FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 1998
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from ________ to ___________
Commission file number: 33-76970
WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., Series 4
State or other jurisdiction of (I.R.S. Employer
incorporation or organization Identification No.)
California 33-0601852
3158 Redhill Avenue, Suite 120
Costa Mesa, CA 92626
(714) 662-5565
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No ____
<PAGE>
WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., Series 4
(A California Limited Partnership)
INDEX TO FORM 10-Q
FOR THE QUARTER ENDED MARCH 31, 1998
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets, March 31, 1998 and
December 31, 1997..................................................3
Statement of Operations
For the three months ended March 31, 1998 and 1997..........4
Statement of Partners' Equity
For the three months ended March 31, 1998 and 1997..........5
Statement of Cash Flows
For the three months ended March 31, 1998 and 1997..........6
Notes to Financial Statements........................................8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations........................14
Item 3. Quantitative and Qualitative Disclosures
Above Market Risks.........................................17
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K............................17
Signatures .........................................................18
<PAGE>
WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P. SERIES 4
(A California Limited Partnership)
BALANCE SHEETS
March 31, 1998 and December 31, 1997
1998 1997
---- ----
ASSETS
Cash and cash equivalents $ 1,161,152 $ 1,147,906
Receivables from affiliates 31,646 31,646
Investment in limited
partnerships (Note 2) 7,391,045 7,622,211
Other assets 189 -
--------- ---------
$ 8,584,032 $ 8,801,763
========= =========
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
Liabilities:
Payable to limited partnership (Note 4) $ 363,634 $ 363,634
Accrued fees and expenses due to general
partner and affiliates (Note 3) 18,415 6,445
-------- -------
Total liabilities 382,049 370,079
-------- -------
Partners' equity (deficit):
General partner (19,153) (16,856)
Limited partners (25,000 units
authorized, 11,500 issued and outstanding) 8,221,136 8,448,540
--------- ---------
Total partners' equity 8,201,983 8,431,684
--------- ---------
$ 8,584,032 $ 8,801,763
========= =========
UNAUDITED
See Accompanying Notes to Financial Statements
3
<PAGE>
WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P. SERIES 4
(A California Limited Partnership)
STATEMENT OF OPERATIONS
For the Three Months Ended March 31, 1998 and 1997
1998 1997
---- ----
Interest income $ 10,896 $ 23,900
------ ------
Operating expenses:
Amortization 6,379 6,351
Asset management fees (Note 3) 7,906 7,906
Legal and accounting 3,350 1,000
Other
714 566
------- ------
Total operating expenses 18,349 15,823
------- ------
Income (loss) from operations (7,453) 8,077
Equity in loss from
limited partnerships (222,248) (165,000)
-------- --------
Net loss $(229,701) $ (156,923)
========= ========
Net loss allocated to:
General partner $ (2,297) $ (1,569)
======= ========
Limited partners $ (227,404) $ (155,354)
========= =========
Net loss per limited
partner units (11,500
weighted units 1998 and 1997) $ (19.77) $ (13.51)
======== ========
UNAUDITED
See Accompanying Notes to Financial Statements
4
<PAGE>
WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P. SERIES 4
(A California Limited Partnership)
STATEMENT OF PARTNERS' EQUITY
For the Three Months Ended March 31, 1998 and 1997
<TABLE>
<CAPTION>
For the Three Months Ended March 31, 1998
General Limited
Partner Partner Total
------- ------- -----
<S> <C> <C> <C>
Equity (deficit), December 31, 1997 $ (16,856) $ 8,448,540 $ 8,431,684
Net loss for the three months ended
March 31, 1998 (2,297) (227,404) (229,701)
-------- --------- ---------
Equity (deficit), March 31, 1998 $ (19,153) $ 8,221,136 $ 8,201,983
======== ========= ==========
<CAPTION>
For the Three Months Ended March 31, 1997
General Limited
Partner Partner Total
------- ------- -----
<S> <C> <C> <C>
Equity (deficit), December 31, 1996 $ $ 9,252,302 $ 9,243,565
(8,737)
Offering expense
(4) (346) (350)
Net loss for the three months ended
March 31, 1997 (1,569) (155,354) (156,923)
---------- --------- ----------
Equity (deficit), March 31, 1997 $ (10,310) $ 9,096,602 $ 9,086,292
========== ========== =========
</TABLE>
UNAUDITED
See Accompanying Notes to Financial Statements
5
<PAGE>
WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P. SERIES 4
(A California Limited Partnership)
STATEMENT OF CASH FLOWS
For the Three Months Ended March 31, 1998 and 1997
1998 1997
---- ----
Cash flows provided by operating activities:
Net loss $ (229,701) $ (156,923)
Adjustments to reconcile net loss to net
cash used in operating activities:
Equity in loss of limited partnerships 222,248 165,000
Amortization 6,379 6,351
Asset management fee 7,906 7,906
Decrease in interest receivable (189) 5,652
Accrued fees and expense due to
general partner and affiliates 4,064 1,605
------ -----
Net cash provided by operating activities 10,707 29,591
------- ------
Cash flows provided (used) by investing activities:
Investments in limited partnerships - (824,690)
Distributions from limited partnerships 2,539
Acquisition costs and fees - (300)
----- --------
Net cash provided (used) by investing activities 2,539 (824,990)
----- --------
Net increase (decrease) in cash and cash
equivalents 13,246 (795,399)
Cash and cash equivalents, beginning of period 1,147,906 2,614,756
--------- ---------
Cash and cash equivalent, end of period $ 1,161,152 $ 1,819,357
========= =========
(Continued)
UNAUDITED
See Accompanying Notes to Financial Statements
6
<PAGE>
WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
(A California Limited Partnership)
STATEMENT OF CASH FLOWS - CONTINUED
For the Three Months ended March 31, 1998 and 1997
Supplemental disclosure of noncash financing and investing activity:
During the three months ended March 31, 1997, the Partnership's payables to
limited partnerships increased $1,612 due to various price adjuster provisions
in the respective limited partnership agreements
UNAUDITED
See Accompanying Notes to Financial Statements
7
<PAGE>
WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., SERIES 4
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
- ---------------------------------------------------
Organization
- ------------
WNC California Tax Credits IV, L.P., Series 4 (the "Partnership") was formed
under the California Revised Limited Partnership Act on February 16, 1995, and
commenced operations on July 26, 1995. The Partnership was formed to invest
primarily in other limited partnerships which will own and operate multi-family
housing complexes that will qualify for low income housing credits.
The general partner of the Partnership is WNC California Tax Credit Partners IV,
L.P. (the "General Partner"), a California limited partnership. WNC &
Associates, Inc. is the general partner of the General Partner. Wilfred N.
Cooper, Sr., through the Cooper Revocable Trust, owns 70% of the outstanding
stock of WNC & Associates, Inc. John B. Lester, Jr. is the original limited
partner of the Partnership and owns, through the Lester Family Trust, 30% of the
outstanding stock of WNC & Associates, Inc.
General
- -------
The information contained in the following notes to the financial statements is
condensed from that which would appear in the annual financial statements;
accordingly, the financial statements included herein should be reviewed in
conjunction with the audited financial statements and related notes thereto
contained in the Partnership's financial statements for the period ended
December 31, 1997 (audited).
In the opinion of the General Partner, the accompanying unaudited financial
statements contain all adjustments (consisting of only normal recurring
accruals) necessary to present fairly the financial position as of March 31,
1998 and the results of operations and changes in cash flows for the three
months ended March 31, 1998 and 1997.
Allocations Under the Terms of the Partnership Agreement
- --------------------------------------------------------
The General Partner has a 1% interest in operating profits and losses, taxable
income and loss and in cash available for distribution from the Partnership. The
limited partners will be allocated the remaining 99% of these items in
proportion to their respective investments.
8
<PAGE>
WNC CALIFORNIA TAX CREDITS IV, L.P., SERIES 4
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
- ---------------------------------------------------------------
After the limited partners have received sale or refinancing proceeds equal to
their capital contributions and their return on investment (as defined in the
Partnership's Agreement of Limited Partnership) and the General Partner has
received a subordinated disposition fee (as described in Note 3 below), any
additional sale or refinancing proceeds will be distributed 90% to the limited
partners (in proportion to their respective investments) and 10% to the General
Partner.
Method of Accounting For Investment in Limited Partnerships
The investment in limited partnerships is accounted for on the equity method of
accounting whereby the Partnership adjusts its investment balance for its share
of each limited partnership's results of operations and for any distributions
received. Costs incurred by the Partnership in acquiring the investments in
limited partnerships are capitalized as part of the investment account.
Losses from the limited partnerships will not be recognized to the extent that
the individual investment balance would be adjusted below zero.
Offering Expenses
- -----------------
Offering expenses consist of underwriting commissions, legal fees, printing,
filing and recordation fees, and other costs incurred with selling limited
partnership interests in the Partnership. The General Partner is obligated to
pay all offering and organization costs in excess of 15% (including sales
commissions) of the total offering proceeds. Offering expenses are reflected as
a reduction of partners' capital.
Organization Costs
- ------------------
Organization costs are being amortized on the straight-line method over 60
months.
Cash and Cash Equivalents
- -------------------------
The Partnership considers investments with an original maturity of three months
or less as cash equivalents.
9
<PAGE>
WNC CALIFORNIA TAX CREDITS IV, L.P., SERIES 4
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 2 - INVESTMENT IN LIMITED PARTNERSHIPS
- -------------------------------------------
As of March 31, 1998 the Partnership had acquired limited partnership interests
in nine limited partnerships each of which owns one Apartment Complex. As of
March 31, 1998, construction or rehabilitation of all nine of the Apartment
Complexes had been completed.
The Partnership, as a limited partner, is entitled to 99%, as specified in the
partnership agreements, of the operating profits and losses of the limited
partnerships upon the acquisition of its limited partnership interest. Following
is a summary of the components of investment in limited partnerships as of March
31, 1998 and December 31, 1997:
1998 1997
-------- ----
Investment beginning of period $7,622,211 $8,467,424
Total capital contributions made and accrued,
net of tax credit adjustments (10,722)
Distributions from limited partnerships (2,539) (6,000)
Increase in capitalized acquisition fees and costs 0 3,567
Amortization of acquisition fees and costs (6,379) (25,419)
Equity in loss of limited partnerships (222,248) (806,639)
--------- ---------
Investment, end of period $7,391,045 $7,622,211
=========== ==========
10
<PAGE>
WNC CALIFORNIA TAX CREDITS IV, L.P., SERIES 4
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 2 - INVESTMENT IN LIMITED PARTNERSHIPS (CONTINUED)
- -------------------------------------------------------
Selected financial information from the financial statements of the limited
partnerships with operations for the three months ended March 31, 1998 and 1997
is as follows:
Three months ended March 31,
----------------------------
1998 1997
---- ----
Total revenue $ 259,000 $ 236,000
------- -------
Expenses:
Operating expenses - exclusive of
depreciation and interest 166,000 148,000
Interest expense 154,000 109,000
Depreciation 163,000 146,000
------- -------
Total expenses 483,000 403,000
------- -------
Net loss $ (224,000) $ (167,000)
========= =========
Net loss allocable to Partnership $ (222,248) $(165,000)
========= =========
NOTE 3 - RELATED PARTY TRANSACTIONS
- -----------------------------------
Receivables from affiliates consists primarily of amounts due from WNC
California Housing Tax Credits IV, L.P. Series 5 related to the allocation of
offering expenses incurred, as defined in the Partnership Agreement.
Under the terms of its Agreement of Limited Partnership, the Partnership is
obligated to the General Partner or its affiliates for the following items:
Acquisition fees of up to 7% of the gross proceeds from the sale of
Partnership units. No acquisition fees were incurred for the three
months ended March 31, 1998 and 1997.
11
<PAGE>
WNC CALIFORNIA TAX CREDITS IV, L.P., SERIES 4
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 3 - RELATED PARTY TRANSACTIONS (CONTINUED)
- -----------------------------------------------
An annual asset management fee equal to the greater amount of (i)
$2,000 for each Apartment Complex, or (ii) 0.275% of Gross Proceeds. In
either case, the fee will be decreased or increased annually based on
changes to the Consumer Price Index. However, in no event will the
maximum amount exceed 0.2 % of the invested assets (defined as the
Partnership's capital contributions to the limited partnerships plus
its allocable percentage of the permanent financing) of the limited
partnerships which are subsidized under one or more Federal, state or
local government programs. The Partnership has incurred fees of $7,906
for each three month period ended March 31, 1998 and 1997.
Reimbursement for organizational, offering and selling expenses
advanced by an affiliate of the General Partner on behalf of the
Partnership. These reimbursements plus all other organizational and
offering expenses inclusive of sales commissions will not exceed 15% of
the gross proceeds. During the three months ended March 31, 1998 the
Partnership incurred no organizational, offering and selling expenses
and during the three months ended March 31, 1997 the Partnership
incurred organizational, offering and selling expenses of $-0-, $350
and $-0-, respectively.
A subordinated disposition fee in an amount equal to 1% of the sales
price of real estate sold. Payment of this fee is subordinated to the
limited partners receiving a return on investment (as defined in the
Agreement of Limited Partnership) and is payable only if services are
rendered in the sales effort.
12
<PAGE>
WNC CALIFORNIA TAX CREDITS IV, L.P., SERIES 4
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 3 - RELATED PARTY TRANSACTIONS (CONTINUED)
- -----------------------------------------------
Accrued fees and advances due to affiliates of the General Partner included in
the accompanying balance sheet consists of the following at March 31, 1998 and
December 31, 1997:
1998 1997
------- ----
Advances made for acquisition costs,
organizational, offering and selling
expenses $ - $ 1,055
Asset management fees 13,296 5,390
Other advances and expenses 5,119 -
------- -------
$ 18,415 $ 6,445
======= =======
NOTE 4 - PAYABLE TO LIMITED PARTNERSHIPS
- ----------------------------------------
Payable to limited partnerships represent amounts which are due at various times
based on conditions specified in the respective limited partnership agreements.
These contributions are payable in installments, are generally due upon the
limited partnerships achieving certain operating benchmarks and are generally
expected to be paid within two years of the Partnership's initial investment.
NOTE 5 - INCOME TAXES
- ---------------------
The Partnership will not make a provision for income taxes since all items of
taxable income and loss will be allocated to the partners for inclusion in their
respective income tax returns.
13
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operation
WNC California Housing Tax Credits IV, L.P., Series 4 ("the Partnership") is a
California Limited Partnerships formed under the laws of the State of California
on May 4, 1993 to acquire limited partnership interests in limited partnerships
("Limited Partnerships") which own multifamily apartment complexes that are
eligible for low-income housing federal income tax credits (the "Housing Tax
Credit").
As of March 31, 1998, the Partnership has received subscriptions for 11,500
Units at $1,000 per Unit consisting of cash of $11,099,050 and discounts
$400,950. The offering terminated in August, 1995 at which time the
subscriptions for 11,500 units were accepted.
The Partnership raised funds from investors through its public offering of units
of limited partnership interest ("Units") and intends to apply such funds,
including the installment payments of the limited partners' promissory notes as
received, to the acquisition of investments in Limited Partnerships, acquisition
fees, the establishment of reserves, the payment of operating expenses and the
payment of expenses of this offering.
Liquidity and Capital Resources
- -------------------------------
Overall, as reflected in its Statement of Cash Flows, the Partnership had a net
increase in cash and cash equivalents of approximately $13,200 for the three
months ended March 31, 1998. Cash of approximately $10,700 was provided by
operating activities during three months ended March 31, 1998. Cash of
approximately $2,500 was provided by investing activities and consisted entirely
of cash distributions from limited partnerships. Cash provided by operating
activities consisted primarily of interest received on cash deposits, and cash
used consisted primarily of payments operating fees and expenses. The major
components of all these activities are discussed in greater detail below.
Overall, as reflected in its Statement of Cash Flows, the Partnership had a net
decrease in cash and cash equivalents of approximately $795,400 for the three
months ended March 31, 1997. Cash of approximately $825,000 was used by
investing activities, offset by approximately $29,600 provided by operating
activities during three months ended March 31, 1997. Cash used by investing
activities and consisted cash used for capital contributions to limited
partnerships and acquisition fees and expenses of approximately $824,700 and
$300, respectively. Cash provided by operating activities consisted primarily of
interest received on cash deposits and investors notes receivable, and cash used
consisted primarily of payments operating fees and expenses. The major
components of all these activities are discussed in greater detail below.
As of March 31, 1998, the Partnership was indebted to WNC & Associates, Inc.
for approximately $18,400. The component items of such indebtedness were as
follows advances to pay operating fees and expenses of approximately $5,100 and
Asset Management Fees of approximately $13,300. As of December 31, 1997, the
Partnership was indebted to WNC & Associates for approximately $44,000
consisting of accrued Acquisition Fees of approximately $24,000, advances to pay
front-end fees of $2,000, and Asset Management Fees of $18,000.
14
<PAGE>
As of March 31, 1998 and December 31, 1997, the Partnership has received and
accepted subscriptions funds in the amount of $11,099,000. As of March 31, 1998
and December 31, 1997, the Partnership had made capital contributions to Local
Limited Partnerships in the amount of approximately $7,998,000, and had
commitments for additional capital contributions of approximately $364,000.
It is not expected that any of the local limited partnerships in which the
Partnership will invest will generate cash from operations sufficient to provide
distributions to the limited partners in any significant amount. Such cash from
operations, if any, would first be used to meet operating expenses of the
Partnership, including the payment of the asset management fee to the General
Partner.
The Partnership's investments will not be readily marketable and may be affected
by adverse general economic conditions which, in turn, could substantially
increase the risk of operating losses for the apartment complexes, the local
limited partnerships and the Partnership. These problems may result from a
number of factors, many of which cannot be controlled by the General Partner.
Nevertheless, the General Partner anticipates that capital raised from the sale
of the Units will be sufficient to fund the Partnership's future investment
commitments and proposed operations.
The Partnership established working capital reserve of approximately least 3% of
capital contributions, an amount which is anticipated to be sufficient to
satisfy general working capital and administrative expense requirements of the
Partnerships excluding payment of the asset management fee as well as expenses
attendant to the preparation of tax returns and reports to the Limited Partners
and other investor servicing obligations of the Partnerships. Liquidity would,
however, be adversely affected by unanticipated or greater than anticipated
operating costs. The Partnerships' liquidity could also be affected by defaults
or delays in payment of the Limited Partners' promissory notes, from which a
portion of the working capital reserves is expected to be funded. To the extent
that working capital reserves are insufficient to satisfy the cash requirements
of the Partnerships, it is anticipated that additional funds would be sought
through bank loans or other institutional financing. The General Partner may
also apply any cash distributions received from the Local Partnerships for such
purposes or to replenish or increase working capital reserves.
Under its partnership agreement the Partnership does not have the ability to
assess its partners for additional capital contributions to provide capital if
needed by the Partnership or local limited partnerships. Accordingly, if
circumstances arise that cause the local limited partnerships to require capital
in addition to that contributed by the Partnership and any equity of the local
general partners, the only sources from which such capital needs will be able to
be satisfied (other than the limited reserves available at the Partnership
level) will be (i) third-party debt financing (which may not be available, if,
as expected, the apartment complexes owned by the local limited partnerships are
already substantially leveraged), (ii) additional equity contributions or
advances of the local general partners, (iii) other equity sources (which could
adversely affect the Partnership's interest in tax credits, cash flow and/or
proceeds of sale or refinancing of the apartment complexes and result in adverse
tax consequences to the limited partners), or (iv) the sale or disposition of
the apartment complexes (which could have the same adverse effects as discussed
in (iii) above).
15
<PAGE>
The Partnerships' capital needs and resources are expected to undergo major
changes during their first several years of operations as a result of the
completion of their offerings of Units and their acquisition of investments.
Thereafter, the Partnerships' capital needs and resources are expected to be
relatively stable over the holding periods of the investments except to the
extent of proceeds received in payment of Promissory Notes and disbursed to fund
the deferred obligations of the Partnerships.
Results of Operations
- ---------------------
As of March 31, 1998 and 1997, The Partnership had acquired nine and eight
Local Limited Partnership Interests, respectively. Each of the nine Local
Limited Partnerships receives or is expected to receive government assistance
and each of them has received a reservation for Housing Tax Credits. As of March
31, 1998 and 1997, nine and eight, respectively, of the Apartment Complexes in
the Partnership had commenced operations. Accordingly, the "Equity in losses
from limited partnerships" for the period ended March 31, 1998 and 1997
reflected in the Statement of Operations of the Partnership is not indicative of
the amounts to be reported in future years.
As reflected on its Statements of Operations, The Partnership had a loss of
approximately $230,00 and $157,000 for the three months ended March 31, 1998 and
1997 respectively. The component items of revenue and expense are discussed
below.
Revenue. The Partnership's revenues consisted entirely of interest earned on
Promissory Notes and cash deposits held in financial institutions (i) as
Reserves, or (ii) pending investment in Local Partnerships. Interest revenue in
future years will be a function of prevailing interest rates and the amount of
cash balances. It is anticipated that The Partnership will maintain cash
Reserves in an amount not materially in excess of the minimum amount required by
its Partnership Agreement, which is 3% of Capital Contributions.
Expenses. The most significant component of operating expenses is and is
expected to be the Asset Management Fee. The Asset Management Fees is equal to
the greater of (i) $2,000 for each Apartment Complex or (ii) 0.275% of gross
proceeds, and will be decreased or increased annually based on changes to the
Consumer Price Index. Asset management fee of approximately $7,900 was accrued
for each of the three month periods ended March 31, 1998 and 1997.
Amortization expense consist of the amortization over a period of 30 years of
the Acquisition Fee and other expenses attributable to the acquisition of Local
Limited Partnership Interests. Interest expense was incurred as described above
under "Liquidity and Capital Resources." Interest expense is expected to minimal
after 1997. Office expense consist of the Partnership's administrative expenses,
such as legal fees, bank charges and investor reporting expenses.
Office expenses and legal and accounting consists of the Partnership's
administrative expenses, such as accounting and legal fees, bank charges and
investor reporting expenses.
16
<PAGE>
The Partnership's equity in losses from limited partnerships is equal to 99% of
the aggregate net loss of the limited partnerships. After rent-up, the limited
partnerships are expected to generate losses during each year of operations;
this is so because, although rental income is expected to exceed cash operating
expenses, depreciation and amortization deductions claimed by the limited
partnerships are expected to exceed net rental income.
Item 3. Quantitative and Qualitative Disclosures Above Market Risks
NONE.
Part II. Other Information
Item 1. Legal Proceedings
NONE.
Item 6. Exhibits and Reports on Form 8-K
1. NONE.
No reports on Form 8-K were filed during the quarter ended March 31, 1998.
17
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
WNC CALIFORNIA HOUSING TAX CREDITS IV, L.P., Series 4
By: WNC & ASSOCIATES, INC. General Partner
By: /s/ John B. Lester, Jr.
- ----------------------------------------------------
John B. Lester, Jr. President
Date: May 27, 1998
By: /s/ Theodore M. Paul
- -----------------------------------------------------
Theodore M. Paul Vice President - Finance
Date: May 27, 1998
18
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000921052
<NAME> WNC CALIFORNIA HOUSING TAX CREDITS IV, SERIES 4
<MULTIPLIER> 1
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<EXCHANGE-RATE> 1
<CASH> 1,161,152
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,161,152
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 8,584,032
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 8,201,983
<TOTAL-LIABILITY-AND-EQUITY> 8,584,032
<SALES> 0
<TOTAL-REVENUES> 10,896
<CGS> 0
<TOTAL-COSTS> 18,349
<OTHER-EXPENSES> 222,248
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (229,701)
<INCOME-TAX> 0
<INCOME-CONTINUING> (229,701)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (229,701)
<EPS-PRIMARY> (19.77)
<EPS-DILUTED> 0
</TABLE>
