FORM 10-K

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   (Mark One)

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

                 For the fiscal year ended _____________________

                                       OR

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

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

                        Commission file number: 33-76970


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

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


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

                                 (714) 662-5565

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

                                      NONE

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

                      UNITS OF LIMITED PARTNERSHIP INTEREST

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

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

                                       1
<PAGE>


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

                                  INAPPLICABLE


                       DOCUMENTS INCORPORATED BY REFERENCE

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

                                      NONE


















                                       2


<PAGE>
PART I.

Item 1.  Business

Organization

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

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

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

Description of Business

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

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


                                       3
<PAGE>
As of  March  31,  1999,  the  Partnership  had  invested  in 10  Local  Limited
Partnerships.  Each of these Local Limited  Partnerships  owns a Housing Complex
that is eligible for the federal Low Income Housing Credit and four of them were
eligible for the California Low Income  Housing  Credits.  Certain Local Limited
Partnerships  may  also  benefit  from  government  programs  promoting  low- or
moderate-income housing.

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

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

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

Item 2.  Properties

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

                                       4
<PAGE>
<TABLE>
<CAPTION>
                                                    ------------------------------  ------------------------------------------------
                                                         As of March 31, 1999                    As of December 31, 1998
                                                    ------------------------------  ------------------------------------------------
                                                     Partnership's                                        Estimated    Encumbrances
                                                     Total Investment  Amount of                          Low Income   of Local
                               General Partner       in Local Limited  Investment    Number of  Occu-     Housing      Limited
Partnership Name   Location    Name                  Partnerships      Paid to Date  Units      pancy     Credits      Partnerships
------------------------------------------------------------------------------------------------------------------------------------
<S>                <C>         <C>                       <C>           <C>             <C>      <C>   <C>             <C>
Chadron            Chadron,    Douglas E. Hiner          $    483,000  $   391,000     16       94%   $   1,029,000   $     800,000
Apartments I, L.P. Nebraska


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

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

Havana Associates  Havana,     Joseph A. Shepard              252,000      202,000      -        -              -               -
I, L.P.            Illinois

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

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

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

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

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

Woodlake Valencia  Woodlake,   Philip R. Hammond, Jr.
Partners           California  and Diane M. Hammond         1,798,000    1,798,000     47       89%       2,522,000         952,000
                                                           ----------   ----------   ----      ----      ----------      ----------
                                                         $  8,614,000  $ 8,472,000    298       95%   $  12,084,000   $   9,041,000
                                                           ==========   ==========   ====      ====      ==========      ==========

</TABLE>
                                       5

<PAGE>


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

                                                             Low Income Housing
                                       Rental        Net     Credit Allocated to
Partnership Name                       Income        Loss    Partnership
--------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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




                                       6
<PAGE>
Item 3.  Legal Proceedings

NONE

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

NONE

PART II.

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

Item 5a.

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

(b)  At March 31, 1999, there were 429 Limited Partners.

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

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

Item 5b.

NOT APPLICABLE

Item 6. Selected Financial Data

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

                                 March 31                                    December 31
                         ------------------------  ---------------------------------------------------------------
                               1999         1998         1998         1997         1996         1995         1994
                               ----         ----         ----         ----         ----         ----         ----
                                      (Unaudited)
ASSETS
<S>                    <C>          <C>          <C>          <C>          <C>          <C>          <C>
Cash and cash
  equivalents          $    675,871 $  1,161,152 $    760,343 $  1,147,906 $  2,614,756 $  3,827,214 $    484,771
Receivables from
  affiliates                      -       31,646            -       31,646      121,825            -            -
Subscriptions
  receivable                      -            -            -            -            -            -      258,200
Loans receivable                  -            -      201,611            -            -            -    1,098,608
Investments in limited
  partnerships, net       6,899,934    7,391,045    6,845,203    7,622,211    8,467,424    8,494,018    3,355,553
Other assets                      -          189            -            -       12,912       25,824        1,613
                         -----------  -----------  -----------  -----------  -----------  -----------  -----------

                       $  7,575,805 $  8,584,032 $  7,807,157 $  8,801,763 $ 11,216,917 $ 12,347,056 $  5,198,745
                         ===========  ===========  ===========  ===========  ===========  ===========  ===========
LIABILITIES

Loan payable           $          - $          - $          - $          - $          - $          - $  1,200,000
Accrued interest
  payable                         -            -            -            -            -            -       13,388
Payable to limited
  partnerships              142,124      363,634       91,746      363,634    1,929,597    2,785,857      584,640
Accrued fees and
  expenses
  due to general
  partner
  and affiliates            (19,496)      18,415       62,779        6,445       43,755      102,526    1,700,543

PARTNERS' EQUITY          7,453,177    8,201,983    7,652,632    8,431,684    9,243,565    9,458,673    1,700,174
                         -----------  -----------  -----------  -----------  -----------  -----------  -----------

                       $  7,575,805 $  8,584,032 $  7,807,157 $  8,801,763 $ 11,216,917 $ 12,347,056 $  5,198,745
                         ===========  ===========  ===========  ===========  ===========  ===========  ===========
</TABLE>

                                       7
<PAGE>
Selected results of operations,  cash and other  information for the Partnership
is as follows:
<TABLE>
<CAPTION>

                           For the Three Months                          For the Years Ended
                              Ended March 31                                 December 31
                          ------------------------  ---------------------------------------------------------------
                               1999          1998         1998         1997         1996         1995         1994
                               ----          ----         ----         ----         ----         ----         ----
                                       (Unaudited)
<S>                     <C>          <C>           <C>          <C>          <C>         <C>          <C>
Income (loss) from
  operations            $   (11,927) $     (7,453) $   (28,938) $    (5,242) $    70,901 $     23,654 $    (11,786)
Equity in income
  (loss) from
  limited partnerships     (187,528)     (222,248)    (750,114)    (806,639)    (528,288)    (100,224)       2,212
                          ---------     ---------    ---------    ---------    ---------    ---------    ---------
Net loss                $  (199,455) $   (229,701) $  (779,052) $  (811,881) $  (457,387) $   (76,570) $    (9,574)
                          =========     =========    =========    =========    =========    =========    =========
Net loss allocated to:
  General Partner       $    (1,995) $     (2,297) $    (7,791) $    (8,119) $    (4,574) $      (766) $       (96)
                          =========     =========    =========    =========    =========    =========    =========
  Limited Partners      $  (197,460) $   (227,404) $  (771,261) $  (803,762) $  (452,813) $   (75,804) $    (9,478)
                          =========     =========    =========    =========    =========    =========    =========
Net loss per limited
  partner unit          $    (17.17) $     (19.77) $    (67.07) $    (69.89) $    (39.38) $     (8.68) $    (10.84)
                          =========     =========    =========    =========    =========    =========    =========
Outstanding weighted
  limited partner
  units                      11,500        11,500       11,500       11,500       11,500        8,735          874
                          =========     =========    =========    =========    =========    =========    =========

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

                               1999          1998         1998         1997         1996         1995         1994
                               ----          ----         ----         ----         ----         ----         ----
                                       (Unaudited)
Net cash provided by
  (used in):
  Operating activities  $   (87,823) $     10,707  $    84,603  $   123,268  $   108,678  $    26,322  $     1,602
  Investing activities        3,351         2,539     (472,166)  (1,552,808)  (1,382,819)  (1,979,131)  (3,717,992)
  Financing activities            -             -            -      (37,310)      61,683    5,295,252    4,201,161
                          ---------     ---------    ---------    ---------    ---------    ---------    ---------
Net change in cash
  and cash equivalents      (84,472)       13,246     (387,563)  (1,466,850)  (1,212,458)   3,342,443      484,771

Cash and cash
  equivalents,
  beginning of period       760,343     1,147,906    1,147,906    2,614,756    3,827,214      484,771            -
                          ---------     ---------    ---------    ---------    ---------    ---------    ---------
Cash and cash
  equivalents,
  end of period         $   675,871  $  1,161,152  $   760,343  $ 1,147,906  $ 2,614,756  $ 3,827,214  $   484,771
                          =========     =========    =========    =========    =========    =========    =========
</TABLE>

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

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

<S>              <C>               <C>               <C>              <C>               <C>
Federal          $   99            $   86            $   64           $   21            $    -
State                67                91                70               70                 -
                   ----              ----              ----             ----              ----
Total            $  166            $  177            $  134           $   91            $    -
                   ====              ====              ====             ====              ====
</TABLE>
                                       8

<PAGE>

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

Financial Condition

The  Partnership's  assets at March 31, 1999 consisted  primarily of $676,000 in
cash  and  aggregate  investments  in  the  ten Local  Limited  Partnerships  of
$6,900,000. Liabilities at March 31, 1999 primarily consisted of $142,000 due to
limited partnerships.

Results of Operations

Three Months Ended March 31, 1999 Compared to Three Months Ended March 31, 1998.
The  Partnership's  net loss for the  three  months  ended  March  31,  1999 was
$(199,000),  reflecting a decrease of $31,000 from the net loss  experienced for
the three months ended March 31, 1998.  The decline in net loss is due to equity
in losses of limited  partnerships  which decreased by $34,000 to $(188,000) for
the three month period ended March 31, 1999 from  $(222,000) for the three month
period  ended  March 31,  1998.  The  reduction  in equity in losses of  limited
partnerships  was partially  offset by loss from  operations  which increased by
$5,000 to  $(12,000)  for the  three  month  period  ended  March 31,  1999 from
$(7,000)  for the three month  period  ended March 31, 1998 due to a  comparable
decrease in operating income.

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

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

Cash Flows

Three Months Ended March 31, 1999 Compared to Three Months Ended March 31, 1998.
Net decrease in cash during the three months ended March 31, 1999 was $(84,000),
compared to a net  increase in cash for the three months ended March 31, 1998 of
$13,000.  The change was due to an increase in cash paid to the General  Partner
of affiliates of $94,000 and a decrease in operating income of $3,000.

Year Ended  December 31, 1998 Compared to Year Ended December 31, 1997. Net cash
used in 1998 was $(388,000),  compared to net cash used in 1997 of $(1,467,000).
The change was due primarily to a decrease in cash used for investments in Local
Limited  Partnerships  of $1,084,000  and a decrease in cash paid to the General
Partner or  affiliates of $37,000  partially  offset by an increase in operating
costs paid to third  parties and a decline in  distributions  from Local Limited
Partnerships.
                                       9
<PAGE>

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

During the three  months  ended March 31, 1999 and the year ended  December  31,
1998,  accrued  payables,  which include  related party  management  fees due to
Associates,  decreased by $82,000 and  increased by $56,000,  respectively,  due
primarily to payment of management  fees during the three months ended March 31,
1999.

The Partnership  expects its future cash flows,  together with its net available
assets at March 31, 1999,  to be  sufficient  to meet all  currently  forseeable
future cash requirements.

IMPACT OF YEAR 2000

WNC & Associates, Inc.

Status of Readiness

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

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

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

Costs to Address Year 2000 Issues

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

Risk of Year 2000 Issues

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

                                       10
<PAGE>

Local Limited Partnerships

Status of Readiness

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

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

Costs to Address Year 2000 Issues

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

Risk of Year 2000 Issues

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

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

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk

NONE.

Item 8.  Financial Statements and Supplementary Data

                                       11
<PAGE>






               REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS




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


We have audited the  accompanying  balance sheets of WNC California  Housing Tax
Credits  IV,  L.P.,   Series  4  (a   California   Limited   Partnership)   (the
"Partnership")  as of March 31,  1999 and  December  31,  1998,  and the related
statements  of  operations,  partners'  equity  (deficit) and cash flows for the
three  months ended March 31, 1999 and the year ended  December 31, 1998.  These
financial statements are the responsibility of the Partnership's management. Our
responsibility  is to express an opinion on these financial  statements based on
our audits.  A significant  portion of the  financial  statements of the limited
partnerships in which the Partnership is a limited partner were audited by other
auditors  whose reports have been furnished to us. As discussed in Note 2 to the
financial  statements,  the Partnership  accounts for its investments in limited
partnerships   using  the  equity  method.  The  portion  of  the  Partnership's
investment in limited  partnerships audited by other auditors represented 73% of
the total assets of the Partnership at March 31, 1999 and December 31, 1998. Our
opinion,  insofar  as it  relates  to the  amounts  included  in  the  financial
statements for the limited  partnerships  which were audited by others, is based
solely on the reports of the other auditors.

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

In our opinion,  based on our audits and the reports of the other auditors,  the
financial statements referred to above present fairly, in all material respects,
the financial  position of WNC California Housing Tax Credits IV, L.P., Series 4
(a California  Limited  Partnership) as of March 31, 1999 and December 31, 1998,
and the results of its  operations and its cash flows for the three months ended
March  31,  1999 and the year  ended  December  31,  1998,  in  conformity  with
generally accepted accounting principles.




                                           /s/ BDO SEIDMAN, LLP
                                           BDO SEIDMAN, LLP

Orange County, California
July 21, 1999




                                       12
<PAGE>



                          INDEPENDENT AUDITORS' REPORT



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


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

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

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



                                            /s/ CORBIN & WERTZ
                                            CORBIN & WERTZ

Irvine, California
April 10, 1998





                                       13


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

                                 BALANCE SHEETS

<TABLE>
<CAPTION>
                                                               March 31                        December 31
                                                    ------------------------------   ------------------------------
                                                            1999             1998            1998             1997
                                                            ----             ----            ----             ----
                                                                       (Unaudited)
ASSETS
<S>                                               <C>              <C>              <C>             <C>
Cash and cash equivalents                         $      675,871   $    1,161,152   $      760,343  $    1,147,906
Receivables from affiliates (Note 3)                           -           31,646                -          31,646
Loans receivable (Note 7)                                      -                -          201,611               -
Investments in limited partnerships (Note 2)           6,899,934        7,391,045        6,845,203       7,622,211
Other assets                                                   -              189                -               -
                                                      ----------       ----------      -----------      ----------
                                                  $    7,575,805   $    8,584,032   $    7,807,157  $    8,801,763
                                                      ==========       ==========      ===========      ==========
LIABILITIES AND PARTNERS' EQUITY
  (DEFICIT)

Liabilities:
  Payable to limited partnerships (Note 4)        $      142,124   $      363,634   $       91,746  $      363,634
  Accrued fees and expenses due to General
   Partner and affiliates (Note 3)                       (19,496)          18,415           62,779           6,445
                                                      ----------       ----------      -----------      ----------
     Total liabilities                                   122,628          382,049          154,525         370,079
                                                      ----------       ----------      -----------      ----------
Commitments and contingencies

Partners' equity (deficit) (Note 6):
  General partner                                        (26,642)         (19,153)         (24,647)        (16,856)
  Limited partners (25,000 units authorized,
    11,500 units issued and outstanding)               7,479,819        8,221,136        7,677,279       8,448,540
                                                      ----------       ----------      -----------      ----------
     Total partners' equity                            7,453,177        8,201,983        7,652,632       8,431,684
                                                      ----------       ----------      -----------      ----------
                                                  $    7,575,805   $    8,584,032   $    7,807,157  $    8,801,763
                                                      ==========       ==========      ===========      ==========
</TABLE>

                 See accompanying notes to financial statements
                                       14

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

                            STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                         For the Three Months Ended
                                                  March 31                     For the Years Ended December 31
                                         ----------------------------   -------------------------------------------
                                                1999            1998           1998            1997           1996
                                                ----            ----           ----            ----           ----
                                                          (Unaudited)
<S>                                    <C>            <C>             <C>             <C>             <C>
Interest income                        $       7,756  $       10,896  $      46,032   $      65,307   $    147,254
                                           ---------      ----------      ---------       ---------      ---------
Operating expenses:
  Amortization (Note 2)                        6,379           6,379         25,561          25,419         24,865
  Asset management fees (Note 3)               7,906           7,906         31,625          31,625         31,625
  Office                                       5,398           4,064         17,784          13,505         19,863
                                           ---------      ----------      ---------       ---------      ---------
    Total operating expenses                  19,683          18,349         74,970          70,549         76,353
                                           ---------      ----------      ---------       ---------      ---------

(Loss) income from operations                (11,927)         (7,453)       (28,938)         (5,242)        70,901

Equity in losses of limited
  partnerships (Note 2)                     (187,528)       (222,248)      (750,114)       (806,639)      (528,288)
                                           ---------      ----------      ---------       ---------      ---------
Net loss                               $    (199,455) $     (229,701) $    (779,052)  $    (811,881)  $   (457,387)
                                           =========      ==========      =========       =========      =========
Net loss allocated to:
   General partner                     $      (1,995) $       (2,297) $      (7,791)  $      (8,119)  $     (4,574)
                                           =========      ==========      =========       =========      =========
   Limited partners                    $    (197,460) $     (227,404) $    (771,261)  $    (803,762)  $   (452,813)
                                           =========      ==========      =========       =========      =========
Net loss per limited partner unit      $      (17.17) $       (19.77) $      (67.07)  $      (69.89)  $     (39.38)
                                           =========      ==========      =========       =========      =========
Outstanding weighted limited
  partner units                               11,500          11,500         11,500          11,500         11,500
                                           =========      ==========      =========       =========      =========
</TABLE>


                 See accompanying notes to financial statements
                                       15

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

                    STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

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


                                       General         Limited
                                       Partner         Partners         Total
                                       -------         --------         -----
Partners' equity (deficit)
  at January 1, 1996                $   (4,861)  $   9,463,534    $  9,458,673

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

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

Net loss                                (4,574)       (452,813)       (457,387)
                                     ---------     -----------      ----------
Partners' equity (deficit)
  at December 31, 1996                  (8,737)      9,252,302       9,243,565

Net loss                                (8,119)       (803,762)       (811,881)
                                     ---------     -----------      ----------
Partners' equity (deficit)
  at December 31, 1997                 (16,856)      8,448,540       8,431,684

Net loss                                (7,791)       (771,261)       (779,052)
                                     ---------     -----------      ----------
Partners' equity (deficit)
  at December 31, 1998                 (24,647)      7,677,279       7,652,632

Net loss                                (1,995)       (197,460)       (199,455)
                                     ---------     -----------      ----------
Partners' equity (deficit)
  at March 31, 1999                 $  (26,642)  $   7,479,819    $  7,453,177
                                     =========     ===========      ==========



                 See accompanying notes to financial statements
                                       16

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

                            STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                            For the Three Months
                                               Ended March 31                 For the Years Ended December 31
                                          --------------------------    -----------------------------------------
                                                1999           1998           1998           1997           1996
                                                ----           ----           ----           ----           ----
                                                         (Unaudited)
Cash flows from operating activities:
<S>                                     <C>            <C>            <C>            <C>            <C>
   Net loss                             $   (199,455)  $   (229,701)  $   (779,052)  $   (811,881)  $   (457,387)
   Adjustments  to reconcile  net loss
     to net cash provided by (used in)
     operating activities:
     Amortization                              6,379          6,379         25,561         25,419         24,865
     Equity in losses of limited
       partnerships                          187,528        222,248        750,114        806,639        528,288
     Change in receivables from
       affiliates                                  -              -         31,646         90,179              -
     Change in other assets                        -           (189)             -         12,912         12,912
     Change in accrued fees and
       expenses due to general
       partner and affiliates                (82,275)        11,970         56,334              -              -
                                          ----------     ----------     ----------     ----------     ----------
Net cash provided by (used in)
  operating activities                       (87,823)        10,707         84,603        123,268        108,678
                                          ----------     ----------     ----------     ----------     ----------
Cash flows from investing activities:
  Investments  in limited
    partnerships, net                       (201,611)             -       (271,888)    (1,555,241)    (1,341,247)
  Capitalized acquisition costs and
    fees                                         (27)             -         (1,584)        (3,567)       (41,572)
  Distributions from limited
    partnerships                               3,378          2,539          2,917          6,000              -
  Loans receivable                           201,611              -       (201,611)             -              -
                                          ----------     ----------     ----------     ----------     ----------
Net cash provided by (used in)
  investing activities                         3,351          2,539       (472,166)    (1,552,808)    (1,382,819)
                                          ----------     ----------     ----------     ----------     ----------
Cash flows from financing activities:
  Payments to affiliates or general
    partner, net                                   -              -              -        (37,310)      (180,596)
  Offering costs                                   -              -              -              -         69,779
  Collection on notes receivable                   -              -              -              -        172,500
                                          ----------     ----------     ----------     ----------     ----------
Net cash (used in) provided by
  financing activities                             -              -              -        (37,310)        61,683
                                          ----------     ----------     ----------     ----------     ----------
Net increase (decrease) in cash and
  cash equivalents                           (84,472)        13,246       (387,563)    (1,466,850)    (1,212,458)

Cash and cash equivalents, beginning
  of period                                  760,343      1,147,906      1,147,906      2,614,756      3,827,214
                                          ----------     ----------     ----------     ----------     ----------
Cash and cash equivalents, end of
  period                                $    675,871   $  1,161,152   $    760,343   $  1,147,906   $  2,614,756
                                          ==========     ==========     ==========     ==========     ==========
SUPPLEMENTAL DISCLOSURE OF
  CASH FLOW INFORMATION
   Taxes paid                           $          -   $          -   $        800   $        800   $        800
                                          ==========     ==========     ==========     ==========     ==========
</TABLE>
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING AND INVESTING ACTIVITY:

During the three  months  ended March 31, 1999 and the year ended  December  31,
1996,  the  Partnership  incurred,  but did not pay,  $50,377  and  $382,865  in
payables to a limited partnership.

                 See accompanying notes to financial statements
                                       17
<PAGE>
              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
                       (A California Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS

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

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

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

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

The Partnership shall continue to be in full force and effect until December 31,
2050 unless terminated prior to that date pursuant to the partnership  agreement
or law.

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

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

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

Change in Reporting Year End

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

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

                                       18

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

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

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued

Risks and Uncertainties

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

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

Method of Accounting For Investments in Limited Partnerships

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

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

                                       19

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

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

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued

Offering Expenses

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

Use of Estimates

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

Cash and Cash Equivalents

The Partnership considers highly liquid investments with remaining maturities of
three months or less when purchased to be cash equivalents. As of March 31, 1999
and December 31, 1998 and 1997 the Partnership had cash equivalents of $609,587,
$750,309 and $768,013, respectively.

Concentration of Credit Risk

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

Net Loss Per Limited Partner Unit

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

Reporting Comprehensive Income

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

                                       20
<PAGE>
              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

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

NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS

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

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

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

Distributions  received by limited  partners are accounted for as a reduction of
the investment balance.  Distributions received after the investment has reached
zero are  recognized  as income.  During the three month  period ended March 31,
1999 and the year ended  December  31,  1998,  no  investment  accounts in Local
Limited Partnerships reached a zero balance.

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

                                                            For the Three
                                                             Months Ended              For the Years Ended
                                                               March 31                    December 31
                                                           ---------------     --------------------------------
                                                                      1999               1998                1997
                                                                      ----               ----                ----

<S>                                                       <C>                <C>                 <C>
Investments per balance sheet, beginning of period        $      6,845,203   $      7,622,211    $      8,467,424
Capital contributions paid, net of tax credit
  adjustments                                                      201,611                  -             (10,722)
Capital contributions payable                                       50,378                  -                   -
Capitalized acquisition fees and costs                                  27              1,584               3,567
Equity in losses of limited partnerships                          (187,528)          (750,114)           (806,639)
Distributions received                                              (3,378)            (2,917)             (6,000)
Amortization of paid acquisition fees and costs                     (6,379)           (25,561)            (25,419)
                                                              ------------       ------------        ------------
Investments per balance sheet, end of period              $      6,899,934   $      6,845,203    $      7,622,211
                                                              ============       ============        ============
</TABLE>

                                       21

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

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

NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued

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

                        COMBINED CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>

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

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

WNC California Housing Tax Credits IV, L.P., Series 4              6,170,000           6,561,000
Other partners                                                        82,000              45,000
                                                                 -----------         -----------
                                                                   6,252,000           6,606,000
                                                                 -----------         -----------
                                                            $     16,877,000    $     17,266,000
                                                                 ===========         ===========
</TABLE>
                                       22

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

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

NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued

                   COMBINED CONDENSED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                         1998               1997                1996
                                                         ----               ----                ----

<S>                                          <C>                <C>                 <C>
Revenues                                     $      1,068,000   $      1,045,000    $        842,000
                                                  -----------        -----------         -----------
Expenses:
  Operating expenses                                  713,000            705,000             521,000
  Interest expense                                    489,000            535,000             392,000
  Depreciation and amortization                       624,000            619,000             463,000
                                                  -----------        -----------         -----------
   Total expenses                                   1,826,000          1,859,000           1,376,000
                                                  -----------        -----------         -----------
Net loss                                     $       (758,000)  $       (814,000)   $       (534,000)
                                                  ===========        ===========         ===========
Net loss allocable to the Partnership        $       (750,000)  $       (807,000)   $       (528,000)
                                                  ===========        ===========         ===========
Net loss recorded by the Partnership         $       (750,000)  $       (807,000)   $       (528,000)
                                                  ===========        ===========         ===========
</TABLE>

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

NOTE 3 - RELATED PARTY TRANSACTIONS

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

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

     Acquisition  fees equal to 7% of the gross  proceeds from the sale of Units
     as compensation for services rendered in connection with the acquisition of
     Local  Limited  Partnerships.  At the  end of all  periods  presented,  the
     Partnership incurred acquisition fees of $654,580. Accumulated amortization
     of these capitalized costs was $84,594, $79,140 and $57,320 as of March 31,
     1999 and December 31, 1998 and 1997, respectively.
                                       23

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

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

NOTE 3 - RELATED PARTY TRANSACTIONS, continued

     Reimbursement  of costs incurred by an affiliate of the General  Partner in
     connection  with the  acquisition  of  Local  Limited  Partnerships.  These
     reimbursements will not exceed 1.0% of the gross proceeds.  As of March 31,
     1999 and December 31, 1998 and 1997, the Partnership  incurred  acquisition
     costs of $112,707,  $112,680 and  $111,096,  respectively,  which have been
     included in investments in limited partnerships.  Accumulated  amortization
     was  $13,685,  $12,760 and $9,016 for March 31, 1999 and  December 31, 1998
     and 1997, respectively.

     An annual asset  management  fee equal to the greater  amount of (i) $2,000
     for each Housing Complex, or (ii) 0.275% of gross proceeds. In either case,
     the fee will be  decreased or  increased  annually  based on changes to the
     Consumer Price Index.  However,  in no event will the maximum amount exceed
     0.2% of the invested  assets of the Local Limited  Partnerships,  including
     the  Partnership's  allocable  share of the mortgages.  Management  fees of
     $7,906  were  incurred  during the three  months  ended  March 31, 1999 and
     $31,625 were  incurred  for 1998,  1997 and 1996,  respectively,  of which,
     $35,761 was paid during the three  months ended March 31, 1999 and $31,646,
     $60,000 and $45,000 were paid during 1998, 1997 and 1996, respectively.

     A subordinated  disposition fee in an amount equal to 1% of the sales price
     of real estate  sold.  Payment of this fee is  subordinated  to the limited
     partners  receiving a preferred return of 14% through December 31, 2005 and
     6% thereafter (as defined in the Partnership Agreement) and is payable only
     if the  General  Partner or its  affiliates  render  services  in the sales
     effort.

The accrued fees and expenses due to General  Partner and affiliates  consist of
the following at:
<TABLE>
<CAPTION>

                                                                  March 31                  December 31
                                                              ---------------  -----------------------------------
                                                                      1999               1998                1997
                                                                      ----               ----                ----
<S>                         <C>                           <C>                <C>                 <C>
Cash advances by WNC to acquire an interest in a
  limited partnership (Note 7)                            $              -   $         55,200    $              -

Reimbursement for expenses paid by the General
  Partner or an affiliate                                            2,990              2,210               1,055

Asset management fee payable                                       (22,486)             5,369               5,390
                                                               -----------        -----------         -----------
Total                                                     $        (19,496)  $         62,779    $          6,445
                                                               ===========        ===========         ===========
</TABLE>
                                       24

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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

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

NOTE 4 - PAYABLES TO LIMITED PARTNERSHIPS

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

NOTE 5 - INCOME TAXES

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

NOTE 6 - SUBSCRIPTIONS AND INVESTOR NOTES RECEIVABLE

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

NOTE 7 - LOANS RECEIVABLE

Loans  receivable  represent  amounts loaned by the Partnership to certain Local
Limited  Partnerships  in which the  Partnership  may invest.  Loans  receivable
consisted  of one loan with a balance of $201,611 as of December  31, 1997 which
was  applied  as a  capital  contribution  in  1999  upon  finalization  of  its
acquisition of an interest in a new Local Limited Partnership.


                                       25
<PAGE>
Item  9.  Changes  in and  Disagreements  With  Accountants  on  Accounting  and
Financial Disclosure

NOT APPLICABLE

PART III.

Item 10.  Directors and Executive Officers of the Registrant

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

Directors and Executive Officers of WNC & Associates, Inc.

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

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

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

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

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


                                       26
<PAGE>
Michael L. Dickenson, age 42, is Vice President and Chief Financial Officer, and
a member of the  Acquisition  Committee  of WNC &  Associates,  Inc.,  and Chief
Financial Officer of WNC Management,  Inc. He has been involved with acquisition
and  investment  activities  with  respect to real estate  since 1985.  Prior to
joining the Sponsor in March 1999, he was the Director of Financial  Services at
TrizecHahn  Centers Inc., a developer  and operator of  commercial  real estate,
from 1995 to 1999,  a Senior  Manager  with E&Y  Kenneth  Leventhal  Real Estate
Group, Ernst & Young, LLP, from 1988 to 1995, and Vice President of Finance with
Great Southwest  Companies,  a commercial and residential real estate developer,
from  1985 to 1988.  Mr.  Dickenson  is a  member  of the  Financial  Accounting
Standards  Committee for the National  Association of Real Estate  Companies and
the  American  Institute  of  Certified  Public  Accountants,  and a Director of
HomeAid  Southern  California,  a charitable  organization  affiliated  with the
building  industry.  He  graduated  from  Texas Tech  University  in 1978 with a
Bachelor of Business  Administration  -  Accounting  degree,  and is a Certified
Public Accountant in California and Texas.

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

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

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

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

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

Item 11.  Executive Compensation

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

(a)  Acquisition  Expenses.  The Partnership  incurred  acquisition  expenses of
     $113,000 as of March 31,  1999 and  December  31,  1998 and  $111,000 as of
     December 31, 1997. 27
<PAGE>

(b)  Annual Asset  Management Fee. An annual asset management fee the greater of
     (i)  $2,000  per  multi-family  housing  complex,  or (ii)  0.275% of Gross
     Proceeds. The base fee amount will be adjusted annually based on the change
     in the  Consumer  Price Index.  However,  in no event will the annual asset
     management fee exceed 0.2% of Invested Assets.  "Invested Assets" means the
     sum of the Partnership's  investment in Local Limited  Partnerships and the
     Partnership's  allocable share of the amount of the indebtedness related to
     the Housing Complexes.  Fees of $7,900 and $32,000 were incurred during the
     three  months  ended March 31, 1999 and the year ended  December  31, 1998,
     respectively.  The  Partnership  paid the General Partner or its affiliates
     $7,900 and  $32,000 of those fees during the three  months  ended March 31,
     1999 and the year ended December 31, 1998, respectively.

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

(d)  Operating  Expense. The Partnership  reimbursed the General Partner or its
     affiliates for operating expenses of approximately $5,000 and $2,000 during
     the three months ended March 31, 1999 and the year ended December 31, 1998,
     respectively.

(e)  Interest  in  Partnership.   The  General   Partners   receive  1%  of  the
     Partnership's  allocated Low Income  Housing  Credits,  which  approximated
     $19,000 for the General  Partner for the year ended  December 31, 1998. The
     General  Partners  are also  entitled to receive 1% of cash  distributions.
     There were no  distributions  of cash to the  General  Partners  during the
     three months ended March 31, 1999 or the year ended December 31,1998.

Item 12.  Security Ownership of Certain Beneficial Owners and Management

Security Ownership of Certain Beneficial Owners

(a)  Security Ownership of Certain Beneficial Owners

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

(b)  Security Ownership of Management

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

(c)  Changes in Control

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

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

                                       28
<PAGE>

Item 13.  Certain Relationships and Related Transactions

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

PART IV.

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

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

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

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

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

(b)      Reports on Form 8-K

1.       A Form 8-K dated May 13, 1999 was filed on May 14, 1999  reporting  the
         Partnership's  change  in fiscal  year end to March  31. No   financial
         statements were included.

(c)      Exhibits.

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

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

10.2     Amended and  Restated  Agreement  of Limited  Partnership  of  Colonial
         Village  Auburn  filed as exhibit  10.1 to Form 8-K  dated  October 28,
         1994 is hereby incorporated herein by reference as exhibit 10.2

                                       29
<PAGE>

10.3     Amended and  Restated  Agreement  of Limited  Partnership  of  Sycamore
         Hills, L.P. filed as exhibit 10.1 to Form 8-K dated January 9, 1995  is
         hereby incorporated herein by reference as exhibit 10.3.

10.4     Amended and Restated Agreement of Limited Partnership  of Maharlika,  a
         California Limited Partnership filed as exhibit 10.1 to  Form 8-K dated
         May 31, 1995 is hereby  incorporated  herein by  reference  as  exhibit
         10.4.

10.5     Amended and Restated  Agreement of Limited  Partnership of Wills  Point
         Crossing,  L.P.  filed as exhibit 10.1 to Form 8-K dated  July 26, 1995
         is hereby incorporated herein by reference as exhibit 10.5.

10.6     Amended and  Restated  Agreement of Limited  Partnership  of  Rancheria
         Village Apartments,  a California Limited Partnership filed as  exhibit
         10.1 to Form 8-K  dated  September  26,  1995  is  hereby  incorporated
         herein by reference as exhibit 10.6.

10.7     Amended and  Restated  Agreement  of Limited  Partnership  of  Woodlake
         Valencia House, a California Limited Partnership filed as  exhibit 10.7
         to Form 10-K  dated  July 1, 1999  is  hereby  incorporated  herein  by
         reference as exhibit 10.7.

10.8     Amended  and  Restated  Agreement  of  Limited  Partnership  of  Pawnee
         Associates  I,  L.P.   filed  as  exhibit  10.8  to  Form  10-K   dated
         July 1, 1999 is  hereby  incorporated  herein  by reference  as exhibit
         10.8.

10.9     Amended and Restated  Agreement of Limited  Partnership  of  Eagleville
         Associates  I,  L.P.   filed  as  exhibit  10.9  to  Form  10-K   dated
         July 1, 1999 is hereby incorporated  herein  by  reference  as  exhibit
         10.9.

21.1     Financial  Statements of Colonial Village Auburn,  for the years  ended
         December 31, 1998 and 1997 together  with auditors  report  thereon;  a
         significant  subsidiary of the  Partnership,  filed  as exhibit 21.1 to
         Form  10-K  dated  July 1, 1999  is   hereby  incorporated   herein  by
         reference as exhibit 21.1.

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

                                       30

<PAGE>



              Report of Independent Certified Public Accountants on
                         Financial Statement Schedules




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


The audits  referred to in our report dated July 21, 1999,  relating to the 1999
and 1998 financial  statements of WNC  California  Housing Tax Credits IV, L.P.,
Series 4 (the  "Partnership"),  which is  contained in Item 8 of this Form 10-K,
included  the  audit of the  accompanying  financial  statement  schedules.  The
financial  statement  schedules  are  the  responsibility  of the  Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statement schedules based upon our audits.

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




                                          /s/ BDO SEIDMAN, LLP
                                          BDO SEIDMAN, LLP


Orange County, California
July 21, 1999








                                       31

<PAGE>

WNC California Housing Tax Credit Fund IV, L.P. Series 4
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 1999
<TABLE>
<CAPTION>
                                            ---------------------------------  -----------------------------------------------------
                                                     As of March 31, 1999                      As of December 31, 1998
                                            ---------------------------------  -----------------------------------------------------
                                             Partnership's Total   Amount of     Encumbrances of                             Net
                                             Investment in Local   Investment    Local Limited  Property and   Accumulated   Book
Partnership Name               Location      Limited Partnerships  Paid to Date  Partnerships   Equipment      Depreciation  Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                                               <C>           <C>           <C>            <C>           <C>          <C>
Chadron Apartments I, L.P.     Chadron,
                               Nebraska           $     483,000 $    391,000  $    800,000   $   1,265,000 $     33,000 $  1,232,000

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

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

Havana Associates, I,          Havana,
Limited Partnership            Illinois                 252,000      202,000             -               -            -            -

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

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

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

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

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

Woodlake Valencia Partners     Woodlake,
                               California             1,798,000    1,798,000       952,000       3,056,000      281,000    2,775,000
                                                     ----------   ----------    ----------      ----------   ----------   ----------
                                                  $   8,614,000 $  8,472,000  $  9,041,000   $  17,878,000 $  1,838,000 $ 16,040,000
                                                     ==========   ==========    ==========      ==========   ==========   ==========
</TABLE>
                                       32


<PAGE>

WNC California Housing Tax Credit Fund IV, L.P. Series 4
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 1999
<TABLE>
<CAPTION>
                           ----------------------------------------------------------------------------------------
                                                    For the year ended December 31, 1998
                           ----------------------------------------------------------------------------------------
                                                                 Year Investment             Estimated Useful
Partnership Name             Rental Income      Net loss             Acquired       Status     Life (Years)
-------------------------------------------------------------------------------------------------------------------
<S>                          <C>            <C>                        <C>                             <C>
Chadron Apartments I, L.P.   $      49,000  $   (57,000)               1996        Completed           40

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

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

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

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

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

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

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

Woodlake Valencia Partners          84,000     (210,000)               1995        Completed         27.5
                                 ---------    ---------
                             $   1,025,000  $  (758,000)
                                 =========    =========
</TABLE>
                                       33


<PAGE>



WNC California Housing Tax Credit Fund IV, L.P. Series 4
Schedule III
Real Estate Owned by Local Limited Partnerships
December 31, 1998
<TABLE>
<CAPTION>
                                             ---------------------------------------------------------------------------------------
                                                                              As of December 31, 1998
                                             ---------------------------------------------------------------------------------------
                                             Partnership's Total   Amount of     Encumbrances of                             Net
                                             Investment in Local   Investment    Local Limited  Property and   Accumulated   Book
Partnership Name               Location      Limited Partnerships  Paid to Date  Partnerships   Equipment      Depreciation  Value
------------------------------------------------------------------------------------------------------------------------------------
<S>                                              <C>            <C>           <C>             <C>           <C>         <C>
Chadron Apartments I, L.P.     Chadron,
                               Nebraska          $     483,000  $    391,000  $      800,000  $  1,265,000  $    33,000 $  1,232,000


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

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

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

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

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

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

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

Woodlake Valencia Partners     Woodlake,
                               California            1,798,000     1,798,000         952,000     3,056,000      281,000    2,775,000
                                                    ----------    ----------      ----------    ----------   ----------   ----------
                                                 $   8,362,000  $  8,270,000  $    9,041,000  $ 17,878,000  $ 1,838,000 $ 16,040,000
                                                    ==========    ==========      ==========    ==========   ==========   ==========
</TABLE>
                                       34


<PAGE>



WNC California Housing Tax Credit Fund IV, L.P. Series 4
Schedule III
Real Estate Owned by Local Limited Partnerships
December 31, 1998
<TABLE>
<CAPTION>
                           ----------------------------------------------------------------------------------------
                                                    For the year ended December 31, 1998
                           ----------------------------------------------------------------------------------------
                                                                 Year Investment             Estimated Useful
Partnership Name             Rental Income      Net loss             Acquired       Status     Life (Years)
-------------------------------------------------------------------------------------------------------------------
<S>                           <C>           <C>                        <C>         <C>               <C>
Chadron Apartments I, L.P.    $     49,000  $   (57,000)               1996        Completed           40


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

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

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

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

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

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

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

Woodlake Valencia Partners          84,000     (210,000)               1995        Completed         27.5
                                 ---------    ---------
                               $ 1,025,000  $  (758,000)
                                 =========    =========
</TABLE>
                                       35



<PAGE>


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

WNC CALIFORNIA HOUSING TAX CREDITS 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: August 4, 1999


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

Date: August 4, 1999


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

Date: August 4, 1999

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


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

Date: August 4, 1999



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

Date: August 4, 1999


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

Date: August 4, 1999


                                       36
<PAGE>