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, 1998

                                       OR

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

For the transition period from ________ to ___________

Commission file number: 33-76970


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

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

California                                                   33-0601852


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, 1998




PART I. FINANCIAL INFORMATION

 Item 1. Financial Statements

   Balance Sheets, June 30, 1998 and
     December 31, 1997......................................................3

   Statement of Operations
     For the three months and six months ended June 30, 1998 and 1997.......4

   Statement of Partners' Equity
     For the six months ended June 30, 1998 and 1997........................5

   Statement of Cash Flows
     For the six months ended June 30, 1998 and 1997........................6

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

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

 Item 3.  Quantitative and Qualitative Disclosures
          Above Market Risks...............................................16


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, 1998 and December 31, 1997

                                             1998                     1997
                                             ----                     ----

                                     ASSETS

Cash and cash equivalents      $        1,013,286        $       1,147,906
Receivable from affiliates                 14,271                   31,646
 Investment in limited
  partnerships - Note 2                 7,192,082                7,622,211
 Other assets                                   -                        -
                                       ----------               ----------
                               $        8,219,639        $       8,801,763
                                       ==========               ==========


                   LIABILITIES AND PARTNERS' EQUITY (DEFICIT)

Liabilities:
Payable to limited partnership
    - Note 4                   $          222,119        $         363,634
 Accrued fees and expenses due to
   general partner and affiliates
   - Note 3                                     -                    6,445
                                       ----------               ----------     
  Total liabilities                       222,119                  370,079
                                       ----------               ----------

Partners' equity (deficit):
 General partner                          (21,198)                 (16,856)
 Limited partners (25,000 units 
   authorized, 11,500 issued and 
   outstanding)                         8,018,718                8,448,540
                                       ----------               ----------
Total partners' equity                  7,997,520                8,431,684
                                       ----------               ----------
                                $       8,219,639        $       8,801,763
                                       ==========               ==========




                                    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, 1998 and 1997

                                        1998                     1997
                                        ----                     ----
                                 Three       Six         Three          Six
                                 Months     Months       Months        Months

Interest income           $     14,987  $   25,883  $    17,999  $     41,899
                              --------    --------     --------      --------
 
Operating expenses:
Amortization                     6,394      12,773        6,354        12,705
Asset management fees 
 (Note 4)                        7,907      15,813        7,907        15,813
Legal and accounting             7,000      10,350        3,500         4,500
Other                            3,997       4,711        4,789         5,355
                              --------    --------     --------      --------
                                                                             
Total operating expenses        25,298      43,647       22,550        38,373 
                              --------    --------     --------      --------
                                                                             
Loss from operations           (10,311)    (17,764)      (4,551)        3,526

Equity in loss from
 limited partnerships         (194,152)   (416,400)     (69,600)     (234,600)
                              --------    --------     --------      --------   

Net loss                  $   (204,463) $ (434,164) $   (74,151) $   (231,074)
                              ========    ========      =======      ========

Net loss allocated to:
  General partner         $     (2,045)     (4,342)        (742)       (2,311)
                              ========    ========      =======      ========

  Limited partners        $   (202,418)   (429,822)     (73,409)     (228,763)
                              ========    ========      =======      ========

Net loss per limited
 partner units (11,500
 weighted units 1998 and 
 1997)                    $     (17.60) $   (37.38) $     (6.38) $     (20.00)
                              ========    ========      =======      ========


                                    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, 1998 and 1997


For the Six Months Ended June 30, 1998
--------------------------------------
                                         General       Limited
                                         Partner       Partner       Total
                                         -------       -------       -----
 
Equity (deficit), December 31, 1997    $ (16,856)  $  8,448,540  $  8,431,684
                                                                   

Net loss for the six months ended
  June 30, 1998                           (4,342)      (429,822)     (434,164)
                                         -------      ---------     ---------

Equity (deficit), June 30, 1998        $ (21,198)  $  8,018,718  $  7,997,520
                                         =======      =========     =========



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
                                       =========   ============  ============


                                    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, 1998 and 1997


                                                       1998            1997
                                                       ----            ----
Cash flows provided by operating activities:

 Net loss                                      $    (434,164)  $     (231,074)
  Adjustments to reconcile net loss to net
   cash provided by operating activities:
   Equity in loss of limited partnerships            416,400          234,600
   Amortization                                       12,773           12,705
   Asset management fee                                    -           15,813
   Decrease in receivables                            17,375            8,077
   Increase (decrease) in accrued fees and expense
     due to general partner and affiliates            (6,445)          23,988
                                                  ----------       ----------
Net cash provided by operating activities              5,939           64,109
                                                  ----------       ----------  
Cash flows used by investing activities:
   Investments in limited partnerships              (141,513)        (971,862)
   Distribution from limited partnerships              2,539                -
   Acquisition costs and fees                         (1,585)            (300)
                                                  ----------       ---------- 
Net cash used by investing activities               (140,559)        (972,162)
                                                  ----------       ----------


Net decrease in cash and cash equivalents           (134,620)        (908,053)
Cash and cash equivalents, beginning of period     1,147,906        2,614,756
                                                  ----------       ----------
Cash and cash equivalent, end of period        $   1,013,286   $    1,706,703
                                                  ==========       ==========

                                    UNAUDITED
                 See Accompanying Notes to Financial Statements

                                        6


<PAGE>


              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
                       (A California Limited Partnership)
                        
                       STATEMENT OF CASH FLOWS - CONTINUED

                 For the Six months ended June 30, 1998 and 1997



Supplemental disclosure of noncash financing and investing activity:
--------------------------------------------------------------------

                                         For the Six months ended June 30, 
                                         --------------------------------- 
                                                 1998              1997
                                                 ----              ----




During the six months ended June 30, 1998 
and 1997 the Partnership's payables to limited
partnerships;  (in connection with its 
investments in limited partnerships) (see
Note 2) had decreases due to various price 
adjuster provisions in the respective
limited partnership agreements                  $   (2)        $  (10,721) 
                                                  ====           ========











                                    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, 1997 (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, 1998
and the results of operations and changes in cash flows for the six months ended
June 30, 1998 and 1997.

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 are being  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, 1998 the Partnership had acquired limited  partnership  interests
in nine limited  partnerships  each of which owns one Apartment  Complex.  As of
June  30,  1998,  construction  or  rehabilitation  of  eight  of the  Apartment
Complexes  had  been   completed  and  one  was   undergoing   construction   or
rehabilitation.

As of June 30, 1997 the Partnership had acquired limited  partnership  interests
in eight limited  partnerships each of which owns one Apartment  Complex.  As of
June 30, 1997,  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, 1998 and December 31, 1997:

                                                       1998           1997
                                                       ----           ----

 Investment beginning of   period               $  7,622,211    $  8,467,424
 Total capital contributions made and
   accrued with respect to limited 
   partnerships                                           (2)        (10,722)
 Increase in capitalized acquisition fees 
   and costs                                           1,585           3,567
 Distributions from limited partnerships              (2,539)         (6,000)
 Amortization of acquisition fees and costs          (12,773)        (25,419)
 Equity in loss of limited partnerships             (416,400)       (806,639)
                                                   ---------       ---------

 Investment, end of  period                     $  7,192,082     $ 7,622,211
                                                   =========       =========







                                       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, 1998 and 1997 is
as follows:

                                                  Six months ended

                                         June 30, 1998       June 30, 1997

Total revenue                            $  525,000           $  483,000
                                           --------             -------- 
Expenses:
  Operating expenses -  exclusive of
     depreciation and interest              339,000              273,000
  Interest expense                          282,000              161,000
  Depreciation                              325,000              286,000
                                           --------             --------
Total expenses                              946,000              720,000
                                           --------             --------

Net loss                                 $ (421,000)          $ (237,000)
                                           ========             ========

Net loss allocable to Partnership        $ (416,400)          $ (234,600)
                                           ========             ========


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

As of June 30, 1998 and December 31, 1997, receivable from affiliates consist of
amounts due from an affiliate  related to certain costs paid by the  Partnership
on behalf of such affiliate.

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.  No  acquisition  fees were incurred for the six months
     ended June 30, 1998 and 1997.



                                       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, 1998 and 1997.

     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-,  $7,009 and $-0-,
     respectively. No organizational, offering or selling expenses were incurred
     in 1998.

     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.


Accrued fees and advances due to affiliates of the General  Partner  included in
the  accompanying  balance sheet  consists of the following at June 30, 1998 and
December 31, 1997:

                                                      1998           1997
                                                      ----           ----

  Advances made for acquisition costs,
   organizational, offering and selling
   expenses                                       $       -       $  1,055
  Asset management fees accrued                           -          5,390
                                                     ------          -----
                                                  $       -       $  6,445
                                                     ======          =====



                                       12



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

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)



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, 1998, 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  $134,600  for the six
months  ended  June 30,  1998.  Cash of  approximately  $5,900 was  provided  by
operating  activities  during  the six  months  ended  June  30,  1998.  Cash of
approximately  $141,000 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  $908,000  for the six
months  ended June 30,  1997.  Cash of  approximately  $64,000  was  provided by
operating  activities and cash of  approximately  $972,000 was used by investing
activities,  during  six  months  ended June 30,  1997.  Cash used by  investing
activities  consisted of capital  contributions  to limited  partnerships.  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, 1998 and  December  31,  1997,  receivables  from  affiliates  of
approximately  $14,300  consist  of  amounts  due from an  affiliate  related to
certain costs paid by the Partnership on behalf of such affiliate.



                                       14


<PAGE>

As of June 30, 1998 and  December  31, 1997,  the  Partnership  has received and
accepted  subscriptions funds in the amount of $11,099,000.  As of June 30, 1998
and December 31, 1997, the Partnership had made capital  contributions  to Local
Limited Partnerships in the amount of approximately  $8,140,000,  and 7,998,000,
respectively,  and had  commitments  for  additional  capital  contributions  of
approximately $222,000 and $364,000, 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).


                                       15


<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,  1998,  the   Partnership  had  acquired  nine  Local  Limited
Partnerships  Each  has  received  government  assistance  and  each of them has
received a  reservation  for Housing Tax Credits.  As of June 30, 1998 and 1997,
nine and eight, 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,  1998 and 1997  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  $434,000  and $231,000 for the six months ended June 30, 1998 and
1997  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  $15,800 was accrued
for each of the six month periods ended June 30, 1998 and 1997.

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

Item 3. Quantitative and Qualitative Disclosures Above Market Risks

NONE.



                                       16


<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,
1998.






                                       17

<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 4, 1998



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

Date: August 4, 1998




                                       18