FORM 10-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
|X| ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the fiscal year ended December 31, 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
State or other jurisdiction of (I.R.S. Employer
incorporation or organization Identification No.)
California 33-0531301
WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., Series 4
3158 Redhill Avenue, Suite 120, Costa Mesa, CA 92626
(714) 662-5565
Securities registered pursuant to Section 12(b) of the Act:
Title of Securities Exchanges on which Registered
NONE NOT APPLICABLE
Securities registered pursuant to section 12(g) of the Act:
NONE
<PAGE>
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 ____
Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K is not contained herein, and will not be contained,
to the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. |X|
DOCUMENTS INCORPORATED BY REFERENCE
List hereunder the following documents if incorporated by reference and
the Part of the Form 10-K (e.g., Part I, Part II, etc.) into which the document
is incorporated: (1) Any annual report to security holders; (2) Any proxy or
information statement; and (3) Any prospectus filed pursuant to Rule 424(b) or
(c) under the Securities Act of 1933. The listed documents should be clearly
described for identification purposes (e.g., annual report to security holders
for fiscal year ended December 24, 1980).
NONE
<PAGE>
Item 1. Business
PART I.
Organization
WNC California Housing Tax Credits IV, Series 4 ("the Partnership" or "Series
4") is a California limited partnership formed under the laws of the State of
California on February 16, 1994. The Partnership was formed to acquire limited
partnership interests in local limited partnerships ("Local Limited
Partnerships") which own multifamily apartment complexes that are eligible for
Federal and (in some cases) California low-income housing tax credits (the "Low
Income Housing Credits").
The general partner of Series 4 is WNC California Tax Credits IV, L.P. ("The
General Partner"). The general partner of WNC California Tax Credit Partners IV,
L.P. is WNC & Associates, Inc. ("Associates"). The business of the Partnership
is conducted primarily through Associates as the Partnership and The General
Partner have no employees of their own.
Holders of Limited Partnership Interests are referred to herein as "Limited
Partners."
On July 26, 1994 the Partnership commenced a public offering of 25,000 Units of
Limited Partnership Interests ("Units"), at a price of $1,000 per Unit. The
Partnership closed its offering August 10, 1995 with a total of 11,500 Units
representing approximately $11,099,000 that were sold throughout the offering.
Enova Financial, Inc., a California corporation which is not an affiliate of the
Partnership or General Partner, purchased 5,096 Units, which represents 44.3% of
the Units outstanding for the Partnership. Enova Financial, Inc. invested
$4,712,000 due to a volume discount of $384,000.
The Partnership has applied and will apply funds raised through their public
offerings, including the installment payments of the Limited Partners'
promissory notes as received, to the purchase price and acquisition fees and
costs of Local Limited Partnership Interests, reserves and expenses of the
Offering.
Description of Business
The Partnership's principal business objective is to provide its Limited
Partners with Low Income Housing Credits. The Partnership's principal business
therefore consists of investing as a limited partner in local limited
partnerships ("Local Limited Partnerships") each of which will own and operate
an apartment complex ("Apartment Complex") which will qualify for the federal
low-income housing tax credit ("Low Income Housing Tax"). The Tax Reform Act of
1986 (the "1986 Act") replaced most existing federal tax incentives for
low-income housing with Section 42 of the Internal Revenue Code, which provides
for the Low Income Housing Credit. In general, an owner of a low-income housing
project under (i) federal law is entitled to receive the Federal Housing Tax
Credit in each year of a ten-year period (the "Credit Period") and (ii) under
California Revenue and Taxation Section 17058 is entitled to receive the
California Housing Tax Credit in each year of a four-year period. The Apartment
Complex is subject to a 15-year compliance period (the "Compliance Period").
<PAGE>
In general, in order to avoid recapture of Low Income Housing Credits, the
Partnership does not expect that it will dispose of its Local Limited
Partnership Interests or approve the sale by a Local Limited Partnership of any
Apartment Complex prior to the end of the applicable Compliance Period. Because
of (i) the nature of the Apartment Complexes, (ii) the difficulty of predicting
the resale market for low-income housing 15 or more year in the future, and
(iii) the inability of the Partnership to directly cause the sale of Apartment
Complexes by the general partners of the respective Local Limited Partnerships
("Local General Partners"), but generally only to require such Local General
Partners to use their respective best efforts to find a purchaser for the
Apartment Complexes, it is not possible at this time to predict whether the
liquidation of substantially all of the Partnership's assets and the disposition
of the proceeds, if any, in accordance with the Partnership's Agreement of
Limited Partnership ("Partnership Agreement") will be able to be accomplished
promptly at the end of the 15-year period. If a Local Limited Partnership is
unable to sell an Apartment Complex, it is anticipated that the Local General
Partner will either continue to operate such Apartment Complex or take such
other actions as the Local General Partner believes to be in the best interest
of the Local Limited Partnership. In addition, circumstances beyond the control
of the General Partner may occur during the Compliance Period which would
require the Partnership to approve the disposition of an Apartment Complex prior
to the end thereof.
As of December 31, 1996, Series 4 had invested in nine Local Limited
Partnerships. Each of these Local Limited Partnerships owns an Apartment Complex
that is eligible for the Low Income Housing Credit. All of the Local Limited
Partnerships also benefit from government programs promoting low- or
moderate-income housing.
The Partnerships' investments in Local Limited Partnerships are subject to the
risks incident to the management and ownership of low income housing and to the
management and ownership of multifamily residential real estate. Some of these
risks are that the Low Income Housing Credit could be recaptured and neither the
Partnerships' investments nor the Apartment Complexes owned by Local Limited
Partnerships will be readily marketable. Additionally, there can be no assurance
that the Partnerships will be able to dispose of their interests in Local
Limited Partnerships at the end of the Compliance Period. The value of the
Partnerships' investments could be subject to changes in national and local
economic conditions, including unemployment conditions, which could adversely
impact vacancy levels, rental payment defaults and operating expenses. This, in
turn, could substantially increase the risk of operating losses for the
Apartment Complexes and the Partnerships. The Apartment Complexes could be
subject to loss through foreclosure. In addition, each Local Limited Partnership
is subject to risks relating to environmental hazards which might be
uninsurable. Because each Partnership's ability to control its operations will
depend on these and other factors beyond the control of the General Partners and
the general partners of the Local Limited Partnerships, there can be no
assurance that either Partnership's operations will be profitable or that the
anticipated Housing Tax Credits will be available to Limited Partners.
As of December 31, 1996, the eight of nine apartment complexes acquired by the
Partnership were completed and in operation and one is under construction. The
Apartment Complexes are being developed by the respective Local General Partners
who acquired the sites and applied for applicable mortgages and subsidies. The
Partnership became the principal limited partner in these Local Limited
Partnerships pursuant to arm's-length negotiations with the Local General
Partners. As a limited partner, the Partnership's liability for obligations of
each Local Limited Partnership is limited to its investment. The Local General
Partners of the Local Limited Partnership retain responsibility for developing,
constructing, maintaining, operating and managing the Apartment Complex.
The following is a schedule of the status, as of December 31, 1996, of the
Apartment Complexes owned by Local Limited Partnerships in which the Partnership
was a limited partner.
<PAGE>
<TABLE>
<CAPTION>
SCHEDULE OF PROJECTS OWNED BY LOCAL LIMITED PARTNERSHIPS
IN WHICH THE PARTNERSHIP HAS AN INVESTMENT
AS OF DECEMBER 31, 1996
No. of Units Units Percentage of Total
Name & Location Apts. Completed Occupied Units Occupied
- --------------- ----- --------- -------- --------------
<S> <C> <C> <C> <C>
CHADRON APARTMENTS I 16 0 0 0%
Chadron, Nebraska
COLONIAL VILLAGE AUBURN 56 56 53 95
Auburn, California
EAGLEVILLE ASSOCIATES I 16 16 14 88
Eagleville, Montana
MAHARLIKA, LTD 69 69 64 93
Stockton, California
PAWNEE ASSOCIATES I 20 20 20 100
Pawnee, Illinois
RANCHERA VILLAGE APTS 14 14 14 100
Santa Barbara, California
SYCAMORE HILLS 24 24 23 96
Salem, Indiana
WILLS POINT CROSSING 36 36 36 100
Wills Point, Texas
WOODLAKE VALENCIA 47 0 0
Woodlake, California -- -- -- --
298 235 224 95%
=== === === ==
</TABLE>
Description of Local Partnerships
- ---------------------------------
Series 4 has become a limited partner in Colonial Village Auburn, a California
limited partnership ("COLONIAL-AUBURN"); Maharlika, a California limited
partnership Eagleville Associates I, a Missouri limited partnership
("EAGLEVILLE"), Maharlika a California Limited Partnership ("MAHARLIKA");
Rancheria Gardens Apartments, a California limited partnership
("RANCHERIA"),Pawnee Associates I, L.P., a Missouri limited partnership
("PAWNEE"), , Sycamore Hills L.P., an Indiana limited partnership ("SYCAMORE"),
in Salem, Indiana, Wills Point Crossing, L.P., a Georgia limited partnership
qualified to do business in Texas ("WILLS POINT") and Woodlake Valencia
Partners, a California limited partnership ("WOODLAKE").
COLONIAL-AUBURN owns the Colonial Village Auburn Apartments in Auburn,
California; EAGLEVILLE owns the MAHARLIKA owns the Filipino Community Building
in Stockton, California; PAWNEE owns the Countryside Manor Apartments in Pawnee,
Illinois, RANCHERIA owns the Rancheria Gardens Apartments in Santa Barbara,
California; SYCAMORE owns the Sycamore Hills Apartments in Salem, Indiana, WILLS
POINT owns Wills Point Crossing Apartments in Wills Point, Texas and WOODLAKE
owns Valencia House in Woodlake, California.
Series 4 expects to become a limited partner in Chadron Apartments I Limited
Partnership, a Nebraska limited partnership ("CHADRON"). CHADRON owns the
Chadron Apartments in Chadron, Nebraska; EAGLEVILLE owns the Shamrock Estates
Apartments in Eagleville, Missouri; and PAWNEE owns the Countryside Manor
Apartments in Pawnee, Illinois.
The following tables contain information concerning the Local Limited
Partnerships identified above.
<PAGE>
<TABLE>
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Local Project Name Estimated Estimated Number of Basic Monthly Permanent Local Limited
Limited Construction Development Apartment Rents Mortgage Loan Partnership's
Partnership Completion Cost With Land Units Amount Anticipated
Tax Credits (1)
====================================================================================================================================
Chadron Chadron November $1,016,432 4 2BR units $285 $400,000 $894,940
Apartments 1996 12 3BR units $385 FNBO (2) (federal)
8 buildings
- ------------------------------------------------------------------------------------------------------------------------------------
Colonial- Colonial May 1995 $6,184,639 28 2BR units $458-555 $2,145,000 $4,467,790
Auburn Village 28 3BR units $528-640 Home (federal)
Auburn Savings (2)
Apartments $1,489,263
(California)
- ------------------------------------------------------------------------------------------------------------------------------------
Eagleville Shamrock March $429,860 10 1BR units $191 $358,000 $150,280
Estates 1996 6 2BR units $250 RECDS (5) (federal)
Apartments
(3)
- ------------------------------------------------------------------------------------------------------------------------------------
Maharlika Filipino October $3,162,402 69 1BR units $267 $436,000 $1,958,000
Community 1995 Home (federal)
Building Savings (6)
(3) $946,961
$451,800 (California
HOME (7)
$107,200
CDBG (7)
$603,200
RDA (7)
- ------------------------------------------------------------------------------------------------------------------------------------
Pawnee Countryside June 1996 $773,261 10 1BR units $275 $615,264 $253,520
Manor 10 2BR units $304 RECDS (5) (federal)
Apartments
(3)
- ------------------------------------------------------------------------------------------------------------------------------------
Rancheria Rancheria October $1,886,829 8 2BR units $463-565 $400,000 $1,334,550
Gardens 1995 5 3BR units $526-644 Santa (federal)
Apartments 1 4BR unit $716 Barbara Bank
& Trust (8) $462,852
(California)
$570,940
Santa
Barbara City
RDA (9)
- ------------------------------------------------------------------------------------------------------------------------------------
Sycamore Sycamore August $840,000 22 1BR units $236 $814,800 $346,000
Hills 1994 2 2BR units $262 RECDS(5) (federal)
Apartments
- ------------------------------------------------------------------------------------------------------------------------------------
Woodlake Valencia House February 1996 $3,084,533 47 1BR units $202 $176,121 $2,226,740
$266 CCRC (10) (federal)
$290 $1,000,000
HOME (11) $1,136,985
(California)
- ------------------------------------------------------------------------------------------------------------------------------------
Wills Wills Point September $1,021,000 8 1BR units $240 $990,370 $447,050
Point Crossing 1995 RECDS(5) (federal)
Apartments 28 2BR units $275
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
(1) Federal Low Income Housing Credits are available over a 10-year period. For
the year in which the credit first becomes available with respect to an
Apartment Complex, Series 4 will receive only that percentage of the annual
credit which corresponds to the number of months during which Series 4 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,
incorporated herein by reference.
California Low Income Housing Credits are available over a four-year period. The
full amount of the first-year California Low Income Housing Credit can be
claimed in the year in which the low-income units are occupied, regardless of
the month of occupancy. Notwithstanding, the amount of the California Low Income
Housing Credits which can be allocated to Series 4 by a Local Limited
Partnership in the first year must be pro-rated if Series 4 is not a limited
partner of the Local Limited Partnership owning the Apartment Complex at the
time it is first placed in service. See the discussion under "Low Income Housing
Credits - California Low Income Housing Credits" in the Prospectus.
(2) First National Bank of Omaha ("FNBO") will provide the mortgage loan for a
term of 12 years at a variable interest rate. The interest rate will be adjusted
every 36 months to an annual rate of 225 basis points over the three-year
Treasury Constant Maturities rate. The note will have a minimum rate of 8.5% and
a maximum rate of 12.5%. Principal and interest will be payable monthly based on
a 25-year amortization schedule.
(3) Maharlika is senior citizen housing. Eagleville and Pawnee are
rehabilitation properties.
(4) Home Savings of America will provide the mortgage loan at a fixed interest
rate equal to the rate established by the 11th District Federal Home Loan Bank
plus 1.5% per annum. The loan will be for a 15-year term, with principal and
interest payable monthly based on a 30-year amortization schedule. The then
outstanding principal amount will be due at maturity.
(5) RECDS (formally the Farmers Home Administration) of the United States
Department of Agriculture provides mortgage loans under the FmHA Section 515
Mortgage Loan Program. The mortgage loan is a 50-year loan and bears annual
interest at a market rate prior to reduction of the interest rate by a mortgage
interest subsidy to an annual rate of 1%, with principal and interest payable
monthly based on a 50-year amortization schedule.
(6) Home Savings of America will provide the first mortgage loan at a variable
interest rate equal to the rate established by the 11th District Federal Home
Loan Bank plus 2.5% per annum. The loan will be for a 15-year term, with
principal and interest payable monthly based on a 30-year amortization schedule.
The then outstanding principal amount will be due at maturity.
(7) HOME will provide the second mortgage loan at a fixed interest rate of 7.5%
per annum for a term and amortization period of 40 years, Community Development
Block Grant program ("CDBG") will provide the third mortgage loan at a fixed
interest rate of 3% per annum for a term and amortization period of 47 years,
and Stockton Redevelopment Agency ("RDA") will provide the fourth mortgage loan
at a fixed interest rate of 3% per annum for a term and amortization period of
45 years. Prior to maturity the loans will be paid annually, but only to the
extent cash from operations of the Apartment Complex is available therefor after
payment of operating expenses, debt service on the first mortgage and an amount
equal to $15,000. The unpaid balances will be due on the respective maturity
dates of the loans.
(8) Santa Barbara Bank & Trust will provide the mortgage loan at an interest
rate determined as follows: years 1-15, a rate equal to the 20-year Treasury
Bond rate plus 2.875% per annum; years 16-30, a rate equal to the 5-year
Treasury Bond rate plus 2.5% per annum. Adjustments to the interest rate will be
made in years 16, 21 and 26. The term of the loan will be 30 years, with
principal and interest payable monthly based on a 30-year amortization period.
(9) Santa Barbara City Redevelopment Agency ("RDA") will provide the second
mortgage loan at a fixed interest rate of 4.5% per annum, with $5,000 to be paid
per year, and the balance to be accrued until maturity. The term of the loan and
the amortization period will be 30 years.
<PAGE>
(10) California Community Reinvestment Corporation will provide a mortgage loan
for a term of 30 ears at an annual interest rate of 9%, with principal and
interest payable monthly based on a 30-year amortization schedule.
(11) HOME will provide a mortgage loan for a term of 40 years at an annual
interest rate equal to the applicable Federal rate, with principal and interest
payable monthly based on a 40-year amortization schedule.
Chadron (CHADRON): Chadron (population 5,600) is the county seat of Dawes
County, and is in northwestern Nebraska at the intersection of U.S. Highways 385
and 20. Basic economic activities of Chadron, a county seat and college town,
include retail and wholesale sales, farming, ranching, cattle feeding,
transportation and tourism. The major employers for Chadron residents are
Chadron State College, Chadron Community Hospital and Chadron city schools
Auburn (COLONIAL-AUBURN): Auburn, the county seat of Placer County, is located
at the intersection of Interstate Highway 80 and State Highway 49, approximately
30 miles northeast of Sacramento. The population of Auburn is approximately
10,500. The largest employment sector for Placer County residents is in the
services industry (primarily health services and hotel and lodging services).
Retail trade is the second largest employment sector. Some of the largest
manufacturing employers for Auburn residents are Coherent (optic and laser
systems), American Forest Products (lumber), and R&W Products (industrial
ceramics).
Eagleville (EAGLEVILLE): Eagleville (population 275) is in Harrison County, in
northeastern Missouri, at the intersection of Interstate Highway 35 and County
Highway N, approximately 14 miles north of Bethany. The major employers for
residents of Eagleville are Premium Standard Farm and Continental Grain.
Pawnee (PAWNEE): Pawnee (population 2,400) is in Sangamon County, in
west-central Illinois, on Interstate Highway 55. Springfield is located
approximately 15 miles north of Pawnee. The major employers for Pawnee residents
are Central Illinois Power and the state government.
Stockton (MAHARLIKA): Stockton, the county seat of San Joaquin County, is
located approximately 80 miles east of San Francisco and 40 miles south of
Sacramento. In 1990, the population of Stockton was approximately 195,000.
Historically, the economy of Stockton has been based in agricultural production
and processing. In recent years the economic base has broadened to include
electronics and construction materials production. Stockton is also becoming a
major distribution center.
Santa Barbara (RANCHERIA): Santa Barbara, the county seat of Santa Barbara
County, is located on U.S. Highway 101 on the Pacific coast, 90 miles northwest
of Los Angeles. The population of Santa Barbara is approximately 370,000. The
economy of Santa Barbara is based primarily in tourism. The city's largest
employers are the University of California at Santa Barbara, Santa Barbara
County government, and Carter's Hospital.
Salem (SYCAMORE): Salem, the county seat of Washington County, Indiana, is
located approximately 100 miles south of Indianapolis in the southern portion of
Indiana at the intersection of State Highways 56, 60, 135, and 160. The
population of Salem is approximately 5,600. The largest categories of employment
in Washington County are manufacturing and wholesale and retail trade. The major
employers in the Salem area are Smith Cabinet & Child Craft (juvenile
furniture), ICM/Krebsoge (powder metal products), and Kimball International
(office furniture).
Woodlake (WOODLAKE): Woodlake, Tulare County, California is located at the
intersection of State Highways 245 and 216, approximately six miles northwest of
Cisalia and approximately 50 miles southeast of Fresno. The population of
Woodlake is approximately 6,300. The major employers for Woodlake residents are
Dryvip Systems (stucco manufacturer), Fruit Growers (agricultural chemicals
manufacturer), and Golden State Packers (fruit packers).
Wills Point (WILLS POINT): Wills Point (population 3,000) is located in Van
Zandt County, in the northeast section of Texas, approximately 50 miles east of
Dallas, at the intersection of U.S. Highway 80 and State Highway 64. Canton, the
county seat, is located 13 miles southeast of Wills Point. The largest employers
for Wills Point residents are the school district and Cushie Manufacturing
(diapers).
<PAGE>
<TABLE>
================================================================================================================================
<CAPTION>
Sharing Ratio:
--------------
<S> <C> <C> <C> <C> <C>
Allocations
Local Local and Sale or Series 4's
Limited General Property Refinancing Capital
Partnership Partners Manager (1) Cash Flow (2) Proceeds Contributions (3)
================================================================================================================================
Chadron Retro Development Inc. Retro Management Series 4: first 99/1 (4) $483,000
Group, Inc. $2,500 25/75 (5)
Most Worshipful Prince LGP: next $2,500
Hall Grand Lodge The balance:
Series 4: 25%
LGP: 75%
- --------------------------------------------------------------------------------------------------------------------------------
Colonial- The S. P. Thomas Company FPI Management, 1995-1998: Series 4: 99/1 (4) $3,184,640
Auburn of Northern California, Inc. first $5,000, 51/49 (5)
Inc. balance to LGP;
1999-2002
Project GO, Inc. Series 4: first
$8,500 balance to LGP
Thereafter
Series 4: 75%
LGP: 30%
- --------------------------------------------------------------------------------------------------------------------------------
Eagleville Joseph A. Shepherd Lockwood Realty, Series 4: Greater 99/1 (4) $82,000
Inc. 15% or $300 50/50 (5)
Kenneth M. Vitor LGP: 40%
Balance: 50/50
- --------------------------------------------------------------------------------------------------------------------------------
Maharlika Daniels C. Logue Daniels C. Logue Series 4: 1/3 99/1 (4) $1,524,233
Development and LGP: 2/3 50/50 (5)
Cyrus Youssefi Construction Co.,
Inc.
- --------------------------------------------------------------------------------------------------------------------------------
Pawnee Joseph A. Shepherd Lockwood Realty, Series 4: Greater 99/1 (4) $138,000
Inc. 15% or $300 50/50 (5)
Kenneth M. Vitor LGP: 40%
Balance: 50/50
- --------------------------------------------------------------------------------------------------------------------------------
Rancheria Richard Bialosky Real Estate Series 4: 1/3 99/1 (4) $960,891
Concepts, Inc. LGP: 2/3 50/50 (5)
Detlev Peikert
Community Housing
Assistance Program, Inc.
- --------------------------------------------------------------------------------------------------------------------------------
Sycamore Larry A. Swank Sterling Series 4: 1st $500 99/1 (4) $184,972
Management Ltd., LGP: 2nd $1,500 25/75 (5)
Lance A. Swank Inc. Balance:
Series 4: 99%
LGP: 1%
- --------------------------------------------------------------------------------------------------------------------------------
Woodlake Philip R. Hammond, Jr. The Management Series 4: 1/3 99/1 (4) $1,798,247
Company LGP: 2/3 51/49 (5)
- --------------------------------------------------------------------------------------------------------------------------------
Wills 1600 Capital M-DC Group, Series 4: 1st 99/1 (4) $234,567
Point Company, Inc., dba $815 50/50 (5)
Inc. Alpha LGP: 2nd
Management $1,635
Balance: 99/1
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
(1) The maximum annual management fee payable to the property manager
generally is determined pursuant to lender regulations. The Local
General Partners are authorized to employ either themselves or one of
their Affiliates, or a third party, as a 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.
(2) Reflects the amount of the net cash flow from operations, if any, to be
distributed to Series 4 and the Local General Partners ("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 are
not paid annually, they will accrue and be paid from sale or
refinancing proceeds as an obligation of the Local Limited Partnership.
(3) Series 4 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.
(4) Subject to certain special allocations, reflects the respective
percentage interests of Series 4 and the Local General Partners in
profits, losses and Low Income Housing Credits commencing with entry of
Series 4 as a limited partner.
(5) Reflects the respective percentage interests of Series 4 and the Local
General Partners in any net cash proceeds from sale or refinancing of
the Apartment Complexes, after payment of the mortgage loan and other
Local Limited Partnership obligations, in the order set forth: Chadron:
Series 4's capital contribution, and the Local General Partners' sales
preparation fee. Colonial-Auburn: Series 4's capital contribution, and
the Local General Partners' sales preparation fee. Eagleville: Series
4's capital contribution, and the Local General Partners' sales
preparation fee. Maharlika: Series 4's capital contribution, and the
capital contribution of the Local General Partners. Pawnee: Series 4's
capital contribution, and the Local General Partners' sales preparation
fee. Rancheria: The Local General Partners' sales preparation fee,
Series 4's capital contribution, and the capital contribution of the
Local General Partners. Sycamore: Series 4's capital contribution, and
the Local General Partners' sales preparation fee. Woodlake: Series 4's
capital contribution, and the Local General Partners' sales preparation
fee. Wills Point: : An amount equal to the financial interest of the
Local General Partner, as determined in accordance with RECDS
regulations, Series 4'S capital contribution (less previous
distributions); an amount equal to any operating deficit loan to the
Local General Partner; and the Local General Partner's sales
preparation fee.
As used above, the term "sales preparation fee" means a fee in the amount of 3%
(6% for Rancheria) of sale or refinancing proceeds.
Item 2. Properties
Through its investment in Local Partnerships the Partnership holds interests in
Apartment Complexes. See Item 1 for information pertaining to these Apartment
Complexes.
Item 3. Legal Proceedings
None.
Item 4. Submission of Matters to a Vote of Security Holders
None.
<PAGE>
Item 5. Market for Registrant's Common Equity and Related Stockholder Matters
The Units are not traded on a public exchange but are being sold through a
public offering. It is not anticipated that any public market will develop for
the purchase and sale of any Unit. Units can be assigned only if certain
requirements in the Partnership Agreement are satisfied.
At December 31, 1996, there were 429 Limited Partner in Series 4. The
Partnership was not designed to provide cash distributions to Limited Partners
in circumstances other than refinancing or disposition of its investments in
Local Limited Partnerships. The Limited Partners invested in the Series 4 for
the full years of 1996 and 1995 received Low Income Housing Credits per Unit as
follows:
1996 1995
------ ------
Federal $64 $12
California 70 70
------ ------
$134 $82
==== ===
ITEM 6. SELECTED FINANCIAL DATA
<TABLE>
<CAPTION>
For the Period July 26,
1994(Date Operations
For Year Ended For Year Ended Commenced) to
December 31, 1996 December 31, 1995 December 31,1994
----------------- ----------------- ----------------
<S> <C> <C> <C>
Revenues $ 147,254 $ 160,888 $ 1,613
Partnership operating
expenses (76,353) (137,234) (13,399)
Equity in income (loss) from
limited partnerships (528,288) (100,224) 2,212
------- ------- -----
Net loss $ (457,387) $ (76,570) $ (9,574)
======== ======= ======
Net loss per weighted
limited partner units $ (39) $ (9) $ (11)
== = ==
Total assets $ 11,216,917 $ 12,347,056 $ 5,198,745
========== ========== =========
Investments in
limited partnerships $ 8,467,424 $ 8,494,018 $ 3,355,553
========= ========= =========
Payable to
limited partnerships $ 1,929,597 $ 2,785,857 $ 584,640
========= ========= =======
Accrued fees and expenses due to
affiliates $ 43,755 $ 102,526 $ 1,700,543
====== ======= =========
</TABLE>
Series 4 was organized on February 16, 1994 and had only minimal activity until
December 19, 1994, the date the Partnership's minimum offering requirement was
satisfied. Series 4's Offering of Limited Partnership Interests commenced on
July 26, 1994. Due to these factors and the nature of Series 4's business (i.e.,
raising capital and acquiring Local Limited Partnership Interests over the first
several years of its term), the data provided above will not be directly
comparable from year to year. See "Management's Discussion and Analysis of
Financial Condition and Results of Operations."
<PAGE>
Item 7. Management's Discussion and Analysis of Financial Condition and Results
of Operation
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 $1,212,000 for the year ended December
31, 1996. This decrease in cash consists of cash (used in) and provided by the
Partnership's operating activities, investing activities and financing
activities of approximately $95,766, $(1,369,907) and $61,683, respectively.
Cash used by investing activities consisted primarily of capital contributions
to Local Partnerships of approximately $1,341,000. Cash provided from financing
activities consisted of collection of notes receivable of $172,500 and offering
costs of $70,000, cash used in investing activities consisted of payments to
affiliates or general partner. Cash provided by operating activities consisted
primarily of collection of receivables from affiliates. Cash used by operating
activities consisted primarily of payments for 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 $3,342,000 and $485,000
for the years ended December 31, 1995 and 1994, respectively. This increase in
cash was provided by Series 4's financing activities, including the proceeds
from its Offering and, for 1994, the short term indebtedness described below.
Cash from financing activities for the period ended December 31, 1995 and 1994
of approximately $5,295,000 and $4,201,000, respectively was sufficient to fund
the investing activities of Series 4 (i.e., capital contributions and loans to
Local Limited Partnerships) of approximately $1,979,000 and $3,718,000,
respectively. Cash provided by and used in the operating activities of Series 4
was minimal compared to its other activities. Cash provided consisted primarily
of interest received on cash deposits and Limited Partner Promissory Notes, and
cash used consisted primarily of payment for operating fees and expenses. The
major components of all these activities are discussed in greater detail below.
As of December 31, 1996, the Partnership is indebted to an affiliate of the
General Partner in the amount of approximately $44,000. The component items of
such indebtedness are as follows: accrued management fees, and acquisition fees,
and advances made for acquisition costs, organizational, offering and selling
costs of $18,000, $24,000 and $2,000, respectively.
As of March 31, 1997 and December 31, 1996, the Partnership has received
approximately $11,099,000 from the sale of the Units and approximately
$9,135,000 (82%) of which has been committed to the purchase price and
acquisition fees and costs of investments in 18 local Limited Partnership
Interests.
The Partnership had made capital contributions to Local Limited Partnerships in
the amount of approximately $6,443,000 and $7,260,000 as of December 31, 1996
and March 31, 1997, respectively.
Prior to sale of the Apartment Complexes, it is not expected that any of the
Local Limited Partnerships in which the Partnership has invested or will invest
will generate cash sufficient to provide distributions to The Partnership of any
material amount. Distributions to the Partnership would first by used to meet
operating expenses of the Partnership, including the payment of the Asset
Management Fee to the General Partner. See Item 11 hereof. As a result, it is
not anticipated that the Partnership will provide distributions to the Limited
Partners prior to the same of the Apartment Complexes.
<PAGE>
The Partnership's investments are not 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 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 Limited Partnership
Interests is sufficient to fund the Partnership's operations.
Upon completion of its public offering (August 10, 1995) the Partnership
established working capital reserves of approximately 3% of the Limited
Partners' capital contributions. This amount is anticipated to be sufficient to
satisfy general working capital and administrative expense requirements of the
Partnership including 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 Partnership. Liquidity would,
however, be adversely affected by unanticipated or greater than anticipated
operating costs. The Partnership's 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 Partnership, 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.
As part of its application for government assistance, each Local Limited
Partnership must establish to the satisfaction of the agency providing the
government assistance that the Local Partnership will have sufficient funds to
complete construction or rehabilitation of its apartment complex. None of the
Local Partnerships has any material capital commitments other than the
completion of its Apartment Complex.
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). 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 limited partnerships in question. If such funds are not available,
the Local Limited Partnerships would risk foreclosure on their apartment
complexes if they were unable to renegotiate the terms of their first mortgages
and any other debt secured by the apartment complexes to the extent the capital
requirements of the local limited partnerships relate to such debt.
The Partnership's capital needs and resources are expected to undergo major
changes at least through 1997 as a result of the completion of its offering of
Units and its acquisition of investments. Thereafter, the Partnership's capital
needs and resources are expected to be relatively stable over the holding
periods of the investments.
<PAGE>
Item 8. Financial Statements and Supplementary Data
WNC CALIFORNIA HOUSING TAX CREDITS, IV, L.P., SERIES 4
(A California Limited Partnership)
For The Years Ended December 31, 1996 and 1995 and
For The Period From July 26, 1994 (Date Operations
Commenced) To December 31, 1994
with
INDEPENDENT AUDITORS' REPORT THEREON
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Partners
WNC California Housing Tax Credits IV, L.P., Series 4
We have audited the accompanying balance sheets of WNC California Housing Tax
Credits IV, L.P., Series 4 (a California Limited Partnership) (the
"Partnership") as of December 31, 1996 and 1995, and the related statements of
operations, partners' equity (deficit) and cash flows for the years then ended
and for the period from July 26, 1994 (date operations commenced) to December
31, 1994. These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audits. We did not audit the financial statements of the
limited partnerships in which WNC California Housing Tax Credits IV, L.P.,
Series 4 is a limited partner. These investments, as discussed in Note 2 to the
financial statements, are accounted for by the equity method. The investments in
these limited partnerships represented 75% and 69% of the total assets of WNC
California Housing Tax Credits IV, L.P., Series 4 at December 31, 1996 and 1995,
respectively. Substantially all of the financial statements of the limited
partnerships were audited by other auditors whose reports have been furnished to
us, and our opinion, insofar as it relates to the amounts included for the
limited partnerships, is based solely on the reports of the other auditors.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits and the reports of the other auditors provide a
reasonable basis for our opinion.
In our opinion, based on our audits and the reports of the other auditors, the
financial statements referred to above present fairly, in all material respects,
the financial position of WNC California Housing Tax Credits IV, L.P., Series 4
(a California Limited Partnership) as of December 31, 1996 and 1995, and the
results of its operations and its cash flows for the years then ended and for
the period from July 26, 1994 (date operations commenced) to December 31, 1994,
in conformity with generally accepted accounting principles.
/s/ Corbin & Wertz
_____________________
CORBIN & WERTZ
Irvine, California
May 1, 1997
<PAGE>
WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
(A California Limited Partnership)
BALANCE SHEETS
December 31, 1996 and 1995
ASSETS 1996 1995
---------- ----------
Cash and cash equivalents $ 2,614,756 $ 3,827,214
Receivables from affiliates (Note 3) 121,825 --
Investments in limited partnerships (Note 2) 8,467,424 8,494,018
Other assets 12,912 25,824
---------- ----------
$ 11,216,917 $ 12,347,056
========== ==========
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
Liabilities:
Payable to limited partnerships (Note 4) $ 1,929,597 $ 2,785,857
Accrued fees and advances due to
General Partner and affiliate (Note 3) 43,755 102,526
---------- ----------
Total liabilities 1,973,352 2,888,383
---------- ----------
Partners' equity (deficit) (Note 6):
General partner (8,737) (4,861)
Limited partner (25,000 units authorized,
11,500 units issued and outstanding at
December 31, 1996 and 1995) 9,252,302 9,463,534
---------- ----------
Total partners' equity 9,243,565 9,458,673
---------- ----------
$ 11,216,917 $ 12,347,056
========== ==========
See accompanying notes to financial statements
FS-1
<PAGE>
WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
(A California Limited Partnership)
STATEMENTS OF OPERATIONS
For The Years Ended December 31, 1996 and 1995 and
For The Period From July 26, 1994 (Date Operations
Commenced) To December 31, 1994
1996 1995 1994
---------- ---------- ----------
Interest income $ 147,254 $ 160,888 $ 1,613
--------- --------- ---------
Operating expenses:
Amortization 24,865 16,056 --
Partnership management fees (Note 3) 31,625 31,625 --
Interest expense (Note 3) -- 79,853 13,387
Office 19,863 9,700 12
--------- --------- ---------
76,353 137,234 13,399
--------- --------- ---------
Income (loss) from operations 70,901 23,654 (11,786)
Equity in (loss) income of limited
partnerships (Note 2) (528,288) (100,224) 2,212
--------- --------- ---------
Net loss $(457,387) $ (76,570) $ (9,574)
========= ========= =========
Net loss allocable to:
General partner $ (4,574) $ (766) $ (96)
========= ========= =========
Limited partner $(452,813) $ (75,804) $ (9,478)
========= ========= =========
Net loss per weighted limited
partner units $ (39.38) $ (8.68) $ (10.84)
========= ========= =========
Outstanding weighted limited
partner units 11,500 8,735 874
========= ========= =========
See accompanying notes to financial statements
FS-2
<PAGE>
WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
(A California Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
For The Years Ended December 31, 1996 and 1995 and
For The Period From July 26, 1994 (Date Operations
Commenced) To December 31, 1994
General Limited
Partner Partner Total
------- ------- -----
Capital contribution from General
Partner $ 100 $ -- $ 100
Capital contributions -- 2,157,000 2,157,000
Capital issued for notes receivable
(Note 6) -- (145,500) (145,500)
Offering expenses (3,019) (298,833) (301,852)
Net loss (96) (9,478) (9,574)
---------- ---------- ----------
Equity (deficit) December 31, 1994 (3,015) 1,703,189 1,700,174
Capital contributions, net of
discounts -- 8,942,050 8,942,050
Collection of notes receivable
(Note 6) -- 145,500 145,500
Capital issued for notes receivable
(Note 6) -- (172,500) (172,500)
Offering expenses (1,080) (1,078,901) (1,079,981)
Net loss (766) (75,804) (76,570)
---------- ---------- ----------
Equity (deficit) December 31, 1995 (4,861) 9,463,534 9,458,673
Collection of notes receivable
(Note 6) -- 172,500 172,500
Offering expenses 698 69,081 69,779
Net loss (4,574) (452,813) (457,387)
---------- ---------- ----------
Equity (deficit) December 31, 1996 $ (8,737) $ 9,252,302 $ 9,243,565
========== ========== ==========
See accompanying notes to financial statements
FS-3
<PAGE>
WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
(A California Limited Partnership)
<TABLE>
<CAPTION>
STATEMENTS OF CASH FLOWS
For The Years Ended December 31, 1996 and 1995 and
For The Period From July 26, 1994 (Date Operations
Commenced) To December 31, 1994
1996 1995 1994
---------- ---------- ----------
<S> <C> <C> <C>
Cash flows provided by operating activities:
Net loss $ (457,387) $ (76,570) $ (9,574)
Adjustments to reconcile net loss to
net cash provided by operating activities:
Amortization 24,865 16,056 --
Equity in losses of limited partnerships 528,288 100,224 (2,212)
Change in accrued interest payable -- (13,388) 13,388
---------- ---------- ----------
Net cash provided by operating activities 95,766 26,322 1,602
---------- ---------- ----------
Cash flows used in investing activities:
Investments in limited partnerships (1,341,247) (2,501,693) (2,600,000)
Acquisition fees (41,572) (551,835) (17,771)
Loans receivable -- 1,098,608 (1,098,608)
Other assets 12,912 (24,211) (1,613)
---------- ---------- ----------
Net cash used in investing activities (1,369,907) (1,979,131) (3,717,992)
---------- ---------- ----------
Cash flows provided by financing activities:
Payments to affiliates or general partner (180,596) (1,598,017) 1,263,862
Capital contributions -- 9,173,250 1,753,400
Offering costs 69,779 (1,079,981) (16,101)
(Repayments)Proceeds from loan payable -- (1,200,000) 1,200,000
Collection on notes receivable 172,500 -- --
---------- ---------- ----------
Net cash provided by financing activities 61,683 5,295,252 4,201,161
---------- ---------- ----------
Net change in cash (1,212,458) 3,342,443 484,771
Cash and cash equivalents, beginning of
period 3,827,214 484,771 --
---------- ---------- -------
Cash and cash equivalents, end of period $ 2,614,756 $ 3,827,214 $ 484,771
========== ========== ==========
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING
AND INVESTING ACTIVITY:
The Partnership has incurred but not paid -
Capital contributions in connection with
investments in limited partnerships $ 382,865 $ 2,201,217 $ 584,640
========== ========== ==========
Acquisition fees and offering costs
advanced by an affiliate $ -- $ -- $ 436,741
========== ========== ==========
The Partnership has not received -
Subscriptions in connection with
capital contributions $ -- $ 172,500 $ 403,700
========== ========== ==========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid $ -- $ 93,241 $ --
========== ========== =======
Taxes paid $ 800 $ 800 $ --
========== ========== =======
</TABLE>
See accompanying notes to financial statements
FS-4
<PAGE>
WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended December 31, 1996 and 1995 and
For The Period From July 26, 1994 (Date Operations
Commenced) To December 31, 1994
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
- ---------------------------------------------------
Organization
- ------------
WNC California Housing Tax Credits IV, L.P., Series 4 (the "Partnership") was
formed under the California Revised Limited Partnership Act on February 16,
1994, and commenced operations on July 26, 1994. 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 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.
The partnership agreement authorized the sale of up to 25,000 units of limited
partnership interest (Units) at $1,000 per Unit. The offering of Units concluded
in August 1995 at which time 11,500 Units representing subscriptions, net of
discounts of $400,950 for purchases of 100 units or more, in the amount of
$11,099,050 had been accepted. 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.
After the limited partners have received proceeds from a sale or refinancing
equal to their capital contributions and their return on investment (as defined
in the Partnership Agreement) 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.
The Partnership's investments in limited partnerships are subject to the risks
incident to the management and ownership of multifamily residential real estate,
and include the risks that neither the Partnership's investments nor the
apartment complexes owned by the limited partnerships will be readily
marketable. Additionally there can be no assurance that the Partnership will be
able to dispose of its interest in the limited partnerships. The value of the
Partnership's investments will be subject to changes in national and local
economic conditions, including unemployment conditions, which could adversely
impact vacancy levels, rental payment defaults and operating expenses. This, in
turn, could substantially increase the risk of operating losses for the
apartment complexes and the Partnership. The apartment complexes could be
subject to loss through foreclosure. In addition, each limited partnership is
subject to risks relating to environmental hazards which might be uninsurable.
Because the Partnership's ability to control its operations will depend on these
and other factors beyond the control of the General Partner and the general
partners of the limited partnerships, there can be no assurance that Partnership
operations will be profitable or that the anticipated housing tax credits will
be available to limited partners.
Continued
FS-5
<PAGE>
WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
For The Years Ended December 31, 1996 and 1995 and
For The Period From July 26, 1994 (Date Operations
Commenced) To December 31, 1994
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
- --------------------------------------------------------------
Method of Accounting For Investment in Limited Partnership
- ----------------------------------------------------------
The Partnership accounts for its investment in limited partnership using the
equity method of accounting, whereby the Partnership adjusts its investment
balance for its share of the limited partnership's results of operations and for
any distributions received. Costs incurred by the Partnership in acquiring the
investment in limited partnership are capitalized as part of the investment and
amortized over 30 years (see Note 3).
Losses from limited partnership allocated to the Partnership will not be
recognized to the extent that the investment balance would be adjusted below
zero.
Cash and Cash Equivalents
- -------------------------
The Partnership considers all investments with remaining maturities of three
months or less when purchased to be cash equivalents. The Partnership had
$1,835,700 and $3,368,212 of cash equivalents at December 31, 1996 and 1995,
respectively.
Concentration of Credit Risk
- ----------------------------
As of December 31, 1996, the Partnership maintained cash balances at certain
financial institutions in excess of amounts insured by Federal agencies.
Offering Expenses
- -----------------
Offering expenses consist of underwriting commissions, legal fees, printing,
filing and recordation fees, and other costs incurred in connection with the
selling of 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 limited partners' capital. As of December 31,
1996, the Partnership had incurred offering and selling expenses of $757,584 and
$554,470, respectively (see Note 3). No organizational expenses have been
incurred to date.
Use of Estimates
- ----------------
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements, and
the reported amounts of revenues and expenses during the reporting period.
Actual results could materially differ from those estimates.
Net Loss Per Limited Partner Units
- ----------------------------------
Net loss per limited partner unit is computed by dividing the limited partners'
share of net loss by the weighted number of limited partner units outstanding
during the period.
Continued
FS-6
<PAGE>
WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
For The Years Ended December 31, 1996 and 1995 and
For The Period From July 26, 1994 (Date Operations
Commenced) To December 31, 1994
NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS
- --------------------------------------------
At December 31, 1996, the Partnership had acquired limited partnership interests
in nine limited partnerships which own and operate apartment complexes
consisting of 298 apartment units. The accounting policies of the limited
partnerships are consistent with the Partnership. The Partnership, as a limited
partner, is generally entitled to 99% of the operating profits and losses of the
limited partnership.
The Partnership's investment in the limited partnership as shown in the
accompanying balance sheet as of December 31, 1996 and 1995, is approximately
$2,388,000 and $3,410,000, respectively, greater than the Partnership's equity
as shown in the limited partnership's financial statements. This difference is
due to acquisition and selection costs related to the acquisition of the
investments that have been capitalized in the Partnership's investment account
and will be amortized over 30 years and capital contributions accrued but not
paid (Note 3).
Following is a summary of the equity method activity of the investments in
limited partnerships for the years ended December 31:
1996 1995
---------- ----------
Investments, beginning of year $ 8,494,018 $ 3,355,553
Total capital contributions made to and
accrued with respect to limited partnerships 484,987 4,702,910
Capitalized acquisition fees and costs
(see Note 3) 41,572 551,835
Amortization of acquisition fees and costs (24,865) (16,056)
Equity in losses of limited partnerships (528,288) (100,224)
---------- ----------
Investments, end of year $ 8,467,424 $ 8,494,018
========== ==========
Continued
FS-7
<PAGE>
WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
For The Years Ended December 31, 1996 and 1995 and
For The Period From July 26, 1994 (Date Operations
Commenced) To December 31, 1994
NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued
- -------------------------------------------------------
Approximate combined condensed financial information from the individual
financial statements of the limited partnerships as of December 31, 1996 and
1995, and for the years then ended and the for the period ended December 31,
1994 is as follows:
COMBINED CONDENSED BALANCE SHEETS
---------------------------------
ASSETS 1996 1995
---------- ----------
Buildings and improvements, net of
accumulated depreciation of $605,000
and $142,000 for 1996 and 1995 $15,138,000 $ 9,880,000
Land 911,000 800,000
Construction in progress 37,000 1,141,000
Other assets 808,000 1,100,000
---------- ----------
$16,894,000 $12,921,000
========== ==========
LIABILITIES AND PARTNERS' EQUITY
Liabilities -
Construction loan payable $ 8,286,000 $ 5,045,000
Other liabilities (including
payables to affiliates of
$1,288,000 and $1,060,000 for
1996 and 1995, respectively) 2,491,000 2,760,000
---------- ----------
Total liabilities 10,777,000 7,805,000
---------- ----------
Partners' equity:
WNC California Housing Tax Credits
IV, L.P., Series 4 6,079,000 5,084,000
Other partners 38,000 32,000
---------- ----------
Total partners' equity 6,117,000 5,116,000
---------- ----------
$16,894,000 $12,921,000
========== ==========
COMBINED CONDENSED STATEMENTS OF OPERATIONS
-------------------------------------------
1996 1995 1994
---------- ---------- ----------
Total revenues $ 842,000 $ 217,000 $ 2,000
---------- ---------- ----------
Expenses:
Operating expenses 521,000 104,000 --
Interest expense 392,000 72,000 --
Depreciation and amortization 463,000 142,000 --
---------- ---------- -------
Total expenses 1,376,000 318,000 --
---------- ---------- -------
Net loss $ (534,000) $ (101,000) $ 2,000
========== ========== ==========
Net loss allocable to the
Partnership $ (528,000) $ (100,000) $ 2,000
========== ========== ==========
Continued
FS-8
<PAGE>
WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
For The Years Ended December 31, 1996 and 1995 and
For The Period From July 26, 1994 (Date Operations
Commenced) To December 31, 1994
NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued
- -------------------------------------------------------
Certain limited partnerships have incurred operating losses and have working
capital deficiencies. In the event these limited partnerships continue to incur
operating losses, additional capital contributions by the Partnership may be
required to sustain the operations of such limited partnerships. If additional
capital contributions are not made when they are required, the Partnership's
investment in certain of such limited partnerships could be impaired.
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. In
connection with such allocation, offering expenses were reduced by $69,779
during the year ended December 31, 1996.
Under the terms of the Partnership Agreement, the Partnership is
obligated to the General Partner or its affiliates for the following
items:
Acquisition fees of 7% of the gross proceeds from the sale of
Partnership units as compensation for services rendered in connection
with the acquisition of limited partnerships. As of December 31, 1996
and 1995, acquisition fees of $654,580 and $640,930, respectively,
have been incurred and included in limited partnership investment.
Accumulated amortization amounted to $35,499 and $13,792 as of
December 31, 1996 and 1995, respectively. No amortization was recorded
during 1994.
Reimbursement of costs incurred by an affiliate of the General Partner
in connection with the acquisition of limited partnerships. These
reimbursements will not exceed 1.0% of the gross proceeds. As of
December 31, 1996 and 1995, the Partnership has incurred acquisition
costs of $107,538 and $79,606, respectively, which have been included
in limited partnership investment. Accumulated amortization was $5,423
for 1996 and was insignificant for 1995. No amortization was recorded
during 1994.
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 plus its
allocable percentage of the mortgage debt encumbering the apartment complexes)
of the limited partnerships. Management fees of $31,625 were incurred for 1996
and 1995. No management fees were incurred for the period ended December 31,
1994. Management fees of $45,000 were paid during 1996. No amounts were paid
during 1995 and 1994.
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
Partnership Agreement) and is payable only if services are rendered in
the sales effort.
Continued
FS-9
<PAGE>
WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
For The Years Ended December 31, 1996 and 1995 and
For The Period From July 26, 1994 (Date Operations
Commenced) To December 31, 1994
NOTE 3 - RELATED PARTY TRANSACTIONS, continued
- ----------------------------------------------
Accrued fees and advances due the General Partner and affiliate are summarized
as follows:
1996 1995
---------- ----------
Acquisition fees $ 23,993 $ 14,321
Advances made for acquisition costs,
organizational, offering and selling
expenses 1,512 56,580
Asset management fees 18,250 31,625
---------- ----------
$ 43,755 $102,526
========== ==========
Amounts advanced to acquire limited partnerships bore interest at the rate
incurred by the affiliate on its line of credit which has ranged from 9.75% to
10.5% per annum. Interest incurred on these advances during the period ended
December 31, 1995 amounted to $38,174.
NOTE 4 - PAYABLE TO LIMITED PARTNERSHIPS
- ----------------------------------------
Payable to limited partnerships represents amounts which are due at various
times based on conditions specified in the limited partnership agreements. These
contributions are non-interest bearing, are payable in installments and are due
upon the limited partnership achieving certain operating and development
benchmarks (generally within two years of the Partnership's initial investment).
NOTE 5 - INCOME TAXES
- ---------------------
No provision for income taxes has been recorded in the accompanying financial
statements since all items of taxable income and loss will be allocated to the
partners for inclusion in their respective income tax returns.
NOTE 6 - SUBSCRIPTIONS AND INVESTOR NOTES RECEIVABLE
- ----------------------------------------------------
At December 31, 1995, the Partnership had accepted $172,500 in promissory notes
from limited partners. During 1995, limited partners who subscribed for ten or
more units of limited partnership interest ($10,000) could elect to pay 50% of
the purchase price in cash upon subscription and the remaining 50% by the
delivery of a promissory note payable, together with interest at the rate of 8%
per annum, due no later than 13 months after the subscription date. Since the
promissory notes had not been collected as of the date of issuance of the
financial statements, their aggregate unpaid balance was reflected as a
reduction of partners' equity in the accompanying financial statements. The
promissory notes accepted during 1995 amounting to $172,500 and were collected
during 1996; notes accepted during 1994 amounting to $145,500 were collected
during 1995.
FS-10
<PAGE>
Item 9. Changes in and Disagreements With Accountants on Accounting and
Financial Disclosure
None.
Item 10. Directors and Executive Officers of the Registrant
Directors of Registrant
The Partnership has no directors or executive officers of its own. The following
biographical information is presented for the directors and executive officers
of Associates which has principal responsibility for the Partnership's affairs.
Directors and Executive Officers of WNC & Associates, Inc.
WILFRED N. COOPER, SR., age 65, has been the principal shareholder and a
Director of WNC & ASSOCIATES, INC. since its organization in 1971, of SHELTER
RESOURCE CORPORATION since its organization in 1981 and of WNC RESOURCES, INC.
from its organization in 1988 through its acquisition by WNC & ASSOCIATES, INC.
in 1991, serving as President of those companies until 1992 and as Chief
Executive Officer since 1992, and has been a Director of WNC CAPITAL CORPORATION
since its organization. He is also a general partner with WNC & ASSOCIATES, INC.
in WNC FINANCIAL GROUP, L.P. and WNC TAX CREDIT PARTNERS, L.P. During 1970 and
1971 he was a principal of Creative Equity Development Corporation, a
predecessor of WNC & ASSOCIATES, INC., and of Creative Equity Corporation, a
real estate investment firm. For 12 years prior to that, Mr. Cooper was employed
by Rockwell International Corporation, last serving as its manager of housing
and urban developments. Previously, he had responsibility for new business
development including factory-built housing evaluation and project management in
urban planning and development. Mr. Cooper is a Director and a member of the
Executive Committee of the National Association of Home Builders (NAHB) and a
Chairman of the NAHB's Rural Housing Council, a Director of the National Housing
Conference, a Director of the Affordable Housing Tax Credit Coalition, a past
President of the Rural Builders Council of California (RBCC) and a past
President of Southern California Chapter II of the Real Estate Syndication and
Securities Institute (RESSI) of the National Association of Realtors (NAR). Mr.
Cooper graduated from Pomona College in 1956 with a Bachelor of Arts degree.
JOHN B. LESTER, JR., age 62, has been a shareholder, a Director and Secretary of
WNC & ASSOCIATES, INC. since 1986, Executive Vice President from 1986 to 1992,
and President and Chief Operating Officer since 1992, and has been a Director of
WNC CAPITAL CORPORATION since its organization. He was a shareholder, Executive
Vice President, Secretary and a Director of WNC RESOURCES, INC. from 1988
through its acquisition by WNC & ASSOCIATES, INC. in 1991. From 1973 to 1986 he
was Chairman of the Board and Vice President or President of E & L Associates,
Inc., a provider of engineering and construction services to the oil refinery
and petrochemical industries which he co-founded in 1973. Mr. Lester is a former
Director of the Los Angeles Chapter of the Associated General Contractors of
California. His responsibilities at WNC & ASSOCIATES, INC. include property
acquisitions and company operations. Mr. Lester graduated from the University of
Southern California in 1956 with a Bachelor of Science degree in Mechanical
Engineering.
<PAGE>
DAVID N. SHAFER, age 44, has been a Senior Vice President of WNC & ASSOCIATES,
INC. since 1992 and General Counsel since 1990, and served as Asset Management
Director from 1990 to 1992. Previously he was employed as an associate attorney
by the law firms of Morinello, Barone, Holden & Nardulli from 1987 until 1990,
Frye, Brandt & Lyster from 1986 to 1987 and Simon and Sheridan from 1984 to
1986. Mr. Shafer is a Director and President of RBCC, a member of NAHB's Rural
Housing Council, a past President of Southern California Chapter II of RESSI, a
past Director of the Council of Affordable and Rural Housing and Development and
a member of the State Bar of California. Mr. Shafer graduated from the
University of California at Santa Barbara in 1978 with a Bachelor of Arts
degree, from the New England School of Law in 1983 with a Juris Doctor degree
and from the University of San Diego in 1986 with a Master of Law degree in
Taxation.
WILFRED N. COOPER, JR., age 33, has been employed by WNC & ASSOCIATES, INC.
since 1988 and has been a Senior Vice President or Vice President since 1992.
Mr. Cooper heads the Acquisition Origination department at WNC and has been
President of and a registered principal with WNC CAPITAL CORPORATION, a member
firm of the NASD, since its organization. Previously, he was employed as a
government affairs assistant by Honda North America from 1987 to 1988, and as a
legal assistant with respect to Federal legislative and regulatory matters by
the law firm of Schwartz, Woods and Miller from 1986 to 1987. Mr. Cooper is a
member of NAHB's Rural Housing Council and serves as Chairman of its Membership
Committee. Mr. Cooper graduated from The American University in 1985 with a
Bachelor of Arts degree.
THEODORE M. PAUL, age 40, has been Vice President - Finance of WNC & ASSOCIATES,
INC. since 1992 and Chief Financial Officer since 1990. Previously, he was a
Vice President and Chief Financial Officer of National Partnership Investments
Corp., a sponsor and general partner of syndicated partnerships investing in
affordable rental housing qualified for tax credits, from 1986 until 1990, and
was employed as an associate by the accounting firms of Laventhol & Horwath,
during 1985, and Mann & Pollack Accountants, from 1979 to 1984. Mr. Paul is a
member of the California Society of Certified Public Accountants and the
American Institute of Certified Public Accountants. His responsibilities at WNC
& ASSOCIATES, INC. include supervision of investor partnership accounting and
tax reporting matters and monitoring the financial condition of the Local
Limited Partnerships in which the Partnership will invest. Mr. Paul graduated
from the University of Illinois in 1978 with a Bachelor of Science degree and is
a Certified Public Accountant in the State of California.
THOMAS J. RIHA, age 41, has been Vice President - Asset Management of WNC &
ASSOCIATES, INC. since 1994. He has more than 17 years' experience in commercial
and multi-family real estate investment and management. Previously, Mr. Riha was
employed by Trust Realty Advisor, a real estate acquisition and management
company, from 1988 to 1994, last serving as Vice President - Operations. His
responsibilities at WNC & ASSOCIATES, INC. include monitoring the operations and
financial performance of, and regulatory compliance by, properties in the WNC
portfolio. Mr. Riha graduated from the California State University, Fullerton in
1977 with a Bachelor of Arts degree (cum laude) in Business Administration with
a concentration in Accounting and is a Certified Public Accountant in the State
of California and a member of the California Society of Certified Public
Accountants and the American Institute of Certified Public Accountants.
<PAGE>
SY GARBAN, age 50, has 19 years' experience in the real estate securities and
syndication industry. He has been associated with WNC & ASSOCIATES, INC., since
1989, serving as National Sales Director through 1992 and as Vice President -
National Sales since 1992. Previously, he was employed by MRW, Inc., Newport
Beach, California from 1980 to 1989, a real estate acquisition, development and
management firm. Mr. Garban is a member of the International Association of
Financial Planners. Mr. Garban graduated from Michigan State University in 1967
with a Bachelor of Science degree in Business Administration.
CARL FARRINGTON, age 50, has been associated with WNC & ASSOCIATES, INC. since
1993, currently serving as Director - Originations since 1994. Mr. Farrington
has more than 12 years' experience in finance and real estate acquisitions.
Previously, he served as Acquisitions Director for The Arcand Company from 1991
to 1993, and as Treasurer and Director of Finance and Administrator for Polytron
Corporation from 1988 to 1991. Mr. Farrington is a member and Director of the
Council of Affordable and Rural Housing and Development. Mr. Farrington
graduated from Yale University with a Bachelor of Arts degree in 1966 and from
Dartmouth College with a Master of Business Administration in 1970.
MICHELE M. TAYLOR, age 41, has been employed by WNC & ASSOCIATES, INC. since
1986, serving as a paralegal and office manager, and currently is the Investor
Services Director. Previously she was self-employed between 1982 and 1985 in
non-financial services activities and from 1978 to 1981 she was employed as a
paralegal by a law firm which specialized in real estate limited partnership
transactions. Ms. Taylor graduated from the University of California, Irvine in
1976 with a Bachelor of Arts degree.
THERESA I. CHAMPANY, age 38, has been employed by WNC & ASSOCIATES, INC., since
1989 and currently is the Marketing Services Director and a registered principal
with WNC CAPITAL CORPORATION. Previously, she was employed as Manager of
Marketing Services by August Financial Corporation from 1986 to 1989 and as
office manager and Assistant to the Vice President of Real Estate Syndications
by McCombs Securities Co., Inc. from 1979 to 1986. Ms. Champany attended
Manchester (Conn.) Community College from 1976 to 1978.
KAY L. COOPER, age 59, has been an officer and Director of WNC & ASSOCIATES,
INC. since 1971 and of WNC RESOURCES, INC. from 1988 through its acquisition by
WNC & ASSOCIATES, INC. in 1991. Mrs. Cooper has also been the sole proprietor of
Agate 108, a manufacturer and retailer of home accessory products, since 1975.
She is the wife of Wilfred N. Cooper, Sr., the mother of Wilfred N. Cooper, Jr.
and the sister of John B. Lester, Jr. Mrs. Cooper graduated from the University
of Southern California in 1958 with a Bachelor of Science degree.
<PAGE>
Item 11. Executive Compensation
The Partnership has no officers, employees, or directors. However, under the
terms of the Partnership Agreement the Partnership is obligated to the General
Partner or Associates for the following fees:
(a) Acquisition fees in an amount equal to 7% of the gross proceeds of the
Partnership's offering ("Gross Proceeds") allocable to each of the Local
Partnerships. Through December 31, 1996, acquisition fees of $654,000 have been
incurred.
(b) An annual asset management fee in an amount equal to 0.5% of invested assets
(the sum of the Partnership's Investment in Local Limited Partnership Interests
and the Partnership's allocable share of the amount of the mortgage loans on and
other debts related to, the Apartment Complexes owned by such Local Limited
Partnerships.). Fees of $31,625, $31,625, and $0 were incurred for 1996, 1995,
and 1994 respectively.
c) A subordinated disposition fee in an amount equal to 1% of the sale price
received in connection with the sale or disposition of an Apartment Complex or
Local Limited Partnership Interest. Subordinated disposition fees will be
subordinated to the prior return of the Limited Partners' capital contributions
and payment of the Return on Investment to the Limited Parners. "Return on
Investment" means an annual, cumulative but not compounded, "return" to the
Limited Partners (including Low Income Housing Credits) as a class on their
adjusted capital contributions commencing for each Limited Partner on the last
day of the calendar quarter during which the Limited Partner's capital
contribution is received by the Partnership, calculated at the following rates:
(i) 14% through December 31, 2005, and (ii) 6% for the balance of the
Partnerships term. No disposition fees have been paid.
(d) The General Partner was allocated federal and California Housing Tax Credits
for 1996 and 1995 as follows:
1996 1995
---- ----
Federal $ 7,476 $ 1,803
California 8,086 6,131
----- ------
$15,562 $ 7,934
======= =======
<PAGE>
Item 12. Security Ownership of Certain Beneficial Owners and Management
(a) Security Ownership of Certain Beneficial Owners
<TABLE>
<S> <C> <C> <C>
Name and Address Amount and
Title of Class of Beneficial Owner Nature of Percent
Beneficial Owner of Class
- ------------------------------------------------------------------------------------------------------------------------
Units of Limited Partnership Enova Financial , Inc. 5,096 units 44.3%
Interests P.O. Box 126943
San Diego, CA 92113-6943
</TABLE>
The above is only person known to own beneficially in excess of 5% of the
outstanding Limited Partnership Interests.
(b) Security Ownership of Management
Neither the General Partner, Associates nor any of the officers or directors of
Associates own directly or beneficially any limited partnership interests in the
Partnership.
(c) Changes in Control
The management and control of the General Partners may be changed at any time in
accordance with their respective organizational documents, without the consent
or approval of the Limited Partners. In addition, the Partnership Agreement
provides for the admission of one or more additional and successor General
Partners in certain circumstances.
First, with the consent of any other General Partners and a majority-in-interest
of the Limited Partners, any General Partner may designate one or more persons
to be successor or additional General Partners. In addition, any General Partner
may, without the consent of any other General Partner or the Limited Partners,
(I) substitute in its stead as General Partner any entity which has, by merger,
consolidation or otherwise, acquired substantially all of its assets, stock or
other evidence of equity interest and continued its business, or (ii) cause to
be admitted to the Partnership an additional General Partner or Partners if it
deems such admission to be necessary or desirable so that the Partnership will
be classified a partnership for Federal income tax purposes. Finally, a
majority-in-interest of the Limited Partners may at anytime remove the General
Partner of the Partnership and elect a successor General Partner
Item 13. Certain Relationships and Related Transactions
All of the Partnership's affairs are managed by the General Partner, through
Associates. The transactions with the General Partner and Associates are
primarily in the form of fees paid by the Partnership for services rendered to
the Partnership, as discussed in Item 11 and in the notes to the accompanying
financial statements.
Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K
Financial Statements:
Report of independent public accountants.
<PAGE>
Balance sheet as of December 31, 1996 and 1995.
Statements of Operations for the years ended December 31, 1996, 1995, and 1994.
Statement of Partners' Equity for the years ended December 31, 1996, 1995, and
1994.
Statements of Cash Flows for the years ended December 31, 1996, 1995, and 1994.
Notes to Financial Statements.
Financial Statement Schedules:
N/A
(3) Articles of incorporation and by-laws: The registrant is not
incorporated. The Partnership Agreement included as Exhibit B to the
Prospectus, and the First Amendment to the Partnership Agreement
included in the Supplement dated April 30, 1996 to Prospectus, each of
which is included in Post-Effective No. 10 to Registration Statement on
Form S-11 dated May 3, 1996 are incorporated herein by reference as
Exhibit 3.
(10) Material contracts:
10.1 Amended and Restated Agreement of Limited Partnership of Colonial Village
Auburn filed as exhibit 10.1 to Form 8-K dated October 28, 1994 is hereby
incorporated herein by reference as exhibit 10.1.
10.2 Amended and Restated Agreement of Limited Partnership of Sycamore Hills,
L.P. filed as exhibit 10.1 to Form 8-K dated January 9, 1995 is hereby
incorporated herein by reference as exhibit 10.2.
10.3 Amended and Restated Agreement of Limited Partnership of Maharlika, a
California Limited Partnership filed as exhibit 10.1 to Form 8-K dated May 31,
1995 is hereby incorporated herein by reference as exhibit 10.3.
10.4 Amended and Restated Agreement of Limited Partnership of Wills Point
Crossing, L.P. filed as exhibit 10.1 to Form 8-K dated July 26, 1995 is hereby
incorporated herein by reference as exhibit 10.4.
10.5 Amended and Restated Agreement of Limited Partnership of Rancheria Village
Apartments, a California Limited Partnership filed as exhibit 10.1 to Form 8-K
dated September 26, 1995 is hereby incorporated herein by reference as exhibit
10.5.
10.6 Amended and Restated Agreement of Limited Partnership of Woodlake Valencia
House, a California Limited Partnership filed as exhibit 10.7 to Form 10-K dated
December 31, 1995 is hereby incorporated herein by reference as exhibit 10.6.
10.7 Amended and Restated Agreement of Limited Partnership of Pawnee Associates
I, L.P. filed as exhibit 10.8 to Form 10-K dated December 31, 1995 is hereby
incorporated herein by reference as exhibit 10.7.
10.8 Amended and Restated Agreement of Limited Partnership of Eagleville
Associates I, L.P. filed as exhibit 10.9 to Form 10-K dated December 31, 1995 is
hereby incorporated herein by reference as exhibit 10.8.
Reports on Form 8-K
No reports on form 8-K were filed during the fourth quarter ended December 31,
1996.
<PAGE>
Pursuant to the requirements of Section 13 or 15(d) 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 California Tax Credit Partners IV, L.P. General Partner of the
Registrant
By: WNC & Associates, Inc. General Partner of WNC California Tax Credit Partners
III, L.P.
By: /s/ John B. Lester, Jr.
_____________________________________________________
John B. Lester, Jr. President and Chief Opertating Officer of WNC & Associates,
Inc.
Date: May 12, 1997
By: /s/ Theodore M. Paul
_____________________________________________________
Theodore M. Paul Vice-President Finance and Chief Financial Officer of WNC &
Associates, Inc.
Date: May 12, 1997
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
By: /s/ Wilfred N. Cooper, Sr.
_____________________________________________________
Wilfred N. Cooper, Sr. Director and Chairman of the Board WNC & Associates, Inc.
Date: May 12, 1997
By: /s/ John B. Lester, Jr.
_____________________________________________________
John B. Lester, Jr. Director and Secretary of the Board WNC & Associates, Inc.
Date: May 12, 1997
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000921052
<NAME> WNC CALIFORNIA HOUSING TAX CREDITS IV LP-SERIES 4
<MULTIPLIER> 1
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<EXCHANGE-RATE> 1
<CASH> 2,614,756
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,614,756
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 11,216,917
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 9,243,565
<TOTAL-LIABILITY-AND-EQUITY> 11,216,917
<SALES> 0
<TOTAL-REVENUES> 147,254
<CGS> 0
<TOTAL-COSTS> 70,901
<OTHER-EXPENSES> 528,288
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (457,387)
<INCOME-TAX> 0
<INCOME-CONTINUING> (457,387)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (457,387)
<EPS-PRIMARY> (39.38)
<EPS-DILUTED> 0
</TABLE>
