UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended ~~December~~June 3130, ~~2009~~2010

[ ] 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: 0-~~21895~~20058

WNC CALIFORNIA HOUSING TAX CREDITS, L.P.

California	33-0316953
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
17782 Sky Park Circle
Irvine, CA	92614-6404
Address of principal executive offices)	(Zip Code)
(Address of principal executive offices)	(Zip Code)

(714) 662-5565

(Telephone number)

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 whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes No X

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer___ Accelerated filer___ Non-accelerated ~~filer___X__ Smaller~~filer X Smaller reporting company___

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ~~___No~~ ~~_X__~~___No X

WNC CALIFORNIA HOUSING TAX CREDITS, L.P.

(A California Limited Partnership)

INDEX TO FORM 10 – Q

For the Quarterly Period Ended ~~December~~June 3130, ~~2009~~2010

PART I. FINANCIAL INFORMATION
	Item 1.	Financial Statements
Item 1. Financial Statements
Balance Sheets		~~Balance Sheets~~
			As of December 31, 2009 and March 31, 2009	3
As of June 30, 2010 and March 31, 2010	3
Statements of Operations		~~Statements of Operations~~
			For the Three and Nine Months Ended December 31, 2009 and 2008	4
For the Three Months Ended June 30, 2010 and 2009	4
		Statement of Partners' Equity (Deficit)
Statement of Partners' Deficit
			For the Nine Months Ended December 31, 2009	5
For the Three Months Ended June 30, 2010	5
Statements of Cash Flows		~~Statements of Cash Flows~~
			For the Nine Months Ended December 31, 2009 and 2008	6
For the Three Months Ended June 30, 2010 and 2009	6
Notes to Financial Statements	7	~~Notes to Financial Statements~~		7
	Item 2.	Management's Discussion and Analysis of Financial
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations	14		~~Condition and Results of Operations~~	15
	Item 3.	Quantitative and Qualitative Disclosures about Market Risks		17
Item 3. Quantitative and Qualitative Disclosures about Market Risks	17
	Item 4T.	Controls and Procedures		17
Item 4T. Controls and Procedures	17
PART II. OTHER INFORMATION
	Item 1.	Legal Proceedings		18
Item 1. Legal Proceedings	18
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		18
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	18
	Item 3.	Defaults Upon Senior Securities		18
Item 3. Defaults Upon Senior Securities	18
	Item 4.	Submission of Matters to a Vote of Security Holders		18
Item 4. (Removed and Reserved)	18
	Item 5.	Other Information		18
Item 5. Other Information	18
	Item 6.	Exhibits		18
Item 6. Exhibits	18
Signatures	19	~~Signatures~~		19

WNC CALIFORNIA HOUSING TAX CREDITS, L.P.

(A California Limited Partnership)

BALANCE SHEETS

(~~unaudited~~Unaudited)

		December 31, 2009		March 31, 2009
		June 30, 2010			March 31, 2010
ASSETS
Cash	$	34,373	$	49,488
Cash and cash equivalents		$	90,900		$	42,834
Investments in Local Limited Partnerships, net (Note 2)		-	-	-		-
Total Assets	$	34,373	$	49,488
Other assets			-			3,051
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
Total Assets		$	90,900		$	45,885
Liabilities:
LIABILITIES AND PARTNERS' DEFICIT
Accrued fees and expenses due to
Liabilities:
General Partner and affiliates (Note 3)	$	1,976,017	$	1,895,560
Accrued fees and expenses due to
Partners’ Deficit:
General Partner and affiliates (Note 3)		$	1,816,569		$	1,898,495
General Partner		(81,145)		(80,189)
Partners’ Deficit:
Limited Partners (10,000 Partnership Units authorized;
General Partners			(78,985	)		(80,254	)
7,450 Partnership Units issued and outstanding)		(1,860,499)		(1,765,883)
Limited Partners (10,000 Partnership Units authorized;
Total Partners’ Deficit		(1,941,644)		(1,846,072)
7,450 Partnership Units issued and outstanding)			(1,646,684	)		(1,772,356	)
Total Liabilities and Partners’ Deficit	$	34,373	$	49,488
Total Partners’ Deficit			(1,725,669	)		(1,852,610	)
Total Liabilities and Partners’ Deficit		$	90,900		$	45,885

See accompanying notes to financial statements

WNC CALIFORNIA HOUSING TAX CREDITS, L.P.

(A California Limited Partnership)

STATEMENTS OF OPERATIONS

For the Three ~~and Nine~~ Months Ended ~~December~~June 3130, ~~2009~~2010 and ~~2008~~2009

(~~unaudited~~Unaudited)

		2009				2008
		2010				2009
		Three Months		~~Nine Months~~		Three Months		~~Nine Months~~
Reporting fees	$	-$	$-	~~1,050~~	$	-$	$1,050	-
Distribution income		-		-		1,584		6,393
Total operating income			-				1,050
Total operating income				1,050		1,584		6,393
Operating expenses:
Asset management fees (Note 3)		~~15,020~~	7,733	~~49,312~~		~~22,983~~	17,855	~~68,949~~
Legal and accounting fees		~~3,421~~	4,159	~~81,100~~		~~3,490~~	11,285	~~11,243~~
Other		~~1,331~~	928	~~6,219~~		~~2,009~~	3,629	~~9,604~~
Total operating expenses		~~19,772~~	12,820	~~136,631~~		~~28,482~~	32,769	~~89,796~~
Loss from operations		~~(19,772)~~	(12,820	~~(135,581~~)		~~(26,898)~~	(31,719	~~(83,403~~)
Gain on Sale of Local			139,742				-
Limited Partnerships (Note 2)		-		~~40,000~~		~~45,000~~		~~45,000~~
Interest income		1	19	9		7	5	~~306~~
Net income (loss)	$	~~(19,771)~~$	$126,941	~~(95,572)~~	$	~~18,109~~$	$(31,714	~~(38,097~~)
Net income (loss) allocated to:
General Partner	$	(198)	$	(956)	$	181	$	(381)
General Partners		$	1,269			$	(317	)
Limited Partners	$	~~(19,573)~~$	$125,672	~~(94,616)~~	$	~~17,928~~$	$(31,397	~~(37,716~~)
Net income (loss) per Partnership Unit	$	~~(3)~~$	$16.87	~~(13)~~	$	2$	$(4	(5)
Outstanding weighted Partnership Units		~~7,450~~	7,450	~~7,450~~		~~7,450~~	7,450	~~7,450~~

See accompanying notes to financial statements

WNC CALIFORNIA HOUSING TAX CREDITS, L.P.

(A California Limited Partnership)

STATEMENT OF PARTNERS’ DEFICIT

For the ~~Nine~~Three Months Ended ~~December~~June 3130, ~~2009~~2010

(~~unaudited~~Unaudited)

		General		~~Limited~~		Limited
		Partner		Partners		Total
		Partners				Partners			Total
Partners’ deficit at March 31, 2009	$	(80,189)	$	(1,765,883)	$	(1,846,072)
Partners’ deficit at March 31, 2010		$	(80,254	)		$	(1,772,356	)	$	(1,852,610	)
Net loss		(956)		(94,616)		(95,572)
Net income			1,269				125,672			126,941
Partners’ deficit at December 31, 2009	$	(81,145)	$	(1,860,499)	$	(1,941,644)
Partners’ deficit at June 30, 2010		$	(78,985	)		$	(1,646,684	)	$	(1,725,669	)

See accompanying notes to financial statements

WNC CALIFORNIA HOUSING TAX CREDITS, L.P.

(A California Limited Partnership)

STATEMENTS OF CASH FLOWS

For the ~~Nine~~Three Months Ended ~~December~~June 3130, ~~2009~~2010 and ~~2008~~2009

(~~unaudited~~Unaudited)

		2009		2008
		2010			2009
Cash flows from operating activities:
Net loss	$	(95,572)	$	(38,097)
Net income (loss)		$	126,941		$	(31,714	)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
cash used in operating activities:
Change in accounts payable		-		-
Change in prepaid expenses			3,051			-
Change in due from Local Limited Partnership		-		-
Change in accrued fees and expenses due to
Change in accrued fees and expenses due to
General Partner and affiliates			(81,926	)		16,595
General Partners and affiliates		80,457		(85,211)
Gain on sale of Local Limited Partnerships			(139,742	)		-
Gain on sale of investment in Local Limited Partnerships		(40,000)		(45,000)
Net cash used in operating activities			(91,676	)		(15,119	)
Net cash provided by (used in) operating activities		(55,115)		(168,308)
Cash flows from investing activities:
Cash flows from investing activities:
Proceeds from sale of Local Limited Partnerships			139,742			-
Proceeds from sale of investment in Local Limited partnerships		40,000		45,000
Net cash provided by investing activities			139,742			-
Net cash provided by investing activities		40,000		45,000
Net increase (decrease) in cash			48,066			(15,119	)
Net decrease in cash		(15,115)		(123,308)
Cash and cash equivalents, beginning of period			42,834			49,488
Cash, beginning of period		49,488		209,252
Cash and cash equivalents, end of period		$	90,900		$	34,369
Cash, end of period	$	34,373	$	85,944
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Taxes paid		$	-		$	-
Taxes paid	$	-	$	-

See accompanying notes to financial statements

WNC CALIFORNIA HOUSING TAX CREDITS, L.P.

(A California Limited Partnership)

NOTES TO FINANCIAL STATEMENTS

For the Quarterly Period Ended ~~December~~June 3130, ~~2009~~2010

(~~unaudited~~Unaudited)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

General

The accompanying condensed unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q for quarterly reports under Section 13 or 15(d) of the Securities Exchange Act of 1934. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the ~~nine~~three months ended ~~December~~June 3130, ~~2009~~ 2010 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, ~~2010~~2011. For further information, refer to the financial statements and footnotes thereto included in the Partnership's annual report on Form 10-K for the fiscal year ended March 31, ~~2009~~2010.

Organization

WNC California Housing Tax Credits, L.P., (the "Partnership"), is a California Limited Partnership formed under the laws of the State of California on September 15, 1988. The Partnership was formed to acquire limited partnership interests in other limited partnerships (“Local Limited Partnerships”) which own multi-family housing complexes (“Housing Complexes”) that are eligible for Federal low income housing tax credits (“Low Income Housing Tax Credits”). The local general partners (the “Local General Partners”) of each Local Limited Partnership retain responsibility for maintaining, operating and managing the Housing Complexes. Each Local Limited Partnership is governed by its agreement of limited partnership (the “Local Limited Partnership Agreement”).

WNC & Associates, Inc., a California corporation (“Associates”), and Wilfred N. Cooper, Sr., are general partners of the Partnership (collectively, the "General Partner" or “General Partners”). The chairman and president of Associates own substantially all of the outstanding stock of Associates. The business of the Partnership is conducted primarily through Associates, as the Partnership has no employees of its own.

The Partnership shall continue in full force and effect until December 31, 2037 unless terminated prior to that date pursuant to the partnership agreement or law.

The financial statements include only activity relating to the business of the Partnership, and do not give effect to any assets that the partners may have outside of their interests in the Partnership, or to any obligations, including income taxes, of the partners.

The Partnership Agreement authorized the sale of up to 10,000 units of Limited Partnership interests (“Partnership Units”) at $1,000 per Partnership Unit. The offering of Partnership Units concluded in October 1990 at which time 7,450 Partnership Units representing subscriptions in the amount of $7,450,000, had been accepted. The General Partners have a 1% interest in operating profits and losses, taxable income and losses, cash available for distribution from the Partnership and Low Income Housing Tax Credits of the Partnership. The investors (the “Limited Partners”) will be allocated the remaining 99% of these items in proportion to their respective investments.

WNC CALIFORNIA HOUSING TAX CREDITS, L.P.

(A California Limited Partnership)

NOTES TO FINANCIAL STATEMENTS ~~- CONTINUED~~

For the Quarterly Period Ended ~~December~~June 3130, ~~2009~~2010

(~~unaudited~~Unaudited)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued

The proceeds from the disposition of any of the Local Limited Partnership Housing Complexes will be used first to pay debts and other obligations per the respective Local Limited Partnership Agreement. Any remaining proceeds will then be paid to the Partnership. The sale of a Housing Complex may be subject to other restrictions and obligations. Accordingly, there can be no assurance that a Local Limited Partnership will be able to sell its Housing Complex. Even if it does so, there can be no assurance that any significant amounts of cash will be distributed to the Partnership Should such distributions occur, the Limited Partners will be entitled to receive distributions equal to their capital contributions and their return on investment (as defined in the Partnership Agreement) and the General Partners would then be entitled to receive proceeds equal to their capital contributions from the remainder. Any additional sale or refinancing proceeds will be be distributed 99% to the Limited Partners (in proportion to their respective investments) and 1% to the General Partners.

Risks and Uncertainties

An investment in the Partnership and the Partnership’s investments in Local Limited Partnerships and their Housing Complexes are subject to risks. These risks may impact the tax benefits of an investment in the Partnership, and the amount of proceeds available for distribution to the Limited Partners, if any, on liquidation of the Partnership’s investments. Some of those risks include the following:

The Low Income Housing Tax Credits rules are extremely complicated. Noncompliance with these rules results in the loss of future Low Income Housing Tax Credits and the fractional recapture of Low Income Housing Tax Credits already taken. In most cases the annual amount of Low Income Housing Tax Credits that an individual can use is limited to the tax liability due on the person’s last $25,000 of taxable income. The Local Limited Partnerships may be unable to sell the Housing Complexes at a price which would result in the Partnership realizing cash distributions or proceeds from the transaction. Accordingly, the Partnership may be unable to distribute any cash to its Limited Partners. Low Income Housing Tax Credits may be the only benefit from an investment in the Partnership.

The Partnership has invested in a limited number of Local Limited Partnerships. Such limited diversity means that the results of operation of each single Housing Complex will have a greater impact on the Partnership. With limited diversity, poor performance of one Housing Complex could impair the Partnership’s ability to satisfy its investment objectives. Each Housing Complex is subject to mortgage indebtedness. If a Local Limited Partnership failed to pay its mortgage, it could lose its Housing Complex in foreclosure. If foreclosure were to occur during the first 15 years, the loss of any remaining future Low Income Housing Tax Credits, a fractional recapture of prior Low Income Housing Tax Credits, and a loss of the Partnership’s investment in the Housing Complex would occur. The Partnership is a limited partner or a non-managing member of each Local Limited Partnership. Accordingly, the Partnership will have very limited rights with respect to management of the Local Limited Partnerships. The Partnership will rely totally on the Local General Partners. Neither the Partnership’s investments in Local Limited Partnerships, nor the Local Limited Partnerships’ investments in Housing Complexes, are readily marketable. To the extent the Housing Complexes receive government financing or operating subsidies, they may be subject to one or more of the following risks: difficulties in obtaining tenants for the Housing Complexes; difficulties in obtaining rent increases; limitations on cash distributions; limitations on sales or refinancing of Housing Complexes; limitations on transfers of interests in Local Limited Partnerships; limitations on removal of Local General Partners; limitations on subsidy programs; and possible changes in applicable regulations. Uninsured casualties could result in loss of property and Low Income Housing Tax Credits and recapture of Low Income Housing Tax Credits previously taken. The value of real estate is subject to risks from fluctuating economic conditions, including employment rates, inflation, tax, environmental, land use and zoning policies, supply and demand of similar Housing Complexes, and neighborhood conditions, among others.

WNC CALIFORNIA HOUSING TAX CREDITS, L.P.

(A California Limited Partnership)

NOTES TO FINANCIAL STATEMENTS ~~- CONTINUED~~

For the Quarterly Period Ended ~~December~~June 3130, ~~2009~~2010

(~~unaudited~~Unaudited)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued

~~NOTE~~successful in 1such -a ~~SUMMARY~~challenge. The OFalternative minimum tax could reduce tax ~~SIGNIFICANT~~benefits ~~ACCOUNTING~~from ~~POLICIES,~~an ~~continued~~investment in the Partnership. Changes in tax laws could also impact the tax benefits from an investment in the Partnership and/or the value of the Housing Complexes. All of the Low Income Housing Tax Credits anticipated to be realized from the Local Limited Partnerships have been realized. The Partnership does not anticipate being allocated any Low Income Housing Tax Credits from the Local Limited Partnerships in the future.

The ability of Limited Partners to claim tax losses from the Partnership is limited. The IRS may audit the Partnership or a Local Limited Partnership and challenge the tax treatment of tax items. The amount of Low Income Housing Tax Credits and tax losses allocable to Limited Partners could be reduced if the IRS were successful in such a challenge. The alternative minimum tax could reduce tax benefits from an investment in the Partnership. Changes in tax laws could also impact the tax benefits from an investment in the Partnership and/or the value of the Housing Complexes.

All of the Low Income Housing Tax Credits anticipated to be realized from the Local Limited Partnerships have been realized. The Partnership does not anticipate being allocated any Low Income Housing Tax Credits from the Local Limited Partnerships in the future. Until the Local Limited Partnerships have completed the 15 year Low Income Housing Tax Credit compliance period, risks exist for potential recapture of prior Low Income Housing Tax Credits

received.

No trading market for the Partnership Units exists or is expected to develop. Limited Partners may be unable to sell their Partnership Units except at a discount and should consider their Partnership Units to be a long-term investment. Individual Limited Partners will have no recourse if they disagree with actions authorized by a vote of the majority of Limited Partners.

The Partnership currently has insufficient working capital to fund its operations. Associates has agreed to continue providing advances sufficient enough to fund the operations and working capital requirements of the Partnership through ~~February~~August 2831, 2011.

Anticipated future and existing cash resources of the Partnership are not sufficient to pay existing liabilities of the Partnership. However, substantially all of the existing liabilities of the Partnership are payable to the General Partner and/or its affiliates. Though the amounts payable to the General Partner and/or its affiliates are contractually currently payable, the Partnership anticipates that the General Partner and/or its affiliates will not require the payment of these contractual obligations until capital reserves are in excess of the aggregate of then existing contractual obligations and then anticipated future foreseeable obligations of the Partnership. The Partnership would be adversely affected should the General Partner and/or its affiliates demand current payment of the existing contractual obligations and or suspend services for this or any other reason.

Exit Strategy

The Compliance Period for a Housing Complex is generally 15 years following construction or rehabilitation completion. Associates was one of the first in the industry to offer syndicated investments in Low Income Housing Tax Credits. The initial programs ~~are~~have ~~completing~~completed their Compliance Periods.

~~With~~Upon ~~that~~the insale ~~mind,~~of ~~the~~a ~~General~~Local ~~Partner~~Limited isPartnership ~~continuing~~Interest ~~its~~or ~~review of the~~ Housing ~~Complexes, with~~Complex ~~special~~after ~~emphasis on~~ the ~~more~~end ~~mature Housing Complexes such as any that have~~of ~~satisfied~~ the ~~IRS~~Compliance ~~compliance requirements. The review considers many factors~~Period, ~~including~~there ~~extended~~would ~~use~~be ~~requirements~~no ~~(such~~recapture asof ~~those~~Low ~~due~~Income toHousing ~~mortgage~~Tax ~~restrictions~~Credits. All orLocal ~~state compliance agreements), the condition of the Housing Complexes, and the tax consequences to the~~ Limited ~~Partners~~Partnerships ~~from~~have ~~the~~completed ~~sale~~their ~~of the~~15-year ~~Housing~~Compliance ~~Complexes~~Period.

With that in mind, the General Partner is continuing its review of the Housing Complexes. The review considers many factors, including extended use requirements (such as those due to mortgage restrictions or state compliance agreements), the condition of the Housing Complexes, and the tax consequences to the Limited Partners from the sale of the Housing Complexes.

Upon identifying those Housing Complexes with the highest potential for a successful sale, refinancing or re-syndication, the Partnership expects to proceed with efforts to liquidate them. The objective is to wind down the Partnership as Low Income Housing Tax Credits are no longer available. Local Limited Partnership interests may be disposed of any time by the General Partner in its discretion. While liquidation of the Housing Complexes continues to be evaluated, the dissolution of the Partnership was not imminent as of June 30, 2010.

WNC CALIFORNIA HOUSING TAX CREDITS, L.P.

(A California Limited Partnership)

NOTES TO FINANCIAL STATEMENTS ~~- CONTINUED~~

For the Quarterly Period Ended ~~December~~June 3130, ~~2009~~2010

(~~unaudited~~Unaudited)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued

~~NOTE~~Upon management 1of -the ~~SUMMARY~~Partnership OFidentifying a Local Limited Partnership for ~~SIGNIFICANT~~disposition, ~~ACCOUNTING~~costs ~~POLICIES~~incurred by the Partnership in preparation for the disposition are deferred. Upon the sale of the Local Limited Partnership interest, ~~continued~~the Partnership nets the costs that had been deferred against the proceeds from the sale in determining the gain or loss on sale of the Local

~~Upon~~Limited ~~identifying~~Partnership. ~~those~~Deferred ~~Housing~~disposition ~~Complexes~~costs ~~with~~are ~~the~~included ~~highest~~in ~~potential~~other ~~for~~assets aon ~~successful~~the ~~sale,~~balance ~~refinancing~~sheets.During the oryear ~~syndication~~ended March 31. 2010, the Partnership ~~expects~~identified toone ~~proceed~~Local ~~with~~Limited ~~efforts~~Partnership, toHPA ~~liquidate~~Investors, ~~them~~(“HPA”) for disposition. HPA ~~The~~owns ~~objective~~the Hudson isPark toApartments ~~maximize~~II, ~~the~~located ~~Limited~~in ~~Partners’~~Shafter, California (the ~~return~~“Property”). Consistent ~~wherever~~with ~~possible~~the ~~and,~~investment ~~ultimately~~objectives of the Partnership, tothe ~~wind~~Property ~~down~~qualified for Federal Low Income Housing Tax Credits under the ~~Partnership~~Internal Revenue Code for a 10-year period. The ~~Local~~credit ~~Limited~~period ~~Partnership~~has ~~interests~~expired, ~~may~~and beno ~~disposed~~further ofcredits ~~any~~are ~~time~~being generated by the Property. The ~~General~~15-year ~~Partner~~Federal Compliance Period has also expired, so inthere ~~its~~will ~~discretion.~~be ~~While~~no ~~liquidation~~credit recapture upon the transfer of the Property. On ~~Housing~~October ~~Complexes~~5, ~~continues~~2009, tothe bePartnership filed a proxy with the ~~evaluated,~~Securities and Exchange Commission (“SEC”) for the ~~dissolution~~written consent of the Limited ~~Partnership~~Partners ~~was~~for ~~not~~the ~~imminent~~commencement as of ~~December~~disposition. Definitive 31materials were filed on November 10, 2009 which extended the deadline for submitting ballots. As of November 16, 2009 the Partnership achieved the 51% approval necessary for the disposition.

~~During the~~On ~~quarter ended September 30~~May 20, ~~2009~~2010, the ~~Partnership~~sale ~~sold~~of ~~its~~HPA ~~Limited Partnership~~Investors ~~interest~~closed. inThe ~~San~~total ~~Jacinto~~sales ~~Associates~~price ~~(“San~~including replacement ~~Jacinto”).~~reserves was ~~San Jacinto~~$1,707,000 which was ~~appraised~~disbursed ~~with~~as follows: the aGeneral ~~value~~Partner of HPA was paid approximately $1104,~~360,~~000 in sales preparation and asrefinancing fees and repayment of ~~December~~loans 31previously made, ~~2008~~$1,452,000 paid down the outstanding ~~mortgage~~mortgages ~~debt~~and ~~was~~approximately $18,~~723,404. The~~000 ~~Limited Partnership~~in ~~interest~~selling ~~was~~costs ~~sold~~were onpaid. The ~~August~~remaining 17$143,000 ~~2009~~was todistributed to the ~~Local General Partner~~Partnership. The ~~15-year~~Partnership’s ~~compliance~~investment ~~period~~balance ~~expired~~was inzero ~~2004 therefore~~at ~~there~~March ~~will~~31, be2010. noAccordingly, ~~recapture~~a gain of ~~Low~~$143,000 ~~Income~~was ~~Housing~~recorded ~~Tax~~in the quarter ~~Credits~~ended June 30, 2010. ~~Although~~ ~~the~~The ~~appraised~~$143,000 ~~value~~in ~~was~~cash ~~less~~proceeds ~~than~~was ~~the~~used ~~outstanding mortgage~~to ~~the~~fund the Partnership’s ~~received~~reserves, of which $4093,000 ~~for~~of ~~its~~the ~~Limited~~cash ~~Partnership~~received ~~interest~~paid accrued inasset ~~this~~management ~~Local~~fees, ~~Limited Partnership. The~~ $402,000 ispaid ~~being~~the ~~kept~~General inPartner of the Partnership’s ~~reserves~~for operating toexpenses ~~pay~~paid ~~the~~on ~~costs~~its ~~incurred related~~behalf toand the ~~disposition~~remaining ~~and~~$48,000 ~~other~~will ~~operating~~remain ~~expenses of the~~in the Partnership~~. As~~ ~~the~~reserves ~~investment~~to ~~balance~~fund isfuture ~~zero,~~asset ~~the~~management ~~Partnership~~fees and reimbursements ~~recorded~~to athe ~~gain~~General onPartner ~~the~~or ~~sale~~an ofaffiliate. ~~the~~No ~~Local~~funds ~~Limited~~will ~~Partnership~~be ~~interest~~distributed ~~for~~to the ~~quarter~~Limited ~~ended December 31, 2009~~Partners.

During the quarter ended December 31, 2009, the Partnership has identified one Local Limited Partnership, HPA Investors, (“HPA”) for disposition. HPA owns the Hudson Park Apartments, II, located in Shafter, California (the “Property”). Consistent with the investment objectives of the Partnership, the Property qualified for Federal Low Income Housing Tax Credits under the Internal Revenue Code for a 10-year period. The credit period has expired, and no further credits are being generated by the Property. The 15-year Federal Compliance Period has also expired, so there would be no credit recapture upon a transfer of the Property. On October 5, 2009, the Partnership filed a proxy with the Securities and Exchange Commission (“SEC”) for the written consent of the Limited Partners for the commencement of disposition. Definitive materials were filed on November 10, 2009 which extended the deadline for submitting ballots. As of November 16, 2009 the Partnership achieved the 51% approval necessary for the disposition. The sale of HPA Investors is estimated to close April 30, 2010. The sales price of $1,600,000 plus replacement reserves of $53,000 which remains with the seller will be disbursed as follows: the General Partner of HPA will be paid approximately $105,000 in sales preparation and refinancing fees and repayment of loans previously made, $1,462,000 to pay down the existing mortgages and approximately $16,000 in selling costs will be paid. The remaining $70,000 will be distributed to the Partnership. The $70,000 in cash proceeds will be used to fund the Partnership’s reserves and pay the General Partner of the Partnership for operating expenses paid on its behalf and accrued asset management fees.

Method of Accounting for Investments in Local Limited Partnerships

The Partnership accounts for its investments in Local Limited Partnerships using the equity method of accounting, whereby the Partnership adjusts its investment balance for its share of the Local Limited Partnerships’ results of operations and for any contributions made and distributions received. The Partnership reviews the carrying amount of an individual investment in a Local Limited Partnership for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such investment may not be recoverable. Recoverability of such investment is measured by the estimated value derived by management, generally consisting of the sum of the remaining future Low Income Housing Tax Credits estimated to be allocable to the Partnership and the estimated residual value to the Partnership. If an investment is considered to be impaired, the Partnership reduces the carrying value of its investment in any such Local Limited Partnership. The accounting policies of the Local Limited Partnerships, generally, are expected to be consistent with those of the Partnership. Costs incurred by the Partnership in acquiring the investments are capitalized as part of the investment account and ~~are~~were being amortized over 30 27.5 years (see Note 2).

“Equity in losses of Local Limited Partnerships” for the periods ended June 30, 2010 and 2009 have been recorded by the Partnership. Management’s estimate for the three-month period is based on either actual unaudited results reported by the Local Limited Partnerships or historical trends in the operations of the Local Limited Partnerships. In subsequent annual financial statements, upon receiving the actual annual results reported by the Local Limited Partnerships, management reverses its prior estimate and records the actual results reported by the Local Limited Partnerships. Equity in losses of Local Limited Partnerships allocated to the Partnership are not recognized to the extent that the investment balance would be

WNC CALIFORNIA HOUSING TAX CREDITS, L.P.

(A California Limited Partnership)

NOTES TO FINANCIAL STATEMENTS ~~- CONTINUED~~

For the Quarterly Period Ended ~~December~~June 3130, ~~2009~~2010

(~~unaudited~~Unaudited)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued

~~“Equity in~~adjusted ~~losses~~below ~~of Local Limited Partnerships” for the periods ended December 31, 2009 and 2008 have been recorded by the Partnership~~zero. ~~Management’s~~As ~~estimate~~soon ~~for the~~as ~~nine-month period is based on either actual unaudited results reported by~~ the ~~Local~~ ~~Limited~~investment ~~Partnerships~~balance orreaches ~~historical trends in the operations of the Local Limited Partnerships. In subsequent annual financial statements~~zero, ~~upon receiving~~ the ~~actual~~related ~~annual~~costs ~~results reported by the Local Limited Partnerships, management reverses its prior estimate and records the actual results reported by the Local Limited Partnerships. Equity in losses~~ of ~~Local~~acquiring ~~Limited Partnerships allocated to~~ the ~~Partnership are not recognized to the extent that the~~ investment ~~balance~~are ~~would be adjusted below zero~~impaired. If the Local Limited Partnerships reported net income in future years, the Partnership will resume applying the equity method only after its share of such net income equals the share of net losses not recognized during the period(s) the equity method was suspended (see Note 2).

In accordance with the accounting guidance for the consolidation of variable interest entities, the Partnership determines when it should include the assets, liabilities, and activities of a variable interest entity (VIE) in its financial statements, and when it should disclose information about its relationship with a VIE. The analysis that must be performed to determine which entity should consolidate a VIE focuses on control and economic factors. A VIE is a legal structure used to conduct activities or hold assets, ~~and a~~which ~~VIE~~ must be consolidated by a company if it is the primary beneficiary because a ~~primary~~it ~~beneficiary~~has ~~absorbs~~(1) the ~~majority~~power ofto direct the ~~entity’s~~activities ~~expected losses, the majority~~ of the ~~expected~~VIE ~~residual~~that ~~returns,~~most orsignificantly ~~both.~~impact ~~The Local Limited Partnerships in which~~ the ~~Partnership invests are VIEs. However, management does not consolidate the Partnership’s interests in these~~ VIE’'s economic asperformance ~~the~~and ~~Partnership~~(2) ~~is not considered~~ the ~~primary~~obligation ~~beneficiary.~~to ~~The~~absorb ~~Partnership’s~~losses ~~balance~~or inreceive ~~its~~benefits ~~investment~~that incould ~~Local~~potentially ~~Limited~~be ~~Partnerships,~~significant ~~plus~~to the ~~risk~~VIE. ofIf ~~recapture~~multiple ofunrelated ~~tax~~parties ~~credits~~share ~~previously~~such ~~recognized~~power, onas ~~these investments~~defined, ~~represents~~no ~~its~~party ~~maximum exposure~~will ~~to loss. The Partnership may~~ be ~~subject~~required to ~~additional~~consolidate ~~losses~~the toVIE. Further, the ~~extent~~ ofguidance ~~any~~requires ~~financial~~continual ~~support~~reconsideration ~~that~~of the ~~Partnership voluntarily provides to the~~primary ~~Local~~beneficiary ~~Limited~~of ~~Partnerships~~a ~~in the future~~VIE.

~~Distributions~~Based on ~~received~~this byguidance, the Local Limited Partnerships in which the Partnership ~~are~~invests meet ~~accounted~~the ~~for~~definition asof a ~~reduction~~VIE. ofHowever, management does not consolidate the Partnership’s ~~investment~~interests in these VIEs, as it is not considered to be the primary ~~balance~~beneficiary. ~~Distributions~~ ~~received~~The ~~after~~Partnership currently records the ~~investment~~amount ~~has~~of ~~reached~~its ~~zero~~investment in ~~are~~these ~~recognized~~Local Limited Partnerships as an asset on its balance sheets, recognizes its share of partnership income~~. As~~ or losses in the statements of ~~December~~operations, 31and discloses how it accounts for material types of these investments in its financial statements. The Partnership’s balance in investment in Local Limited Partnerships, ~~2009~~plus the risk of recapture of tax credits previously recognized on these investments, ~~all~~represents its maximum exposure to loss. The Partnerhip’s exposure to loss to these Local Limited Partnerships is mitigated by the condition and financial performance of the underlying Housing Complexes as well ~~investment~~as ~~balances~~the ~~had~~strength ~~reached~~of ~~zero~~the Local General Partners and their guarantee against credit recapture.

Distributions received by the Partnership are accounted for as a reduction of the investment balance. Distributions received after the investment has reached zero are recognized as income. As of June 30, 2010 all of the investment balances had reached zero.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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.~~

reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates.

Cash and Cash Equivalents

The Partnership considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. As of June 30, 2010 and March 31, 2010, the Partnership had $5,286 and $0 in cash equivalents, respectively.

toReporting beComprehensive ~~cash equivalents. As of December 31, 2009 and March 31, 2009, the Partnership had no cash equivalents.~~Income

The Partnership had no items of other comprehensive income for all periods presented.

WNC CALIFORNIA HOUSING TAX CREDITS, L.P.

(A California Limited Partnership)

NOTES TO FINANCIAL STATEMENTS ~~- CONTINUED~~

For the Quarterly Period Ended ~~December~~June 3130, ~~2009~~2010

(~~unaudited~~Unaudited)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued

Reporting Comprehensive Income

The Partnership had no items of other comprehensive income for all periods presented.

Income Taxes

The Partnership has elected to be treated as a pass-through entity for income tax purposes and, as such, is not subject to income taxes. Rather, all items of taxable income, deductions and tax credits are passed through to and are reported by its owners on their respective income tax returns. The Partnership’s federal tax status as a pass-through entity is based on its legal status as a partnership. Accordingly, the Partnership is not required to take any tax positions in order to qualify as a pass-through entity. The Partnership is required to file and does file tax returns with the Internal Revenue Service and other taxing authorities. Accordingly, these financial statements do not reflect a provision for income taxes and the Partnership has no other tax positions which must be considered for disclosure.

reported by its owners on their respective income tax returns. The Partnership’s federal tax status as a pass-through entity is based on its legal status as a partnership. Accordingly, the Partnership is not required to take any tax positions in order to qualify as a pass-through entity. The Partnership is required to file and does file tax returns with the Internal Revenue Service and other taxing authorities. Accordingly, these financial statements do not reflect a provision for income taxes and the Partnership has no other tax positions which must be considered for disclosure.

Net Loss Per Partnership Unit

Net loss per Partnership Unit includes no dilution and is computed by dividing loss allocated to Limited Partners by the weighted average number of Partnership Units outstanding during the period. Calculation of diluted net loss per Partnership Unit is not required.

Revenue Recognition

The Partnership is entitled to receive reporting fees from the Local Limited Partnerships. The intent of the reporting fees is to offset (in part) administrative costs incurred by the Partnership in corresponding with the Local Limited Partnerships. Due to the uncertainty of the collection of these fees, the Partnership recognizes reporting fees as collections are made.

NOTE 2 - INVESTMENTS IN LOCAL LIMITED PARTNERSHIPS

As of June 30, 2010 and March 31, 2010, the Partnership owns Local Limited Partnership interests in three and four Local Limited Partnerships, respectively. All of these Local Limited Partnerships each own one Housing Complex consisting of an aggregate of 107 and 149 apartment units, respectively. The Local General Partners of the Local Limited Partnerships manage the day to day operations of the entities. Significant Local Limited Partnership business decisions require approval from the Partnership. The Partnership, as a Limited Partner, is generally entitled to 99%, as specified in the Local Limited Partnership governing agreements, of the operating profits and losses, taxable income and losses, and Low Income Housing Tax Credits of the Local Limited Partnerships.

As of the periods presented, the Partnership owns Local Limited Partnership interests in six and seven Local Limited Partnerships, respectively. All of these Local Limited Partnership’s own one Housing Complex consisting of an aggregate of 234 and 272 apartment units, respectively. The Local General Partners of the Local Limited Partnerships manage the day to day operations of the entities. Significant Local Limited Partnership business decisions require approval from the Partnership. The Partnership, as a Limited Partner, is generally entitled to 99%, as specified in the Local Limited Partnership governing agreements, of the operating profits and losses, taxable income and losses, and Low Income Housing Tax Credits of the Local Limited Partnerships.

Selected financial information for the nine months ended December 31, 2009 and 2008 from the unaudited combined condensed financial statements of the Local Limited Partnerships in which the Partnership has invested is as follows:

WNC CALIFORNIA HOUSING TAX CREDITS, L.P.

(A California Limited Partnership)

NOTES TO FINANCIAL STATEMENTS ~~- CONTINUED~~

For the Quarterly Period Ended ~~December~~June 3130, ~~2009~~2010

(~~unaudited~~Unaudited)

NOTE 2 - INVESTMENTS IN LOCAL LIMITED PARTNERSHIPS, continued

~~NOTE~~Selected financial 2information -for ~~INVESTMENTS~~the ~~IN LOCAL~~three ~~LIMITED~~months ~~PARTNERSHIPS~~ended June 30, ~~continued~~2010 and 2009 from the unaudited combined condensed financial statements of the Local Limited Partnerships in which the Partnership has invested is as follows:

COMBINED CONDENSED STATEMENTS OF OPERATIONS
				2009		2008
		2010				2009
Revenues	~~Revenues~~	$	$302,000	~~1,107,000~~	$	~~1,617,000~~$	443,000
Expenses	~~Expenses~~
Interest expense	~~Interest expense~~		39,000	~~143,000~~		~~224,000~~	57,000
Depreciation and amortization	~~Depreciation and amortization~~		89,000	~~329,000~~		~~439,000~~	120,000
Operating expenses	~~Operating expenses~~		225,000	~~770,000~~		~~1,181,000~~	319,000
Total expenses	~~Total expenses~~		353,000	~~1,242,000~~		~~1,844,000~~	496,000
Net loss	~~Net loss~~	$	$(51,000	~~(135,000~~)	$	~~(182,000)~~$	(53,000	)
Net loss allocable to the Partnership	~~Net loss allocable to the Partnership~~	$	$(51,000	~~(133,000~~)	$	~~(180,000)~~$	(53,000	)
Net loss recorded by the Partnership	~~Net loss recorded by the Partnership~~	$	$-	-	$	-$	-

Certain Local Limited Partnerships have incurred significant operating losses and/or have working capital deficiencies. In the event these Local Limited ~~Partnerships~~ Partnerships continue to incur significant operating losses, additional capital ~~contributions~~ contributions by the Partnership may be required to sustain operations of such ~~Local~~ ~~Limited Partnerships. If additional capital contributions are not made when they are required, the Partnership's investments in certain of such~~ Local Limited ~~Partnerships could be impaired, and the loss and recapture of~~ ~~the related Low Income Housing Tax Credits could occur~~Partnerships.

NOTE 3 - RELATED PARTY TRANSACTIONS

Under the terms of the Partnership Agreement, the Partnership has paid or is obligated to the General Partner or its affiliates the following fees:

(a) An annual asset management fee equal to 0.5% of the invested assets of the Partnership, as defined. “Invested Assets” means the sum of the Partnership’s investment in Local Limited Partnership interests and the Partnership’s Allocable share of mortgage loans on and other debts related to the Housing Complexes owned by such Local Limited Partnerships. Fees of $497,~~312~~733 and $6817,~~949~~855 were incurred during the ~~nine~~three months ended ~~December~~June 3130, ~~2009~~2010 and ~~2008~~2009, respectively. The Partnership paid the General Partners and or their affiliates $293,~~500~~000 and $772,~~350~~500 of those fees during the ~~nine~~three months ended ~~December~~June 3130, ~~2009~~2010 and ~~2008~~2009, respectively.

(b) The Partnership reimburses the General Partner or its affiliates for operating expenses incurred by the Partnership and paid for by the General Partner or its affiliates on behalf of the Partnership. Operating expense reimbursements were $531,~~673~~746 and $9711,~~658~~123 during the ~~nine~~three months ended ~~December~~June 3130, ~~2009~~2010 and ~~2008~~2009, respectively.

(c) 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 preferred return of 14% through December 31, 2006 and 6% thereafter (as defined in the Partnership Agreement) and is payable only if the General Partner or its affiliates render services in the sales effort. No such fees were incurred for all periods presented.

WNC CALIFORNIA HOUSING TAX CREDITS, L.P.

(A California Limited Partnership)

NOTES TO FINANCIAL STATEMENTS ~~- CONTINUED~~

For the Quarterly Period Ended ~~December~~June 3130, ~~2009~~2010

(~~unaudited~~Unaudited)

NOTE 3 - RELATED PARTY TRANSACTIONS, continued

The accrued fees and expenses due to the General ~~Partner~~Partners and affiliates consist of the following at:

		December 31, 2009		March 31, 2009
		June 30, 2010			March 31, 2010
Expenses paid by the General Partner or affiliates on behalf of the Partnership	$	90,538	$	56,893
Expenses paid by the General Partners or affiliates on behalf of the Partnership		$	3,341		$	-
Asset management fee payable		1,885,479		1,838,667
Accrued asset management fees			1,813,228			1,898,495
Total	$	~~1,976,017~~$	$1,816,569	~~1,895,560~~	$	1,898,495

The General ~~Partner~~Partners and/or its affiliates do not anticipate that these accrued fees will be paid until such time as capital reserves are in excess of future foreseeable working capital requirements of the Partnership.

NOTE 4 – SUBSEQUENT EVENTS

Events that occur after the balance sheet date but before the financial statements were available to be issued must be evaluated for recognition or disclosure. The effects of subsequent events that provide evidence about conditions that existed at the balance sheet date are recognized in the accompanying financial statements. Subsequent events, which provide evidence about conditions that existed after the balance sheet date, require disclosure in the accompanying notes. Management evaluated the activity of the Partnership through (FILING DATE) and concluded that no subsequent events have occurred that would require recognition in the financial.

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

Forward-Looking Statements

With the exception of the discussion regarding historical information, this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other discussions elsewhere in this Form 10-Q contain forward looking statements. Such statements are based on current expectations subject to uncertainties and other factors which may involve known and unknown risks that could cause actual results of operations to differ materially from those projected or implied. Further, certain forward-looking statements are based upon assumptions about future events which may not prove to be accurate.

Risks and uncertainties inherent in forward looking statements include, but are not limited to, the Partnership’s future cash flows and ability to obtain sufficient financing, level of operating expenses, conditions in the Low Income Housing Tax Credit property market and the economy in general, as well as legal proceedings. Historical results are not necessarily indicative of the operating results for any future period.

Subsequent written and oral forward looking statements attributable to the Partnership or persons acting on its behalf are expressly qualified in their entirety by cautionary statements in this Form 10-Q and in other reports filed with the Securities and Exchange Commission. ~~The following discussion should be read in conjunction with the condensed unaudited financial statements and the notes thereto included elsewhere in this filing.~~

The following discussion and analysis compares the results of operations for the three ~~and nine~~ months ended ~~December~~June 3130, ~~2009~~2010 and ~~2008~~2009, and should be read in ~~conjunction~~ conjunction with the condensed unaudited financial statements and accompanying ~~notes~~ notes included within this report.

Financial Condition

The Partnership’s assets at ~~December~~June 3130, ~~2009~~2010 consisted of $3491,000 in cash and cash equivalents. Liabilities at ~~December~~June 3130, ~~2009~~2010 consisted of $1,~~976~~817,000 of accrued ~~asset management~~ fees and ~~amount~~expenses due ~~for~~to ~~expenses paid by~~ the General Partner and~~/or~~ its affiliates.

Results of Operations

Three Months Ended ~~December~~June 3130, ~~2009~~2010 Compared to ~~the~~ Three Months Ended ~~December~~June 3130, ~~2008~~2009. The Partnership’s net income ~~loss~~ for the three months ended ~~December~~June 3130, ~~2009~~2010 was $~~(20~~127,000), reflecting aan increase ~~decrease~~ of ~~approximately~~ $~~(38~~159,000) from the $18(32,000) net ~~income~~ loss experienced for the three months ended ~~December~~June 3130, ~~2008~~2009. The ~~decrease~~increase in net ~~loss~~income iswas primarily due to ~~the~~ a $8140,000 ~~decrease~~gain inon ~~Asset~~sale ~~management~~of ~~fees.~~a ~~These~~Local ~~fees~~Limited ~~are~~Partnership for the three months ended ~~calculated~~June ~~based~~30, on2010 ~~the~~compared ~~Invested~~to ~~Assets.~~no Asgain on sale of Local Limited Partnerships ~~are~~for ~~sold,~~ the three ~~Invested~~months ~~Assets~~ended ~~decrease~~June ~~thereby~~30, ~~decreasing~~2009. ~~the~~The ~~asset~~disposition ~~management~~of ~~fees~~Local ~~that~~Limited Partnerships ~~are~~will ~~incurred. There~~vary ~~was~~from ~~also~~period ato ~~decrease~~period ofdepending ~~approximately $(1,000)~~on inthe ~~distribution~~Housing ~~income~~Complexes asthat ~~distribution~~have been ~~income~~identified for disposition and ~~reporting~~the ~~fees~~closing dates of such transactions. The ~~fluctuate~~increase ~~from~~in ~~year~~net toincome ~~year~~is ~~due~~also attributable to ~~the~~a ~~fact~~$10,000 ~~that~~decrease ~~Local~~of ~~Limited~~asset management ~~Partnerships~~fees. ~~pay those~~These fees toare ~~the~~calculated ~~Partnership~~based ~~when~~on the invested assets. As Local Limited ~~Partnership’s~~Partnerships ~~cash~~are ~~flow will~~sold, ~~allow~~the ~~for~~invested ~~the~~assets ~~payment.~~decrease, ~~There~~thereby decreasing ~~was~~the noasset ~~gain~~management onfees ~~sale~~incurred. As of ~~investment~~June in30, ~~Local~~2009 there were seven Local Limited Partnerships ~~for~~in the ~~three~~Partnership ~~months~~compared ~~ended~~to ~~December~~only ~~31,~~three ~~2009~~as ~~compared to~~of ~~$45~~June 30,~~000~~ ~~gain~~2010 onaccordingly ~~sale~~the ofinvested ~~investment~~assets incalculation ~~Local~~decreased. ~~Limited~~There ~~Partnerships~~was also ~~for~~a ~~the~~decrease ~~three months~~of ~~ended~~$7,000 ~~December~~in ~~31,~~legal ~~2008~~and accounting fees. The ~~Partnership~~decrease is in ~~the disposition~~legal ~~phase~~and ~~but~~accounting ~~the~~fees ~~number~~was ofdue ~~dispositions~~largely ~~will~~to ~~vary~~the ~~from~~decrease ~~year~~of tolegal ~~year~~expenses ~~depending~~related onto the ~~economic~~potential ~~conditions. The~~disposition ~~gain~~of ~~recorded~~properties. byAlong with the ~~Partnership~~decrease ~~can~~in asset ~~vary~~management ~~depending~~fees onand ~~the~~legal ~~sales prices~~ and ~~values~~accounting offees, the ~~Housing~~other ~~Complexes~~operating ~~that~~expense ~~are~~was ~~being~~decreased ~~sold~~by $3,000.

~~Nine Months Ended December 31, 2009~~Liquidity Compared to the Nine Months Ended December 31, 2008. The Partnership’s net loss for the nine months ended December 31, 2009 was $(96,000), reflecting an increase of approximately $(58,000) from the $(38,000) net loss experienced for the nine months ended December 31, 2008. The increase in primarily due to an increase of $(70,000) in legal and ~~accounting fees~~Capital due to the timing of the accounting work being performed. There was a decrease of $20,000 in asset management fees. These fees are calculated based on the Invested Assets. As Local Limited Partnerships are sold, the Invested Assets decrease thereby decreasing the asset management fees that are incurred. The distribution income and reporting fees (decreased) increased by approximately $(6,000) and $1,000, respectively for the nine months ended December 31, 2009. Distribution income and reporting feesResources

Three Months Ended June 30, 2010 Compared to Three Months Ended June 30, 2009. Net increase in cash during the three months ended June 30, 2010 was $48,000 compared to a net decrease in cash for the three months ended June 30, 2009 of $(15,000). The change of $63,000 is due primarily to the fact that during the three months ended June 30, 2010 the Partnership received $140,000 in proceeds from the sale of a Local Limited Partnership compared to no proceeds from any sales during the three months ended June 30, 2009. During the three months ended June 30, 2010

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

~~can~~the ~~fluctuate~~Partnership ~~from~~paid ~~year~~$(93,000) toand ~~year~~$(2,000) ~~due~~ to the ~~fact~~General ~~that~~Partner ~~Local~~or ~~Limited~~an ~~Partnerships pay~~affiliate ~~those~~for ~~fees~~accrued toasset ~~the~~management ~~Partnership~~fees ~~when~~and ~~the~~reimbursement ~~Local~~of ~~Limited~~operating ~~Partnership’s~~expenses ~~cash flow~~paid ~~will~~on ~~allow~~behalf ~~for~~of the ~~payment.~~Partnership, ~~There~~respectively, ~~was~~compared ato $40(3,000) ~~gain~~and ~~on sale of investment in~~$(13,000) ~~Local~~paid ~~Limited Partnerships~~ for ~~the~~accrued ~~nine~~asset ~~months~~management ~~ended~~fees ~~December~~and ~~31,~~reimbursements ~~2009~~due ~~compared~~ to ~~$45,000~~the ~~gain~~General Partner onor ~~sale~~affiliate, ofrespectively, ~~investment in Local Limited Partnerships~~ for the ~~nine~~ three months ended ~~December~~June 3130, ~~2008~~2009. ~~The~~ Each quarter, the Partnership isevaluates inits ~~the~~cash ~~disposition~~position and determines if ~~phase~~payments ~~but~~are ~~the~~going ~~number~~to ofbe ~~dispositions~~made ~~will~~to ~~vary~~the ~~from~~General ~~year~~Partner toand/or ~~year~~affiliates. ~~depending~~Due onto the ~~economic~~cash ~~conditions. The~~received ~~gain~~for ~~recorded~~the bydisposition during the ~~Partnership~~quarter ~~can vary~~ended ~~depending~~June on30, 2010 the Partnership ~~sales~~determined ~~prices~~that ~~and~~more ~~values~~accrued ofasset ~~the~~management ~~Housing~~fees ~~Complexes~~could ~~that~~be ~~are~~paid ~~being~~with ~~sold~~the cash proceeds.

~~Liquidity~~During the three months ended June 30, 2010, accrued payables, which consist primarily of related party asset management fees and ~~Capital~~advances ~~Resources~~due to the General Partner, decreased by $82,000. The General Partner does not anticipate that these accrued fees and advances will be paid until such time as capital reserves are in excess of foreseeable working capital requirements of the Partnership.

~~Nine Months Ended December 31, 2009 Compared to Nine Months Ended December 31, 2008.~~ The ~~net~~ ~~decrease~~Partnership inexpects ~~cash~~its ~~during~~future ~~the nine months ended December 31, 2009 was $(15,000) compared to a net decrease in~~ cash ~~for the nine months ended December 31~~flows, ~~2008 of~~together ~~$(123,000). The~~with ~~variance~~its in net ~~change in cash is largely due to~~available ~~the~~assets ~~fact~~as ~~that~~of ~~during~~June ~~the nine months ended December 31~~30, ~~2009 the Partnership paid $(3~~2010,~~000)~~ ~~of accrued asset management fees~~ to ~~the~~be ~~General~~insufficient ~~Partners or its affiliates compared~~ to ~~$(77,000)~~meet ~~paid~~all ~~during~~currently ~~the nine months ended December 31,~~foreseeable ~~2008~~future ~~along~~cash ~~with~~requirements. ~~$(54,000)~~Associates ~~paid~~has agreed to ~~the~~continue ~~General~~providing ~~Partners for reimbursements of~~advances ~~expenses~~sufficient ~~paid~~enough ~~by the General Partner on behalf of the Partnership during the nine months ended December 31, 2009 compared~~ to ~~$(98,000)~~fund ~~paid during~~ the ~~nine months~~operations ~~ended~~and ~~December~~working ~~31,~~capital ~~2008. In~~requirements ~~addition,~~of ~~during~~ the ~~nine months~~ ~~ended December 31, 2009 the~~ Partnership ~~received~~through ~~$40,000~~August ~~in proceeds from the sale of one Local Limited Partnership compared to $45,000 in proceeds received from sales during the nine months ended December~~ 31, ~~2008~~2011.

During the nine months ended December 31, 2009, accrued payables, which consist primarily of related party management fees and advances due to the General Partner, increased by $80,000. The General Partner does not anticipate that the balance of the accrued fees and advances will be paid until such time as capital reserves are in excess of foreseeable working capital requirements of the Partnership.

The Partnership expects its future cash flows, together with its net available assets as of December 31, 2009, to be insufficient to meet all currently foreseeable future cash requirements. Associates has agreed to continue providing advances sufficient enough to fund the operations and working capital requirements of the Partnership through February 28, 2011.

Recent Accounting Changes

~~The~~In ~~Partnership~~September ~~has~~2006, ~~elected~~the toFinancial beAccounting ~~treated~~Standards asBoard a(the ~~pass-through~~"FASB") ~~entity~~issued accounting guidance for ~~income~~Fair ~~tax purposes~~Value ~~and~~Measurements, aswhich ~~such~~defines fair value, establishes isa ~~not~~framework ~~subject~~for tomeasuring ~~income~~fair ~~taxes.~~value ~~Rather,~~and ~~all~~expands ~~items~~disclosure ofabout ~~taxable~~fair ~~income,~~value ~~deductions~~measurements. ~~and~~This ~~tax~~guidance ~~credits~~is ~~are~~effective ~~passed~~for ~~through~~financial ~~to and are~~statements ~~reported~~issued byfor ~~its~~fiscal ~~owners~~years onbeginning ~~their~~after ~~respective~~November ~~income~~15, ~~tax~~2007 ~~returns.~~and ~~The~~shall ~~Partnership’s~~be applied ~~federal~~prospectively ~~tax~~except ~~status~~for asvery alimited ~~pass-through~~transactions. ~~entity~~In isFebruary ~~based~~2008, onthe ~~its~~FASB delayed ~~legal~~for ~~status~~one asyear ~~a partnership.~~implementation ~~Accordingly,~~of the ~~Partnership~~guidance isas ~~not~~it ~~required~~pertains to ~~take~~certain non-financial ~~any~~assets ~~tax positions~~and inliabilities. ~~order~~The toPartnership ~~qualify~~adopted asU.S. agenerally accepted ~~pass-through~~accounting ~~entity.~~principles ~~The~~("GAAP") ~~Partnership~~for ~~is required~~Fair toValue ~~file~~Measurements ~~and~~effective April ~~does~~1, ~~file~~2008, ~~tax~~except ~~returns~~as ~~with~~it ~~the~~applies ~~Internal~~to ~~Revenue~~those ~~Service~~non-financial assets and ~~other~~liabilities, ~~taxing~~for ~~authorities.~~which ~~Accordingly,~~the ~~these~~effective ~~financial~~date ~~statements~~was doApril ~~not~~1, ~~reflect a~~2009. ~~provision~~The ~~for~~Partnership ~~income~~has determined ~~taxes~~that ~~and~~adoption ~~the~~of ~~Partnership~~this guidance has no ~~other~~material ~~tax~~impact ~~positions~~on the ~~which~~Partnership’s ~~must~~financial ~~be considered for disclosure~~statements.

~~one year~~In ~~implementation~~November of2008, the FASB issued accounting guidance ason itEquity ~~pertains~~Method toInvestment Accounting ~~certain~~Considerations ~~non~~that addresses how the initial carrying value of an equity method investment should be determined, how an impairment assessment of an underlying indefinite-~~financial~~lived ~~assets~~intangible asset of an equity method investment should be performed, how an equity method investee’s issuance of shares should be accounted for, and ~~liabilities~~ how to account for a change in an investment from the equity method to the cost method. This guidance is effective in fiscal years beginning on or after December 15, 2008, and interim periods within those fiscal years. The Partnership ~~does~~adopted ~~not~~the ~~anticipate~~guidance ~~this~~for ~~guidance~~the tointerim ~~have~~quarterly period beginning April 1, 2009. The impact of adopting it does not have a material impact on the Partnership’s financial ~~statements~~condition or results of operations.

In April 2009, the FASB issued accounting guidance for Interim Disclosures about Fair Value of Financial Instruments. This requires disclosure about the method and significant assumptions used to establish the fair value of financial instruments for interim reporting periods as well as annual statements. It became effective for as of and for the interim period ended June 30, 2009 and has no impact on the Partnership’s financial condition or results of operations.

In May 2009, the FASB issued guidance regarding subsequent events, which was subsequently updated in February 2010. This guidance established general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. In particular, this guidance sets forth the period after the balance sheet date during which management of a reporting entity should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements, the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements, and the disclosures that an entity should make about events or transactions that occurred after the balance sheet date. This guidance was effective for financial statements issued for fiscal years and interim periods ending after June 15, 2009, and was therefore adopted by the Partnership for the quarter ended June 30, 2009. The adoption did not have a significant impact on the subsequent

~~In April~~Item ~~2009,~~2. ~~the~~Management's ~~FASB~~Discussion ~~issued~~and ~~GAAP~~Analysis ~~for Interim Disclosures about Fair Value~~ of Financial ~~Instruments. This~~ ~~requires~~Condition ~~disclosure about the method~~ and ~~significant~~ ~~assumptions~~Results ~~used to establish the fair value~~ of ~~financial~~ ~~instruments for interim reporting periods as well as annual statements. It was effective for the Partnership as of June 30~~Operations, ~~2009 and has no impact on the Partnership’s financial condition or results of operations.~~continued

~~In May~~events ~~2009,~~that the ~~FASB~~Partnership ~~issued~~reports, ~~GAAP~~either ~~for~~through ~~Subsequent~~recognition ~~Events.~~or Itdisclosure, ~~establishes~~in ~~general~~the ~~standards~~financial ofstatements. ~~accounting~~In ~~for~~February ~~and~~2010, ~~disclosure~~the ofFASB ~~events~~amended ~~that~~its ~~occur~~guidance ~~after the~~on ~~balance~~subsequent ~~sheet~~events ~~date~~to ~~but~~remove ~~before~~the ~~financial~~requirement ~~statements~~to ~~are~~disclose ~~issued~~the ordate ~~are~~through ~~available~~which toan beentity ~~issued. It~~has isevaluated ~~effective~~subsequent ~~for~~events, ~~the~~alleviating ~~Partnership~~conflicts aswith ofcurrent SEC ~~September~~guidance. ~~30, 2009,~~This ~~and~~amendment ~~has~~was noeffective ~~material~~immediately ~~impact~~and ontherefore the Partnership’s ~~financial~~did ~~condition~~not ~~or results~~include ofthe ~~operations~~disclosure in this Form 10-Q.

In ~~November~~ ~~2008~~June 2009, the FASB issued ~~GAAP~~the onAccounting ~~Equity~~Standards ~~Method~~Codification ~~Investment Accounting~~(Codification). ~~Considerations~~Effective July 1, ~~which~~2009, ~~clarifies~~the Codification is the single source of authoritative accounting ~~for~~principles ~~how~~recognized by the FASB to ~~account~~be ~~for~~applied ~~certain~~by non-governmental ~~transactions~~entities ~~and~~in ~~impairment~~the ~~considerations~~preparation ~~involving~~of ~~equity~~financial ~~method investments~~statements in conformity with GAAP. ~~This~~ ~~guidance~~The Codification is ~~effective~~intended into ~~fiscal~~reorganize, ~~years~~rather ~~beginning~~than ~~on or~~change, ~~after~~existing ~~December 15~~GAAP. Accordingly, ~~2008,~~ ~~and~~all ~~interim~~references ~~periods~~to ~~within~~currently ~~those~~existing ~~fiscal years.~~GAAP ~~The~~have ~~Partnership~~been ~~adopted~~removed ~~the~~and have ~~guidance~~been ~~for~~replaced ~~the~~with ~~interim~~plain ~~quarterly~~English ~~period beginning~~explanations ~~April~~of 1,the ~~2009~~Partnership’s accounting policies. The ~~impact~~adoption of ~~adopting~~the itCodification ~~does~~did not have a material impact on the Partnership’s financial ~~condition~~position or results of operations.

In June 2009, the FASB issued an amendment to the accounting and disclosure requirements for the consolidation of variable interest entities (VIEs). The amended guidance modifies the consolidation model to one based on control and economics, and replaces the current quantitative primary beneficiary analysis with a qualitative analysis. The primary beneficiary of a VIE will be the entity that has (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. If multiple unrelated parties share such power, as defined, no party will be required to consolidate the VIE. Further, the amended guidance requires continual reconsideration of the primary beneficiary of a VIE and adds an additional reconsideration event for determination of whether an entity is a VIE. Additionally, the amendment requires enhanced and expanded disclosures around VIEs. This amendment is effective for fiscal years beginning after November 15, 2009. The adoption of this guidance on April 1, 2010 is not expected to have a material effect on the Partnership’s financial statements.

In June 2009, the FASB issued the Accounting Standards Codification (Codification). Effective July 1, 2009, the Codification is the single source of authoritative accounting principles recognized by the FASB to be applied by non-governmental entities in the preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP). The Codification is intended to reorganize, rather than change, existing GAAP. Accordingly, all references to currently existing GAAP have been removed and have been replaced with plain English explanations of the Partnership’s accounting policies. The adoption of the Codification did not have a material impact on the Partnership’s financial position or results of operations.

Item 3. Quantitative and Qualitative Disclosures About Market Risks

NOT APPLICABLE

Item 4T. Controls and Procedures

(a) Disclosure controls and procedures

As of the end of the period covered by this report, the Partnership’s General Partner, under the supervision and with the participation of the Chief Executive Officer and Chief Financial Officer of Associates, carried out an evaluation of the effectiveness of the Partnership’s “disclosure controls and procedures” as defined in Securities Exchange Act of 1934 Rule 13a-15 and 15d-15. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this report, the Partnership’s disclosure controls and procedures were not effective to ensure that material information required to be disclosed in the Partnership’s periodic report filings with SEC is recorded, processed, summarized and reported within the time period specified by the SEC’s rules and forms, consistent with the definition of “disclosure controls and procedures” under the Securities Exchange Act of 1934.

The Partnership must rely on the Local Limited Partnerships to provide the Partnership with certain information necessary to the timely filing of the Partnership’s periodic reports. Factors in the accounting at

~~The~~Item ~~Partnership must rely on the Local Limited Partnerships to provide the Partnership with certain information necessary to the timely filing of the Partnership’s periodic reports~~4T. Controls ~~Factors~~and ~~in the accounting at the Local Limited Partnerships have caused delays in the provision of such information during past reporting periods~~Procedures, ~~and resulted in the Partnership’s inability to file its periodic reports in a timely manner.~~continued

the Local Limited Partnerships have caused delays in the provision of such information during past reporting periods, and resulted in the Partnership’s inability to file its periodic reports in a timely manner.

Once the Partnership has received the necessary information from the Local Limited Partnerships, the Chief Executive Officer and the Chief Financial Officer of Associates believe that the material information required to be disclosed in the Partnership’s periodic report filings with SEC is effectively recorded, processed, summarized and reported, albeit not in a timely manner. Going forward, the Partnership will use the means reasonably within its power to impose procedures designed to obtain from the Local Limited Partnerships the information necessary to the timely filing of the Partnership’s periodic reports.

(b) Changes in internal controls

There were no changes in the Partnership’s internal control over financial reporting that occurred during the quarter ended ~~December~~June 3130, ~~2009~~2010 that materially affected, or are reasonably likely to materially affect, the Partnership’s ~~internal~~ internal control over financial reporting.

Part II. Other Information

Item 1. Legal Proceedings

NONE

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

NONE

Item 3. Defaults Upon Senior Securities

NONE

Item 4. ~~Submission~~(Removed ofand ~~Matters to a Vote of Security Holders~~Reserved)

NONE

Item 5. Other Information

NONE

Item 6. Exhibits

31.1 Certification of the ~~Principal~~Chief Executive Officer pursuant to Rule 13a-14 ~~and~~or 15d-14, as adopted pursuant to section ~~302 of the Sarbanes-Oxley Act of 2002. (filed herewith)~~

~~31.2 Certification~~ 302 of the ~~Principal Financial Officer pursuant to Rule 13a~~Sarbanes-14Oxley ~~and~~Act ~~15d-14,~~of as2002. (filed ~~adopted pursuant to~~herewith)

~~section~~31.2 ~~302~~Certification of the ~~Sarbanes~~Chief Financial Officer pursuant to Rule 13a-~~Oxley~~14 ~~Act~~or of15d-14, as ~~2002. (filed~~adopted ~~herewith)~~pursuant to section 302

of the Sarbanes-Oxley Act of 2002. (filed herewith)

32.1 Section 1350 Certification of the Chief Executive Officer. (filed herewith)

32.2 Section 1350 Certification of the Chief Financial Officer. (filed herewith)

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, L.P.

By: WNC & ~~ASSOCIATES~~Associates, ~~INC~~Inc. General Partner

By: /s/ Wilfred N. Cooper, Jr.

Wilfred N. Cooper, Jr.

President and Chief Executive Officer of WNC & Associates, Inc.

Date: ~~February~~ August 166, 2010

By: /s/ Melanie R. Wenk

Melanie R. Wenk

Vice~~-President~~ -President – Chief Financial Officer of WNC & Associates, Inc.

Date: ~~February~~ August 166, 2010

Filing Compare · WNC CALIFORNIA HOUSING TAX CREDITS LP