FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

(Mark One)

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

For the quarterly period ended June 30, 1997

                                       OR

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

For the transition period from ________ to ___________

Commission file number: 33-76970


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

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

California                                        33-0601852

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

(714) 662-5565


        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 ____ No X





<PAGE>




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

                               INDEX TO FORM 10-Q

                       FOR THE QUARTER ENDED JUNE 30, 1997




PART I. FINANCIAL INFORMATION

        Item 1. Financial Statements

               Balance Sheets, June 30, 1997 and
                 December 31, 1995............................................3

               Statement of Operations
                      For the three months and six months ended 
                         June 30, 1997 and 1996...............................4

               Statement of Partners' Equity
                      For the six months ended June 30, 1997 and 1996.........5

               Statement of Cash Flows
                      For the six months ended June 30, 1997 and 1996.........6

               Notes to Financial Statements..................................8

        Item 2. Management's Discussion and Analysis of Financial
               Condition and Results of Operations...........................14



PART II. OTHER INFORMATION

        Item 6. Exhibits and Reports on Form 8-K.............................17

        Signatures ..........................................................18






<PAGE>



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

                                 BALANCE SHEETS
                       June 30, 1997 and December 31, 1996

                                                   1997               1996
                                                   ----               ----

                                        ASSETS

Cash and cash equivalents                    $   1,706,703        $  2,614,756
                                                                
Receivables from affiliates                        125,372             121,825
 Investment in limited
  partnerships - Note 2                          8,243,816           8,467,424
 Other assets                                        1,288              12,912
                                               -----------         -----------
                                             $  10,077,179        $ 11,216,917
                                               ===========         ===========


                   LIABILITIES AND PARTNERS' EQUITY (DEFICIT)

Liabilities:
Payable to limited partnership - Note 4      $     981,132        $  1,929,597
 Accrued fees and expenses due to
   general partner and affiliates - Note 3          83,906              43,755
                                                   -------              ------
  Total liabilities                              1,065,038           1,973,352
                                                 ---------           ---------

Partners' equity (deficit):
 General partner
                                                   (11,051)             (8,737)
 Limited partners (25,000 units authorized,
   11,500 issued and outstanding)                9,023,192           9,252,302
                                                 ---------           ---------
Total partners' equity                           9,012,141           9,243,565
                                                 ---------           ---------
                                             $  10,077,179        $ 11,216,917
                                                ==========          ==========




                                    UNAUDITED
                 See Accompanying Notes to Financial Statements

                                        3


<PAGE>



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

                             STATEMENT OF OPERATIONS
                             For the Three and Six
                       Months Ended June 30, 1997 and 1996

                                           1997                       1996
                                    ------------------      -------------------
                                    Three        Six        Three        Six
                                    Months      Months      Months      Months
                                    ------      ------      ------      ------

Interest income                 $  17,999   $   41,899    $  36,504   $  80,480
                                  ------       -------       ------      ------

Operating expenses:
Amortization
                                    6,354       12,705        6,189      12,212
Asset management fees (Note 4)
                                    7,907       15,813        7,907      15,813
Legal and accounting                3,500        4,500        3,175       5,175
Other                               4,789        5,355        4,039       4,630
                                   ------       ------       ------       -----
Total operating expenses           22,550       38,373       21,310      37,830
                                   ------      -------      -------      ------

Income (loss) from operations      (4,551)       3,526       15,194      42,650

Equity in loss from
 limited partnerships             (69,600)    (234,600)    (109,629)   (172,000)
                                  -------     --------     --------     -------

Net loss                        $ (74,151)  $ (231,074)   $ (94,435)  $(129,350)
                                   =======    ========      ========   =========

Net loss allocated to:
  General partner               $    (742)  $   (2,311)   $    (944)  $  (1,294)
                                     =====     =======        =====     =======

  Limited partners              $ (73,409)  $ (228,763)   $ (93,491)  $(128,056)
                                  =======     ========      =======     =======

Net loss per limited
 partner units (11,500
weighted units 1997 and 1996)   $   (6.38)  $   (19.89)   $   (8.13)   $ (11.14)
                                    =====       ======        =====      ====== 

                                    UNAUDITED
                 See Accompanying Notes to Financial Statements

                                        4


<PAGE>



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

                          STATEMENT OF PARTNERS' EQUITY
                               For the Six Months
                          Ended June 30, 1997 and 1996


For the Six  Months Ended June 30, 1997
                                          General       Limited
                                          Partner       Partner       Total
                                          -------       -------       -----

Equity (deficit), December 31, 1996    $    (8,737)   $ 9,252,302   $ 9,243,565
Offering expense                                (3)          (347)         (350)
                                            
Net loss for the six months ended
  June 30, 1997                             (2,311)      (228,763)     (231,074)
                                            ------       --------      -------- 
Equity (deficit), June 30, 1997        $   (11,051)   $ 9,023,192   $ 9,012,141
                                            ======      =========     =========
 


For the Six  Months Ended June 30, 1996
                                           General       Limited
                                           Partner       Partner       Total
                                           -------       -------       -----
Equity (deficit), December 31, 1996    $   (14,581)   $ 9,473,254   $ 9,458,673
Capital collected from notes
receivable                                                112,500       112,500
Offering expense                             1,351        133,781       135,132
Net loss for the six months ended
  June 30, 1996                             (1,294)      (128,056)     (129,350)
                                            ------       ---------     --------
Equity (deficit), June 30, 1996        $   (14,524)   $ 9,591,479   $ 9,576,955
                                           =======      =========     =========




                                    UNAUDITED
                 See Accompanying Notes to Financial Statements

                                        5


<PAGE>



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

                   STATEMENT OF CASH FLOWS For the Six Months
                          Ended June 30, 1997 and 1996


                                                             1997        1996
                                                             ----        ----
Cash flows provided by operating activities:
  Net loss                                            $  (231,074)  $ (129,350)
    Adjustments to reconcile net loss to
        net cash used in operating activities:
        Equity in loss of limited partnerships            234,600      172,000
        Amortization                                       12,705       12,212
        Asset management fee                               15,813       15,813
        Decrease in interest receivable                     8,077       13,588
        Accrued fees and expense due to
        general partner and affiliates                     23,988        6,066
                                                          -------       ------
Net cash provided by operating activities                  64,109       90,329
                                                          -------       ------

Cash flows used by investing activities:
   Investments in limited partnerships                   (971,862)    (689,566)
   Acquisition costs and fees
                                                             (300)     (14,250)
                                                         --------      -------
Net cash used by investing activities                    (972,162)    (703,816)
                                                         --------     -------- 

Cash flows provided by financing activities:
Collection of notes receivable                                  -      112,500
  Offering costs                                                -       (2,587)
  Payment of advances from affiliates                           -      (48,075)
                                                          -------      ------- 
                                                              
Net cash provided by financing activities                       -       61,838
                                                        ----------   ---------
Net decrease in cash and cash equivalents                (908,053)    (551,649)
Cash and cash equivalents, beginning of period          2,614,756    3,827,214
                                                       ----------    ---------
Cash and cash equivalent, end of period               $ 1,706,703   $3,275,565
                                                       ==========    =========

                                    UNAUDITED
                 See Accompanying Notes to Financial Statements

                                        6


<PAGE>


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

                       STATEMENT OF CASH FLOWS - CONTINUED

                 For the Six months ended June 30, 1997 and 1996



Supplemental disclosure of noncash financing and investing activity:

                                                 For the Six       For the Six
                                                 months Ended      months Ended
                                                June 30, 1997     June 30, 1996
                                                -------------     -------------

During the six months ended June 30, 1997,
 the Partnership's payables to limited
partnerships;  (in connection with its 
investments in limited partnerships) (see
Note 2) had non-cash transactions as follows:

 
 Decreases due to various price adjuster 
  provisions in the respective limited 
  partnership agreements                             $(10,721)       
                                                     --------        
    Net non-cash activity in Partnership's
     payables to limited partnerships                $(10,721)       
                                                     ========        
                        
  Other non-cash activity:
   The Partnership has incurred but not paid:
     Acquisition fees and costs payable to 
      affiliate of the general partner                                  $12,244
                                                                        =======
   Selling fees advanced by affiliate of 
    general partner                                                      $4,422
                                                                         ======
 The Partnership has not received O & O 
  reimbursements from an affiliate                                     $142,141
                                                                       ========


                                    UNAUDITED
                 See Accompanying Notes to Financial Statements

                                        7


<PAGE>

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

                          NOTES TO FINANCIAL STATEMENTS


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

Organization
------------
WNC CALIFORNIA  TAX CREDITS IV, L.P.,  Series 4 (the  "Partnership")  was formed
under the California  Revised Limited  Partnership Act on February 16, 1995, and
commenced  operations  on July 26, 1995.  The  Partnership  was formed to invest
primarily in other limited  partnerships which will own and operate multi-family
housing complexes that will qualify for low income housing credits.

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

General
-------
The information  contained in the following notes to the financial statements is
condensed  from that  which  would  appear in the annual  financial  statements;
accordingly,  the  financial  statements  included  herein should be reviewed in
conjunction  with the audited  financial  statements  and related  notes thereto
contained  in the  Partnership's  financial  statements  for  the  period  ended
December 31, 1996 (audited).

In the opinion of the General  Partner,  the  accompanying  unaudited  financial
statements  contain  all  adjustments   (consisting  of  only  normal  recurring
accruals) necessary to present fairly the financial position as of June 30, 1997
and the results of operations and changes in cash flows for the six months ended
June 30, 1997 and 1996.

Allocations Under the Terms of the Partnership Agreement
--------------------------------------------------------
The General Partner has a 1% interest in operating  profits and losses,  taxable
income and loss and in cash available for distribution from the Partnership. The
limited  partners  will  be  allocated  the  remaining  99% of  these  items  in
proportion to their respective investments.


                                        8


<PAGE>


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

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

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

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

Method of Accounting For Investment in Limited Partnerships
-----------------------------------------------------------
The investment in limited  partnerships is accounted for on the equity method of
accounting whereby the Partnership  adjusts its investment balance for its share
of each limited  partnership's  results of operations and for any  distributions
received.  Costs  incurred by the  Partnership  in acquiring the  investments in
limited partnerships are capitalized as part of the investment account.

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

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

Organization Costs
------------------
Organization costs will be amortized on the straight-line method over 60 months.

Cash and Cash Equivalents
The Partnership  considers investments with an original maturity of three months
or less as cash equivalents.










                                        9


<PAGE>


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

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

NOTE 2 - INVESTMENT IN LIMITED PARTNERSHIPS
-------------------------------------------

As of June 30, 1997 the Partnership had acquired limited  partnership  interests
in nine limited  partnerships  each of which owns one Apartment  Complex.  As of
June  30,  1997,  construction  or  rehabilitation  of  eight  of the  Apartment
Complexes  had  been   completed  and  one  was   undergoing   construction   or
rehabilitation.

As of June 30, 1996 the Partnership had acquired limited  partnership  interests
in eight limited  partnerships each of which owns one Apartment  Complex.  As of
June 30, 1996,  construction or rehabilitation of six of the Apartment Complexes
had been completed and two were undergoing construction or rehabilitation.

The Partnership,  as a limited partner,  is entitled to 99%, as specified in the
partnership  agreements,  of the  operating  profits  and losses of the  limited
partnerships upon the acquisition of its limited partnership interest. Following
is a summary of the components of investment in limited  partnerships as of June
30, 1997 and December 31, 1996:

                                                        1997           1996
                                                        ----           ----

      Investment beginning of period               $8,467,424     $8,494,018
      Total capital contributions made 
       and accrued with respect to 
       limited partnerships                            23,397        484,987
      Increase in capitalized acquisition 
       fee and costs                                      300         41,572
      Amortization of acquisition fees and costs      (12,705)       (24,865)
      Equity in loss of limited 
       partnerships                                  (234,600)      (528,288)
                                                     --------       -------- 
      Investment, end of period                    $8,243,816     $8,467,424
                                                   ==========     ==========



                                       10


<PAGE>


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

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

NOTE 2 - INVESTMENT IN LIMITED PARTNERSHIPS (CONTINUED)
-------------------------------------------------------

Selected  financial  information  from the  financial  statements of the limited
partnerships  with operations for the six months ended June 30, 1997 and 1996 is
as follows:

                                              Six months ended
                                              ----------------

                                        June 30, 1997     June 30, 1996
                                        -------------     -------------

   Total revenue                             $483,000         $338,000
                                              -------         --------
   Expenses:
    Operating expenses -
     exclusive of                             273,000          211,000
     depreciation and interest
    Interest expense                          161,000          119,000
    Depreciation                              286,000          182,000
                                              -------          -------
     Total expenses                           720,000          512,000
                                              -------          -------

     Net loss                               $(237,000)       $(174,000)
                                             =========        =========

     Net loss allocable to Partnership      $(234,600)       $(172,000)
                                             =========        =========
 
NOTE 3 - RELATED PARTY TRANSACTIONS
-----------------------------------

Receivables  from  affiliates   consists  primarily  of  amounts  due  from  WNC
California  Housing Tax Credits IV, L.P.  Series 5 related to the  allocation of
offering expenses incurred, as defined in the Partnership Agreement.

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

        Acquisition  fees of up to 7% of the  gross  proceeds  from  the sale of
        Partnership units.  Acquisition fees of $0 and $13,650 were incurred for
        the six months ended June 30, 1997 and 1996.





                                       11

<PAGE>



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

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

NOTE 3 - RELATED PARTY TRANSACTIONS (CONTINUED)
-----------------------------------------------

        An annual asset management fee equal to the greater amount of (i) $2,000
        for each Apartment Complex, or (ii) 0.275% of Gross Proceeds.  In either
        case,  the fee will be decreased or increased  annually based on changes
        to the  Consumer  Price  Index.  However,  in no event will the  maximum
        amount exceed 0.2 % of the invested assets (defined as the Partnership's
        capital  contributions  to the limited  partnerships  plus its allocable
        percentage of the permanent financing) of the limited partnerships which
        are  subsidized  under one or more  Federal,  state or local  government
        programs.  The  Partnership  has  incurred  fees of $15,813 for each six
        month period ended June 30, 1997 and 1996.

        Reimbursement for organizational, offering and selling expenses advanced
        by an  affiliate  of the General  Partner on behalf of the  Partnership.
        These reimbursements plus all other organizational and offering expenses
        inclusive  of  sales  commissions  will  not  exceed  15% of  the  gross
        proceeds.  During the six months  ended  June 30,  1997 the  Partnership
        incurred organizational, offering and selling expenses of $-0-, $350 and
        $-0-,  respectively  and during the six months  ended June 30,  1996 the
        Partnership  incurred  organizational,  offering and selling expenses of
        $-0-, $7,009 and $-0-, 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 return on  investment  (as defined in the
        Agreement  of Limited  Partnership)  and is payable only if services are
        rendered in the sales effort.





                                       12



<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

NOTE 3 - RELATED PARTY TRANSACTIONS (CONTINUED)
-----------------------------------------------

Accrued fees and advances due to affiliates of the General  Partner  included in
the  accompanying  balance sheet  consists of the following at June 30, 1997 and
December 31, 1996:

                                                          1997             1996
                                                          ----             ----
                                                        

      Acquisition fees                                  $  23,993     $  23,993
      Advances made for acquisition costs,
       organizational, offering and selling
       expenses                                             1,825         1,512
      Asset management fees accrued                        34,063        18,250
      Other advances and expenses                          24,025             -
                                                           ------        ------
                                                        $  83,906     $  43,755
                                                           ======       =======
NOTE 4 - PAYABLE TO LIMITED PARTNERSHIPS
----------------------------------------

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

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

The  Partnership  will not make a provision  for income taxes since all items of
taxable income and loss will be allocated to the partners for inclusion in their
respective income tax returns.





                                       13



<PAGE>


Item 2. Management's  Discussion and Analysis of Financial Condition and Results
of Operation

        WNC California  Housing Tax Credits IV, L.P., Series 4 - is a California
Limited  Partnerships formed under the laws of the State of California on May 4,
1993 to acquire limited partnership interests in limited partnerships  ("Limited
Partnerships")  which own multifamily  apartment complexes that are eligible for
low-income  housing  federal income tax credits (the "Housing Tax Credit").  WNC
California Housing Tax Credits IV, L.P., Series 4 ("the Partnership")

As of June 30, 1997, the Partnership has received subscriptions for 11,500 Units
at $1,000 per Unit consisting of cash of $11,099,050 and discounts $400,950. The
offering  terminated in August,  1995 at which time the subscriptions for 11,500
units were accepted.

The Partnership raised funds from investors through its public offering of units
of limited  partnership  interest  ("Units")  and  intends to apply such  funds,
including the installment  payments of the limited partners' promissory notes as
received, to the acquisition of investments in Limited Partnerships, acquisition
fees, the establishment of reserves,  the payment of operating  expenses and the
payment of expenses of this offering.

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

Overall,  as reflected in its Statement of Cash Flows, the Partnership had a net
decrease in cash and cash  equivalents  of  approximately  $908,000  for the six
months  ended June 30,  1997.  Cash of  approximately  $64,000  was  provided by
operating   activities   during  six  months  ended  June  30,  1997.   Cash  of
approximately  $972,000 used by investing  activities and consisted primarily of
capital  contributions  to limited  partnerships.  Cash  provided  by  operating
activities  consisted primarily of interest received on cash deposits,  and cash
used  consisted  primarily of payments  operating  fees and expenses.  The major
components of all these activities are discussed in greater detail below.

Overall,  as reflected in its Statement of Cash Flows, the Partnership had a net
decrease in cash and cash  equivalents  of  approximately  $552,000  for the six
months  ended June 30,  1996.  Cash of  approximately  $90,000  and  $62,000 was
provided by operating activities and financing  activities,  respectively during
six months ended June 30, 1996. Cash of approximately $704,000 used by investing
activities and consisted of capital  contributions  to limited  partnerships and
acquisition   fees  and   expenses  of   approximately   $690,000  and  $14,000,
respectively.  Cash  provided by  financing  activities  consisted  primarily of
collection of notes receivable and cash used consisted of payments to affiliates
of cash advanced.  Cash provided by operating  activities consisted primarily of
interest received on cash deposits and investors notes receivable, and cash used
consisted  primarily  of  payments  operating  fees  and  expenses.   The  major
components of all these activities are discussed in greater detail below.


As of June 30, 1997, the Partnership was indebted to WNC & Associates,  Inc. for
approximately $84,000. The component items of such indebtedness were as follows:
accrued  Acquisition  Fees of approximately  $24,000,  advances to pay front-end
fees and for payment of  operating  fees and expenses of  approximately  $4,000,
Asset  Management  Fees of $34,000  and  advances to  affiliates  of the general
partner of $25,000. As of December 31, 1996, the Partnership was indebted to WNC
& Associates for approximately $44,000 consisting of accrued Acquisition Fees of
approximately  $24,000,  advances  to pay  front-end  fees of $2,000,  and Asset
Management Fees of $18,000.


                                       14


<PAGE>



As of June 30, 1997 the  Partnership has made offering costs  reimbursements  in
excess of the amount  allocated  on a per-Unit  basis  among the  issuers of WNC
California   Housing  Tax  Credits  IV,  L.P.,  Series  through  Series  9.  The
Partnership is due approximately  $96,000 from the other issuer,  WNC California
Housing Tax Credits IV, L.P., Series 5.

As of June 30, 1997 and  December  31, 1996,  the  Partnership  has received and
accepted  subscriptions funds in the amount of $11,099,000.  As of June 30, 1997
and December 31, 1996, the Partnership had made capital  contributions  to Local
Limited Partnerships in the amount of approximately $7,268,000,  and $6,443,000,
respectively,  and had  commitments  for  additional  capital  contributions  of
approximately $1,107,000 and $1,930,000, respectively.

It is not  expected  that any of the  local  limited  partnerships  in which the
Partnership will invest will generate cash from operations sufficient to provide
distributions to the limited partners in any significant  amount. Such cash from
operations,  if any,  would  first  be used to meet  operating  expenses  of the
Partnership,  including the payment of the asset  management  fee to the General
Partner.

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

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

Under its  partnership  agreement the  Partnership  does not have the ability to
assess its partners for additional  capital  contributions to provide capital if
needed  by the  Partnership  or  local  limited  partnerships.  Accordingly,  if
circumstances arise that cause the local limited partnerships to require capital
in addition to that  contributed by the  Partnership and any equity of the local
general partners, the only sources from which such capital needs will be able to
be  satisfied  (other than the limited  reserves  available  at the  Partnership
level) will be (i) third-party debt financing  (which may not be available,  if,
as expected, the apartment complexes owned by the local limited partnerships are
already  substantially  leveraged),  (ii)  additional  equity  contributions  or
advances of the local general partners,  (iii) other equity sources (which could
adversely  affect the  Partnership's  interest in tax credits,  cash flow and/or
proceeds of sale or refinancing of the apartment complexes and result in adverse
tax  consequences to the limited  partners),  or (iv) the sale or disposition of
the apartment  complexes (which could have the same adverse effects as discussed
in (iii) above).


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<PAGE>


The  Partnerships'  capital  needs and  resources  are expected to undergo major
changes  during  their  first  several  years of  operations  as a result of the
completion of their  offerings of Units and their  acquisition  of  investments.
Thereafter,  the  Partnerships'  capital  needs and resources are expected to be
relatively  stable over the  holding  periods of the  investments  except to the
extent of proceeds received in payment of Promissory Notes and disbursed to fund
the deferred obligations of the Partnerships.
   Results of Operations

As of June 30, 1997 and 1996, The  Partnership had acquired nine and eight Local
Limited  Partnership  Interests,  respectively.  Each of the nine Local  Limited
Partnerships  receives or is expected to receive government  assistance and each
of them has received a reservation for Housing Tax Credits.  As of June 30, 1997
and 1996, only eight and six,  respectively,  of the Apartment  Complexes in the
Partnership had commenced  operations.  Accordingly,  the "Equity in losses from
limited  partnerships"  for the period ended June 30, 1997 and 1996 reflected in
the Statement of Operations of the  Partnership is not indicative of the amounts
to be reported in future years.

As reflected on its  Statements of  Operations,  The  Partnership  had a loss of
approximately  $231,000  and $129,000 for the six months ended June 30, 1997 and
1996  respectively.  The  component  items of revenue and expense are  discussed
below.

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

Expenses.  The  most  significant  component  of  operating  expenses  is and is
expected to be the Asset  Management Fee. The Asset  Management Fees is equal to
the  greater of (i) $2,000 for each  Apartment  Complex or (ii)  0.275% of gross
proceeds,  and will be decreased or increased  annually  based on changes to the
Consumer Price Index.  Asset management fee of approximately  $8,000 was accrued
for each of the six month periods ended June 30, 1997 and 1996.

Amortization  expense consist of the  amortization  over a period of 30 years of
the Acquisition Fee and other expenses  attributable to the acquisition of Local
Limited Partnership Interests.  Interest expense was incurred as described above
under "Liquidity and Capital Resources." Interest expense is expected to minimal
after 1996. Office expense consist of the Partnership's administrative expenses,
such as legal fees, bank charges and investor reporting expenses.

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

The Partnership's  equity in losses from limited partnerships is equal to 99% of
the aggregate net loss of the limited  partnerships.  After rent-up, the limited
partnerships  are expected to generate  losses  during each year of  operations;
this is so because,  although rental income is expected to exceed cash operating
expenses,  depreciation  and  amortization  deductions  claimed  by the  limited
partnerships are expected to exceed net rental income.




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<PAGE>



Part II.  Other Information

Item 1.  Legal Proceedings

        None.

Item 6.  Exhibits and Reports on Form 8-K

1.  NONE.


        No  reports on Form 8-K were filed  during  the  quarter  ended June 30,
1997.






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<PAGE>


         Pursuant to the  requirements  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 & ASSOCIATES, INC         General Partner



By:     /s/ John B. Lester, Jr.
-----------------------------------------------------
John B. Lester, Jr.   President

Date: August 18, 1997



By:  /s/ Theodore M. Paul
-----------------------------------------------------
Theodore M. Paul      Vice President - Finance

Date: August 18, 1997




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