UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

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

For the fiscal year ended March 31, ~~2013~~2015

~~[ ]~~ 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: 0-26048

WNC HOUSING TAX CREDIT FUND IV, L.P., Series 1

(Exact name of registrant as specified in its charter)

California	33-0563307	~~33-0563307~~
(State or other jurisdiction of		(I.R.S. Employer
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
incorporation or organization)		Identification No.)
17782 Sky Park Circle,
Irvine, CA		92614-6404
(Address of principal executive offices)		(zip code)

17782 Sky Park Circle,
Irvine, CA	92614-6404
(Address of principal executive offices)	(zip code)

(714) 662-5565

(Telephone Number)

Securities registered pursuant to Section 12(b) of the Act:

NONE

Securities registered pursuant to section 12(g) of the Act:

UNITS OF LIMITED PARTNERSHIP INTEREST

(Title of Class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ~~Yes~~Yes_____ ~~[ ] No [X]~~No___X__

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. ~~Yes~~Yes_____ ~~[ ]~~ No ~~[X]~~___X__

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~~Yes___X__ ~~[X] No [ ]~~No_____

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, 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~~Yes__X___ ~~[X]~~ No ~~[ ]~~_____

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’'s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ~~[X]~~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 definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated ~~filer~~filer___ ~~[ ]~~ Accelerated ~~filer~~filer___ ~~[ ]~~ Non-accelerated ~~filer~~ ~~[X]~~ filer___X__ Smaller reporting ~~company [ ]~~company_____

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ~~Yes~~Yes____ ~~[ ]~~ No ~~[X]~~__X__

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter.

INAPPLICABLE

DOCUMENTS INCORPORATED BY REFERENCE

List hereunder the following documents if incorporated by reference and the Part of the Form 10-K (e.g., Part I, Part II, etc.) into which the document is incorporated: (1) Any annual report to security holders; (2) Any proxy or information statement; and (3) Any prospectus filed pursuant to Rule 424(b) or (c) under the Securities Act of 1933. The listed documents should be clearly described for identification purposes (e.g., annual report to security holders for fiscal year ended December 24, 1980).

NONE

~~TABLE OF~~Table ~~CONTENTS~~of Contents

		~~Page~~	Page
Part I
Item 1.	Business	3	3
Item 1A.	Risk Factors	7	6
Item 1B.	Unresolved Staff Comments	15	13
Item 2.	Properties	15	13
Item 3.	Legal Proceedings	20	17
Item 4.	Mine Safety Disclosures	20	17
Part II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	20	18
Item 6.	Selected Financial Data	21
Item 5b.	Use of Proceeds		18
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 5c.	Purchases of Equity Securities by the Issuer and Affiliated Purchasers		18
Item 7A.	Quantitative and Qualitative Disclosures Above Market Risk	27
Item 6.	Selected Financial Data		19
Item 8.	Financial Statements and Supplementary Data	28
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		21
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	29
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk		25
Item 9A.	Controls and Procedures	29
Item 8.	Financial Statements and Supplementary Data		25
Item 9B.	Other Information	30
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure		43
Part III
Item 9A.	Controls and Procedures		43
Item 10.	Directors, Executive Officers and Corporate Governance	30
Item 9B.	Other Information		44
Item 11.	Executive Compensation	33
Part III
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	35
Item 10.	Directors, Executive Officers and Corporate Governance		45
Item 13.	Certain Relationships and Related Transactions, and Director Independence	35
Item 11.	Executive Compensation		48
Item 14.	Principal Accountant Fees and Services	36
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters		50
Part IV
Item 13.	Certain Relationships and Related Transactions, and Director Independence		50
Item 15.	Exhibits and Financial Statement Schedules	37
Item 14.	Principal Accountant Fees and Services		50
Signatures		47
Part IV
Item 15.	Exhibits and Financial Statement Schedules		51
Signatures			59

PART I.

Item 1. Business

Organization

WNC Housing Tax Credit Fund IV, L.P., Series 1 (the “Partnership”) is a California Limited Partnership formed under the laws of the State of California on May 4, 1993 and commenced operations on October 20, 1993. 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 Complex. Each Local Limited Partnership is governed by its agreement of limited partnership (the “Local Limited Partnership Agreement”).

The general partner of the Partnership is WNC Tax Credit Partners IV, L.P. (“TCP IV”’ or the “General Partner”). The General Partner of TCP IV is WNC & Associates, Inc. (“Associates”). The chairman and the president of Associates owns all of the outstanding stock of Associates. The business of the Partnership is conducted primarily through the General Partner, as the Partnership has no employees of its own.

Pursuant to a registration statement filed with the Securities and Exchange Commission on October 20, 1993, the Partnership commenced a public offering of 10,000 Units of Limited Partnership Interest (“"Partnership Units”") at a price of $1,000 per Partnership Unit. As of the close of the public offering on July 19, 1994 a total of 10,000 Partnership Units representing $10,000,000 had been sold. Holders of Partnership Units are referred to herein as “Limited Partners”. As of March 31, ~~2013~~2015 and 2014, a total of 9,~~962~~939 Partnership Units remains outstanding.

The Partnership shall continue in full force and effect until December 31, 2050 unless terminated prior to that date pursuant to the Partnership Agreement (as defined below) or law.

Description of Business

The Partnership’'s principal business objective is to provide its Limited Partners with Low Income Housing Tax Credits. The Partnership’'s principal business therefore consists of investing as a limited partner or non-managing member in Local Limited Partnerships each of which will own and operate a Housing Complex which will qualify for the Low Income Housing Tax Credits. In general, under Section 42 of the Internal Revenue Code, an owner of low income housing can receive the Low Income Housing Tax Credits to be used to reduce Federal taxes otherwise due in each year of a ten-year credit period. Each Housing Complex is subject to a 15-year compliance period (the “Compliance Period”), and under state law may have to be maintained as low income housing for 30 or more years.

As a consequence of the provisions of tax law in effect for dispositions of buildings prior to August 2008, in order to avoid recapture of Low Income Housing Credits, the Partnership expected that it would not dispose of its interests in Local Limited Partnerships (“Local Limited Partnership Interests”) or approve the sale by any Local Limited Partnership of its Housing Complex prior to the end of the applicable Compliance Period. That provision of law was amended in 2008 (i) to provide that there would be no recapture on sale of a Low Income Housing Tax Credit building during the Compliance Period if it were reasonable to expect at the time of sale that the building would continue to be operated as qualified low income housing (see “Exit Strategy” below) and (ii) to eliminate the possibility of posting a bond against potential recapture. The Partnership is not seeking to sell its Local Limited Partnership Interests. And, because of (i) the nature of the Housing Complexes and the Local Limited Partnership Interests, (ii) the difficulty of predicting the resale market for low-income housing, (iii) the current economy, and (iv) the ability of lenders to disapprove of transfer, it is not possible at this time to predict when the liquidation of the Partnership’'s assets and the disposition of the proceeds, if any, in accordance with the Partnership’'s Agreement of Limited Partnership dated May 4, 1993 (the “"Partnership Agreement”"), would occur. Furthermore, the ~~recent~~ codification of the economic substance doctrine as part of 2010 legislation has created some uncertainty about the deductibility of losses from low income housing that is not generating Low Income Housing Tax Credits, and this could have an adverse effect on the resale market for Housing Complexes and Local Limited Partnership Interests. Until a Local Limited Partnership Interest or the related Housing Complex is sold, it is anticipated that the Local General Partner would continue to operate such Housing Complex. Notwithstanding the preceding, circumstances beyond the control of the General Partner or the Local General Partners may occur during the ten-year credit delivery period and/or the Compliance Period, which would require the Partnership to approve the disposition of a Housing Complex prior to the end thereof, possibly resulting in recapture of Low Income Housing Tax Credits.

The Partnership invested in twenty -one Local Limited Partnerships, ~~sixteen~~nineteen of which have been sold or otherwise disposed of as of March 31, ~~2013~~2015. Each of these Local Limited Partnerships owns a single Housing Complex, ~~that~~all ~~was~~of which were eligible for the Low Income Housing Tax Credits. Certain Local Limited Partnerships may also benefit from additional government programs promoting low- or moderate-income housing.

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 have completed their Compliance Periods.

Upon the sale of a Local Limited Partnership Interest or Housing Complex after the end of the Compliance Period, there would be no recapture of Low Income Housing Tax Credits. All remaining Local Limited Partnerships have completed their 15-year Compliance Periods.

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, Partnership cash flow, 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 or the applicable Local Limited Partnership Interests. The objective is to wind down the Partnership asafter 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 or the applicable Local Limited Partnership Interests continues to be evaluated, the dissolution of the Partnership was not imminent as of March 31, ~~2013~~2015.

The proceeds from the disposition of any of the 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 partners of the Local Limited Partnership, including the Partnership, in accordance with the terms of the particular Local Limited Partnership Agreement. 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, as the proceeds first would be used to pay Partnership obligations and funding of reserves.

OnThe ~~March~~sale 1,of ~~2011,~~a ~~the~~Housing ~~Partnership~~Complex ~~filed~~may ~~preliminary consent~~be ~~solicitation~~subject ~~materials~~to ~~with~~other ~~the~~restrictions ~~Securities~~ and ~~Exchange~~obligations. Accordingly, ~~Commission~~there ~~(“SEC”)~~can ~~regarding~~be ~~the~~no ~~adoption~~assurance ofthat a ~~plan of~~Local ~~liquidation. Definitive materials were filed with the SEC on April 1, 2011. Materials were disseminated to the~~ Limited ~~Partners on April 8, 2011. The~~ Partnership ~~sought~~will ~~approval~~be able to ~~have~~sell ~~a formal plan of liquidation of selling~~ its ~~limited partnership interests or selling the underlying~~ Housing ~~Complexes of each of the Local Limited Partnerships~~Complex. Even Onif ~~June~~it 1does so, ~~2011~~there ~~the~~can ~~Partnership~~be ~~received the~~no ~~majority~~assurance ~~vote~~that inany ~~favor~~amounts of ~~the~~cash ~~plan~~will ~~for~~be ~~dissolution.~~distributed ~~Therefore, the Partnership is engaging third party appraisers~~ to ~~appraise several or all of~~ the ~~Local~~ Limited ~~Partnerships~~Partners, inas ~~this Partnership. The appraisal is one of~~ the ~~preliminary~~proceeds ~~steps~~first ~~that~~would ~~need to~~ be ~~completed~~used ~~in order~~ to ~~move~~pay ~~forward~~Partnership ~~with~~obligations ~~the~~and ~~approved~~to ~~liquidation~~fund ~~plan~~reserves. ~~The expense incurred for the appraisals~~ Similarly, orthere ~~any~~can ~~other disposition~~be ~~related~~no ~~expenses~~assurance that the Partnership ~~incurs, are being capitalized and~~ will ~~remain~~be onable ~~the~~to ~~balance~~sell ~~sheets~~its ~~until the respective~~ Local Limited Partnership isInterests, ~~sold.~~or Atthat ~~the~~cash ~~time~~therefrom ofwould ~~disposition the capitalized costs will~~ be ~~netted~~available ~~with~~for ~~any~~distribution ~~cash proceeds that are received in order~~ to ~~calculate~~ the ~~gain~~Limited ~~or loss on the disposition~~Partners.

4On March 1, 2011, the Partnership filed preliminary consent solicitation materials with the Securities and Exchange Commission (“SEC”) regarding the adoption of a plan of liquidation. Definitive materials were filed with the SEC on April 1, 2011. Materials were disseminated to the Limited Partners on April 8, 2011. The Partnership sought approval to have a formal plan of liquidation of selling its limited partnership interests or selling the underlying Housing Complexes of each of the Local Limited Partnerships. On June 1, 2011 the Partnership received the majority vote in favor of the plan for dissolution. Therefore, the Partnership is engaging third party appraisers to appraise several or all of the Local Limited Partnerships in this Partnership. The appraisal is one of the preliminary steps that need to be completed in order to move forward with the approved liquidation plan. The expense incurred for the appraisals, or any other disposition related expenses the Partnership incurs, are being capitalized and will remain on the balance sheets until the respective Local Limited Partnership is sold. At the time of disposition the capitalized costs will be netted with any cash proceeds that are received in order to calculate the gain or loss on the disposition.

The following table reflects the 8 Local Limited Partnership Interests that were sold during the year ended March 31, 2013. The Compliance Period for all Local Limited Partnerships has expired so there is no risk of tax credit recapture to the investors in the Partnership. No cash distributions will be made to the Limited Partners as a result of these sales.4

Local Limited Partnership	Mortgage Debt		Appraised Value		Sales Proceeds		Date of Sale		Sales Related Expenses		Reimbursement To Former GP		Gain on Sale to the Partnership
Baycity Village Apartments L.P.	$	1,273,999	$	1,250,000	$	30,000		June 30, 2012	$	2,873		-	$	27,127
Madisonville Manor L.P.		856,153		430,000		25,000		August 01, 2012		2,100		-		22,900
Northside Plaza Apartments L.P.		1,272,646		650,000		25,000		August 01, 2012		2,550		-		22,450
Evergreen Four, L.P		821,336		370,000		21,953		August 31, 2012		3,303		-		18,650
Waterford Place L.P		1,100,250		630,000		8,953		August 31, 2012		2,953		-		6,000
Hidden Valley L.P		1,401,554		900,000		50,000		December 21, 2012		11,075		25,000		13,925
Seneca Falls East Apartment Company II, L.P.		842,487		485,000		20,001		March 31, 2013		1,296		-		18,705
Regency Court Apartments, L.P.		3,949,697		5,300,000		236,466		March 31, 2013		6,840		-		229,626

As of March 31, 2014, the Partnership sold its Local Limited Partnership Interest in Beckwood Manor Seven, L.P., Alpine Manor, L.P., Briscoe Manor, Fawn Haven, L.P., Fort Stockton Manor, Pampa Manor Apartments, Vernon Manor Apartments, Baycity Village Apartments, L.P., Madisonville Manor, L.P., Northside Plaza Apartments, L.P., Evergreen Four, L.P., Waterford Place, L.P., Hidden Valley, L.P., Seneca Falls East Apartment Company II, L.P., Indian Creek L.P., Regency Court Apartments, L.P and Yantis Housing, Ltd. Each of the Local Limited Partnerships had completed its Compliance Period.

During the year ended March 31, 2015, the Local Limited Partnership interest in Mt. Graham, Ltd (“Mt. Graham”) was sold for $32,000. Mt. Graham was appraised for $1,035,000 and had a mortgage note balance of $1,291,776 as of December 31, 2013. The cash proceeds were used to pay $6,132 of accrued asset management fees, $20,868 to reimburse the General Partner or affiliates for debts previously written off, and the remaining $5,000 was retained in reserves for future operating expenses. The Partnership incurred $9,403 in sales related expenses which were netted against the proceeds from the sale in calculating the gain on the sale. The Partnership’s investment balance is zero; therefore a gain of $22,597 was recorded during the period. The Compliance Period has been completed therefore there is no risk of recapture and investor approval is not required.

~~The~~During ~~following~~the ~~table~~year ~~represents~~ended March 31, 2015, the ~~anticipated use~~Local Limited Partnership interest in Sandpiper Square L.P. (“Sandpiper”) was sold for $15,000. Sandpiper was appraised for $465,000 and had a mortgage note balance of ~~the~~$862,731 as of December 31, 2014. The cash proceeds were used to pay $8,518 of accrued asset management fees and $6,482 to reimburse the General Partner or affiliates for debts previously written off. The Partnership incurred $1,017 in sales related expenses which were netted against the proceeds from the ~~disposition~~sale in calculating the gain on the sale. The Partnership’s investment balance is zero; therefore a gain of $13,983 was recorded during the 8period. The ~~Local~~Compliance ~~Limited~~Period ~~Partnerships~~has been completed therefore there is no risk of recapture and investor approval is not required.

Local Limited Partnership	Sales Proceeds		Reimbursement of WNC or affiliates		Payment of accrued asset management fees		Cash to remain in reserves for future expenses		Reimbursement to former GP
Baycity Village Apartments L.P.	$	30,000	$	-	$	26,000	$	4,000	$	-
Madisonville Manor L.P.		25,000		-		22,000		3,000		-
Northside Plaza Apartments L.P.		25,000		-		22,000		3,000		-
Evergreen Four, L.P		21,953		21,953		-		-		-
Waterford Place L.P		8,953		5,044		3,909		-		-
Hidden Valley L.P		50,000		21,972		-		3,028		25,000
Seneca Falls East Apartment Company II, L.P.		20,001		-		-		20,001		-
Regency Court Apartments, L.P.		236,466		-		-		236,466		-

As of March 31, 2015, the Partnership has identified two Local Limited Partnerships for possible disposition as listed in the table below. Once the sales are finalized, the Partnership will use the cash proceeds to reimburse the General Partner or an affiliate for expenses paid on its behalf or pay accrued asset management fees. Any remaining proceeds will be placed in the Partnership’s reserves for future operating expenses. Upon the sale of the last remaining Local Limited Partnership, any cash remaining after all Partnership debts are paid would then be distributed to the Limited Partnership. The Compliance Period for all Local Limited Partnership has expired so there is no risk of tax credit recapture to the investors in the Partnership.

The following table reflects the 5 Local Limited Partnership Interests identified for disposition as of March 31, 2013:

Local Limited Partnership	Debt at 12/31/14		Appraisal Value		Estimated Sales Price		Estimated Sales Related Expenses

HOI Limited Partnership of Lenoir		239,502		635,000		**		15,635

Laurel Creek Apartments		-		1,500,000		**		41,652

Local Limited Partnership	Debt at 12/31/12		Appraisal Value		Estimated Sales Price		Estimated Sales Related Expenses		Estimated Gain on sale
Sandpiper Square Apartments	$	879,758	$	465,000	$	20,000	$	5,000	$	15,000
Mt Graham Housing, Ltd		1,304,327		1,035,000		40,000		3,000		37,000
Yantis Housing, Ltd.		579,452		180,000		22,500		8,445		14,055
HOI Limited Partnership of Lenoir		310,817		635,000		11,100		7,000		4,100
Laurel Creek Apartments *		127,528		2,270,000		-		-		-

** Purchase price is still under negotiation

* As of the date of this report, the sales price and sales related expenses cannot be determined.5

6Item 1A. Risk Factors

~~Item~~Set 1Aforth below are the risks the Partnership believes are the most significant to the Limited Partners. ~~Risk~~The ~~Factors~~Partnership and the Local Limited Partnerships operate in a continually changing business environment and, therefore, new risks emerge from time to time. This section contains some forward-looking statements. For an explanation of the qualifications and limitations on forward-looking statements, see Item 7.

~~Set forth below are the risks the Partnership believes are the most significant to the Limited Partners. The Partnership and the Local Limited Partnerships operate in~~ (a) Risks ~~continually changing~~arising ~~business environment and, therefore, new risks emerge~~ from ~~time to time. This section contains some forward-looking statements. For an explanation of~~ the ~~qualifications~~Internal ~~and~~Revenue ~~limitations~~Code onrules ~~forward-looking~~governing ~~statements,~~Low ~~see~~Income ~~Item~~Housing 7.Tax Credits

(Sales of Housing Complexes after 15 years are subject to limitations which may impact a) ~~Risks~~Local ~~arising~~Limited ~~from~~Partnership’s ability to sell its Housing Complex. Each Local Limited Partnership executes an extended low income housing commitment with the ~~Internal~~state ~~Revenue~~in ~~Code~~which ~~rules~~the ~~governing~~Housing Complex is located. The extended low income housing commitment states the number of years that the Local Limited Partnership and any subsequent owners must rent the Housing Complex as low income housing. Under Federal law, the commitment must be for at least 30 years. The commitment, actually agreed to, may be significantly longer than 30 years. In prioritizing applicants for Low Income Housing Tax Credits, most states give additional points for commitment periods in excess of 30 years. On any sale of the Housing Complex during the commitment period, the purchaser would have to agree to continue to rent the Housing Complex as low income housing for the duration of the commitment period. This requirement reduces the potential market, and possibly the sales price, for the Housing Complexes. The sale of a Housing Complex may be subject to other restrictions. For example, Federal lenders or subsidizers may have the right to approve or disapprove a purchase of a Housing Complex. 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 amount of cash will be distributed to the Limited Partners. The Partnership would first use sale proceeds to pay obligations of the Partnership. As a result, a material portion of the Low Income Housing Tax Credits may represent a return of the money originally invested in the Partnership.

~~Low~~As ~~Income~~part ~~Housing Tax Credits might be less than anticipated. The Local General Partners calculate the amount~~ of the ~~Low~~recently ~~Income~~enacted ~~Housing~~health ~~Tax Credits.~~care Nolegislation, ~~opinion~~Congress ofhas ~~counsel~~codified ~~will cover~~ the ~~calculation~~economic ofsubstance ~~the amount of Low Income Housing Tax Credits~~doctrine. ~~The~~Because ~~IRS could challenge the amount~~ of ~~the~~its ~~Low~~recent ~~Income~~enactment, ~~Housing Tax Credits claimed for any Housing Complex under any of a number of provisions set forth in Internal Revenue Code Section 42. A successful challenge by~~ the ~~IRS~~full ~~would~~reach ~~decrease the amount~~ of ~~the~~this ~~Low~~provision ~~Income~~is ~~Housing Tax Credits from the amount paid for by the Partnership~~unclear. Inasmuch ~~Although~~as ~~each~~ Housing ~~Complex~~Complexes ~~has~~might ~~completed~~offer ~~its~~no ~~Compliance~~benefit ~~Period,~~to ~~the~~a ~~IRS generally~~purchaser ~~can~~other ~~audit~~than ~~an information income~~ tax ~~return~~benefits, ~~for~~it ais ~~period~~possible ~~of three years following the filing date of the return. A determination by the IRS~~ that the ~~amount~~economic ofsubstance ~~Low~~doctrine ~~Income Housing Tax Credits taken for an open year~~ could ~~result~~be ininterpreted ato ~~recapture~~limit deduction of ~~credits~~tax ~~with interest.~~losses Iffrom itHousing ~~does~~Complexes, ~~recapture~~which ~~will~~would be aexpected ~~portion~~to ofhave ~~all~~a ~~Low~~significant ~~Income~~adverse ~~Housing~~effect ~~Tax~~on ~~Credits taken in prior years for that Housing Complex, plus interest. During~~ the ~~first~~sale 11value ~~years~~ of the ~~Compliance Period, non-compliance results in one-third of the Low Income~~ Housing ~~Tax~~Complexes ~~Credits up to that point for the particular Housing Complex being recaptured, plus interest. Between years 12~~ and ~~15,~~ the ~~recapture~~Local isLimited ~~phased~~Partnership ~~out ratably~~Interests.

~~Sales~~(b) Risks ofrelated ~~Housing Complexes after 15 years are subject~~ to ~~limitations~~investment ~~which may impact a Local Limited Partnership’s ability to sell its Housing Complex. Each Local Limited Partnership executes an extended low income housing commitment with the state~~ in ~~which the Housing Complex is located. The extended low income housing commitment states the number of years that the~~ Local Limited ~~Partnership~~Partnerships and ~~any subsequent owners must rent the~~ Housing Complex as low income housing. Under Federal law, the commitment must be for at least 30 years. The commitment, actually agreed to, may be significantly longer than 30 years. In prioritizing applicants for Low Income Housing Tax Credits, most states give additional points for commitment periods in excess of 30 years. On any sale of the Housing Complex during the commitment period, the purchaser would have to agree to continue to rent the Housing Complex as low income housing for the duration of the commitment period. This requirement reduces the potential market, and possibly the sales price, for the Housing Complexes. The sale of a Housing Complex may be subject to other restrictions. For example, Federal lenders or subsidizers may have the right to approve or disapprove a purchase of a Housing Complex. 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 amount of cash will be distributed to the Limited Partners. The Partnership would first use sale proceeds to pay obligations of the Partnership. As a result, a material portion of the Low Income Housing Tax Credits may represent a return of the money originally invested in the Partnership.

AsBecause ~~part of~~ the ~~recently~~Partnership ~~enacted~~has ~~health~~few ~~care legislation~~investments, ~~Congress~~each ~~has~~investment ~~codified~~will ~~the~~have ~~economic~~a ~~substance~~great ~~doctrine.~~impact ~~Because~~on ~~of its recent enactment,~~ the ~~full~~Partnership’s ~~reach~~results of ~~this provision is unclear~~operations. Any ~~Inasmuch~~single as Housing ~~Complexes~~Complex ~~might~~experiencing ~~offer~~poor nooperating ~~benefit to a purchaser other than tax benefits~~performance, itimpairment isof ~~possible~~value ~~that~~or ~~the economic~~recapture ~~substance doctrine could be interpreted to limit deduction~~ of ~~tax~~Low ~~losses~~Income ~~from~~ Housing ~~Complexes,~~Tax ~~which~~Credits ~~would~~will ~~be expected to~~ have a significant ~~adverse~~impact ~~effect~~upon on the ~~sale~~Partnership ~~value~~as ofa ~~the Housing Complexes and the Local Limited Partnership Interests~~whole.

7The failure to pay mortgage debt could result in a forced sale of a Housing Complex. Each Local Limited Partnership leverages the Partnership’s investment therein by incurring mortgage debt. A Local Limited Partnership’s revenues could be less than its debt payments and taxes and other operating costs. If so, the Local Limited Partnership would have to use working capital reserves, seek additional funds, or suffer a forced sale of its Housing Complex, which could include a foreclosure. The same results could occur if government subsidies ceased. Foreclosure would result in a loss of the Partnership’s capital invested in the Housing Complex. Foreclosure could also result in a recapture of Low Income Housing Tax Credits, and a loss of Low Income Housing Tax Credits for the year in which the foreclosure occurs. If the Housing Complex is highly-leveraged, a relatively slight decrease in the rental revenues could adversely affect the Local Limited Partnership’s ability to pay its debt service requirements. Mortgage debt may be repayable in a self-amortizing series of equal installments or with a large balloon final payment. Balloon payments maturing prior to the end of the anticipated holding period for the Housing Complex create the risk of a forced sale if the debt cannot be refinanced. There can be no assurance that additional funds will be available to any Local Limited Partnership if needed on acceptable terms or at all.

~~(b) Risks related to investment in Local Limited Partnerships and Housing Complexes~~6

~~Because~~The Partnership does not control the ~~Partnership has~~Local ~~few~~Limited ~~investments,~~Partnerships ~~each~~and ~~investment~~must rely on the Local General Partners. The Local General Partners will ~~have~~make aall ~~great~~management ~~impact~~decisions onfor the ~~Partnership’s~~Local ~~results~~Limited ofPartnerships ~~operations.~~and ~~Any~~the ~~single~~ Housing ~~Complex~~Complexes. The ~~experiencing~~Partnership ~~poor~~has ~~operating~~very ~~performance,~~limited ~~impairment~~rights ofwith ~~value~~respect orto ~~recapture~~management of ~~Low~~the ~~Income~~Local ~~Housing~~Limited ~~Tax~~Partnerships. ~~Credits~~The Partnership will ~~have~~ anot ~~significant~~be ~~impact~~able ~~upon~~to exercise any control with respect to Local Limited Partnership business decisions and operations. Consequently, the success of the Partnership aswill adepend ~~whole~~on the abilities of the Local General Partners.

~~The failure to pay mortgage debt could result in a forced sale of a~~ Housing ~~Complex.~~Complexes ~~Each~~subsidized ~~Local Limited Partnership leverages the Partnership’s investment therein~~ by ~~incurring mortgage debt. A Local Limited Partnership’s revenues could be less than its debt payments and taxes and~~ other ~~operating~~government ~~costs.~~programs Ifare ~~so,~~subject ~~the Local Limited Partnership would have~~ to ~~use working capital reserves, seek~~ additional ~~funds,~~ orrules ~~suffer a forced sale of its Housing Complex,~~ which ~~could~~may ~~include~~make ait ~~foreclosure.~~difficult ~~The~~to ~~same~~operate ~~results~~and ~~could~~sell ~~occur~~Housing ~~if government subsidies ceased~~Complexes. Some ~~Foreclosure~~or ~~would~~all ~~result in a loss~~ of the ~~Partnership’s capital invested in the~~ Housing ~~Complex.~~Complexes ~~Foreclosure could~~receive ~~also~~or ~~result~~may inreceive agovernment ~~recapture~~financing ofor ~~Low~~operating ~~Income~~subsidies ~~Housing~~in ~~Tax~~addition ~~Credits,~~to ~~and a loss of~~ Low Income Housing Tax Credits ~~for the year in which the foreclosure occurs~~. The Iffollowing ~~the~~are ~~Housing~~risks ~~Complex~~associated is highly-leveraged, a relatively slight decrease in the rental revenues could adversely affect the Local Limited Partnership’s ability to pay its debt service requirements. Mortgage debt may be repayable in a self-amortizing series of equal installments or with asome ~~large~~such ~~balloon~~subsidy final payment. Balloon payments maturing prior to the end of the anticipated holding period for the Housing Complex create the risk of a forced sale if the debt cannot be refinanced. There can be no assurance that additional funds will be available to any Local Limited Partnership if needed on acceptable terms or at all.programs:

~~The~~● ~~Partnership~~Obtaining ~~does not~~tenants ~~control the Local Limited Partnerships and must rely on the Local General Partners. The Local General Partners will make all management decisions~~ for the ~~Local Limited Partnerships and the~~ Housing Complexes. ~~The~~Government ~~Partnership~~regulations ~~has~~limit ~~very~~the ~~limited~~types ~~rights with~~of ~~respect~~people towho ~~management~~can ofrent ~~the~~subsidized ~~Local Limited Partnerships~~housing. ~~The~~These ~~Partnership~~regulations ~~will~~may ~~not~~make beit ~~able~~more todifficult ~~exercise any control with respect~~ to ~~Local~~rent ~~Limited Partnership business decisions and operations. Consequently,~~ the ~~success~~residential ofunits ~~the~~in ~~Partnership will depend on~~ the ~~abilities~~ ofHousing ~~the Local General Partners~~Complexes.

8● Obtaining rent increases. In many cases rents can only be increased with the prior approval of the subsidizing agency.

~~Housing~~● ~~Complexes~~Limitations ~~subsidized by~~on ~~other~~cash ~~government~~distributions. ~~programs~~The ~~are~~amount ~~subject~~of tocash ~~additional~~that ~~rules which~~ may ~~make~~be itdistributed ~~difficult~~ to ~~operate~~owners ~~and~~of ~~sell~~subsidized Housing Complexes~~. Some~~ oris ~~all~~less ofthan the ~~Housing~~amount ~~Complexes~~that ~~receive~~could orbe ~~may~~earned ~~receive~~by ~~government~~the ~~financing~~owners orof ~~operating~~non-subsidized ~~subsidies in addition to Low Income~~ Housing ~~Tax Credits~~Complexes. ~~The following are risks associated with some such subsidy programs:~~

● ~~Obtaining~~Limitations ~~tenants~~on ~~for~~sale or refinancing of the Housing Complexes. ~~Government~~A ~~regulations~~Local ~~limit~~Limited Partnership may be unable to sell its Housing Complex or to refinance its mortgage loan without the ~~types~~prior approval of ~~people~~the ~~who~~lender ~~can~~or ~~rent~~state ~~subsidized~~allocating ~~housing~~agency. ~~These~~The ~~regulations~~lender or state allocating agency may ~~make~~withhold itsuch ~~more~~approval ~~difficult~~in the discretion of the lender or state allocating agency. Approval may be subject to ~~rent~~conditions, including the ~~residential~~condition ~~units~~that the purchaser continues to operate the property as affordable housing for terms which could be as long as 30 years or more. In addition, any prepayment of a mortgage may result in the ~~Housing~~assessment ~~Complexes~~of a prepayment penalty.

● ~~Obtaining~~Limitations ~~rent~~on ~~increases.~~transfers Inof ~~many~~interests ~~cases~~in ~~rents~~Local ~~can~~Limited ~~only~~Partnerships. The Partnership may be ~~increased~~unable ~~with~~to sell its interest in a Local Limited Partnership without the prior approval of the ~~subsidizing~~lender or state allocating agency. The lender or state allocating agency may withhold such approval in the discretion of the lender or state allocating agency. Approval may be subject to conditions.

● Limitations on ~~cash~~removal ~~distributions~~and admission of Local General Partners. The ~~amount~~Partnership may be unable to remove a Local General Partner from a Local Limited Partnership except for cause, such as the violation of ~~cash~~the ~~that~~rules of the lender or state allocating authority. Regulations may beprohibit ~~distributed~~the toremoval ~~owners~~of a Local General Partner or permit removal only with the prior approval of ~~subsidized~~the ~~Housing~~lender. ~~Complexes~~Regulations ismay ~~less~~also ~~than~~require approval of the ~~amount~~admission ~~that~~of ~~could~~a besuccessor ~~earned~~Local byGeneral Partner even upon the ~~owners~~death or other disability of ~~non-subsidized~~a ~~Housing~~Local ~~Complexes~~General Partner.

● Limitations on ~~sale~~subsidy ~~or refinancing of the Housing Complexes~~payments. ASubsidy ~~Local~~payments ~~Limited Partnership~~ may be ~~unable~~fixed toin ~~sell~~amount ~~its~~and ~~Housing~~subject ~~Complex or~~ to ~~refinance~~annual ~~its~~legislative ~~mortgage loan without the prior approval of the lender~~appropriations. The ~~lender~~rental ~~may~~revenues ~~withhold~~of ~~such~~a ~~approval~~Housing inComplex, ~~the~~when ~~discretion~~combined ofwith the ~~lender.~~maximum ~~Approval~~committed subsidy, may be ~~subject~~insufficient to ~~conditions,~~meet ~~including~~obligations. ~~the~~Congress ~~condition~~or ~~that~~ the ~~purchaser~~state ~~continues~~legislature, toas ~~operate~~ the ~~property~~case asmay ~~affordable~~be, ~~housing~~may ~~for~~fail ~~terms~~to ~~which~~appropriate ~~could~~or beincrease asthe ~~long~~necessary ~~as 30 years or more~~subsidy. In ~~addition~~those events, ~~any~~the ~~prepayment of a~~ mortgage ~~may~~lender ~~result~~could inforeclose on the ~~assessment~~Housing ofComplex unless a ~~prepayment~~workout ~~penalty~~arrangement could be negotiated.

● ~~Limitations~~Possible onchanges ~~transfers of interests~~ in ~~Local~~applicable ~~Limited Partnerships~~regulations. ~~The~~Legislation ~~Partnership~~ may be ~~unable~~enacted towhich ~~sell~~adversely ~~its~~revises ~~interest~~provisions ~~in a Local Limited Partnership without the prior approval~~ of ~~the~~outstanding ~~lender~~mortgage loans. ~~The~~Such ~~lender~~legislation ~~may~~has ~~withhold~~been ~~such~~enacted ~~approval~~ in the ~~discretion of the lender~~past. ~~Approval may be subject to conditions.~~

● ~~Limitations~~Limited onPartners ~~removal~~may ~~and~~not ~~admission~~receive ofdistributions ~~Local~~if ~~General~~Housing ~~Partners~~Complexes are sold. ~~The~~There ~~Partnership~~is ~~may~~no beassurance ~~unable~~that toLimited ~~remove~~Partners awill ~~Local~~receive ~~General~~any ~~Partner~~cash distributions from athe ~~Local~~sale ~~Limited~~or ~~Partnership~~refinancing ~~except~~of ~~for~~a ~~cause,~~Housing ~~such~~Complex. asThe ~~the~~price ~~violation~~at ofwhich ~~the~~a ~~rules~~Housing ofComplex ~~the~~is ~~lender~~sold ormay ~~state~~not ~~allocating~~be ~~authority.~~high ~~Regulations~~enough ~~may~~to ~~prohibit~~pay the ~~removal~~mortgage ofand aother ~~Local~~expenses ~~General~~at ~~Partner~~the orLocal ~~permit~~Limited ~~removal~~Partnership ~~only~~and ~~with~~Partnerships ~~the~~levels ~~prior~~which ~~approval~~must ofbe ~~the~~paid ~~lender~~at such time. ~~Regulations~~If ~~may~~that ~~also~~happens, ~~require~~a ~~approval~~Limited ofPartner’s ~~the~~return ~~admission~~would ofbe aderived ~~successor~~only ~~Local~~from ~~General~~the ~~Partner~~Low ~~even~~Income ~~upon~~Housing ~~the~~Tax ~~death~~Credits orand ~~other~~tax ~~disability~~losses. ofSimilar arisks apply to sales of Local ~~General~~Limited ~~Partner~~Partnership Interests.

● Limitations on subsidy payments. Subsidy payments may be fixed in amount and subject to annual legislative appropriations. The rental revenues of a Housing Complex, when combined with the maximum committed subsidy, may be insufficient to meet obligations. Congress or the state legislature, as the case may be, may fail to appropriate or increase the necessary subsidy. In those events, the mortgage lender could foreclose on the Housing Complex unless a workout arrangement could be negotiated.7

●Uninsured ~~Possible~~casualties ~~changes~~could result in ~~applicable~~losses ~~regulations~~and recapture. ~~Legislation~~There ~~may~~are casualties which are either uninsurable or not economically insurable. These include earthquakes, floods, wars and losses relating to hazardous materials or environmental matters. If a Housing Complex experienced an uninsured casualty, the Partnership could lose both its invested capital and anticipated profits in such property. Even if the casualty were an insured loss, the Local Limited Partnership might be ~~enacted~~unable ~~which~~to ~~adversely~~rebuild ~~revises~~the ~~provisions~~destroyed property. A portion of ~~outstanding~~prior ~~mortgage~~Low ~~loans~~Income Housing Tax Credits could be recaptured and future Low Income Housing Tax Credits could be lost if the Housing Complex were not restored within a reasonable period of time. And ~~Such~~liability ~~legislation~~judgments ~~has~~against ~~been~~the ~~enacted~~Local inLimited Partnership could exceed available insurance proceeds or otherwise materially and adversely affect the ~~past~~Local Limited Partnership. The cost of liability and casualty insurance has increased in recent years. Casualty insurance has become more difficult to obtain and may require large deductible amounts.

●Housing ~~Limited~~Complexes ~~Partners~~without ~~may~~financing ~~not~~or ~~receive~~operating ~~distributions~~subsidies ifmay ~~Housing~~be ~~Complexes~~unable ~~are~~to ~~sold.~~pay ~~There~~operating isexpenses. noIf ~~assurance~~a ~~that~~Local Limited ~~Partners~~Partnership ~~will~~were ~~receive~~unable ~~any~~to ~~cash~~pay ~~distributions~~operating ~~from~~expenses, ~~the~~one ~~sale~~result orcould ~~refinancing~~be a forced sale of aits Housing Complex. If ~~The~~a ~~price~~forced atsale ~~which~~occurs during the Compliance Period of a Housing Complex, isa ~~sold~~partial ~~may~~recapture ~~not~~of beLow ~~high~~Income ~~enough~~Housing toTax ~~pay~~Credits ~~the~~could ~~mortgage~~occur. ~~and~~In ~~other~~this ~~expenses~~regard, atsome of the Local Limited ~~Partnership~~Partnerships ~~and~~may ~~Partnerships~~own ~~levels~~Housing Complexes which ~~must~~have beno ~~paid~~subsidies atother ~~such~~than ~~time~~Low Income Housing Tax Credits. Those IfHousing ~~that~~Complexes ~~happens,~~do anot ~~Limited~~have ~~Partner’s~~the ~~return~~benefit ~~would~~of bebelow-market-interest-rate ~~derived~~financing ~~only~~or ~~from~~operating subsidies which often are important to the feasibility of low income housing. Those Housing Complexes rely solely on rents to pay expenses. However, in order for any Housing Complex to be eligible for Low Income Housing Tax Credits, ~~and~~it ~~tax~~must ~~losses~~restrict the rent which may be charged to tenants. Over time, the expenses of a Housing Complex will increase. If a Local Limited Partnership cannot increase its rents, it may be unable to pay increased operating expenses.

~~Uninsured~~The ~~casualties could~~Partnership’s ~~result~~investment inprotection ~~losses~~policies ~~and~~will ~~recapture.~~be ~~There~~worthless ~~are~~if ~~casualties~~the ~~which~~net ~~are~~worth ~~either~~of ~~uninsurable~~the orLocal General Partners is not ~~economically~~sufficient ~~insurable.~~to ~~These include~~satisfy ~~earthquakes,~~their ~~floods,~~obligations. There ~~wars~~is ~~and~~a ~~losses~~risk ~~relating~~that tothe ~~hazardous~~Local ~~materials~~General orPartners ~~environmental~~will ~~matters.~~be Ifunable ato ~~Housing~~perform ~~Complex~~their ~~experienced an~~financial ~~uninsured~~obligations ~~casualty,~~to the Partnership. The ~~could~~General ~~lose~~Partner ~~both~~has ~~its~~not ~~invested~~established ~~capital~~a ~~and~~minimum ~~anticipated~~net ~~profits~~worth inrequirement ~~such~~for ~~property~~the Local General Partners. Rather, ~~Even~~at if the ~~casualty~~time ~~were~~of anthe ~~insured~~Partnership’s ~~loss~~investment, each ~~the~~ Local ~~Limited~~General ~~Partnership~~Partner ~~might~~demonstrated bea ~~unable~~net toworth ~~rebuild~~which the ~~destroyed~~General ~~property~~Partner believed was appropriate under the circumstances. AThe ~~portion~~ assets of ~~prior~~the ~~tax~~Local ~~credits~~General ~~could~~Partners beare ~~recaptured~~likely ~~and~~to ~~future~~consist ~~tax~~primarily ~~credits~~of ~~could~~real beestate ~~lost~~holdings ifand ~~the~~similar ~~Housing~~assets. ~~Complex~~The ~~were~~fair ~~not~~market ~~restored~~value ~~within a~~of ~~reasonable~~these ~~period~~types of ~~time~~assets is difficult to estimate. ~~And~~These ~~liability~~types ~~judgments~~of ~~against~~assets cannot be readily liquidated to satisfy the financial guarantees and commitments which the Local ~~Limited~~General Partners make to the Partnership. Moreover, ~~could~~other ~~exceed~~creditors ~~available~~may ~~insurance~~have ~~proceeds~~ claims on these assets. No escrow accounts or ~~otherwise~~other ~~materially~~security ~~and~~arrangements ~~adversely~~will ~~affect~~be ~~the~~established to ensure performance of a Local ~~Limited~~General ~~Partnership~~Partner’s obligations. The cost ofto ~~liability~~enforce ~~and~~a ~~casualty~~Local ~~insurance~~General ~~has~~Partner’s ~~increased in~~obligations ~~recent~~may ~~years~~be high. ~~Casualty~~If ~~insurance~~a ~~has~~Local ~~become~~General ~~more~~Partner ~~difficult~~does tonot ~~obtain~~satisfy ~~and~~its obligations the Partnership may ~~require~~have ~~large~~no ~~deductible~~remedy, ~~amounts~~or the remedy may be limited to removing the Local General Partner as general partner of the Local Limited Partnership.

~~Housing~~Fluctuating ~~Complexes~~economic ~~without financing~~conditions orcan ~~operating~~reduce ~~subsidies~~the ~~may~~value beof ~~unable~~real ~~to pay operating expenses~~estate. IfThe ~~a Local Limited~~ Partnership’s ~~were~~principal ~~unable~~business toobjective ~~pay operating~~is ~~expenses,~~providing ~~one~~its ~~result~~Limited ~~could~~Partners bewith aLow ~~forced~~Income ~~sale of its~~ Housing ~~Complex.~~Tax IfCredits, anot ~~forced sale occurs during~~ the ~~Compliance~~generation ~~Period~~ of agains ~~Housing~~from ~~Complex,~~the aappreciation ~~partial recapture~~ of ~~Low~~real ~~Income~~estate ~~Housing~~held ~~Tax~~by ~~Credits could occur. In this regard, some of~~ the Local Limited Partnerships. In ~~may~~its ~~own~~financial ~~Housing~~statements, ~~Complexes~~the ~~which~~Partnership ~~have~~has nocarried ~~subsidies~~its ~~other~~investments ~~than~~in ~~Low~~Local ~~Income~~Limited ~~Housing~~Partnerships ~~Tax~~at ~~Credits.~~values ~~Those~~equal ~~Housing~~to ~~Complexes do~~or ~~not~~less ~~have~~than the ~~benefit~~sum of ~~below-market-interest-rate~~the ~~financing~~total oramount ~~operating~~of ~~subsidies which often are important to~~ the ~~feasibility of~~remaining ~~low~~future ~~income~~Low ~~housing.~~Income ~~Those~~ Housing ~~Complexes~~Tax ~~rely~~Credits ~~solely~~estimated onto ~~rents~~be allocated to ~~pay~~the ~~expenses.~~Partnership ~~However,~~and inthe ~~order~~estimated ~~for~~residual ~~any~~value ~~Housing Complex~~ to bethe ~~eligible~~Partnership ~~for~~of ~~Low~~its ~~Income~~interests ~~Housing~~in ~~Tax Credits, it must restrict~~ the ~~rent~~Local ~~which~~Limited ~~may~~Partnerships. beAs ~~charged~~of toall ~~tenants.~~periods ~~Over time~~presented, the ~~expenses of~~Partnership ahad ~~Housing~~reduced ~~Complex~~the ~~will~~carrying ~~increase.~~amount Ifto a$0 ~~Local~~with ~~Limited~~respect ~~Partnership~~to ~~cannot~~all ~~increase~~of its ~~rents, it may be unable to pay increased operating expenses~~investments.

9Any investment in real estate is subject to risks from fluctuating economic conditions. These conditions can adversely affect the ability to realize a profit or even to recover invested capital. Among these conditions are:

~~The~~● ~~Partnership’s investment protection policies will be worthless if~~ the ~~net~~general worth of the Local General Partners is not sufficient to satisfy their obligations. There is a risk that the Local General Partners will be unable to perform their financial obligations to the Partnership. The General Partner has not established a minimum net worth requirement for the Local General Partners. Rather, each Local General Partner demonstrates a net worth which the General Partner believes is appropriate under the circumstances. The assets of the Local General Partners are likely to consist primarily of real estate holdings and ~~similar~~local ~~assets.~~job ~~The fair~~ market value of these types of assets is difficult to estimate. These types of assets cannot be readily liquidated to satisfy the financial guarantees and commitments which the Local General Partners make to the Partnership. Moreover, other creditors may have claims on these assets. No escrow accounts or other security arrangements will be established to ensure performance of a Local General Partner’s obligations. The cost to enforce a Local General Partner’s obligations may be high. If a Local General Partner does not satisfy its obligations the Partnership may have no remedy, or the remedy may be limited to removing the Local General Partner as general partner of the Local Limited Partnership.

~~Fluctuating~~● ~~economic conditions can reduce~~ the ~~value~~availability of real estate. The Partnership’s principal business objective is providing its Limited Partners with Low Income Housing Tax Credits, not the generation of gains from the appreciation of real estate held by the Local Limited Partnerships. In its financial statements, the Partnership has carried its investments in Local Limited Partnerships at values equal to or less than the sum of the total amount of the remaining future Low Income Housing Tax Credits estimated to be allocated to the Partnership and ~~the~~cost ~~estimated residual value to the Partnership~~ of ~~its~~mortgage ~~interests in the Local Limited Partnerships. As of all periods presented~~financing, ~~the Partnership had reduced the carrying amount to $0 with respect to all of its investments.~~

~~Any~~● ~~investment~~monetary in real estate is subject to risks from fluctuating economic conditions. These conditions can adversely affect the ability to realize a profit or even to recover invested capital. Among these conditions are:inflation,

● ~~the~~tax, ~~general~~environmental, ~~and~~land ~~local~~use ~~job~~and ~~market~~zoning policies,

● the ~~availability~~supply of and ~~cost~~demand offor ~~mortgage~~similar ~~financing~~properties,

● ~~monetary~~neighborhood ~~inflation~~conditions,

● ~~tax,~~the ~~environmental,~~availability ~~land~~and ~~use~~cost ~~and~~of ~~zoning~~utilities ~~policies,~~and water.

~~● the supply of and demand for similar properties,~~8

● (c) Tax ~~neighborhood~~risks ~~conditions,~~other than those relating to tax credits

●In addition to the ~~availability~~risks pertaining specifically to Low Income Housing Tax Credits, there are other Federal income tax risks. Additional Federal income tax risks associated with the ownership of Partnership Units and ~~cost~~the operations of ~~utilities~~the Partnership and ~~water.~~the Local Limited Partnerships include, but are not limited to, the following:

~~(c)~~No ~~Tax~~opinion ~~risks~~of ~~other~~counsel ~~than~~as ~~those~~to ~~relating~~certain tomatters. No ~~tax~~legal ~~credits~~opinion is obtained regarding matters:

In● ~~addition to~~ the ~~risks~~determination ~~pertaining specifically to Low Income Housing Tax Credits, there are other Federal income tax risks. Additional Federal income tax risks associated with the ownership~~ of ~~Partnership~~which ~~Units~~depends ~~and~~on ~~the~~future ~~operations~~factual ~~of the Partnership and the Local Limited Partnerships include~~circumstances, ~~but are not limited to, the following:~~

No● ~~opinion~~which ofare ~~counsel as~~peculiar to ~~certain~~individual ~~matters.~~Limited NoPartners, ~~legal opinion is obtained regarding matters:~~or

● ~~the~~which ~~determination~~are ofnot ~~which~~customarily ~~depends~~the onsubject ~~future~~of ~~factual~~an ~~circumstances,~~opinion.

●The ~~which~~more ~~are~~significant ~~peculiar~~of tothese ~~individual~~matters ~~Limited Partners, or~~include:

● allocating purchase price among components of a property, particularly as between buildings and fixtures, the cost of which ~~are~~is ~~not~~depreciable, ~~customarily~~and the ~~subject~~underlying land, the cost of anwhich ~~opinion.~~is not depreciable,

~~The~~● ~~more~~characterizing ~~significant~~expenses ofand ~~these~~payments ~~matters~~made ~~include:~~to or by the Partnership or a Local Limited Partnership,

● ~~allocating~~identifying ~~purchase~~the ~~price~~portion ~~among components~~ of ~~a property, particularly as between buildings and fixtures,~~ the ~~cost~~costs of ~~which~~any isHousing ~~depreciable,~~Complex ~~and~~which ~~the~~qualify ~~underlying~~for ~~land,~~historic ~~the~~and ~~cost~~other oftax ~~which is not depreciable~~credits,

● ~~characterizing~~applying ~~expenses~~to ~~and~~any ~~payments~~specific ~~made~~Limited toPartner orthe bylimitation on the ~~Partnership~~use orof atax ~~Local~~credits and tax losses. Limited ~~Partnership~~Partners must determine for themselves the extent to which they can use tax credits and tax losses, and

● ~~identifying~~ the portion of the costs of any Housing Complex which qualify for historic and other tax credits, ● applying to any specific Limited Partner the limitation on the use of tax credits and tax losses. Limited Partners must determine for themselves the extent to which they can use tax credits and tax losses, and ● the application of the alternative minimum tax to any specific Limited Partner, or the calculation of the alternative minimum tax by any Limited Partner. The alternative minimum tax could reduce the tax benefits from an investment in the Partnership.

10There can be no assurance, therefore, that the IRS will not challenge some of the tax positions adopted by the Partnership. The courts could sustain an IRS challenge. An IRS challenge, if successful, could have a detrimental effect on the Partnership’s ability to realize its investment objectives.

~~There~~Passive ~~can~~activity berules nowill ~~assurance,~~limit ~~therefore,~~deduction ~~that~~ of the ~~IRS~~Partnership’s ~~will~~losses ~~not~~and ~~challenge~~impose ~~some~~tax ofon ~~the~~interest ~~tax~~income. The ~~positions~~Internal ~~adopted~~Revenue byCode imposes limits on the ~~Partnership~~ability of most investors to claim losses from investments in real estate. An ~~The~~individual ~~courts~~may ~~could~~claim ~~sustain~~these so-called passive losses only as an ~~IRS~~offset ~~challenge.~~to income from investments in real estate or rental activities. An ~~IRS~~ ~~challenge~~individual may not claim passive losses as an offset against other types of income, ifsuch ~~successful~~as salaries, ~~could~~wages, ~~have~~dividends aand ~~detrimental~~interest. These ~~effect~~passive onactivity ~~the~~rules ~~Partnership’s~~will restrict the ability of most Limited Partners to ~~realize~~use ~~its~~losses ~~investment~~from ~~objectives~~the Partnership as an offset of non-passive income.

~~Passive~~The ~~activity rules will limit deduction of the~~ Partnership’s ~~losses~~may ~~and~~earn ~~impose tax on~~ interest income~~. The~~ ~~Internal Revenue Code imposes limits~~ on ~~the~~its ~~ability~~reserves ofand ~~most investors to claim losses from investments in real estate~~loans. The Anpassive ~~individual~~activity ~~may~~rules ~~claim~~generally ~~these~~will ~~so-called passive~~categorize ~~losses~~interest ~~only~~ as anportfolio ~~offset to~~ income, ~~from~~and ~~investments~~not inpassive ~~real estate or rental activities~~income. AnPassive ~~individual~~losses ~~may~~cannot ~~not~~be ~~claim~~used ~~passive losses~~ as an offset ~~against~~to ~~other~~portfolio ~~types of~~ income. Consequently, ~~such~~a asLimited ~~salaries,~~Partner ~~wages,~~could ~~dividends~~pay ~~and~~tax ~~interest.~~liability ~~These~~on ~~passive~~portfolio ~~activity~~income ~~rules will restrict the ability of most Limited Partners to use losses~~ from the Partnership ~~as an offset of non-passive income~~.

~~The~~At ~~Partnership~~risk ~~may earn~~rules ~~interest~~might ~~income~~limit ondeduction ~~its~~of ~~reserves~~the ~~and~~Partnership’s ~~loans~~losses. If ~~The~~a ~~passive~~significant ~~activity~~portion ~~rules~~of ~~generally~~the ~~will~~financing ~~categorize~~used ~~interest~~to aspurchase ~~portfolio income,~~Housing ~~and~~Complexes does not ~~passive~~consist ~~income.~~of ~~Passive~~qualified ~~losses~~nonrecourse ~~cannot~~financing, bethe ~~used~~“at asrisk” anrules ~~offset~~will limit a Limited Partner’s ability to ~~portfolio~~claim ~~income.~~Partnership ~~Consequently,~~losses ato the amount the Limited Partner ~~could~~ ~~pay~~invests ~~tax~~in ~~liability~~the onPartnership. The ~~portfolio~~“at ~~income~~risk” ~~from~~rules of the Internal Revenue Code generally limit a Limited Partner’s ability to deduct Partnership. losses to the sum of:

At● ~~risk rules might limit deduction of~~ the ~~Partnership’s~~amount ~~losses. If a significant portion~~ of ~~the~~cash ~~financing used to purchase Housing Complexes does not consist of qualified nonrecourse financing,~~ the ~~“at risk” rules will limit a~~ Limited Partner’s ~~ability to claim Partnership losses to the amount the Limited Partner~~ invests in the Partnership., ~~The “at risk” rules of the Internal Revenue Code generally limit a Limited Partner’s ability to deduct Partnership losses to the sum of:~~and

● the ~~amount of cash the~~ Limited Partner’s ~~invests~~share inof ~~the~~ Partnership, ~~and~~qualified nonrecourse financing.

●Qualified ~~the~~nonrecourse ~~Limited~~financing ~~Partner’s~~is ~~share~~non-convertible, ofnonrecourse ~~Partnership~~debt ~~qualified~~which ~~nonrecourse~~is ~~financing~~borrowed from a government, or with exceptions, any person actively and regularly engaged in the business of lending money.

Qualified nonrecourse financing is non-convertible, nonrecourse debt which is borrowed from a government, or with exceptions, any person actively and regularly engaged in the business of lending money.9

Tax liability on sale of a Housing Complex or Local Limited Partnership Interest may exceed the cash available from the sale. When a Local Limited Partnership sells a Housing Complex it will recognize gain. Such gain is equal to the difference between:

●	the sales proceeds plus the amount of indebtedness secured by the Housing Complex, and

●	the adjusted basis for the Housing Complex. The adjusted basis for a Housing Complex is its original cost, plus capital expenditures, minus depreciation.

Similarly, when the Partnership sells an interest in a Local Limited Partnership the Partnership will recognize gain. Such gain is equal to the difference between:

●	the sales proceeds plus the Partnership’s share of the amount of indebtedness secured by the Housing Complex, and

●	the adjusted basis for the interest. The adjusted basis for an interest in a Local Limited Partnership is the amount paid for the interest, plus income allocations and cash distributions, less loss allocations.

Accordingly, gain will be increased by the depreciation deductions taken during the holding period for the Housing Complex. In some cases, a Limited Partner could have a tax liability from a sale greater than the cash distributed to the Limited Partner from the sale.

11IRS could audit the returns of the Partnership, the Local Limited Partnerships or the Limited Partners. The IRS can audit the Partnership or a Local Limited Partnership at the entity level with regard to issues affecting the entity. The IRS does not have to audit each Limited Partner in order to challenge a position taken by the Partnership or a Local Limited Partnership. Similarly, only one judicial proceeding can be filed to contest an IRS determination. A contest by the Partnership of any IRS determination might result in high legal fees.

~~IRS~~An ~~could~~ audit ~~the returns~~ of the Partnership, ~~the~~or a Local Limited ~~Partnerships~~Partnership oralso ~~the~~could ~~Limited~~result ~~Partners.~~in ~~The~~an ~~IRS can~~ audit ~~the~~of ~~Partnership or~~ a ~~Local~~ Limited ~~Partnership~~Partner. An ataudit ~~the~~of ~~entity~~a ~~level~~Limited ~~with~~Partner’s ~~regard~~tax toreturns ~~issues~~could ~~affecting~~result ~~the~~in ~~entity.~~adjustments ~~The~~both ~~IRS does not have~~ to ~~audit~~items ~~each Limited~~that ~~Partner~~are inrelated ~~order~~ to ~~challenge a position taken by~~ the Partnership orand ato ~~Local~~unrelated ~~Limited Partnership~~items. The ~~Similarly,~~Limited ~~only~~Partner ~~one judicial~~could ~~proceeding~~then ~~can~~ be ~~filed~~required to ~~contest~~file anamended ~~IRS~~tax ~~determination.~~returns Aand ~~contest~~pay byadditional ~~the~~tax ~~Partnership~~plus ofinterest ~~any~~and ~~IRS determination might result in high legal fees~~penalties.

AnA ~~audit~~successful IRS challenge to tax allocations of the Partnership or a Local Limited Partnership ~~also~~would ~~could~~reduce ~~result~~the intax benefits of an ~~audit~~investment in the Partnership. Under the Internal Revenue Code, a partnership’s allocation of income, gains, deductions, losses and tax credits must have substantial economic effect. Substantial economic effect is a ~~Limited~~highly-technical ~~Partner~~concept. The Anfundamental ~~audit~~principle ofis two-fold. If a ~~Limited~~partner ~~Partner’s~~will ~~tax returns~~benefit ~~could~~economically ~~result~~from inan ~~adjustments~~item ~~both~~of topartnership ~~items~~income or gain, that ~~are~~item ~~related~~must be allocated to ~~the~~him ~~Partnership~~so ~~and~~that tohe ~~unrelated~~bears ~~items~~the correlative tax burden. Conversely, ~~The~~if ~~Limited~~a ~~Partner could~~partner ~~then~~will suffer economically from an item of partnership deduction or loss, that item must be ~~required~~allocated to ~~file~~him ~~amended~~so that he bears the correlative tax ~~returns~~benefit. If ~~and~~a ~~pay~~partnership’s ~~additional~~allocations do not have substantial economic effect, then the partnership’s tax ~~plus~~items are allocated in accordance with each partner’s interest ~~and~~in ~~penalties~~the partnership. The IRS might challenge the allocations made by the Partnership:

A● ~~successful~~between ~~IRS challenge to tax allocations of~~ the ~~Partnership or a Local~~ Limited ~~Partnership~~Partners ~~would reduce the tax benefits of an investment in the Partnership. Under the Internal Revenue Code, a partnership’s allocation of income, gains, deductions, losses~~ and tax credits must have substantial economic effect. Substantial economic effect is a highly-technical concept. The fundamental principle is two-fold. If a partner will benefit economically from an item of partnership income or gain, that item must be allocated to him so that he bears the ~~correlative~~General ~~tax burden. Conversely~~Partner, if a partner will suffer economically from an item of partnership deduction or loss, that item must be allocated to him so that he bears the correlative tax benefit. If a partnership’s allocations do not have substantial economic effect, then the partnership’s tax items are allocated in accordance with each partner’s interest in the partnership. The IRS might challenge the allocations made by the Partnership:

● ~~between~~among the Limited Partners ~~and the General Partner~~, or

● ~~among~~between the ~~Limited~~Partnership ~~Partners,~~and ora Local General Partner.

●If ~~between~~any allocations were successfully challenged, a greater share of the ~~Partnership~~income ~~and~~or gain or a ~~Local~~lesser ~~General~~share ~~Partner~~of the losses or tax credits might be allocated to the Limited Partners. This would increase the tax liability or reduce the tax benefits to the Limited Partners.

If any allocations were successfully challenged, a greater share of the income or gain or a lesser share of the losses or tax credits might be allocated to the Limited Partners. This would increase the tax liability or reduce the tax benefits to the Limited Partners.10

Tax liabilities could arise in later years of the Partnership. After a period of years following commencement of operations by a Local Limited Partnership, the Local Limited Partnership may generate profits rather than losses. A Limited Partner would have tax liability on his share of such profits unless he could offset the income with:

●	unused passive losses from the Partnership or other investments, or

●	current passive losses from other investments.

In such circumstances, the Limited Partner would not receive a cash distribution from the Partnership with which to pay any tax liability.

IRS challenge to tax treatment of expenditures could reduce losses. The IRS may contend that fees and payments of the Partnership or a Local Limited Partnership:

●	should be deductible over a longer period of time or in a later year,

●	are excessive and may not be capitalized or deducted in full,

●	should be capitalized and not deducted, or

●	may not be included as part of the basis for computing tax credits.

Any such contention by the IRS could adversely impact, among other things:

●	the eligible basis of a Housing Complex used to compute Low Income Housing Tax Credits,

●	the adjusted basis of a Housing Complex used to compute depreciation,

●	the correct deduction of fees,

●	the amortization of organization and offering expenses and start-up expenditures.

If the IRS were successful in any such contention, the anticipated Low Income Housing Tax Credits and losses of the Partnership would be reduced, perhaps substantially.

12Changes in tax law might reduce the value of Low Income Housing Tax Credits. Although all Low Income Housing Tax Credits are allocated to a Housing Complex at commencement of the 10-year credit period, there can be no assurance that future legislation may not adversely affect an investment in the Partnership. For example, legislation could reduce or eliminate the value of Low Income Housing Tax Credits. In this regard, before 1986, the principal tax benefit of an investment in low income housing was tax losses. These tax losses generally were used to reduce an investor’s income from all sources on a dollar-for-dollar basis. Investments in low income housing were made in reliance on the availability of such tax benefits. However, tax legislation enacted in 1986 severely curtailed deduction of such losses.

~~Changes~~New inadministrative ~~tax~~or judicial interpretations of the law might reduce the value of Low Income Housing Tax Credits. Many ~~Although~~of ~~all~~the ~~Low~~provisions ~~Income Housing Tax Credits are allocated to a Housing Complex at commencement~~ of the ~~10-year~~Internal ~~credit~~Revenue ~~period,~~Code ~~there~~related ~~can~~to below noincome ~~assurance~~housing ~~that~~and ~~future~~real ~~legislation~~estate ~~may~~investments have not ~~adversely~~been ~~affect an~~interpreted ~~investment~~by in the ~~Partnership.~~IRS ~~For~~in ~~example~~regulations, ~~legislation~~rulings ~~could~~or ~~reduce~~public announcements, or ~~eliminate~~by the ~~value of Low Income Housing Tax Credits~~courts. In ~~this~~the ~~regard~~future, ~~before~~these ~~1986,~~provisions ~~the~~may ~~principal~~be ~~tax~~interpreted ~~benefit~~or ofclarified anby ~~investment~~the inIRS ~~low~~or ~~income~~the ~~housing~~courts ~~was~~in ~~tax~~a ~~losses.~~manner ~~These~~adverse ~~tax~~to ~~losses generally~~the ~~were~~Partnership ~~used~~or tothe ~~reduce~~Local anLimited ~~investor’s~~Partnerships. The ~~income~~IRS ~~from~~constantly ~~all~~reviews ~~sources~~the onFederal atax ~~dollar-for-dollar~~rules, ~~basis.~~and ~~Investments~~can inrevise ~~low~~its ~~income housing~~interpretations ~~were~~of ~~made~~established inconcepts. Any ~~reliance~~such onrevisions ~~the~~could ~~availability~~reduce ofor ~~such~~eliminate tax benefits. ~~However,~~associated ~~tax~~with ~~legislation~~an ~~enacted~~investment in ~~1986~~the ~~severely curtailed deduction of such losses~~Partnership.

~~New~~State ~~administrative or~~income ~~judicial~~tax ~~interpretations~~laws ofmay ~~the~~adversely ~~law~~affect ~~might reduce~~ the ~~value~~Limited ~~of Low Income Housing Tax Credits~~Partners. A ~~Many~~Limited ofPartner ~~the~~may ~~provisions~~be ~~of the~~required ~~Internal Revenue Code related~~ to ~~low~~file income ~~housing~~tax returns and ~~real~~be ~~estate~~subject ~~investments~~to ~~have~~tax ~~not~~and ~~been~~withholding ~~interpreted by the IRS~~ in ~~regulations, rulings~~each orstate ~~public announcements,~~ or bylocal ~~the~~taxing ~~courts.~~jurisdiction Inin ~~the~~which: ~~future,~~a ~~these~~Housing ~~provisions~~Complex ~~may~~is belocated, ~~interpreted or clarified by~~ the ~~IRS or the courts in a manner adverse to the~~ Partnership or ~~the~~a Local Limited ~~Partnerships.~~Partnership ~~The~~engages ~~IRS~~in ~~constantly~~business ~~reviews the Federal tax rules~~activities, ~~and~~or ~~can~~the ~~revise~~Limited ~~its~~Partner ~~interpretations~~is ofa ~~established concepts~~resident. Corporate ~~Any~~Limited ~~such~~Partners ~~revisions~~may ~~could~~be ~~reduce~~required orto ~~eliminate~~pay ~~tax~~state ~~benefits associated~~franchise ~~with an investment in the Partnership~~taxes.

~~State~~The ~~income~~ tax ~~laws may~~treatment ~~adversely~~of ~~affect~~particular ~~the~~items ~~Limited~~under ~~Partners.~~state Aor ~~Limited~~local ~~Partner~~income tax laws may bevary ~~required~~materially tofrom ~~file~~the Federal income tax ~~returns~~treatment ~~and~~of besuch ~~subject~~items. Nonetheless, ~~to tax~~many ~~and~~of ~~withholding~~the inFederal ~~each~~income ~~state~~tax orrisks ~~local~~associated ~~taxing~~with ~~jurisdiction~~an investment in ~~which:~~the aPartnership ~~Housing~~may ~~Complex~~also isapply ~~located,~~under ~~the~~state ~~Partnership~~ or alocal ~~Local Limited~~income ~~Partnership~~tax ~~engages~~law. The inPartnership ~~business~~may ~~activities,~~be orrequired ~~the~~to ~~Limited~~withhold ~~Partner~~state istaxes afrom ~~resident.~~distributions ~~Corporate~~or ~~Limited~~income ~~Partners~~allocations ~~may be required~~ to ~~pay~~Limited ~~state~~Partners ~~franchise~~in ~~taxes~~some instances.

The tax treatment of particular items under state or local income tax laws may vary materially from the Federal income tax treatment of such items. Nonetheless, many of the Federal income tax risks associated with an investment in the Partnership may also apply under state or local income tax law. The Partnership may be required to withhold state taxes from distributions or income allocations to Limited Partners in some instances.11

(d) Risks related to the Partnership and the Partnership Agreement

The Partnership may be unable to timely provide financial reports to the Limited Partners which would adversely affect their ability to monitor Partnership operations. Historically, the Partnership has been unable to timely file and provide investors with all of its required periodic reports. In some instances, the delay has been substantial. Each Local General Partner is required to retain independent public accountants and to report financial information to the Partnership in a timely manner. There cannot be any assurance that the Local General Partners will satisfy these obligations. If not, the Partnership would be unable to provide to the Limited Partners in a timely manner its financial statements and other reports. That would impact the Limited Partners’ ability to monitor Partnership operations. The Partnership’s failure to meet its filing requirements under the Securities Exchange Act of 1934 could reduce the liquidity for the Partnership Units due to the unavailability of public information concerning the Partnership. The failure to file could also result in sanctions imposed by the SEC. Any defense mounted by the Partnership in the face of such sanctions could entail legal and other fees, which would diminish cash reserves.

Lack of liquidity of investment. There is no public market for the purchase and sale of Partnership Units, and it is unlikely that one will develop. Accordingly, Limited Partners may not be able to sell their Partnership Units promptly or at a reasonable price. Partnership Units should be considered as a long-term investment because the Partnership is unlikely to sell any Local Limited Partnership Interests for at least 15 years. Partnership Units cannot be transferred to tax-exempt or foreign entities, or through a secondary market. The General Partner can deny effectiveness of a transfer if necessary to avoid adverse tax consequences from the transfer. The General Partner does not anticipate that any Partnership Units will be redeemed by the Partnership.

The Limited Partners will not control the Partnership and must rely totally on the General Partner. The General Partner will make all management decisions for the Partnership. Management decisions include exercising powers granted to the Partnership by a Local Limited Partnership. Limited Partners have no right or power to take part in Partnership management.

13Individual Limited Partners will have no recourse if they disagree with actions authorized by a vote of the majority. The Partnership Agreement grants to Limited Partners owning more than 50% of the Partnership Units the right to:

~~Individual~~● ~~Limited~~remove ~~Partners~~the ~~will~~General ~~have~~Partner noand ~~recourse if~~elect ~~they disagree with actions authorized by~~ a ~~vote~~replacement ofgeneral ~~the majority. The Partnership Agreement grants to Limited Partners owning more than 50% of the Partnership Units the right to:~~partner,

● ~~remove~~amend the ~~General~~Partnership ~~Partner and elect a replacement general partner~~Agreement,

● ~~amend~~terminate the Partnership ~~Agreement,~~.

●Accordingly, ~~terminate~~a majority-in-interest of the Limited Partners could cause any such events to occur, even if Limited Partners owning 49% of the Partnership Units opposed such action.

~~Accordingly,~~Limitations aon ~~majority-in-interest~~liability of the General Partner to the Partnership. The ability of Limited Partners ~~could~~to ~~cause~~sue ~~any~~the ~~such~~General ~~events~~Partner and it affiliates is subject to ~~occur,~~limitations. The ~~even~~Partnership ifAgreement limits the liability of the General Partner and it affiliates to the Limited Partners. The ~~owning~~General ~~49%~~Partner and it affiliates will not be liable to the Limited Partners for acts and omissions: performed or omitted in good faith, and performed or omitted in a manner which the General Partner reasonably believed to be within the scope of its authority and in the ~~Partnership~~best ~~Units~~interest ~~opposed~~of the Limited Partners, provided such ~~action~~ conduct did not constitute negligence or misconduct.

~~Limitations~~Therefore, ~~on liability of the General Partner to the Partnership. The ability of~~ Limited Partners tomay ~~sue~~be ~~the~~less ~~General~~able ~~Partner and it affiliates is subject~~ to ~~limitations.~~sue ~~The Partnership Agreement limits~~ the ~~liability of the~~ General Partner and it affiliates tothan ~~the~~would ~~Limited Partners. The General Partner and it affiliates will not~~ be ~~liable to~~ the ~~Limited~~case ~~Partners~~if ~~for~~such ~~acts~~provisions ~~and~~were ~~omissions:~~not ~~performed~~included ~~or omitted~~ in ~~good faith, and performed or omitted in a manner which~~ the ~~General~~Partnership ~~Partner reasonably believed to be within the scope of its authority and in the best interest of the Limited Partners, provided such conduct did not constitute negligence or misconduct~~Agreement.

~~Therefore~~Associates and its affiliates are serving as the general partners of many other partnerships. Depending on their corporate area of responsibility, ~~Limited~~the ~~Partners~~officers ~~may~~of beAssociates ~~less~~initially ~~able~~ devote approximately 5% to ~~sue~~50% of their time to the ~~General~~Partnership. These ~~Partner~~individuals ~~and~~spend itsignificantly ~~affiliates~~less ~~than~~time ~~would~~devoted beto the ~~case~~Partnership ifafter ~~such~~the ~~provisions~~investment ~~were~~of ~~not~~the ~~included~~Partnership’s capital in ~~the~~Local ~~Partnership~~Limited ~~Agreement~~Partnerships.

Associates and its affiliates are serving as the general partners of many other partnerships. Depending on their corporate area of responsibility, the officers of Associates initially devote approximately 5% to 50% of their time to the Partnership. These individuals spend significantly less time devoted to the Partnership after the investment of the Partnership’s capital in Local Limited Partnerships.12

The interests of Limited Partners may conflict with the interests of the General Partner and itits affiliates. The General Partner and itits affiliates are committed to the management of more than 100 other limited partnerships that have investments similar to those of the Partnership. The General Partner and itits affiliates receive substantial compensation from the Partnership. The General Partner decides how the Partnership’s investments in Housing Complexes are managed, and when the investments will be sold. The General Partner may face a conflict in these circumstances because the General Partner’s share of fees and cash distributions from the transaction may be more or less than their expected share of fees if a Housing Complex was not sold. The ~~result of these conflicts could be that the General Partner may make investments which are less desirable, or on terms which are less favorable, to the~~ Partnership ~~than~~ ~~might otherwise be the case. The Partnership~~ has not developed any formal process for resolving conflicts of interest. However, the General Partner is subject to a fiduciary duty to exercise good faith and integrity in handling the affairs of the Partnership, and that duty will govern its actions in all such matters. Furthermore, the manner in which the Partnership can operate and sell investments is subject to substantial restrictions as outlined in the Partnership Agreement.

The Partnership’s accrued payables generally consist primarily of the asset management fees payable to the General Partner. These asset management fees payable increased (decreased) by $~~(88~~12,000), $~~(188~~25,000), and $22(88,000) for the years ended March 31, ~~2013~~2015, ~~2012,~~2014 and ~~2011~~2013, respectively. ~~During~~ ~~the year ended March 31, 2013 these asset management fees payable were overpaid by $24,250, which is recorded as prepaid asset management fees on the March 31, 2013 balance sheet.~~ The Partnership’s future contractual cash obligations consist of its obligations to pay future annual asset management fees and the payables due to the Local Limited Partnerships. The future annual asset management fees will equal approximately $1413,000 per year through the termination of the Partnership, which must occur no later than December 31, 2050.

14Item 1B. Unresolved Staff Comments

~~Item 1B.~~Not ~~Unresolved Staff Comments~~ Applicable

~~Not Applicable~~Item 2. Properties

~~Item 2~~Through its investments in Local Limited Partnerships, the Partnership holds indirect ownership interests in the Housing Complexes. The ~~Properties~~following table reflects the status of the remaining Housing Complexes as of the dates or for the periods indicated:

~~Through its~~WNC ~~investments~~Housing inTax ~~Local~~Credit ~~Limited~~Fund ~~Partnerships~~IV, ~~the Partnership holds indirect ownership interests in the Housing Complexes~~L.P., ~~The following~~Series ~~table reflects the status of the seven Housing Complexes as of the dates or for the periods indicated:~~1

			As of March 31, 2013				As of December 31, 2012
Local Limited Partnership Name	Location	General Partner Name	Partnership’s Total Investment in Local Limited Partnership		Amount of Investment Paid to Date		Number of Units		Estimated Aggregate Low Income Housing Tax Credits		Mortgage Balances of Local Limited Partnership
HOI Limited Partnership of Lenoir (1)	Lenoir, North Carolina	Housing Opportunities, Inc.	$	198,000	$	198,000	$	34	$	400,000	$	311,000
Laurel Creek Apartments (1)	San Luis Obispo, California	San Luis Obispo Non-Profit Housing Corp.		1,030,000		1,030,000		24		2,103,000		128,000
Mt. Graham Housing, Ltd. (1)	Safford, Arizona	Rural Housing, Inc.		410,000		410,000		40		788,000		1,304,000
Regency Court Apartments, L.P. (2)	Monrovia, California	Community Housing Assistance Program, Inc., a California Nonprofit Corporation		N/A		N/A		115		3,293,000		3,950,000
Sandpiper Square, a Limited Partnership (1)	Aulander, North Carolina	I. Norwood Stone		219,000		219,000		24		433,000		880,000
Seneca Falls East Apartments Company II, L.P. (2)	Seneca Falls, New York	David R. Bacon and Frank Salvatore		N/A		N/A		32		360,000		842,000
Yantis Housing, Ltd. (1)	Yantis, Texas	Charles Cannon Jr.		145,000		145,000		24		287,000		579,000
			$	2,002,000	$	2,002,000		293	$	7,664,000	$	7,994,000

March 31, 2015

(1)	The Local Limited Partnership was identified for sale as of March 31, 2013.
				As of March 31, 2015				As of December 31, 2014
(2)	The Local Limited Partnership was sold subsequent to December 31, 2012 but prior to March 31, 2013.
Local Limited Partnership Name		Location	General Partner Name	Partnership’s Total Investment in Local Limited Partnership		Amount of Investment Paid to Date		Number of Units		Estimated Aggregate Low Income Housing Tax Credits		Mortgage Balances of Local Limited Partnership
HOI Limited Partnership of Lenoir (1)		Lenoir, North Carolina	Housing Opportunities, Inc.	$	198,000	$	198,000		34	$	400,000	$	239,000
Laurel Creek Apartments (1)		San Luis Obispo, California	San Luis Obispo Non-Profit Housing Corp.		1,030,000		1,030,000		24		2,103,000		-
Sandpiper Square, a Limited Partnership (2)		Aulander, North Carolina	I. Norwood Stone		N/A		N/A		24		433,000		863,000
				$	1,228,000	$	1,228,000		82	$	2,936,000	$	1,102,000

15(1) The Local Limited Partnership was identified for sale as of March 31, 2015.

	For the Year Ended December 31, 2012
Local Limited Partnership Name	Rental Income		Net Income (Loss)			Low Income Housing Tax Credits Allocated to Partnership
HOI Limited Partnership of Lenoir (1)	$	196,000	$	10,000		N/A
Laurel Creek Apartments (1)		238,000		56,000		N/A
Mt. Graham Housing, Ltd. (1)		228,000		(27,000	)	N/A
Regency Court Apartments, L.P. (2)		836,000		(65,000	)	N/A
Sandpiper Square, a Limited Partnership (1)		129,000		(7,000	)	N/A
Seneca Falls East Apartments Company II, L.P. (2)		191,000		(12,000	)	N/A
Yantis Housing, Ltd. (1)		95,000		(48,000	)	N/A
Total	$	1,913,000	$	(93,000	)

(2)	The Local Limited Partnership was disposed of subsequent to December 31, 2014, but prior to March 31, 2015.

(1)	The Local Limited Partnership was identified for sale as of March 31, 2013.
(2)	The Local Limited Partnership was sold subsequent to December 31, 2012 but prior to March 31, 2013.
	N/A – All of the Low Income Housing Tax Credits have been allocated to the Partnership and there are no future Low Income Housing Tax Credits expected to be received.

16WNC Housing Tax Credit Fund IV, L.P., Series 1

~~WNC Housing~~March ~~Tax Credit Fund IV~~31, ~~L.P., Series 1~~2015

March 31, 2013

	For the Year Ended December 31, 2014
Local Limited Partnership Name	Rental Income		Net Income (Loss)			Low Income Housing Tax Credits Allocated to Partnership

HOI Limited Partnership of Lenoir (1)	$	204,000	$	44,000			N/A

Laurel Creek Apartments (1)		239,000		(20,000	)		N/A

Sandpiper Square, a Limited Partnership (2)		132,000		(11,000	)		N/A

Total	$	575,000	$	13,000

		Occupancy Rates As of December 31,
Local Limited Partnership Name	Location	General Partner Name	2012			2011			2010			2009			2008
Alpine Manor, L.P.	Alpine, Texas	1600 Capital Company, Inc.		N/A			N/A			100	%		94	%		92	%
Baycity Village Apartments, Limited Partnership	Baytown, Texas	Green Companies Development Group, Inc.		N/A			90	%		87	%		92	%		97	%
Beckwood Manor Seven Limited Partnership	Marianna, Arkansas	Phillips Development Corporation		N/A			N/A			100	%		100	%		88	%
Briscoe Manor Limited Partnership	Galena, Maryland	McKnight & Decoster, Inc.		N/A			N/A			97	%		100	%		100	%
Evergreen Four Limited Partnership	Maynard, Arkansas	Phillips Development Corporation		N/A			79	%		71	%		92	%		100	%
Fawn Haven Limited Partnership	Manchester, Ohio	Georg E. Maharg and Maharg Realty, Inc.		N/A			N/A			89	%		89	%		93	%
Fort Stockton Manor, L.P.	Ft. Stockton, Texas	1600 Capital Company, Inc.		N/A			N/A			97	%		100	%		97	%
Hidden Valley Limited Partnership	Gallup, New Mexico	Alan Deke Noftsker		N/A			100	%		95	%		98	%		100	%
HOI Limited Partnership of Lenoir	Lenoir, North Carolina	Housing Opportunities, Inc.		94	%		100	%		100	%		100	%		91	%
Indian Creek Limited Partnership	Bucyrus, Ohio	Georg E. Maharg		N/A			N/A			92	%		92	%		92	%

(1)	The Local Limited Partnership was identified for sale as of March 31, 2015.

17(2) The Local Limited Partnership was disposed of subsequent to December 31, 2014, but prior to March 31, 2015.

~~WNC~~ N/A – All of the Low Income Housing Tax ~~Credit~~Credits ~~Fund~~have ~~IV,~~been ~~L.P.,~~allocated ~~Series~~to 1the Partnership and there are no future Low Income Housing Tax Credits expected to be received.

~~March 31, 2013~~14

		As of December 31,
Local Limited Partnership Name	Location	General Partner Name	2012			2011			2010			2009			2008
Laurel Creek Apartments	San Luis Obispo, California	San Luis Obispo Non-Profit Housing Corp.		96	%		100	%		100	%		92	%		100	%
Madisonville Manor Senior Citizens Complex, Ltd.	Madisonville, Texas	Jean Johnson		N/A			100	%		100	%		100	%		94	%
Mt. Graham Housing, Ltd.	Safford, Arizona	Rural Housing, Inc.		90	%		78	%		85	%		90	%		98	%
Northside Plaza Apartments, Ltd.	Angleton, Texas	Jean Johnson		N/A			100	%		98	%		94	%		100	%
Pampa Manor, L.P.	Pampa, Texas	1600 Capital Company, Inc.		N/A			N/A			84	%		94	%		100	%
Regency Court Partners	Monrovia, California	Community Housing Assistance Program, Inc., a California Nonprofit Corporation		99	%		99	%		100	%		100	%		99	%
Sandpiper Square, a Limited Partnership	Aulander, North Carolina	I. Norwood Stone		96	%		96	%		96	%		100	%		96	%
Seneca Falls East Apartments Company II, L.P.	Seneca Falls, New York	David R. Bacon and Frank Salvatore		91	%		81	%		91	%		91	%		97	%

WNC Housing Tax Credit Fund IV, L.P., Series 1

18March 31, 2015

WNC Housing Tax Credit Fund IV, L.P., Series 1

Occupancy Rates

As of December 31,

Local Limited

Partnership Name

Location

General Partner Name

2014

2013

2012

2011

2010

Alpine Manor, L.P.

Alpine, Texas

1600 Capital Company, Inc.

N/A

100

Baycity Village Apartments, Limited Partnership

Baytown, Texas

Green Companies Development Group, Inc.

N/A

Beckwood Manor Seven Limited Partnership

Marianna, Arkansas

Phillips Development Corporation

N/A

100

Briscoe Manor Limited Partnership

Galena, Maryland

McKnight & Decoster, Inc.

N/A

Evergreen Four Limited Partnership

Maynard, Arkansas

Phillips Development Corporation

N/A

Fawn Haven Limited Partnership

Manchester, Ohio

Georg E. Maharg and Maharg Realty, Inc.

N/A

Fort Stockton Manor, L.P.

Ft. Stockton, Texas

1600 Capital Company, Inc.

N/A

Hidden Valley Limited Partnership

Gallup, New Mexico

Alan Deke Noftsker

N/A

100

HOI Limited Partnership Of Lenoir

Lenoir, North Carolina

Housing Opportunities, Inc.

100

Indian Creek Limited Partnership

Bucyrus, Ohio

Georg E. Maharg

N/A

~~March 31, 2013~~15

		As of December 31,
Local Limited Partnership Name	Location	General Partner Name	2012			2011			2010			2009			2008
Vernon Manor, L.P.	Vernon, Texas	1600 Capital Company, Inc.		N/A			N/A			86	%		86	%		86	%
Waterford Place, a Limited Partnership	Calhoun Falls, South Carolina	Thomas E. Connelly, Jr., TEC Rental Properties Inc., Warren H. Abernathy, II and Solid South, Inc.		N/A			91	%		88	%		94	%		97	%
Yantis Housing, Ltd.	Yantis, Texas	Charles Cannon Jr.		88	%		92	%		96	%		83	%		92	%
		Weighted average		95	%		94	%		93	%		95	%		96	%

WNC Housing Tax Credit Fund IV, L.P., Series 1

19March 31, 2015

Item 3. Legal Proceedings

Occupancy Rates As of December 31,
Local Limited Partnership Name	Location	General Partner Name	2014			2013			2012			2011			2010

Laurel Creek Apartments	San Luis Obispo, California	San Luis Obispo Non-Profit Housing Corp.		100	%		100	%		96	%		100	%		100	%

Madisonville Manor Senior Citizens Complex, Ltd.	Madisonville, Texas	Jean Johnson		N/A			N/A			N/A			100	%		100	%

Mt. Graham Housing, Ltd.	Safford, Arizona	Rural Housing, Inc.		N/A			95	%		90	%		78	%		85	%

Northside Plaza Apartments, Ltd.	Angleton, Texas	Jean Johnson		N/A			N/A			N/A			100	%		98	%

Pampa Manor, L.P.	Pampa, Texas	1600 Capital Company, Inc.		N/A			N/A			N/A			N/A			84	%

Regency Court Partners	Monrovia, California	Community Housing Assistance Program, Inc., a California Nonprofit Corporation		N/A			N/A			99	%		99	%		100	%

Sandpiper Square, a Limited Partnership	Aulander, North Carolina	I. Norwood Stone		100	%		100	%		96	%		96	%		96	%

Seneca Falls East Apartments Company II, L.P.	Seneca Falls, New York	David R. Bacon and Frank Salvatore		N/A			N/A			91	%		81	%		91	%

~~NONE~~16

~~Item 4.~~WNC ~~Mine~~Housing ~~Safety~~Tax ~~Disclosures~~Credit Fund IV, L.P., Series 1

~~NOT APPLICABLE~~March 31, 2015

PART II.

Occupancy Rates As of December 31,
Local Limited Partnership Name	Location	General Partner Name	2014			2013			2012			2011			2010
Vernon Manor, L.P.	Vernon, Texas	1600 Capital Company, Inc.		N/A			N/A			N/A			N/A			86	%

Waterford Place, a Limited Partnership	Calhoun Falls, South Carolina	Thomas E. Connelly, Jr., TEC Rental Properties Inc., Warren H. Abernathy, II and Solid South, Inc.		N/A			N/A			N/A			91	%		88	%

Yantis Housing, Ltd.	Yantis, Texas	Charles Cannon Jr.		N/A			N/A			88	%		92	%		96	%

		Weighted average		96	%		98	%		95	%		94	%		93	%

Item 5 3. Legal ~~Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities~~Proceedings

~~Item 5a.~~NONE

a)Item ~~The Partnership Units are not traded on a public exchange but were sold through a public offering~~4. Mine ItSafety is not anticipated that any public market will develop for the purchase and sale of any Partnership Units and none exists. Partnership Units can be assigned or otherwise transferred only if certain requirements in the Partnership Agreement are satisfied. b) At March 31, 2013, there were 728 Limited Partners, respectively, and no assignees of Partnership Units who were not admitted as Limited Partners, respectively. c) The Partnership was not designed to provide operating cash distributions to Limited Partners. It is possible that the Partnership could make distributions from sale proceeds, if the Partnership is able to sell its Local Limited Partnership Interests or Housing Complexes for more than the related closing costs and any then accrued obligations of the Partnership. There can be no assurance in this regard. Any distributions would be made in accordance with the terms of the Partnership Agreement. For all periods presented there were no cash distributions to the Limited Partners. d) No securities are authorized for issuance by the Partnership under equity compensation plans. e) The Partnership does not issue common stock. f) No unregistered securities were sold by the Partnership during the year ended March 31, 2013.Disclosures

~~Item 5b.~~NOT ~~Use of Proceeds~~APPLICABLE

~~NOT APPLICABLE~~17

~~Item 5c.~~PART ~~Purchases of Equity Securities by the Issuer and Affiliated Purchasers~~II.

~~NONE~~Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

20Item 5a.

~~Item 6~~a) The Partnership Units are not traded on a public exchange but were sold through a public offering. ~~Selected~~It ~~Financial~~is ~~Data~~not anticipated that any public market will develop for the purchase and sale of any Partnership Units and none exists. Partnership Units can be assigned or otherwise transferred only if certain requirements in the Partnership Agreement are satisfied.

~~Selected balance~~b) ~~sheet~~At ~~information~~March ~~for~~31, ~~the~~2015, there were 731 Limited Partners, and no assignees of Partnership isUnits who were not admitted as ~~follows:~~Limited Partners.

	March 31,
	2013		2012		2011			2010			2009
ASSETS
Cash	$	277,329	$	103,674	$	74,767		$	147,100		$	117,609
Prepaid asset management fees		24,250		-		-			-			-
Prepaid expenses		8,692		-		-			-			-
Other assets		15,448		43,305		-			-			-
Investments in Local Limited Partnerships, net		-		-		-			-			-
Total Assets	$	325,719	$	146,979	$	74,767		$	147,100		$	117,609
LIABILITIES
Accrued expenses	$	446	$	-	$	-		$	-		$	-
Accrued fees and expenses due to General Partner and affiliates		-		101,181		345,656			259,216			219,475
Total Liabilities		446		101,181		345,656			259,216			219,475
PARTNERS’ EQUITY (DEFICIT)		325,273		45,798		(270,889	)		(112,116	)		(101,866	)
Total Liabilities and Partners’ Equity (Deficit)	$	325,719		146,979	$	74,767		$	147,100		$	117,609

The Partnership was not designed to provide operating cash distributions to Limited Partners. It is possible that the Partnership could make distributions from sale proceeds, if the Partnership is able to sell its Local Limited Partnership Interests or Housing Complexes for more than the related closing costs and any then accrued obligations of the Partnership. There can be no assurance in this regard. Any distributions would be made in accordance with the terms of the Partnership Agreement. For all periods presented there were no cash distributions to the Limited Partners.

21d) No securities are authorized for issuance by the Partnership under equity compensation plans.

~~Selected results~~e) ofThe ~~operations,~~Partnership ~~cash~~does ~~flows~~not ~~and~~issue ~~other~~common ~~information for the Partnership are as follows:~~stock.

	For the Years Ended March 31,
	2013			2012			2011			2010			2009
Loss from operations (Note 1)	$	(79,935	)	$	(102,309	)	$	(158,961	)	$	(10,448	)	$	(1,059,330	)
Gain on sale of Local Limited Partnerships (Note 2)		359,383			392,308			-			-			13,542
Interest income		27			34			188			198			103
Net income (loss)	$	279,475		$	290,033		$	(158,773	)	$	(10,250	)	$	(1,045,685	)
Net income (loss) allocated to:
General Partner	$	2,795		$	2,900		$	(1,588	)	$	(103	)	$	(10,457	)
Limited Partners	$	276,680		$	287,133		$	(157,185	)	$	(10,147	)	$	(1,035,228	)
Net income (loss) per Partnership Unit	$	27.77		$	28.71		$	(15.72	)	$	(1.01	)	$	(103.52	)
Outstanding weighted Partnership Units		9,962			10,000			10,000			10,000			10,000

f)	No unregistered securities were sold by the Partnership during the year ended March 31, 2015.

~~Note 1~~Item -5b. ~~Loss~~Use ~~from operations for the years ended March 31, 2013, 2012, 2011, 2010, and 2009 includes a charge for impairment losses on investments in Local Limited Partnerships~~ of ~~$0, $0, $0, $0, and $1,015,863, respectively (See Note 2 to the financial statements).~~Proceeds

	For the Years Ended March 31,
	2013			2012			2011			2010		2009
Net cash provided by (used in):
Operating activities	$	(218,718	)		(388,967	)	$	(72,333	)	$	29,491	$	(29,083	)
Investing activities		392,373			417,874			-			-		19,468
Net change in cash		173,655			28,907			(72,333	)		29,491		(9,615	)
Cash, beginning of period		103,674			74,767			147,100			117,609		127,224
Cash, end of period	$	277,329			103,674		$	74,767		$	147,100	$	117,609

NOT APPLICABLE

22Item 5c. Purchases of Equity Securities by the Issuer and Affiliated Purchasers

~~Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations~~NONE

~~Forward Looking Statements~~18

~~With the~~Item ~~exception~~6. Selected ~~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-K 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.Data

~~Risks and~~Selected ~~uncertainties~~balance ~~inherent~~sheet ininformation ~~forward~~for ~~looking statements include, but are not limited to,~~ the Partnership’s ~~future~~is ~~cash flows~~as and ability to obtain sufficient financing, level of operating expenses, conditions in the Low Income Housing Tax Credits property market and the economy in general, changes in law rules and regulations, and legal proceedings. Historical results are not necessarily indicative of the operating results for any future period.follows:

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-K and in other reports filed with the Securities and Exchange Commission. The following discussion should be read in conjunction with the financial statements and the notes thereto included elsewhere in this filing.

	March 31,
	2015		2014		2013		2012		2011

ASSETS
Cash	$	180,631	$	227,091	$	277,329	$	103,674	$	74,767
Prepaid asset management fees		-		-		24,250		-		-
Prepaid expenses		-		-		8,692		-		-
Other assets		57,286		1,611		15,448		43,305		-
Investments in Local Limited Partnerships, net		-		-		-		-		-

Total Assets	$	237,917	$	228,702	$	325,719	$	146,979	$	74,767

LIABILITIES
Accrued expenses	$	-	$	-	$	446	$	-	$	-
Accrued fees and expenses due to General Partner and affiliates		46,708		13,217		-		101,181		345,656

Total Liabilities		46,708		13,217		446		101,181		345,656

PARTNERS' EQUITY (DEFICIT)		191,209		215,485		325,273		45,798		(270,889	)

Total Liabilities and Partners’ Equity (Deficit)	$	237,917	$	228,702	$	325,719	$	146,979	$	74,767

~~Critical Accounting Policies and Certain Risks and Uncertainties~~19

~~The Partnership~~Selected ~~believes~~results ~~that~~of ~~the following discussion addresses the Partnership’s most significant accounting policies~~operations, ~~which are~~cash ~~the~~flows ~~most critical to aid in fully understanding~~ and ~~evaluating~~other ~~the~~information ~~Partnership’s~~for ~~reported financial results, and certain of~~ the Partnership’s ~~risks~~are ~~and~~as ~~uncertainties.~~follows:

Use of Estimates

	For the Years Ended March 31,
	2015			2014				2013			2012			2011

Loss from operations	$	(40,052	)		$	(91,661	)	$	(79,935	)	$	(102,309	)	$	(158,961	)
Gain (loss) on sale of Local Limited Partnerships		36,580				(18,215	)		359,383			392,308			-
Interest income		64				88			27			34			188
Net income (loss)	$	(3,408	)		$	(109,788	)	$	279,475		$	290,033		$	(158,773	)

Net income (loss) allocated to:
General Partner	$	(34	)		$	(1,098	)	$	2,795		$	2,900		$	(1,588	)

Limited Partners	$	(3,374	)		$	(108,690	)	$	276,680		$	287,133		$	(157,185	)

Net income (loss) per Partnership Unit	$	(0.34	)		$	10.94		$	27.77		$	28.71		$	(15.72	)

Outstanding weighted Partnership Units		9,939				9,939			9,962			10,000			10,000

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.

	For the Years Ended March 31,
	2015			2014			2013			2012			2011

Net cash provided by (used in):

Operating activities	$	(62,172	)	$	(25,434	)	$	(206,462	)	$	(357,673	)	$	(72,333	)
Investing activities		36,580			(24,804	)		380,117			386,580			-
Financing activities		(20,868	)		-			-			-			-

Net change in cash		(46,460	)		(50,238	)		173,655			28,907			(72,333	)

Cash, beginning of period		227,091			277,329			103,674			74,767			147,100

Cash, end of period	$	180,631		$	227,091		$	277,329		$	103,674		$	74,767

~~Method of Accounting for Investments in Local Limited Partnerships~~20

~~The Partnership~~Item ~~accounts~~7. Management's ~~for~~Discussion 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~~Analysis ~~any contributions made and distributions received. The Partnership reviews the carrying amount~~ of anFinancial ~~individual~~Condition investment in a Local Limited Partnership for possible impairment at least annually or 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 product of the remaining future Low Income Housing Tax Credits estimated to be allocable to the Partnership and ~~any~~Results ~~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 were being amortized over 30 years (See Notes 2 and 3 to the financial statements).Operations

23Forward Looking Statements

~~“Equity in~~With ~~losses~~the exception of ~~Local~~the ~~Limited~~discussion ~~Partnerships”~~regarding ~~for~~historical ~~each~~information, ~~year~~this ~~ended~~“Management’s ~~March~~Discussion 31and ~~has~~Analysis ~~been~~of ~~recorded~~Financial byCondition ~~the~~and ~~Partnership~~Results ~~based on the twelve months~~ of ~~reported~~Operations” ~~results~~and ~~provided~~other bydiscussions ~~the~~elsewhere ~~Local~~in ~~Limited~~this ~~Partnerships~~Form ~~for~~10-K ~~each~~contain ~~year~~forward ~~ended~~looking ~~December 31~~statements. Such ~~Equity~~statements inare ~~losses from~~based ~~the~~on ~~Local~~current ~~Limited~~expectations ~~Partnerships~~subject ~~allocated~~ to ~~the~~uncertainties ~~Partnership~~and isother ~~not~~factors ~~recognized~~which tomay ~~the~~involve ~~extent~~known ~~that~~and ~~the~~unknown ~~investment~~risks ~~balance~~that ~~would be~~could ~~adjusted~~cause ~~below~~actual ~~zero.~~results Ifof ~~the~~operations ~~Local~~to ~~Limited~~differ ~~Partnerships~~materially ~~report~~from ~~net~~those ~~income~~projected inor ~~future years~~implied. Further, ~~the~~certain ~~Partnership~~forward-looking ~~will~~statements ~~resume~~are ~~applying the~~based ~~equity~~upon ~~method~~assumptions ~~only~~about ~~after~~future ~~its~~events ~~share~~which ofmay ~~such net income equals the share of net losses~~ not ~~recognized~~prove ~~during~~to ~~the~~be ~~period(s) the equity method was suspended~~accurate.

~~Distributions received~~Risks ~~from~~and ~~the~~uncertainties ~~Local~~inherent ~~Limited~~in ~~Partnerships~~forward looking statements include, but are ~~accounted~~not ~~for~~limited asto, athe ~~reduction~~Partnership’s future cash flows and ability to obtain sufficient financing, level of operating expenses, conditions in the ~~investment~~Low ~~balance.~~Income ~~Distributions~~Housing ~~received after~~Tax Credits property market and the ~~investment~~economy ~~has~~in ~~reached~~general, ~~zero~~changes in law rules and regulations, and legal proceedings. Historical results are ~~recognized~~not asnecessarily ~~distribution~~indicative ~~income~~of the operating results for any future period.

~~In accordance~~Subsequent ~~with~~written ~~the~~and ~~accounting~~oral ~~guidance~~forward ~~for~~looking ~~the~~statements ~~consolidation~~attributable ofto ~~variable interest entities,~~ the Partnership ~~determines~~or ~~when~~persons ~~it should~~acting ~~include~~on ~~the~~its ~~assets,~~behalf ~~liabilities,~~are ~~and~~expressly ~~activities~~qualified ofin atheir ~~variable~~entirety ~~interest~~by ~~entity~~cautionary ~~(VIE)~~statements in ~~its~~this ~~financial~~Form ~~statements,~~10-K and ~~when it~~in ~~should~~other ~~disclose~~reports ~~information~~filed ~~about~~with ~~its~~the ~~relationship~~Securities ~~with~~and aExchange ~~VIE~~Commission. The ~~analysis~~following ~~that~~discussion ~~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, which must~~ be ~~consolidated~~read byin aconjunction ~~company~~with ~~if it is~~ the ~~primary~~financial ~~beneficiary~~statements ~~because it has (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance~~ and ~~(2)~~ the ~~obligation~~notes tothereto ~~absorb~~included ~~losses~~elsewhere orin ~~receive benefits~~this ~~that could potentially be significant to the VIE~~filing. If multiple unrelated parties share such power, as defined, no party will be required to consolidate the VIE. Further, the guidance requires continual reconsideration of the primary beneficiary of a VIE.

~~Based on~~Critical ~~this~~Accounting ~~guidance,~~Policies the Local Limited Partnerships in which the Partnership invests meet the definition of a VIE because the owners of the equity at risk in these entities do not have the power to direct their operations. However, management does not consolidate the Partnership’s interests in these VIEs, as it is not considered to be the primary beneficiary since it does not have the power to direct the activities that are considered most significant to the economic performance of these entities. The Partnership currently records the amount of its investment in these Local Limited Partnerships as an asset on its balance sheets, recognizes its share of partnership income or losses in the statements of operations, and ~~discloses~~Certain ~~how~~Risks it accounts for material types of these investments in its financial statements. The Partnership’s balance in investment in Local Limited Partnerships, plus the risk of recapture of tax credits previously recognized on these investments, represents its maximum exposure to loss. The Partnership’s exposure to loss on these Local Limited Partnerships is mitigated by the condition and ~~financial performance of the underlying Housing Complexes as well as the strength of the Local General Partners and their guarantee against credit recapture to the investors in the Partnership.~~Uncertainties

~~Income Taxes~~The Partnership believes that the following discussion addresses the Partnership’s most significant accounting policies, which are the most critical to aid in fully understanding and evaluating the Partnership’s reported financial results, and certain of the Partnership’s risks and uncertainties.

~~The Partnership~~Use ~~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. Income tax returns filed by the Partnership are subject to examination by the Internal Revenue Service for a period of three years. While no income tax returns are currently being examined by the Internal Revenue Service, tax years since 2009 remain open.Estimates

~~Impact~~ The preparation of ~~Recent~~financial ~~Accounting~~statements ~~Pronouncements~~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.

~~In June~~Method ~~2009, the FASB issued an amendment to the accounting and disclosure requirements for the consolidation~~ of ~~variable~~Accounting interest entities (VIEs). The amended guidance modified the consolidation model to one based on control and economics, and replaced 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~~Investments ofin ~~whether an~~Local ~~entity~~Limited is a VIE. Additionally, the amendment requires enhanced and expanded disclosures around VIEs. This amendment was effective for fiscal years beginning after November 15, 2009. The adoption of this guidance on April 1, 2011 did not have a material effect on the Partnership’s financial statements.Partnerships

24The 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 at least annually or 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 product of the remaining future Low Income Housing Tax Credits estimated to be allocable to the Partnership and any 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 were being amortized over 30 years (See Note 2 to the financial statements).

In May 2011, the FASB issued an update to existing guidance related to fair value measurements on how to measure fair value and what disclosures to provide about fair value measurements. For fair value measurements categorized as level 3, a reporting entity should disclose quantitative information of the unobservable inputs and assumptions, a description of the valuation processes and narrative description of the sensitivity of the fair value to changes in unobservable inputs. This update is effective for interim and annual periods beginning after December 15, 2011. The adoption of this update did not materially affect the Partnership’s financial statements.21

~~Certain Risks~~“Equity ~~and~~in ~~Uncertainties~~losses of Local Limited Partnerships” for each year ended March 31 has been recorded by the Partnership based on the twelve months of reported results provided by the Local Limited Partnerships for each year ended December 31. Equity in losses from the Local Limited Partnerships allocated to the Partnership is not recognized to the extent that the investment balance would be adjusted below zero. If the Local Limited Partnerships report 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 Item~~Distributions 1Areceived from the Local Limited Partnerships are accounted for as a ~~discussion~~reduction of ~~risks~~the ~~regarding~~investment balance. Distributions received after the ~~Partnership~~investment has reached zero are recognized as distribution income.

~~To date~~In accordance with the accounting guidance for the consolidation of variable interest entities, ~~certain~~the ~~Local~~Partnership ~~Limited~~determines ~~Partnerships~~when ~~have~~it ~~incurred~~should ~~significant~~include ~~operating~~the ~~losses~~assets, liabilities, and ~~have~~activities ~~working~~of ~~capital~~a ~~deficiencies~~variable interest entity (VIE) in its financial statements, and when it should disclose information about its relationship with a VIE. ~~In the~~The ~~event~~analysis ~~these~~that ~~Local~~must ~~Limited~~be ~~Partnerships~~performed ~~continue~~to determine which entity should consolidate a VIE focuses on control and economic factors. A VIE is a legal structure used to ~~incur~~conduct ~~significant~~activities ~~operating~~or ~~losses~~hold assets, ~~additional~~which ~~capital~~must ~~contributions~~be consolidated by ~~the~~ ~~Partnership~~a ~~and/or~~company if it is the ~~Local~~primary ~~General~~beneficiary ~~Partners~~because ~~may~~it behas ~~required~~(1) the power to ~~sustain~~direct the ~~operations~~activities of ~~such~~the ~~Local~~VIE ~~Limited~~that ~~Partnerships. If~~most ~~additional~~significantly ~~capital~~impact ~~contributions~~the ~~are~~VIE's ~~not~~economic ~~made~~performance ~~when~~and ~~they~~(2) ~~are~~the ~~required,~~obligation to absorb losses or receive benefits that could potentially be significant to the ~~Partnership’s~~VIE. ~~investment~~If inmultiple ~~certain~~unrelated ofparties share such ~~Local~~ ~~Limited~~power, ~~Partnerships~~as ~~could~~defined, no party will be ~~lost,~~required ~~and~~to consolidate the ~~loss~~VIE. ~~and~~Further, ~~recapture~~the ofguidance ~~the~~requires ~~related~~continual ~~Low~~reconsideration ~~Income~~of ~~Housing~~the ~~Tax~~primary ~~Credits~~beneficiary ~~could~~of ~~occur~~a VIE.

~~Financial Condition~~Based on this guidance, the Local Limited Partnerships in which the Partnership invests meet the definition of a VIE because the owners of the equity at risk in these entities do not have the power to direct their operations. However, management does not consolidate the Partnership's interests in these VIEs, as it is not considered to be the primary beneficiary since it does not have the power to direct the activities that are considered most significant to the economic performance of these entities. The Partnership currently records the amount of its investment in these Local Limited Partnerships as an asset on its balance sheets, recognizes its share of partnership income or losses in the statements of operations, and discloses how it accounts for material types of these investments in its financial statements. The Partnership's balance in investment in Local Limited Partnerships, plus the risk of recapture of tax credits previously recognized on these investments, represents its maximum exposure to loss. The Partnership's exposure to loss on these Local Limited Partnerships is mitigated by the condition and financial performance of the underlying Housing Complexes as well as the strength of the Local General Partners and their guarantee against credit recapture to the investors in the Partnership.

~~For the~~Income ~~year ended March 31, 2013~~Taxes

The Partnership’s ~~assets~~has atelected ~~March~~to ~~31,~~be ~~2013~~treated ~~consisted~~as ofa ~~$277~~pass-through entity for income tax purposes and,~~000~~ inas ~~cash~~such, ~~$24~~is not subject to income taxes. Rather,~~000~~ inall ~~prepaid~~items ~~asset~~of ~~management~~taxable ~~fees~~income, $9deductions 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,~~000~~ the Partnership is not required to take any tax positions in ~~prepaid~~ ~~expenses,~~order to qualify as a pass-through entity. The Partnership is required to file and ~~$15~~does file tax returns with the Internal Revenue Service and other taxing authorities. Accordingly,~~000~~ inthese financial statements do not reflect a provision for income taxes and the Partnership has no other ~~assets~~tax positions which must be considered for disclosure. ~~Liabilities~~Income attax ~~March 31,~~returns ~~2013~~filed ~~consisted~~by ofthe ~~$500~~Partnership are subject to examination by the Internal Revenue Service for a period of ~~accrued~~three ~~expenses~~years. While no income tax returns are currently being examined by the Internal Revenue Service, tax years since 2011 remain open.

~~Results of Operations~~22

~~Year Ended~~Impact ~~March 31, 2013 Compared to Year Ended March 31, 2012 The Partnership’s net income for the year ended March 31, 2013 was $279,000, reflecting a decrease~~ of ~~$(11,000)~~Recent ~~from~~Accounting the net income experienced for the year ended March 31, 2012 of $290,000. There was a $(33,000) decrease in gain on sale of Local Limited Partnerships for the year ended March 31, 2013. The gain on sale of Local Limited Partnerships will vary from period to period depending on the values and sale prices of the housing complexes that have been identified for disposition and the closing dates of such transactions. There was a decrease in accounting and legal fees of $10,000 for the year ended March 31, 2013 compared to the year ended March 31, 2012, due to the timing of the accounting work performed. Asset management fees decreased by $10,000 during the year ended March 31, 2013. The fees are calculated based on the value of invested assets, which decreased due to the sales of Local Limited Partnerships. Write off of advances to Local Limited Partnerships decreased by $19,000 for the year ended March 31, 2013. The advances and write offs vary from period to period based on the needs of the Local Limited Partnerships. The write off of other assets increased by $(26,000) during the year ended March 31, 2013. Capitalized costs from potential disposition of Local Limited Partnership were expensed due to the length of time it has taken to dispose of the properties. During the year ended March 31, 2013 the Partnership received $10,000 more in total operating income. Reporting fees and distribution income fluctuate from year to year due to the fact that the Local Limited Partnerships pay those fees to the Partnership when the Local Limited Partnerships’ cash flow will allow for the payment.Pronouncements

25In January 2014, the FASB issued an amendment to the accounting and disclosure requirements for investments in qualified affordable housing projects. The amendments provide guidance on accounting for investments by a reporting entity in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the low-income housing tax credit. The amendments permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received, and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments are effective for interim and annual periods beginning after December 15, 2014 and should be applied retrospectively to all periods presented. Early adoption is permitted. The adoption of this update is not expected to materially affect the Partnership's financial statements.

~~Year Ended~~In ~~March~~February 312015, ~~2012~~the ~~Compared~~FASB toissued ~~Year~~ASU ~~Ended~~No. ~~March 31~~2015-02, ~~2011~~“Consolidation ~~The~~(Topic ~~Partnership’s~~810): ~~net~~Amendments ~~income~~to ~~for~~ the ~~year~~Consolidation ~~ended~~Analysis”. ~~March~~This ~~31, 2012~~will ~~was~~improve ~~$290,000,~~certain ~~reflecting~~areas ~~an increase~~ of ~~$449,000~~consolidation ~~from~~guidance ~~the net loss experienced~~ for ~~the~~reporting ~~year~~organizations ~~ended~~that ~~March~~are ~~31,~~required ~~2011~~to ofevaluate ~~$(159,000). The~~whether ~~change in largely due~~ to ~~the~~consolidate ~~$392,308~~certain ~~increase~~legal inentities ~~gain~~such onas ~~sale~~limited ofpartnerships, ~~Local~~limited ~~Limited~~liability ~~Partnerships~~corporations ~~for~~and ~~the~~securitization ~~year ended March 31, 2012~~structures. ~~The~~ASU ~~gain~~2015-02 onsimplifies ~~sale~~and ofimproves ~~Local~~GAAP ~~Limited~~by: ~~Partnerships~~eliminating ~~will vary from period to period depending on~~ the ~~values~~presumption ~~and sale prices of the housing complexes~~ that ~~have~~a ~~been~~general ~~identified~~partner ~~for~~should ~~disposition~~consolidate ~~and the closing dates of such transactions. There was~~ a ~~decrease in~~limited ~~accounting and legal fees of $110~~partnership,~~000~~ ~~for~~eliminating the ~~year~~indefinite ~~ended~~deferral ~~March~~of ~~31,~~FASB ~~2012~~Statement ~~compared to the year ended March 31, 2011~~No. ~~All filings were brought current during the year ended March 31~~167, ~~2011,~~ thereby ~~increasing~~reducing the ~~expense~~number ~~for~~of ~~that~~Variable ~~year.~~Interest ~~Distribution~~Entity ~~income~~(VIE) ~~decreased by~~consolidation ~~$15,000~~models ~~for~~from ~~the~~four ~~year~~to ~~ended~~two ~~March~~(including ~~31, 2012 due to~~ the ~~fact~~limited ~~that~~partnership ~~Local~~consolidation ~~Limited~~model) ~~Partnerships~~and ~~pay~~clarifying ~~distribution income to the Partnership~~ when ~~the Local Limited Partnerships’ cash flow will allow for the payment. Asset management~~ fees ~~decreased~~paid byto ~~$7,000~~a ~~during the~~decision ~~year~~maker ~~ended~~should ~~March~~be ~~31,~~a ~~2012.~~factor ~~The~~to ~~fees~~include ~~are~~in ~~calculated based on~~ the ~~value~~consolidation of ~~invested assets, which decreased due to the sales of Local Limited Partnerships~~VIEs. ~~There~~ASU ~~was~~2015-02 awill ~~$(31,000)~~be ~~increase~~effective ~~in write off of advances to Local Limited Partnerships~~ for ~~the~~periods ~~year ended~~beginning ~~March~~after 31December 15, ~~2012~~2015. The ~~advances~~Partnership ~~and~~is ~~write~~currently ~~offs~~evaluating ~~vary~~the ~~from~~potential ~~year~~impact toof ~~year based on~~ the ~~needs~~adoption of ~~the~~this ~~Local~~guidance ~~Limited~~on ~~Partnerships~~its financial statements.

~~Liquidity~~Certain Risks and ~~Capital Resources~~Uncertainties

~~Year Ended~~See ~~March~~Item ~~31,~~1A ~~2013~~for ~~Compared to Year Ended March 31, 2012 The net increase in cash during the year ended March 31, 2013 was $174,000 compared to~~ a ~~net~~discussion ~~increase in cash for the year ended March 31, 2012~~ of ~~$29,000.~~risks ~~During~~regarding the ~~year ended March 31, 2013 the~~ Partnership ~~received $392,000 in proceeds from sale of Local Limited Partnerships compared to $418,000 received during the year ended March 31, 2012~~. The Partnership paid $(137,000) of accrued asset management fees of during the year ended March 31, 2013 compared to $(223,000) paid during the year ended March 31, 2012. In addition, the Partnership reimbursed the General Partner or an affiliate accrued operating expenses paid on its behalf of $(103,000) during the year ended March 31, 2013 compared to $(186,000) reimbursed during the year ended March 31, 2012. During the year ended March 31, 2013 the Partnership received $10,000 more in total operating income as discussed above.

~~Year Ended~~To ~~March 31~~date, ~~2012~~certain ~~Compared~~Local toLimited ~~Year~~Partnerships ~~Ended~~have ~~March~~incurred ~~31,~~significant ~~2011~~operating ~~The~~losses ~~net~~and ~~increase~~have inworking ~~cash~~capital ~~during~~deficiencies. In the ~~year~~event ~~ended~~these ~~March~~Local ~~31,~~Limited ~~2012~~Partnerships ~~was $29,000~~continue ~~compared~~ to aincur ~~net~~significant ~~decrease~~operating ~~in cash for the year ended March 31~~losses, ~~2011~~additional ofcapital ~~$(72,000).~~contributions ~~During~~by the ~~year~~Partnership ~~ended~~and/or ~~March~~the ~~31,~~Local ~~2012 the~~General ~~Partnership~~Partners ~~received~~may ~~$417,000~~be inrequired ~~proceeds~~to ~~from~~sustain ~~sale~~the operations of such Local Limited Partnerships. If ~~compared~~additional tocapital nocontributions ~~such~~are ~~proceeds~~not ~~received~~made ~~during the~~when ~~year~~they ~~ended~~are ~~March 31~~required, ~~2011.~~the ~~The~~ Partnership’s ~~repaid~~investment ~~$(223,000)~~in ofcertain ~~accrued asset management fees~~ of ~~during~~such ~~the~~Local ~~year~~Limited ~~ended~~Partnerships ~~March 31,~~could ~~2012~~be ~~compared to $(20~~lost,~~000)~~ ~~paid~~and ~~during~~ the ~~year~~loss ~~ended~~and ~~March~~recapture ~~31, 2011. In addition, the Partnership reimbursed the General Partner or an affiliate accrued operating expenses paid on its behalf~~ of ~~$(186,000) during~~ the ~~year~~related ~~ended~~Low ~~March~~Income ~~31,~~Housing ~~2012~~Tax ~~compared to~~Credits ~~$(92,000)~~could ~~reimbursed during the year ended March 31, 2011~~occur.

~~Future Contractual~~Financial ~~Cash Obligations~~Condition

~~The following~~As ~~table summarizes the Partnership’s future contractual cash obligations as~~ of March 31, ~~2013:~~2015

	2014		2015		2016		2017		2018		Thereafter		Total
Asset management fees(1)	$	-	$	4,182	$	14,216	$	14,216	$	14,216	$	454,912	$	501,742
Total contractual cash obligations	$	-	$	4,182	$	14,216	$	14,216	$	14,216	$	454,912	$	501,742

The Partnership’s assets at March 31, 2015 consisted of $181,000 in cash and $57,000 in other assets. Liabilities at March 31, 2015 consisted of $47,000 of accrued fees and expenses.

(1) Asset management fees are payable annually until termination of the Partnership, which is to occur no later than December 31, 2050. The estimate of the fees payable included herein assumes the retention of the Partnership’s interest in all Housing Complexes until December 31, 2050. Amounts due to the General Partner as of March 31, 2013 have been included in the 2014 column. Due to the amount of the prepaid asset management fees as shown on the balance sheets, no payments are expected until 2015. The General Partner does not anticipate that these fees will be paid until such time as capital reserves are in excess of the aggregate of the existing contractual obligations and the anticipated future foreseeable obligations of the Partnership.23

~~For additional~~Results ~~information~~of ~~regarding our asset management fees, see Note 3 to the financial statements included elsewhere herein.~~Operations

26Year Ended March 31, 2015 Compared to Year Ended March 31, 2014 The Partnership’s net loss for the year ended March 31, 2015 was $3,000, reflecting a decrease of $107,000 from the net loss experienced for the year ended March 31, 2014 of $110,000. The decrease in net loss was partially due to a $37,000 gain on sale of Local Limited Partnerships for the year ended March 31, 2015 compared to the loss of $18,000 for the year ended March 31, 2014. The gain and loss on sale of Local Limited Partnerships will vary from period to period depending on the values and sale prices of the housing complexes that have been identified for disposition and the closing dates of such transactions. There was an decrease in accounting and legal fees of $20,000 for the year ended March 31, 2015 compared to the year ended March 31, 2014, due to the timing of the accounting work performed. Asset management fees decreased by $6,000 during the year ended March 31, 2015. The fees are calculated based on the value of invested assets, which decreased due to the sales of Local Limited Partnerships. Write off of advances to Local Limited Partnerships decreased by $7,000 for the year ended March 31, 2015. The advances and write offs vary from period to period based on the needs of the Local Limited Partnerships. The write off of other assets decreased by $4,000 during the year ended March 31, 2015. Capitalized costs from potential disposition of Local Limited Partnership were expensed due to the length of time it has taken to dispose of the properties. Professional services decreased by $2,000 for the year ended March 31, 2015 due to the timing of consulting work performed. During the year ended March 31, 2015 the Partnership received $1,000 more in total operating income. Reporting fees and distribution income fluctuate from year to year due to the fact that the Local Limited Partnerships pay those fees to the Partnership when the Local Limited Partnerships’ cash flows will allow for the payment. Other expenses decreased by $11,000 during the year ended March 31, 2015, due to a decrease in licensing and fees related to Local Limited Partnerships.

~~Other Matters~~Year Ended March 31, 2014 Compared to Year Ended March 31, 2013 The Partnership’s net loss for the year ended March 31, 2014 was $110,000, reflecting a decrease of $389,000 from the net income experienced for the year ended March 31, 2013 of $279,000. The decrease in net income was partially due to an $18,000 loss on sale of a Local Limited Partnership for the year ended March 31, 2014 compared to the gain of $359,000 for the year ended March 31, 2013. The gain on sale of Local Limited Partnerships will vary from period to period depending on the values and sale prices of the housing complexes that have been identified for disposition and the closing dates of such transactions. There was an increase in accounting and legal fees of $12,000 for the year ended March 31, 2014 compared to the year ended March 31, 2013, due to the timing of the accounting work performed. Asset management fees decreased by $1,000 during the year ended March 31, 2014. The fees are calculated based on the value of invested assets, which decreased due to the sales of Local Limited Partnerships. Write off of advances to Local Limited Partnerships decreased by $6,000 for the year ended March 31, 2014. The advances and write offs vary from period to period based on the needs of the Local Limited Partnerships. The write off of other assets decreased by $21,000 during the year ended March 31, 2014. Capitalized costs from potential disposition of Local Limited Partnership were expensed due to the length of time it has taken to dispose of the properties. Professional services decreased by $8,000 for the year ended March 31, 2014 due to the timing of consulting work performed. During the year ended March 31, 2014 the Partnership received $25,000 less in total operating income. Reporting fees and distribution income fluctuate from year to year due to the fact that the Local Limited Partnerships pay those fees to the Partnership when the Local Limited Partnerships’ cash flows will allow for the payment.

During the year ended March 31, 2012 the General Partner of Yantis Housing, Ltd. (Yantis) passed away. This compelled Shelter Resource Corporation, an affiliate of the Partnership, to take on the responsibility of the General Partner. During this time, Yantis fell into disrepair and was required by the United States Department of Agriculture (USDA RA) to address these issues. As of the date of this report, only a portion of the issues have been addressed. USDA RA suspended rental assistance for Yantis in April 2011.24

~~As of~~Liquidity ~~May 2011 Yantis started under new management. The team has been diligently working with the USDA RA on obtaining past~~ and ~~future rental~~Capital ~~assistance and was able to collect assistance starting in July 2011. The assistance payments prior to July 2011 are still in question.~~Resources

~~Prior~~ Year Ended March 31, 2015 Compared to Year Ended March 31, 2014 The net decrease in cash during the ~~changes~~year ended March 31, 2015 was $46,000 compared to a net decrease in ~~management~~cash for the year ended March 31, ~~Yantis~~2014 of $50,000. The change was mainly due to the $37,000 net proceeds received ~~physical~~for ~~inspections~~the ~~from~~disposition of the ~~State~~Local ~~Housing~~Limited ~~Agency.~~Partnerships Asduring the year ended March 31, 2015 compared to net payment of $18,000 made during the ~~date~~year ended March 31, 2014. During the year ended March 31, 2015, the partnership made no advances to the Local Limited Partnership compared to $7,000 in advances during the year ended March 31, 2014. The advances vary from period to period based on the needs of ~~this~~the ~~report~~Local Limited Partnerships. The Partnership paid $6, ~~some~~000 of accrued asset management fees during the ~~issues~~year ~~noted~~ended inMarch 31, 2015 compared to no payments made during the ~~inspection~~year ~~have~~ended ~~not~~March ~~been~~31, ~~addressed~~2014. In Asaddition, the Partnership reimbursed the General Partner or an affiliate accrued operating expenses paid on its behalf of ~~December~~$77,000 during the year ended March 31, ~~2012~~2015 compared to $52,000 reimbursed during the ~~replacement~~year ~~reserve~~ended ~~balance~~March ~~was~~ 31, 2014. The reimbursements of operating expenses and accrued asset management fees are paid after management reviews the cash position of the Partnership. During the year ended March 31, 2015 the Partnership received $61,~~412~~000 more in total operating income. Reporting fees and distribution income fluctuate from year to year due to the fact that the Local Limited Partnerships pay those fees to the Partnership when the Local Limited Partnerships’ cash flows will allow for the payment.

~~Due~~ Year Ended March 31, 2014 Compared to Year Ended March 31, 2013 The net decrease in cash during the ~~outstanding~~year ~~issues~~ended ~~from~~March 31, 2014 was $50,000 compared to a net increase in cash for the ~~inspection~~year ended March 31, 2013 of $174,000. The change was mainly due to the ~~State~~$18,000 ~~Housing~~net ~~Agency~~payments ismade ~~requesting~~for ~~management~~the disposition of ~~Yantis~~the Local Limited Partnerships during the year ended March 31, 2014 compared to ~~attend~~net anproceeds ~~informal conference~~of $392,000 received during the year ended March 31, 2013. The ~~State~~write ~~Housing~~off ~~Agency~~of isadvances ~~considering~~to ~~implementing~~Local ~~administrative~~Limited ~~penalties~~Partnership ~~for~~decreased ~~violations~~by of$6,000 during the ~~United~~year ~~Productions and~~ended ~~Service~~March ~~Company~~31, ~~(UPCS)~~2014. ~~local~~The ~~safety~~advances and ~~building~~write ~~codes~~offs vary from period to period based on the needs of the Local Limited Partnerships. ToThe ~~date,~~Partnership ~~Shelter~~paid ~~Resource~~no ~~Corporation~~accrued ~~has~~asset ~~funded~~management ~~approximately~~fees during the year ended March 31, 2014 compared to $38137,~~910 for~~000 ~~property~~paid ~~updates~~during the year ended March 31, 2013. In Asaddition, ofthe Partnership reimbursed the ~~date~~General Partner or an affiliate accrued operating expenses paid on its behalf of ~~this~~$52,000 ~~report~~during the year ended March 31, 2014 compared to $103,000 reimbursed during the ~~property~~year isended ~~assigned~~March 31, 2013. During the year ended March 31, 2014 the Partnership received $25,000 less in total operating income. Reporting fees and distribution income fluctuate from year to year due to the ~~Structured~~fact ~~Asset~~that ~~Group~~the soLocal Limited Partnerships pay those fees to the ~~situation~~Partnership ~~can be~~when ~~closely~~the ~~monitored~~Local Limited Partnerships’ cash flows will allow for the payment.

~~As of~~Future ~~the~~Contractual ~~date~~Cash of this report, local counsel is working to reinstate the Local Limited Partnership. Once these actions have been properly implemented the Partnership will proceed with selling its portion of interest in the Local Limited Partnership. Presently, no sales date has been established. As of all periods presented, the investment balance was zero and the Compliance Period had ended.Obligations

~~Off-Balance Sheet~~The ~~Arrangements~~following table summarizes the Partnership’s future contractual cash obligations as of March 31, 2015:

The Partnership has no off-balance sheet arrangements.

	2016		2017		2018		2019		2020		Thereafter		Total

Asset management fees(1)	$	60,143	$	13,435	$	13,435	$	13,435	$	13,435	$	403,050	$	516,933
Total contractual cash obligations	$	60,143	$	13,435	$	13,435	$	13,435	$	13,435	$	403,050	$	516,933

~~Exit Strategy~~(1) Asset management fees are payable annually until termination of the Partnership, which is to occur no later than December 31, 2050. The estimate of the fees payable included herein assumes the retention of the Partnership’s interest in all Housing Complexes owned at March 31, 2015 until December 31, 2050. Amounts due to the General Partner as of March 31, 2015 have been included in the 2016 column. The General Partner does not anticipate that these fees will be paid until such time as capital reserves are in excess of the aggregate of the existing contractual obligations and the anticipated future foreseeable obligations of the Partnership.

~~See Item~~For 1additional ~~for~~ information inregarding ~~this~~our ~~regard~~asset management fees, see Note 3 to the financial statements included elsewhere herein.

~~Impact of~~Off-Balance ~~Recent~~Sheet ~~Accounting Pronouncements~~Arrangements

~~See footnote~~The 1Partnership tohas ~~the~~no ~~audited~~off-balance ~~financial~~sheet ~~statements~~arrangements.

~~Item 7A.~~Exit ~~Quantitative and Qualitative Disclosures Above Market Risk~~Strategy

~~NOT APPLICABLE~~See Item 1 for information in this regard.

27Impact of Recent Accounting Pronouncements

~~Item 8.~~See ~~Financial~~footnote ~~Statements~~1 ~~and~~to ~~Supplementary~~the ~~Data~~audited financial statements.

~~Index~~Item to7A. Quantitative ~~Financial Statements~~and Qualitative Disclosures Above Market Risk

		PAGE
Reports of Independent Registered Public Accounting Firms		F-1
Balance Sheets as of March 31, 2013 and 2012		F-3
Statements of Operations for the years ended March 31, 2013, 2012 and 2011		F-4
Statements of Partners’ Equity (Deficit) for the years ended March 31, 2013, 2012 and 2011		F-5
Statements of Cash Flows for the years ended March 31, 2013, 2012 and 2011		F-6
Notes to Financial Statements		F-7

NOT APPLICABLE

28Item 8. Financial Statements and Supplementary Data

~~Report of Independent Registered Public Accounting Firm~~25

ToReport ~~the Partners~~of Independent Registered Public Accounting Firm

~~WNC Housing~~To ~~Tax~~the ~~Credit Fund IV, L.P., Series 1~~Partners

~~We have audited the accompanying balance sheet of~~ WNC Housing Tax Credit Fund IV, L.P., Series 1 (the Partnership) as of March 31, 2013, and the related statements of operations, partners’ equity (deficit), and cash flows for the year then ended. The Partnership’s management is responsible for these financial statements. Our responsibility is to express an opinion on these financial statements based on our audit.

We ~~conducted~~ ~~our~~have ~~audit~~audited inthe ~~accordance~~accompanying ~~with~~balance ~~the~~sheets ~~standards~~ of ~~the~~WNC ~~Public~~Housing ~~Company~~Tax ~~Accounting~~Credit ~~Oversight~~Fund ~~Board~~IV, ~~(United States)~~L.P., ~~Those~~Series ~~standards require~~1 ~~that~~(the we"Partnership") ~~plan~~as ~~and~~of ~~perform~~March ~~the~~31, ~~audit~~2015 toand ~~obtain~~2014, ~~reasonable~~and ~~assurance about whether~~ the ~~financial~~related statements ~~are free~~ of ~~material misstatement. The Partnership is not required to have~~operations, ~~nor~~partners’ ~~were~~equity ~~we engaged to perform~~(deficit), anand ~~audit~~cash offlows ~~its~~for ~~internal~~each ~~control over financial reporting. Our audit included consideration~~ of ~~internal~~the ~~control~~years ~~over financial reporting as a basis for designing audit procedures that are appropriate~~ in the ~~circumstances,~~three-year ~~but~~period ~~not~~ended ~~for~~March ~~the~~31, ~~purpose~~2015. ofThe ~~expressing an opinion on the effectiveness of the~~ Partnership’s ~~internal~~ ~~control~~management ~~over~~is ~~financial~~responsible ~~reporting.~~for ~~Accordingly,~~these wefinancial ~~express~~statements. noOur ~~such~~responsibility ~~opinion.~~is Anto ~~audit~~express ~~also~~an ~~includes~~opinion ~~examining,~~ on athese ~~test basis, evidence supporting the amounts and disclosures in the~~ financial statements, ~~assessing~~based ~~the~~on ~~accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that~~ our ~~audit provides a reasonable basis for our opinion~~audits.

In We conducted our ~~opinion~~audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements ~~referred~~are tofree ~~above~~of ~~present~~material ~~fairly~~misstatement. The Partnership is not required to have, innor ~~all~~were ~~material~~we ~~respects~~engaged to perform, ~~the~~an audit of its internal control over financial ~~position~~reporting. Our audits included consideration of ~~WNC Housing~~internal ~~Tax~~control ~~Credit~~over ~~Fund~~financial ~~IV,~~reporting ~~L.P.~~as a basis for designing audit procedures that are appropriate in the circumstances, ~~Series~~but 1not asfor the purpose of ~~March~~expressing ~~31,~~an ~~2013~~opinion ~~and~~on the ~~results~~effectiveness of ~~its~~the ~~operations~~Partnership’s ~~and~~internal ~~its~~control ~~cash~~over ~~flows~~financial ~~for~~reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the ~~year then~~amounts ~~ended~~and disclosures in ~~conformity~~the ~~with~~financial statements, assessing the accounting principles ~~generally~~used ~~accepted~~and insignificant estimates made by management, as well as evaluating the ~~United~~overall ~~States~~financial ofstatement ~~America~~presentation. We believe that our audits provide a reasonable basis for our opinion.

~~Our~~In ~~audit~~our ~~was conducted for the purpose of forming an~~ opinion, on the ~~basic~~ financial statements ~~taken~~referred asto aabove ~~whole.~~present ~~The~~fairly, ~~schedule~~in ~~listed~~all ~~under~~material ~~Item~~respects, ~~15(a)(2) in~~ the ~~index~~financial ~~related~~position toof ~~the~~WNC ~~year~~Housing ~~ended~~Tax ~~March~~Credit 31Fund IV, ~~2013~~L.P., isSeries ~~presented~~1 ~~for~~as ~~the purpose~~ of ~~complying~~March ~~with~~31, ~~the~~2015 ~~Securities~~ and ~~Exchange Commission’s~~2014, ~~rules~~ and isthe ~~not~~results ~~part~~ of ~~the~~its ~~basic~~operations ~~financial~~and ~~statements.~~its ~~This~~cash ~~schedule~~flows ~~has~~for ~~been~~each ~~subjected~~of to the ~~auditing~~years ~~procedures applied~~in to the ~~audit~~three-year ofperiod ~~the~~ended ~~basic~~March ~~financial statements and~~31, ~~in our opinion~~2015, ~~fairly states~~ in ~~all~~conformity ~~material~~with ~~respects~~accounting ~~the~~principles ~~financial statement~~generally ~~data~~accepted ~~required to be set forth therein~~ in ~~relation to~~ the ~~basic~~United ~~financial~~States ~~statements~~of ~~taken as a whole~~America.

/Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The schedule listed under Item 15(a)(2) in the index related to each of the years in the three-year period ended March 31, 2015 is presented for the purpose of complying with the Securities and Exchange Commission's/ ~~CohnReznick~~rules ~~LLP~~and ~~Bethesda~~is not part of the basic financial statements. This schedule has been subjected to the auditing procedures applied to the audits of the basic financial statements and, ~~Maryland~~in ~~June~~our 7opinion, ~~2013~~fairly states in all material respects the financial statement data required to be set forth therein in relation to the basic financial statements taken as a whole.

~~F-1~~/s/CohnReznick LLP

~~REPORT OF~~Bethesda, ~~INDEPENDENT REGISTERED~~Maryland

~~PUBLIC ACCOUNTING~~June ~~FIRM~~17, 2015

~~To the Partners~~26

WNC ~~Housing~~HOUSING ~~Tax~~TAX ~~Credit Fund~~CREDIT FUND IV, L.P., ~~Series~~SERIES 1

~~We have audited the accompanying balance sheet of WNC Housing Tax Credit Fund IV, L.P., Series 1~~ (~~the~~A ~~Partnership)~~California asLimited ~~of March 31, 2012, and the related statements of operations, partners’ equity (deficit) and cash flows for each of the years in the two-year period ended March 31, 2012. The~~ Partnership~~’s management is responsible for these financial statements. Our responsibility is to express an opinion on these financial statements based on our audits.~~)

WeBALANCE conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Partnership is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.SHEETS

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of WNC Housing Tax Credit Fund, IV, L.P., Series 1 as of March 31, 2012, and the results of its operations and its cash flows for each of the years in the two-year period ended March 31, 2012, in conformity with accounting principles generally accepted in the United States of America.

	March 31,
	2015			2014
ASSETS
Cash	$	180,631		$	227,091
Other assets		57,286			1,611
Investments in Local Limited Partnerships, net (Notes 2 and 3)		-			-

Total Assets	$	237,917		$	228,702

LIABILITIES AND PARTNERS’ EQUITY (DEFICIT)

Liabilities:
Accrued fees and expenses due to General Partner and Affiliate	$	46,708		$	13,217

Total Liabilities		46,708			13,217

Partners’ Equity (Deficit)
General Partner		(92,261	)		(71,359	)
Limited Partners (10,000 Partnership Units authorized; 9,939 and 9,939, respectively, Partnership Units issued and outstanding)		283,470			286,844

Total Partners’ Equity (Deficit)		191,209			215,485

Total Liabilities and Partners’ Equity (Deficit)	$	237,917		$	228,702

~~Our~~See ~~audits~~accompanying ~~were~~notes ~~conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The schedules listed under Item 15(a)(2) in the index related~~ to ~~the years above are presented for the purpose of complying with the Securities and Exchange Commission’s rules and are not part of the basic~~ financial statements. These schedules have been subjected to the auditing procedures applied to the audits of the basic financial statements and, in our opinion, fairly state in all material respects the financial statement data required to be set forth therein in relation to the basic financial statements taken as a whole.

~~/s/ Reznick Group, P.C. Bethesda, Maryland June 20, 2012~~27

~~www~~WNC HOUSING TAX CREDIT FUND IV, L.~~reznickgroup~~P.~~com~~, SERIES 1

~~F-2~~(A California Limited Partnership)

~~WNC HOUSING~~STATEMENTS ~~TAX~~OF ~~CREDIT FUND IV, L.P., SERIES 1~~OPERATIONS

(A California Limited Partnership)

	For the Years Ended March 31,
	2015			2014			2013

Operating income:
Reporting fees	$	1,000		$	637		$	13,458
Distribution income		9,951			8,996			20,758
Total operating income		10,951			9,633			34,216
Operating expenses:
Asset management fees (Note 3)		18,574			24,585			25,250
Accounting and legal fees		20,600			41,026			29,325
Write off of other assets		1,033			4,792			25,705
Write off of advances to Local Limited Partnership		-			6,589			12,256
Professional services		8,282			10,720			18,460
Other		2,514			13,582			3,155
Total operating expenses		51,003			101,294			114,151

Loss from operations		(40,052	)		(91,661	)		(79,935	)

Gain (loss) on sale of Local Limited Partnerships (Note 2)		36,580			(18,215	)		359,383

Interest income		64			88			27

Net income (loss)	$	(3,408	)	$	(109,788	)	$	279,475

Net income (loss) allocated to:
General Partner	$	(34	)	$	(1,098	)	$	2,795
Limited Partners	$	(3,374	)	$	(108,690	)	$	276,680

Net income (loss) per Partnership Unit	$	(0.34	)	$	(10.94	)	$	27.77

Outstanding weighted Partnership Units		9,939			9,939			9,962

~~BALANCE SHEETS~~See accompanying notes to financial statements

	March 31,
	2013			2012
ASSETS
Cash	$	277,329		$	103,674
Prepaid asset management fees		24,250			-
Prepaid expenses		8,692			-
Other assets		15,448			43,305
Investments in Local Limited Partnerships, net (Notes 2 and 3)		-			-
Total Assets	$	325,719		$	146,979
LIABILITIES AND PARTNERS’ EQUITY (DEFICIT)
Liabilities:
Accrued expenses	$	446		$	-
Accrued fees and expenses due to General Partner and Affiliate		-			101,181
Total Liabilities		446			101,181
Partners’ Equity (Deficit)
General Partner		(70,261	)		(73,056	)
Limited Partners (10,000 Partnership Units authorized; 9,962 and 10,000, respectively, Partnership Units issued and outstanding)		395,534			118,854
Total Partners’ Equity (Deficit)		325,273			45,798
Total Liabilities and Partners’ Equity (Deficit)	$	325,719		$	146,979

~~See accompanying~~WNC ~~notes~~HOUSING toTAX ~~financial~~CREDIT ~~statements~~FUND VI, L.P., SERIES 1

~~F-3~~(A California Limited Partnership)

~~WNC HOUSING~~STATEMENTS ~~TAX~~OF ~~CREDIT~~PARTNERS’ ~~FUND~~EQUITY ~~IV, L.P., SERIES 1~~ (DEFICIT)

(A California Limited Partnership)

	General Partner			Limited Partners			Total

Partners’ equity (deficit) at March 31, 2012	$	(73,056	)	$	118,854		$	45,798

Net income		2,795			276,680			279,475

Partners’ equity (deficit) at March 31, 2013		(70,261	)		395,534			325,273

Net loss		(1,098	)		(108,690	)		(109,788	)

Partners’ equity (deficit) at March 31, 2014		(71,359	)		286,844			215,485

Return of capital (Note 5)		(20,868	)		-			(20,868	)

Net loss		(34	)		(3,374	)		(3,408	)

Partners’ equity (deficit) at March 31, 2015	$	(92,261	)	$	283,470		$	191,209

~~STATEMENTS OF~~See ~~OPERATIONS~~accompanying notes to financial statements

	For the Years Ended March 31,
	2013			2012			2011
Operating income:
Reporting fees	$	13,458		$	5,211		$	4,903
Distribution income		20,758			19,256			34,220
Total operating income		34,216			24,467			39,123
Operating expenses:
Asset management fees (Note 3)		25,250			35,000			42,000
Accounting and legal fees		29,325			39,511			149,719
Write off of other assets		25,705			-			-
Write off of advances to Local Limited Partnership		12,256			31,294			-
Other		21,615			20,971			6,365
Total operating expenses		114,151			126,776			198,084
Loss from operations		(79,935	)		(102,309	)		(158,961	)
Gain on sale of Local Limited Partnerships (Note 2)		359,383			392,308			-
Interest income		27			34			188
Net income (loss)	$	279,475		$	290,033		$	(158,773	)
Net income (loss) allocated to:
General Partner	$	2,795		$	2,900		$	(1,588	)
Limited Partners	$	276,680		$	287,133		$	(157,185	)
Net income (loss) per Partnership Unit	$	27.77		$	28.71		$	(15.72	)
Outstanding weighted Partnership Units		9,962			10,000			10,000

~~See accompanying~~WNC ~~notes~~HOUSING toTAX ~~financial~~CREDIT ~~statements~~FUND VI, L.P., SERIES 1

~~F-4~~(A California Limited Partnership)

~~WNC HOUSING~~STATEMENTS ~~TAX~~OF ~~CREDIT~~CASH ~~FUND VI, L.P., SERIES 1~~FLOWS

(A California Limited Partnership)

	For The Years Ended March 31,
	2015			2014			2013
Cash flows from operating activities:
Net income (loss)	$	(3,408	)	$	(109,788	)	$	279,475
Adjustments to reconcile net income (loss) to net cash used in operating activities:
(Gain) loss on sale of Local Limited Partnerships		(36,580	)		18,215			(359,383	)
Write off advances to Limited Partnerships		-			6,589			12,256
(Increase) decrease in other assets		(55,675	)		13,837			(5,133	)
(Increase) decrease in prepaid asset management fee		-			24,250			(24,250	)
(Increase) decrease in prepaid expenses		-			8,692			(8,692	)
Increase (decrease) in accrued expenses		-			(446	)		446
Increase (decrease) in accrued fees and expenses due to General Partner and affiliates		33,491			13,217			(101,181	)

Net used in operating activities		(62,172	)		(25,434	)		(206,462	)

Cash flows from investing activities
Advances to Local Limited Partnerships		-			(6,589	)		(12,256	)
Net proceeds (payments) for sale of Local Limited Partnerships		36,580			(18,215	)		392,373

Net cash provided by (used in) investing activities		36,580			(24,804	)		380,117

Cash flows from financing activities:
Return of capital		(20,868	)		-			-

Net cash used in financing activities:		(20,868	)		-			-

Net increase (decrease) in cash		(46,460	)		(50,238	)		173,655

Cash, beginning of year		227,091			277,329			103,674

Cash, end of year	$	180,631		$	227,091		$	277,329

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Taxes paid	$	800		$	800		$	800

~~STATEMENTS OF~~See ~~PARTNERS’~~accompanying ~~EQUITY~~notes ~~(DEFICIT)~~to financial statements

~~For the Years Ended March 31, 2013, 2012 and 2011~~30

	General Partner			Limited Partners			Total
Partners’ deficit at March 31, 2010	$	(101,022	)	$	(11,094	)	$	(112,116	)
Net loss		(1,588	)		(157,185	)		(158,773	)
Partners’ deficit at March 31, 2011		(102,610	)		(168,279	)		(270,889	)
Contributions (Note 5)		26,654			-			26,654
Net income		2,900			287,133			290,033
Partners’ equity (deficit) at March 31, 2012		(73,056	)		118,854			45,798
Net income		2,795			276,680			279,475
Partners’ equity (deficit) at March 31, 2013	$	(70,261	)	$	395,534		$	325,273

WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 1

~~See accompanying~~(A ~~notes~~California toLimited ~~financial statements~~Partnership)

~~F-5~~NOTES TO FINANCIAL STATEMENTS

~~WNC HOUSING~~For ~~TAX~~the ~~CREDIT~~Years ~~FUND~~Ended VIMarch 31, ~~L.P.~~2015, ~~SERIES~~2014 1and 2013

~~(A California~~NOTE ~~Limited~~1 ~~Partnership)~~– ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

~~STATEMENTS OF CASH FLOWS~~Organization

	For The Years Ended March 31,
	2013			2012			2011
Cash flows from operating activities:
Net income (loss)	$	279,475			290,033		$	(158,773	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Gain on sale of Local Limited Partnerships		(359,383	)		(392,308	)		-
Increase in other assets		(5,133	)		(68,871	)		-
Increase in prepaid asset management fee		(24,250	)		-			-
Increase in prepaid expenses		(8,692	)		-			-
Increase in accrued expenses		446			-			-
Increase (decrease) in accrued fees and expenses due to General Partner and affiliates		(101,181	)		(217,821	)		86,440
Net used in operating activities		(218,718	)		(388,967	)		(72,333	)
Cash flows from investing activities
Advances to Local Limited Partnerships		(12,256	)		(31,294	)		-
Write off of advances to Limited Partnerships		12,256			31,294			-
Net proceeds from sale of Local Limited Partnerships		392,373			417,874			-
Net cash provided by investing activities		392,373			417,874			-
Net increase (decrease) in cash		173,655			28,907			(72,333	)
Cash, beginning of year		103,674			74,767			147,100
Cash, end of year	$	277,329			103,674		$	74,767
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Taxes paid	$	800		$	800		$	800
Non cash investing and financing activities Advances made to the Partnership by the General Partner in prior years were converted to General Partner equity.	$	-		$	26,654		$	-

WNC Housing Tax Credit Fund IV, L.P., Series 1 (the “Partnership”) is a California Limited Partnership formed under the laws of the State of California on May 4, 1993, and commenced operations on October 20, 1993. 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 Complex. Each Local Limited Partnership is governed by its agreement of limited partnership (the “Local Limited Partnership Agreement”).

~~See accompanying~~The ~~notes~~general topartner ~~financial~~of ~~statements~~the Partnership is WNC Tax Credit Partners IV, L.P. (“TCP IV’ or the “General Partner”). The General Partner of TCP IV is WNC & Associates, Inc. (“Associates”). The chairman and the president of Associates owns all of the outstanding stock of Associates. The business of the Partnership is conducted primarily through the General Partner, as the Partnership has no employees of its own.

~~F-6~~The Partnership shall continue in full force and effect until December 31, 2050 unless terminated prior to that date pursuant to the partnership agreement or law.

~~WNC~~The ~~HOUSING~~financial ~~TAX~~statements ~~CREDIT~~include ~~FUND~~only IVactivity relating to the business of the Partnership, ~~L.P.~~and do not give effect to any assets that the partners may have outside of their interests in the Partnership, ~~SERIES 1~~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 interest (A“Partnership ~~California~~Units”) ~~Limited~~at $1,000 per Partnership Unit. The offering of Partnership Units had concluded in July 1994, at which time 10,000 Partnership Units representing subscriptions in the amount of $10,000,000 had been accepted. As of March 31, 2015 and 2014, a total of 9,939 Partnership units remain outstanding. The General Partner has 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”) in the Partnership will be allocated the remaining 99% of these items in proportion to their respective investments.

~~NOTES~~The TOproceeds ~~FINANCIAL~~from ~~STATEMENTS~~ the disposition of any of the 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 partners of the Local Limited Partnership, including the Partnership, in accordance with the terms of the particular Local Limited Partnership Agreement. 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 from the proceeds remaining after payment of Partnership obligations and funding reserves, equal to their capital contributions and their return on investment (as defined in the Partnership Agreement). The General Partner would then be entitled to receive proceeds equal to its capital contributions from the remainder. Any additional sale or refinancing proceeds will be distributed 99% to the Limited Partners (in proportion to their respective investments) and 1% to the General Partner.

~~For the Years Ended March~~ 31~~, 2013, 2012 and 2011~~

~~NOTE 1~~WNC –HOUSING ~~ORGANIZATION~~TAX ~~AND~~CREDIT ~~SUMMARY~~FUND OFIV, ~~SIGNIFICANT~~L.P., ~~ACCOUNTING~~SERIES ~~POLICIES~~1

~~Organization~~(A California Limited Partnership)

~~WNC Housing~~NOTES ~~Tax~~TO ~~Credit~~FINANCIAL Fund IV, L.P., Series 1 (the “Partnership”) is a California Limited Partnership formed under the laws of the State of California on May 4, 1993, and commenced operations on October 20, 1993. 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 Complex. Each Local Limited Partnership is governed by its agreement of limited partnership (the “Local Limited Partnership Agreement”).STATEMENTS

~~The general~~For ~~partner of~~ the ~~Partnership~~Years isEnded ~~WNC~~March ~~Tax Credit Partners IV~~31, ~~L.P. (“TCP IV” or the “General Partner”). The General Partner of TCP IV is WNC & Associates~~2015, ~~Inc.~~2014 ~~(“Associates”). The chairman~~ and the president of Associates owns all of the outstanding stock of Associates. The business of the Partnership is conducted primarily through the General Partner, as the Partnership has no employees of its own.2013

~~The Partnership~~NOTE ~~shall~~1 ~~continue~~– inORGANIZATION ~~full~~AND ~~force~~SUMMARY ~~and~~OF ~~effect~~SIGNIFICANT ~~until~~ACCOUNTING ~~December 31~~POLICIES, ~~2050 unless terminated prior to that date pursuant to the partnership agreement or law.~~continued

~~The financial~~Risks ~~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.~~Uncertainties

~~The partnership~~An ~~agreement~~investment ~~authorized~~in the ~~sale~~Partnership ofand upthe ~~to 10,000 units of limited partnership interest (“~~Partnership’s ~~Units”) at~~investments ~~$1,000~~in ~~per~~Local ~~Partnership~~Limited ~~Unit.~~Partnerships ~~The~~and ~~offering~~their ofHousing ~~Partnership~~Complexes ~~Units~~are ~~had~~subject ~~concluded~~to inrisks. These ~~July~~risks ~~1997,~~may atimpact ~~which~~the ~~time~~tax ~~10,000~~benefits ~~Partnership Units~~of ~~representing~~an ~~subscriptions~~investment in the ~~amount of $10~~Partnership,~~000,000~~ ~~had been accepted. The General Partner has a 1% interest in operating profits~~ and ~~losses,~~the ~~taxable~~amount ~~income~~of ~~and~~proceeds ~~losses, cash~~ available for distribution ~~from~~to the ~~Partnership~~Limited ~~and~~Partners, ~~Low~~if ~~Income~~any, ~~Housing~~on ~~Tax Credits~~liquidation of the Partnership’s investments. Some ~~The~~of ~~investors~~those ~~(the~~risks ~~“Limited~~include ~~Partners”) in~~ the ~~Partnership will be allocated the remaining 99% of these items in proportion to their respective investments.~~following:

The ~~proceeds~~ ~~from~~Low ~~the~~Income ~~disposition of any of the~~ Housing ~~Complexes~~Tax ~~will~~Credits berules ~~used~~are ~~first~~extremely tocomplicated. ~~pay~~Noncompliance ~~debts~~with ~~and~~these ~~other~~rules ~~obligations~~results ~~per~~in the ~~respective Local~~loss ~~Limited~~of ~~Partnership~~future ~~Agreement.~~Low ~~Any~~Income ~~remaining~~Housing ~~proceeds~~Tax ~~will~~Credits ~~then~~and ~~be paid to~~ the ~~partners~~fractional recapture of ~~the~~Low ~~Local~~Income ~~Limited~~Housing ~~Partnership, including~~Tax ~~the~~Credits ~~Partnership,~~already intaken. ~~accordance~~In ~~with~~most cases the ~~terms~~annual amount of ~~the~~Low ~~particular~~Income ~~Local~~Housing ~~Limited~~Tax ~~Partnership~~Credits ~~Agreement.~~that ~~The sale~~an ofindividual acan ~~Housing~~use ~~Complex~~is ~~may~~limited beto ~~subject~~the totax ~~other~~liability ~~restrictions~~due ~~and~~on ~~obligations.~~the ~~Accordingly,~~person’s ~~there~~last ~~can~~$25,000 beof notaxable ~~assurance~~income. ~~that~~The a Local Limited ~~Partnership~~Partnerships ~~will~~may be ~~able~~unable to sell ~~its~~the Housing ~~Complex.~~Complexes ~~Even~~at ifa itprice ~~does~~which ~~so,~~would ~~there~~result ~~can~~in ~~be no assurance that any significant amounts of cash will be distributed to~~ the Partnership. ~~Should~~realizing ~~such~~cash distributions ~~occur,~~or ~~the~~proceeds ~~Limited Partners will be entitled to receive distributions~~ from the ~~proceeds remaining after payment of Partnership obligations and funding reserves~~transaction. Accordingly, ~~equal to their capital contributions and their return on investment (as defined in~~ the Partnership ~~Agreement).~~may ~~The General Partner would then~~ be ~~entitled~~unable to ~~receive~~distribute ~~proceeds~~any ~~equal~~cash to its ~~capital~~Limited ~~contributions from the remainder~~Partners. ~~Any~~Low ~~additional~~Income ~~sale or~~Housing ~~refinancing~~Tax ~~proceeds~~Credits ~~will~~may be ~~distributed~~the ~~90%~~only tobenefit ~~the~~from ~~Limited~~an ~~Partners~~investment (in ~~proportion to their respective investments) and 10% to~~ the ~~General Partner~~Partnership.

~~Risks~~ 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 “Compliance Period”), the loss of any remaining future Low Income Housing Tax Credits, a fractional recapture of prior Low Income Housing Tax Credits, and ~~Uncertainties~~a loss of the Partnership’s investment in the Housing Complex would occur. The Partnership is a limited partner or 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 properties, and neighborhood conditions, among others.

~~An investment~~The inability of Limited Partners to claim tax losses from the Partnership ~~and~~is limited. The IRS may audit the Partnership’s ~~investments~~or ina Local Limited ~~Partnerships~~Partnership and ~~their~~challenge the tax treatment of tax items. The amount of Low Income Housing ~~Complexes are~~Tax ~~subject~~Credits and tax losses allocable to ~~risks.~~the ~~These~~Limited ~~risks~~Partners ~~may~~could ~~impact~~be reduced if the IRS were successful in such a challenge. The alternative minimum tax could reduce tax benefits offrom an investment in the Partnership,. Changes ~~and~~in ~~the~~tax ~~amount~~laws ofcould ~~proceeds available~~also ~~for~~impact ~~distribution to~~ the ~~Limited~~tax ~~Partners,~~benefits iffrom ~~any,~~an oninvestment ~~liquidation~~in of the Partnership’s ~~investments.~~and/or ~~Some~~the value of ~~those risks include~~ the ~~following:~~Housing Complexes.

~~The Low~~All ~~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~~anticipated ~~taken. In most cases the annual amount of Low Income Housing Tax Credits that an individual can use is limited~~ to ~~the~~be ~~tax~~realized ~~liability~~from ~~due on~~ the ~~person’s last $25,000 of taxable income. The~~ Local Limited Partnerships ~~may~~have bebeen ~~unable to sell the Housing Complexes at a price which would result in the Partnership realizing cash distributions or proceeds from the transaction~~realized. ~~Accordingly,~~The ~~the~~ Partnership ~~may~~does benot ~~unable to~~anticipate ~~distribute~~being allocated any ~~cash to its Limited Partners.~~ Low Income Housing Tax Credits ~~may~~from be the ~~only~~Local ~~benefit~~Limited ~~from~~Partnerships ~~an investment~~ in the ~~Partnership~~ future.

~~F-7~~32

WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 1

(A California Limited Partnership)

NOTES TO FINANCIAL STATEMENTS ~~– CONTINUED~~

For the Years Ended March 31, ~~2013~~2015, ~~2012,~~ 2014 and ~~2011~~2013

NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued

~~The Partnership~~No ~~has~~trading ~~invested~~market infor ~~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~~Units ~~limited~~exists ~~diversity,~~or ~~poor~~is ~~performance~~expected ~~of one Housing Complex could impair the Partnership’s ability~~ to ~~satisfy its investment objectives~~develop. ~~Each Housing Complex is subject to mortgage indebtedness. If a Local~~ Limited ~~Partnership~~Partners ~~failed~~may tobe ~~pay~~unable ~~its mortgage, it could lose its Housing Complex in foreclosure. If foreclosure were~~ to ~~occur~~sell ~~during~~their ~~the~~Partnership ~~first~~Units 15except ~~years~~at ~~(the “Compliance Period”), the loss of any remaining future Low Income Housing Tax Credits,~~ a ~~fractional~~discount ~~recapture of prior Low Income Housing Tax Credits,~~ and ashould ~~loss~~consider oftheir ~~the~~ Partnership~~’s investment~~ inUnits ~~the~~to ~~Housing~~be ~~Complex would occur. The Partnership is~~ a ~~limited partner or non~~long-~~managing~~term ~~member~~investment. ofIndividual ~~each Local~~ Limited ~~Partnership.~~ ~~Accordingly,~~Partners ~~the Partnership~~ will have ~~very~~no ~~limited~~recourse ~~rights~~if 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~~disagree bewith ~~subject~~actions toauthorized ~~one~~by ora ~~more~~vote of the ~~following risks:~~majority ~~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 properties, and neighborhood conditions, among others.

~~The ability~~Exit 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 the 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.Strategy

~~All of~~The ~~the~~Compliance ~~Low~~Period ~~Income~~for a Housing ~~Tax~~Complex ~~Credits~~is ~~anticipated~~generally to15 beyears ~~realized~~following ~~from~~construction ~~the~~or ~~Local~~rehabilitation ~~Limited~~completion. ~~Partnerships~~Associates ~~have~~was ~~been~~one ~~realized.~~of ~~The~~the ~~Partnership does~~first ~~not~~in ~~anticipate~~the ~~being~~industry ~~allocated~~to ~~any~~offer syndicated investments in Low Income Housing Tax Credits. The ~~from~~initial ~~the~~programs ~~Local~~have ~~Limited~~completed ~~Partnerships~~their inCompliance ~~the future~~Periods.

~~No trading~~Upon ~~market for~~ the ~~Partnership~~sale ~~Units~~of ~~exists~~a orLocal ~~is expected to develop.~~ Limited ~~Partners~~Partnership ~~may~~Interest beor ~~unable~~Housing toComplex ~~sell~~after ~~their~~the ~~Partnership Units~~end ~~except~~of atthe aCompliance ~~discount~~Period, ~~and~~there ~~should~~would ~~consider~~be ~~their~~no ~~Partnership~~recapture ~~Units~~of toLow beIncome aHousing ~~long-term~~Tax ~~investment~~Credits. All ~~Individual~~remaining Local Limited ~~Partners will~~Partnerships have nocompleted ~~recourse~~their if15-year ~~they~~Compliance ~~disagree with actions authorized by a vote of the majority of Limited Partners~~Periods.

~~F-8~~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.

~~WNC~~Upon ~~HOUSING TAX~~identifying ~~CREDIT~~those ~~FUND~~Housing IVComplexes with the highest potential for a successful sale, Lrefinancing or re-syndication, the Partnership expects to proceed with efforts to liquidate them.P 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, ~~SERIES~~the 1dissolution of the Partnership was not imminent as of March 31, 2015.

(AThe ~~California~~proceeds from the disposition of any of the 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 partners of the Local Limited Partnership, including the Partnership, in accordance with the terms of the particular Local Limited Partnership Agreement.

~~NOTES~~The TOsale ~~FINANCIAL~~of ~~STATEMENTS~~a –Housing ~~CONTINUED~~ 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, as the proceeds first would be used to pay Partnership obligations and funding of reserves. Similarly, there can be no assurance that the Partnership will be able to sell its Local Limited Partnership Interests, or that cash therefrom would be available for distribution to the Limited Partners.

~~For~~On March 1, 2011, the ~~Years~~Partnership ~~Ended~~filed ~~March~~preliminary 31consent solicitation materials with the Securities and Exchange Commission (“SEC”) regarding the adoption of a plan of liquidation. Definitive materials were filed with the SEC on April 1, ~~2013~~2011. Materials were disseminated to the Limited Partners on April 8, ~~2012~~2011. The Partnership sought approval to have a formal plan of liquidation of selling its limited partnership interests or selling the underlying Housing Complexes of each of the Local Limited Partnerships. On June 1, ~~and~~ 2011 the Partnership received the majority vote in favor of the plan for dissolution. Therefore, the Partnership is engaging third party appraisers to appraise several or all of the Local Limited Partnerships in this Partnership. The appraisal is one of the preliminary steps that need to be completed in order to move forward with the approved liquidation plan. The expense incurred for the appraisals, or any other disposition related expenses the Partnership incurs, are being capitalized and will remain on the balance sheets until the respective Local Limited Partnership is sold. At the time of disposition the capitalized costs will be netted with any cash proceeds that are received in order to calculate the gain or loss on the disposition.

~~NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued~~33

~~Exit Strategy~~WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 1

~~The Compliance~~(A ~~Period~~California ~~for~~Limited 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 have completed their Compliance Periods.Partnership)

~~Upon the~~NOTES ~~sale~~TO ofFINANCIAL a Local Limited Partnership Interest or Housing Complex after the end of the Compliance Period, there would be no recapture of Low Income Housing Tax Credits. A sale prior to the end of the Compliance Period could result in recapture if certain conditions are not met.STATEMENTS

~~With that~~For ~~in mind,~~ the ~~General~~Years ~~Partner~~Ended isMarch ~~continuing its review of the Housing Complexes. The review considers many factors~~31, ~~including extended use requirements (such as those due to mortgage restrictions or state compliance agreements)~~2015, ~~the~~2014 ~~condition of the Housing Complexes,~~ and ~~the tax consequences to the Limited Partners from the sale of the Housing Complexes.~~2013

~~Upon identifying~~NOTE ~~those~~1 ~~Housing~~– ~~Complexes~~ORGANIZATION ~~with~~AND ~~the~~SUMMARY ~~highest~~OF ~~potential~~SIGNIFICANT ~~for~~ACCOUNTING ~~a successful sale~~POLICIES, 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 March 31, 2013.continued

~~The proceeds~~As ~~from the disposition~~ of ~~any~~March of31, 2014, the ~~Housing~~Partnership ~~Complexes~~sold ~~will~~its ~~be used first to pay debts and other obligations per the respective~~ Local Limited Partnership ~~Agreement.~~Interest ~~Any~~in ~~remaining~~Beckwood ~~proceeds~~Manor ~~will~~Seven, ~~then~~L.P., beAlpine ~~paid~~Manor, toL.P., ~~the~~Briscoe ~~partners~~Manor, ofFawn ~~the Local Limited Partnership~~Haven, ~~including~~ ~~the Partnership~~L.P., inFort ~~accordance~~Stockton ~~with~~Manor, ~~the~~Pampa ~~terms~~Manor ofApartments, ~~the~~Vernon ~~particular~~Manor ~~Local~~Apartments, ~~Limited~~Baycity ~~Partnership~~Village ~~Agreement~~Apartments, L.P., ~~The~~Madisonville ~~sale~~Manor, ofL.P., aNorthside ~~Housing Complex~~Plaza ~~may~~Apartments, beL.P., ~~subject~~Evergreen toFour, ~~other~~L.P., ~~restrictions~~Waterford ~~and~~Place, ~~obligations~~L. ~~Accordingly~~P., ~~there~~Hidden ~~can~~Valley, beL.P., noSeneca ~~assurance~~Falls ~~that~~East aApartment ~~Local~~Company ~~Limited~~II, ~~Partnership will~~L.P. beIndian ~~able~~Creek, toL.P., ~~sell~~Regency ~~its~~Court ~~Housing~~Apartments, ~~Complex~~L.P ~~Even~~and ifYantis ~~it does so~~Housing, ~~there~~Ltd. Each ~~can be no assurance that any significant amounts~~ of ~~cash will be distributed to~~ the ~~Partnership,~~Local asLimited ~~the~~Partnerships ~~proceeds~~had ~~first~~completed ~~would~~its beCompliance ~~used to pay Partnership obligations and funding of reserves~~Period.

On During the year ended March 131, ~~2011~~2015, the ~~Partnership~~Local ~~filed~~Limited ~~preliminary~~Partnership ~~consent~~interest ~~solicitation~~in ~~materials~~Mt. ~~with~~Graham, ~~the~~Ltd ~~Securities and Exchange Commission~~ (“~~SEC~~Mt. Graham”) ~~regarding~~ ~~the~~was ~~adoption~~sold offor a$32,000. Mt. ~~plan~~Graham ofwas ~~liquidation.~~appraised ~~Definitive~~for ~~materials~~$1,035,000 ~~were~~and ~~filed~~had ~~with~~a ~~the~~mortgage ~~SEC~~note onbalance ~~April~~of $1,291,776 ~~2011.~~as ~~Materials~~of ~~were disseminated~~December ~~to the Limited Partners on April 8~~31, ~~2011~~2013. The ~~Partnership~~cash ~~sought~~proceeds ~~approval~~were used to ~~have~~pay a$6,132 ~~formal plan~~ of ~~liquidation~~accrued ~~of selling~~asset ~~its~~management ~~limited~~fees, ~~partnership~~$20,868 ~~interests~~to orreimburse ~~selling~~ the ~~underlying~~General ~~Housing~~Partner ~~Complexes~~or ofaffiliates ~~each~~for ofdebts ~~the~~previously ~~Local~~written ~~Limited Partnerships. On June 1~~off, ~~2011~~and ~~the~~retain ~~Partnership received~~ the ~~majority~~remaining ~~vote~~$5,000 in ~~favor~~reserves offor ~~the~~future ~~plan~~operating ~~for dissolution~~expenses. ~~Therefore,~~The ~~the~~ Partnership ~~is engaging~~incurred ~~third~~$9,403 ~~party~~in ~~appraisers~~sales torelated ~~appraise~~expenses ~~several~~which orwere ~~all~~netted ofagainst the ~~Local~~proceeds ~~Limited~~from ~~Partnerships in this Partnership. The appraisal is one of~~ the ~~preliminary~~sale ~~steps that need to be completed~~ in ~~order~~calculating tothe ~~move~~gain ~~forward~~on ~~with~~ the ~~approved liquidation plan~~sale. The ~~expense incurred~~Partnership’s ~~for~~investment ~~the~~balance ~~appraisals,~~is orzero; ~~any~~therefore ~~other~~a ~~disposition~~gain ~~related~~of ~~expenses the Partnership incurs~~$22,597 ~~are~~was ~~being~~recorded ~~capitalized~~during ~~and will remain on~~ the ~~balance~~period. The ~~sheets~~Compliance ~~until~~Period ~~the~~has ~~respective~~been ~~Local~~completed ~~Limited~~therefore ~~Partnership~~there is ~~sold.~~no Atrisk ~~the time~~ of ~~disposition~~recapture ~~the~~and ~~capitalized costs~~investor ~~will~~approval beis ~~netted~~not ~~with any cash proceeds that are received in order to calculate the gain or loss on the disposition~~required.

~~F-9~~During the year ended March 31, 2015, the Local Limited Partnership interest in Sandpiper Square L.P. (“Sandpiper”) was sold for $15,000. Sandpiper was appraised for $465,000 and had a mortgage note balance of $862,731 as of December 31, 2014. The cash proceeds were used to pay $8,518 of accrued asset management fees and $6,482 to reimburse the General Partner or affiliates for debts previously written off. The Partnership incurred $1,017 in sales related expenses which were netted against the proceeds from the sale in calculating the gain on the sale. The Partnership’s investment balance is zero; therefore a gain of $13,983 was recorded during the period. The Compliance Period has been completed therefore there is no risk of recapture and investor approval is not required.

~~WNC~~As ~~HOUSING TAX~~of ~~CREDIT~~March ~~FUND~~31, IV2015, Lthe Partnership has identified two Local Limited Partnerships for possible disposition as listed in the table below.P Once the sales are finalized, the Partnership will use the cash proceeds to reimburse the General Partner or an affiliate for expenses paid on its behalf or pay accrued asset management fees. Any remaining proceeds will be placed in the Partnership’s reserves for future operating expenses. Upon the sale of the last remaining Local Limited Partnership, ~~SERIES~~any 1cash remaining after all Partnership debts are paid would then be distributed to the Limited Partnership. The Compliance Period for all Local Limited Partnership has expired so there is no risk of tax credit recapture to the investors in the Partnership.

(A California Limited Partnership)

Local Limited Partnership	Debt at 12/31/14		Appraisal Value		Estimated Sales Price		Estimated Sales Related Expenses

HOI Limited Partnership of Lenoir		239,502		635,000		**		15,635

Laurel Creek Apartments		-		1,500,000		**		41,652

~~NOTES~~** TOPurchase ~~FINANCIAL~~price ~~STATEMENTS~~is –still ~~CONTINUED~~ under negotiation

~~For the Years Ended March 31, 2013, 2012, and 2011~~34

~~NOTE 1~~WNC –HOUSING ~~ORGANIZATION~~TAX ~~AND~~CREDIT ~~SUMMARY~~FUND OFIV, ~~SIGNIFICANT ACCOUNTING POLICIES~~L.P., ~~continued~~SERIES 1

~~The following~~(A ~~table~~California ~~reflects the 8 Local~~ Limited Partnership Interests that were sold during the year ended March 31, 2013. The Compliance Period for all Local Limited Partnerships has expired so there is no risk of tax credit recapture to the investors in the Partnership. No cash distributions will be made to the Limited Partners as a result of these sales.)

Local Limited Partnership	Mortgage Debt		Appraised Value		Sales Proceeds		Date of Sale		Sales Related Expenses		ReimbursementTo FormerGP		Gain on Sale to the Partnership
Baycity Village Apartments L.P.	$	1,273,999	$	1,250,000	$	30,000		June 30, 2012	$	2,873		-	$	27,127
Madisonville Manor L.P.		856,153		430,000		25,000		August 01, 2012		2,100		-		22,900
Northside Plaza Apartments L.P.		1,272,646		650,000		25,000		August 01, 2012		2,550		-		22,450
Evergreen Four, L.P		821,336		370,000		21,953		August 31, 2012		3,303		-		18,650
Waterford Place L.P		1,100,250		630,000		8,953		August 31, 2012		2,953		-		6,000
Hidden Valley L.P		1,401,554		900,000		50,000		December 21, 2012		11,075		25,000		13,925
Seneca Falls East Apartment Company II, L.P.		842,487		485,000		20,001		March 31, 2013		1,296		-		18,705
Regency Court Apartments, L.P.		3,949,697		5,300,000		236,466		March 31, 2013		6,840		-		229,626

NOTES TO FINANCIAL STATEMENTS

~~F-10~~For the Years Ended March 31, 2015, 2014 and 2013

~~WNC~~NOTE ~~HOUSING TAX~~1 ~~CREDIT~~– ~~FUND~~ORGANIZATION ~~IV,~~AND ~~L.P.,~~SUMMARY ~~SERIES~~OF 1SIGNIFICANT ACCOUNTING POLICIES, continued

(AMethod ~~California~~of Accounting For Investments in Local Limited ~~Partnership)~~Partnerships

~~NOTES~~The TOPartnership ~~FINANCIAL~~accounts ~~STATEMENTS~~for –its ~~CONTINUED~~ 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 at least annually or 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

~~For~~the estimated residual value to the ~~Years~~Partnership. If ~~Ended~~an ~~March~~investment 31is considered to be impaired, ~~2013~~the Partnership reduces the carrying value of its investment in any such Local Limited Partnership. The accounting policies of the Local Limited Partnerships, ~~2012~~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 ~~2011~~were being amortized over 30 years (See Note 2).

~~NOTE 1~~“Equity –in ~~ORGANIZATION~~losses ~~AND~~of ~~SUMMARY~~Local OFLimited ~~SIGNIFICANT~~Partnerships” ~~ACCOUNTING~~for ~~POLICIES~~each year ended March 31 has been recorded by the Partnership based on the twelve months of reported results provided by the Local Limited Partnerships for each year ended December 31. Equity in losses from the Local Limited Partnerships allocated to the Partnership is not recognized to the extent that the investment balance would be adjusted below zero. If the Local Limited Partnerships reports net income in future years, ~~continued~~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 ~~following~~ ~~table~~analysis ~~represents~~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, which must be consolidated by a company if it is the ~~anticipated~~primary ~~use~~beneficiary because it has (1) the power to direct the activities of the ~~cash~~VIE ~~proceeds~~that ~~from~~most significantly impact the ~~disposition~~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 guidance requires continual reconsideration of the 8primary ~~Local~~beneficiary ~~Limited~~of ~~Partnerships~~a VIE.

Local Limited Partnership	Sales Proceeds		Reimbursement of WNC or affiliates		Payment of accrued asset management fees		Cash to remain in reserves for future expenses		Reimbursement to former GP
Baycity Village Apartments L.P.	$	30,000	$	-	$	26,000	$	4,000	$	-
Madisonville Manor L.P.		25,000		-		22,000		3,000		-
Northside Plaza Apartments L.P.		25,000		-		22,000		3,000		-
Evergreen Four, L.P		21,953		21,953		-		-		-
Waterford Place L.P		8,953		5,044		3,909		-		-
Hidden Valley L.P		50,000		21,972		-		3,028		25,000
Seneca Falls East Apartment Company II, L.P.		20,001		-		-		20,001		-
Regency Court Apartments, L.P.		236,466		-		-		236,466		-

Based on this guidance, the Local Limited Partnerships in which the Partnership invests meet the definition of a VIE because the owners of the equity at risk in these entities do not have the power to direct their operations. However, management does not consolidate the Partnership's interests in these VIEs, as it is not considered to be the primary beneficiary since it does not have the power to direct the activities that are considered most significant to the economic performance of these entities. The Partnership currently records the amount of its investment in these Local Limited Partnerships as an asset on its balance sheets, recognizes its share of partnership income or losses in the statements of operations, and discloses how it accounts for material types of these investments in its financial statements. The Partnership's balance in investment in Local Limited Partnerships, plus the risk of recapture of tax credits previously recognized on these investments, represents its maximum exposure to loss. The Partnership's exposure to loss on these Local Limited Partnerships is mitigated by the condition and financial performance of the underlying Housing Complexes as well as the strength of the Local General Partners and their guarantee against credit recapture to the investors in the Partnership.

~~The following~~Distributions ~~table~~received ~~reflects~~from the 5 Local Limited ~~Partnership~~Partners ~~Interests~~are ~~identified~~accounted for ~~disposition~~as a reduction of the investment balance. Distributions received after the investment has reached zero are recognized as distribution income. As of March 31, ~~2013:~~2015 and 2014, all investment accounts in Local Limited Partnerships had reached zero.

Local Limited Partnership	Debt at 12/31/12		Appraisal Value		Estimated Sales Price		Estimated Sales Related Expenses		Estimated Gain on sale
Sandpiper Square, a Limited Partnership	$	879,758	$	465,000	$	20,000	$	5,000	$	15,000
Mt Graham Housing, Ltd		1,304,327		1,035,000		40,000		3,000		37,000
Yantis Housing, Ltd.		579,452		180,000		22,500		8,445		14,055
HOI Limited Partnership of Lenoir		310,817		635,000		11,100		7,000		4,100
Laurel Creek Apartments *		127,528		2,270,000		-		-		-

* AsWNC ofHOUSING ~~the~~TAX ~~date~~CREDIT ofFUND ~~this~~IV, ~~report~~L.P., ~~the~~SERIES ~~sales price and sales related expenses cannot be determined.~~1

~~F-11~~(A California Limited Partnership)

~~WNC~~NOTES ~~HOUSING TAX~~TO ~~CREDIT~~FINANCIAL ~~FUND IV, L.P., SERIES 1~~STATEMENTS

(AFor ~~California~~the ~~Limited~~Years ~~Partnership)~~Ended March 31, 2015, 2014 and 2013

~~NOTES~~NOTE TO1 ~~FINANCIAL~~– ~~STATEMENTS~~ORGANIZATION –AND ~~CONTINUED~~ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued

~~For~~Use ~~the~~of ~~Years Ended March 31, 2013, 2012, and 2011~~Estimates

~~NOTE 1~~The –preparation ~~ORGANIZATION~~of ~~AND~~financial ~~SUMMARY~~statements OFin ~~SIGNIFICANT~~conformity ~~ACCOUNTING~~with ~~POLICIES~~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, ~~continued~~and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates.

~~Method of~~Cash ~~Accounting~~and ~~For~~Cash ~~Investments in Local Limited Partnerships~~Equivalents

The ~~Partnership~~ ~~accounts for its investments in Local Limited Partnerships using the equity method of accounting, whereby the~~ Partnership ~~adjusts~~ ~~its~~considers ~~investment~~all ~~balance~~highly ~~for~~liquid ~~its~~investments ~~share~~with oforiginal ~~the~~maturities ~~Local Limited Partnerships’ results~~ of ~~operations~~three ~~and~~months ~~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 at least annually~~ or ~~whenever~~less ~~events~~when orpurchased 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~~cash ~~to the Partnership and the estimated residual value to the Partnership~~equivalents. IfFor anall ~~investment~~periods ~~is considered to be impaired~~presented, the Partnership ~~reduces~~had ~~the carrying~~no ~~value~~cash ~~of its investment in any such Local Limited Partnership~~equivalents. 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 were being amortized over 30 years (See Notes 2 and 3).

~~“Equity in~~Reporting ~~losses~~Comprehensive of Local Limited Partnerships” for each year ended March 31 has been recorded by the Partnership based on the twelve months of reported results provided by the Local Limited Partnerships for each year ended December 31. Equity in losses from the Local Limited Partnerships allocated to the Partnership is not recognized to the extent that the investment balance would be adjusted below zero. If the Local Limited Partnerships reports 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).Income

~~In accordance~~The ~~with the accounting guidance for the consolidation of variable interest entities, the~~ Partnership ~~determines~~had ~~when~~no ~~it should~~items ~~include the assets, liabilities, and activities~~ of aother ~~variable~~comprehensive ~~interest~~income ~~entity~~for ~~(VIE)~~all inperiods ~~its financial statements, and when it should disclose information about its relationship with a VIE~~presented. 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, which must be consolidated by a company if it is the primary beneficiary because it 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 guidance requires continual reconsideration of the primary beneficiary of a VIE.

~~Based on~~Net ~~this~~Income ~~guidance,~~(Loss) ~~the~~Per ~~Local Limited Partnerships in which the~~ Partnership invests meet the definition of a VIE because the owners of the equity at risk in these entities do not have the power to direct their operations. However, management does not consolidate the Partnership’s interests in these VIEs, as it is not considered to be the primary beneficiary since it does not have the power to direct the activities that are considered most significant to the economic performance of these entities. The Partnership currently records the amount of its investment in these Local Limited Partnerships as an asset on its balance sheets, recognizes its share of partnership income or losses in the statements of operations, and discloses how it accounts for material types of these investments in its financial statements. The Partnership’s balance in investment in Local Limited Partnerships, plus the risk of recapture of tax credits previously recognized on these investments, represents its maximum exposure to loss. The Partnership’s exposure to loss on these Local Limited Partnerships is mitigated by the condition and financial performance of the underlying Housing Complexes as well as the strength of the Local General Partners and their guarantee against credit recapture to the investors in the Partnership.Unit

~~Distributions received~~Net ~~from~~income ~~the~~(loss) ~~Local~~per ~~Limited~~Partnership ~~Partners~~Unit ~~are~~includes ~~accounted~~no ~~for~~dilution asand ais ~~reduction~~computed ofby ~~the~~dividing ~~investment~~loss ~~balance.~~allocated ~~Distributions~~to ~~received~~Limited ~~after the~~Partners ~~investment~~by ~~has~~the ~~reached~~weighted ~~zero~~average ~~are~~Partnership ~~recognized~~Units asoutstanding ~~distribution~~during ~~income~~the period. Calculation As of ~~March~~diluted ~~31,~~net ~~2013~~income ~~and~~(loss) ~~2012,~~per ~~all~~Partnership ~~investment~~Unit ~~accounts in~~is ~~Local~~not ~~Limited Partnerships had reached zero~~required.

~~F-12~~Income Taxes

~~WNC~~The ~~HOUSING TAX~~Partnership ~~CREDIT~~has ~~FUND~~elected IVto be treated as a pass-through entity for income tax purposes and, Las such, is not subject to income taxes.P 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, ~~SERIES~~the 1Partnership 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. Income tax returns filed by the Partnership are subject to examination by the Internal Revenue Service for a period of three years. While no income tax returns are currently being examined by the Internal Revenue Service, tax years since 2011 remain open.

(ARevenue ~~California Limited Partnership)~~Recognition

~~NOTES~~The TOPartnership ~~FINANCIAL~~is ~~STATEMENTS~~entitled –to ~~CONTINUED~~ 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.

~~For~~Concentration ~~the~~of ~~Years~~Credit ~~Ended March 31, 2013, 2012, and 2011~~Risk

~~NOTE 1~~From –time ~~ORGANIZATION~~to ~~AND~~time, ~~SUMMARY~~the OFPartnership ~~SIGNIFICANT~~maintains ~~ACCOUNTING~~cash ~~POLICIES,~~balances ~~continued~~at certain financial institutions in excess of the federally insured maximum. The Partnership believes it is not exposed to any significant financial risk on cash.

~~Use of Estimates~~36

~~The preparation~~WNC ofHOUSING ~~financial~~TAX ~~statements~~CREDIT inFUND 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 statementsIV, ~~and the reported amounts of revenues and expenses during the reporting period~~L.P., ~~Actual~~SERIES ~~results could materially differ from those estimates.~~1

~~Cash and~~(A ~~Cash~~California ~~Equivalents~~Limited Partnership)

~~The Partnership~~NOTES ~~considers~~TO ~~all~~FINANCIAL ~~highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. As of March 31, 2013 and 2012, the Partnership had no cash equivalents.~~STATEMENTS

~~Reporting Comprehensive~~For ~~Income~~the Years Ended March 31, 2015, 2014 and 2013

~~The Partnership~~NOTE ~~had~~1 no– ~~items~~ORGANIZATION ofAND ~~other~~SUMMARY ~~comprehensive~~OF ~~income~~SIGNIFICANT ~~for~~ACCOUNTING ~~all~~POLICIES, ~~periods presented.~~continued

~~Net Income~~Impact ~~(Loss)~~of ~~Per~~Recent ~~Partnership~~Accounting ~~Unit~~Pronouncements

~~Net income~~In ~~(loss)~~January ~~per~~2014, ~~Partnership~~the ~~Unit~~FASB ~~includes~~issued noan ~~dilution~~amendment to the accounting and isdisclosure ~~computed~~requirements byfor ~~dividing~~investments ~~loss~~in ~~allocated~~qualified toaffordable ~~Limited~~housing ~~Partners~~projects. The amendments provide guidance on accounting for investments by a reporting entity in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the ~~weighted~~ ~~average~~low-income ~~Partnership~~housing ~~Units~~tax ~~outstanding~~credit. ~~during~~The amendments permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the ~~period~~proportional amortization method if certain conditions are met. ~~Calculation~~Under the proportional amortization method, an entity amortizes the initial cost of ~~diluted~~the investment in proportion to the tax credits and other tax benefits received, and recognizes the net investment performance in the income statement as a component of income tax expense (~~loss~~benefit). ~~per~~The ~~Partnership~~amendments ~~Unit~~ are effective for interim and annual periods beginning after December 15, 2014 and should be applied retrospectively to all periods presented. Early adoption is permitted. The adoption of this update is not ~~required~~expected to materially affect the Partnership's financial statements.

~~Income Taxes~~In February 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis”. This will improve certain areas of consolidation guidance for reporting organizations that are required to evaluate whether to consolidate certain legal entities such as limited partnerships, limited liability corporations and securitization structures. ASU 2015-02 simplifies and improves GAAP by: eliminating the presumption that a general partner should consolidate a limited partnership, eliminating the indefinite deferral of FASB Statement No. 167, thereby reducing the number of Variable Interest Entity (VIE) consolidation models from four to two (including the limited partnership consolidation model) and clarifying when fees paid to a decision maker should be a factor to include in the consolidation of VIEs. ASU 2015-02 will be effective for periods beginning after December 15, 2015. The Partnership is currently evaluating the potential impact of the adoption of tis guidance on its financial statements.

~~The Partnership~~NOTE ~~has~~2 ~~elected to be treated as a pass~~-~~through~~ ~~entity~~INVESTMENTS ~~for~~IN ~~income~~LOCAL ~~tax~~LIMITED 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 Income tax returns filed by the Partnership are subject to examination by the Internal Revenue Service for a period of three years. While no income tax returns are currently being examined by the Internal Revenue Service, tax years since 2009 remain open.PARTNERSHIPS

~~Revenue Recognition~~As of March 31, 2015 and 2014, the Partnership owns Local Limited Partnership interests in 2 and 4 Local Limited Partnerships, respectively, each of which owns one Housing complex, consisting of an aggregate of 58 and 122 apartment units, respectively. The respective 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 agreements, of the operating profits and losses, taxable income and losses and Low Income Housing Tax Credits of the Local Limited Partnerships.

The Partnership’s isinvestments ~~entitled~~in toLocal ~~receive~~Limited ~~reporting~~Partnerships ~~fees~~as ~~from~~shown in the ~~Local~~balance ~~Limited~~sheets ~~Partnerships.~~at ~~The~~March ~~intent~~31, of2015 ~~the~~and ~~reporting~~2014 ~~fees~~are isapproximately ~~to offset~~$997,000 ~~(in~~and ~~part)~~$546,000, ~~administrative~~respectively, ~~costs~~less ~~incurred~~than by the Partnership's inequity ~~corresponding~~at ~~with~~the preceding December 31 as shown in the Local Limited Partnerships’ combined condensed financial statements presented below. This ~~Due~~difference is primarily due to unrecorded losses as discussed below, acquisition, selection, and other costs related to the ~~uncertainty~~acquisition of the ~~collection~~investments ofwhich ~~these~~have ~~fees~~been capitalized in the Partnership's investment account, impairment losses recorded in the Partnership’s ~~recognizes~~investment ~~reporting~~account ~~fees~~and ascapital ~~collections~~contributions ~~are~~payable ~~made~~to the Local Limited Partnerships which were netted against partner capital in the Local Limited Partnership’s financial statements.

~~Concentration~~ For all periods presented, the investment accounts in all of ~~Credit~~the ~~Risk~~Local Limited Partnerships have reached a zero balance. Consequently, all of the Partnership’s estimates of its share of income (losses) for the years ended March 31, 2015, 2014 and 2013, amounting to approximately $13,000, $(21,000) and $(158,000), respectively, have not been recognized. As of March 31, 2015, the aggregate share of net losses not recognized by the Partnership amounted to approximately $59,000.

As of March 31, 2013, the Partnership maintained cash balances at certain financial institutions in excess of the federally insured maximum. The Partnership believes it is not exposed to any significant financial risk on cash.37

~~F-13~~WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 1

~~WNC~~(A ~~HOUSING TAX~~California ~~CREDIT~~Limited ~~FUND IV, L.P., SERIES 1~~Partnership)

(ANOTES ~~California~~TO ~~Limited~~FINANCIAL ~~Partnership)~~STATEMENTS

~~NOTES~~For TOthe ~~FINANCIAL~~Years ~~STATEMENTS~~Ended –March ~~CONTINUED~~ 31, 2015, 2014 and 2013

~~For~~NOTE ~~the~~2 ~~Years~~- ~~Ended~~INVESTMENTS ~~March~~IN ~~31,~~LOCAL ~~2013,~~LIMITED ~~2012~~PARTNERSHIPS, ~~and~~ ~~2011~~continued

~~NOTE 1~~The –financial ~~ORGANIZATION~~information ~~AND~~from ~~SUMMARY~~the OFindividual ~~SIGNIFICANT~~financial ~~ACCOUNTING~~statements ~~POLICIES,~~of ~~continued~~the Local Limited Partnerships includes rental and interest subsidies. Rental subsidies are included in total revenues and interest subsidies are generally netted in interest expense. Approximate combined condensed financial information from the individual financial statements of the Local Limited Partnerships as of December 31 and for the years then ended is as follows:

~~Impact of~~COMBINED ~~Recent~~CONDENSED ~~Accounting~~BALANCE ~~Pronouncements~~SHEETS

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 modified the consolidation model to one based on control and economics, and replaced 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 was effective for fiscal years beginning after November 15, 2009. The adoption of this guidance on April 1, 2011 did not have a material effect on the Partnership’s financial statements.

	2014		2013
ASSETS
Buildings and improvements (net of accumulated depreciation as of December 31, 2014 and 2013 of $2,719,000 and $4,030,000 respectively)	$	1,557,000	$	2,275,000
Land		482,000		537,000
Other assets		675,000		906,000
Total assets	$	2,714,000	$	3,718,000

In May 2011, the FASB issued an update to existing guidance related to fair value measurements on how to measure fair value and what disclosures to provide about fair value measurements. For fair value measurements categorized as level 3, a reporting entity should disclose quantitative information of the unobservable inputs and assumptions, description of the valuation processes and narrative description of the sensitivity of the fair value to changes in unobservable inputs. This update is effective for interim and annual periods beginning after December 15, 2011. The adoption of this update did not materially affect the Partnership’s financial statements.

LIABILITIES
Mortgage payable	$	1,102,000	$	2,499,000
Due to affiliates		8,000		20,000
Other liabilities		42,000		65,000

Total liabilities		1,152,000		2,584,000

PARTNERS' EQUITY (DEFICIT)
WNC Housing Tax Credit Fund IV, L.P., Series 1		997,000		546,000
Other partners		565,000		588,000
Total partners’ equity (deficit)		1,562,000		1,134,000
Total liabilities and partners’ equity (deficit)	$	2,714,000	$	3,718,000

~~NOTE 2 – INVESTMENTS IN LOCAL LIMITED PARTNERSHIPS~~38

~~As of~~WNC ~~March~~HOUSING ~~31,~~TAX ~~2013~~CREDIT ~~and~~FUND ~~2012~~IV, the Partnership owns Local Limited Partnership interests in 5 and 13 Local Limited Partnerships, respectively, each of which owns one Housing complex, consisting of an aggregate of 293 and 531 apartment units, respectivelyL. ~~The respective Local General Partners of the Local Limited Partnerships manage the day-to-day operations of the entities~~P. ~~Significant Local Limited Partnership business decisions require approval from the Partnership. The Partnership~~, asSERIES a limited partner, is generally entitled to 99%, as specified in the Local Limited Partnership agreements, of the operating profits and losses, taxable income and losses and Low Income Housing Tax Credits of the Local Limited Partnerships.1

~~The Partnership’s~~(A ~~investments~~California ~~in Local~~ Limited ~~Partnerships as shown in the balance sheets at March 31, 2013 and 2012 are approximately $457,000 and $1,310,000, respectively, greater than the~~ Partnership’s equity at the preceding December 31 as shown in the Local Limited Partnerships’ combined condensed financial statements presented below. This difference is primarily due to unrecorded losses as discussed below, acquisition, selection, and other costs related to the acquisition of the investments which have been capitalized in the Partnership’s investment account, impairment losses recorded in the Partnership’s investment account and capital contributions payable to the Local Limited Partnerships which were netted against partner capital in the Local Limited Partnership’s financial statements.)

~~For all~~NOTES ~~periods~~TO ~~presented,~~FINANCIAL the investment accounts in all of the Local Limited Partnerships have reached a zero balance. Consequently, all of the Partnership’s estimate of its share of losses for the years ended March 31, 2013, 2012 and 2011 amounting to approximately $158,000, $167,000, and $504,000, respectively, have not been recognized. As of March 31, 2013, the aggregate share of net losses not recognized by the Partnership amounted to approximately $878,000.STATEMENTS

~~F-14~~For the Years Ended March 31, 2015, 2014 and 2013

~~WNC~~NOTE ~~HOUSING TAX~~2 ~~CREDIT~~- ~~FUND~~INVESTMENTS ~~IV,~~IN ~~L.P.,~~LOCAL ~~SERIES~~LIMITED 1PARTNERSHIPS, continued

(ACOMBINED ~~California~~CONDENSED ~~Limited~~STATEMENTS ~~Partnership)~~OF OPERATIONS

NOTES TO FINANCIAL STATEMENTS – CONTINUED

	2014		2013		2012

Revenues	$	582,000	$	841,000	$	1,948,000

Expenses:
Operating expenses		404,000		495,000		316,000
Interest expense		29,000		35,000		507,000
Depreciation and amortization		136,000		220,000		1,218,000

Total expenses		569,000		750,000		2,041,000

Net income (loss)	$	13,000	$	91,000	$	(93,000	)

Net income (loss) allocable to the Partnership,	$	13,000	$	90,000	$	(92,000	)

Net income (loss) recorded by the Partnership	$	-	$	-	$	$-

~~For~~Certain Local Limited Partnerships have incurred significant operating losses and/or have working capital deficiencies. In the ~~Years~~event ~~Ended~~these ~~March~~Local ~~31,~~Limited ~~2013,~~Partnerships ~~2012~~continue to incur significant operating losses, additional capital contributions by the Partnership and/or ~~2011~~the Local General Partner may be required to sustain the operations of such Local Limited Partnerships.

~~NOTE 2 – INVESTMENTS IN LOCAL LIMITED PARTNERSHIPS, continued~~39

~~The financial~~WNC ~~information~~HOUSING ~~from~~TAX ~~the~~CREDIT ~~individual~~FUND ~~financial~~IV, ~~statements of the Local Limited Partnerships includes rental and interest subsidies~~L. ~~Rental subsidies are included in total revenues and interest subsidies are generally netted in interest expense~~P., ~~Approximate combined~~SERIES ~~condensed financial information from the individual financial statements of the Local Limited Partnerships as of December 31 and for the years then ended is as follows:~~ 1

~~COMBINED CONDENSED~~(A ~~BALANCE~~California ~~SHEETS~~Limited Partnership)

	2012			2011
ASSETS
Buildings and improvements (net of accumulated depreciation as of December 31, 2012 and 2011 of $8,287,000 and $12,508,000 respectively)	$	8,113,000		$	13,237,000
Land		602,000			939,000
Other assets		1,373,000			2,265,000
Total assets	$	10,088,000		$	16,441,000
LIABILITIES
Mortgage payable	$	7,994,000		$	15,006,000
Due to affiliates		435,000			318,000
Other liabilities		789,000			933,000
Total liabilities		9,218,000			16,257,000
PARTNERS’ EQUITY (DEFICIT)
WNC Housing Tax Credit Fund IV, L.P., Series 1		(457,000	)		(1,310,000	)
Other partners		1,327,000			1,494,000
Total partners’ equity (deficit)		870,000			184,000
Total liabilities and partners’ equity (deficit)	$	10,088,000		$	16,441,000

NOTES TO FINANCIAL STATEMENTS

~~F-15~~For the Years Ended March 31, 2015, 2014 and 2013

~~WNC~~NOTE ~~HOUSING TAX~~3 ~~CREDIT~~- ~~FUND~~RELATED ~~IV,~~PARTY ~~L.P., SERIES 1~~TRANSACTIONS

(AUnder ~~California~~the ~~Limited~~terms of the Partnership) Agreement, the Partnership has paid or is obligated to the General Partner or its affiliates for the following fees:

~~NOTES~~(a) TOAn ~~FINANCIAL~~annual ~~STATEMENTS~~asset –management ~~CONTINUED~~ fee equal to the greater amount of (i) $2,000 for each Housing 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 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. Asset management fees of $18,574, $24,585 and $25,250 were incurred during the years ended March 31, 2015, 2014 and 2013, respectively, of which $6,132, $0 and $137,409, was paid during the years ended March 31, 2015, 2014 and 2013, respectively.

~~For~~(b) A subordinated disposition fee in an amount equal to 1% of the ~~Years~~sale ~~Ended~~price ~~March~~may be received in connection with the sale or disposition of a Housing Complex or Local Limited Partnership interest. Payment of this fee is subordinated to the Limited Partners receiving a preferred return of 16% through December 31, ~~2013,~~2003 ~~2012,~~ and ~~2011~~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 fee was incurred for all periods presented.

~~NOTE 2~~(c) –The ~~INVESTMENTS~~Partnership INreimbursed ~~LOCAL~~the ~~LIMITED~~General ~~PARTNERSHIPS~~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 paid were $77,475, ~~continued~~$51,872 and $103,296 during the years ended March 31, 2015, 2014 and 2013, respectively.

~~COMBINED CONDENSED~~The ~~STATEMENTS~~accrued OFfees ~~OPERATIONS~~and expenses due to the General Partner and affiliates consist of the following at:

	2012			2011			2010
	March 31,
Revenues	$	1,948,000		$	3,288,000		$	4,600,000
	2015			2014
Expenses:
Asset management fee payable	$	12,777		$	335
Operating expenses		316,000			445,000			3,213,000
Expenses paid by the General Partner or an affiliate on behalf of the Partnership		33,931			12,882
Interest expense		507,000			795,000			768,000
Total	$	46,708		$	13,217
Depreciation and amortization		1,218,000			2,154,000			1,086,000
Total expenses		2,041,000			3,394,000			5,067,000
Net loss	$	(93,000	)	$	(106,000	)	$	(467,000	)
Net loss allocable to the Partnership,	$	(92,000	)	$	(103,000	)	$	(460,000	)
Net income 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 continue to incur significant operating losses, additional capital contributions by the Partnership and/or the Local General Partner may be required to sustain the operations of such Local Limited Partnerships.40

~~Troubled Housing~~WNC ~~Complex~~HOUSING TAX CREDIT FUND IV, L.P., SERIES 1

~~During the year ended March 31, 2012 the General Partner of Yantis Housing, Ltd.~~ (~~Yantis)~~A ~~passed~~California ~~away.~~Limited ~~This compelled Shelter Resource Corporation, an affiliate of the~~ Partnership~~, to take on the responsibility of the General Partner. During this time, Yantis fell into disrepair and was required by the United States Department of Agriculture (USDA RA~~) ~~to address these issues. As of the date of this report, only a portion of the issues have been addressed. USDA RA suspended rental assistance for Yantis in April 2011.~~

~~As of~~NOTES ~~May~~TO ~~2011~~FINANCIAL Yantis started under new management. The team has been diligently working with the USDA RA on obtaining past and future rental assistance and was able to collect assistance starting in July 2011. The assistance payments prior to July 2011 are still in question.STATEMENTS

~~Prior to~~For the ~~changes~~Years inEnded ~~management,~~March ~~Yantis received physical inspections from the State Housing Agency. As of the date of this report~~31, ~~some~~ ~~of the issues noted in the inspection have not been addressed. As of December 31~~2015, ~~2012~~2014 ~~the~~and ~~replacement reserve balance was $6,412.~~2013

~~Due to~~NOTE ~~the~~4 ~~outstanding~~– ~~issues~~QUARTERLY ~~from~~RESULTS ~~the~~OF ~~inspection,~~OPERATIONS the State Housing Agency is requesting management of Yantis to attend an informal conference. The State Housing Agency is considering implementing administrative penalties for violations of the United Productions and Service Company (~~UPCS~~UNAUDITED) local safety and building codes. To date, Shelter Resource Corporation has funded approximately $38,910 for property updates. As of the date of this report, the property is assigned to the Structured Asset Group so the situation can be closely monitored.

~~As of~~The ~~the~~following ~~date of this report, local counsel~~ is ~~working~~a tosummary ~~reinstate the Local Limited Partnership. Once these actions have been properly implemented the Partnership will proceed with selling its portion~~ of ~~interest in~~ the ~~Local~~quarterly ~~Limited~~operations ~~Partnership.~~for ~~Presently, no sales date has been established. As of all periods presented,~~ the ~~investment~~years ~~balance~~ended ~~was~~March ~~zero~~31 ~~and the Compliance Period had ended.~~(rounded):

F-16

	June 30			September 30			December 31			March 31
2015

Income	$	11,000		$	-		$	-		$	-

Operating expenses		(7,000	)		(28,000	)		(8,000	)		(8,000	)

Income (loss) from operations		4,000			(28,000	)		(8,000	)		(8,000	)

Gain on sale of Local Limited Partnerships		-			23,000			-			14,000

Net income (loss)		4,000			(5,000	)		(8,000	)		6,000

Net income (loss) available to Limited Partners		4,000			(5,000	)		(8,000	)		6,000

Net income (loss) per Partnership Unit		1			(1	)		(1	)		1

WNC HOUSING TAX CREDIT FUND IV, L.P., SERIES 1

	June 30			September 30			December 31			March 31
2014
Income	$	10,000		$	-		$	-		$	-

Operating expenses		(20,000	)		(48,000	)		(9,000	)		(25,000	)

Loss from operations		(10,000	)		(48,000	)		(9,000	)		(25,000	)

Loss on sale of Local Limited Partnerships		-			-			(18,000	)		-

Net loss		(10,000	)		(48,000	)		(27,000	)		(25,000	)

Net loss available to Limited Partners		(10,000	)		(47,000	)		(27,000	)		(25,000	)

Net loss per Partnership Unit		(1	)		(5	)		(3	)		(2	)

~~(A California Limited Partnership)~~41

~~NOTES~~WNC TOHOUSING ~~FINANCIAL~~TAX ~~STATEMENTS~~CREDIT –FUND ~~CONTINUED~~ IV, L.P., SERIES 1

~~For~~(A ~~the~~California ~~Years~~Limited ~~Ended March 31, 2013, 2012, and 2011~~Partnership)

~~NOTE 3~~NOTES –TO ~~RELATED~~FINANCIAL ~~PARTY TRANSACTIONS~~STATEMENTS

~~Under~~ For the ~~terms~~Years ofEnded ~~the~~March ~~Partnership~~31, ~~Agreement~~2015, ~~the~~2014 ~~Partnership~~and ~~has paid or is obligated to the General Partner or its affiliates for the following fees:~~2013

~~Acquisition fees~~NOTE of4 up– toQUARTERLY 8%RESULTS ofOF ~~the~~OPERATIONS gross proceeds from the sale of Partnership Units as compensation for services rendered in connection with the acquisition of Local Limited Partnerships. At the end of all periods presented the Partnership incurred total acquisition fees of $800(UNAUDITED),~~000,~~ which have been included in investments in Local Limited Partnerships. As of all periods presented, the fees had been fully amortized or impaired. Impairment on the intangibles is measured by comparing the Partnership’s total investment balance after impairment of investments in Local Limited Partnerships to the sum of the total of remaining Low Income Housing Tax Credits allocated to the Partnership and any estimated residual value of the investments. If an impairment loss related to the acquisition expenses is recorded, the accumulated amortization is reduced to zero at that time. continued

Reimbursement of costs incurred by of the General Partner or by an affiliate of Associates in connection with the acquisition of Local Limited Partnerships. These reimbursements have not exceeded 1.2% of the gross proceeds. At the end of all periods presented, the Partnership incurred acquisition costs of $54,949, which have been included in investments in Local Limited Partnerships. Accumulated amortization was $54,949 for all periods presented.

	June 30			September 30			December 31			March 31
2013

Income	$	30,000		$	-		$	-		$	4,000

Operating expenses		(40,000	)		(35,000	)		(25,000	)		(14,000	)

Loss from operations		(10,000	)		(35,000	)		(25,000	)		(10,000	)

Gain on sale of Local Limited Partnerships		27,000			70,000			41,000			221,000

Net income		17,000			35,000			16,000			211,000

Net income available to Limited Partners		17,000			34,000			16,000

Filing Compare · WNC HOUSING TAX CREDIT FUND IV L P SERIES 1