,580 have been paid or accrued to
the General Partner or its affiliates.

(c) The  Partnership  reimbursed  the General  Partner or its  affiliates  as of
December 31, 1997 for acquisition expenses expended by such persons on behalf of
the Partnership in the amounts $108,622.

(d) An annual asset management fee in an amount equal to 0.2% of invested assets
(the sum of the Partnership's  Investment in Local Limited Partnership Interests
and the Partnership's allocable share of the amount of the mortgage loans on and
other debts  related to, the  Apartment  Complexes  owned by such Local  Limited
Partnerships.).  Fees of  $31,625  were  incurred  for  1997,  1996,  and  1995,
respectively. The Partnership paid the General Partner or its affiliates $60,000
and $45,000 of those fees in 1997 and 1996,  respectively.  No amounts were paid
in 1995.

(e) A  subordinated  disposition  fee in an amount equal to 1% of the sale price
received in connection  with the sale or disposition of an Apartment  Complex or
Local  Limited  Partnership  Interest.  Subordinated  disposition  fees  will be
subordinated to the prior return of the Limited Partners' capital  contributions
and  payment of the Return on  Investment  to the Limited  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.

(f) The General Partner was allocated federal and California Housing Tax Credits
as follows:

                  1997              1996

Federal           $9,950            $7,476
California        10,544             8,086
                 -------           -------
                  20,494            15,562
                  ======            ======

                                       23
<PAGE>

Item 12.  Security Ownership of Certain Beneficial Owners and Management

Security Ownership of Certain Beneficial Owners

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

Security Ownership of Management

(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  Associates  or its  affiliates  own directly or  beneficially  any
limited partnership interests in the Partnership.

(c)  Changes in Control

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

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


Item 13.  Certain Relationships and Related Transactions

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

                                       24
<PAGE>

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

Financial Statements:

Report of independent public accountants.

Balance sheet as of December 31, 1997 and 1996.

Statements of Operations for the years ended December 31, 1997, 1996, and 1995.

Statement of Partners'  Equity for the years ended December 31, 1997,  1996, and
1995.

Statements of Cash Flows for the years ended December 31, 1997, 1996, and 1995.

Notes to Financial Statements.

Financial Statement Schedules:
   N/A

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

(10)     Material contracts:

10.1 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.

                                       25
<PAGE>

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)

Reports on Form 8-K

No reports on form 8-K were filed during the fourth  quarter ended  December 31,
1997


                                       26
<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: April 14, 1998



By: /s/ Theodore M. Paul
-----------------------------------------------------
Theodore M. Paul  Vice-President Finance of WNC & Associates, Inc.

Date: April 14, 1998





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


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

Date: April 14, 1998


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

Date: April 14, 1998


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

Date: April 14, 1998


                                       27