FORM 10-Q


                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

(Mark One)

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


For the quarterly period ended:    September 30, 1996
                                                             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 through 9
             (Exact name of registrant as specified in its charter)


           California              33-0531301 (Series 4) & 33-0676287 (Series 5)
 (State or other jurisdiction of              (I.R.S. Employer
  incorporation or organization)               Identification No.)


              3158 Redhill Avenue, Suite 120, Costa Mesa, CA 92626
                    (Address of principal executive offices)


                                 (714) 662-5565
                         (Registrant's telephone number,
                              including area code)

                                       N/A
     (Former name,  former address and former fiscal year, if changed since last
     report)
         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 [ ]

                                       
<PAGE>



         WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., Series 4 through 9

                       (A California Limited Partnership)

                               INDEX TO FORM 10-Q

                    FOR THE QUARTER ENDED September 30, 1996

PART I. FINANCIAL INFORMATION

    Item 1. Financial Statements- Series 4

         Balance Sheets, September 30, 1996 and December 31, 1995              4

         Statement of Operations
            For the three and nine months ended September 30, 1996 and         5
            1995

         Statement of Partners' Equity
            For the nine months ended September 30, 1996 and 1995              6

         Statement of Cash Flows
            For the nine months ended September 30, 1996 and 1995              7

         Notes to Financial Statements                                         9

     Item 1. Financial Statements- Series 5

         Balance Sheets, September 30, 1996 and December 31, 1995             15

         Statement of Operations
            For the Period  from  February  26,  1996 (Date  Operations       16
            commenced)  to September 30, 1996

         Statement of Partners' Equity
            For the Period  from  February  26,  1996 (Date  Operations       17
            commenced)  to September 30, 1996

         Statement of Cash Flows
            For the Period  from  February  26,  1996 (Date  Operations       18
            commenced)  to September 30, 1996

        Notes to Financial Statements                                         20

                                       
<PAGE>



         WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., Series 4 through 9
                       (A California Limited Partnership)

                         INDEX TO FORM 10-Q (CONTINUED)

                    FOR THE QUARTER ENDED September 30, 1996



PART I. FINANCIAL INFORMATION (CONTINUED)

     Item 2.  Management's  Discussion  and  Analysis  of  Financial          26
     Condition  and  Results  of Operations


PART II. OTHER INFORMATION

    Item 6. Exhibits and Reports on Form 8-K                                  32

    Signatures                                                                33


                                       
<PAGE>







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

                                 BALANCE SHEETS
                    September 30, 1996 and December 31, 1995

                                                       1996               1995
                                                       ----               ----

                                           ASSETS

Cash and cash equivalents                        $ 2,877,952         $ 3,827,214
O & O reimbursements due from affiliate-Note 2       142,141
Loans receivable from limited partnerships           100,000
 Investment in limited partnerships - Note 3       8,119,154           8,494,018
 Other assets                                         12,003              25,824
                                                      ------              ------
                                                 $11,251,250         $12,347,056
                                                  ==========          ==========


                        LIABILITIES AND PARTNERS' EQUITY

Liabilities:
Payable to limited partnership - Note 5           $ 1,806,093        $ 2,785,857
 Accrued fees and expenses due to
   general partner and affiliates - Note 4             38,798            102,526
                                                    ----------         ---------
  Total liabilities                                 1,844,891          2,888,383
                                                    ----------         ---------

Partners' equity (deficit):
 General partner                                      (16,829)          (14,581)
 Limited partners (25,000 units authorized,
   11,500 issued and outstanding)                    9,423,188         9,473,254
                                                     ---------         ---------
Total partners' equity                               9,406,359         9,458,673
                                                     ---------         ---------
                                                   $11,251,250       $12,347,056
                                                    ==========        ==========




                                    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  OPERATIONS
         For the Three and Nine Months Ended September 30, 1996 and 1995

                                                  1996                     1995
                                                  ----

                                 Three         Nine         Three         Nine
                                 Months        Months       Months        Months

Interest income               $  36,690     $ 117,170    $  52,249     $  71,747
                                 ------       -------       ------        ------

Operating expenses:
Amortization                      6,302        18,514        5,255       10,063
Asset management fees (Note 4)    7,906        23,719          724        1,667
Legal and accounting              (175)         5,000                     7,000
Interest expenses                                                -       79,853
Other                               799         5,429       (3,510)       2,730
                                  -----         -----       -------       -----


Total operating expenses         14,832        52,662         2,469     101,313
                                 ------        ------         -----     -------

Loss from operations             21,858        64,508        49,780     (29,566)
Equity in loss from
 limited partnerships          (231,000)     (403,000)      (17,491)    (31,700)
                              ---------     ---------      --------     --------

Net income (loss)            $ (209,142)    $(338,492)    $  32,289    $(61,266)
                              =========     =========        =======     =======

Net loss allocated to:
  General partner           $   (2,091)       (3,385)           323        (613)
                                =======       =======           ===        =====

  Limited partners          $ (207,051)     (335,107)        31,966     (60,653)
                              =========     =========        =======    ========

Net loss per limited
partner units (11,500 and 6,607
weighted units 1996 and 1995)$  (18.00)    $  (29.14)     $     5.00   $  (9.00)
                                =======       =======           =====     ======

                                    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  PARTNERS'  EQUITY 
             For the Nine Months Ended September 30, 1996 and 1995




For the  Nine Months Ended September 30, 1996
                                           General          Limited
                                           Partner          Partner       Total

Equity (deficit), December 31, 1995     $ (14,581)      $ 9,473,254   $9,458,673
Capital collected from notes receivable                     172,500      172,500
Reduction of offering expense                1,137          112,541      113,678
Net loss for the nine months ended
 September 30, 1996                         (3,385)        (335,107)   (338,492)
                                         ---------        ---------      -------

Equity (deficit), September 30, 1996    $ (16,829)      $ 9,423,188   $9,406,359
                                          ========        =========    =========



For the  Nine Months Ended September 30, 1995
                                           General         Limited
                                           Partner         Partner        Total

Equity (deficit), December 31, 1994     $   (3,015)      $1,703,189   $1,700,174

Capital contributions                                     8,942,050    8,942,050
Capital issued for notes receivable -Note 8               (192,500)    (192,500)
Capital collected from notes receivable                     155,500      155,500
Offering expense                            10,382)      (1,027,824) (1,038,206)
Net loss for the nine months ended
 September 30, 1995                           (613)         (60,653)    (61,266)
                                              ----          -------     ------- 

Equity (deficit), September 30, 1995    $  (14,010)      $ 9,519,762  $9,505,752
                                           ========        =========   =========



                                    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  
             For the Nine Months Ended September 30, 1996 and 1995

                                                      1996                 1995
                                                      ----                 ----
Cash flows provided (used) by operating activities:

  Net loss                                       $ (38,492)           $ (61,266)
    Adjustments to reconcile net loss to net
        cash used in operating activities:
        Equity in loss of limited partnerships      403,000               31,700
        Amortization                                 18,514               10,063
        Asset management fee                       (21,281)                1,667
        (Increase) decrease in interest receivable   13,821             (21,170)
        Decrease in interest payable                                    (13,449)
        Accrued fees and expense due to
        general partner and affiliates              (5,613)               12,342
                                                    -------              -------

Net cash provided (used) by operating activities     69,949             (40,113)
                                                     ------             --------

Cash flows used by investing activities:
   Investments in limited partnerships            (984,793)            (387,436)
   Acquisition costs and fees                      (29,377)            (688,464)
   Loan to Limited partnership                    (100,000)
                                                  --------             -------- 
Net cash used by investing activities           (1,114,170)          (1,075,900)
                                                -----------          -----------

Cash flows provided by financing activities:
  Capital contributions from partners               172,500            9,163,250
  Offering costs                                   (77,541)          (1,305,757)
  Payment of advances from affiliates                                (1,262,026)
  Payment of loan payable                                 -          (1,200,000)
                                                   ---------         -----------
Net cash provided by financing activities             94,959           5,395,467
                                                   ---------           ---------

Net increase (decrease) in cash 
  and cash equivalents                             (949,262)           4,279,454
Cash and cash equivalents, beginning of period     3,827,214             484,771
                                                   ---------             -------
Cash and cash equivalent, end of period         $  2,877,952        $  4,764,225
                                                   =========           =========

                                    UNAUDITED
                 See Accompanying Notes to Financial Statements

                                        7


<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 Nine months ended September 30, 1996 and 1995



Supplemental disclosure of noncash financing and investing activity:

                                      For the Nine Months    For the Nine Months
                                      Ended September 30,    Ended September 30,
                                           1996                      1995
                                           ----                      ----
During the nine months ended September  30,1996,  the Partnership's  payables to
limited   partnerships;   (in  connection   with  its   investments  in  limited
partnerships) (see Note 3) had non-cash transactions as follows:

Increases due to acquisition of limited     $211,677                 $833,979
partnership interests Decreases due to
various price adjuster provisions in the
respective limited partnership agreements  (206,648)
The Partnership applied loans receivable
from limited partnerships to ivestments
in limited partnerships                            0                 (1,098,608)
                                                   -                 ---------- 
  Net non-cash activity in Partnership'
   payables to limited partnerships            5,029                   (264,629)
                                               -----                   ---------

Other non-cash activity:
 The Partnership has incurred but not paid:
  Acquisition fees payable to affiliate of   
  general partner                             $12,24 
 Selling fees advanced by
  affiliate of general partner                 1,475

 O & O reimbursement receivable
 from an affiliate                           $142,141


                                    UNAUDITED
                 See Accompanying Notes to Financial Statements

                                        





                                       8
<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, 1995
     (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 September 30, 1996 and the results of operations and changes
     in cash  flows  for the nine  months  ended  September  30,  1996 and 1995.
     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.

                                       9
 <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.


                                       10

<PAGE>


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

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

NOTE 2 - O & O REIMBURSEMENTS DUE FROM AFFILIATE

O & O  Reimbursements  Due  Form  Affiliate  represents  amounts  due  from  WNC
California  Housing Tax Credits IV, Series 5 for reimbursement of Organizational
and  Offering  Expenses.  Section  5.3.1.  (iii)  of the  partnership  agreement
provides that if  Organizational  and Offering  Expenses on a per-Unit basis are
higher for one series than for another (excluding certain discounts),  the total
of  Organizational  and Offering  Expenses  incurred by all such series shall be
allocated  among  them  so that  the  per-Unit  amount  is the  same  (excluding
discounts).  Consequently,  offering  expenses of $142,141  already  paid by WNC
California  Housing Tax Credits IV, Series 5 was allocated to the Partnership in
regards to equalizing offering expenses on a per-Unit basis.


NOTE 3 - INVESTMENT IN LIMITED PARTNERSHIPS

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

As of  September  30, 1995 the  Partnership  had  acquired  limited  partnership
interests in five limited partnerships each of which owns one Apartment Complex.
As of September 30, 1995, construction or rehabilitation of two of the Apartment
Complexes  had  been  completed  and  three  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
September 30, 1996 and December 31, 1995:

                                                   1996                   1995
                                                   ----                   ----
Investment per balance sheet,
beginning of Period                               $8,494,018         $3,355,553
Capital contributions to limited                      
partnerships                                           5,029          4,702,910
Increse in capitalized acquisition
fees and costs                                        41,621            551,835
Amortization                                         (18,514)           (16,056)
Equity in income (loss)of limited
partnerships                                        (403,000)          (100,224)
                                                    --------           -------- 
Investment per balance sheet, end of
period                                            $8,119,154         $8,494,018
                                                   ==========         ==========


                                       11
<PAGE>


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

                   NOTES TO FINANCIAL STATEMENTS (CONTINUED)

NOTE 3 - INVESTMENT IN LIMITED PARTNERSHIPS (CONTINUED)

Selected  financial  information  from the  financial  statements of the limited
partnerships  with  operations for the nine months ended  September 30, 1996 and
1995 is as follows:

                                                   Nine months ended

                                           September 30,     September 30,
                                               1995              1996
                                               ----              ----

Total revenue                              $527,000            $49,000
  Expenses:
   Operating expenses -  exclusive of
    depreciation and interest               360,000             31,000
   Interest expense                         195,000             18,000
   Depreciation                             380,000             32,000
  Total expenses                            935,000             81,000
                                            -------             ------
  Net loss                               $(408,000)          $(32,000)
                                          =========          =========
  Net loss allocable to Partnership      $(403,000)          $(31,700)
                                          =========          =========


NOTE 4 - RELATED PARTY TRANSACTIONS

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  $13,650  and  $489,940  were
         incurred for the nine months ended September 30, 1996 and 1995.

         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

                                       12


<PAGE>



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

                   NOTES TO FINANCIAL STATEMENTS (CONTINUED)

NOTE 4 - RELATED PARTY TRANSACTIONS (CONTINUED)
         partnerships  which are subsidized under one or more Federal,  state or
         local government programs. The Partnership has incurred fees of $23,719
         and $1,667 for the nine months ended September 30, 1996 and 1995.

         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 nine moths ended September 30, 1996 the
         Partnership incurred  organizational,  offering and selling expenses of
         $-0-,  $(113,678)  and $-0-,  respectively  and during the nine  months
         ended  September  30,  1995 the  Partnership  incurred  organizational,
         offering   and  selling   expenses  of  $-0-,   $634,700  and  $403,500
         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.

Accrued fees and advances due to affiliates of the General  Partner  included in
the  accompanying  balance sheet consists of the following at September 30, 1996
and December 31, 1995:


                                                    1996                  1995
                                                   -------           --------

    Acquisition fees                            $  26,565             $  14,321
    Advances made for acquisition costs,
      organizational, offering and selling
      expenses                                      1,475                56,680
    Asset management fees accrued                  10,344                31,625
    Other advances and expenses                       414                     0
                                                      ---                     -
                                                $  38,798             $ 102,526
                                                   ======               =======

See Note 2 for additional related party transaction.


                                       13


<PAGE>


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

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

NOTE 5 - 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 6 - 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.

NOTE 7 - SUBSCRIPTION AND INVESTOR NOTES RECEIVABLE

Limited  partners  who  subscribe  for ten or more units of limited  partnership
interest  ($10,000)  may  elect to pay 50% of such  purchase  price in cash upon
subscription  and the remaining 50% by the delivery of a promissory note payable
bearing interest at the rate of 8% per annum. Principal and interest are due (i)
January 31, 1996 if the investor  subscribes between January 1, 1996 and June 1,
1996 or (ii) the later of the date of  subscription or September 30, 1996 if the
investor  subscribes after June 1, 1996. This amount is presented as a reduction
in partners' equity.

During the nine months ended  September  30,  1996,  the  Partnership  collected
payments of $172,500 for those promissory notes  previously  issued.  During the
nine months ended  September  30, 1995,  the  Partnership  accepted  $192,500 in
promissory  notes from limited  partners and collected  payments of $155,500 for
those promissory notes previously issued.

NOTE 8 - COMMITMENTS AND CONTINGENCIES

The  Partnership is negotiating  to acquire one additional  limited  partnership
interest which would commit the Partnership to additional capital  contributions
of approximately $483,000.

                                       14


<PAGE>




                                          
              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 5
                       (A California Limited Partnership)

                                 BALANCE SHEETS
                    September 30, 1996 and December 31, 1995

                                                  1996                   1995
                                 ASSETS

Cash and cash equivalents                     $ 2,965,712           $      1,000
Investment in limited
  partnerships - Note 2                         4,014,660                      -
Due from affiliate                                 60,456                      -
                                                   ------                  -----

                                              $ 7,040,828           $      1,000
                                              ===========           ============


                        LIABILITIES AND PARTNERS' EQUITY

Liabilities:
 Accrued fees and expenses due to
   general partner and affiliates - Note 3    $     21,145          $          -
Offering costs due from affiliate - Note 4         142,141                     -
Capital contributions payable                    1,370,424                     -
                                                 ---------               -------
   Total liabilities                             1,533,710                     -
                                                 ---------                      

Partners' equity (deficit):
 General partner                                   (7,360)                   100
 Limited partners (10,000 units
  authorized, 6,507 units issued
  and outstanding)                               5,514,478                   900
                                                 ---------                   ---

Total partners' equity                           5,507,118                 1,000
                                                 ---------                 -----

                                               $ 7,040,828           $     1,000
                                               ===========           ===========

                                    UNAUDITED
                 See Accompanying Notes to Financial Statements

                                       15


<PAGE>

              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 5
                       (A California Limited Partnership)

                             STATEMENT OF OPERATIONS
             For the Three Months and Period from February 26, 1996 
               (Date Operations Commenced) to September 30, 1996



                                              Three                      Nine
                                              Months                     Months
                                              ------                     ------

Interest income                           $  19,491                   $  35,806
                                          ---------                   ---------

Operating expenses:
Amortization                                   2,535                      5,003
Other                                            241                      1,134
                                                 ---                      -----
Total operating expenses                       2,776                      6,137
                                               -----                      -----
Loss from operations                          16,715                     29,669
                                              ------                     ------
Net income                                $  16,715                    $ 29,669
                                           =========                    ========

Net income allocated to:
  General partner                          $     167                    $    297
                                           =========                    ========

  Limited partners                         $  16,548                    $ 29,372
                                           =========                    ========

Net income per 4,113 weighted limited
partner units outstanding 
September 30, 1996                         $    4.02                    $   4.56
                                           =========                    ========






                                    UNAUDITED
                 See Accompanying Notes to Financial Statements

                                       16


<PAGE>

              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 5
                       (A California Limited Partnership)
                          STATEMENT OF PARTNERS' EQUITY

        For the Period from February 26,1996 (Date Operations Commenced)
                             to September 30, 1996





                                        General         Limited
                                        Partner         Partner          Total

Equity (deficit), December 31, 1995   $     100      $      900       $   1,000

Capital contributions (25,000 units
authorized, 6,507 units issued and 
outstanding)                                           6,252,150      6,252,150
Offering expenses                         (7,757)       (775,701)      (767,944)

Net income for the Period from 
 February 26,1996 (Date Operations
 Commenced) to September 30, 1996            297          29,372         29,669
                                             ---          ------         ------

Equity (deficit), September 30, 1996  $   (7,360)     $5,514,478     $5,507,118
                                        ========      ==========     ==========
                                                           





                                    UNAUDITED
                 See Accompanying Notes to Financial Statements


                                       17


<PAGE>

              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 5
                       (A California Limited Partnership)

                             STATEMENT OF CASH FLOWS
        For the Period from February 26,1996 (Date Operations Commenced)
                              to September 30, 1996



Cash flows used by operating activities:

  Net income                                                        $    29,669
    Adjustments to reconcile net 
     loss to net cash used in 
     operating activities: 
     Amortization                                                         5,003
          Accrued fees and expense due to
     general partner and affiliates                                       6,000
                                                                          -----
       Net cash provided by operating activities                         40,672
                                                                         ------
Cash flows used by investing activities:                                        
 Investment in limited partnerships                                  (2,319,104)
 Increase in loans receivable to limited
 Partnerships                                                                 - 
 Acquisition costs and fees                                         
 Increase in due from affilate                                          (60,456)
                                                                        ------- 
       Net cash flows used by investing activities                   (2,709,695)
                                                                     ---------- 

Cash flows provided by financing activities:
  Capital contributions from partners                                 6,252,150
  Increase in subscriptions receivable                                        - 
  Increase in contributions receivable                                        - 
  Offering costs                                                       (618,415)
                                                                       -------- 
      Net cash flows provided by financing activities                 5,633,735
                                                                      ---------

Net increase in cash and cash equivalents                             2,964,712
Cash and cash equivalents, beginning of period                            1,000
                                                                          -----
                                           
Cash and cash equivalent, end of period                             $ 2,965,712
                                                                      =========


                                    UNAUDITED
                 See Accompanying Notes to Financial Statements

                                       18


<PAGE>

              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 5
                       (A California Limited Partnership)
                        
                       STATEMENT OF CASH FLOWS - CONTINUED

          For Period from February 26, 1996 (Date Operations Commenced)
                              to September 30, 1996



Supplemental disclosure of noncash financing and investing activity:


  The Partnership has incurred but not paid:
  Capital contributions in connection with investments in
    limited partnerships                                              $1,370,424
  Offering and selling expenses payable to affiliate of                   15,145
    general partner                                                       
  Offering cost reimbursements due to an affiliate                       142,141
  Advance from affiliate -escrow payment                                   6,000
  






                                  UNAUDITED
                 See Accompanying Notes to Financial Statements
                                     

                                       19

<PAGE>

              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 5
                       (A California Limited Partnership)
                        

                          NOTES TO FINANCIAL STATEMENTS


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization  
-------------  
WNC California  Tax Credits IV, L.P.,  Series 5 (the  "Partnership")  was formed
under the California Revised Limited  Partnership Act on September 12, 1995, and
commenced  operations on February 26, 1996. 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 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 financial statements and related notes thereto contained in
the Partnership's Annual Report for the year ended December 31, 1995.

In  the  opinion  of  the  Partnership,  the  accompanying  unaudited  financial
statements  contain  all  adjustments   (consisting  of  only  normal  recurring
accruals) necessary to present fairly the financial position as of September 30,
1996 and  changes  in cash flows for the for the period  from  February  26,1996
(Date Operations  Commenced) to September 30, 1996.  Accounting  measurements at
interim dates inherently involve greater reliance on estimates than at year end.
The results of operations for the interim period  presented are not  necessarily
indicative of the results for the entire year.

The general partner of the  Partnership is WNC & Associates,  Inc. (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.

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.
                                       20
<PAGE>

              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 5

                       (A California Limited Partnership)
                        (A Development Stage-Enterprise)


                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)


NOTE 1 - ORGANIZATION AND OTHER MATTERS (CONTINUED)

After the limited  partners have received sale or refinancing  proceeds equal to
their  capital  contributions  and their  preferred  return  (as  defined in the
Partnership's  Agreement  of Limited  Partnership)  and the general  partner has
received a  subordinated  disposition  fee 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  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 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.

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

Cash and Cash  Equivalents  
The Partnership  considers all bank  certificates of deposit with a  maturity of
less than three months to be cash equivalents.

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.

                                       21


<PAGE>

              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 5
                       (A California Limited Partnership)
                        (A Development Stage-Enterprise)


                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)


NOTE 2 - INVESTMENT IN LIMITED PARTNERSHIPS

As of  September  30, 1996 the  Partnership  had  acquired  limited  partnership
interests in two limited  partnerships which each own one Apartment Complex.  As
of September  30, 1996,  one Apartment  had started  construction  and the other
commenced construction.

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
partnership upon the acquisition of its limited partnership interest.  Following
is a summary of the  components  of  investment  in limited  partnerships  as of
September 30, 1996.
                                                                       1996
Investment per balance sheet, beginning of
Period                                                                 $       0
Capital contributions to limited partnerships                          3,689,528
Increase in capitalized acquisition fees and costs                       330,135
Amortization                                                             (5,003)
                                                                         ------ 
Investment per balance sheet, end of                                           
period                                                               $ 4,014,660
                                                                     -----------

                                     22


<PAGE>

              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 5
                       (A California Limited Partnership)
                        (A Development Stage-Enterprise)


                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

NOTE 2 - INVESTMENT IN LIMITED PARTNERSHIPS (Continued)

No operations were incurred by limited partnerships for the period from February
26, 1996 (Date Operations Commenced) to September 30, 1996.

NOTE 3 - RELATED PARTY TRANSACTIONS

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 $293,360 were incurred for the nine
     months ended September 30, 1996.

     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  incurred  no fees  for the nine  months  ended
     September 30, 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 nine  months  ended  September  30,  1996 the
     Partnership incurred organizational, offering and selling expenses of $-0-,
     $249,541 and $297,590, 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. 


                                       23
  
<PAGE>

              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 5
                       (A California Limited Partnership)
                        (A Development Stage-Enterprise)


                    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 September 30, 1996
and December 31, 1995:

                                                        1996               1995
                                                        ----               ----
    Due to affiliate of general partner                 $  0            $     0
    Advances made for acquisition costs,
     organizational, offering and selling  expenses   15,145                  0
                                                                        
    Advance payable to affiliate for excrow transfer   6,000                  0
                                                       -----                  -
                                                     $21,145            $     0
                                                     -------                  -
    Receivable from affiliate for advance to limited
      partnership                                    $60,456            $     0
                                                     -------                  -
See Note 4 for additional related party transaction.

NOTE 4 - O & O REIMBURSEMENTS DUE TO AFFILIATE

O & O Reimbursements  Due To Affiliate  represents amounts due to WNC California
Housing  Tax  Credits  IV,  Series 4 for  reimbursement  of  Organizational  and
Offering Expenses.  Section 5.3.1.  (iii) of the partnership  agreement provides
that if Organizational  and Offering Expenses on a per-Unit basis are higher for
one  series  than  for  another  (excluding  certain  discounts),  the  total of
Organizational  and  Offering  Expenses  incurred  by all such  series  shall be
allocated  among  them  so that  the  per-Unit  amount  is the  same  (excluding
discounts).  Consequently,  offering  expenses of $142,141  already  paid by WNC
California  Housing Tax Credits IV, Series 4 was allocated to the Partnership in
regards to equalizing offering expenses on a per-Unit basis.

NOTE 5 - 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.

                                       24



<PAGE>

              WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 5
                       (A California Limited Partnership)
                        (A Development Stage-Enterprise)


NOTES TO FINANCIAL STATEMENTS (CONTINUED)


NOTE 6 - 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.  



                                     25

<PAGE>

                                                            

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                  CONDITION AND RESULTS OF OPERATIONS

WNC California  Housing Tax Credits IV, L.P., Series 4 - Series 9 are 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 ("Series  4") and Series 5
("Series 5") are the only  registrants to have  commenced an offering.  Series 4
and Series 5 are referred together as the "Partnerships".

The partnerships are raising funds from investors  through their 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-Series 4

Overall,  as  reflected  in its  Statement  of Cash  Flows,  Series  4 had a net
decrease in cash and cash  equivalents  of  approximately  $949,000 for the nine
months ended September 30, 1996. Cash of  approximately  $95,000 and $70,000 was
provided by financing  activities  and operating  activities  during nine months
ended  September 30, 1996.  Cash of  approximately  $1,014,000 used by investing
activities and consisted of capital  contributions  to limited  partnerships and
acquisition   fees  and   expenses  of   approximately   $985,000  and  $29,000,
respectively.  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.

Overall,  as  reflected  in its  Statement  of Cash  Flows,  Series  4 had a net
increase in cash and cash equivalents of  approximately  $4,279,000 for the nine
months ended September 30, 1995. This increase in cash was provided by financing
activities, including the proceeds from the Offering and short term indebtedness
described below.  Cash from financing  activities for the period ended September
30, 1995 was  sufficient  to fund the investing  activities  of the  Partnership
during such periods in the amount of approximately $1,076,0000,  which consisted
of investments in limited  partnerships  and acquisition  fees and costs..  Cash
provided by operating  activities  consisted  primarily of interest  received on
cash  deposits,  and cash used  consisted  primarily  of payments  for  interest
expense of approximately  $80,000.  The major components of all these activities
are discussed in greater detail below.

As of September 30, 1996,  Series 4 was indebted to WNC &  Associates,  Inc. for
approximately $39,000. The component items of such indebtedness were as follows:
accrued  Acquisition  Fees of approximately  $27,000,  advances to pay front-end
fees and for payment of operating fees and expenses of approximately  $2,000 and
Asset Management Fees of $10,000.  As of December 31, 1995 Series 4 was indebted
to WNC & Associates for approximately $103,000 consisting of accrued Acquisition
Fees of approximately $14,000,advances to pay front-end fees of $57,000, and

                                       26
<PAGE>


Asset  Management Fees of $32,000.  Associates  obtained the necessary funds for
its 1995 advances to Series 4 for capital contributions  pursuant to a bank line
of credit.  As permitted by Series 4 Agreement,  such funds bore interest at the
lender's rate (i.e., the rate paid by Associates pursuant to its line of credit,
which is equal to 1% per annum over the prime rate  published in The Wall Street
Journal  from  time to time)  which has  ranged  from 9.75 to 10.5% per cent per
annum.  Associate's  loan is payable upon demand and amounts of $1,200,000.  The
loan bore  interest  at a variable  rate equal to the  lender's  prime rate less
0.75% per annum and was  payable  interest  only on a monthly  basis until April
1996 when the entire principle amount was repaid.

As of September 30, 1996 the Series 4 has made offering costs  reimbursements in
excess of the amount  allocated  on a per-Unit  basis  among the  issuers of WNC
California  Housing  Tax  Credit  IV,  L.P.,  Series  4  through  Series  9. The
partnership is due approximately $142,000 from the other issuer, Series 5.
 

As of September 30, 1996  December 31, 1995,  Series 4 has received and accepted
subscriptions  funds in the  amount of  $11,099,000,  of which $0 and  $172,500,
respectively  were  represented  by Promissory  Notes.  As of September 30, 1996
December 31,  1995,  Series 4 had made capital  contributions  to Local  Limited
Partnerships  in  the  amount  of  approximately  $6,086,000,   and  $5,102,000,
respectively,  and had  commitments  for  additional  capital  contributions  of
approximately $1,806,000 and $2,786,000, respectively.

Series 4 and 5 
---------------

Prior to sale of the  Apartment  Complexes,  it is not expected  that any of the
Local  Partnerships in which the Partnerships  have invested or will invest will
generate cash from operations  suffient to provide  distributions to the Limited
Partners in any material amount. Such cash from operations,  if any, would first
be used to meet operating expenses of the Partnerships, including payment of the
asset management fee to the General Partner.  As a result, it is not anticipated
that the Partnerships  will provide  distributions to the Limited Partners prior
to the sale of the Apartment Complexes.

The Partnerships' 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
Partnerships  and the  Partnerships.  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 Partnerships' 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

                                       27

<PAGE>

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 the  Partnership  Agreements the  Partnerships  do not have the ability to
assess the Limited  Partners for  additional  capital  contributions  to provide
capital if needed by the  Partnerships or Local  Partnerships.  Accordingly,  if
circumstances  arise that  cause the Local  Partnerships  to require  capital in
addition to that contributed by the  Partnerships and any equity  contributed by
the general partners of the Local Partnerships, 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  Partnerships are already  substantially  leveraged),  (ii) additional
equity   contributions  or  advances  of  the  general  partners  of  the  Local
Partnerships,  (iii) other  equity  sources  (which could  adversely  affect the
Partnerships' interest in Housing 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).  There can be no assurance  that funds from any of such sources would be
readily available in sufficient  amounts to fund the capital  requirement of the
Local  Partnerships  in  question.  If such funds are not  available,  the Local
Partnerships  would risk  foreclosure on their Apartment  Complexes if they were
unable to  re-negotiate  the terms of their first  mortgages  and any other debt
secured by the Apartment Complexes to the extent the capital requirements of the
Local  Partnerships  relate to such debt. 

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.

                                       28
<PAGE>

Liquidity and Capital Resources-Series 5

Overall,  as  reflected  in its  Statement  of Cash  Flows,  Series  5 had a net
increase in cash and cash equivalents of  approximately  $2,965,000 for the nine
months ended September 30, 1996.  Cash from financing  activities for the period
ended September 30, 1996 of approximately  $5,634,000 was sufficient to fund the
investing  activities  of  Series  5  during  such  periods  in  the  amount  of
approximately  $2,710,000,  which consisted of capital  contributions to limited
partnerships,   advance  to  affiliate  and   acquisition   fees  and  costs  of
approximately $2,319,000, $60,000 and $330,000,  respectively.  Cash used by the
Partnership's  operating  activities was minimal  compared to the  Partnership's
other  activities  and consisted  primarily of payments for  operating  fees and
expenses.   Cash  provided  from  operations  consisted  primarily  of  interest
received.  The major components of all these activities are discussed in greater
detail below.

As of  September  30, 1996 Series 5 was indebted to WNC &  Associates,  Inc. for
approximately $21,000. The component items of such indebtedness were as follows:
advances  to pay  front-end  fees of  approximately  $15,000 and  advances  from
affiliate of the general partner of $6,000.

As of September  30, 1996 the Series 5 has made  offering  costs  reimbursements
less than the amount  allocated  on a per-Unit  basis  among the  issuers of WNC
California   Housing  Tax  Credits  IV,  L.P.,   Series  4  through   Series  9.
Approximately $142,000 is due to the other issuer, Series 4.

As of November  10, 1996 and  September  30,  1996,  Series 5 has  received  and
accepted  subscriptions  funds in the  amount  of  $6,507,000.  .As of  November
10,1996,  September  30, 1996 and December  31, 1995,  Series 5 had made capital
contributions  to Local  Limited  Partnerships  in the  amount of  approximately
$2,319,000,  $2,319,000 and $0, respectively, and had commitments for additional
capital   contributions   of  approximately   $1,370,000,   $1,370,000  and  $0,
respectively.

Results of Operations - Series 4

As of September 30, 1996 and 1995,  Series 4 had acquired  eight and three Local
Limited  Partnership  Interests,  respectively.  Each of the eight 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 September 30,
1996 and 1995, only seven and two,  respectively,  of the Apartment Complexes in
Series 4 had  commenced  operations.  Accordingly,  the  "Equity in losses  from
limited partnerships" for the period ended September 30, 1996 and 1995 reflected
in the Statement of  Operations of Series 4 is not  indicative of the amounts to
be reported in future years.

As  reflected  on  its  Statements  of  Operations,  Series  4  had  a  loss  of
approximately  $335,000 and $61,000 for the nine months ended September 30, 1996
and 1995 respectively.  The component items of revenue and expense are discussed
below.

                                       29



<PAGE>

Revenue. Series 4'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  Series 4 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 was interest
expense  on  borrowings  of  approximately  $80,000  for the nine  months  ended
September  30,  1995;  for the nine months ended  September  30, 1996 and in the
future the Asset  Management Fee was and is expected to be the most  significant
component.  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  $24,000 was accrued for the nine months ended
September 30, 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 1995. Office expense consist of Series 4's administrative  expenses,  such
as legal fees, bank charges and investor reporting expenses.

Because of the  amounts of the Asset  Management  Fee and  amortization  expense
primarily are determined by the Gross Proceeds from the Offering, the number and
size of Apartment  Complexes and the number of investors,  until  termination of
the  Offering and  investment  of the net  proceeds  therefrom,  Series 4 cannot
predict with any accuracy what these amounts will be.

Results of Operations - Series 5

As of September  30, 1996 and  December 31, 1995,  Series 5 had acquired two and
zero  Local  Limited  Partnership  Interest,  respectively.  The  Local  Limited
Partnerships are expected to receive  government  assistance and have received a
reservation  for Housing Tax Credits.  As of September  30, 1996,  the Apartment
Complexes in Series 5 had not commenced operations.  Accordingly,  the Statement
of  Operations  of  Series 5 for the  period  ended  September  30,  1996 is not
indicative of the amounts to be reported in future years.

As  reflected  on  its  Statements  of  Operations,   Series  5  had  income  of
approximately  $30,000 for the period ended  September  30, 1996.  There were no
operations as of September 30, 1995. The component  items of revenue and expense
are discussed below.

Revenue. Series 5'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  Series 5 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.

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<PAGE>


Expenses.  The  components of operating  expenses were not  significant;  in the
future  the  Asset  Management  Fee  is  expected  to be  the  most  significant
component.  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.

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 1995. Office expense consist of Series 5's administrative  expenses,  such
as legal fees, bank charges and investor reporting expenses.

Because of the  amounts of the Asset  Management  Fee and  amortization  expense
primarily are determined by the Gross Proceeds from the Offering, the number and
size of Apartment  Complexes and the number of investors,  until  termination of
the  Offering and  investment  of the net  proceeds  therefrom,  Series 5 cannot
predict with any accuracy what these amounts will be.

Equity in Losses  from Local  Limited  Partnership.  Series 5's equity in losses
from Local Limited  Partnerships  is equal to 99% of the aggregate net losses of
each Local Limited Partnership incurred after admission of Series 5 as a limited
Partner thereof.

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

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<PAGE>
art II.  Other Information

Item 1.  Legal Proceedings

         None.

Item 6.  Exhibits and Reports on Form 8-K

1.  None..

b.

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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 CALIFORINA HOUSING TAX CREDITS IV, L.P., Series 4 and Series 5

By WNC CALIFORINA TAX CREDIT PARTNERS IV, L.P.  General Partner


By WNC & ASSOCIATES, INC.  General Partner



By:  _________________________________
John B. Lester, Jr.        President

Date: November 15, 1996


By: _______________________________________
Theodore M. Paul  Vice President - Finance

Date: November 15, 1996




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