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 September 30, 1997

                                       OR

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

For the transition period from ________ to ___________

Commission file number: 33-76970


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

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

California                                                   33-0601852

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

(714) 662-5565


         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes ____ No X



<PAGE>

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

                               INDEX TO FORM 10-Q

                       FOR THE QUARTER ENDED SEPTEMBER 30, 1997




PART I. FINANCIAL INFORMATION

 Item 1. Financial Statements

 Balance Sheets, September 30, 1997 and
   December 31, 1996.........................................................3

 Statement of Operations
  For the three months and nine months ended September 30, 1997 and 1996.....4

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

 Statement of Cash Flows
  For the nine months ended September 30, 1997 and 1996......................6

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

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



PART II. OTHER INFORMATION

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

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



<PAGE>

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

                                    BALANCE SHEETS
                    September 30, 1997 and December 31, 1996

                                             1997                     1996
                                             ----                     ----
ASSETS

Cash and cash equivalents          $        1,557,186       $        2,614,756
Receivables from affiliates                    95,670                  121,825
 Investment in limited
  partnerships (Note 2)                     8,156,548                8,467,424
 Other assets                                       -                   12,912
                                           ----------               ----------
                                                  
                                   $        9,809,404        $      11,216,917
                                           ==========               ==========


LIABILITIES AND PARTNERS' EQUITY (DEFICIT)

Liabilities:
Payable to limited partnership 
(Note 4)                           $          871,946        $       1,929,597
 Accrued fees and expenses due to
   general partner and affiliates 
   (Note 3)                                    30,584                   43,755
                                           ----------               ----------
  Total liabilities                           902,530                1,973,352
                                           ----------               ----------

Partners' equity (deficit):
 General partner                              (12,103)                  (8,737)
 Limited partners (25,000 units 
 authorized, 11,500 issued 
 and outstanding)                           8,918,977                9,252,302
                                           ----------               ----------
Total partners' equity                      8,906,874                9,243,565
                                           ----------               ----------
                                    $       9,809,404        $      11,216,917
                                           ==========               ==========




                                    UNAUDITED
                 See Accompanying Notes to Financial Statements

                                       3


<PAGE>

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

                              STATEMENT OF OPERATIONS  
        For the Three and Nine Months Ended  September  30, 1997 and 1996

                                        1997                      1996
                                        ----                      ----
                                Three         Nine         Three         Nine
                                Months        Months       Months        Months
                                ------        ------       ------        ------

Interest income       $        13,315   $     55,214 $     36,690  $    17,170
                            ---------      ---------    ---------    ---------

Operating expenses:
Amortization                    6,354         19,059        6,302       18,514
Asset management fees 
(Note 4)                        7,906         23,719        7,906       23,719
Legal and accounting              500          5,000         (175)       5,000
Other                           1,422          6,777          799        5,429
                            ---------      ---------    ---------    ---------
                                                                              

Total operating expenses       16,182         54,555       14,832       52,662
                            ---------      ---------    ---------    ---------

Loss from operations           (2,867)           659       21,858       64,508
                                                                                

Equity in loss from
 limited partnerships        (102,400)      (337,000)    (231,000)    (403,000)
                            ---------      ---------    ---------    ---------

Net loss              $      (105,267) $    (336,341)  $ (209,142)  $ (338,492)
                            =========      =========    =========    =========

Net loss allocated to:
General partner       $        (1,053) $      (3,363)  $   (2,091)  $   (3,385)
                            =========      =========    =========    =========

Limited partners      $      (104,214) $    (332,978)  $ (207,051)  $ (335,107)
                            =========      =========    =========    =========

Net loss per limited
 partner units (11,500
 weighted units 
 1997 and 1996)       $         (9.06) $      (28.95) $    (18.00) $    (29.14)
                            =========      =========    =========    =========

                                      UNAUDITED
                     See Accompanying Notes to Financial Statements

                                         4


<PAGE>

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

                         STATEMENT  OF  PARTNERS'  EQUITY 
              For the Nine Months Ended September 30, 1997 and 1996


For the Nine Months Ended September 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 nine months ended
  September 30, 1997                     (3,363)       (332,978)      (336,341)
                                       --------       ---------      ---------

Equity (deficit), September 30, 1997 $  (12,103) $    8,918,977  $   8,906,874
                                       ========       =========      =========




For the Nine Months Ended September 30, 1996

                                        General         Limited
                                        Partner         Partner       Total
                                        -------         -------       -----

Equity (deficit), December 31, 1996  $  (14,581) $     9,473,254  $  9,458,673
Capital collected from 
  notes receivable                                       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
                                       ========        =========     =========



                                    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 Nine Months Ended September 30, 1997 and 1996

                                                  1997                    1996
                                                  ----                    ----
Cash flows provided by operating activities:

Net loss                                  $     (336,341)     $       (338,492)
 Adjustments to reconcile net loss to net
 cash used in operating activities:
  Equity in loss of limited partnerships         337,000               403,000
  Amortization                                    19,059                18,514
  Increase (decrease) in asset 
    management fee payable                       (36,281)              (21,281)
  Decrease in interest receivable                 39,067                13,821
  Accrued fees and expense due
  to general partner and affiliates               22,760                (5,613)
                                              ----------             ---------

Net cash provided by operating activities         45,264                69,949
                                              ----------             ---------

Cash flows used by investing activities:
 Investments in limited partnerships          (1,102,834)             (984,793)
 Loan receivable from limited partnerships                            (100,000)
 Acquisition costs and fees                            -               (29,377)
                                              ----------             ---------
                                                                                
Net cash used by investing activities         (1,102,834)           (1,114,170)
                                              ----------             ---------

Cash flows provided by financing activities:
Collection of notes receivable                         -               172,500
 Offering costs                                                        (77,541)
                                               ----------             --------- 
     
Net cash provided by financing activities              -                94,959
                                              ----------             ---------
                                                                              

Net decrease in cash and cash equivalents     (1,057,570)             (949,262)
Cash and cash equivalents, 
 beginning of period                           2,614,756             3,827,214
                                              ----------             ---------
Cash and cash equivalent, end of period  $     1,557,186      $      2,877,952
                                              ==========             =========

                                        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 Nine months ended September 30, 1997 and 1996



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

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


                                    For the Nine months Ended September 30,
                                    ---------------------------------------
                                    
                                           1997                    1996
                                           ----                    ----




Increased due to acquisition 
 of limited partnership interests                                $  311,677
Decreases due to various price 
 adjuster provisions in the respective
 limited partnership agreements             $  (10,721)            (206,648)
                                               -------             --------
  Net non-cash activity in Partnership' 
  payables to limited partnerships          $  (10,721)               5,029
                                               =======             ========

  Other non-cash activity:
   The Partnership has incurred 
   but not paid:
    Acquisition fees and costs 
   payable to affiliate general partner                           $  12,244
                                                                   ========
  Selling fees advanced by affiliate
   of general partner                                             $   1,475
                                                                   ========

The Partnership has not received
 O & O reimbursements from an affiliate                           $ 142,141
                                                                   ========


                                     UNAUDITED
                    See Accompanying Notes to Financial Statements

                                         7






<PAGE>

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

                           NOTES TO FINANCIAL STATEMENTS


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

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

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

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

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

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


                                   8



<PAGE>

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

                   NOTES TO FINANCIAL STATEMENTS (CONTINUED)

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

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

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

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

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

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

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



                                      9


<PAGE>


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

                   NOTES TO FINANCIAL STATEMENTS (CONTINUED)

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

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

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 nine 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
September 30, 1997 and December 31, 1996:

                                                  1997                1996
                                                  ----                ----

 Investment beginning of period            $   8,467,424        $   8,494,018 
 Total capital contributions made and 
  accrued with respect to 
  limited partnership                             45,183              484,987
 Increase in capitalized acquisition 
  fees and costs                                       0               41,572
 Amortization of acquisition fees and costs      (19,059)             (24,865)
 Equity in loss of limited partnerships         (337,000)            (528,288) 
                                               ---------            --------- 

 Investment, end of period                  $  8,156,548         $  8,467,424
                                               =========            =========




                                       10


<PAGE>


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

                   NOTES TO FINANCIAL STATEMENTS (CONTINUED)

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

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

                                                 Nine months ended

                                          September 30,     September 30,  
                                              1997              1996
                                              ----              ----

 Total revenue                           $   730,000       $   527,000
                                            --------          --------
 Expenses:
  Operating expenses -  exclusive of
   depreciation and interest                 414,000           360,000
  Interest expense                           269,000           195,000
  Depreciation                               387,000           380,000
                                            --------          --------
 Total expenses                            1,070,000           935,000
                                            --------          --------

 Net loss                                $  (340,000)      $  (408,000)
                                            ========          ========

 Net loss allocable to Partnership       $  (337,000)      $  (403,000)
                                            ========          ========


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

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

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

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

                                          11
<PAGE>

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

                     NOTES TO FINANCIAL STATEMENTS (CONTINUED)

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

         An  annual  asset  management  fee equal to the  greater  amount of (i)
         $2,000 for each Apartment Complex, or (ii) 0.275% of Gross Proceeds. In
         either case,  the fee will be decreased or increased  annually based on
         changes to the  Consumer  Price  Index.  However,  in no event will the
         maximum  amount  exceed 0.2 % of the  invested  assets  (defined as the
         Partnership's  capital  contributions to the limited  partnerships plus
         its allocable  percentage  of the  permanent  financing) of the limited
         partnerships  which are subsidized under one or more Federal,  state or
         local government programs. The Partnership has incurred fees of $23,719
         for each nine month period ended September 30, 1997 and 1996.

         Reimbursement  for   organizational,   offering  and  selling  expenses
         advanced  by an  affiliate  of the  General  Partner  on  behalf of the
         Partnership.  These  reimbursements  plus all other  organizational and
         offering expenses inclusive of sales commissions will not exceed 15% of
         the gross proceeds. During the nine months ended September 30, 1997 the
         Partnership incurred  organizational,  offering and selling expenses of
         $-0-,  $350 and $-0-,  respectively  and during the nine  months  ended
         September 30, 1996 the Partnership  incurred  organizational,  offering
         and selling expenses of $-0-, $(113,678) and $-0-, respectively.

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





                                      12



<PAGE>

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

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

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

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

                                              1997                   1996
                                              ----                   ----

Acquisition fees                           $  23,993               $  23,993
Advances made for acquisition costs,
 organizational, offering and
 selling expenses                              1,825                   1,512
Asset management fees                        (18,031)                 18,250
Other advances and expenses                   22,797                       -
                                            --------                 -------
                                           $  30,584               $  43,755
                                            ========                 =======


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

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

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

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





                                       13


<PAGE>

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

WNC California  Housing Tax Credits IV, L.P.,  Series 4 ("the  Partnership")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").

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

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

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

Overall,  as reflected in its Statement of Cash Flows, the Partnership had a net
decrease in cash and cash equivalents of  approximately  $1,056,000 for the nine
months ended September 30, 1997. Cash of  approximately  $45,000 was provided by
operating  activities  during nine months  ended  September  30,  1997.  Cash of
approximately $1,103,000 was used by investing activities and consisted entirely
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  $849,000 for the nine
months ended  September 30, 1996. Cash of  approximately  $70,000 and 95,000 was
provided by operating activities and financing  activities,  respectively during
nine  months  ended  September  30,  1996.  Cash  of  an  aggregate   amount  of
approximately  $1,114,000 used by investing  activities and consisted of capital
contributions  to limited  partnerships,  loan made to limited  partnership  and
acquisition  fees and expenses of approximately  $985,000,  100,000 and $29,000,
respectively.  Cash  provided by  financing  activities  consisted  primarily of
collection of notes receivable and cash used consisted of payments to affiliates
of cash advanced.  Cash provided by operating  activities consisted primarily of
interest received on cash deposits and investors notes receivable, and cash used
consisted  primarily  of  payments  operating  fees  and  expenses.   The  major
components of all these activities are discussed in greater detail below.


As of September 30, 1997, the Partnership was indebted to WNC & Associates, Inc.
for  approximately  $31,000.  The component items of such  indebtedness  were as
follows:  accrued  Acquisition  Fees of approximately  $24,000,  advances to pay
front-end fees and for payment of operating  fees and expenses of  approximately
$3,000,  Asset  Management  Fees of $(18,000)  and advances to affiliates of the
general  partner of $22,000.  As of  December  31,  1996,  the  Partnership  was
indebted to WNC & Associates  for  approximately  $44,000  consisting of accrued
Acquisition  Fees of  approximately  $24,000,  advances to pay front-end fees of
$2,000, and Asset Management Fees of $18,000.


                                      14


<PAGE>

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

As of September 30, 1997 and December 31, 1996, the Partnership has received and
accepted  subscriptions funds in the amount of $11,099,000.  As of September 30,
1997 and December 31, 1996, the  Partnership had made capital  contributions  to
Local  Limited  Partnerships  in the  amount of  approximately  $7,546,000,  and
$6,443,000,   respectively,   and  had   commitments   for  additional   capital
contributions of approximately $872,000 and $1,930,000, respectively.

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

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

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

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

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<PAGE>

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

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

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

As reflected on its  Statements of  Operations,  The  Partnership  had a loss of
approximately $333,000 and $335,000 for the nine months ended September 30, 1997
and 1996 respectively.  The component items of revenue and expense are discussed
below.

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

Expenses.  The  most  significant  component  of  operating  expenses  is and is
expected to be the Asset  Management Fee. The Asset  Management Fees is equal to
the  greater of (i) $2,000 for each  Apartment  Complex or (ii)  0.275% of gross
proceeds,  and will be decreased or increased  annually  based on changes to the
Consumer Price Index. Asset management fee of approximately  $23,700 was accrued
for each of the nine month periods ended September 30, 1997 and 1996.

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

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

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

                                      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  September
30, 1997.







                                        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: November 11, 1997

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

Date: November 11, 1997














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