WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P.,
SERIES 5
[GRAPHIC OMITTED]
Supplement Dated May 10, 1996
To Prospectus Dated July 26, 1994
This Supplement is part of, and should be read in conjunction with, the
Prospectus of WNC California Housing Tax Credits IV, L.P., Series 5 ("SERIES 5")
dated July 26, 1994 (the "Prospectus") and the Supplement dated April 30, 1996
to the Prospectus. Capitalized terms used but not defined in this Supplement
have the meanings given to them in the Prospectus.
LOCAL LIMITED PARTNERSHIP INVESTMENT
Included herein is a discussion of a Local Limited Partnership Interest
identified for acquisition by SERIES 5. The Apartment Complex has received a
reservation of Federal Low Income Housing Credits and will be financed by a
conventional loan. While the General Partner believes that SERIES 5 is
reasonably likely to acquire an interest in this Local Limited Partnership,
SERIES 5 may not do so as a result of the failure by the Local Limited
Partnership to satisfy one or more conditions precedent to the payment of each
installment payment, the inability of SERIES 5 to raise additional capital
necessary to complete the purchase of the Local Limited Partnership Interest
identified herein, the purchase of Local Limited Partnership Interests other
than that identified herein, or other factors. Moreover, the terms of the
acquisition may differ from those as described. Accordingly, investors should
not rely on the ability of SERIES 5 to make an investment in this Local Limited
Partnership on the indicated terms in deciding whether to invest in SERIES 5.
SERIES 5 expects to become a limited partner in Housing Associates of
Carthage, L.P., a Missouri limited partnership ("CARTHAGE"). CARTHAGE owns the
Moritz Place Phase II Apartments in Carthage, Missouri.
The following tables contain information concerning CARTHAGE:
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<TABLE>
ACTUAL OR LOCAL LIMITED YEAR
ESTIMATED ESTIMATED PERMANENT PARTNERSHIP'S CREDITS
CONSTRUC- DEVELOP- MORTGAGE ANTICIPATED TO BE
LOCAL PROJECT TION MENT COST NUMBER OF BASIC LOAN AGGREGATE FIRST
LIMITED NAME/NUMBER LOCATION OF COMPLETION (INCLUDING APARTMENT MONTHLY PRINCIPAL TAX CREDITS AVAIL-
PARTNERSHIP OF BUILDINGS PROPERTY DATE LAND COST) UNITS RENTS AMOUNT (1) ABLE
<S> <C> <C> <C> <C> <C> <C>
CARTHAGE Moritz Carthage July 1996- $1,436,714 49 BR units $275 $690,000 $1,284,040 1996
Place (Jasper November 3 2BR units $350 FSBJ (4) (federal)
Phase II Co.), 1996 (3)
Apartments Missouri
13
buildings
(2)
<FN>
(1) Federal Low Income Housing Credits are available over a 10-year period. For
the year in which the credit first becomes available, SERIES 5 will receive only
that percentage of the annual credit which corresponds to the number of months
during which SERIES 5 was a limited partner of the Local Limited Partnership,
and during which the Apartment Complex was completed and in service. See the
discussion under "Low Income Housing Credits Federal Low Income Housing Credits"
in the Prospectus.
(2) Senior citizen housing.
(3) Partial completion is expected in July 1996, at which time rental activities
will commence. Final completion is expected by November 1996.
(4) First State Bank of Joplin ("FSBJ") will provide the mortgage loan for a
term of 15 years at an annual interest rate of 9.25%. Principal and interest
will be payable monthly based on a 30-year amortization schedule.
</FN>
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Carthage (CARTHAGE): Carthage (population 10,700) is the county seat of Jasper
County, Missouri, and is in the southwestern corner of the state at the
intersection of U.S. Highway 71 and State Highway 171, near Interstate Highway
44, approximately ten miles east of Joplin. The major employers for Carthage
residents are Leggett & Platt (furniture components), Butterball Turkey Co. and
Schreiber Foods.
<TABLE>
ESTIMATED
ACQUISI-
LOCAL SHARING RATIOS: TION FEES
GENERAL ALLOCATIONS (4) SERIES 3'S PAYABLE
LOCAL LOCAL PARTNERS' SHARING RATIOS: AND SALE OR CAPITAL TO
LIMITED GENERAL PROPERTY DEVELOPMENT CASH FLOW REFINANCING CONTRIBUTION GENERAL
PARTNERSHIP PARTNERS MANAGER FEE(3) (3) PROCEEDS(5) (6) PARTNER
<S> <C> <C> <C> <C> <C> <C>
CARTHAGE Housing Integrity $153,934 WNC: Greater of 98.99/1 $657,221 $61,400
Associates, Management, 15% or $1,500 (.01 to
L.P. (7) Inc. (8) LGP: 40% Special
Balance: Limited
WNC: 50% Partner)
LGP: 50%
50/50
<FN>
(1) The maximum annual management fee payable to the property manager generally
is determined pursuant to lender regulations. The Local General Partner is
authorized to employ either itself or one of its Affiliates, or a third party,
as property manager for leasing and management of the Apartment Complex so long
as the fee therefor does not exceed the amount authorized and approved by the
lender for the Apartment Complex.
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(2) The Local Limited Partnership will pay its Local General Partner a
development fee in the amount set forth, for services incident to the
development and construction of the Apartment Complex, which services include:
negotiating the financing commitments for the Apartment Complex; securing
necessary approvals and permits for the development and construction of the
Apartment Complex; and obtaining allocations of Low Income Housing Credits. This
payment will be made in installments after receipt of each installment of the
capital contributions made by SERIES 5.
(3) Reflects the amount of the net cash flow from operations, if any, to be
distributed to SERIES 5 ("WNC") and the Local General Partner ("LGP") of the
Local Limited Partnership for each year of operations. Generally, to the extent
that the specific dollar amounts which are to be paid to SERIES 5 are not paid
annually, they will accrue and be paid from sale or refinancing proceeds as an
obligation of the Local Limited Partnership.
(4) Subject to certain special allocations, reflects the respective percentage
interests of SERIES 5 and the Local General Partner in profits, losses and Low
Income Housing Credits commencing with entry of SERIES 5 as a limited partner.
(5) Reflects the percentage interests of SERIES 5 and the Local General Partner
in any net cash proceeds from sale or refinancing of the Apartment Complex,
after payment of the mortgage loan and other Local Limited Partnership
obligations (see, e.g., note 3), and the following, in the order set forth: 120%
of the capital contribution of SERIES 5; and 120% of the capital contribution of
the Local General Partner.
(6) SERIES 5 will make its capital contributions to the Local Limited
Partnership in stages, with each contribution due when certain conditions
regarding construction or operations of the Apartment Complex have been
fulfilled. See "Investment Policies" and "Terms of the Local Limited Partnership
Agreements" under "Investment Objectives and Policies" in the Prospectus.
(7) Housing Associates, L.P. was formed in the state of Missouri in 1995.
The limited partnership is owned by Daniel Allgeier, Al Olson and the Allgeier
Irrevocable Trust. Housing Associates, L.P. is the owner of three other low
income housing projects located in Missouri. The limited partnership has
represented to SERIES 5 that its net worth is nominal. Daniel Allgeier and Al
Olson will serve as guarantors for the construction completion guarantee and the
operating deficit guarantee. Mr. Allgeier and Mr. Olsen have represented to
SERIES 5 that, as of December 31, 1995, they had a combined net worth in excess
of $1,000,000.
(8) Integrity Management, Inc. was formed in Texas in January 1996 by Star
Nolley. Mrs. Nolley has over ten years' experience managing low and moderate
income residential rental properties.
</FN>
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